Skip to main content Credit Suisse 2012 Energy Summit – Range Resources Corp Investor Presentation | Shale Experts
Loading...
Pm

Credit Suisse 2012 Energy Summit – Range Resources Corp

Range Resources Corp · Feb 7, 2012 · 66 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 1
    Credit Suisse Energy Summit Vail, CO Ray Walker SVP & COO February 7, 2012
  2. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 2
    Range Resources Strategy Proven track record of performance following these principles Marcellus Shale 24 to 32 Tcfe resource potential Upper Devonian Shale 10 to 14 Tcfe resource potential Focus on PER SHARE Utica Shale GROWTH…
  3. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 3
    2011 Reserve Walk Forward 14% increase in total proved reserves Bcfe Balance at December 31, 2010 4,442 Discoveries and extensions 1,493 Purchases - Revisions - performance 225 Revisions - pricing 0 Sales (904) Production…
  4. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 4
    Total Proved Reserves 12/31/2010 12/31/2010 As Reported Pro forma after Barnett Sale 12/31/2011 12/31/2011 12/31/2010 12/31/2010 As Reported Pro forma after Barnett Sale 48% 52% 49% 51% 48% 52% 49% 51% 48% 52% 43% 4.4…
  5. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 5
    Higher Quality / Lower Cost Wells Driving Capital Efficiency Drillbit Reserve Replacement over 800%, While F&D under 1.00 900% 2.00 Drillbit Replacement 1.80 800% Drillbit Reserve Replacement, % 1.60 700% Drillbit…
  6. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 6
    Ranges Reserve Base and Upside are Growing Size = Resource Potential Placement = Proved Reserves Proved Reserves (Tcfe) 60.0 52.0 31.7 28.2 21.9 9.2 (Tcfe) YE 2006 YE 2007 YE 2008 YE 2009 YE 2010 YE 2011 Proved 1.8 2.2…
  7. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 7
    Resource Potential Updated Net Unproven Gas Resource Area Liquids (Mmbbls) Resource (Tcf) Potential (Tcfe) Marcellus Shale 21 29 434 559 24 32 Upper Devonian Shale 8 12 253 368 10 14 Midcontinent, Nora and Permian 68 779 1,042…
  8. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 8
    Ethane Has a Big Impact Net Unproven Gas Liquids with Resource Area Resource (Tcf) Ethane (Mmbbls) Potential (Tcfe) Marcellus Shale 20 27 940 1,159 25 34 Upper Devonian Shale 8 12 604 940 12 18 Midcontinent, Nora and Permian 68…
  9. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 9
    Added Enhancements to Portfolio Range will have five new enhancements to the existing portfolio in 2012 1. Super rich Marcellus 1,350 Btu or higher wet gas 2. Super rich Upper Devonian 3. Wet Utica Shale 4. Horizontal…
  10. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 10
    Range is Focused on Per Share Growth, on a Debt-Adjusted Basis Production/share debt adjusted Reserves/share debt adjusted 1.4 35 30 1.2 25 1.0 Mcfe Mcfe 20 0.8 15 0.6 10 0.4 5 2006 2007 2008 2009 2010 2011 2006 2007…
  11. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 11
    Nine Years of Double-Digit Production Growth 700 Currently 25% - 30% Growth in 2012 600 12% Growth in 2011 (Includes effect of Barnett Sale) 500 Mmcfe/d 400 300 200 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011…
  12. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 12
    Marcellus Shale Has Excellent Economics Credit Suisse 50% Marcellus Challenges Even Oil Plays for ROR Internal Rate of Return 40% 30% 20% 10% 0% Year: 1 2 3 4 5 6 7 8+ WTI Oil: 93.18 87.55 88.76 89.20 89.81…
  13. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 13
    SW PA Wet Marcellus Economics Southwestern PA (wet gas case) Economics will be updated on EUR 5.7 Bcfe 4Q 2011 conference call Drill and Complete Capital 4.0MM 190% F&D 0.82/mcfe 170% 2,800 lateral length & 9 stages 150% 130%…
  14. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 14
    Wet Gas Provides Excellent Economics Based on 12/2011 Gas Quality and Volumes 3.46 NYMEX Henry Hub Price (12/11) 98.56 NYMEX WTI Index Price (12/11) Higher Btus, more ethane and liquids are 1266 Processing Plant Inlet Btu (12/11)…
  15. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 15
    SW PA Wet Area Marcellus Type Curve 4,000 3,500 2009 & 2010 wells average 5.7 Bcfe Reserves Lateral Length Stages 3,000 4.0 Bcf & 281 Mbbl 2,802 ft. 9 Gross Well Head Gas Mcfd 2,500 2,000 1,500 1,000 500 0…
  16. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 16
    Marcellus SW is Liquids Rich Southwest resource potential of 19 25 Tcfe is comprised of 434 to 559(1) million barrels of liquids and 16.1 to 21.6 Tcf of gas Range has 550,000 net acres in the SW part of the play Over 1,000 wells…
  17. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 17
    Midcontinent Resource Potential OKLAHOMA Horizontal Mississippian St. Louis TEXAS Major Hansford Ochiltree Lipscomb Hutchison Roberts Blaine Hemphill Canadian Wheeler Carson Gray Caddo Cana Woodford Granite Wash…
  18. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 18
    Mississippian Economics Rival Marcellus Wet Area 80% 70% 60% 50% IRR (%) 40% 30% 20% 10% 0% 8/23/11 Strip 2012 2013 2014 2015 WTI Oil: 88.61 91.04 91.80 92.29 NYMEX Oil: 4.45 4.94 5.26 5.53 Source: ISI Group…
  19. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 19
    % of Mississippian Wells Classified as Oil Greater Oil Potential 88% 54% 57% 86% Kansas Oklahoma 37% 74% 83% 92% 95% Range Focus Area 94% 91% Oklahoma 96% Texas Acreage Increased to 125,000 Acres Source: Industry…
  20. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 20
    Horizontal Mississippian Economics EUR 400 Mboe and 500 Mboe Drill and Complete Capital 3.1MM 110% Includes 200M for SWD F&D 9.78/boe (400 Mboe) 7.89/boe (500 Mboe) 90% IRR (1) NYMEX 70% Oil Price 400 Mboe 500 Mboe 80.00…
  21. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 21
    Horizontal Mississippian - Performance 500 450 - 8 wells average EUR is 485 MBOE - 2,197' Laterals and 12 stages 400 - 70% of EUR comprised of liquids - EUR equates to 4-9% recovery of the 350 original oil in place 300 Gross…
  22. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 22
    Strong Financial Position Strong, Simple Balance Sheet Bank debt, subordinated notes and common stock No debt maturity until 2016 As of September 30, 2011 52 million in cash and zero balance on bank credit facility Well Structured…
  23. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 23
    Range in the Marcellus Pioneering Best Practices in Protecting the Environment Range pioneered Marcellus water recycling and reuse. Pioneered disclosure of fracturing chemicals on a well-by-well basis in July 2010. Range has…
  24. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 24
    Why Invest in Range Proven Track Record of Growth at Low Cost 9 consecutive years of production growth at low cost. 14% reserve and 12% production per share debt-adjusted growth in 2011. 2011 reserve and finding cost results…
  25. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 25
    Appendix 26
  26. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 26
    Shale Wells Drilled and Permitted Wet Gas LegendLegend RANGE ANADARKO CHEVRON/CHIEF SW CABOT CHESAPEAKE CHIEF CONSOL ECA EOG EQT EXCO REX SHELL TALISMAN ULTRA XTO/EXXON/PHILLIPS OTHERS LARGER DOTS DRILLED SMALLER…
  27. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 27
    Shale Wells Drilled and Permitted SW PA Beaver Indiana Allegheny Westmoreland Jefferson Washington LegendLegend RANGE ANADARKO CHEVRON/CHIEF SW CABOT CHESAPEAKE CHIEF CONSOL ECA EOG Fayette EQT EXCO Marshall Green…
  28. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 28
    Shale Wells Drilled and Permitted NE PA Steuben Tioga Broom Chemung Range/Talisman - Area of Mutual Interest Tioga Bradford Susquehanna LegendLegend RANGE ANADARKO CHEVRON/CHIEF SW Potter CABOT CHESAPEAKE Lycoming…
  29. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 29
    SW PA Wet Area Type Curve 10,000 1,000 5.7 Bcfe type curve consists of 4 Bcf gas and 281 Mbbls of oil and natural gas liquids Gross Bbls/d Gross Mcf/d 1,000 100 Cumulative Production 1 yr 0.8 Bcfe 2 yrs 1.3 Bcfe 3…
  30. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 30
    Marcellus NGL Pricing Currently all ethane sold with the natural gas as additional Btus Realized Marcellus NGL Prices (2) Marcellus NGL as % WTI Oil Price NGL Price of WTI Wt. Avg. Composite Barrel (1) 1Q 2009 43.20 24.20 56% 2Q…
  31. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 31
    Utica Shale The Utica Shale generally becomes shallower and less mature moving from east to west Currently expect the Utica to have three windows of maturity Oil Wet Gas Dry Gas Although Range plans on drilling 2 - 4 wells…
  32. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 32
    Upper Devonian and Utica Shale UPPER DEVONIAN Formation Current Status First 2 wells average IP of 3.8 Mmcfe/d. Best well 4.7 Bcfe Upper Devonian Shales Wet where Marcellus is wet Rhinestreet / Middlesex Drill a thick, wet…
  33. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 33
    Ethane Now an Opportunity Rather Than a Challenge Ranges liquid resource potential in SW PA is over 500 million barrels. This does not include ethane volumes, as they are currently blended into the gas stream. Once 100% of ethane…
  34. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 34
    Proposed Gross Capacity Additions Cryogenic Processing Installed by MarkWest Liberty Capacity Committed to Range Houston, PA Majorsville, WV & Other Third Party Total (Mmcf/day) Volume Volume Volumes Volume April 2009 35 35…
  35. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 35
    Liberty Marcellus Project Schedule MarkWest Liberty is developing integrated and scalable gathering, processing, fractionation, and marketing infrastructure to support production in excess of 1 Bcf/d Houston Processing Complex…
  36. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 36
    MarkWest Liberty Propane Supply and Distribution Bbls/d Winter Propane Market vs MarkWest Production MarkWest Liberty has invested 120,000 Long Haul significant capital to develop a 100,000 Markets world-class NGL fractionation,…
  37. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 37
    MarkWest Liberty Isobutane and Natural Gasoline Supply and Distribution Bbls/d Isobutane Refinery Market vs MarkWest Liberty continues to develop pipeline, 90,000 MarkWest Production rail, and truck markets to further optimize NGL…
  38. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 38
    Liquid Rich Area Infrastructure The key ingredient for success in the liquid rich area is not building processing plants but how to market the liquids. 60,000 Bbl/day C3+ fractionator currently operating at Houston, PA. Allows…
  39. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 39
    Project Mariner Overview Export Capabilities Sarnia Will Open Up Foreign Markets Mariner West Mariner East Pittsburgh Existing Sunoco Pipeline Philadelphia New MarkWest Liberty Pipeline Houston Fractionator…
  40. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 40
    The Mariner Project West & East Mariner West Sarnia, Ontario New Connection to Mariner West to Sarnia Targeted service by 2H2013 40 mile 8 pipe to existing Sunoco Logistics Sunoco pipeline Existing Pipeline Sunoco Philadelphia…
  41. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 41
    Mariner East Update Mariner East includes two ships to allow for weather contingencies, optimization of offloading schedules and volume increases The ships can be easily modified to transport ethane, consume ethane as fuel and…
  42. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 42
    Lycoming County Developments First 33 wells on production Available capacity Phase I 50 Mmcf/day - 1Q2011 Phase II 150 Mmcf/day - 4Q2011 Phase III 150 Mmcf/day - TBD 350 Mmcf/day Phase IV Could be added based on Phase III…
  43. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 43
    ATEX Express Pipeline: Transport Ethane from Marcellus / Utica Shale Range has up to 20,000 Bbls/day contracted at 0.145 per gallon at anchor shipper rates Published commencement 1Q 2014 1,230 mile pipeline with capacity to…
  44. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 44
    Marcellus Area Pipelines Great Take-Away Capacity; Premium Pricing Firm Transport & Sales with Firm Transport SW TCO 205 Mmcf/day TETCO 120 Mmcf/day 75 Mmcf/day by November 2012 75 Mmcf/day by November 2013 NFS 30 Mmcf/day DTI 33…
  45. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 45
    Marcellus Net Backs After Transportation Millennium NYMEX Flat Tennessee 300 NYMEX Less 0.05 to 1.00 TCO Columbia NYMEX Less 0.20 Transco NYMEX Flat TRANSMISSION PIPELINES COLUMBIA DOMINION MILLENIUM NATIONAL…
  46. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 46
    Marcellus PA Production Growth Marcellus production now over 5 Bcf per day of dry gas 5.0 4.5 4.0 TN 300 showing the most regional 3.5 growth while the other pipelines show displacement of gas from other regions. 3.0 Bcf/d…
  47. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 47
    Other Midcontinent Activity Panhandle St. Louis 120 potential locations (average 67% WI) 7 Horizontal St. Louis tests in 2012 Unrisked resource potential of 600-900 OKLAHOMA Bcf & 53-79 Mmbo net St. Louis Horizontal…
  48. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 48
    Range Virginia Assets RANGE RESOURCES VIRGINIA ACREAGE POSITION Range Acreage Natural Gas Producing Area Nora Area 353,000 gross, 231,000 net acres Interest in over 3,000 producing wells KY VA WVA 6,000+ additional wells…
  49. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 49
    Nora Multiple Stacked Pay Old becomes New with advances in technology 1950 Lower Huron 1970 Berea (Tight Gas Sands) 1990 CBM 2010 Lower Huron (Horizontal) 50
  50. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 50
    Southern Appalachia Division Production Growth 90,000 East Tennessee curtailment 80,000 CHK Acquisition 70,000 60,000 EQT Acquisition 50,000 mcf/d Weather issues 40,000 Range Acquires Pine Mountain 30,000 20,000…
  51. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 51
    Midland Basin Cline Shale FISHER HORSESHOE ATOLL RANGE MIDLAND BASIN 100,000 net acres 91,000 HBP acres MITCHELL HOWARD MARTIN NOLAN CHK HOWARD COUNTY GL ASSCOCK COUNT Y STERLIN G COUN TY GLASSCOCK…
  52. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 52
    Unit Costs Are a Key Focus 5.00 4.00 3.00 /mcfe 2.00 1.00 0.00 2006 2007 2008 2009 2010 2011E Reserve Rep(1) 1.45 1.59 1.64 1.25 0.83 0.68 LOE (2) 0.90 0.92 0.99 0.82 0.72 0.65 Prod. taxes 0.37 0.36 0.39 0.20 0.19 0.16…
  53. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 53
    Margins are A Key Focus 7.00 6.00 5.00 4.00 /mcfe 3.00 2.00 1.00 0.00 2006 2007 2008 2009 2010 2011E Realized Prices 6.79 8.03 8.58 6.86 5.33 5.40 Cash Costs 2.19 2.39 2.58 2.27 2.19 2.08 Cash Margin 4.60 5.64 6.00…
  54. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 54
    Strong, Simple Balance Sheet Year-End Year-End Year-End Year-End 1st Qtr 2nd Qtr 3rd Qtr 2007 2008 2009 2010 2011 2011 2011 ( in millions) Bank borrowings 304 693 324 274 480 - - Sr. Sub. Notes 847 1,098 1,384 1,686 1,687 1,787…
  55. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 55
    Debt Maturities Range maintains an even, manageable debt maturity profile 600 500 500 500 400 ( Millions ) Revolver Undrawn (As of 9/30/2011) 300 300 250 250 200 100 - - - - - - 0 Senior Secured Revolving…
  56. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 56
    Ranges Outstanding Bonds Corporate Rating: BB / Ba2 Outlook: Stable Senior Subordinated Notes Amount Rating Current YTW 7.5% due 2017 250 BB / Ba3 4.97 % 7.25% due 2018 250 BB / Ba3 4.87 % 8.0% due 2019 300 BB / Ba3 4.77 % 6.75%…
  57. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 57
    Range Financing History Cumulative Sources and Uses 10.0 9.5 USES SOURCES 9.0 Acquisitions Debt 8.5 8.0 7.5 Capital Equity 7.0 Divestitures 6.5 Cash flows 6.0 ( Billions) 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0…
  58. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 58
    Gas Hedging Status Hedges Insulate Cash Flow Volumes Average Average Premium Hedged Floor Price Cap Price Paid (Mmbtu/day) ( / Mmbtu) 1Q 2012 Swaps 160,000 4.10 (0.02) 1Q 2012 Collars 189,641 5.32 5.91 (0.28) 2Q 2012 Swaps…
  59. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 59
    Oil Hedging Status Hedges Insulate Cash Flow Volumes Average Average Premium Hedged Floor Price Cap Price Received 1Q 2012 Calls 4,700 85.00 13.71 1Q 2012 Collars 2,000 70.00 80.00 7.50 2Q 2012 Calls 2,200 85.00 13.71 2Q 2012…
  60. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 60
    Natural Gas Liquids Hedging Status Hedges Insulate Cash Flow Volumes Hedged Hedged Price (1) (Bbls/day) ( / Bbl) 1Q 2012 Swaps 12,000 96.28 2Q 2012 Swaps 12,000 96.28 3Q 2012 Swaps 12,000 96.28 4Q 2012 Swaps 12,000 96.28 2012…
  61. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 61
    Growth at Low Cost Top quartile growth at top quartile cost 3 Year 5 Year 2007 2008 2009(4) 2010 2011 Average Average Reserve growth 27% 19% 18% 42% 14% 25% 24% Drillbit replacement (1) 400% 386% 540% 840% 850% 743% 603% All…
  62. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 62
    2011 Capital Budget (1) 2011 budget funded by cash flow and asset sales Budget = 1.47 Billion Budget by Area Drilling Pipelines, Facilities & Other Marcellus Midcontinent Acreage & Seismic Southwest Appalachia/Nora 75% 86%…
  63. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 63
    Range is a Founding Member of ANGA ANGAs Mission Americas Natural Gas Alliance (ANGA) exists to pursue a single mission: to increase appreciation for the environmental, economic and national security benefits of clean, abundant,…
  64. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 64
    Range is a Founding Member of the MSC Founded in 2008, the Marcellus Shale Coalition (MSC) is committed to the responsible development of the Marcellus Shale and the enhancement of the regions economy that can be realized by this…
  65. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 65
    Green Completion Objectives Continue treatment design advancement with service provider partnerships with focus on salt water use (recycling) Develop fluid systems in line with 12 principles of Green Chemistry We continue to share…
  66. Credit Suisse 2012 Energy Summit – Range Resources Corp – slide 66
    Contact Information Range Resources Corporation 100 Throckmorton, Suite 1200 Fort Worth, Texas 76102 Main: 817.870.2601 Fax: 817.870.2316 Rodney Waller, Senior Vice President rwallerrangeresources.com David Amend, Investor…

From the store

Browse maps, data & reports in the Shale Experts store