Skip to main content Barclays Capital CEO Energy Power Conference – Range Resources Corp Investor Presentation | Shale Experts
Loading...
Pm

Barclays Capital CEO Energy Power Conference – Range Resources Corp

Range Resources Corp · Sep 8, 2015 · 64 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. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 1
    Barclays CEO Energy-Power Conference Ray Walker EVP - Chief Operating Office September 8, 12015
  2. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 2
    Investor Concerns in Energy Sector Today A challenging 2Q earnings season for the sector with lower commodity prices but continued production growth raised key questions: When will supply and demand balance How will capital…
  3. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 3
    Ranges Disciplined Approach Lowered cost structure 43% since 2008 to be able to preserve value through a down cycle Anticipate continued cost reductions Hedged production to lock in value and reduce downside risk Have 630,000 Mmbtu…
  4. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 4
    How has Range Set Up Activity for 2016 Optionality of drilling wet, super-rich or dry locations at superior rates of return Near-term infrastructure projects enhance netbacks Uniontown to Gas City project started early August…
  5. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 5
    Current Outlook for 2016 Capital Budget 20% Growth % Y-O-Y Production Growth 20% 15% 10% Growth 10% 5% 0% 550 Million 890 Million 2016 range of estimates 270 million capital budget is estimated to maintain the…
  6. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 6
    2016 Leverage and Liquidity Outlook No debt covenant issues EBITDAX to interest minimum of 2.5x (latest 6.8x) PV9 proved reserves value to debt minimum of 1.5x (latest 2.4x) Range has 2 billion liquidity under the 3 billion…
  7. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 7
    Sustained Growth with Improving Capital Efficiency Growth achieved despite reducing capital, demonstrating improved efficiency 1,500 30 Capex per Incremental mcfe Production 1,250 25 Production (Mmcfepd) 1,000 20 750…
  8. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 8
    Drilling Efficiencies/Competitive Advantages Average lateral lengths expected to increase to SWPA Average Lateral Length 6,900 ft. in 2016 7,000 6,900 Lateral lengths expected 6,000 to continue to increase in 6,000 the future…
  9. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 9
    Cost & Efficiency Improvements SW Pennsylvania Average Lateral Length Well Cost/Lateral Length 2,500 6,500 2,200 5,500 1,900 4,500 1,600 3,500 1,300 2,500 1,000 700 1,500 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015…
  10. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 10
    Cost & Efficiency Improvements NE Pennsylvania Average Lateral Length Well Cost / Lateral Length 6,000 2,400 2,100 5,000 1,800 4,000 1,500 3,000 1,200 2,000 900 1,000 600 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015…
  11. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 11
    Range Marcellus 2015 Well Economic Summary SW Super-Rich SW Wet SW Dry NE Dry 12.9 Bcfe 17.6 Bcfe EUR 17.1 Bcf 15.2 Bcf 1,169 Mbbls & 5.9 Bcf 1,501 Mbbls & 8.6 Bcf EUR/1,000 ft. lateral 2.40 Bcfe 2.95 Bcfe 2.52 Bcf 2.67 Bcf…
  12. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 12
    Range: Low-Cost, Large Scale Company Total Reserves Breakeven Positions (tcfe) (US/mcf) Range 30.00 2.62 Range has both highest net risked Rex 3.19 2.66 resource and lowest breakeven price in Cabot 18.18 2.71 EQT 15.84 2.74 the…
  13. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 13
    SW/NE Pennsylvania Stacked Pays Total (1) Wet Dry Net Acreage Acreage Acreage Upper Devonian 330,000 195,000 525,000 Marcellus 330,000 310,000 640,000 Utica/Point Pleasant - 400,000 400,000 660,000 905,000 1,565,000…
  14. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 14
    Gas In Place (GIP) Analysis Shows Greatest Potential in SW PA When GIP analysis from the Marcellus, Upper Devonian and Point Pleasant are combined, the largest stacked pay resource is located in SW PA where Range has concentrated…
  15. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 15
    Utica/Point Pleasant Update OH PA 1st well produced 2.01 Bcf in 158 days as of July 31 on an interruptible basis 1st well expected to be a top 10 Utica well based on wells with 158 days of production New dry gas gathering…
  16. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 16
    Two Near-Term Pricing Enhancements Spectra Uniontown to Gas City Pipeline Moves 200 Mmcf/day of Range gas production as anchor shipper from local Appalachia M2 to Midwest markets Under current strip prices this project is expected to…
  17. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 17
    Ranges Natural Gas Liquids Provide Revenue Uplift 4.00 /Wellhead Gas Range is one of the largest 3.70 - 3.80 NGL producers in 3.50 Appalachia, (56,000 bpd in 2Q15) with the highest Btu 3.00 inlet gas 1.70 - 1.80 Higher Btu gas…
  18. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 18
    Significant U.S. Natural Gas Demand Growth Projected Additional 20 Bcfd of demand by 2020, plus an additional 15 Bcfd by 2025 * Source: EIA, Bernstein estimates * Exports include LNG and exports to Mexico 19
  19. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 19
    Appalachian Rig Counts Declining Utica / Point Pleasant Rig Count 60 50 Utica/Point Pleasant 40 rig count down 70% 30 from the peak in 20 2014 10 0 Marcellus Rig Count 140 120 Marcellus rig 100 count down 64% 80 from…
  20. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 20
    Year-to-Date Natural Gas Production Flattening Lower 48 gas leveling out Marcellus production flat Estimated Total L48 Gas Pipeline Flows Marcellus Pipeline Flows 74 18 72 16 70 14 12 68 10 66 Bcf/d 8 BCF/d 64…
  21. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 21
    Range Resources Quality, Efficiency, Strength at Low Cost 1. Largest acreage position in core of Marcellus, Upper Devonian and Utica 2. Marcellus development has driven down unit costs over 40%; capital costs down 57% or more on a…
  22. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 22
    Appendix Portfolio Detail 23
  23. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 23
    Range is Focused on Per Share Growth, on a Debt-Adjusted Basis Production/share debt adjusted Reserves/share debt adjusted 3.00 70.00 2.50 60.00 Mcfe/share 50.00 Mcfe/share 2.00 40.00 1.50 30.00 1.00 20.00 0.50…
  24. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 24
    Driving Down Unit Costs 4.50 4.00 3.50 3.00 /mcfe 2.50 2.00 1.50 1.00 0.50 0.00 - 2008 2009 2010 2011 2012 2013 2014 2015E Reserve 1.64 1.25 0.83 0.68 0.68 0.66 0.59 0.56 Replacement(1) LOE (2) 0.99 0.82 0.72 0.60 0.41…
  25. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 25
    Total Appalachian Production Growth is Slowing Appalachian Pipeline Flow Date by Region (Mcf/d) 10,000,000 Shut Ins 9,000,000 8,000,000 7,000,000 NE PA 6,000,000 Central PA SW PA 5,000,000 WV 4,000,000 Utica…
  26. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 26
    SW PA Super-Rich Area Marcellus Projected 2015 Well Economics Southwestern PA (High Btu case) NYMEX 12.9 EUR / 1,000 ft. 2.40 Bcfe Gas Price Bcfe EUR 12.9 Bcfe Strip - 26% (182 Mbbls condensate, 987 Mbbls NGLs, and 5.9 Bcf gas) 3.00…
  27. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 27
    Southwest PA - Super-Rich Area 2015 Turn in Line Forecast 3,000 Improvements Between Years EUR Well Costs Lateral (Bcfe) ( MM) Lengths (ft.) 2,500 2014 Type Curve - Drilling 12.3 6.8 5,300 Normalized Mcfe/Day per 1,000 ft. 2015…
  28. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 28
    Southwest PA Super-Rich Marcellus Horizontal Length (TIL) Average Number of Stages 6,000 30 5,500 5,000 25 Stages 4,500 Feet 20 4,000 3,500 15 3,000 2,500 10 2,000 2013 2014 2015 5 Actual Actual Forecast 2013 2014…
  29. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 29
    SW PA Wet Area Marcellus Projected 2015 Well Economics Southwestern PA (Wet Gas case) NYMEX 17.6 EUR / 1,000 ft. 2.95 Bcfe Gas Price Bcfe EUR 17.6 Bcfe Strip - 28% (48 Mbbls condensate, 1,453 Mbbls NGLs, and 8.6 Bcf gas) 3.00 - 26%…
  30. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 30
    Southwest PA - Wet Area 2015 Turn in Line Forecast 3,500 Improvements Between Years EUR Well Costs Lateral (Bcfe) ( MM) Lengths (ft.) 3,000 2014 Type Curve - Drilling 12.3 6.1 4,200 Normalized Mcfe/Day per 1,000 ft. 2,500…
  31. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 31
    Southwest PA Wet Marcellus Horizontal Length (TIL) Average Number of Stages 6,500 35 6,000 5,500 30 5,000 25 Stages Feet 4,500 4,000 20 3,500 15 3,000 2,500 10 2,000 2013 2014 2015 5 Actual Actual Forecast 2013…
  32. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 32
    SW PA Dry Area Marcellus Projected 2015 Well Economics Southwestern PA (Dry Gas case) NYMEX 17.1 EUR / 1,000 ft. 2.52 Bcf Gas Price Bcf EUR 17.1 Bcf Strip - 60% Drill and Complete Capital 6.0 MM, 3.00 - 46% (883 K per 1,000…
  33. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 33
    Southwest PA Dry Area 2015 Turn in Line Forecast 6,000 Improvements Between Years EUR Well Costs Lateral (Bcf) ( MM) Lengths (ft.) 5,000 2014 Type Curve - Drilling 13.4 6.6 5,200 Normalized Mcf/Day per 1,000 ft. 2015 Type…
  34. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 34
    Southwest PA Dry Marcellus Horizontal Length (TIL) Average Number of Stages 8,000 40 7,000 35 6,000 30 Stages Feet 25 5,000 20 4,000 15 3,000 10 2,000 5 2013 2014 2015 2013 2014 2015 Actual Actual Forecast EUR…
  35. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 35
    NE PA Dry Area Marcellus Projected 2015 Well Economics Northeastern PA (Dry Gas case) EUR / 1,000 ft. 2.67 Bcf NYMEX 15.2 EUR 15.2 Bcf Gas Price Bcf Drill and Complete Capital 4.9 MM, Strip - 64% (865 K per 1,000 ft.) 3.00 - 42%…
  36. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 36
    Northeast PA Dry Area 2015 Turn in Line Forecast 4,500 Improvements Between Years EUR Well Costs Lateral 4,000 (Bcf) ( MM) Lengths (ft.) 2014 Type Curve - Drilling 13.1 4.7 4,800 3,500 Normalized Mcf/Day per 1,000 ft. 2015…
  37. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 37
    Northeast PA Dry Marcellus Horizontal Length (TIL) Average Number of Stages 6,000 30 5,500 5,000 25 4,500 Feet Stages 4,000 20 3,500 15 3,000 2,500 10 2,000 2013 2014 2015 5 Actual Actual Forecast 2013 2014 2015…
  38. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 38
    Results of Marcellus Tighter Spacing Pilot Projects Projects Conducted in the Wet and Super Rich Areas of the Marcellus 3,000 Normalized for lateral length 500 foot spaced wells produced 80% of 1,000 foot spaced wells 2,500 over a…
  39. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 39
    Targeting/Down Spacing Test Results Encouraging AVERAGE NORMALIZED TIME ZERO DECLINE CURVES 3,500 Optimized targeting 3,000 700 ft. shows a 53% increase in spacing cumulative production after 300 days Average Mcfe/Day per 1,000…
  40. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 40
    Marcellus NGL Pricing Weighted Avg. Realized Marcellus NGL Prices Composite Barrel (1) 2014 2015 1Q 2Q 3Q 4Q 1Q 2Q 10% NYMEX WTI 98.61 102.97 96.99 73.11 48.62 57.88 (per bbl) 10% Mont Belvieu 4% Weighted Priced 37.22 33.43…
  41. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 41
    Range NGLs Add Cash Flow Range has the highest Btu gas and a large liquids resource base Range has size and scale Range has a competitive advantage in pricing as most large projects require/benefit from Ranges participation Ranges…
  42. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 42
    Takeaway Largely Overbuilt by 2016-2017 50 LNG exports starting in late 2015 40 Appears to have sufficient takeaway capacity by 2016 30 Bcf/d 20 10 0 Appalcahia Consumption Regional Storage Injections Announced…
  43. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 43
    Announced Appalachian Basin Takeaway Projects 1 of 2 Capacity Approved or Northeast PA Operator Main Line Market Start-up Bcf/d Fully Committed with FERC 2014 Northeast Connector Williams Transco NE Q4'14 0.1 Y Y Iroquois Access…
  44. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 44
    Announced Appalachian Basin Takeaway Projects 2 of 2 Capacity Approved or Southwest Operator Main Line Market Start-up Bcf/d Fully Committed with FERC 2016 Gulf Expansion Ph1 Spectra TETCO Gulf Coast Q4'16 0.3 Y Y Clarington West…
  45. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 45
    Appalachia Gas Transportation Arrangements Projected YE 2015 Projected YE 2016 Projected YE 2018 Transport Transport Transport Mmbtu/day Mmbtu/day Mmbtu/day Regional Direction Cost per Cost per Cost per (Gross) (Gross) (Gross)…
  46. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 46
    What Does the Futures Strip Price Indicate for Regional Basis Dawn 2015 +0.25 2020 -0.11 Algonquin 2015 +2.34 MichCon Transco Z6 2020 +1.27 Chicago CG 2015 +0.15 (NNY) 2015 +0.13 2020 -0.19 2015 +0.46 2020 -0.15 2020 +0.33…
  47. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 47
    LNG Exports Developing Projects To-Date LNG Exports by Facility - Bcf/d 14 12 Based on operator 10 announced dates 8 6 4 2 0 Sabine Pass Elba Island Cove Point Freeport Cameron Corpus Christi Lake Charles Golden…
  48. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 48
    Gas In Place (GIP) Marcellus Shale GIP is a function of pressure, temperature, thermal maturity, porosity, hydrocarbon saturation and net thickness Two core areas have been developed in the Marcellus Condensate and NGLs are…
  49. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 49
    Gas In Place (GIP) Point Pleasant Outlined portion represents the area of the highest pressure gradients in the Point Pleasant Note: Townships where Range holds 3,000 or more acres (as of 12/31/2014), and estimated as…
  50. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 50
    Gas In Place (GIP) Upper Devonian Shale The greatest GIP in the Upper Devonian is found in SW PA A significant portion of the GIP in the Upper Devonian is located in the wet gas window Note: Townships where Range holds 3,000…
  51. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 51
    Southern Appalachia Strategic Marketing Advantages 465,000 net acres - Range owns minerals on Nora is strategically positioned to most of the acreage provide gas to southeast markets Contracts in place for 100 Mmcf/d at 0.20/Mmbtu…
  52. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 52
    2014 Nora Enhanced Results From New Completion Design 180 2014 CBM 160 140 Pumping sand at higher 120 pressures during completion operations has significantly MCFD 100 2014 wells with new completion design increased…
  53. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 53
    Midcontinent Division 360,000 net acres Development activity has been in the Mississippian Chat along the Nemaha Ridge Horizontal Granite Wash, Cleveland and Woodford potential on existing HBP acreage 2015 Planned Activity…
  54. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 54
    Appendix Financial and Reserve Detail 55
  55. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 55
    Disciplined Financial Approach Strong, Simple Balance Sheet Bank debt, long-term bonds and common stock No near-term maturities, first bond maturity in 2021. Bank credit facility matures in 2019 Recent 4.875% senior notes offering met…
  56. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 56
    A History of Strong Credit Metrics EBITDAX / Interest 8.0x Range has a long history of 7.0x disciplined financial 6.0x management 5.0x 4.0x Strong EBITDAX coverage of 3.0x interest expense evidences 2.0x the low-cost structure…
  57. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 57
    Long Life Reserves Enhances Credit Profile Proved Developed Reserves / Production With a best-in-class reserve life 18.0x index, Ranges low production 16.0x Range well above the average decline provides more stable 14.0x 12.0x…
  58. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 58
    Successful Senior Notes Offering Range sold 750 million of senior notes due 2025 with a 4.875% coupon Ratings Agencies Moodys assigned a Ba1 rating to the new senior unsecured bonds, affirmed its Ba2 rating on the subordinated…
  59. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 59
    Debt Maturities Range maintains an orderly debt maturity ladder 900 800 750 750 700 600 600 500 500 ( Millions ) 400 364 300 200 100 0 Interest Rate 1.8% 5.75% 5.0% 5.0% 4.875% Senior Secured Revolving…
  60. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 60
    Strong, Simple Balance Sheet Updated YE 2010 YE 2011 YE 2012 YE 2013 YE 2014 Q1 2015 Q2 2015 Q2 2015(3) ( in millions) Bank borrowings 274 187 739 500 723 912 364 881 Sr. Notes 750 750 Sr. Sub. Notes 1,686 1,788 2,139 2,641 2,350…
  61. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 61
    Gas and Oil Hedging Status Volumes Hedged Average Floor Price Average Cap Price Period ( / Mmbtu) (Mmbtu/day) ( / Mmbtu) 3Q 2015 Swaps 747,500 3.63 Gas Hedging 4Q 2015 Swaps 727,500 3.63 3Q 2015 Collars 145,000 4.07 4.56 4Q…
  62. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 62
    Natural Gas Liquids Hedging Status Volumes Hedged Hedged (1) Period (bbls/day) Price (/gal) 3Q 2015 Swaps 14,000 0.61 Propane (C3) 4Q 2015 Swaps 12,000 0.55 2016 Swaps 5,500 0.60 3Q 2015 Swaps 3,500 0.72 Normal Butane 4Q…
  63. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 63
    Capital Efficiencies Driving Growth Budget = 870 Million Budget by Area 4% 5% 13% 95% 93% 83% Drilling Acreage & Seismic Pipelines, Facilities & Others Marcellus Nora/Midcontinent Capital Efficiencies Driving Growth with…
  64. Barclays Capital CEO Energy Power Conference – Range Resources Corp – slide 64
    Track Record of Building Reserves at Low Costs YE 2009 YE 2010 YE 2011 YE 2012 YE 2013 YE 2014 Track Proved Record of 3.1Building 4.4 Reserves 5.1 at6.5 Low Costs 8.2 10.3 Reserves (Tcfe) Drill Bit Finding 0.69 0.59 0.76…

From the store

Browse maps, data & reports in the Shale Experts store