FILED BY RANGE RESOURCES CORPORATION PURSUANT TO RULE 425 UNDER THE SECURITIES ACT OF 1933 AND DEEMED FILED PURSUANT TO RULE 14a-12 UNDER THE SECURITIES EXCHANGE ACT OF 1934 SUBJECT COMPANY: MEMORIAL RESOURCE DEVELOPMENT CORP.…
Ranges Keys for Success Low-cost Strong Low-cost takeaway hedge and structure Continual capacity liquidity with ability capital improves profile with to continue efficiency realizations no near-term to drive improvement and…
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…
SW/NE Pennsylvania Stacked Pays Total Wet Dry Net Acreage Acreage Acreage (1) Upper Devonian 335,000 180,000 515,000 Marcellus 335,000 280,000 615,000 Utica/Point Pleasant - 400,000 400,000 670,000 860,000 1,530,000…
Existing Pads Enhance Future Development for Range Expansive inventory of over 200 pads 124 pads: 5 or fewer wells 59 pads: 6-9 wells New pads in progress Pads accommodate 20 wells Flexibility to drill Marcellus, Utica / Point…
Sustained Growth + Improving Capital Efficiency 1,500 30 Capex per Incremental mcfe Production 1,250 25 Production (Mmcfepd) 1,000 20 750 15 500 10 250 5 0 - 2011 2012 2013 2014 2015 2016E* Production…
Near-Term Price Enhancements RRC Marcellus NG Differential to NYMEX Natural Gas Differential - 0.00 (0.10) Ability to utilize full year of Spectras Uniontown (0.42) (0.20) to Gas City project, including 200 Mmcf/day of Midpoint…
Appalachia Gas Transportation Arrangements Regional Direction Projected Avg. 2016 Projected Avg. 2017 Transport Cost Transport Cost Mmbtu/day Mmbtu/day per Mmbtu per Mmbtu Firm Transportation Appalachia/Local 390,000 0.20 325,000…
Strong Unhedged Recycle Ratio Recycle Ratio: (Margin divided by F&D) Pre-Hedge Price (Assuming 2017 NYMEX 3.10/50) 2.70 All-In Cash Unit Costs (2016 Expected) 1.84 Adjusted Margin 0.86 Expected Future Development Cost for PUD…
Liquidity and Financial Capacity (pre-merger) Lowest debt since 2012 3,000 Borrowing Base - 3 Billion 4B credit facility 2,500 unanimously reaffirmed by bank group 2,000 Bank Commitment - 2 Billion ( Millions ) 3B…
Proposed Merger with Memorial Resource Development Announcement Date: May 16, 2016 Special Meeting Date: September 15, 2016 Expected Closing Date: Late-Q3 2016 14
Highlights of Merger Core acreage positions in the two highest return, lowest cost natural gas plays Immediately cash flow accretive and credit enhancing Complementary assets positioned near expanding natural gas and NGL demand…
Combining Two High Quality Assets Terryville Acreage in Marcellus Acreage Northern Louisiana in Pennsylvania Low risk and high repeatability Low risk and high repeatability Near-term focus primarily on Near-term focus on Marcellus…
Immediately Accretive & Credit Enhancing Pro Forma Annual Consensus Metrics* Existing RRC % Change RRC 2016E Production 520 Bcfe 670 Bcfe +29% 2016E Production per day 1,420 Mmcfe 1,830 Mmcfe +29% 2016E Cash Flow 375 Million…
Marketing and Operational Efficiencies Marketing MRDs position gives Range a presence in the Gulf Coast in advance of additional Marcellus transportation availability out of Appalachia MRDs production receives near NYMEX pricing…
220,000 Acres of Lower Cotton Valley Potential The position is anchored to the north by Terryville Field, to the south by Vernon Field, to the east by Choudrant Field and to the west by Driscoll Field Multiple vertical Lower Cotton…
2017 Growth Trajectory 2,500 2 Bcfepd 2,000 RRC Post Merger Mmcfepd 1,500 RRC (b) 1,000 500 0 2016E 2017E Current estimates and strip pricing indicate that Range (post-merger) can grow 10+% organically in…
Why Invest in Range Ability to allocate capital between the two highest return, lowest cost natural gas plays Unhedged recycle ratio of 2x near strip prices allows for efficient development of asset base 2017 growth of 30+%…
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