Barclays 2017 CEO Energy Power Conference September 06, 2017
Range Overview Market Snapshot NYSE Symbol: RRC Market Cap (a): 4.4B Net Debt (b): 3.8B Enterprise Value: 8.2B Overview Net Surface Acreage (d) 2Q17 Production Per Day of 1.94 Bcfepd SW Marcellus (PA): 515,000 2017…
Range Strategy Growth of Reserves and Production on a Per Share Debt Adjusted Basis Southern Marcellus Stacked pay opportunities include the Marcellus, Utica and Upper Devonian. Expand Margins Through Cost Improvements, Capital…
Investment Summary High Quality Large, core acreage positions in the Marcellus and North Louisiana Acreage Position Low-risk projects with high rates of return at current prices Improving differentials across all commodities…
High Quality Acreage Position - Appalachia Assets 1.5 million net effective acres (a) in SW PA leads to decades of drilling inventory Gas In Place (GIP) analysis shows the greatest potential is in Southwest Pennsylvania Recent…
High Quality Acreage Position Southwest Appalachia PA Longer laterals and existing pads in 2017 provide low-risk efficiency gains OH Increased optionality due to quality of acreage position, gathering system, Over 200 WV…
Existing Marcellus Pads Improve Capital Efficiency Expansive inventory of over 200 pads in Appalachia Over 200 1/3 of 2017 Marcellus activity on existing Existing Pads pads 124 pads with 5 or fewer wells, 59 pads with 6-9 wells…
Range Has Highest EUR/Ft and Lowest F&D Costs in SW Appalachia 5.0 1.00 4.5 0.90 4.0 0.80 3.5 0.70 EUR/ft (Mcfe) F&D (/Mcfe) 3.0 0.60 2.5 0.50 2.0 0.40 1.5 0.30 1.0 0.20 0.5 0.10 0.0 0.00 EUR/ft F&D…
High Quality Acreage Position North Louisiana 220,000(a) net acres of stacked pay potential in North Louisiana Acreage favorably located near growing Gulf Coast demand center with ample infrastructure to grow development receiving…
High Quality Acreage Position North Louisiana Recent well results support that the Lower Cotton Valley (LCV) gets thicker and higher pressured as you move south from the Terryville field Recent results also support gas in place of…
Diversified Marketing Strategy Appalachian Production Has Ability to Reach Multiple Markets Currently selling natural gas in the Gulf Coast, Midwest, Southeast and Northeast markets Ability to export ethane and propane internationally…
Natural Gas Marketing Appalachian Takeaway Capacity First-mover advantage allowed Range to secure capacity on low-cost expansion projects out of Appalachia Total Appalachian Takeaway Capacity Gross Mmcf/d 2,000,000…
Innovative NGL Marketing Agreements Enhance Pricing Mariner East ethane sent to INEOS for export to Europe Mariner East propane can be sold internationally or into premium NE winter markets Mariner West ethane sent to Nova Chemical…
Cost Improvements Remain a Focus Driving Down Operating Costs Corporate margins improving as cash costs have declined substantially since 2011 0.40 54% Lower debt per mcfe of production 0.35 0.30 Decline LOE per Mcfe…
Differential Improvements Driving Margin Expansion Natural Gas Differential(a) NGL as a % of WTI Condensate Differential - 30% - (0.10) 28%- (5.00)- (3.00) (0.20) 30% (6.00) (0.30) 25% 26% (6.00) (0.30) (9.13) (0.45) (9.00) (0.40)…
Margin Expansion Drives Strong Unhedged Recycle Ratio Unhedged Cash Margin Expanding Margins have improved due to low unit costs 50% and better pricing differentials 45% 40% Unhedged recycle ratio of 2.5x allows for 35% natural…
Ranges Recycle Ratio Near Head of Class 5.00x EBITDA 2017E Recycle Ratio (Median F&D) 4.50x 4.00x 3.50x 3.00x 2.50x 2.00x 1.50x 1.00x 0.50x 0.00x HES DVN APA CXO APC ECR AR EPE WLL PXD…
Well-structured, Resilient Balance Sheet 4 billion credit facility unanimously reaffirmed from a 29 member bank group (3B borrowing base, 2B Capital Structure(a) committed) (millio ns) 1Q17 2Q17 Liquidity of 760 million at the end of…
Long-Term Value Creation High-quality, large-scale acreage position containing repeatable projects with high rates of return Low cost structure with ability to continue driving costs lower Margin improvements expected to drive…
Why Invest in Range Long Inventory of Core Locations in the Two Most Economic Gas Plays in the U.S. Range discovered the Marcellus in 2004 and leased SWPA core acreage Highest normalized EURs in SWPA reflect quality of acreage…
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