Barclays 2017 CEO Energy Power Conference September 5, 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…
Range Resources Timeline Build and High Grade the Inventory 2012 - 2016 2008 - 2012 Sold Permian properties in 2004 - 2008 southeast New Mexico and Sold West Texas Texas for 275 million 2000 - 2004 properties for 182 million…
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 Note: Outline of acreage is greater Pittsburgh area…
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…
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)…
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 from growth 0.35 at or near cash flow 0.30…
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…
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…
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…
Appendix
2017 Capital Budget 2017 Capital Budget of 1.15B 2017 Capital Budget by Area Seismic, 2% Pipelines, Facilities Other, 1% and Other, 2% Leasehold, 4% North Louisiana, 34% Marcellus, 65% D&C, 93% Marcellus activity…
Early, Continuous Action Taken to Prepare for Low Prices Called high cost 8% notes, reducing annual interest expense by 24 million or 0.06mcfe June Redemption funded by an equal sized equity offering aimed at accelerating balance sheet…
Durable, HighQuality Asset Base Break-Even Costs in Appalachia and Terryville Demonstrate the Quality of Ranges Asset Base 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Source: Bernstein Full-cycle Economics…
Deep Core Inventory in Appalachia Ranges inventory of high-return locations Ranges Estimated Inventory Count provides for years of efficient growth 5,000 4,700 Range has 4,700 identified locations in the 4,500 4,000 core of the…
SW PA Wet Area Marcellus 2017 Well Economics (Savings From Existing Pads Not Included) Southwestern PA (Wet Gas case) 225,000 Net Acres NYMEX Rate of EUR / 1,000 ft. 2.95 Bcfe Gas Price Return EUR 24.6 Bcfe Strip - 56% (67 Mbbls…
SW PA - Wet Area 2017 Turn in Line Forecast 3,000 2,500 Normalized McfE/Day per 1,000 ft. 2,000 1,500 1,000 500 2016 well count drops by 40% 0 0 100 200 300 400 500 600 700 800 900 1000 Days On 2016…
SW PA Wet Marcellus Horizontal Length (TIL) Average Number of Stages 9,000 45 Longer laterals expected in 2018 8,000 40 7,000 35 30 Stages 6,000 Feet 25 5,000 20 4,000 15 3,000 10 2,000 5 2015 2016 2017 2015 2016…
SW PA Super-Rich Area Marcellus 2017 Well Economics (Savings From Existing Pads Not Included) Southwestern PA (Wet Gas case) 110,000 Net Acres NYMEX Rate of EUR / 1,000 ft. 2.40 Bcfe Gas Price Return EUR 20.4 Bcfe Strip - 51% (289…
SW PA Super-Rich Area 2017 Turn in Line Forecast 3,500 3,000 2,500 Normalized McfE/Day per 1,000 ft. 2,000 1,500 1,000 500 0 0 100 200 300 400 500 600 700 800 900 1000 Days On 2016 Actual…
SW PA Super-Rich Marcellus Horizontal Length (TIL) Average Number of Stages 9,000 45 Longer laterals expected in 2018 40 8,000 35 7,000 30 Stages 6,000 Feet 25 5,000 20 4,000 15 3,000 10 2,000 5 2015 2016 2017…
SW PA Dry Area Marcellus 2017 Well Economics (Savings From Existing Pads Not Included) Southwestern PA (Dry Gas case) 180,000 Net Acres NYMEX Rate of EUR / 1,000 ft. 2.52 Bcf Gas Price Return EUR 22.3 Bcf Strip - 100+% Drill and…
SW PA - Dry Area 2017 Turn in Line Forecast 3,500 3,000 2,500 Normalized Mcf/Day per 1,000 ft. 2,000 1,500 1,000 500 Designed Facility Constraints 0 0 100 200 300 400 500 600 700 800 900 1000 Days On…
SW PA Dry Marcellus Horizontal Length (TIL) Average Number of Stages 10,000 Longer laterals expected in 2018 50 9,000 45 8,000 40 35 7,000 Stages 30 Feet 6,000 25 5,000 20 4,000 15 3,000 10 2,000 5 2015 2016…
Normalized Production Results of Marcellus Tighter Spacing Projects conducted in the Wet and Super Rich areas of the Marcellus 3,000 Tighter spaced wells turned to sales in 2009 and 2010 Average lateral length of these wells is…
Targeting/Downspacing Test Results Encouraging 3500 Optimized targeting shows a 53% increase in cumulative production 3000 after 1,000 days Normalized well costs were 850M 2500 less for optimized versus original No detrimental…
Utica/Point Pleasant Continued improvement in well performance for the 1st, 2nd and 3rd wells due to higher sand concentration and improved targeting Ranges third well appears to be one of the best dry gas Utica wells in the…
Utica Wells Wellhead Pressure vs. Cumulative Production 30 Mmcfd 10,000 25 Mmcfd 13,200 ft. TVD* 20 Mmcfd 8,000 13,400 ft. TVD* Wellhead Pressure (psi) 18 Mmcfd 11,850 ft. TVD* 6,000 12 Mmcfd 9,206 ft. TVD* 4,000…
North Louisiana Upper Red 2017 Well Economics North Louisiana Upper Red 220,000 Net Acres NYMEX Rate of EUR / 1,000 ft. 2.30 Bcfe Gas Price Return EUR 17.5 Bcfe Strip - 100+% (149 Mbbls condensate, 552 Mbbls NGLs & 13.3 Bcf gas)…
Upper Red - Average Production by Year Time Zero 4500 4000 3500 3000 MCFED / 1,000' LL 2500 2000 1500 1000 500 0 1 51 101 151 201 251 301 351 Days RRC Terryville Upper Red TC Upper Red 2015-2016 Actual…
Terryville Upper Red Well Production History (Oil/Wellhead Gas Only) 1000 900 800 700 600 MMCFE/1000' 500 400 300 200 100 0 0 5 10 15 20 25 Months Monthly Well Production RRC Type Curve Unadjusted…
North Louisiana Lower Red 2017 Well Economics North Louisiana Lower Red 220,000 Net Acres NYMEX Rate of EUR / 1,000 ft. 1.58 Bcfe Gas Price Return EUR 11.8 Bcfe Strip - 45% (119 Mbbls condensate, 378 Mbbls NGLs & 8.9 Bcf gas) Drill…
Lower Red Average Production by Year Time Zero 4000 3500 3000 2500 MCFED / 1,000' LL 2000 1500 1000 500 0 1 51 101 151 201 251 301 351 401 451 501 551 601 651 701 Days RRC Terryville Lower Red 2017…
Terryville Lower Red Well Production History (Oil/Wellhead Gas Only) 1000 900 800 700 600 MMCFE/1000' 500 400 300 200 100 0 0 5 10 15 20 25 Months Monthly Well Production RRC Type Curve Unadjusted Avg…
2016 Reserves and Resource Potential Summary Proved reserves of 12.1 Tcfe as of year Track Record of Reserve Growth end 2016 14 12 Proved reserves increased 11% y/y Total Proved Reserves in Tcfe excluding acquisitions and…
Track Record of Impressive Reserve Replacement at Low Cost 3-Year 5-Year Reserve Replacement 2012 2013 2014 2015 2016 Average (3) Average (3) All sources excluding PUD removals(1) 680% 745% 793% 436% 563% 585% 509% All sources (2)…
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…
Gas in Place (GIP) Utica/Point Pleasant Bold, outlined portion represents the area of the highest pressure gradients in the Point Pleasant Note: Outline of acreage is greater Pittsburgh area Note: Townships where Range holds…
Gas in Place (GIP) Upper Devonian 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: Outline of acreage is greater Pittsburgh…
Announced Appalachian Basin Takeaway Projects 1 of 2 Capacity Fully Approved or Northeast PA Operator Main Line Market Start-up* Bcf/d Committed with FERC 2015 Niagara Expansion Kinder Morgan TGP Canada Q4'15 0.2 Y Y Northern Access…
Announced Appalachian Basin Takeaway Projects 2 of 2 Capacity Fully Approved or Southwest Operator Main Line Market Start-up* Bcf/d Committed with FERC Midwest/Canada/ Rover Ph1 ETP Q3'17 1.9 Y Y 2017 Gulf Coast Rayne/Leach Xpress…
Mariner East: Opening New Lanes Only producer with current capacity on Mariner East Historic first shipments of ethane from U.S. to Europe Optionality of selling propane internationally or in local markets Improved ethane and…
Financial Detail
Range Bonds Continue to Trade Well Source: Bloomberg as of 7/26/2017 58
Natural Gas Hedging Status Volumes Average Floor Average Time Period Hedged Price Ceiling Price (Mmbtu/day) (/Mmbtu) (/Mmbtu) 3Q17 Swaps 841,196 3.19 3.19 4Q17 Swaps 867,935 3.20 3.20 Gas Swaps1 1Q18 Swaps 1,020,000 3.43 3.43…
Oil Hedging Status Volumes Average Floor Average Time Period Hedged Price Ceiling Price (bbl/day) (/bbl) (/bbl) 3Q17 Swaps 8,761 56.38 56.38 4Q17 Swaps 8,761 56.38 56.38 Oil Swaps FY18 Swaps 5,250 53.20 53.20 FY19 Swaps 500…
Natural Gas Liquids Hedging Status Volumes Hedged Hedged Price Time Period (bbls/day) (/gal) 3Q17 Swaps 3,000 0.27 Ethane (C2) 4Q17 Swaps 3,000 0.27 1H18 Swaps 250 0.29 3Q17 Swaps 13,826 0.56 Propane (C3)(a) 4Q17 Swaps 14,076…
Macro Section
Significant Natural Gas Demand Growth Projected LONG-TERM US NATURAL GAS DEMAND ROADMAP (BCF/D) Cumulative 2017 2018 2019 2020 2017-2020 LNG Exports Sabine Pass 1.2 1.2 Freeport - 0.5 1.2 1.7 Cove Point - 0.8 0.8 Cameron - 1.2…
U.S. LNG Export Terminal Capacity 20.0 18.0 Cameron T5 16.0 Magnolia LNG FERC Approved - Potential Next Wave 14.0 Projects Lake Charles T1-T3 Corpus Christi T3 12.0 Golden Pass T1-T3 Under Construction / In-Service…
U.S. Natural Gas Exports to Mexico Expected to Increase Source: Raymond James Energy Research Report Dated 12/19/2016 65
Oil Production Increasing, While Ex-Northeast gas Remains Relatively Flat 56 9,500 55 9,300 54 9,100 53 8,900 52 8,700 51 8,500 50 8,300 49 8,100 48 7,900 47 7,700 46 7,500 US Gas Pipeline Flows ex Northeast…
Texas Oil Production Increases, While Natural Gas Remains Relatively Flat Note: Natural gas series is marketed production Source: EIA, Federal Reserve Bank of Dallas 67
Appalachian Pipeline Flow Data by Region (Mcf/d) 10,000,000 NE PA production limited by infrastructure 9,000,000 DUCs depleted to normal working levels 8,000,000 7,000,000 6,000,000 Mcf/d 5,000,000 4,000,000…
Total U.S. Natural Gas Production Growth by Area 12.0% 10.0% 8.0% Year over Year % Growth 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% Source: Bloomberg as of August 2017 69
U.S. Onshore Lower 48 Wellhead Gas Production History 90 Base decline rate estimated 8 BCFD or 13% Exit to exit decline of 15 BCFD Actuals Forecasted 80 Includes associated gas production 70 60 50 BCFD 40 30 20…
Appalachian Rig Counts Remain Low Utica / Point Pleasant 60 50 40 Utica/Point Pleasant rig count 30 down 46% from the peak in 2014 20 10 0 Marcellus 150 120 Marcellus rig count down 53% 90 from the 2014 peak 60 30…
What Does the Futures Strip Price Indicate for Regional Basis Dawn 2016 +0.11 2020 -0.11 Algonquin 2016 +0.82 MichCon Leidy 2020 +1.44 Chicago CG 2016 +0.03 2016 -1.21 2016 +0.04 2020 -0.15 2020 -0.59 Transco Z6 (NY) 2020…
Contact Information Range Resources Corporation 100 Throckmorton St., Suite 1200 Fort Worth, Texas 76102 Laith Sando, Vice President Investor Relations (817) 869-4267 lsandorangeresources.com David Amend, Investor Relations…
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