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July 2018 Corporate Presentation – Range Resources Corp

Range Resources Corp · Jul 1, 2018 · 42 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. July 2018 Corporate Presentation – Range Resources Corp – slide 1
    Company Presentation July 2018
  2. July 2018 Corporate Presentation – Range Resources Corp – slide 2
    Range Overview Market Snapshot NYSE Symbol: RRC Market Cap (a): 4.2B Net Debt (b): 4.1B Enterprise Value: 8.3B SEC Proved Reserve Value PV10 8.1B Highlights Five Year Outlook(d) 2018 Capital Program of 941 million - 1 billion…
  3. July 2018 Corporate Presentation – Range Resources Corp – slide 3
    Strategic Focus Returns-Focused Growth on a Per Share Debt-Adjusted Basis Growth within cash flow driven by high-return assets Consistent emphasis on debt-adjusted per share metrics in management incentives Improving Corporate…
  4. July 2018 Corporate Presentation – Range Resources Corp – slide 4
    Five-Year Outlook Summary Free Cash Flow Debt Reduction…
  5. July 2018 Corporate Presentation – Range Resources Corp – slide 5
    Large Core Marcellus Inventory Large contiguous acreage position allows for Range acreage long-lateral development outlined in green 3,800 undrilled Core Marcellus wells (a) 300 wells with 40+ Bcfe EUR 400 wells with 30-40 Bcfe…
  6. July 2018 Corporate Presentation – Range Resources Corp – slide 6
    Low Maintenance Capital Drives Efficiencies Significant improvement in Maintenance Capital post-2018 1,600 Longer laterals lower base decline 1,400 Corporate base decline improves to Total Capital Spending (s in…
  7. July 2018 Corporate Presentation – Range Resources Corp – slide 7
    Balance Sheet Focus At Strip Pricing, Net Debt to EBITDAX is Reduced…
  8. July 2018 Corporate Presentation – Range Resources Corp – slide 8
    Production Growth Within Cash Flow 4,000 3,500 3,000 2,500 Mmcfepd 2,000 1,500 1,000 500 0 2017A 2018E 2019E 2020E 2021E 2022E North Louisiana Marcellus Growing production at 11% and spending within cash flow…
  9. July 2018 Corporate Presentation – Range Resources Corp – slide 9
    Improving Cost Structure Drives Cash Flow & Margin Growth 2.50 Cash Costs per mcfe 2.00 1.50 1.00 TGC&P improves by 0.25 per mcfe 0.50 over the 5-year outlook - 2018E 2022 G&T Interest G&A LOE Production Taxes…
  10. July 2018 Corporate Presentation – Range Resources Corp – slide 10
    Free Cash Flow Profile 1,800 1,600 1,600 1,400 Cumulative FCF (s in millions) 1,400 Total Capital Spending and 1,200 1,200 1,000 in Millions in millions 1,000 800 800 600 600 400 400 200 200 - 2018E…
  11. July 2018 Corporate Presentation – Range Resources Corp – slide 11
    Five-Year Outlook Sensitivities Base Case Upside Scenarios Provide Similar Results Strip Pricing WTI Increase NG Increase to 60.00 or to 3.00 Debt to EBITDAX 2020 2019…
  12. July 2018 Corporate Presentation – Range Resources Corp – slide 12
    Current Enterprise Value a Discount to YE17 PV-10 YE17 PV-10 at 9.5 billion Strip Pricing(a) YE17 PV10 Enterprise Value. Assumes no value for 58 Tcfe of Marcellus resource potential(c). Enterprise 8.3 billion Value(b) YE17…
  13. July 2018 Corporate Presentation – Range Resources Corp – slide 13
    Beyond the 5-Year Outlook Production 3.5 Bcfe per day Snapshot Annual CF Strip 1.95 billion December Maintenance Capital 600 million 2022E Remaining Core Marcellus Inventory 3,200 Wells YE2022 Debt to…
  14. July 2018 Corporate Presentation – Range Resources Corp – slide 14
    Appendix
  15. July 2018 Corporate Presentation – Range Resources Corp – slide 15
    Five-Year Outlook Assumptions and Definitions Assumptions: Production growth is driven by de-risked Marcellus inventory. North Louisiana production held relatively flat from YE18 through remainder of outlook. Strip pricing as of…
  16. July 2018 Corporate Presentation – Range Resources Corp – slide 16
    Revenue Recognition Accounting Standard Adopted in 1Q 2018 Range adopted the new revenue recognition accounting standards in 1Q18 which changes our financial statement presentation related to revenue from certain gas processing contracts.…
  17. July 2018 Corporate Presentation – Range Resources Corp – slide 17
    2017 Proved Reserves Track Record of Reserve Growth 18 Year-End 16 2017 SEC PV10 of 8.1 Total Proved Reserves (Tcfe) 14 billion 12 10 8 6 4 2 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Proved…
  18. July 2018 Corporate Presentation – Range Resources Corp – slide 18
    Appalachia Assets Stacked Pay 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 Hundreds of producing wells…
  19. July 2018 Corporate Presentation – Range Resources Corp – slide 19
    Southwest Appalachia Acreage Position Note: Grey area is greater Pittsburgh area. Range PA Longer laterals and existing pads in 2018 acreage outlined in green. provide low-risk efficiency gains OH Increased optionality due to…
  20. July 2018 Corporate Presentation – Range Resources Corp – slide 20
    North Louisiana Acreage Position 140,000(a) net acres of stacked pay potential in North Louisiana Acreage favorably located near growing Gulf Coast demand center provides improved price realizations and minimal transportation…
  21. July 2018 Corporate Presentation – Range Resources Corp – slide 21
    Diversified Marketing Strategy Appalachian Production Has Ability to Reach Multiple Markets Currently selling natural gas in the Gulf Coast, Midwest, Southeast and Northeast markets Exporting ethane and propane internationally with…
  22. July 2018 Corporate Presentation – Range Resources Corp – slide 22
    Innovative NGL Marketing Agreements Enhance Pricing First-mover on Appalachian NGL exports to Europe via ethane sales to INEOS using Mariner East capacity Ranges propane has been sold internationally since 2016 through Marcus Hook,…
  23. July 2018 Corporate Presentation – Range Resources Corp – slide 23
    Mariner East: Exporting Ethane and Propane Only producer with current capacity on Mariner East 1 Historic first shipments of ethane from U.S. to Europe Optionality of selling propane internationally or in local markets…
  24. July 2018 Corporate Presentation – Range Resources Corp – slide 24
    Differential Improvements Driving Margin Expansion Natural Gas Differential (a) NGL as a % of WTI (b) Condensate Differential - 34% - 32%- (0.10) (0.15) 33% (5.00)- 36% (3.00) (4.77) 30% (6.00) (0.20) (0.32) (6.00) (0.30) 26%…
  25. July 2018 Corporate Presentation – Range Resources Corp – slide 25
    SW PA Wet Area Marcellus 2018 Well Economics Southwestern PA (Wet Gas case) 225,000 Net Acres NYMEX Rate of EUR / 1,000 ft. 2.95 Bcfe Gas Price Return EUR 28.3 Bcfe Strip - 55% (77 Mbbls condensate, 2,330 Mbbls NGLs & 13.8 Bcf gas)…
  26. July 2018 Corporate Presentation – Range Resources Corp – slide 26
    SW PA - Wet Area 2018 Production Forecast 3,000 Consistent normalized production results for many years 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…
  27. July 2018 Corporate Presentation – Range Resources Corp – slide 27
    SW PA Super-Rich Area Marcellus 2018 Well Economics Southwestern PA (Wet Gas case) 110,000 Net Acres NYMEX Rate of EUR / 1,000 ft. 2.60 Bcfe Gas Price Return EUR 30.1 Bcfe Strip - 62% (416 Mbbls condensate, 2,309 Mbbls NGLs & 13.7…
  28. July 2018 Corporate Presentation – Range Resources Corp – slide 28
    SW PA Super-Rich Area 2018 Production Forecast 3,500 3,000 Continued improvement in normalized well performance with 2017 being best year 2,500 Normalized McfE/Day per 1,000 ft. 2,000 1,500 1,000 500 0…
  29. July 2018 Corporate Presentation – Range Resources Corp – slide 29
    SW PA Dry Area Marcellus 2018 Well Economics Southwestern PA (Dry Gas case) 170,000 Net Acres NYMEX Rate of EUR / 1,000 ft. 2.52 Bcf Gas Price Return EUR 24.8 Bcf Strip - 58% Drill and Complete Capital 6.5 MM 3.00 - 70% (656 K per…
  30. July 2018 Corporate Presentation – Range Resources Corp – slide 30
    SW PA - Dry Area 2018 Production Forecast 3,500 3,000 Consistent normalized production results over many years Normalized Residue Mcf/Day per 1,000 ft. 2,500 2,000 1,500 1,000 500 Surface Facility…
  31. July 2018 Corporate Presentation – Range Resources Corp – slide 31
    Targeting / Downspacing Production Results 3,000 Optimized targeting shows 2,500 50% increase in cumulative production after 1,300 days 2,000 Normalized well costs were 850k less for optimized versus original 1,500 No…
  32. July 2018 Corporate Presentation – Range Resources Corp – slide 32
    Return to Existing Pads Marcellus 100,000 Drilled Wells - 2015 10,000 Additional 3 wells Wellhead Gas (MCFD) 1,000 Future Locations 100 Drilled 10 Wells - 2014 1 Mar-14 Sep-14 Apr-15 Oct-15 May-16 Nov-16…
  33. July 2018 Corporate Presentation – Range Resources Corp – slide 33
    Deep Utica Range has drilled three Deep Utica wells Ranges third well appears to be one of the best dry gas Utica wells in the basin (next slide) Continued improvement in well performance due to higher sand concentration and…
  34. July 2018 Corporate Presentation – Range Resources Corp – slide 34
    Utica Wells Wellhead Pressure vs. Cumulative Production Ranges DMC Properties well one of the best in the Utica 35
  35. July 2018 Corporate Presentation – Range Resources Corp – slide 35
    N. LA Combined Lower Cotton Valley Well Economics Combined Lower Cotton Valley 140,000(a) Net Acres NYMEX Rate of a) EUR / 1,000 ft. 1.61 Bcfe Gas Price Return EUR 12.1 Bcfe Strip - 27% (11 Mbbls condensate, 408 Mbbls NGLs & 9.6…
  36. July 2018 Corporate Presentation – Range Resources Corp – slide 36
    N. LA 2018 Combined Lower Cotton Valley Production Forecast 4000 3500 3000 2500 MCFED / 1,000' LL 2000 1500 1000 500 0 0 100 200 300 400 500 600 700 Days On Offset Normalized Production CVCombined…
  37. July 2018 Corporate Presentation – Range Resources Corp – slide 37
    Financial Detail
  38. July 2018 Corporate Presentation – Range Resources Corp – slide 38
    Well-structured, Resilient Balance Sheet 4 billion credit facility (3B borrowing base, Capital Structure(a) 2B committed) (millio ns) 1Q18 No note maturities until 2021 Bank Debt 1,182 Senior Notes 2,877 Simple capital structure…
  39. July 2018 Corporate Presentation – Range Resources Corp – slide 39
    Recycle Ratio Calculation Example Cash margin per mcfe / PUD development costs per mcfe. Numerator: Pre- Hedge Realized Price (a) 3.20 per mcfe All-in Cash Costs (Mid-point of 2018 Expectations) (b) 2.07 per mcfe Adjusted Margin…
  40. July 2018 Corporate Presentation – Range Resources Corp – slide 40
    Natural Gas & Oil Hedging Status Volumes Hedged Average Hedge Prices Time Period (Mmbtu/day) (/Mmbtu) 2Q18 Swaps 1,170,000 2.97 3Q18 Swaps 1,220,000 2.97 Gas Swaps1 4Q18 Swaps 1,193,478 2.97 FY19 Swaps 554,795 2.84…
  41. July 2018 Corporate Presentation – Range Resources Corp – slide 41
    Liquids Hedging Status Volumes Hedged Average Hedge Prices Time Period (bbls/day) (/gal) Ethane (C2) 2Q18 Swaps 250 0.29 2Q18 Swaps 14,133 0.69 Propane (C3)1 3Q18 Swaps 8,918 0.63 4Q18 Swaps 7,918 0.60 2Q18 Swaps 4,500…
  42. July 2018 Corporate Presentation – Range Resources Corp – slide 42
    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 Michael Freeman, Director Investor…

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