Company Presentation Company January Presentation 20182018 January Credit Suisse Energy Summit 2019
Range Overview Market Snapshot NYSE Symbol: RRC Market Cap (a): 2.4B Net Debt (b): 3.9B Enterprise Value: 6.3B Proved Reserve PV-10 at YE18 Strip (c): 9.9B Proved Developed PV-10 at YE18 Strip (c): 6.6B Reserve Highlights Acreage…
Strategic Focus Returns-Focused Development on a Per Share Debt-Adjusted Basis Sustainable free cash flow driven by high-return assets Consistent emphasis on debt-adjusted per share metrics in management incentives Improving…
Appalachia Assets Stacked Pay 1.5 million net effective acres (a) in PA leads to decades of drilling inventory Gas In Place (GIP) analysis shows the greatest potential is in Southwest Pennsylvania Approximately 1,000 producing…
Consistent Track Record of Reserve Growth Proved reserves of 18.1 Tcfe as of year end 2018 YE18 proved reserves increased 18% y/y Future development costs for proved undeveloped reserves are estimated to be 0.40 per Mcfe at YE2018…
2018 Reserve Walk-forward SUMMARY OF CHANGES IN PROVED RESERVES (in Bcfe) Balance at December 31, 2017 15,262 Extensions, discoveries and additions 3,144 Performance revisions: PUD improved recovery 154 Field performance 945…
Reserves Overview Included in Reserves: NOT Included in Reserves: Proven Developed (9.8 Tcfe) Resource Potential (100 Tcfe) Expected remaining recoveries from producing Resource potential not included in the wells at year-end 2018…
Large Core Marcellus Inventory Large contiguous acreage position allows for Range acreage long-lateral development outlined in green 3,700 undrilled Core Marcellus wells (a) 285 wells with 40+ Bcfe EUR 385 wells with 30-40 Bcfe…
Peer-Leading PUD Development Costs PUD Development Costs ( per mcfe) 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2015 2016 2017 2018 Peer Average RRC PUD Development Costs Consistently Ahead of Appalachia Peers Note:…
Development Cost & Recycle Ratio Calculation 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 4Q18 Guidance) 2.20 per mcfe Adjusted…
Low Maintenance Capital Drives Efficiencies Significant improvement in Maintenance Capital post-2018 2018 maintenance capital higher than future years due to 2H17 production ramp 700 Corporate base decline improves…
Maintenance Capital Example Starting production 1st year recoveries(a) for SW PA wells: assumed 2,260 Mmcfe/d Super Rich = 2.8 Bcfe gross (2.3 Bcfe net) Wet = 3.7 Bcfe gross (3.0 Bcfe net) Production = 85 Bcfe Dry = 4.3 Bcf gross…
Current Enterprise Value a Discount to YE18 PV-10 YE18 PV-10 at 9.9 billion Strip Pricing(a) YE18 PV10 Enterprise Value. Assumes no value for 58 Tcfe of Marcellus resource potential(c). Enterprise 6.3 billion Value(b) YE18…
Appendix
Southwest Appalachia Acreage Position Note: Grey area is greater Longer laterals and existing pads in 2019 provide low-risk Pittsburgh area. Range acreage outlined in green. PA efficiency gains OH Increased optionality due to…
SW PA Super-Rich Area Marcellus 2019 Well Economics Southwestern PA (Wet Gas case) 110,000 Net Acres NYMEX Rate of EUR / 1,000 ft. 2.6 Bcfe Gas Price Return EUR 26.0 Bcfe Strip - 52% (360 Mbbls condensate, 1,999 Mbbls NGLs & 11.9 Bcf…
SW PA Wet Area Marcellus 2019 Well Economics Southwestern PA (Wet Gas case) 240,000 Net Acres NYMEX Rate of EUR / 1,000 ft. 2.96 Bcfe Gas Price Return EUR 29.6 Bcfe Strip - 51% (80 Mbbls condensate, 2,440 Mbbls NGLs & 14.5 Bcf gas)…
SW PA Dry Area Marcellus 2019 Well Economics Southwestern PA (Dry Gas case) 150,000 Net Acres NYMEX Rate of EUR / 1,000 ft. 2.52 Bcf Gas Price Return EUR 25.2 Bcf Strip - 46% Drill and Complete Capital 6.6 MM 3.00 - 61% (661 K per…
Targeting / Downspacing Production Results 3,000 2,500 Optimized targeting shows 50% increase in cumulative production after 1,300 days Normalized Mmcfe/Day per 1,000 ft. 2,000 Normalized well costs were 850k less for…
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…
Utica Wells Wellhead Pressure vs. Cumulative Production Ranges DMC Properties well one of the best in the Utica 23
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…
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,…
Differential Improvements Driving Margin Expansion Natural Gas Differential (a) NGL as a % of WTI (b) Condensate Differential - 38% - (0.08) (0.10) 37%- (5.00)- 34% 38% (3.00) (4.77) (6.00) (0.20) 33% (0.32) 30% (6.00) (0.30)…
Revenue Recognition Accounting Standard Adopted in 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. As…
Financial Detail
Well-Structured, Resilient Balance Sheet 4 billion credit facility, Capital Structure(a) (3B borrowing base, 2B committed) (millions) 3Q18 No note maturities until 2021 Bank Debt (a) 971 Senior Notes 2,877 Simple capital structure…
Natural Gas & Oil Hedging Status Volumes Hedged Average Hedge Prices Time Period (Mmbtu/day) (/Mmbtu) 1Q19 Swaps 1,385,000 3.05 2Q19 Swaps 1,455,000 2.80 Natural Gas1 3Q19 Swaps 1,455,000 2.80 (Henry Hub) 4Q19 Swaps 1,428,478…
Liquids Hedging Status Volumes Hedged Average Hedge Prices Time Period (bbls/day) (/gal) 1Q19 Collars 7,000 0.927 x 1.029 1Q19 Swaps 8,500 0.963 Propane (C3) 2Q19 Collars 1,000 0.90 x 0.96 2Q19 Swaps 8,500 0.878 Normal…
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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