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February 2019 Corporate Presentation – Range Resources Corp

Range Resources Corp · Feb 25, 2019 · 32 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. February 2019 Corporate Presentation – Range Resources Corp – slide 1
    Company Presentation Company January Presentation Company 20182018 January Presentation February 25, 2019
  2. February 2019 Corporate Presentation – Range Resources Corp – slide 2
    Range Overview Market Snapshot NYSE Symbol: RRC Market Cap (a): 2.6B Net Debt (b): 3.8B Enterprise Value: 6.5B Proved Reserves PV-10 at YE18 Strip (c): 9.9B Proved Developed PV-10 at YE18 Strip (c): 6.6B Recent Highlights Acreage…
  3. February 2019 Corporate Presentation – Range Resources Corp – slide 3
    Strategic Focus Sustainable Free Cash Flow Driven by High-Return Assets Disciplined spending supported by low base decline and maintenance capital Consistent emphasis on debt-adjusted per share metrics in management incentives Target…
  4. February 2019 Corporate Presentation – Range Resources Corp – slide 4
    Large Core Marcellus Inventory Large contiguous acreage position allows Range acreage outlined in green for long-lateral development 3,700 undrilled Core Marcellus wells (a) 285 wells with 40+ Bcfe EUR 385 wells with 30-40 Bcfe…
  5. February 2019 Corporate Presentation – Range Resources Corp – slide 5
    High Quality Resource Base Proved reserves valued at 9.9 billion PV-10 at YE18 strip. Equals 24/share, net of YE18 debt balance. Proved Developed 9.8 Tcfe Proved Undeveloped Included in Reserves 8.3 Tcfe Proved Developed reserves of…
  6. February 2019 Corporate Presentation – Range Resources Corp – slide 6
    Appalachia Assets Stacked Pay 1.5 million net effective acres (a) in PA leads to decades of drilling inventory Gas In Place analysis shows the greatest potential is in Southwest Pennsylvania Approximately 1,000 producing Marcellus…
  7. February 2019 Corporate Presentation – Range Resources Corp – slide 7
    Southwest Appalachia Acreage Position Note: Grey area is greater Longer laterals and existing pads in 2019 provide Pittsburgh area. Range acreage outlined in green. PA low-risk efficiency gains OH Liquids and dry optionality…
  8. February 2019 Corporate Presentation – Range Resources Corp – slide 8
    Low Base Decline Supports Low Maintenance Capital D&C Maintenance Capital(a) Significant improvement in Maintenance 700 Capital post-2018 600 2019 maintenance capital improves significantly Capital Spending ( in millions)…
  9. February 2019 Corporate Presentation – Range Resources Corp – slide 9
    Low Maintenance Capital Supports Sustainable Free Cash Flow 100% 90% FCF Yield Considerations for Cash Flow 80% 6% y/y growth above Maintenance Capital % of Operating Cash Flow 70% Free Cash Flow 60% Generating a free cash…
  10. February 2019 Corporate Presentation – Range Resources Corp – slide 10
    Capital Allocation Scenarios Five-Year Outlook Summary Base Prices Upside Prices 2.70 gas/55 WTI 2.85 gas/60 WTI Maintenance Balanced Full Balanced Capital Approach Reinvestment Approach 2019-2023 Cumulative Free Cash Flow…
  11. February 2019 Corporate Presentation – Range Resources Corp – slide 11
    Improving Cost Structure Drives Cash Flow & Margin Growth Cash Operating Costs ( per mcfe) 2.25 Cost Structure Improves 7% from 4Q18 to 4Q19 Cost Structure 2.00 Improves 0.30/mcfe from 4Q18 to 4Q23 1.75 1.50 1.25 1.00…
  12. February 2019 Corporate Presentation – Range Resources Corp – slide 12
    Differentials Have Stabilized and Improved vs Historical Levels Natural Gas Differential(a) NGL as a % of WTI(b) Condensate Differential 36% - 40% 35% (0.10) - (0.20) (4.87) (0.20) (6.00) - (8.00) 24% (12.03) (0.49) 2015-2016…
  13. February 2019 Corporate Presentation – Range Resources Corp – slide 13
    Current Enterprise Value a Discount to YE18 PV-10 YE18 PV-10 at 9.9 billion Strip Pricing(a) YE18 PV10 Enterprise Value. Excludes the value of 58 Tcfe Marcellus resource potential(c). Enterprise 6.5 billion Value(b) YE18…
  14. February 2019 Corporate Presentation – Range Resources Corp – slide 14
    Appendix
  15. February 2019 Corporate Presentation – Range Resources Corp – slide 15
    Five-Year Outlook Assumptions Assumptions: Production growth is driven by de-risked Marcellus inventory. Commodity Price Assumptions: Henry Hub: 2.90 (2019), 2.70 (2020-2023) Natural Gas Differential: (0.14) in 2019, (0.11) in…
  16. February 2019 Corporate Presentation – Range Resources Corp – slide 16
    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…
  17. February 2019 Corporate Presentation – Range Resources Corp – slide 17
    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…
  18. February 2019 Corporate Presentation – Range Resources Corp – slide 18
    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…
  19. February 2019 Corporate Presentation – Range Resources Corp – slide 19
    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)…
  20. February 2019 Corporate Presentation – Range Resources Corp – slide 20
    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 (661 K per 1,000 ft.)…
  21. February 2019 Corporate Presentation – Range Resources Corp – slide 21
    Targeting / Downspacing Production Results 3,000 2,500 Optimized targeting shows 50% Normalized Mmcfe/Day per 1,000 ft. 2,000 increase in cumulative production after 1,300 days No detrimental production impact seen…
  22. February 2019 Corporate Presentation – Range Resources Corp – slide 22
    Return to Existing Pads Marcellus 100,000 Drilled 10,000 Wells - 2015 Additional 3 wells Wellhead Gas (MCFD) 1,000 Future Locations 100 10 Drilled Wells - 2014 1 Mar-14 Oct-14 May-15 Dec-15 Jul-16 Mar-17…
  23. February 2019 Corporate Presentation – Range Resources Corp – slide 23
    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…
  24. February 2019 Corporate Presentation – Range Resources Corp – slide 24
    Utica Wells Wellhead Pressure vs. Cumulative Production Ranges DMC Properties well one of the best in the Utica 25
  25. February 2019 Corporate Presentation – Range Resources Corp – slide 25
    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,…
  26. February 2019 Corporate Presentation – Range Resources Corp – slide 26
    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…
  27. February 2019 Corporate Presentation – Range Resources Corp – slide 27
    Financial Detail
  28. February 2019 Corporate Presentation – Range Resources Corp – slide 28
    Well-Structured, Resilient Balance Sheet 4 billion credit facility, Capital Structure(a) (3B borrowing base, 2B committed) (millions) 4Q18 No note maturities until 2021 Bank Debt 943 Senior Notes 2,877 Simple capital structure…
  29. February 2019 Corporate Presentation – Range Resources Corp – slide 29
    Development Cost & Recycle Ratio Calculation Cash margin per mcfe / PUD development costs per mcfe. Numerator: Pre-Hedge Realized Price (a) 3.12 per mcfe All-In Cash Costs (Mid-Point of 2019 Guidance) 2.10 per mcfe Adjusted…
  30. February 2019 Corporate Presentation – Range Resources Corp – slide 30
    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…
  31. February 2019 Corporate Presentation – Range Resources Corp – slide 31
    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…
  32. February 2019 Corporate Presentation – Range Resources Corp – slide 32
    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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