Range Overview Market Snapshot NYSE Symbol: RRC Market Cap (a): 2.3B Net Debt (b): 3.8B Enterprise Value: 6.1B Proved Reserves PV-10 at YE18 Strip (c): 9.9B Proved Developed PV-10 at YE18 Strip (c): 6.6B Recent Highlights Acreage…
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…
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…
High Quality Resource Base Proved reserves valued at 9.9 billion PV-10 at YE18 strip. Equals 24/share, net of 1Q19 debt balance. Proved Developed 9.8 Tcfe Proved Undeveloped Included in Reserves 8.3 Tcfe Proved Developed reserves of…
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…
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…
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)…
Peer-Leading Maintenance Capital Profile 2019 D&C Maintenance Capex as a % of Consensus Cash Flow 120% 110% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% RRC Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Range Is the Only Operator…
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…
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…
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…
Differentials Have Stabilized and Improved vs Historical Levels Natural Gas Differential(a) NGL as a % of WTI(b) Condensate Differential 34% - 40% 35% (0.10) - (0.20) (4.87) (0.20) (6.00) - (8.00) 24% (12.03) (0.49) 2015-2016…
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 6.1 billion Value(b) YE18…
Appendix
Five-Year Outlook Assumptions Assumptions: Production growth is driven by de-risked Marcellus inventory. Commodity Price Assumptions (strip pricing as of February 2019): Henry Hub: 2.90 (2019), 2.70 (2020-2023) Natural Gas…
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…
Base Decline & Capital Efficiency Improving 2,400 2,200 Daily Production (Mmcfe per day) 2,000 1,800 1,600 1,400 1,200 1,000 800 Base Decline 20% Base Decline 20% 600 Moderate Growth & Multiple Years of Marcellus Base…
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 (661 K per 1,000 ft.)…
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…
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 26
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,…
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…
Natural Gas & NGL Macro Outlook
U.S. Natural Gas Demand Outlook: +21 Bcf/d 2019-24 2019-2021 Demand Outlook U.S. Gas Demand Growth Forecast (Bcf/d) Demand growth led by U.S LNG Projects and 14 R+C build-out of Mexican pipeline infrastructure Other 12 Industrial…
Natural Gas - 35% of the U.S. Generation Mix in 2018 Growing Market Share in Power Gen. U.S. Natural Gas Generation as a % of Gas + Coal Gas power demand grew by 11 Bcf/d from 80% 2009-2018, while coal declined 11 Bcf/d(a) and…
Supply Growth Battles Declines & Producer Capital Discipline Growing Supply Requires More than U.S. Natural Gas Base Decline Rate Offsetting Base Declines Average U.S. decline rate of 24% equates to 23 Bcf/d of new gas required to hold…
Shale Efficiency Gains Are Slowing Oil Basins 6-Month Daily Oil Production per 1,000 Lateral Ft. Limited Tier-1 runway left in Williston and Eagle Ford as cores are believed to have been heavily drilled Up-spacing across several plays…
Dry Gas Basin Economics Under Pressure at Current Strip Supply Growth Needed from Dry Gas Basins EIA forecasts 6.7 Bcf/d of 2019-2024 supply growth from outside of Northeast (mostly associated gas) Demand growth forecast of +21 Bcf/d…
NGL Macro Outlook Fractionation Tightness to Return in Mont Belvieu C2 Premium to NYMEX (cents per gallon) 2019 40 NGL price rally in Summer 2018 was driven 35 by U.S. fractionation capacity tightness that 30 was temporarily relieved…
Financial Detail
Guidance 2Q 2019 Full-Year 2019 Production (Mmcfe per day) 2,270 to 2,280 2,325 to 2,345 Capital Expenditures 756 million Operating Expense Guidance Direct Operating Expense per mcfe 0.16 - 0.18 TGP&C Expense per mcfe 1.47 - 1.51…
Well-Structured, Resilient Balance Sheet 4 billion credit facility, Capital Structure(a) (3B borrowing base, 2B committed) (millions) 1Q19 No note maturities until 2021 Bank Debt 895 Senior Notes 2,877 Simple capital structure…
Development Cost & Recycle Ratio Calculation Cash margin per mcfe / PUD development costs per mcfe. Numerator: 1Q19 Pre-Hedge Realized Price 3.37 per mcfe 1Q19 All-In Cash Costs 2.13 per mcfe Adjusted Margin per Mcfe 1.23 per…
Natural Gas & Oil Hedging Status Volumes Hedged Average Hedge Prices Time Period (Mmbtu/day) (/Mmbtu) 2Q19 Swaps 1,350,000 2.80 3Q19 Swaps 1,425,109 2.80 Natural Gas1 (Henry Hub) 4Q19 Swaps 1,428,261 2.82 FY20 Swaps 334,973…
Liquids Hedging Status Volumes Hedged Average Hedge Prices Time Period (bbls/day) (/gal) Ethane (C2) 2Q19 Swaps 500 0.35 2Q19 Collars 1,000 0.90 x 0.96 Propane (C3) 2Q19 Swaps 8,500 0.878 2Q19 Swaps 5,000 1.341…
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…
Loading...
