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July 2019 Corporate Presentation – Range Resources Corp

Range Resources Corp · Jul 11, 2019 · 45 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 2019 Corporate Presentation – Range Resources Corp – slide 1
    Company Presentation July 2019
  2. July 2019 Corporate Presentation – Range Resources Corp – slide 2
    Range At a Glance Unmatched Southwest Appalachia Inventory Approximately one half million net acres provide decades of low-risk drilling opportunities Contiguous position allows for efficient operations and long-lateral development…
  3. July 2019 Corporate Presentation – Range Resources Corp – slide 3
    Unmatched Inventory in Southwest Appalachia 3,700 undrilled core Marcellus wells (a) Range acreage provide decades of low-risk drilling outlined in green opportunities Marcellus resource potential (b) 40 Tcf of natural gas 3 billion…
  4. July 2019 Corporate Presentation – Range Resources Corp – slide 4
    Value of Year-end 2018 Proved Reserves - 24 per share Included in Reserves, as defined by SEC Only 5 years of development activity Proved Developed reserves of 9.8 Tcfe with PV10 of 6.6 billion at YE18 strip Proved Undeveloped…
  5. July 2019 Corporate Presentation – Range Resources Corp – slide 5
    Peer-Leading Development Costs Blocked-up acreage allows for long Peer-leading well costs and laterals and efficient operations recoveries result in top-tier driving peer-leading well costs development costs per mcfe Appalachian…
  6. July 2019 Corporate Presentation – Range Resources Corp – slide 6
    Cash Recycle Ratio Shows Quality and Durability of Asset Base 250% 200% 150% 100% 50% 0% Appalachia Gas Peer Oil Peer Source: MKM Partners. Energy/Exploration & Production Outlook. June 2019. Cash Recycle Ratio =…
  7. July 2019 Corporate Presentation – Range Resources Corp – slide 7
    Maintenance Capital Drives Free Cash Flow Through the Cycles Shallow Base Decline Driven by: Core Marcellus position 10+ years of drilling in Marcellus provides solid base of low-decline wells Infrastructure built to maximize…
  8. July 2019 Corporate Presentation – Range Resources Corp – slide 8
    Improving Cost Structure Enhances 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…
  9. July 2019 Corporate Presentation – Range Resources Corp – slide 9
    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…
  10. July 2019 Corporate Presentation – Range Resources Corp – slide 10
    Corporate Sustainability Report Highlights Emissions Target Across Operations 2018 Emission Reduction Results Range proactively works to optimize facility designs 0.6 -12% to reduce environmental footprint and improve Metric ton…
  11. July 2019 Corporate Presentation – Range Resources Corp – slide 11
    Natural Gas Demand Increases 21 Bcf/d in Next 5 Years 2019-2024 Demand Outlook U.S. LNG Export Terminal Capacity (Bcf/d) 22 Port Arthur Total demand growth of +21 Bcf/d through 20 FERC Approved and/or 70% long-term offtake Magnolia…
  12. July 2019 Corporate Presentation – Range Resources Corp – slide 12
    Natural Gas Supply - Base Decline & Capital Discipline Base Declines Offset Current Activity U.S. Natural Gas Base Decline Rate Average U.S. decline rate of 24% equates to 23 Bcf/d of new gas required to simply hold production flat…
  13. July 2019 Corporate Presentation – Range Resources Corp – slide 13
    NGL Macro Improving Transitory Issues Impacting NGL Ranges Ability to Export Provides Price Diversity Exports in 1Q19 Now Resolved Approximately 200 MBPD in exports affected Ethane Price Diversity Propane & Butane (b) over 45 day…
  14. July 2019 Corporate Presentation – Range Resources Corp – slide 14
    Range is Positioned Well for Low Commodity Prices Self-Funded Business Model 4,500 Range is growing, generating free cash flow and reducing absolute debt 4,000 Flexible capital program as all of Ranges firm transportation…
  15. July 2019 Corporate Presentation – Range Resources Corp – slide 15
    Appendix
  16. July 2019 Corporate Presentation – Range Resources Corp – slide 16
    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…
  17. July 2019 Corporate Presentation – Range Resources Corp – slide 17
    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…
  18. July 2019 Corporate Presentation – Range Resources Corp – slide 18
    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…
  19. July 2019 Corporate Presentation – Range Resources Corp – slide 19
    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…
  20. July 2019 Corporate Presentation – Range Resources Corp – slide 20
    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…
  21. July 2019 Corporate Presentation – Range Resources Corp – slide 21
    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…
  22. July 2019 Corporate Presentation – Range Resources Corp – slide 22
    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…
  23. July 2019 Corporate Presentation – Range Resources Corp – slide 23
    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)…
  24. July 2019 Corporate Presentation – Range Resources Corp – slide 24
    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.)…
  25. July 2019 Corporate Presentation – Range Resources Corp – slide 25
    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…
  26. July 2019 Corporate Presentation – Range Resources Corp – slide 26
    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…
  27. July 2019 Corporate Presentation – Range Resources Corp – slide 27
    Utica Activity Range has drilled three 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…
  28. July 2019 Corporate Presentation – Range Resources Corp – slide 28
    Utica Wells Wellhead Pressure vs. Cumulative Production Ranges DMC Properties well one of the best in the Utica 29
  29. July 2019 Corporate Presentation – Range Resources Corp – slide 29
    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,…
  30. July 2019 Corporate Presentation – Range Resources Corp – slide 30
    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…
  31. July 2019 Corporate Presentation – Range Resources Corp – slide 31
    Natural Gas & NGL Macro Outlook
  32. July 2019 Corporate Presentation – Range Resources Corp – slide 32
    Natural Gas - 35% of the U.S. Generation Mix in 2018 U.S. Natural Gas Generation as a % of Gas + Coal Growing Market Share in Power Gen. 80% Gas power demand grew by 11 Bcf/d from 2009-2018, while coal declined 11 Bcf/d(a) and 70%…
  33. July 2019 Corporate Presentation – Range Resources Corp – slide 33
    Shale Efficiency Gains Are Slowing 6-Month Daily Oil Production per 1,000 Lateral Ft. Oil Basins Limited Tier-1 runway left in Williston and Eagle Ford as cores are believed to have been heavily drilled Up-spacing across several…
  34. July 2019 Corporate Presentation – Range Resources Corp – slide 34
    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…
  35. July 2019 Corporate Presentation – Range Resources Corp – slide 35
    L48 Dry Gas Production Growth Slowing U.S L48 Pipeline Flows (Bcf/d) 90 88 86 84 82 80 78 76 74 72 70 68 1/1 2/1 3/1 4/1 5/1 6/1 7/1 8/1 9/1 10/1 11/1 12/1 2017 2018 2019 Source: Platts 36
  36. July 2019 Corporate Presentation – Range Resources Corp – slide 36
    LNG Growth Expected to Continue U.S. LNG Export Terminal Capacity (Bcf/d) Second Wave 22 FIDs & Potential Port Arthur 20 FERC Approved and/or 70% long-term offtake Magnolia LNG 18 signed. Potential Next Freeport T4 16 Wave Projects.…
  37. July 2019 Corporate Presentation – Range Resources Corp – slide 37
    U.S. Natural Gas Exports to Mexico Making New Highs U.S. Natural Gas Exports to Mexico (Bcf/d) 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Source: Bloomberg 38
  38. July 2019 Corporate Presentation – Range Resources Corp – slide 38
    NGL Macro Outlook 2017-2040 Change in Global Oil Product Demand by Scenario NGL Demand IEA forecasts LPG (propane and butane) and ethane to be the fastest growing global oil products over medium and long term Demand growth driven…
  39. July 2019 Corporate Presentation – Range Resources Corp – slide 39
    Financial Detail
  40. July 2019 Corporate Presentation – Range Resources Corp – slide 40
    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…
  41. July 2019 Corporate Presentation – Range Resources Corp – slide 41
    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…
  42. July 2019 Corporate Presentation – Range Resources Corp – slide 42
    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…
  43. July 2019 Corporate Presentation – Range Resources Corp – slide 43
    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…
  44. July 2019 Corporate Presentation – Range Resources Corp – slide 44
    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…
  45. July 2019 Corporate Presentation – Range Resources Corp – slide 45
    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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