J.P. Morgan Global High Yield & Leveraged Finance Conference 2020
Range At a Glance Unmatched Southwest Appalachia Inventory Approximately one half million net acres provide decades of low-risk drilling inventory Contiguous position allows for efficient operations and long-lateral development…
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…
Value of Year-End 2019 Proved Reserves Over 2.4x Total Debt Included in SEC Reserves Only 5 years of development activity Proved Developed reserves of 9.9 Tcfe Proved Developed Proved Undeveloped reserves of 8.3 Tcfe 9.9 Tcfe…
Capital Efficiency Driven by Peer-Leading Well Costs & Decline Rate Well Costs per Lateral Foot 2020 Decline Rate 1,400 40% 1,200 35% 1,000 30% 800 25% 20% 600 15% 400 10% 200 5% 0 RRC RRC Peer 1 Peer 2 Peer 3 Peer 4 Peer…
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 =…
Maintenance Capital Drives Free Cash Flow Through the Cycles Shallow Base Decline Driven by: Core Marcellus position 10+ years of drilling history in Marcellus provides solid base of low-decline wells Infrastructure built to…
Improving Cost Structure Enhances Cash Flow & Margin Growth 2.20 Over Half of Targeted Savings Have Already 2.10 Been Achieved Cash Operating Costs ( per mcfe) 2.00 1.90 1.80 1.70 1.60 1.50 1.40 1.30 1.20 4Q18 1Q19 2Q19…
Leading in Sustainability and Environmental Practices Environmental Responsibility Highlights Range is actively Ranked second among Ranges water sharing working to achieve zero top producers on water program is recycling net…
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…
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 26% equates to 27 Bcf/d of new gas required each year to simply hold…
NGL Macro Improving New Export Infrastructure 2019-2020 Ranges Ability to Export Provides Price Diversity 2019 export capacity to increase by 400 Ethane Price Diversity Propane & Butane MBPD and by 650 MBPD in 2020 versus EIA gas plant…
Range is Positioned Well for Low Commodity Prices Significant Liquidity Profile Self-Funded Business Model 4,500 Flexible capital program as all of Ranges firm 4,000 transportation commitments have been met Max Conforming 3,500…
Appendix
Peer-Leading Capital Efficiency Ranges Estimated 2020 Capital Efficiency Remains Consistent With Prior Year, Versus Some Peers Who May Rely on One-Time DUC Drawdowns. 500 Implied D&C Maintenance Capital per Mcfepd 450 400 384 387…
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…
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…
Significant Utica Resource 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…
Utica Wells Wellhead Pressure vs. Cumulative Production Ranges DMC Properties well one of the best in the Utica 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,…
High Quality Reserve Base Proved reserves of 18.2 Tcfe as of year end 2019 Future development costs for proved undeveloped reserves are estimated to be 0.35 per Mcfe at YE2019 20 2019 SEC PV10 18 of 7.6 billion 16 Total Proved…
Natural Gas & NGL Macro Outlook
Natural Gas - 35% of the U.S. Generation Mix in 2018 U.S. Power Generation by Source(a) Growing Market Share in Power Gen. 40 Gas power demand grew by 11 Bcf/d from 2009-2018, while coal declined 11 Bcf/d(a) and 35 renewables grew…
Shale Efficiency Gains Are Slowing 6-Month Daily Oil Production per 1,000 Lateral Ft. Oil Basins Limited Tier-1 runway left in Williston, Mid- Con, DJ Basin and Eagle Ford as cores are believed to have been heavily drilled Up-spacing…
Dry Gas Basin Break-Evens Suggest Higher Prices 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 from…
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…
Global LPG Demand Forecast Absorbs Growing U.S. Exports Global LPG S&D Waterfall (MBL/D) 11,200 11,000 10,800 10,600 10,400 1.2 10,200 MMBPD 10,000 9,800 9,600 9,400 9,200 2018 Demand ResCom + Industry PDH…
Financial Detail
Well-Structured, Resilient Balance Sheet 4+ billion max conforming borrowing base Capital Structure(e) (3B elected borrowing base, 2.4B committed) (millions) 3Q19 Simple capital structure Bank Debt 411 Near-term cash flow…
Natural Gas & NGL Hedging Status Volumes Hedged Average Hedge Prices Time Period (Mmbtu/day) (/Mmbtu) 4Q19 Swaps 1,421,739 2.82 1Q20 Swaps 1,007,253 2.68 Natural Gas1 2Q20 Swaps 1,010,000 2.62 (Henry Hub) 3Q20 Swaps 1,010,000…
Oil Hedging Status Volumes Hedged Average Hedge Prices Time Period (bbl/day) (/bbl) 4Q19 Collars 1,000 63 x 73 4Q19 Swaps 9,168 56.11 1Q20 Swaps 9,000 58.62 Oil (WTI)1 2Q20 Swaps 9,000 58.18 3Q20 Swaps 8,500 58.15 4Q20 Swaps…
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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