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Scotia Howard Weil 2020 Energy Conference – Range Resources Corp

Range Resources Corp · Mar 24, 2020 · 39 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. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 1
    Company Presentation Scotia Howard Weil 2020 Energy Conference
  2. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 2
    Range Who We Are Top 10 U.S. Natural Gas Producer Top 5 U.S. NGL Producer Pioneered Marcellus Shale in 2004 Pennsylvania Approximately One-Half Million Net Acres in Southwest Appalachia Leader in NGL Exports & 1st U.S.…
  3. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 3
    Range At a Glance Strong Emphasis on Capital Efficiency Peer-leading well costs + Shallow base decline = Low maintenance capital requirements Low maintenance capital requirements support free cash flow through the cycles Cost structure…
  4. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 4
    2019: A Focus on Performance Continued to Reduce Absolute Debt Executed 785 Million in Asset Sales Delivered on 2019 Production Target While Spending Under Budget for Second Consecutive Year Most Capital Efficient Operator in…
  5. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 5
    2020 Plans and Financial Positioning All-In Capital Budget of 520 Million Production Expected to Be Maintained at 2.3 Bcfe per day Improve Capital Efficiency Through Continued Well Cost Reductions Year-End 2020 In-Process Well…
  6. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 6
    Unmatched Position in Southwest Appalachia Range acreage outlined in green Significant Marcellus Inventory 470,000 net acres in Southwest Pennsylvania 3,300 Undrilled Marcellus Wells(a) 2,700 liquids rich well inventory 600 dry gas…
  7. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 7
    Multi-Decade Inventory of Capital Efficient Wells = Existing Pad Southwest Pennsylvania Range Has Delineated Its Acreage Position in Southwest Appalachia Over the past ten years, Range has drilled across its SW Appalachian position…
  8. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 8
    Value of Year-End 2019 Proved Reserves Included in SEC Reserves By rule, only 5 years of development activity Proved Developed Proved Developed reserves of 9.9 Tcfe 9.9 Tcfe Proved Undeveloped (PUD) reserves of 8.3 Tcfe Proved…
  9. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 9
    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 YE19 20 2019 SEC PV10 of 7.6 billion 18 16 Total Proved…
  10. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 10
    Peer-Leading Capital Efficiency Well Costs per Lateral Foot 2020 Decline Rate 1,200 40% 35% 1,000 30% 800 25% 600 20% 15% 400 10% 200 5% 0 0% RRC Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 RRC Peer 2 Peer 1 Peer 4 Peer 3 Peer…
  11. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 11
    Low Maintenance Capital Requirement Starting production 1st year recoveries(a) for SW PA wells: assumed 2.3 Bcfe/d Super Rich = 2.83 Bcfe gross (2.25 Bcfe net) Wet = 3.66 Bcfe gross (2.91 Bcfe net) Dry = 4.34 Bcf gross (3.45 Bcf…
  12. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 12
    Maintenance Capital Drives Free Cash Flow Ability 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 maximize returns,…
  13. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 13
    Considerable Progress in Reducing Unit Costs Cash G&A Cash G&A per mcfe declined 13% in 2019 0.20 versus 2018, with continued improvement 0.19 expected in 2020 0.18 Headcount reduced by 18% in 2019 Cost per Mcfe 0.17…
  14. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 14
    Unit Cost Improvement Expected to Continue 2.00 Startup of ME2 Capacity Enhances 1.90 Margins, but Transport Now Accounted for as an Expense Versus Net Price in 2019 (see slide 16) 1.80 1.70 Cost per Mcfe 1.60 1.50…
  15. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 15
    Strong NGL Realizations Driven by Exports Differentiated NGL Sales Arrangements Ranges Ability to Export Provides Price Diversity Range exports a larger portion of propane and Ethane Price Diversity Propane & Butane butane than any…
  16. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 16
    Capital Discipline Strengthens Financial Position Ranges Balance Sheet Continues to Improve Through Disciplined Spending & Strategic Initiatives 4,200 4,000 Total Debt Reduced by 23% 3,800 in Just Two Years, While 3,600 Additional…
  17. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 17
    Leading in Environmental Practices Range is actively Ranked second Ranges water sharing working to achieve zero among top program is recycling net emissions across producers on water 153% of its own and its operations management…
  18. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 18
    Positioned Well for Low Commodity Prices 8,000 Self-Funded Business Model 7.6 Billion Flexible capital program as firm transportation commitments are met with current production 7,000 Shallow base decline supports low…
  19. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 19
    Appendix 20
  20. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 20
    D&C Capex per Mcfe/d Reflects Relative Efficiency 2018 Quarterly Summary 1Q18 2Q18 3Q18 4Q18 192 177 180 173 165 154 156 159 152 151 139 137 130 124 118 117 113 104 108 97 101 93 84 82 84 74 61 41 2019 Quarterly…
  21. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 21
    Operational Flexibility Given Commitments Have Been Met 2,000,000 Range Is Producing 10% in Excess of Firm Transport Commitments 1,800,000 Mmbtu per day (Gross) 1,600,000 1,400,000 1,200,000 1,000,000 800,000…
  22. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 22
    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…
  23. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 23
    Significant Utica Resource 400,000 net acres in SW PA prospective for Utica Range has drilled three Utica wells Ranges third well appears to be one of the best dry gas Utica wells in the basin Continued improvement in well…
  24. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 24
    Southwest Appalachia Marcellus Modeling Data Super-Rich Area Wet Area Dry Area 110,000 Net Acres 240,000 Net Acres 120,000 Net Acres EUR / 1,000 ft. = 2.60 EUR / 1,000 ft. = 2.96 EUR / 1,000 ft. = 2.52 Bcfe Bcfe Bcfe D&C Cost /…
  25. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 25
    Natural Gas & NGL Macro Outlook 26
  26. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 26
    Natural Gas Demand Increases Through 2025 U.S. Gas Demand Outlook (Bcf/d) 2020-25 Demand Outlook R+C Other 25 Industrial Electric Power Total demand growth of +20 Bcf/d through 2025 Mexico Exports LNG Exports from LNG and Mexican…
  27. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 27
    Natural Gas 35% of the U.S. Generation Mix 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) 35 and renewables grew 5.3…
  28. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 28
    LNG Growth Expected to Continue 22 Port Arthur 20 FERC Approved and/or 70% long-term offtake Magnolia LNG 18 signed. Potential Next Freeport T4 16 Wave Projects. Cameron T4-T5 14 Under Construction Golden Pass T1-T3 or…
  29. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 29
    Natural Gas Base Decline & Capital Discipline U.S. Natural Gas Base Decline Rate Base Declines Offset Current Activity Average U.S. decline rate of 26% equates to 27 Bcf/d of new gas required each year to simply hold production flat…
  30. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 30
    L48 Dry Gas Production Growth Slowing U.S. L48 Pipeline Flows (Bcf/d) 98 96 U.S. Natural Gas Production Has 94 Declined 5% From 2019 Highs 92 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 2016…
  31. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 31
    Shale Efficiency Gains Are Slowing Oil Basins 6-Month Daily Oil Production per 1,000 Lateral Ft. 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…
  32. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 32
    Higher Prices Required to Meet Demand Growth U.S. Natural Gas Supply & Demand Waterfall (Bcf/d) 112 110 108 106 104 102 100 98 13-14 96 Bcf/d 94 92 90 88 86 2019 RC, Industrial Electric Mexico LNG 2025 Associated…
  33. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 33
    NGL Macro Outlook NGL Demand Growth 2017-2040 Change in Global Oil Product Demand by Scenario IEA forecasts LPG (propane and butane) and ethane to be the fastest growing global oil products over medium and long term Indian LPG import…
  34. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 34
    LPG Demand Absorbs Growing U.S. Exports Global LPG Supply & Demand Waterfall (MBL/D) 11,200 11,000 10,800 10,600 10,400 10,200 1.2 MMBPD 10,000 9,800 9,600 9,400 9,200 2018 Demand ResCom + Industry PDH Ethylene 2023 Demand…
  35. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 35
    Financial Detail 36
  36. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 36
    2020 Annual Guidance Full-Year 2020 Production (Bcfe per day) 2.3 Capital Expenditures Drilling & Completion 490 Million Land & Other 30 Million Cash Expense Guidance Direct Operating Expense per mcfe 0.14 - 0.16 TGP&C Expense…
  37. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 37
    Well-Structured, Resilient Balance Sheet 4+ billion max conforming borrowing base Debt / Proved Developed Reserves 3B elected borrowing base, 2.4B 0.90 Net Debt/Proved Developed Reserves (/mcfe) 0.80 committed 0.70 Simple…
  38. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 38
    Hedging Status As of 12/31/19 Time Period Volumes Hedged Average Hedge Prices 1Q20 Swaps 1,007,253 2.68 2Q20 Swaps 1,010,000 2.62 Natural Gas1 3Q20 Swaps 1,010,000 2.62 (Henry Hub) /Mmbtu 4Q20 Swaps 976,848 2.63 FY21 Swaps…
  39. Scotia Howard Weil 2020 Energy Conference – Range Resources Corp – slide 39
    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 John Durham, Senior Financial…

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