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.…
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…
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…
2020 Plans and Financial Positioning All-In Capital Budget of 430 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…
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…
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…
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…
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…
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…
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,…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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 /…
Natural Gas & NGL Macro Outlook 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…
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…
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…
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…
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…
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…
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…
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…
2020 Annual Guidance Full-Year 2020 Production (Bcfe per day) 2.3 Capital Expenditures Drilling & Completion 400 Million Land & Other 30 Million Cash Expense Guidance Direct Operating Expense per mcfe 0.14 - 0.16 TGP&C Expense…
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…
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…
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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