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…
Delivering on Strategic Objectives Continued to Reduce Absolute Debt Executed 1.1 Billion in Asset Sales Since Second Half 2018 Delivered on Production Targets While Spending Under Budget in Consecutive Years Most Capital…
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 Well Cost Reductions 2020 Activity Sets Up Capital Efficient 2021…
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…
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 with continued improvement expected in 2020 0.19 Headcount reduced by 18% in 2019 following 0.18 asset sales and workforce…
Unit Cost Improvement Expected to Continue 2.00 1.90 1.80 Cost per Mcfe 1.70 1.60 1.50 1.40 1.30 1.20 4Q18 1Q19 2Q19 3Q19 4Q19 2020 2024E GP&T Cash G&A LOE Production Taxes Guidance ( Zero Growth Scenario )…
Natural Gas Macro Significantly Improving Natural Gas Supply Declining Rapidly U.S. Natural Gas Supply Has Collapsed U.S. natural gas supply has declined over 10% 98 96 from its November 2019 high 94 EIA now forecasts 8 Bcf/d of…
NGL Macro Benefits from Lower Oil Supply NGL Supply Expected to Decline U.S. NGL Supply Forecast to Decline Reduced oil and gas drilling and completion EIA U.S. C3+ Field Production (MMBL/D) activity drives falling NGL supply in 2020…
Propane Fundamentals Demonstrate Improving NGL Macro U.S. Propane Supply Is Declining Rapidly Including Declines From Gassy Basins US Propane/Propylene Supply PADD 1 Propane Supply 350 2,400 300 2,200 250 MBPD MBPD…
Ranges 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…
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 Flexible capital program as firm transportation commitments are met with current production 7,000 Shallow base decline supports low maintenance capital…
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…
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…
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 in Washington County Ranges third well appears to be one of the best dry gas Utica wells in the basin Continued…
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 /…
Macro Outlook Natural Gas & NGL 29
Natural Gas Demand Growth Outlook 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 exports,…
Natural Gas 38% of U.S. Generation Mix U.S. Power Generation by Source(a) Growing Market Share in Power Gen. Gas power demand grew by 11 Bcf/d from 40 2010-2019, while coal declined 17 Bcf/d(a) 35 and renewables grew 5.2 Bcf/d(a)…
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 Is Declining 98 U.S. Natural Gas Production Has Declined Over 10% From 96 2019 Highs, Helped by Shut-Ins. Future Supply Expected to Remain Low Due to Reduced Operator Activity. 94 92 U.S. L48 Pipeline Flows…
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…
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…
2020 Annual Guidance Full-Year 2020 Production per Day 2.3 Bcfe 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 per…
Well-Structured, Resilient Balance Sheet 3 billion elected borrowing base reaffirmed Debt / Proved Developed Reserves in March 2020 0.90 Net Debt/Proved Developed Reserves (/mcfe) 0.80 2.4 billion elected commitment 0.70 Ample…
Natural Gas & Oil/Condensate Hedges As of 3/31/20 Time Period Volumes Hedged Average Hedge Prices Apr-Oct 2020 3-Way Collar 20,000 1.75 / 2.00 x 2.50 2Q 2020 Swaps 1,200,110 2.55 Natural Gas1 3Q 2020 Swaps 1,180,000 2.57 (Henry…
NGL Hedges As of 3/31/20 Time Period Volumes Hedged Average Hedge Prices C3 Propane1 2Q 2020 Swaps 8,243 bbls 0.563/gal 2Q 2020 Swaps 3,330 bbls 0.574/gal nC4 Butane2 3Q 2020 Swaps 2,500 bbls 0.570/gal iC4 Iso-Butane 2Q 2020…
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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