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 Over 1.35 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 Appalachia Production Expected to Average 2.15 Bcfe per day Improve Capital Efficiency Through Well Cost Reductions 2020 Activity Sets Up Capital Efficient…
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…
Growing Evidence of U.S. Shale Core Exhaustion Declining Recoveries per Foot in Most Shale Peer 1 Southwest PA Normalized Recoveries Basins Demonstrate Core Exhaustion 1,800 Declining well productivity is evident in both shale 1,600…
Low Maintenance Capital Requirement Appalachia production: 1st year recoveries(a) for SW PA wells: 2.2 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 net)…
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 30% in 2Q20 0.20 versus 2018 0.19 Headcount reduced by 33% since 2018 0.18 following asset sales and workforce Cost per Mcfe 0.17 assessment…
Unit Cost Improvement Expected to Continue 2.00 1.90 1.80 1.70 Cost per Mcfe 1.60 1.50 1.40 1.30 1.20 1.10 4Q18 1Q19 2Q19 3Q19 4Q19 Prior 2020 2H20E 2024E GP&T Cash G&A LOE Guidance Production Taxes ( Zero…
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 from its November 2019 high 96 94 EIA now forecasts 10 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…
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 Over 25% Since 3,800 Early 2018, While 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 Self-Funded Business Model 8,000 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…
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…
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 Over 1,000 producing Marcellus wells…
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
Natural Gas Demand Growth Outlook U.S. Gas Demand Growth Outlook (Bcf/d) 2020-25 Demand Outlook 25 R+C Other Industrial Electric Power Total demand growth of +17 Bcf/d through 2025 Mexico Exports LNG Exports from LNG and Mexican…
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 Has Declined Significantly U.S. Natural Gas Production Has Declined Over 10% From 2019 98 Highs, Despite Return of Shut-In Production. Future Supply Expected to Remain Low Due to Reduced Operator Activity. 96…
Higher Prices Required to Meet Demand Growth U.S. Natural Gas Supply & Demand Waterfall (Bcf/d) 108 106 104 102 100 98 11 96 Bcf/d 94 92 90 88 2019 ResComm Industrial Electric Mexico LNG 2025 Associated Haynesville Call on…
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 Prior Full-Year 2020 Updated Full-Year 2020 Guidance Guidance (a) Production per Day 2.3 Bcfe 2.25 Bcfe Capital Expenditures Drilling & Completion 400 Million 400 Million Land & Other 30 Million 30 Million…
Well-Structured, Resilient Balance Sheet 3 billion elected borrowing base reaffirmed Debt / Proved Developed Reserves in March 2020 0.80 Net Debt/Proved Developed Reserves (/mcfe) 0.70 2.4 billion elected commitment 0.60…
Natural Gas & Oil/Condensate Hedges As of 6/30/20 Time Period Volumes Hedged Average Hedge Prices Jul-Oct 2020 3-Way Collar 60,000 1.75 / 2.00 x 2.53 3Q 2020 Swaps 1,206,522 2.58 Natural Gas1 4Q 2020 Swaps 1,087,147 2.60 (Henry…
NGL Hedges As of 6/30/20 Time Period Volumes Hedged Average Hedge Prices C3 Propane 3Q 2020 Swaps 3,022 bbls 0.470/gal nC4 Butane1 3Q 2020 Swaps 2,500 bbls 0.570/gal C5 Natural Gasoline 3Q 2020 Swaps 1,674 bbls…
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…
Loading...
