Range Who We Are Top 10 U.S. Natural Gas Producer Top 5 U.S. NGL Producer & Leader in NGL Exports Pioneered Marcellus Shale in 2004 Pennsylvania Lowest Corporate Breakeven Price in Southwest Appalachia Multi-Decade Inventory…
Range At a Glance Focus on Capital Efficiency Peer-leading well costs and base decline rate drive low maintenance capital requirements Low maintenance capital requirements support free cash flow through the cycles Cost structure…
Delivering on Strategic Objectives Debt Reduction through Free Cash Flow and Asset Sales Executed Over 1.35 Billion in Asset Sales Since Second Half 2018 Delivering on Production Targets While Spending Under Budget for Three…
2020 Plans and Financial Positioning All-In Capital Budget Reduced to 415 Million or Less Absolute Debt Expected to Be Reduced for Third Consecutive Year Improve Capital Efficiency Through Well Cost Reductions Annual Production…
Well Cost Reductions Enhance Capital Efficiency Track Record of Delivering on Production Targets While Spending Below Budget 1,000 Annual Capital Expenditures ( million) 900 2018: 31 million under budget Annual Capital…
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 has declined 20% in 0.20 2020 YTD versus 2018 0.19 Headcount reduced by 33% since 2018 0.18 following asset sales and workforce Cost per Mcfe 0.17…
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 1H19 2H19 1H20 2H20E 2024E GP&T Cash G&A LOE Production Taxes ( Scenario ) Maintenance Gathering,…
Lowest Corporate Breakeven in SW Appalachia Best-in-Class Sustaining Capital Requirements Lowest well costs and base decline rate in Appalachia drive lowest maintenance capital requirements per mcfe Breakeven NYMEX Natural Gas Price…
Unmatched Position in Southwest Appalachia Range acreage outlined in green Significant Marcellus Inventory(a) 470,000 net acres in Southwest Pennsylvania 3,300 Undrilled Marcellus Wells 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 Since pioneering the Marcellus in 2004, Range has drilled across its SW…
Range to Benefit as Peers Exhaust Core Inventory 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…
Natural Gas Macro Significantly Improving Natural Gas Supply Has Declined Materially Significant U.S. Natural Gas Supply Decline U.S. natural gas supply has declined 6% from its 98 November 2019 high 96 94 EIA forecasts 7 Bcf/d of…
NGL Macro Benefits from Lower Oil Supply NGL Supply Expected to Decline U.S. C3+ Supply Expected to Decline Reduced oil and gas drilling and completion EIA U.S. C3+ Field Production (MMBL/D) activity drove 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 percentage of propane Ethane Price Diversity Propane & Butane and butane…
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 U.S. Upstream CO2 Emissions Intensity Commitment to Clean & Efficient Operations Bakken Bakken 80% reduction in GHG emissions intensity since 2011 Diversified Permian Class-leading GHG emissions…
Self-Funded Business Model 8,000 Positioned Well for Commodity Cycles Flexible capital program as firm transportation 7,000 commitments are met with current production Shallow base decline supports low maintenance capital…
Appendix
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 6% From 2019 Highs, 98 Despite Return of Shut-In Production and DUC drawdowns. Future Supply Expected to Remain Low Due to Reduced Operator…
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 Full-Year 2020 Guidance Production per Day 2.24 Bcfe Capital Expenditures Drilling & Completion 385 Million Land & Other 30 Million Cash Expense Guidance Direct Operating Expense per mcfe 0.11 - 0.13 TGP&C…
Well-Structured, Resilient Balance Sheet 3 billion elected borrowing base reaffirmed Debt / Proved Developed Reserves in September 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 9/30/20 Time Period Daily Volumes Hedged Average Hedge Prices October 2020 Collar 20,000 2.00 x 2.50 4Q 2020 3-Way Collar 79,891 2.23 / 2.58 x 3.19 Natural Gas1 4Q 2020 Swaps 1,133,587 2.63…
NGL Hedges As of 9/30/20 Time Period Daily Volumes Hedged Average Hedge Prices C3 Propane 4Q 2020 Swaps 2,022 bbls 0.514/gal nC4 Butane 4Q 2020 Swaps 663 bbls 0.602/gal C5 Natural Gasoline 4Q 2020 Swaps 1,326 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…
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