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February 2021 Corporate Presentation – Range Resources Corp

Range Resources Corp · Feb 23, 2021 · 41 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. February 2021 Corporate Presentation – Range Resources Corp – slide 1
    Company Presentation February 23, 2021
  2. February 2021 Corporate Presentation – Range Resources Corp – slide 2
    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 Breakeven Price Among Southwest Appalachia E&Ps Multi-Decade Inventory of…
  3. February 2021 Corporate Presentation – Range Resources Corp – slide 3
    Range At a Glance Focus on Free Cash Flow Peer-leading well costs and base decline rate drive low sustaining capital requirements Cost structure improvements and marketing strategies have reduced breakeven price Low sustaining…
  4. February 2021 Corporate Presentation – Range Resources Corp – slide 4
    Delivering on Strategic Objectives Most Capital Efficient Operator in Appalachia(a) 2018-2020 D&C Capex of 280 per Mcfepd versus peer average of 387 per Mcfepd Delivered on operational plans while spending under budget for three…
  5. February 2021 Corporate Presentation – Range Resources Corp – slide 5
    2021 Outlook All-In Capital Budget of 425 Million or Less Production to be maintained at 2.15 Bcfe per day 2021 activity sets up capital efficient 2022 development plan Absolute Debt Expected to Be Reduced for Fourth Consecutive Year…
  6. February 2021 Corporate Presentation – Range Resources Corp – slide 6
    Peer-Leading Capital Efficiency Well Costs per Lateral Foot Decline Rate 1,000 35% 900 30% 800 700 25% 600 20% 500 400 15% 300 10% 200 5% 100 0 0% RRC Peer 1 Peer 3 Peer 5 Peer 2 Peer 4 RRC Peer 1 Peer 4 Peer 2 Peer 3 Peer…
  7. February 2021 Corporate Presentation – Range Resources Corp – slide 7
    Low Maintenance Capital Requirement Appalachia production: 1st year recoveries(a) for SW PA wells: 2.15 Bcfe/d Super Rich = 2.93 Bcfe gross (2.33 Bcfe net) Wet = 3.77 Bcfe gross (3.00 Bcfe net) Dry = 4.17 Bcf gross (3.31 Bcf net)…
  8. February 2021 Corporate Presentation – Range Resources Corp – slide 8
    Well Cost Reductions Enhance Capital Efficiency Efficiency Gains Have Driven Ranges Best-In-Class Well Costs Even Lower 750 725 Sustainable Cost Reductions: All-In Well Costs per Lateral Foot 700 Extending average lateral length…
  9. February 2021 Corporate Presentation – Range Resources Corp – slide 9
    Considerable Progress in Reducing Unit Costs Gathering, Processing & Transportation Gathering, Processing & Transportation Declined 0.18 per mcfe, or 12%, from late 2018 to 2020 through more efficient utilization of infrastructure…
  10. February 2021 Corporate Presentation – Range Resources Corp – slide 10
    Unit Cost Improvement Expected to Continue GP&T Contracts Structured to Decline Over Time Annual GP&T Improvement Versus 2021(a) Gathering 0 Certain contracts in Appalachia are -50 structured such that Ranges fees -100 decline…
  11. February 2021 Corporate Presentation – Range Resources Corp – slide 11
    Ranges Strong NGL Realizations Driven by Exports Differentiated NGL Sales Arrangements Ability to Export Provides Price Diversification Range exports a larger percentage of propane and Ethane Diversification Propane & Butane butane…
  12. February 2021 Corporate Presentation – Range Resources Corp – slide 12
    Lowest Breakeven Among SW Appalachia E&Ps 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…
  13. February 2021 Corporate Presentation – Range Resources Corp – slide 13
    Clear Path to Significant Debt Reduction Improving Macro Drives EBITDAX Growth 2021 Outlook (3 Natural Gas / 58 WTI) 1,400 Free cash flow drives fourth consecutive year of absolute 1,200 debt reduction 1,000 EBITDAX (…
  14. February 2021 Corporate Presentation – Range Resources Corp – slide 14
    Unmatched Position in Southwest Appalachia Significant Marcellus Inventory(a) Range acreage outlined in green 460,000 Net Acres in Southwest Pennsylvania 3,100 Undrilled Marcellus Wells 2,600 liquids rich well inventory 500 dry gas…
  15. February 2021 Corporate Presentation – Range Resources Corp – slide 15
    Value of Year-End 2020 Proved Reserves Included in SEC Reserves Proved Developed By rule, only 5 years of development activity 9.8 Tcfe Proved Developed reserves of 9.8 Tcfe Proved Undeveloped Proved Undeveloped (PUD) reserves of 7.4…
  16. February 2021 Corporate Presentation – Range Resources Corp – slide 16
    Range to Benefit as Peers Exhaust Core Inventory Declining Recoveries per Foot in Most Shale Basins Demonstrate Core Exhaustion Productivity Declining in Appalachia & Montney Declining well productivity is evident in both shale 2.2…
  17. February 2021 Corporate Presentation – Range Resources Corp – slide 17
    Natural Gas Macro Has Significantly Improved Natural Gas Supply Has Declined Materially Supply Expected to Flatten Despite Rising Prices EIA forecasts supply to decline 1.4 Bcf/d exit-to-exit 100 in 2021, following estimated 5.2 Bcf/d…
  18. February 2021 Corporate Presentation – Range Resources Corp – slide 18
    NGL Prices Rising As Macro Improves Supply Forecasted to Be Stable U.S. C3+ Supply Expected to Flatten Reduced activity in 2020 and industry focus on capital EIA U.S. C3+ Field Production (MMBL/D) discipline reduces potential for…
  19. February 2021 Corporate Presentation – Range Resources Corp – slide 19
    Natural Gas Plays Critical Role in Energy Transition Emissions Reductions Driven by Natural Gas U.S. Emissions Reductions Driven by Power Gen. Between 2005 and 2019, total U.S. electricity U.S. CO2 Emissions (MMT) generation increased…
  20. February 2021 Corporate Presentation – Range Resources Corp – slide 20
    Leading in Environmental Practices U.S. Upstream CO2 Emissions Intensity Commitment to Clean & Efficient Operations Diversified 80% reduction in GHG emissions intensity since 2011 Diversified Bakken Class-leading GHG emissions…
  21. February 2021 Corporate Presentation – Range Resources Corp – slide 21
    Governance & Social Responsibility Range Is Committed to Strong Governance and Social Responsibility. Range Views These Objectives as Core to Delivering Long-Term Value for Shareholders. Board Governance Social Responsibility…
  22. February 2021 Corporate Presentation – Range Resources Corp – slide 22
    Executive Compensation Framework Continued Improvements to Compensation Framework Are Essential to Aligning Incentives with Evolving Shareholder Interests & Long-Term Strategic Initiatives Long-Term Equity Incentive Plan Annual…
  23. February 2021 Corporate Presentation – Range Resources Corp – slide 23
    Appendix
  24. February 2021 Corporate Presentation – Range Resources Corp – slide 24
    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…
  25. February 2021 Corporate Presentation – Range Resources Corp – slide 25
    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…
  26. February 2021 Corporate Presentation – Range Resources Corp – slide 26
    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…
  27. February 2021 Corporate Presentation – Range Resources Corp – slide 27
    Southwest Appalachia Marcellus Modeling Data Super-Rich Area Wet Area Dry Area 110,000 Net Acres 240,000 Net Acres 110,000 Net Acres EUR / 1,000 ft. = 2.68 Bcfe EUR / 1,000 ft. = 3.05 Bcfe EUR / 1,000 ft. = 2.41 Bcfe D&C Cost /…
  28. February 2021 Corporate Presentation – Range Resources Corp – slide 28
    Macro Outlook Natural Gas & NGL
  29. February 2021 Corporate Presentation – Range Resources Corp – slide 29
    Natural Gas Demand Growth Outlook U.S. Gas Demand Growth Outlook (Bcf/d) 2021-25 Demand Outlook 20 18 Total demand growth of +18 Bcf/d through 2025 16 from LNG and Mexican exports, industrial and 14 electric power demand growth 12…
  30. February 2021 Corporate Presentation – Range Resources Corp – slide 30
    Natural Gas 38% of 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 2010-2019, while coal declined 17 Bcf/d(a) 35 and renewables grew 5.2 Bcf/d(a)…
  31. February 2021 Corporate Presentation – Range Resources Corp – slide 31
    Natural Gas Base Decline & Capital Discipline Base Declines Offset Current Activity U.S. Natural Gas Base Decline Rate Average U.S. decline rate of 26% equates to 27 Bcf/d of new gas required each year to simply hold production flat…
  32. February 2021 Corporate Presentation – Range Resources Corp – slide 32
    Lower 48 Dry Gas Production Has Declined Prior to Recent Weather-Related Supply Declines, U.S. Natural Gas Production Had Declined 5% From 2019 Highs, Despite Return of 98 Shut-In Production and DUC drawdowns in 2H2020. Future Supply…
  33. February 2021 Corporate Presentation – Range Resources Corp – slide 33
    Higher Prices Required to Meet Demand Growth U.S. Natural Gas Supply & Demand Waterfall (Bcf/d) 116 114 112 110 108 106 104 23 102 Bcf/d 100 98 96 94 92 90 88 86 2020 ResComm Industrial Electric Mexico LNG 2025…
  34. February 2021 Corporate Presentation – Range Resources Corp – slide 34
    NGL Macro Outlook NGL Demand Growth Change in Global Oil Product Demand by Scenario Other IEA forecasts LPG (propane and butane) and LPG & Ethane Naphtha Gasoline Kerosene Diesel Fuel Oil Products ethane to be the fastest growing…
  35. February 2021 Corporate Presentation – Range Resources Corp – slide 35
    LPG Demand Absorbs Growing U.S. Exports Global LPG Supply & Demand Waterfall (MBL/D) 11,600 11,400 11,200 11,000 10,800 10,600 1,088 10,400 MBPD 10,200 10,000 9,800 9,600 2020 Demand ResCom + Industry PDH Ethylene 2025…
  36. February 2021 Corporate Presentation – Range Resources Corp – slide 36
    Financial Detail
  37. February 2021 Corporate Presentation – Range Resources Corp – slide 37
    2021 Annual Guidance Full-Year 2021 Guidance Production per Day 2.15 Bcfe Capital Expenditures Drilling & Completion 400 Million Land & Other 25 Million Cash Expense Guidance Direct Operating Expense per mcfe 0.09 - 0.11 TGP&C…
  38. February 2021 Corporate Presentation – Range Resources Corp – slide 38
    Well-Structured, Resilient Balance Sheet Debt / Proved Developed Reserves 3 billion elected borrowing base reaffirmed in 0.60 September 2020 Net Debt/PD Reserves (/mcfe) 0.50 2.4 billion elected commitment 0.40 Ample cushion…
  39. February 2021 Corporate Presentation – Range Resources Corp – slide 39
    Natural Gas & Oil/Condensate Hedges As of 1/31/21 Time Period Daily Volumes Hedged Average Hedge Prices 1Q 2021 Collars 300,000 2.50 x 3.00 Apr-Oct21 Collars 360,000 2.52 x 3.00 Natural Gas1 1Q 2021 3-Way Collars 279,333 2.03 /…
  40. February 2021 Corporate Presentation – Range Resources Corp – slide 40
    NGL Hedges As of 1/31/21 Time Period Barrels per Day Hedged Average Hedge Prices 1H 2021 Collars 5,000 0.50 x 0.60/gal C3 Propane 1Q 2021 Swaps 12,000 0.556/gal 2Q 2021 Swaps 3,659 0.578/gal 3Q 2021 Swaps 1,000 0.605/gal 1Q…
  41. February 2021 Corporate Presentation – Range Resources Corp – slide 41
    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, Lead Financial…

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