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July 2021 Company Presentation – Range Resources Corp

Range Resources Corp · Jul 1, 2021 · 43 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. July 2021 Company Presentation – Range Resources Corp – slide 1
    Company Presentation July 26, 2021
  2. July 2021 Company Presentation – Range Resources Corp – slide 2
    Range Who We Are Top 10 U.S. Producer of Natural Gas & NGLs Top NGL Exporter Among Independent E&Ps Pioneered Marcellus Shale in 2004 Pennsylvania Most Capital Efficient Operator in Appalachia Longest Core Inventory Life in…
  3. July 2021 Company 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. July 2021 Company 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 385 per Mcfepd Delivered on operational plans while spending under budget for three…
  5. July 2021 Company 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. July 2021 Company 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. July 2021 Company 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. July 2021 Company 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. July 2021 Company Presentation – Range Resources Corp – slide 9
    Considerable Progress in Reducing Unit Costs Direct Operating Expense (LOE) Direct Operating Expense Declined 0.06 per mcfe, or 35%, from 2018 to 2020 0.18 due to Ranges water management and recycling program, as well as divestment…
  10. July 2021 Company Presentation – Range Resources Corp – slide 10
    Unit Cost Improvement to Continue Gathering & Transport Contracts Structured to Decline Gathering Costs to Decline Annual GP&T Improvement Versus 2021 Certain contracts in Appalachia are 0 structured such that Ranges fees decline…
  11. July 2021 Company Presentation – Range Resources Corp – slide 11
    NGL Margins & Price Uplift Expanding NGL Margins Expanding with Rising Prices NGL Margins Reach Multi-Year High 30 Ranges NGL realizations increased over 25 11.50/bbl in 1H 2021 vs. 2020 NGL margins increased over 10/bbl in 1H 20…
  12. July 2021 Company Presentation – Range Resources Corp – slide 12
    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…
  13. July 2021 Company Presentation – Range Resources Corp – slide 13
    Lowest Breakeven Among SW Appalachia E&Ps Liquids Price Uplift Improves Breakeven 3.25 3.25 Best-in-Class Sustaining Capital Requirements 2.75 2.75 Lowest well costs and base decline rate in Appalachia 2.25 2.25 drive lowest…
  14. July 2021 Company Presentation – Range Resources Corp – slide 14
    Rapid De-Leveraging at Strip Prices Free Cash Flow Strengthens Balance Sheet 2021 Outlook(a) (3.25 NG / 64 WTI / 27.50 NGL) 3,500 3.5x Free cash flow drives fourth consecutive year of absolute 3,000 3.0x debt reduction Net Debt…
  15. July 2021 Company Presentation – Range Resources Corp – slide 15
    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…
  16. July 2021 Company Presentation – Range Resources Corp – slide 16
    Value of Year-End 2020 Proved Reserves Included in SEC Reserves By rule, only 5 years of development activity Proved Developed Proved Developed reserves of 9.8 Tcfe 9.8 Tcfe Proved Undeveloped (PUD) reserves of 7.4 Tcfe Proved…
  17. July 2021 Company Presentation – Range Resources Corp – slide 17
    Range to Benefit as Peers Exhaust Core Inventory Declining Recoveries per Foot in Most Shale Basins Demonstrate Core Exhaustion Peer Productivity Declining in Appalachia & Montney Declining well productivity is evident in both shale 2.2…
  18. July 2021 Company Presentation – Range Resources Corp – slide 18
    Natural Gas Macro Has Significantly Improved Natural Gas Supply Has Been Stable Supply Growth Minimal Despite Rising Prices EIA forecasts modest supply growth of 1.4 Bcf/d exit- 100 to-exit in 2021, following 4.5 Bcf/d decline in…
  19. July 2021 Company Presentation – Range Resources Corp – slide 19
    NGL Prices Rising As Macro Improves Supply Forecasted to Be Stable U.S. C3+ Supply Expected to Flatten 3.4 Reduced activity in 2020 and industry focus on capital EIA U.S. C3+ Field Production (MMBL/D) discipline reduces potential…
  20. July 2021 Company Presentation – Range Resources Corp – slide 20
    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…
  21. July 2021 Company Presentation – Range Resources Corp – slide 21
    Leading in Environmental Practices Continued Success in Reducing Emissions Intensity Commitment to Clean & Efficient Operations 0.80 Over 80% reduction in GHG emissions intensity since 2011 0.70 GHG Intensity (MT CO2e/Mmcfe)…
  22. July 2021 Company Presentation – Range Resources Corp – slide 22
    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…
  23. July 2021 Company Presentation – Range Resources Corp – slide 23
    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…
  24. July 2021 Company Presentation – Range Resources Corp – slide 24
    Appendix
  25. July 2021 Company Presentation – Range Resources Corp – slide 25
    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…
  26. July 2021 Company Presentation – Range Resources Corp – slide 26
    Appalachia Assets Stacked Pay 1.5 million net effective acres(a) in PA leads to decades of drilling inventory Activity led by Core Marcellus development in Southwest PA Over 1,200 producing Marcellus wells demonstrate high…
  27. July 2021 Company Presentation – Range Resources Corp – slide 27
    NGL Price Calculation Example % of RRC Barrel Mont Belvieu (/gal) 1Q 2021E 2Q 2021E 3Q 2021E 4Q 2021E Avg. 2021E 53% Ethane 0.24 0.26 0.31 0.32 0.28 27% Propane 0.89 0.87 1.05 1.04 0.96 7% Normal Butane 0.94 0.97 1.20 1.17 1.07…
  28. July 2021 Company Presentation – Range Resources Corp – slide 28
    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 /…
  29. July 2021 Company Presentation – Range Resources Corp – slide 29
    Macro Outlook Natural Gas & NGL
  30. July 2021 Company Presentation – Range Resources Corp – slide 30
    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…
  31. July 2021 Company Presentation – Range Resources Corp – slide 31
    Natural Gas 40% of U.S. Generation Mix U.S. Power Generation by Source(a) Growing Market Share in Power Gen. 40 48% Gas power demand grew by 12 Bcf/d from 45% 35 44% 2010-2020, while coal declined 20 Bcf/d(a) 42% 38% 40% 39% 39%…
  32. July 2021 Company Presentation – Range Resources Corp – slide 32
    Lower 48 Dry Gas Production Has Declined U.S. Natural Gas Production Has Declined 7% From 2019 Highs, Despite Return of Shut-In Production and DUC drawdowns in 2020 and 2021. 98 Future Supply Expected to Remain Low Due to Reduced…
  33. July 2021 Company Presentation – Range Resources Corp – slide 33
    Natural Gas Supply Less Net Exports U.S. Natural Gas Supply Has Returned to 2018 92 Levels, When Accounting for Significant Growth in U.S. Exports in Recent Years. U.S L48 Gas Production - Net Exports (Bcf/d) 90 88 86 84 82…
  34. July 2021 Company Presentation – Range Resources Corp – slide 34
    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…
  35. July 2021 Company Presentation – Range Resources Corp – slide 35
    NGL Macro Outlook NGL Demand Growth Change in Global Oil Product Demand by Scenario IEA forecasts LPG (propane and butane) and LPG & Ethane Naphtha Gasoline Kerosene Diesel Fuel Oil Other Products ethane to be the fastest growing…
  36. July 2021 Company Presentation – Range Resources Corp – slide 36
    Propane Prices Moving Back to Pre-Shale Norms Balanced Market Average (1993-2011): 71% 120% 100% Propane / WTI Crude Price Ratio Expected Return to 80% Balanced Market 60% 40% 20% Shale Supply Growth & Logistical…
  37. July 2021 Company Presentation – Range Resources Corp – slide 37
    LPG Demand Absorbs Growing U.S. Exports Global LPG Supply & Demand Waterfall (MBL/D) 11,800 11,600 11,400 11,200 11,000 10,800 10,600 850 MBPD 10,400 10,200 10,000 9,800 9,600 2020 Demand ResCom + Industry PDH Ethylene 2025…
  38. July 2021 Company Presentation – Range Resources Corp – slide 38
    Financial Detail
  39. July 2021 Company Presentation – Range Resources Corp – slide 39
    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…
  40. July 2021 Company Presentation – Range Resources Corp – slide 40
    Well-Structured, Resilient Balance Sheet Debt / Proved Developed Reserves 3 billion elected borrowing base reaffirmed in March 0.60 2021 Net Debt/PD Reserves (/mcfe) 0.50 2.4 billion elected commitment 0.40 Ample cushion on…
  41. July 2021 Company Presentation – Range Resources Corp – slide 41
    Natural Gas & Oil/Condensate Hedges As of 7/16/21 Time Period Daily Volumes Hedged Average Hedge Prices 3Q 2021 Swaps 566,848 2.77 4Q 2021 Swaps 583,152 2.79 3Q 2021 3-Way Collars 313,152 2.16 / 2.48 x 2.80 4Q 2021 3-Way Collars…
  42. July 2021 Company Presentation – Range Resources Corp – slide 42
    NGL Hedges As of 7/16/21 Time Period Barrels per Day Hedged Average Hedge Prices 3Q 2021 Collars 5,000 0.95 x 1.05/gal C3 Propane 3Q 2021 Swaps 10,000 0.88/gal 4Q 2021 Swaps 2,000 1.00/gal 3Q 2021 Collars 3,000 0.90 x…
  43. July 2021 Company Presentation – Range Resources Corp – slide 43
    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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