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4Q 2021 Earnings Presentation – Range Resources Corp

Range Resources Corp · Feb 22, 2022 · 44 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. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 1
    Company Presentation February 22, 2022
  2. 4Q 2021 Earnings 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. 4Q 2021 Earnings 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 Competitive cost structure and marketing strategies support expanding cash margins Multi-decade core…
  4. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 4
    Delivering on Strategic Objectives Most Capital Efficient Operator in Appalachia(a) 2019-2021 Capital Expenditures per Mcfe of 0.64 versus peer average of 0.96 per Mcfe Delivered on operational plans while spending under budget for…
  5. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 5
    2022 Outlook All-In Capital Budget of 460 to 480 Million Production to be maintained at 2.12 to 2.16 Bcfe per day 2022 activity sets up capital efficient 2023 development plan Free Cash Flow to Drive Fifth Consecutive Year of Debt…
  6. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 6
    Peer-Leading Capital Efficiency Well Costs per Lateral Foot Decline Rate 1,200 35% 1,000 30% 25% 800 20% 600 15% 400 10% 200 5% 0 0% RRC Peer 4 Peer 1 Peer 2 Peer 3 RRC Peer 1 Peer 4 Peer 2 Peer 3 Capital Expenditures per…
  7. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 7
    Peer-Leading Free Cash Flow Margins 2022 Free Cash Flow per Mcfe(a) Free Cash Flow per Mcfe Demonstrates Peer- Leading All-In Margins 1.40 Low sustaining capital requirements increases free cash 1.20 flow available for other…
  8. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 8
    Well Cost Reductions Enhance Capital Efficiency Efficiency Gains in Recent Years Drive Ranges Best-In-Class Well Costs(a) 750 Sustainable D&C Efficiency Gains 700 Extending average lateral length All-In Well Costs per Lateral…
  9. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 9
    Considerable Progress in Reducing Unit Costs Direct Operating Expense (LOE) Direct Operating Expense Declined 0.08 per mcfe, or 44%, from 2018 to 2021 0.18 due to Ranges water management and recycling 0.16 program, as well as…
  10. 4Q 2021 Earnings 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. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 11
    Price Uplift & NGL Margins Expanding Liquids Price Uplift Drives Premium Realizations to NYMEX Liquids Production Driving 6.50 0.60 Premium Realizations 6.00 0.50 RRC Realization vs. NYMEX HH Ranges average 2021 realization…
  12. 4Q 2021 Earnings 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. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 13
    Significant Free Cash Flow Forecasted at Strip Cumulative Free Cash Flow Excess Free Cash Flow 2022 Outlook(a) (4.25 NG / 87 WTI / 35 NGL) 4,000 Provides Optionality 3,500 Free cash flow exceeds 1 billion at strip pricing 3,000…
  14. 4Q 2021 Earnings 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 3,000 Undrilled Marcellus Wells 2,550 liquids rich well inventory 450 dry gas…
  15. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 15
    Value of Year-End 2021 Proved Reserves PV-10 of 12.7 Billion, or 40 per Share Net of Debt, Assuming Included in SEC Reserves Year-End 2021 Strip Pricing By rule, only 5 years of development activity Proved Developed reserves of 10.4…
  16. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 16
    Natural Gas Macro Remains Strong Natural Gas Supply Remains at YE2019 Levels Supply Forecasted to Be Relatively Stable EIA forecasts supply to decline 0.3 Bcf/d exit-to-exit in 100 2022, following just 0.6 Bcf/d growth from 2019-21…
  17. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 17
    NGL Prices Have Risen With Improved Macro Significant Storage Deficit Demonstrates Rapid Decline in U.S. Propane Storage Levels Level of Under-Supply 105 U.S. Propane Storage (MMBL) Propane storage has declined from record highs in…
  18. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 18
    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 2020, total U.S. energy U.S. CO2 Emissions (MMT) emissions declined 24%,…
  19. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 19
    Leading in Environmental Practices Commitment to Clean & Efficient Operations Continued Success in Reducing Emissions Intensity Over 80% reduction in GHG emissions intensity since 0.80 2011 0.70 GHG Intensity (MT CO2e/Mmcfe)…
  20. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 20
    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…
  21. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 21
    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…
  22. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 22
    Appendix
  23. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 23
    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…
  24. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 24
    Southwest Pennsylvania 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 1,250 producing Marcellus wells demonstrate high…
  25. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 25
    Northeast Pennsylvania Marcellus = Existing Pad Northeast Pennsylvania Approximately 70,000 net acres prospective for Marcellus development 2021 Northeast PA production averaged over 70 Mmcf per day from over 150 producing wells…
  26. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 26
    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 /…
  27. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 27
    Low Maintenance Capital Requirement Appalachia production: 1st year recoveries(a) for SW PA wells: 2.14 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)…
  28. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 28
    NGL Price Calculation Example % of RRC Barrel Mont Belvieu (/gal) Avg. 2021 1Q 2022E 2Q 2022E 3Q 2022E 4Q 2022E Avg. 2022E Avg. 2023E 53% Ethane 0.31 0.37 0.35 0.34 0.34 0.35 0.28 27% Propane 1.04 1.22 1.17 1.12 1.12 1.16 0.96 7%…
  29. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 29
    Long-Term Free Cash Flow Example Range Has the Potential to Generate Significant, Durable Free Cash Flow Over Time. Diversified Production Mix Protects Cash Flow if the Price of One Commodity Declines. Annual Free Cash Flow (…
  30. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 30
    Macro Outlook Natural Gas & NGL
  31. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 31
    Natural Gas Demand Growth Outlook 2022-26 Demand Outlook U.S. Gas Demand Growth Outlook (Bcf/d) 20 Total demand growth of +19 Bcf/d through 2026 18 from LNG and Mexican exports, industrial and 16 electric power demand growth 14…
  32. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 32
    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%…
  33. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 33
    Lower 48 Dry Gas Production U.S. Natural Gas Production Has Declined 3% From Late 2021 Highs, Following Decline of Flush Winter Production and Return of Shut-In Volume. Future Supply Growth Expected to Remain Low Due to Reduced…
  34. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 34
    Natural Gas Supply Less Net Exports U.S. Natural Gas Supply Has Declined 7% From 2019 Highs, When Accounting for Significant Growth in U.S. Exports in Recent Years. 92 U.S. L48 Gas Production - Net Exports (Bcf/d) 90 88 86 84…
  35. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 35
    Demand Growth Requires Higher Long-Term Prices U.S. Natural Gas Supply & Demand Waterfall (Bcf/d) 116 114 112 110 108 106 104 15 102 Bcf/d 100 98 96 94 92 90 88 86 2021 ResComm Industrial Electric Mexico LNG 2026…
  36. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 36
    NGL Macro Outlook NGL Demand Growth Growing U.S. LPG Market Share with Rising Exports 4,500 50% IEA forecasts LPG (propane and butane) and 45% 4,000 ethane to be among the fastest growing global oil Waterborne LPG Trade (MBL/D)…
  37. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 37
    Propane Prices Moving Back to Pre-Shale Norms Balanced Market Average (1993-2011): 71% 120% 100% Propane / WTI Crude Price Ratio Expected Return to Balanced Market 80% 60% 40% 20% Shale Supply Growth & Logistical…
  38. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 38
    LPG Demand Absorbs Growing U.S. Exports Global LPG Supply & Demand Waterfall (MBL/D) 12,200 12,000 11,800 11,600 11,400 11,200 11,000 10,800 800 10,600 MBPD 10,400 10,200 10,000 9,800 9,600 2021 ResCom + Industry PDH…
  39. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 39
    Financial Detail
  40. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 40
    2022 Annual Guidance Full-Year 2022 Guidance Production per Day 2.12 - 2.16 Bcfe Capital Expenditures Drilling & Completion 425 - 445 Million Land & Other 35 Million Cash Expense Guidance Direct Operating Expense per mcfe 0.09 -…
  41. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 41
    Well-Structured, Resilient Balance Sheet 2.4 billion elected commitment provides ample Year-End 2022 Net Debt / EBITDAX(a) liquidity as Range has transitioned to generating 2.0x significant free cash flow at strip pricing…
  42. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 42
    Hedging Program Supports Free Cash Flow 2022 2023 Avg. Floor Avg. Ceiling Avg. Floor Avg. Ceiling Natural Gas 3.15 3.49 3.32 3.84 Oil 61.54 61.54 71.39 71.39 2022 Hedge Percentages 2023 Hedge Percentages 100% 100% 90% 90% 80%…
  43. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 43
    Favorable 2022 Hedge Position vs. Peers Natural Gas Hedge Summary vs. Peers(a) Effective NYMEX Realization vs. Peers(a) 100% 4.00 4.00 90% 3.80 3.80 Effective NYMEX Price ( per Mmbtu) 80% 3.60 3.60 2022 Natural Gas Hedged…
  44. 4Q 2021 Earnings Presentation – Range Resources Corp – slide 44
    Contact Information Range Resources Corporation 100 Throckmorton St., Suite 1200 Fort Worth, Texas 76102 Laith Sando, CPA Vice President Investor Relations (817) 869-4267 lsandorangeresources.com John Durham, CFA Lead…

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