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3Q 2022 Earnings Presentation – Range Resources Corp

Range Resources Corp · Oct 26, 2022 · 40 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. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 1
    Company Presentation October 24, 2022
  2. 3Q 2022 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 U.S. Natural Gas Core…
  3. 3Q 2022 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. 3Q 2022 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. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 5
    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 2021, total U.S. energy U.S. CO2 Emissions (MMT) emissions declined 19%,…
  6. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 6
    Compelling Returns and Valuation EV/EBITDA FCF Yield(a) 20x 19.0x 14.0% 18x Ranges EBITDA Multiple…
  7. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 7
    Peer-Leading Capital Efficiency Well Costs per Lateral Foot Decline Rate 1,200 40% 35% 1,000 30% 800 25% 600 20% 15% 400 10% 200 5% 0 0% RRC Peer 1 Peer 4 Peer 2 Peer 3 RRC Peer 2 Peer 1 Peer 3 Peer 4 Capital Expenditures…
  8. 3Q 2022 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. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 9
    Gathering Contracts to Drive Unit Costs Lower Gathering Contracts Structured to Decline Gathering Costs to Decline Contractual Gathering Cost Declines Versus 2021 Certain contracts in Appalachia are 0 structured such that Ranges…
  10. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 10
    Ranges Marketing Diversity Natural Gas Access to Multiple End-Markets Ability to Export Provides Price Diversification Ethane Propane & Butane Northeast Mont Northeast Belvieu Oil-Linked Gulf Coast Midwest Exports…
  11. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 11
    Significant Free Cash Flow Forecasted at Strip Cumulative Free Cash Flow(b) 2022 Outlook(a) (6.75 NG / 95 WTI / 37 NGL) 5,000 Free cash flow approximately 1.5 billion at strip pricing 4,500 Excess Free Cash Flow Provides…
  12. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 12
    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…
  13. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 13
    Value of Year-End 2021 Proved Reserves PV-10 of 19.1 Billion, or 60 per Share Net of Debt, Assuming Strip Included in SEC Reserves Pricing as of March 31, 2022 By rule, only 5 years of development activity Proved Developed reserves of…
  14. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 14
    Natural Gas Macro Remains Strong Natural Gas Supply Remains near YE2019 Levels Gas Retaining Market Share at Higher Prices EIA forecasts supply to grow 1.0 Bcf/d exit-to-exit in Gas Generation as % of Thermal Generation (Gas+Coal) vs.…
  15. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 15
    Long-Term NGL Macro Remains Strong Propane Storage Indicates a Balanced Market Propane Days of Supply Propane days of supply remains below historical 60 levels throughout 2022 55 Ample spare U.S. LPG export capacity remains 50 45…
  16. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 16
    Leading in Environmental Practices Commitment to Clean & Efficient Operations Industry-Low Emissions Intensity(a) Over 80% reduction in GHG emissions intensity since 1.50 2011 GHG Intensity (MT CO2e/Mmcfe) Class-leading GHG…
  17. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 17
    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…
  18. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 18
    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…
  19. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 19
    Appendix
  20. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 20
    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…
  21. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 21
    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…
  22. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 22
    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…
  23. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 23
    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 2022 D&C Cost…
  24. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 24
    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)…
  25. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 25
    NGL Price Calculation Example % of RRC Barrel Mont Belvieu (/gal) Avg. 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Additional Considerations 53% Ethane 0.31 0.40 0.59 0.55 0.43 Range NGL differential can be influenced by factors 27%…
  26. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 26
    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 NYMEX…
  27. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 27
    Macro Outlook Natural Gas & NGL
  28. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 28
    Natural Gas Demand Growth Outlook 2022-26 Demand Outlook U.S. Gas Demand Growth Outlook (Bcf/d) Total demand growth of +20 Bcf/d through 2026 22 from LNG and Mexican exports, industrial and 20 electric power demand growth 18 16 LNG…
  29. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 29
    Natural Gas 38% 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 11 Bcf/d from 45% 35 44% 2011-2021, while coal declined 16 Bcf/d(a) 42% 38% 41% 38% 39%…
  30. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 30
    Lower 48 Dry Gas Production Future Supply Growth Expected to be Limited by Infrastructure Constraints and OFS Inflation. 104 102 100 98 96 U.S. L48 Pipeline Flows (Bcf/d) 94 92 90 88 86 84 82 80 78 76 74 72 70…
  31. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 31
    Lower 48 Gas Storage Days of Supply U.S. Natural Gas Days of Supply Remain 9% Below 2021 Levels and 17% Below the Five-Year Average. 70 65 60 U.S L48 Gas Storage Days of Supply 55 50 45 40 35 30 25 20 15…
  32. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 32
    Demand Growth Requires More Infrastructure 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 Associated…
  33. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 33
    NGL Macro Outlook NGL Demand Growth Growing U.S. LPG Market Share with Rising Exports 5,000 50% IEA forecasts LPG (propane and butane) and 4,500 45% ethane to be among the fastest growing global oil Waterborne LPG Trade (MBL/D)…
  34. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 34
    Propane Prices Moving Back to Pre-Shale Norms Balanced Market Average (1993-2011): 71% 120% LPG Export Capacity Growth Supports Return to Balanced Market. Recent Discount to WTI Provides 100% Propane / WTI Crude Price Ratio…
  35. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 35
    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…
  36. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 36
    Financial Detail
  37. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 37
    Range 2022 Guidance 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 - 0.11 TGP&C…
  38. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 38
    Well-Structured, Resilient Balance Sheet 1.5 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…
  39. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 39
    Hedging Program Supports Free Cash Flow 4Q22 2023 2024 Avg. Floor Avg. Ceiling Avg. Floor Avg. Ceiling Avg. Floor Avg. Ceiling Natural Gas 3.42 3.87 3.43 4.03 3.55 5.51 Oil 62.20 62.20 71.39 71.39 80.00 90.12 4Q22 Hedge…
  40. 3Q 2022 Earnings Presentation – Range Resources Corp – slide 40
    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 Matt Schmid Lead Financial…

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