DUG East Jeff December President Ventura22, 2011 & Chief Executive Officer June 4, 2014
October 17, 1855 April 10, 2012 4
Regional History 1878: Haymaker Well; estimate 30-40 MMcf/day 1883: Natural gas from Murrysville piped to Pittsburgh; making it the first major city to have a natural gas supply 1884: George Westinghouse drills well in Point Breeze,…
Pittsburgh Renaissance I Renaissance I - Post WWII Construction of Point State Park, Gateway Center, Civic Area, Mellon Square Infrastructure built: Parkway East & West, Greater Pittsburgh Municipal Airport Population is nearly…
Pittsburgh Renaissance II Renaissance II - 1980s 1990s Construction of PPG Place, Oxford Center, Fifth Avenue Place, Mellon Tower, David L. Lawrence Convention Center, Infrastructure: Light rail, Modern Pittsburgh International…
Range Pioneers Marcellus Shale in 2004 Marcellus is now the largest natural gas field in the U.S. Pennsylvania leader again in natural gas & natural gas liquids production Utilizing historic infrastructure & building new…
Pittsburgh Renaissance III Driven by healthcare, education, technology and shale Pittsburgh is growing for first time since the 1940s (1) Median age in Pittsburgh dropped 7% in last census (2) 5.8% unemployment in Pittsburgh;…
Range and Southwest PA Pioneered the Marcellus Shale in October 2004 Area of maximum hydrocarbon in place is Southwest PA Area of best historical natural gas infrastructure is Southwest PA Epicenter of natural gas liquids pipeline…
Gas In Place Marcellus 11
Gas In Place Upper Devonian 12
Gas In Place Utica/Point Pleasant 13
Maximum Gas In Place is in SW PA 14
SW PA Infrastructure Advantage 85% to 90% of Ranges 2014 expected volumes are tied to favorable indices Range has added 40 new customers since 2012 in the South, Southeast, Mid-Atlantic and Midwest Range will continue to layer…
SW PA Advantage NGL Pipeline Takeaway Three existing pipeline agreements Range has the option to sell into local markets or to export liquids out of the Marcus Hook terminal Brownfield Redevelopment 16
Current Capability of Ranges Marcellus Area Processing Plant 1.4 Bcf/d gas 1.8 Bcf/d of wet inlet gas 55,000 bbls/d ethane Inlet gas needed to produce 140,000 bbls/d 55,000 bbls ethane per day, assuming minimum extraction…
Pennsylvania Stacked Pay Range Has approximately 1 Million Net Acres in PA Wet Acreage Dry Total Acreage Acreage Upper Devonian 330,000 230,000 560,000 Marcellus 470,000 320,000 790,000 Utica/Point Pleasant 175,000…
Southwest Pa, Stacked Pay Zones 19
Utica Porosity Cross Section RRC Well 20
Proved Reserves Tcfe YE 2009 YE 2010 YE 2011 YE 2012 YE 2013 Proved 3.1 4.4(1) 5.1 6.5 8.2 Reserves Resource 24 - 32 35 - 52 44 - 60 48 68(3) 64 - 85 Potential (2) Proved reserves have increased by 28% per year on a…
Resource Potential is 8 to 10 Times Proved Reserves Net Unproven Gas Liquids Resource Area Resource (Tcf) (Mmbbls) Potential (Tcfe) Marcellus Shale 27 35 2,250 2,740 41 51 Upper Devonian Shale 8 12 600 940 12 18 Midcontinent,…
Range is focused on Per Share Growth, on a Debt-Adjusted Basis Production/share debt adjusted Reserves/share debt adjusted 2.0 50 45 1.8 Mcfe/share 40 Mcfe/share 1.6 35 1.4 30 1.2 25 1.0 20 0.8 15 0.6 10…
Environment, Health and Safety A Core Value at Range Environmental, Health and Safety issues can affect many aspects of our business. Range feels a deep responsibility to protect our employees, contractors, the public and the…
Significant Growth Potential for Many Years 2014 production growth expected to be 20%-25% High rate of return, high growth, large scale assets, and low reinvestment risk Large net acreage position, with stacked pay potential, in…
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