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February 2015 Company Presentation – Range Resources Corp

Range Resources Corp · Feb 24, 2015 · 53 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 2015 Company Presentation – Range Resources Corp – slide 1
    February 24, 2015 Company Presentation 1
  2. February 2015 Company Presentation – Range Resources Corp – slide 2
    Large Scale Growth Story with Low Cost and Low Risk Focused on PER SHARE GROWTH of production and reserves at top-quartile or better cost structure 1. Largest acreage position in core of Marcellus, Upper Devonian and Utica 2. Unit…
  3. February 2015 Company Presentation – Range Resources Corp – slide 3
    Range is Focused on Per Share Growth, on a Debt-Adjusted Basis Production/share debt adjusted Reserves/share debt adjusted 3.00 70.00 2.50 60.00 Mcfe/share 50.00 Mcfe/share 2.00 40.00 1.50 30.00 1.00 20.00 0.50…
  4. February 2015 Company Presentation – Range Resources Corp – slide 4
    SW/NE Pennsylvania Stacked Pays Total (1) Wet Dry Net Acreage Acreage Acreage Upper Devonian 330,000 195,000 525,000 Marcellus 330,000 310,000 640,000 Utica/Point Pleasant - 400,000 400,000 660,000 905,000 1,565,000…
  5. February 2015 Company Presentation – Range Resources Corp – slide 5
    Driving Down Unit Costs 4.50 4.00 3.50 3.00 /mcfe 2.50 2.00 1.50 1.00 0.50 0.00 - 2008 2009 2010 2011 2012 2013 2014 2015E Reserve 1.64 1.25 0.83 0.68 0.68 0.66 0.59 0.56 Replacement(1) LOE (2) 0.99 0.82…
  6. February 2015 Company Presentation – Range Resources Corp – slide 6
    Capital Efficiencies Driving Growth Budget = 870 Million Capital Efficiencies Driving Growth with less Capital 83% Completed lateral lengths in Marcellus 4% 13% expected to be 6,000 ft. in 2015 92% Drilling Acreage & Seismic…
  7. February 2015 Company Presentation – Range Resources Corp – slide 7
    Cost & Efficiency Improvements SW Pennsylvania Average Lateral Length Well Cost/Lateral Length 2,500 6,500 2,200 5,500 1,900 4,500 1,600 3,500 1,300 2,500 1,000 700 1,500 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015…
  8. February 2015 Company Presentation – Range Resources Corp – slide 8
    Cost & Efficiency Improvements NE Pennsylvania Average Lateral Length Well Cost / Lateral Length 6,000 2,400 2,100 5,000 1,800 4,000 1,500 3,000 1,200 2,000 900 1,000 600 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015…
  9. February 2015 Company Presentation – Range Resources Corp – slide 9
    Disciplined Financial Approach Strong, Simple Balance Sheet Bank debt, subordinated notes and common stock No debt maturity until 2019 (bank) and 2020 (notes) Immediate liquidity of 1.2 billion under commitment amount; 2.2 billion…
  10. February 2015 Company Presentation – Range Resources Corp – slide 10
    A History of Strong Credit Metrics EBITDAX / Interest 8.0x Range has a long history of 7.0x disciplined financial 6.0x management 5.0x 4.0x Strong EBITDAX coverage of 3.0x interest expense evidences 2.0x the low cost structure…
  11. February 2015 Company Presentation – Range Resources Corp – slide 11
    Long Life Reserves Enhances Credit Profile Proved Developed Reserves / Production 18.0x With a best-in-class reserve life Range well above the average 16.0x index, Ranges low production 14.0x decline provides more stable 12.0x BB…
  12. February 2015 Company Presentation – Range Resources Corp – slide 12
    Gas In Place (GIP) Analysis Shows Greatest Potential in SW PA When GIP analysis from the Marcellus, Upper Devonian and Point Pleasant are combined, the largest stacked pay resource is located in SW PA where Range has concentrated…
  13. February 2015 Company Presentation – Range Resources Corp – slide 13
    Additional Upside Utica/Point Pleasant OH PA Record 24 hour IP of 59.0 Mmcf/d at Claysville Sportsmans Club Confirms Ranges geological interpretation Currently producing 20 Mmcf/day under designed conditions 2 wells planned…
  14. February 2015 Company Presentation – Range Resources Corp – slide 14
    Range Marcellus/Utica Acreage Top Tier (Assumes 10% Return) 15 15
  15. February 2015 Company Presentation – Range Resources Corp – slide 15
    Marcellus has Low Break Even Costs bakken scoop three forks bone spring utica niobrara cana springer eagle ford wolfcamp mississippian uinta woodford cotton valley granite wash From Credit Suisse Report Exploration Production US…
  16. February 2015 Company Presentation – Range Resources Corp – slide 16
    Range Marcellus 2015 Well Economic Summary The different Marcellus areas provide optionality and a balanced approach to developing acreage and growing overall Marcellus production in 2015 SW Super-Rich SW Wet SW Dry NE Dry 12.9…
  17. February 2015 Company Presentation – Range Resources Corp – slide 17
    Range NGLs- Now a Global Market As the largest producer of NGLs in Appalachia, Range has seen high interest from international customers, resulting in advantaged long-term contracts Mariner West 15,000 bbls/day of ethane -…
  18. February 2015 Company Presentation – Range Resources Corp – slide 18
    Significant Natural Gas Demand Growth Projected Beginning in 2015 LONG TERM US NATURAL GAS DEMAND ROADMAP (BCF/D) Cumulative 2015 2016 2017 2018 2019 2020 2015-2020 LNG Exports Sabine Pass 1.2 1.2 0.6 3.0 Freeport 0.5 1.0 0.4 1.9…
  19. February 2015 Company Presentation – Range Resources Corp – slide 19
    Range Resources Concluding Summary 1. Largest acreage position in core of Marcellus, Upper Devonian and Utica 2. Marcellus development has driven down unit costs over 40%; capital costs down 57% or more on a per lateral foot…
  20. February 2015 Company Presentation – Range Resources Corp – slide 20
    Appendix Portfolio Detail 21 21
  21. February 2015 Company Presentation – Range Resources Corp – slide 21
    SW PA Super-Rich Area Marcellus Projected 2015 Well Economics Southwestern PA (high Btu case) NYMEX 12.9 EUR / 1,000 ft. 2.40 Bcfe Gas Price Bcfe EUR 12.9 Bcfe Strip - 34% (182 Mbbls condensate, 987 Mbbls NGLs, and 5.9 Bcf gas)…
  22. February 2015 Company Presentation – Range Resources Corp – slide 22
    Southwest PA - Super-Rich Area 2015 Turn in Line Forecast 3,000 Improvements Between Years EUR Well Costs Lateral (Bcfe) ( MM) Lengths (ft.) 2,500 2014 Type Curve - Drilling 12.3 6.8 5,300 Normalized Mcfe/Day per 1,000 ft. 2015…
  23. February 2015 Company Presentation – Range Resources Corp – slide 23
    Southwest PA Super Rich Marcellus Horizontal Length (TIL) Average Number of Stages 6,000 30 5,500 5,000 25 Stages 4,500 Feet 20 4,000 3,500 15 3,000 2,500 10 2,000 2013 2014 2015 5 Actual Actual Forecast 2013 2014…
  24. February 2015 Company Presentation – Range Resources Corp – slide 24
    SW PA Wet Area Marcellus Projected 2015 Well Economics Southwestern PA (Wet Gas case) NYMEX 17.6 EUR / 1,000 ft. 2.95 Bcfe Gas Price Bcfe EUR 17.6 Bcfe Strip - 39% (48 Mbbls condensate, 1,453 Mbbls NGLs, and 8.6 Bcf gas) 3.00 - 34%…
  25. February 2015 Company Presentation – Range Resources Corp – slide 25
    Southwest PA - Wet Area 2015 Turn in Line Forecast 3,500 Improvements Between Years EUR Well Costs Lateral (Bcfe) ( MM) Lengths (ft.) 3,000 2014 Type Curve - Drilling 12.3 6.1 4,200 Normalized Mcfe/Day per 1,000 ft. 2,500 2015…
  26. February 2015 Company Presentation – Range Resources Corp – slide 26
    Southwest PA Wet Marcellus Horizontal Length (TIL) Average Number of Stages 6,500 35 6,000 5,500 30 5,000 25 Stages Feet 4,500 4,000 20 3,500 15 3,000 2,500 10 2,000 2013 2014 2015 5 Actual Actual Forecast 2013…
  27. February 2015 Company Presentation – Range Resources Corp – slide 27
    SW PA Dry Area Marcellus Projected 2015 Well Economics Southwestern PA (Dry Gas case) NYMEX 17.1 EUR / 1,000 ft. 2.52 Bcf Gas Price Bcf EUR 17.1 Bcf Strip - 49% Drill and Complete Capital 6.0 MM 3.00 - 29% Average Lateral Length…
  28. February 2015 Company Presentation – Range Resources Corp – slide 28
    Southwest PA Dry Area 2015 Turn in Line Forecast 6,000 Improvements Between Years EUR Well Costs Lateral (Bcf) ( MM) Lengths (ft.) 5,000 2014 Type Curve - Drilling 13.4 6.6 5,200 Normalized Mcf/Day per 1,000 ft. 2015 Type Curve…
  29. February 2015 Company Presentation – Range Resources Corp – slide 29
    Southwest PA Dry Marcellus Horizontal Length (TIL) Average Number of Stages 8,000 40 7,000 35 6,000 30 Stages Feet 25 5,000 20 4,000 15 3,000 10 2,000 5 2013 2014 2015 2013 2014 2015 Actual Actual Forecast EUR…
  30. February 2015 Company Presentation – Range Resources Corp – slide 30
    NE PA Dry Area Marcellus Projected 2015 Well Economics Northeastern PA (Dry Gas case) NYMEX 15.2 EUR / 1,000 ft. 2.67 Bcf Gas Price Bcf EUR 15.2 Bcf Strip - 63% Drill and Complete Capital 4.9 MM Average Lateral Length 5,663 ft.…
  31. February 2015 Company Presentation – Range Resources Corp – slide 31
    Northeast PA Dry Area 2015 Turn in Line Forecast 4,500 Improvements Between Years EUR Well Costs Lateral 4,000 (Bcf) ( MM) Lengths (ft.) 2014 Type Curve - Drilling 13.1 4.7 4,800 3,500 Normalized Mcf/Day per 1,000 ft. 2015…
  32. February 2015 Company Presentation – Range Resources Corp – slide 32
    Northeast PA Dry Marcellus Horizontal Length (TIL) Average Number of Stages 6,000 30 5,500 5,000 25 4,500 Feet Stages 4,000 20 3,500 15 3,000 2,500 10 2,000 2013 2014 2015 5 Actual Actual Forecast 2013 2014 2015…
  33. February 2015 Company Presentation – Range Resources Corp – slide 33
    Results of Marcellus Tighter Spacing Pilot Projects Projects Conducted in the Wet and Super Rich Areas of the Marcellus 3,000 Normalized for lateral length 500 foot spaced wells produced 80% of 1,000 foot spaced wells 2,500 over a…
  34. February 2015 Company Presentation – Range Resources Corp – slide 34
    Targeting/Down Spacing Test Results Encouraging AVERAGE NORMALIZED TIME ZERO DECLINE CURVES 3500 Optimized targeting 3000 700 ft. shows a 53% increase in spacing cumulative production after 300 days Average Mcfe/Day per 1,000…
  35. February 2015 Company Presentation – Range Resources Corp – slide 35
    Marcellus NGL Pricing Weighted Avg. Realized Marcellus NGL Prices Composite Barrel (1) 2014 1Q 2Q 3Q 4Q NYMEX WTI 9% (per bbl) 98.61 102.97 96.99 73.11 9% Mont Belvieu 4% Weighted Priced Equivalent (2) 37.22 33.43 32.14 24.00…
  36. February 2015 Company Presentation – Range Resources Corp – slide 36
    Appalachia Gas Transportation Arrangements Projected YE 2015 Projected YE 2016 Projected YE 2018 Transport Transport Transport Mmbtu/day Mmbtu/day Mmbtu/day Regional Direction Cost per Cost per Cost per (Gross) (Gross) (Gross)…
  37. February 2015 Company Presentation – Range Resources Corp – slide 37
    Announced Appalachian Basin Takeaway Projects 1 of 2 Capacity Approved or Northeast PA Operator Main Line Market Start-up Bcf/d Fully Committed with FERC 2014 Northeast Connector Williams Transco NE Q4'14 0.1 Y Y Iroquois Access…
  38. February 2015 Company Presentation – Range Resources Corp – slide 38
    Announced Appalachian Basin Takeaway Projects 2 of 2 Capacity Approved or Southwest Operator Main Line Market Start-up Bcf/d Fully Committed with FERC 2016 Gulf Expansion Ph1 Spectra TETCO Gulf Coast Q4'16 0.3 Y N Clarington West…
  39. February 2015 Company Presentation – Range Resources Corp – slide 39
    Gas In Place (GIP) Marcellus Shale GIP is a function of pressure, temperature, thermal maturity, porosity, hydrocarbon saturation and net thickness Two core areas have been developed in the Marcellus Condensate and NGLs are…
  40. February 2015 Company Presentation – Range Resources Corp – slide 40
    Gas In Place (GIP) Point Pleasant Outlined portion represents the area of the highest pressure gradients in the Point Pleasant Note: Townships where Range holds 3,000 or more acres (as of 12/31/2014), and estimated as…
  41. February 2015 Company Presentation – Range Resources Corp – slide 41
    Gas In Place (GIP) Upper Devonian Shale The greatest GIP in the Upper Devonian is found in SW PA A significant portion of the GIP in the Upper Devonian is located in the wet gas window Note: Townships where Range holds 3,000…
  42. February 2015 Company Presentation – Range Resources Corp – slide 42
    Ranges Natural Gas Liquids Provide Revenue Uplift 5.00 Range is the largest NGL /Wellhead Gas producer in Appalachia, 4.50 with the highest Btu inlet 3.95 - 4.05 4.00 gas 3.50 Higher Btu gas receives increased uplift as it 3.00…
  43. February 2015 Company Presentation – Range Resources Corp – slide 43
    Southern Appalachia Strategic Marketing Advantages 465,000 net acres - Range owns minerals on Nora is strategically positioned to provide gas to southeast markets most of the acreage Contracts in place for 100 Mmcf/d at 0.20/Mmbtu…
  44. February 2015 Company Presentation – Range Resources Corp – slide 44
    2014 Nora Enhanced Results From New Completion Design 200 180 2014 CBM 160 Pumping sand at higher 140 2014 wells with new completion design pressures during fracking MCFD 120 operations has significantly 100 increased…
  45. February 2015 Company Presentation – Range Resources Corp – slide 45
    Midcontinent Division 360,000 net acres Current development activity has been in the Mississippian Chat along the Nemaha Ridge Horizontal Granite Wash, Cleveland and Woodford potential on existing HBP acreage 2015 Planned…
  46. February 2015 Company Presentation – Range Resources Corp – slide 46
    LNG Exports Developing Projects To-Date Based on operator announced dates Our analysis suggests at least 8 of the 38 proposed export facilities are likely to proceed by 2022, representing 12 Bcf/d of capacity out of the proposed…
  47. February 2015 Company Presentation – Range Resources Corp – slide 47
    Appendix Financial and Reserve Detail 48 48
  48. February 2015 Company Presentation – Range Resources Corp – slide 48
    Moved 8.8 Tcfe of Resource Potential into Proved Reserves in the Last Five Years YE 2009 YE 2010 YE 2011 YE 2012 YE 2013 YE 2014 Proved 3.1 4.4 5.1 6.5 8.2 10.3 Reserves (Tcfe) Drill Bit Finding 0.69 0.59 0.76 0.67 0.57 0.55 Cost…
  49. February 2015 Company Presentation – Range Resources Corp – slide 49
    Strong, Simple Balance Sheet YE 2010 YE 2011 YE 2012 YE 2013 YE 2014 ( in millions) Bank borrowings 274 187 739 500 723 Sr. Sub. Notes 1,686 1,788 2,139 2,641 2,350 Less: Cash (3) (0) (0) (0) (0) Net debt 1,957 1,975 2,878…
  50. February 2015 Company Presentation – Range Resources Corp – slide 50
    Debt Maturities Range maintains an orderly debt maturity ladder 800 750 723 700 600 600 500 500 ( Millions ) 500 400 300 200 100 0 Senior Secured Revolving Credit Facility (as of December 31, 2014). Maximum…
  51. February 2015 Company Presentation – Range Resources Corp – slide 51
    Ranges Outstanding Bonds Corporate Rating: Ba1 (Positive) / BB+ (Stable) Senior Subordinated Notes Amount Current YTW 6.75% due 2020 500 2.85% 5.75% due 2021 500 3.90% 5.00% due 2022 600 4.72% 5.00% due 2023 750 4.75% Total…
  52. February 2015 Company Presentation – Range Resources Corp – slide 52
    Gas and Oil Hedging Status Volumes Hedged Average Floor Price Average Cap Price Period ( / Mmbtu) (Mmbtu/day) ( / Mmbtu) 2015 Swaps 524,856 3.94 Gas Hedging 2015 Collars 145,000 4.07 4.56 2016 Swaps 350,000 3.60 2017 Swaps…
  53. February 2015 Company Presentation – Range Resources Corp – slide 53
    Natural Gas Liquids Hedging Status Volumes Hedged Hedged (1) Period (bbls/day) Price (/gal) 2015 Swaps 10,882 0.616 Propane (C3) 2016 Swaps 3,500 0.588 2015 Swaps 1,819 0.700 Normal Butane (NC4) 2016 Swaps 1,500 0.727…

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