RRC - Earnings call transcript Q3 2019 | Range Resources Corporation

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Operator

Welcome to the Range Resources Third Quarter 2019 Earnings Conference Call. [Operator Instructions]. Statements made during this conference call that are not historical facts are forward-looking statements. Such statements are subject to risks and uncertainties, which could cause actual results to differ materially from those in the forward-looking statements. After the speakers' remarks, there will be a question-and-answer period.

would turn I to call time, Mr. this like the to over At President, Range Relations Sando, Investor Laith Vice at Resources. Please go ahead, sir.

Laith Sando

posted Thank presentation thank had to release you Mark Scucchi, earnings morning, a Dennis Degner, everyone, chance Range's Executive Financial that Officer; Ventura, Good updated on today's and quarter and Operating Jeff on call. our you, third press Speakers Officer. Officer; review are Chief Chief we the Chief for website. investor Operator. joining call and Hopefully you've

also filed with it XX-Q you Investors our available system. on the access It's We tab SEC our using can the EDGAR yesterday. the SEC's website under or

we'll that call. note Please referencing on certain non-GAAP measures today's be

release provides of press the reconciliations most to Our figures. these comparable GAAP

posted in tables to margins supplemental website cash EBITDAX, we the of other our assist non-GAAP and measures. on additional For calculation information,

the Jeff. let over that, With call turn me to

Jeffrey Ventura

several In in sale sales $X by less royalty our of We $X morning's asset value Thanks, quarter, Range months. and have have recent sale debt spending originally Range assets. sales Laith, assets year, on balance the being operations, allowed these closed for our have our the absolute capital most us Range and in substantial us reduce delivering over on with the another that proceeds Since highlighted aligned planned. from store last September. over these believe this than strategic last so its X.X% to we has has joining sheet thanks in with billion flow the on billion everyone XX operational our third cash the structure, completed for bolstering key plans initiatives: capital in call. to delivered middle cost improving

Range clear that trade continued to our as a has this reflected However, market underlying it's fraction has value. of the as been equity in not quite

months, share buyback proceeds the less of our Board program buyback approved program. reinforcing million represents and financial XX asset substantial create shares XX% last such to has to This market net compelling Range than very disconnect than opportunity received recently shareholder the it repurchasing a sale this discount a a value. strength, Range's believe given our cap. is modest $XXX Given substantial long-term but asset greater progress at XX% represents made in the value Range's in of We

pursuing our cycles. We are commodity financial strengthen sales focusing for are means positioning company further actively the additional a position to and asset through on success as the

in Range's challenged potential. Mark our borrowing only deck on billion of conforming the underlying the this Along those future of derisking and reserves, facility a from than strip. activity. same noting that cycle. reserves our lines, price the believe represent resiliency proved I Range's and XX% It in of durable liquidity, reflects commitments value provides a the Range increased a our will also commodity credit it's but using billion business that $X.X some current its is provide SEC greater lower fraction total assets than additional max resource recently a glimpse of $X bolstering billion $X the I to comments think remains worth minute, base a

go are reserves under an the core count back proved locations current value that through I'll opportunistic shareholders any share we not pricing doesn't program. So of part value definition. long-term the Marcellus unique are for earlier Range's see value, that Utica our to the more comment than reserves and opening bank double and of for enterprise thousands create to repurchase my regarding current

under Mcfe cost improvement made cost, Range by great $X to progress Since expense, a end so taxes. XXXX. unit has the expect $X.XX have X% cash this By we've unit far production Mcfe. year, across the and or end LOE per G&A, of our reduced per in the cost and at of we board year, interest transportation in unit total Looking gathering, last cash

some every in our annual $X cost to cash to million structure flow. over equates $X.XX improvement contracts, For

fourth So of the XXXX cash improvement the quarter $XXX of in to equates in unit over uplift million cost that quarter between annual the we and flow. expect XXXX fourth

to Importantly, these these the on scenario production require no cost unit and forward are cash growth. Range price. even to improve the we're in lasting as that in a it's not flow has to changes improvements to commodity margins understand that change a don't that And ability important has increased see going relying positive

continues Operationally, in Dennis we to year $XX efficient more come capital better-than-expected. the XXXX less the has nine million will cost but leader operational spending on plans than of originally the in core per-foot maintenance discuss maintenance year-to-date ways in been sustainable and expect find Range's decline budgeted. continuing efficient. well Range's more inventory base to million. our foot, low be support a even more in team complete has detail, for basis, months Range deliver to a all-in for decline find approximately first XXXX capital class-leading per our to performance become that allowing substantial of should approximately capital proof $XXX XX%, heading shallow base we're and is help to ways cost for into requirements. and drilling be now

are maintenance the figures has about for sustainable. been the Range Importantly, last talking years capital several

XXXX. who to capital years. similar keep XXXX outspend 'XX some believe and differentiates low path into definition of a capital or capital to a from a rely We that to significant the glide temporary Our significant maintenance maintenance short-lived reflects maintenance require into future in provide us DUC number generate may to drawdown companies us on capital on needed tailwind this

commodity Range, $XXX last Range And a very is the sustainable. the we for the it our providing few and through again, base delivering is years, low points cycle durable differentiator solid flow. of positive As free making over capital have cash million a maintenance shown for

an in XXXX. we'll in be improving looking prices to utilized flow low and towards that's our begin cost capital maintenance set infrastructure XXXX remain in structure spending that's base dependent we Should challenged, align As as advantaged cash we growth. beyond, looking given capital flexibility towards the existing commodity with program not just we have we've where fully decline, worked capital, on

I spend to that believe very XXXX under over and as the years companies budget, in over last two budget, this not again a the few to performance the come that of we'll original E&P our Importantly, one and year. Range in testament same was is do our we'll

and $X that into the position XXXX less and it progress Dennis, debt, this unit down keeping turning over cycles. and Before Dennis? in we've for we've has the lowered our made to on success going as team entire on The billion paid last through than budgeted. our cost the momentum Mark I'll company say just great for and operational think we $XX substantially Range I over originally million we've over delivered remain plans Range committed Board the focused year:

Dennis Degner

in operational and our million to $XXX Jeff. beginning $XX is for first you, operational direct capture for spend set totaling and three million efficiencies level below the at quarters the innovative implement at capital of resulting is service the with our efforts capital spend current the of forecast, to Capital million of find budget Based of third our capital a and spending current $XXX million for to year. year total $XXX in environment. and projected the is result Thank the This quarter cost capital similar activity a fourth the a spending on in came teams' reductions at ability million. be technical spend approximately quarter $XXX a

for with water efficiencies Similar underspend improved associated water-sharing our third year, drilling it, And initiatives same similar the quarter and period capital cost an XX% to increase second to last water completion year this into program, attributed the quarter. the reduction completion the our ago. in in approximate XXX,XXX continued and barrels call and over to producers' $X our totaled driving update sharing, or, to service reductions. a development quarter, long we other translated the compared the million primarily as are success Utilizing an time of lateral represents for cost

out that we third our quarter. production for the of run the in production produced existing in equivalent exceeding our across has revised Bcf the Sunoco early day, amount strong ethane will above transportation per to quarter normal closed both and wells for offset Better-than-expected efficient to operations from quarter and to going result Production in reduced maintenance October more guidance X.XX continued returned the new in The well ethane a in September. helped performance Hook PA field impact to forward. Southwest Marcus and operations maintenance-related portion time the third of

as is quarter at or for quarter to we expect being equivalent Fourth recently production being production our XX year out sales. number. royalty to our the sales Please accounts day wells note per finish with turn-in-line announced to XXXX that annual XX% the guidance X.XX of turned Bcf fourth guidance X.XX set

during on XX,XXX The our lateral quarter third wells In sales the the team top-producing acreage an of the field the quarter of Looking average from wet all and generated the feet. wells our wells back on dry, some across pads to over XX of some and of covering highlights. Appalachia, three spread areas operational were turned super-rich six new length for year.

includes strong minute a producing turned thus cover sales more a wells heart some per cubic top the day. average of of production on field area, for In is generated pad million of This take well rate exceptional each from per-well to than also per condensate we with This pads year gas equivalent a of combined over areas. of basis. and X,XXX like barrels day I'd to wet far. NGL initial per the initial production three the a pad the these that in average the the feet XX and

over continues to X,XXX wells to third X,XXX wells two barrels to of the portion the and a continue produce of field, pad the turned sales across after eight wells three quarter, to In in per day. pads XXXX. sales. were see different the just produced months condensate from with first of three One super-rich results more we day barrels half than consistent turned In

second producing than gas lastly, This a performer, producing initial cubic we XX on million producing our under highest in six performing, the day of average examples of over XXX these gas well. an Each more our cubic dry strong growing of list months strong as generated area, previous pad mentioned per of where repeatable million conditions. pads, be add to calls. after brought three feet XXXX constrained feet continues pad our to production well online And dry pad per

in can activity, This quarter the reduction As was this while first drilling a we moved the team curve environment team the these, two to directly applications. In footing rigs during half XXXX enter of conjunction drilling drill us our annual to the the gains in in solid directional lateral last team XXXX. footage as of attributed Appalachia. reduction new, plan, daily in XX per saw has utilizing as X/X wells to XXXX. drilling reduce we in by substantial increasing are we approximately lateral nearly approximately fourth been footage the XX% achieve approximately of be we efficiencies year. technologies production the versus to XX% drilled quarter, year. wells scheduled With turn go in and the the out operational into our able to total to third X% the Appalachia wells look footage finish the and the daily lateral in increase into cost lateral represent activity in year, a on quarter for These like line foot to in putting both with initiatives to third drilling of compared Even able

increase turn quicker, supports wells with drilling a an is lateral sales early average the to footage the feet, Comparing average drilled XXXX. over is length to length to year-to-date to drilled for XX,XXX XXXX XX% the approximately in And addition last lengths lateral to over plans which XXXX drilled horizontal wells to continue of year, length XX,XXX In our increased year-over-year. lateral average feet. increase

per to with our cost are prior the fleets handling, completions foot Range continued build executing upon our edge in their well needed. Similar of F&D to at success water The by quarter fewer mentioned stages drilling operations, and with above, innovative more our has leading Mcfe. cost frac per the coupled frac keeping third efficiencies team

stay like As an I'd a showcasing ahead, of two on to provide the step creativity update our effort areas of teams. that part to

test this pad our fleet our in which call. The dry on Southwestern first our second fracturing with in gas XXX since team has frac quarter was initiative electric completed mentioned PA. were is XX related to nine was fleet, Over stages the of second times almost averaging the located acreage The stages with achieved refine the to processes while observed pad this while continued on all day completed the per and per during level peak to over frac day, procedures multiple stages operation. stages day. XX per team were that Efficiencies

captured while $X.X month levels. of savings reducing team over the and million test During noise also emissions three the fuel run,

coupled unique, we ability to potential contiguous the early this with to with regular pads and existing production, at move results, acreage Looking our position technology. exciting back with see

preparing for our year-end We this and electric evaluating XXXX fleets versus fleet currently are conventional utilize its are to into potential program.

The facilities next in operations. second and teams step initiative production emissions reducing flowback taking our involves the during

acreage with phase encouraged gas no teams test to sites, During further the which generating during and by reduced seven next Southwest during flowback, pad emissions to The able our plans enhanced have the follow resulting months, our early processes across tested reduction Pennsylvania. and up been has past estimated in with essentially flowback the used been the results in early dry The few of an our operations over emissions is wet and team super-rich year. XX% in equipment is flowback process a impact in update cost. to

Given our optimistic and dedication, reach as strive team work of our goal will this hard the team's we're emissions. initiative net to creativity, zero we ultimate advance

Similar the safety the protects of our team our public. to manner operate in to and a contractors commitment strives the that environment, to employees, our

employee this Our has paid year. in by same year OSHA safety and performance a compared XX% focus last generating the off period time improvements contractor recordables on to workforce reduction

We performance our by we preventable operation. by success to monitoring realize of the ourselves all encouraging the focus, day-to-day this on our continue In vehicle and have worksite system, consider addition that successful program vehicle built our results safety use environmental to and incidents. improving safety of of reducing we must showing upon vehicle it's further our fronts expanding year our

briefly turning Now to marketing. NGL

Range Saudi was X second service during As the to day to of and of exports via ethane transportation Marcus we allowing per October, mentioned pipeline the currently gallon at of barrels are Mariner occurrence, exports remain maximized estimated using East and strong XX,XXX to Hook this earlier, both third resume the export rail LPG and Propane the With access per at pipeline export dock quarter the elevated terminals. extended returned Range during the in week arbs quarter values $X.XX the Belvieu history. recent versus appreciation of resulted realized quarter particular, rejection differential gains of Mont markets export combination Range propane regions. to sharp best has for access a butane for second on oil and various and and the led In to The Belvieu index. LPG. Mont Propane international in ethane September terminal. from during butane curtailments continued that to in and demand supply values export disruption

Range capacity XXXX, improved NGL summer, enhancing into through margins forward Looking international and as pipeline exposure. maintain to a additional additional differential next logistics available strong plans becomes

budget planned best delivering to below initiatives, like to our strong I'd operational resulting As for and I on yet. over deliver hand in expressing it to all ready teams environmental our to to capital program Mark out close operational, us goals, get the to financials, our thanks discuss creative our through safety on by quarter another allowing our

I'll it now over Mark. to turn

Mark Scucchi

Dennis. Thanks,

long-term our flow to this and strategy execute focused the support reducing maximizing cycle, on strategy risks. quarter third activity on company's closed generated extend capital to financial Nevertheless, transactions price reducing during continued third to near-term foundation strength, investment. the liquidity, debt, navigate to while we to Range flexibility continue our challenging. Pricing commodity increasing be financial and costs by quarter As enhancing continue and available that runway judicious the cash bolster visible mitigating several successfully material

mentioned, capital spending to below $XXX below $XXX year budget. planned of million. investment as we With million. Dennis finish with annual generated the is And cash the from intend approximately operations flow capital tracking Range year-to-date of trending operations results, Year-to-date budget

operationally, In year's with focused costs. capital has while costs on overhead executing unit addition operating evident quarter Range the benefit and of conservation third this to efforts in

of the previously improvements quarter, the fourth During the and to better discussed quarter-over-quarter with the unit compared are board third of year quarter last and we processing across costs transport. of plans gathering, led efficiency per improvement delivered in The $X.XX unit than cash guidance. per results $X.XX by on unit

improvement year over In the cash cash improvement this to recall cost that $X the below of costs over unit As unit guided already reductions whereas current aggregate achieved of improvement further excess of a we've five over total, $X.XX goal. course unit the a to that at with to $X.XX XX% reminder, year-to-date, and outlook, expected Range costs puts in time. $X.XX

the On in recent importance line its calls, as described detail item. largest given gathering, we expense processing, transport some individual

reduced with to Mcfe our gas this online. of quarter, line For as end the last GP&T capacity came was in Consistent transport item fourth year. per compared the guidance, XXXX the last peaked to quarter $X.XX our third contracted at $X.XX

utilization cost full down on planned, a this of infrastructure is As basis. driving unit

capital term. even can improving there per trend medium forward, are in that unit GP&T in a in Going costs scenario, this spend reductions near, extend absolute maintenance long and

$X.XX lease absolute in per third costs make investments the the of this last related production. and payback to quarter most to compared quarter and production specific per Mcfe. declined quick Mcfe year production. the to of have to quarter declining basis designed Range's preceding with costs of year optimize operating costs, the excluding compared a and were projects existing unit third These workover workovers, infrastructure on during $X.XX to third to low-cost Incremental per quarter existing

operations Continued with in the savings related strong water performance is diligent driven by field to handling. specific

third preceding quarter decline an year. with the Last of prior is wide spend expense decline quarter annualized G&A $XX during and a represents the approximately This quarter annualized, of basis figure the it mentioned absolute an million. in XX% from cost I similar as a achieving quarter, cash on a expense quarter first reduction from third XX% approximately management of G&A range initiatives. a the of is important Cash reflective target

to of decrease expenses cost the expect sustainable quarterly be ongoing and majority management. do indicative we of fluctuate, this While

During the approximately divestiture quarter, year of billion, gross gone over closed to for of has sale brings proceeds we directly past $XXX to on $X.X debt. the This interest the reduce royalty proceeds million. which

opportunities. dollar stages. sheet On of additional announce definitive we establish will done a or results, the public not are but And further we'll past, the several time processes in topic various line. currently we've are improvement, marketing we balance These consistently as threshold in

proceeds $XXX our bank the third to credit value also of say, we inventory at divest revolving of a particularly at to the approximately with to line have we equity. repurchases common million the used deep balance face to Divestiture credit in it can the declining believe reduce of XXXX The line comparison and XXXX. borrowings of the we of projects end in reasonable with values, bonds Suffice in $XX that of the open-market quarter. results of of reflects maturities million value were

proceeds, the we under quarter, with reduction serve a this any and This bonds modest as liquidity manner. opportunistically the the letters proactively available intention the was maturities by sheet cost-effective is revolver increased after we discount. lender to divestiture of debt total near-term commitments and and improved During It expansion of strengthening bond borrowings of incremental continue these announced, billion. at Liquidity $X.X future to also a to credit in near-term Repurchasing refinancing but to maturities. $XXX began facilitate addressing our billion. million liquidity to through recently $X.X XX%, balance an a brings through repurchasing repurchases

cushion. with borrowing also $X at noted coverage figure providing base additional Range's asset remains that should above potential It billion that be

bond before focused maturity reducing maintaining and help time backstop as reducing in the a thoughtful remain borrowing a on this liquidity costs incremental is ladder. maturity debt, maturities. XXXX, to We first June there While manage potential serves

repurchase the Range's share sized considered. timing substantial at and is suffered program for repurchase recent and its concerns. component price priority made. proceeds and been given $X.X this financial strengthen foundation. prices Another program carefully billion It revolver, deploying our size, through maintain of stock million. $XXX was Meanwhile, leverage capital and an in to has of With commodity first was framework $XXX a incremental million in announcement The Range's under has divestiture initiation the availability progress

market flow perspectives, be or per from is we However, a at of reserves per share, believe per equating asset levels repurchase approved. via acquired variety the shares than per program it a value share has compelling. viewed of production XX% valuation Consequently, net share, when cap these greater been current share value to cash price share,

reduction repurchases of with debt strategy. ongoing reduction While in priority achieved, of and a less debt divestiture opportunistic of potential balanced is enhanced combined our carefully substantial remains allocation light efforts, liquidity for proceeds the in recent our than the XX% future

the achievements of objectives. at in in safely, and sheet, delivered balance look costs our against have strategic terms managing been made the we operating As progress tangible XXXX efficiently,

through the we financial and cash management. fund through cost As from remains flow the our organically to to XXXX, work further strengthen plans ongoing business and it protect for continue to grow priority position margins

managing In continuous create to summary, back to and Range navigate we value to on improvement price Jeff, commodity position long-term remain cycles to risk. prudently effectively focused while you.

Jeffrey Ventura

Operator, Q&A. let's for open up it

Operator

[Operator Instructions].

question Jayaram first of from The JPMorgan. is Arun

Arun Jayaram

question the sustaining first CapEx regards my number. Jeff,

what million us do $XXX need could XXXX. sense cited activity a count XXXX of kind maybe wondering you You levels. flat keep to production of you TIL for from was activity, if I rig give

some the look haven't basis. a like XXXX sustaining a want little to you in sense I of the on program a a so the give We rig at what could of reduction of count available seen or publicly data, maintenance looking bit just

Jeffrey Ventura

year to that then look it and cadence little think Okay. when I'll But rigs important. you going capital more Yes. bit, rig at turn little Dennis you we look a for and and had detail. a are at I'll this start the spend up I over and the down

'XX 'XX what is I critical pretty to into look it. our from 'XX lateral 'XX -- that really When the way think in at carried is projecting at from 'XX we're a drilled to and 'XX, wells and you into consistent. look lateral footage footage

do in have advantage have we to color our put low an you PNC. relatively little wells and rate that? more But decline relative again, Dennis, peers a in want we a that on So high-quality peer-leading to

Dennis Degner

forward years first morning. looks next look like in our year also lot I puts but present, of of that group will follow. upcoming looking mean diligence not It all, couple as planning Good of You what we a only at -- the Yes. betcha. the

management is is proxy over best clearly that that activity the activity. in and the inventory count line we we've rig going isn't keep the always for kind to inventory several be what our last learned So What forefront of something on with that's years rig generated.

So over to really just also Jeff's In lateral what comes XX the the to average that touched call, point, only last did generate. going team drilling back our the done by down year. to months, lateral in it to just But drilling faster has the on half really the compared of it. we're quarter foot in we job not a last but even XX% section in first the we on phenomenal

down our our to and been for footage loaded. plan the We upon number of also be generating a, teams were efficiencies our able we've for in able providers have drilling on -- operating lateral side based in rig as been rigs count, been to front-end and line we generate. So the the see always with year. more technical same But playing it's reduce we're service we're to that the

-- of sustainable inventory rigs end couple you capital off we neighborhood a feel perspective generated at current in we X that's the that the years as really get ready crews, a for well. I being somewhere here XXXX go of of To follow. to the as to into efficiencies, that's being look a mean and also and it, comfortable put as this frac see for So XXXX probably the couple that framework probably some other and around X it's with

Arun Jayaram

Great. Mark, a you. for follow-up

a about kind maturities. in strategy about think to in talked the talk us those remarks the billion kind do million believe maturities? those about some liquidity, billion You with I near-term mentioned, you you of your dealing and or so of maturity in addressing have, plan but $X.X for $X maturities. I action of your give Could you XXXX just have of prepared addressing under -- proactively You $XXX XXXX.

Mark Scucchi

Arun. Sure,

of I just environment, very through this steps, to in is the question. think whether well point it's I the activities what advance our debt a addressing and nature And fair absolute sales particular in the would of historically preventative maturities asset reduction. proactive

So bank again far, absolute discussed, obviously, billion backstop. over The credit a as facility reduction. of provides of the $X expansion debt we

course, So there is will basis, on we soon those have market just a mentioned prepared risk-adjusted make the market potential and thoughtful, as a we to one push the reasonably maturity of to cost-sensitive. imminent remarks, the that as maturities we want move practical monitor out. with alternative. during as for maturities. sure, refinancing But of safe I But no We're, clearly, my ladder conditions and nice,

decisions So financial I generic as multiple having in options, and well that need of the backstop know operational ways for to terms our front of and and multiple on approach made. that alternative. a refinancing to laid with I it's financial have that's a kind matters answer. again, dealing be But of groundwork a our And think we've

Operator

comes Capital question Brad Markets. next RBC from The Heffern of

Bradley Heffern

production now, the you from chance to so. stay was in capital around a XXXX, order CapEx for Is outspending price be? similar floor wondering saw flow? On if of is decline let keep sort flat to there could where gas is cash Or I on the we that $X.XX what it a or program maintenance could

Mark Scucchi

Brad, start chime may this that, and is each we with Mark. I'll in.

with the think business So first generated we've framework flow. operating cash priority the outlined, is organically the I

base So the premise we our that will that XXXX plans on. be

ago. significant moment seeing a We savings. We're operations, described just improved Dennis are seeing as cost

obligations abnormal commodity overlays business flexibility us necessitates model no base that our well competing price that require as to the fact are this the environment. There would in that given that force spend. growth is asset there in all So infrastructure of our tremendous is no There's drilling utilized. kind fully of

declines, where we or of scenario directly maintain to levels. production modest doing -- question, cost could have is and capital. to So we more And unit flexibility your you a maintenance cost a there our the allow unit

So it is a possible modest go to decline. into allow production

Bradley Heffern

you guys like then but and And they color more it the like where -- could a don't priorities that Obviously, the give like you'd acquire just on right the now. where well, I shares to guess you share price you right share of is Okay. now, the debt. if are the repurchase little versus

current if stays it is to the repurchasing delicately stock going the Or debt? between it more level, a at is balanced could go be So program relatively that quickly?

Mark Scucchi

Yes.

and see now million we've first deployed billion we've our sale priorities for proceeds share think proceeds, repurchase earmarked $XXX how $X.X foremost, program. in can and thus just terms gross asset you far. in I of

placing in see figures, value acquired two can flow potential you that and those the share a via the at looking production we're tremendous the can the we program. see cash That the potential, be shares do resource said, repurchase where So and priorities. being

not which $XXX are as million. deploying judicious be we're our specific opportunistic a We're just we a program long-term to to for that So quantitative shareholders. to a with, $XXX that sheet going again, framework, and million by balance to the protecting also deploy long-term create value provide going going priority, framework but

Operator

The Karl next from question Goldman is Blunden of Sachs.

Karl Blunden

sale any it's to in yourselves result potentially that industry of when sensitivity To some appreciate explicit about I maturity wall size. important size extent, potential think asset thinking the sales about the royalty on the be guidance how though do around and the have in to acceptable standards. for NRI there and way and quantify the then Is it way? much could relative you still to

Mark Scucchi

among in royalties XX%, obviously basis $X.X above substantially and the some averaging options of of our other acreage seek good indicator. interest proceeds for Well, NRIs If that. host I at last noncore We've a are overwriting billion. months to are royalty portfolio is sold a and we at modest still over we gross There's certainly divest could X.X% just look looking that we think XX proceeds; those. around generate we have with

So I would I for example, accomplished like larger box trying of draw possibility of think, that look lack say replicating really if last what over better to a we've around the months a we're it, there's just and at something a that. XX

Karl Blunden

last And of market. That months. makes the have That to have much some you. noted been XX pretty valuations constant course debts received that the you the in Got speaks sense. I over

the at down that excess to do made of Is understand and periods around million a use some I your versus to allow that drawings decision to to -- XXX to later regard is mean point this bonds, debt, to a on for potentially the and down some in about seen size to liquidity time, we making oilier is example? extend tough in that. should basins, decision example, for with that think how to as we've revolver Just much be sitting comments for drawings of, you'd using secured in pay covenants revolver how maturities I time do considering

Dennis Degner

to have allows in debt, we a layering to seriously existing in The notes. are really credit any to future not near agreement So which revolving the begin position senior us exploring time already we've the already and of but the notes 'XX 'XX and in I discount. repurchased begun value the that we've XX-Q, million face disclosed mentioned, the at modest program, are a details as $XX between repurchase

So we there's 'XXs here maturities, an 'XXs. near-term that and continue those opportunity can repurchasing opportunistically

So facilitate a line. helps in it just that when appropriate time refinancing becomes

as the Clearly that long to as credit in commitments, it. that's in liquidity can available the limitation use there we repurchase extent the have do But debt a is to that we frame agreement. XX% pull the under to So and the reference, availability amount our not intention of all of have under revolver. bank up But of we us. just and level to just modest as

Operator

David next of Deckelbaum The Cowen. question is from

David Deckelbaum

maybe buyback. just the have about one question, just broad just I

that the it on now. curious introducing Just timing you're

that, devised? the the come balance endeavors You sheet. the guys internally of timing of an something to time. external highlighted demand? just discount some had had it duration have sort was discounted the PDP around delever that particularly over in for Just light now, -- Was you one the all curious up the this this of prolonged you Is

Jeffrey Ventura

year, efforts in part It's the been that it But first and a in balance way debt was reduction first of under $X the short this had the culmination the foremost, a plays billion answer. and Valuation sheet debt certainly being with repositioning is foremost, that. reduction.

David Deckelbaum

Okay. ask maintenance next year. the on going And then to capital into just

that capital? sharing. those sort to of million other necessarily activity -- $XXX and I'd side that inflect from in being or savings so of all? One, upside -- water sense a better time wouldn't the about we And to necessarily drilling on five Does Appalachia of guess, benefit water it the savings guess, plan, two, greater I year all-in around the in tailwinds see then $XXX then suppose D&C I that because including on water get doesn't delineated numbers have like broad on any over not so think of level a beyond you're what lower in I million there's that that just if then from lower just sort $XXX or million all you at think is 'XX of I side.

Dennis Degner

David, Dennis. this is Yes.

call, started to one things in capital I the on maintenance for of the required touch the think capital. is last we

of have to by you're more think million that think production I right the million it's should to a will, in XXXX the be to $XXX that lot as significantly an a at a $XXX to I end $XXX-million-type we at has I also with spending, million our viewing that in maybe is it may example, had closer number. do capital acreage numbers framing loaded for think kind in of And capital $XXX ramp one look now. of front-end you to responsible assessment, our program non-D&C be earlier don't view. if shape, as less. of It of land part lot something time, was held year, for of But production. kind when of you then started a we're a once the took said stronger QX, what XXXX in activity fluctuate, point

strategic then reduced as smaller has picked through up not we've also held the those just our land to that need and but leases start year-over-year spending be only activity, land seen smaller. to So get through get

the delta lower non-D&C what to So here. we would reflected capital be between and you've D&C much that than estimate

David Deckelbaum

Understood. Okay. less just this could, function activity you you're for just lower a just -- And demand just if the Is All then water basin of in savings to the and right. water? any on experiencing. color

Dennis Degner

XXXX-XXXX A water on frame. been we year say the -- this had I'm was our run Southwest four PA. produced to of a XXX% recycling of We've going three in few time probably to ago, years at that about point

of then there, to they Clearly, sharing to saw opportunity activity, team creative in their with water. had those that use. Though was So our XX% still slow total other we in there XXX% up operators. ability utilize as expand we're years, What water good an at to program by about recycling the makes in Pennsylvania. it started water more to their XX% our initiative local through very of

take opportunity there's other people's water. an So to

reporting view we our line that also we're only captured which announced excited in earlier view as capturing We year, it we but similarly So as we this that it with we're year. it a last year, And we this not ESG win-win. see about. savings this

it operators. can. the Will acreage able relationships partnerships continue optimistic to to program. of contiguous We're and depending With year-over-year those the a it with with do to we we on be really And we ability position, lends that the this? those our those develop savings capitalize has to lot itself other upon

Operator

[Operator Instructions].

to We question. Citi our will Kevin go for final Cunane with

Kevin Cunane

CapEx under your I question quick on a just maintenance scenario. unit assumptions cost had your

to down coming despite transportation maintenance. mentioned You moving

something Louisiana your contract well? just that is there is So else as Or there off? pulling

Jeffrey Ventura

pieces There to it. are of variety

gas allow can off. There's modest to existing rolling Just expire. more transport rearrange the we transport, optimize that other contract some and/or local processing there's to contracts continuing a

variety of a on rail to of in perhaps pipeline. comes including NGL off forms, it So transport moving

number that there's spend CapEx-type drive help scenarios. in So maintenance a forms a reduction of even in

Kevin Cunane

active Do and into you've down end of on you next? And guess your that I DUC Understood. guys owned it. just through fleet year then count. have drill Got the an

Jeffrey Ventura

Yes. a consistent upon yes. have just level that we -- Kevin, I really lot a I -- it's activity the have. fairly would would very of based in time we say, say

to that activity, inventory. moving pipeline in in do those So to we're in has lot rarely produce the cases we that we're we carried ground a of a ready and to fact do have once that strong have DUC most a wells. And with the

So would we're from DUC within inventory from see well. prior years you into XXXX a as carrying very that consistent a bandwidth XXXX small

Operator

to This session. back remarks. concluding for call concludes his question-and-answer over like I'd today's turn to Mr. Ventura the

Jeffrey Ventura

to feel to just call. this additional questions our for up follow team. thank Thanks and free want everyone participating I on morning's with with

Operator

conference. Thank today's you participation for your in

this disconnect time. at may You

Range Resources (RRC) 24 Oct 192019 Q3 Earnings call transcript