RRC - Earnings call transcript Q1 2020 | Range Resources Corporation

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Operator

Welcome to the Range Resources First Quarter 2020 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. Statements made during this conference call that are not historical facts are forward-looking statements. Such statements are subject to risk 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

Thank thank you and Mark earnings morning Officer; Dennis everyone Range’s Chief Chief Operating Jeff Good on quarter Officer; Chief are speakers call. you, first The Financial Executive call Ventura, Scucchi, Degner, for operator. joining today’s and Officer.

posted review updated investor Hopefully and on website. you’ve release our had the a press chance that we’ve to presentation

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

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

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

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

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

Jeff Ventura

Laith you Thank us joining thanks for morning's and on call. this everyone

like business the employees keep work review our I their and quarter, safety health families. track of our providers and we and for service our employees Before thank hard and plans ensuring while their will all the of to on dedication to

electricity field much employees world on our CDC as practicing a is during powers everyday hospitals and as each crisis. that to our clinics. to to critical supply distancing, continued and well the lives, sites well particular, In while day on to social us helping gas Natural guidelines, needed adhering deliver energy the our have a relies provide critical resource helps

hand, supporting and our community. been month, one local provided in saving $XXX,XXX One culture always medicine. equipment, lend more and being most need organizations this as those a cleaning Range’s non-profit further, used a feedstock step NGLs it medical Earlier roll-up for help life we to areas. the Range are sleeves, that produce has than our our to supplies,

learning. and we These to medical times for closer On top remote to it’s health challenging participate be and students and are communities. and to stronger industry able Range world. multiple grow providers believe really local come this in the has program, I districts protective other to in that in that technology area together our each donated our supplies of and unique school moments these during supporting

thank I frontlines day pandemic for today those and numerous each you listening to on We is to family best likely for for appreciate join to are you the the taking want as of and the many the that working Range your this members call. and the especially time case case wish us families.

to bolstered Range strategic to positioned reflected efficiency. on capital We and commodity environment. a in of make Reflecting improved initiatives. continued base peer-leading key our our better efforts these results efficiently, results The on steady maintained cost safely first quarter have and in the progress decline quarter difficult Range and structure, liquidity, the first are operated navigate

Looking believe is natural for well gas to forward, and liquids. Range an positioned macro gas I very improving benefit natural from

our margin last have find unit Range’s per improvements a at $X.XX since costs by compression expense. interest across G&A line gathering improvement transportation expense by in and items a improved These the have first Looking cost various in both and effort focused from than reductions first of cost greater quarter led resulted unit cost, enhancing in improvements and year. Mcfe to XX% processing $X.XX

detail. highlight door of some are will These price Mark at efforts lasting one improvements cycles. more these through in

quarter, XXX Range in important the decisive to as refinanced lasting taken we cost the bolster improving our first Early our unit have sheet our balance improvements are maturity to million liquidity. in these actions Just debt, as profile. de-risk and

on our $X liquidity. capital billion go-forward we XX X.X the disciplined their materially focused asset When billion program trend that have last prioritizes over a continuing Later solidifying of months, in flow. through our free the credit quarter, combined cash absolute over remain debt sales of reduction this the banks on successful de-risked commitments in Range's completed plans. reaffirmed We facility

active prices to monetize backdrop these to to improving in help ongoing We in gas also our additional remain efforts assets accelerate efforts. natural deleveraging for our the

go capital our program thoughtful plans, our utilities forward set efficiently it natural put we’ve burning together a end-markets delivering were gas at capital ranging cooking. February, resource adjust to of challenged. Looking discussed clean heating spending a and develops using commodity from to Pennsylvania diverse call butane and plans to we our in international if customers our going for using propane we’re Like near-term on prices that

March, makes this XXXX reduce XX% versus reduction budget capital plan, XXX a of Range made possible I is Appalachia. than holds level well we because per decline. Bcfe that efficiency This a per foot, the it’s in announced has by base most which also production are low efficient our driven our approaching So day capital believe operational of but and greater capital flat of in of million. $XXX X.X This shallow producer cost in

is approximately be each than our year's gassy plan. better means wedge to this XX% of peers oil replaced which and significantly base a producers, Range most to flat capital has hold production production by that rate than evidenced needs Range's that lower day smaller decline of as

are year's programs better which sustainable DUC drawdown’s and be. prior XXXX Instead, some a capital on not sizable to year relying accomplish NGLs. our leading our minute, natural we in be operational into what gas well beyond appear to a this will will is else positions efficiency Importantly, XXXX, us peer or on plans Dennis and heading XXXX into touch outspends we market to for companies believe other like significant and

repeatability for believe us will basins. time as Range's evident the over in more other become is positive life growing sizeable become this is core inventory for exhaustion life and differentiator that narratives Appalachia a in We Range. core and in inventory measured provides operators decades other long

I’ll team the it of these Range made Before how the reiterate turning Dennis, to during I challenging over and proud efforts Mark has am times.

key and all innovation deal prioritizing while making in the progress to and health one dedication the and the another. company in of safety on have office a field employees shown continues Our in the sure of objectives our great make

have stronger result. You company even an Range as made a

you to Over Dennis.

Dennis Degner

approximately in million of quarter, at Reviewing planned spending Jeff. XX% capital spend. $XXX Thanks capital the came or first the

production closed Bcf with puts maintenance delivering QX out capital of which at track announced our million, at per While production X.XX budget guidance we equivalents us end while March. levels, day. on firmly $XXX This of the at

This our and gathering of completions-related million details direct dedicated for X plan capital include other XX drilling in activity. keeps prior the approximately XX% activity, towards $XXX support completions to us The plan million capital leasing of line million and with drilling and for our and projects. for

horizontal in feet. from over average execution Our XX,XXX QX resulted length wells of turning sales to XX an

our different over first gas footage with feet the we quarter. sales to way, sales a located of at turned to of remaining Looked the lateral in position were wet in XX% XXX,XXX turned acreage area. our in dry wells the

both across strong day, Continued operations performance or existing excellent Bcf firmly of approximately equivalents field spending million from $XXX Pennsylvania our new run target and achieve wells and well while positioned maintenance per X.X production has us to Southwest time less. in our XXXX

represents feet quarters, of activity On horizontal QX, increase efficiencies over capture the with drill over and on which a operations a we allowed per in well dry well. average. XX% drilling performance front, wet approximately during cost existing per This operational of our was feet to the length In first total and last has nearly XX% XX,XXX or our year's XXX,XXX to savings. across sites, XX footage is pad quarter acreage horizontal us prior similar wells

one area dry a Lastly, the gas five lateral with is of This date. team drilling in XX,XXX successfully our in is horizontal the achieved drilling located by drilled than longest length XX,XXX our over horizontal the length new with greater well milestone of to feet. and wells wellbore feet quarter a

footage just average the a horizontal under under XXX,XXX total team well. wells of XX,XXX lateral On feet completion length of an feet XX the side, per just with completed with

for quarter improve completion and the frac approximately in cycle quarter, third a again number continues Overall, These required utilization. Water translate increased crude increase capital produced improvements per water exceeded X% and completed efficiency into first stages times. day. operations operational to capital less the efficiency in through reduced expectations of once representing the party X,XXX our with incremental stages

The as March. year, same period produced date XXX,XXX team successful to than month more to time when compared was well more most last water in barrels our utilize third-party utilizing able as posting by to the

As look at pure our you quarter. this completion infrastructure strategy our cost and reduced creative million well capital for leading efficiency. result, we cost When lateral efficient generate a the by development, couple with cost and long drill nearly with reductions, of $X existing and complete repeatable this pads utilizing

reductions from fuel budget involves as framework reduced expanded March, million with discussed, and $XXX efficiencies $XX a self-sourced areas of our optimization, in fleet original we’ve was of associated sand, frac announced reduction our from we reduced further recycling. reduction the which costs and activity, water cost As frac scheduling of XXXX budget. The capital million this such increased in electric

The under the plan across with blueprint line program. XXXX revised of a lateral second were totals reduced capital inventory XX% be year first our activity is Turned the for the front-end feet spent for to for of the quarters. while the of in to projected approximately XXX,XXX and year loaded XX maintaining capital over

is operations crew and XXXX. maintain throughout on and one capital existing perfectly up while drill we are if the this our frac will XXXX With XX% drilling a rig through of in with utilization capital XXXX of maintenance XXXX one maximizing needed with carried approximately similar our to For with thoughts and footage lines complete program associated and the context, continue current well-positioned similar maintaining to XXXX. All an year-end, program, infrastructure. into operations

operational while $XXX base target along of Bcf per to line our production deliver our a X.X Between peer-leading sight per efficiencies, scheduling of and we and with low capital clear equivalents day. complete drill goal optimization, of have capital foot, on meeting a decline,

front, NGL averaging with continue premium. Belvieu premiums Mont barrel marketing first business expand Range’s the per quarter relative On $X.XX to on to liquids realizations

butane a international portfolio during performed the contracts Belvieu, and export well increase from an very domestic generated in ethane benefitted Marcus Our Hook significant and while and of premiums. relative uplift propane to Mont markets quarter

than As from or production, The despite fell of which domestic improvements over the quarter decreasing the propane year. driven a per were progressed, improved XX% propane start day warmer XXX,XXX winter. fundamentals by barrels average the

into accelerate activity reduction and XXXX. and refinery be in U.S. that this in the expect experienced year reductions historic the we drilling to will utilization year, continues NGL supply as Given

market Belvieu already of last tighter at time bid that propane We higher a a differential to barrels at the are much seeing North East year. in the with results this Mont

from pipeline the Mariner that year DUC through per increase this and operational benefit second continue April significantly and X, of supply progresses. year X export butane realizations XXXX. with supply, decreased International demand strong capacity from Range the will propane East our day refinery export the in to strong as reduced barrel has OPEC XX,XXX our and producers became global expectations for remained quarter on

Condensate pricing strong sales quarter. during first and were the

However, COVID-XX demand second related gasoline the markets affect entered began and loss we jet to fuel as quarter.

portfolio our some condensate in market. spot sales monthly, majority annual second production pricing, we quarterly, of condensate quarter anticipate While Range’s the contracted basis weakness counterparties on has the shielded diverse and from with of

condensate continues lower to in WTI and the Range we $X a protection hedge annual to $X that mitigate minus price. be WTI form window expect in differentials movements to in strong the have swaps of

the half accelerates. as decreasing improve expect prices condensate the For while year, second the recovers trajectory demand of we of for to supply

side, a basis $X.XX during we is production, reported hedging. NYMEX which of approximately On gas including the under Range’s XX% quarter, of the differential natural

gas North the natural warmer captured good markets normal caused basis portfolio the gives weaker the our early access higher XX% those and last cold premium and from November’s weather. an to Midwest of Our winter a portion us transportation normal, than than in for East winter prices activity be to while hedging markets

Range result, on differential of a the year. $X.XX $X.XX to with remains As track guidance for its

in-part we Looking than seen is natural generation better across have plays the the holding demand in power improvement prices due role up overall it States. to ahead, recently gas United much as some oil

good in part clearly news coming the decline is large a driven the curve creating happening in natural XX shift a that what of gas basins. U.S. we oil months are oil expect production to in in structural prices by Lower the more and the has decline started The natural is gas supply in substantial to see

XXXX the environment. oil the Associated bright gas see Gas prior to light over as as has grown per decline XXXX. price into for the a set and And to second two supply that portion under X we of of X years. this We we approach current especially year as natural is look half Bcf

a closing the and section, Before I’d operations to safety. out marketing like moment spend on

performance were gains addition highlights In our similar today to in looking cost advancements safety reductions, at shared regarding the first the seen we’ve efficiency when and quarter.

The safety period last showcased our time same significant a overall QX improvement year. in the in results metrics versus

metrics worksite comparing in we’ve over present year recordables, this to same but was vehicle same seasonal year’s addition The seen. improvement the best QX last versus this ago. a our saw the challenges, to similar results reducing time years, months safety a the also period we winter In when performance period safety four

These practices part our all results commitment an deploy is by of reflect the continued safety while to Range ensuring work employees integral the day-out and culture. day-in safe that

and they warranted, information take the to systematic bring conducted the COVID-XX wanted manner. date comprised operations with virus presence an incident over regarding several were I QX. years, of employees. early the has Lastly, actions up and in Due management respond organized necessary team when began past in to leaders to on communicated Range the during situation monitoring prepared you in COVID-XX. And we to our Range’s A determined to training the Range the of

Our Range conducting federal operations. guidance. was safety remotely are and of business and in-line state the when our local, social continue Protecting team working many, with proper Like mission health we clear. distancing possible, and and our practicing our

case commitment business by dedicated our we a team safety that employee objectives workforce. operate positive progresses announce to are safely, and the we of our Due to as health remain We one single not have team our to country our proud with had COVID-XX the of the along with towards recovery. to Range reported

are on performance clearly production strong for generating safety reflect and In plans operations off our the start Delivering cost capital first peer-leading closing, complete our and quarter while with drill year. strongest a coupled the all to results our yet.

I’ll turn to over it now Mark.

Mark Scucchi

nearly prioritizing on fully community focused pandemic, Dennis remain life, we Jeff affecting of shareholder a I’m and Thanks and Dennis. daily Like corporation aspect employee and a the mentioned, of in state that every to midst capable health value. as

preserving to extend pass to reduce well debt, this shareholder as value, operating and of two liquidity, Range, steps the cycle. over collectively past enhancing terms have In enhance possible years the positioned reduce and costs capital has taken Range as through maturities, business

steps supply serve and accelerated gas, bonds In credit borrowing prices. proactively bank stones commitments resulting end by important rebalancing Range natural Range of at to receive benefit to its appears stepping gas expand $X be fact, reaffirmed better from and levels reduce for the facility, billion and and took to as debt refinance natural an what base to existing liquids demand,

and debt start Looking all back After the at Range shareholders. let’s of on first flow cash issuance costs, represents This capital was quarter, repurchases positive line including the flow. considered bottom a cash cash by million. working free first during share quarter, debt was returns before refinancing capital. flows, the deployment in to $XX repurchases, of costs $XX which million share carefully driven and modest capital, increased to very

balance we share between create On bolstering our but disconnect and share during the evidence remains quarter, intrinsic $XX.X sheet an an April opportunity the basis, million through Protecting XX Range’s for average priority. priority, accumulative value first core value repurchased to equating the shares price the reiterate price approximately less presented and million long-term to $X. to than of asset through the

have the gone than amount debt secure reduction billion recent differently, repurchases proceeds X% to asset of the less going used proceeds, approved Of have were to date, that XX% with order for and of enhance $X.XX of we To the or roughly XX% shareholder sale share proceeds in XX% repurchase to earmarked value. said plan. share in those

potential. production keep in factor mind important is of share Another in per ownership the to resource

a X.X% selling the shares resource roughly the X% proceeds small of royalty of share offsetting sold interest, repurchased with portion potential. ownership have of per After we outstanding

deliberate share under be of to the continue thoughtful repurchase liquidity use and program. We in our will

maintenance, topic On amount reserve commented during the call, committed cushion the borrowing earnings our Range's balance of I to last provided substantial sheet under that credit facility. assets base and the base

environment, in high the marketing decks despite the value very price borne commitments. we market low of Demonstrating and commodity in $X of announced reserves, process $X.X billion out a the has During a seen asset base of Range's with as quarter, price long mechanical as the highly reaffirmation arrangements billion formal coverage, challenged the a time. lending Range's of and both, a via level resiliency diverse reserve-based borrowing the

the needed in With near-term $X.X the ended with step if Range liquidity substantial to be that address facility backstop billion complete, again, to under headwinds a quarter serve as important capacity and available maturities. providing near-term for if need

is reduce stated Our debt. goal absolute to

million this basis, in savings. repurchasing cumulative million the April principal of On markets, advantage capital through $XXX approximately annualized an taken bond has realizing debt expense $XX equates a million Range dislocation $XX interest in to in reduction. in

not creating asset rerating to for quarter on ability is improved a financial sales though Range's has passively our begun. the market it prices Despite deliver choppy objectives wait it multiple and for appear long conditions. high operating progress a being first remain is focus Results priority would despite fronts. made strategy to runway, and on Nevertheless, reflect and

operating discipline this budget. line close unit continuing Consistent production quarter with our Capital capital down delivered in in-line incurred periods, budget of annual prior cadence the to efficiency capital planned our planned costs and spending for cost. attention was and million year's $XXX approximately to drive with with with

Range operating cash $X.XX costs other legacy sale items. among of fourth drove expense a year, maintained $X.XX in per competitive water by to total host from of below cost unit items, last handling at higher unit unit from per of of that quarter cash including cost, year cost first the $X Turning level the quarter the Mcfe, Lease decreased production. all-in we the last and assets and first in quarter cash

prior quarter lower from to contracts with same expire full NGL Southwest efficiently preceding $X.XX as the from in we quarter managed certain savings and as from utilization the of processing processing portfolio allowed costs Gathering Pennsylvania, a result capacity declined prices. and transport year midstream $X.XX the

to organization. paid compared that savings services by last slight unit quarter to in of the higher G&A of leaner compared up per the year-over-year to increase million on is timing annual $X.XX a on expense first Cash the subscriptions of of A first are decreased refinancing. debt data $X.XX is compensation quarter and $X quarter and the coupon result reduced recent due lower quarter. expense costs of Interest year fourth due the of from as certain balances, the last year preceding to

is better annual first improvements total, trend by end interest as in in a cash Over continue quarter others In contracts the costs. well expected driven we expense. cost is improvements expect downward time, and for expire the unit see than guidance of certain low GP&T and unit over and reduced G&A time, rates as to

In book no first recorded in of of charges market reducing quarter, assets the we impairments of There value value. based the indications Louisiana non-cash were on impairment North Marcellus.

net The in to value. test impairment to step revenue proved first future compare property book GAAP a undiscounted is

At value pricing for $XX XXX% revenue quarter net book by providing than or end, Marcellus strip cushion. substantial than exceeds the greater greater future billion

we business it the to believe unprecedented events, and U.S. are the its are supply and of experiencing contribution chain we global is value globally, While Range's clear.

We have and progress to made value. that financially steady and consistent secure operationally enhance

steps in company further place position. what be work to we to natural continue Steps re-rating gas steps a spot taken, financial and strengthen XXXX Range’s the on planned, outlook, incremental good a the industry. of We appears in company's the believe

enhance of cost significant structure to a has to operating its work prices, and running with low for price supply trends. re-cast financial to demand resilience and the transactions goal on these the created plans, for again delivered Range extending summary, In environment room and meaningful continues rebalance

you. to Jeff, back

Jeff Ventura

are to we happy take Operator, questions.

Operator

Mr. Trotsenko from Instructions] question The Stifel. Ventura. first you, [Operator is Jane Thank from

open. is Your now line

Jane Trotsenko

thanks my morning taking questions. Good and for

color savings, sustainable of remainder are The and the going maybe coming savings year finally TG&P? for question basis, are how first from forward TG&P on could some those and they a provide you on for trajectory where is the the

Mark Scucchi

Good that. morning Jane, it’s Mark. I’ll take

see that are there gliding components discussed the beginning have of and we’ve are a over downwards. processing So, reported numbers long-term in year trend think really you’re cost or and our as transport so of being I gathering to the optimized last

a for A processing third a cost unit total third has third, the gathering it long of gathering. that haul transport third. a been recall a running processing third, and a cost, transport, roughly So, third

you you does our natural Southwest through some fully The outstanding remember an processing are marketing savings fluctuate so savings but do continued like out gas, utilizing now, with see will also will job price the as as currently and periods of of transportation will see optimizing as we team we able run component, to the Pennsylvania.

first options at are not our to to mover will are You that choose Those that elect renewal reach point. maturity also to this have contracts the options or coming are and are that what advantages to extend. fruition

portions going and some quarter. structure have that then to roll goes off in with fluctuate, you it and so have recovery ahead cost quarters and cost of So, to the element MVCs capacity we small the gathering cost, just can saw side risk on allow years where component contracts Right up as on obligations prior quarter that processing the roll and down, gas processing and this and way out. begun on NGLs about as benefit talked that expire, a has calls, a we as we of to capital this

to for know can year-over-year provided, investor slope achieve. over continue the you a So a And as that’s trend year, we this trend in downward to is we we long-term well refer you as annual our as guidance that as see I trend, guidance will presentation, down. the to the far glide think time, the continue

Jane Trotsenko

perfect. That’s

NGL XQ? seeing is can to to the and on condensate and this question and second pricing, what guys quarter are it little maybe how a you The bit talk you compares

Dennis Degner

morning. Jane. Dennis. is Good This Yes

this that seeing at Mont prices are move during to capture remarks, As premiums we we’re barrels both pretty the of point we’re tackle to, and ability also to prepared start the relative tried we to Belvieu. some but this the that comfortable

on really really component. NGL stacked XX% we total other barrel of production, think the natural the our about gas productions So, X% the side, condensate on being as XX% with in the the represents again profile,

staving We’ve represents any small seen placed been to it portion business. barrels production. impacts at what off our of a and successful keeping concerns we’ve point very So, this is the around is,

quality also have place hedges us in this We discussion. with that help

about think with think haul. helps as So, about a it barrel, as WTI prices being over us XX% crude us the we $XX long hedge really we

be We the know that recovery there’s going just to corner. around

starting look recovery We’re in about that like, condensate the especially could what hear we’re and see but months to we feel and the no feel ahead that on side. doubt well-positioned

You know, and good the our comes see demand also propane when stream we on component, NGL still really other strong NGL to the barrels it as well.

On the heavier moved. our plus, the to side, component have again, able place be to at those small it as you barrel we itself. to a continue look have in And CX of arrangements overall multiple barrels represents

we we look year, for able our of – of and production premium confidence flowing to the both keep that move have high So, the be really, get be rest able able the degree also barrels, to a we’ll attain markets. as to prices to of advantage our being

Jeff Ventura

guide premium to NGL a to tack we just $X.XX. just again, that $X.XX the think And key, there. have on, of a I out It’s

Jane Trotsenko

Got and it. And production Maybe is the provide preliminary on XXXX can guys you final outlook question I if may. flat still thoughts appropriate? some if

Jeff Ventura

just about the with flow goal our high really me philosophy and a cash at and clear corporate been generating Let really and per returns. we’ve strategy level real of free share say start

XX, have we flexibility. have we is a lot of in of commitments a and at lot a slide fulfilled the there pipeline our slide of Because have back that all flexibility. we shows So,

be to and better So, which on do to NGL I gas into good tackle shape, natural position, market. should a think going or? that you in want we’re Mark

Mark Scucchi

have think Yes, I get you there that the flexibility. highlight we the

will flow. of reinvestment So, and free economics and flow warranted cash from and yield outcome organic program cash the corporate cash our flow driving dictate returns

a do that. to So, have we remain flexible latitude and

Jane Trotsenko

better. you much. so That’s Thank

Jeff Ventura

Thank you.

Operator

Thank you.

Our from next Markets. Heffern of line Brad the comes question from RBC Capital

line now is Your open.

Brad Heffern

everyone. Hi, good morning

Just the comments a asset have on made. guys sale you follow-up

very the potential longer still environment a we're macro economic the now. right term, obviously, but out uncertain improvement called You in in gas

around or if additional curious in economic deals your interest that seen I'm near see we sort a confidence sort of of if it's your or some level? or getting comments an in recovery done, increase the pins And So, if term? decrease the could you've something

Mark Scucchi

preference strive I’ll deliver hit equation fairly and at that. our the box keep the comments a than to the results try draw to Sure, to It’s around certainly Brad. a then level. high rather

So, we way. number a do have asset of under sale

been have interest dialogue. level encouraged by the We of the and

debt. can motivation see, Board of a corporate what we values. proxy and to this drive can you and to we and decrease Again, As we’re our have the our reference in absolute the strong philosophy to targets trying achieve year

So, and active that fact just have with we that of underway discussions making formally I highlight the lot that we a are optionality, processes underway have progress. would

Brad Heffern

repurchase the expect repurchase bulk then as And I Okay. the Can to at cash reductions through than Thanks. a should of call a just you as thus shares of far earlier talk going in principal program. outstanding coming program continue far in, are been – that priority? the be any capital be already? Will the might repurchased Or about comments of much has more on the where just we lower use the now. the the level like appreciate about obviously, you've

Jeff Ventura

Sure.

at liquidity look the organization. can thus of you to maximize our and kind of a far future of that think and read by the into value striving behavior value you’re I protecting pattern prudently bit the using

bias to there’s there is buying expect you So, by so we could continue the but dramatic the see, you still The a can tilting, disconnect, the capital the the represents see program can deploy and from protect It organization is still can in you to place. is and similar forward. that in We choices. options going us but behavior totality. far dollars see priority back we shares which its the spent our enhancement so that preference value how when fashion,

Brad Heffern

you. Thank Okay.

Operator

comes Thank you. line the Simmons Greg Energy. Tuttle from next [Operator Instructions] question from Our of

Your now line is open.

Greg Tuttle

for you Thank taking time morning taking this gentlemen. the Hi the and question.

what kind operating leverage, by to is being leverage if ask wanted indicated any meaningfully long-term higher, then transport firm I the of the NGL which growth and prices balancing for strip? currently to returns, So, first and strategy move shareholder gas

Jeff Ventura

the our to It’s and and I start level corporate free me at a return. have answer to is Range know, we're we let and think accomplish real clear very high Mark. to goal same trying about really earlier, and and you been strategy Again, share at philosophy it per I the flow generate but gave turn what cash

that the growth. return or really to high see So, philosophy, we need to with benefit don't

are prices So, higher. significantly

then generating first Mark? that direct We’re balance to and we cash the to We'll look to expand to cash there bolstering free returns significant flow. position shareholders. will sheet from

Mark Scucchi

Yes.

XXXX we we far, I so debt That's is think reinvestment that this certainly reinvest year generate about organization are reduction good corporate trend the philosophy the go we and this highest as a bit. with flow. reduction free using forward in flow of it’s redeployment and business the intend the in XXXX, debt accomplish think and to a drill organic cash through a whether returns cash self-funding that the to

we we the is the throughout place be, where cash target sheet balance may what Appalachian the ultimately. forward to Once natural about opportunistic is, meet where with domestically elect rate can think on certainly always then the the to cycles territory, inventory maintenance macro, price as and cycles gas wanted core and basin that going call we foot, what demand, acceptable we right whatever whether be And and be free necessary what internationally and future can leverage the but that’s reinvestment on our be the and we front about in flow the generating think may maybe

a us total choice slow depth our in the good to and to reinvest how corporate inventory puts perspective how of in given You very know to quickly optimize reinvest again our of returns. or place that the

Greg Tuttle

that’s Okay, great. Thanks.

is, XX through I in step or some ratable is year LOE occurs through continuing if XXXX, down, look am a move declines that then curious a timeframe Slide and here, that question down specific lower specific Second I at there a that curious, GP&T is so I'm what if there Thank that? each to shows what’s and is driving you. moment step as

Jeff Ventura

actually two. it’s of a combination So, the

recovery to there So, XX capital component, on it it down. year side which get a just, the so, gathering around is glides or you as

in hub-and-spoke ago system back you XX So, XXXX Pennsylvania. were build-out think the timeframe, beginning if you years to gathering type Southwest

will, the but a piece you with if anniversary system. again first of the smallest the then development at now just earliest you're so So, it’s

increasing it’s forward each year step component of size we So, on system. that ratable, and but as an

period ratable, away. over up dozen the somewhat long-haul that increases years. come is it transport Over on time, you also drop can options that So, next but of that it have

dates there evaluate step takeaway functions when but So, Marcellus on that if shaded Slide you glides you is first we which our us can optionality, to utilized production the in capacity, time than extend not long-haul optional hit requirements blue some determine we economics the see we FT but you in at XX% this the above are can at point giving XX the area some, whether renewal have the deck, look are and this. greater as then fully down, there that capacity, and or takeaway shows

of combination a the it’s So, two.

Greg Tuttle

much. Okay, perfect. Thank so I you again. appreciate it

Jeff Ventura

you. Thank

Operator

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

Jeff Ventura

for want on thank participating to today's Just call. everybody

Operator

conference. today's in participation your for you Thank

disconnect at time. this You may

Range Resources (RRC) 1 May 202020 Q1 Earnings call transcript