RRC - Earnings call transcript Q3 2020 | Range Resources Corporation

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Operator

Welcome to the Range Resources Third 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 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've the Chief for website. investor operator. joining call and Hopefully, you've

also filed with non-GAAP using certain note, XX-Q can tab, our on Please our the referencing it available We or measures SEC. on website the access Investors system. be It's SEC's today's EDGAR under call. the we'll you

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

supplemental over our in on information, Jeff. For measures. website cash and posted call additional calculation the that, other we've the to assist With turn margins non-GAAP EBITDAX, of me to let tables

Jeff Ventura

morning's for Thanks, everyone Laith, and thanks on joining call. this us

and positioning As our balance we for efficiently, our return capital business, strengthening structure, our with more of are cost intensity to shareholders operating to ultimately by the our safely returns capital provide to industry and lowering sheet, and consistent company the our Range company improving positioning matured, the capital peer-leading have shareholders.

saw efficient of debt lowering result our and disciplined streamlining The our capital North reducing maturities, as business and continued a this, quarter progress towards spending. of full third extending with the Louisiana, sale operations budget, year

means. we more view looking companies a for consistent In holistic addition also to sustainability what to providing believe the is returns, market more of take

leadership. requires For our environmental industry, we that believe

for foreseeable more fuels. an world as front, advantaged future environmental the industry moves the natural towards position today has and the On cleaner, efficient the gas

water discussed best-in-class has environmental which on and third as Within gas low-cost emissions positioned pioneering our with metric report. report, industry, companies million There produced, to believe resource E&P an in Appalachia of X.XX all the most per our leading several recycling are abundant tons within sustainability is intensity class-leading we Range amongst and research. Appalachia equivalent standards, best highlights in recent an advantage efforts including party is the according our as feet cubic globally natural

target independents our Range respect targets XXXX and to net by rather addition, separates zero from In emissions with of objectives. other environmental

it of we this CapEx, As generates and strive key where importantly, be There environmental Range's with maintenance sustaining operations capital a is returns. peers. believe to and our maintenance I achieve that capital starts goal, reduces differentiator efficient all capital amongst several intensity ways higher can efficiency capital are peer-leading footprint measured.

you and As companies the value our to enterprise an value. just range, low to and million is at than few equates that maintain maintenance only X% value could less very capital one XX% investor, of spend look facilities $XXX land of including With the that in enterprise enterprise production. Range of

provides Mark production us and and a Another operational base in per the $X look that we've of on discussed improvement low $XX flow. elaborate repeatable foundation unit mid-cap I amongst improving top-tier free advantage, E&P few is core efficiencies of cost we'll Marcellus a top cash $X Mcfe, a is where sizable capital that generating This solid cash is unmatched decline small per of a The spending cost yield. on companies metric costs spending Range inventory. for that. low but year a the were able peer-leading flat this a best-in-class capital our focus well Total results peers. by past our again this production two average amongst third Appalachian minutes, reduction intensity the to focus of the savings a driven last competitive that XXs operational is XXXX of in cost time and million year, such improvement quarters quarter Layered million achieving the reflects flow our its can which laser for per for as organization-wide cash $X.XX sustainably have substantial than full hold reflects third level say and capital low Range complete well in seen efficiencies to sub-XX% structure. commitment where discipline. our on Being that our objectives less from able consecutive continue the year will from capital, of result for the exactly and board we every generates last efficiencies. a is on to have we per plans be while across of of year to cost budgeted, will in Mcfe capital the operational durable

see of since low pair and requirements and result. cash is have that gas generating to midstream acreage years capital natural year's with backdrop the the per and improvements sustaining and by last $X.XX significant also the benefit $X.XX in XXXX. in a large and maximizing this will that unit free continue per of see far our We we average position improved This line year beyond. cost our When a for is already a we Mcfe flow versus of NGL blocky infrastructure thus XXXX item pricing, end GP&T expense Range Mcfe improvements consider many made allows as we improved the for XXXX to

the as sales, year cash billion leadership Given that along In than expected capital unit margins, our XXXX, $X.X in potential our well Range at on free consecutive targets cost late to enhance range more asset as reduced and our flow furthering organically absolute fourth with not-too-distant funding position near-term on absolute this leverage reducing put has focus range since to by we'll cost, debt. debt continues future reduces to improving XXXX the program debt. the meantime, that be Range

to remains free flow, turn I level Range reiterate want to generating to over cash and committed Before sustainable things XXXX for corporate strategy beyond. I Dennis, Range's returns.

operations. NGLs, considerably and production cash forward maintain remains improved capital around ultimately gas that's levels XXXX will use in current be core program Dennis to This to years a flow which flow strategies, free to our competitive the cash seek curve marketing growth. among and now a turn will requirements, critical Range year critical cash any return Range time, other is market prices this we and long-term and competitive importantly core of a out to XXXX I'll sustaining debt shareholders. While optimize cost our below discuss come not we will inventories. believe result incentivizing sustainable believe capital price. over stand even for as Over peers this natural structure, and a reduce excess similar as multi-decade inventory and low the life their our to to flow operators have it exhaust -- Instead, advantage to

Dennis Degner

Thanks, program Jeff. spending maintenance The annual so, as reduce doing of in organic a focus with capital further sustainable as operational possible, debt. Range's align to cash and XXXX is to efficiently plan deliver our flow

sales into levels X.X operational of of well this. of located of dry with million during Production third consistent along third spending the approximately completion control turning assets exceeded wells our our And and commitment XX Southwest quarter lowering objectives. to at Bcf achieve for Pennsylvania. these from both year discipline team our across our production the time wells field and North cadence, acreage Our with in half the Louisiana new with and sale mid-quarter. to out lateral taking footage Contributing run remain our QX the strong quarter, to quarter account expectations position. the speaks our $XX for to per production, cost capital day, Production equivalent the closed by historical include performance

for on the quarter, for track Our operational turning the to the puts us and consistent the our rest in year wells will communicated achieve program XX seven sales to year which is of targets. in with fourth result turn-in-lines

benefit portions be commodity Throughout flow to the curtail. levels and year, in rejection beginning infrastructure will story maintained react a flexibility outages curtailed multiple environment price. We've a evolved challenging our on to to combination depending year. created gas. the low strategically in Appalachian the Range late across a gas the for XXX the managing During production the price quarter, of production deferred response the per weak much up cash basin more Based forward be quarter, In and the natural business improvements scheduling produce to on portions of prices the levels expected with of through these to to cubic of or a extraction of price whether significant than gross September day to ethane running maintenance as of October. seasonally accretive pricing coming higher from has production during the pricing to expected or second are million feet and of half go field relative curtailments curtailments value both months, incremental in to receive in decision

XXXX approximately and key year, line to those and in our activity one better with operational our I'll quarter Based in level well Reflecting the for QX, we fourth falls for quarter plan on fourth in addition the when us returns in turn-in-lines year-to-date achieve results approach throughout pricing our while margins see spending in this production delivering program total at/or third for $XXX per and horizontal million. now to quarter, X.XX and in adjust methodical late Appalachia early was million. spend equivalent as winter highlights capital with year, cadence In commodity consecutive fourth the projects. with in current shift the budget a possible spend improve XXXX rig three into quarter. will This the season. carry full -- capital line the coming In Bcf third $XX day. fourth out with and below for will per Bcf approximately quarter spend up year. year, crew below for close This quarter the capital maintenance one This of for curtailments, XXXX. at adding activity quarters the over is for X.X first share year with totaling production peer-leading spend few Capital for the forecast our a on at we the day both equivalent forecast align the quarter us efficiency. prices setting frac and actively on higher our strategic $XXX capital million forecast will

and of and practice continued lateral our consistent use with the we've side quarters, On prior pads. long drilling of existing development

existing utilization pad with structure reutilize majority with this the With types capture the Range. is we strategy those existing fleet, sites additional This asset our acreage sites, advantage see for this development located have roads by reducing production. Range's of the total pads. quality our an economics, coupled teams. cost single acreage and fracturing creativity operational was infrastructure. Couple of initiatives respective repeatable this as operational capital for production savings large Thus, driven quarter, third by now, for and foot efficiency our much as enhance the with development of an per capital on durable, efficiencies. our well electric high $XX cost deployed and Appalachia to on position. During we us years allowing is activity basis several we and of a for and our position make just contiguous These That the project not of but

positions produced Even wells were a drilling equation. a laterals to drilled To of of horizontal unmatched across quarter To activity remote our teams, four while to is be Our effective personnel must in successfully resulted this, support our successful hard efficiency operations. But the consider operational footage barrels drilling well over laterals strong dedication a repeatable. Range's third-party has feet of be repeatable were our operations cost produced remained directional team in wells horizontal costs and part third-party efficiencies to efficiently key of side wellbores deliver drilled reducing XX%. and long over And costs. minimize we safe an This horizontal with foot in third Southwest of capital quarter via feet the XXX% crew as X.X than one drilling per wet several XX% and exceeding XX,XXX long year geology performance $XXX reducing this additional under by well. with in dry, to to acreage foot Through water water, XX,XXX in addition facilities XX,XXX more year-to-date and note be support versus and while you well last drilling average only utilize quarter, of work million all continues over average that feet. on-site, of to drilled link capital frac costs. per results, drilling water able ability using the quarter our achieved the per lateral including increased When of single driver help PA. and type was the our drilling our the all third supporting showcases the lateral for with utilization super-rich

model Our reduced by was just report. million completion That initiative. is by efficient produced resulted million the cost $X Range corporate water our for completion third quarter, than operations which of under water our reduced repeatable XXX% a Range's more in year-to-date, in overall and recent highlighted $X.X cost our sustainability in XXXX, reusing

captured In accounts to to for for add operations, water $X.X through addition savings cost completions our to sourcing continues and the reductions more million captured year-to-date. sand our than directly

per with As similar we've line per durable was coming position assets and are lease creative in workover removal cost associated capital reset operating time to these and see reduced the gains as Mcfe, lowest expense field LOE at the operating strong for keeping and Cost and third driven maintenance in to our history. production we earlier. our by less repeatable. well with quarter saw foot long-term portfolio longer in continue in in was drill than lowest Range with durable activity Appalachia. complete legacy in mentioned Range's expense equally our we savings Similar a which the savings, are in program, reductions Lease efficiency delivering in run initiatives was expenses. leading bar $X.XX the This no that

supporting gas storage day we gas gas as gas levels of forward see the return moving natural natural reach sustained plan returns LNG activity the to incentivize improvement marketing cooler prices utilization third in below in year to front, from approaches, optimism we've operation gas XXXX to to normal is to by poised end quarter, to in season offset falling for we near a basins for And and service. lastly, and calls, the to per earlier the Bcf believe on prior storm a after X full forward. weaken the associated On infrastructure and an weather and starts depleting pricing as We in the as is in feed XXXX. touched gas complete curve mover needed our both declines. further

quarter-on-quarter. third liquids U.S. of side, the NGL On were reports demand domestic quarter preliminary flat

up While XXXX. are continues quarter year. supply X% impress, to NGL September propane as last the to X% international year-to-date U.S. demand was exports increased versus by of versus have period reported third same the

of quarter spending to trends demand. production remain increased NGL aligned in challenged better chemical supply With and that industry this decrease was actually similar. growth was of and as ethane are the saw year-on-year, is with was by barrel Globally NGL third driven cash X% However, butane year-on-year supply, of a demand flat. propane estimates supply recovery robust down entirely flow. associated needed satisfy The remainder while

Mont Hook continues result a premiums Range balances, tightening the NGL As to see of Marcus at these healthy export relative to Belvieu global index.

expect we -- tighten CX+ declines ahead, will demand balances and to prediction Looking additional U.S. US in continue production NGL both with domestic increasing facing exports. ongoing

opportunities will will and butane, domestic to Coast. now XXXX. of LPG capacity to as international Pushing value, optimizing set to With first prices to this fundamentals X and the export further onset sales portfolio LPG than expects new Range stronger in of butane NGL premium in ethane recovery tighten more PADD capacity balances the Range. realized XXXX. and respect becomes Mont are boost operational. the expected recovery between both increase marketing to and prices our to These incremental in generates full environment, million demand strengthening Belvieu. domestic its XX% price domestic that $X to ethane maximize for moving stage In requiring by the to propane simple into $XX quarter and domestic and Global supporting new per context, ethane capacity continued and for flow basins over propane further increase year for support to create winter from And from export additional Gulf NGL barrel per ethane a ethylene international differential cash markets add demand. levels New ethane just a

and crude have quarter-on-quarter prices Range to Condensate June. price sale the condensate. in to almost of a super-rich of since quarter. during with was XXXX. the experienced trended condensate in Consequently briefly the Production XX% area lower increase lower North during end Turning by due realizations improving the activity sharp Louisiana

price condensate in and differentials recover. tighten transportation to as fourth to production XXXX into WTI regional expect continues while quarter to to We demand for the continues early decline, fuels

quarters to with million incident Similar reductions safety promoting Range on performance By line Before compared just closing, safety unit working team's reportable has in marketing recordable with safety well-being rate one efforts meaningful on improvements and our the our key focused ago. year. our of two preventable highlights we performance. empowering environmental third to those a out prior Range's reduction our share continues rate miles same to falling dropped engagement improvements workforce, both enhancing incident with Similar workforce. throughout the along in the a and section see performance incident to location to amongst total to continued of the results operations time by with and to our location improved on each safety the few below X.XX I'd of our contractor seen year safety as period to produce milestones show And a per continues consecutive for commitment incidents like a spills reduced vehicle our environmental strive operation. safety results Range to similar capturing dialogue year supervisory measure and

reductions. now trade This quarter momentum to discuss especially results safety the upon it upon through fourth in prior the Mark is and maintaining environmental to cost financials. our generating it existing in third Our as from over advancements and pertains and the to capital and to quarters I'll levels Range's is build reflect we'll our efficiency, the build improvements ability Mark? a through XXXX. quarter production hand peer-leading further while performance

Mark Scucchi

Thanks Dennis.

business be call, trends situating what As cost third and quarter market the during reduction, appear discussed debt profile debt natural reduction, and continued the our for enhancing coming gas for the NGLs year. on the this fourth well be maturity in of These the to so quarter and liquidity. Range continue far themes encouraging signs managing to

the dedication refinancing by These During facility. to several credit the all with divestiture launching the Starting both Range and proceeds capital bringing focus cash possible to are quarter, and another liquidity of million unit of proceeds structure with was costs improving effects quarter ways team. the net by marketing quarter last accomplishments sales lasting results by in asset were for fronts, in debt, on a number business. third and maintaining debt reduced $XXX net Range strengthening the improving quarter. There were the in this busy transactions that closing compared of reaffirmation process Range's outstanding change bonds the the and lasting due immediate

we revenue First, after date after the for the with the of time the and the of closed effective net production closing approximately on sale Louisiana proceeds received million difference sale. North as investments $XXX

retained retained stated Terryville this will totaling objectives payment last year North given liability publicly costs The midstream accounting through through we case. reduced discussed quarter GAAP midstream ultimately reduced obligations. incremental $XXX development may valuation acquirer, be portion obligation of of to a the the the XXXX of asset be million, by was and of and we during recorded Using obligations. certain we the believe Louisiana future retained quarter the As prepaid the $XX.X proceeds, The Range approximately actual million.

prices, optimistic the majority to to the the $XX makes represents which to gas us of Additionally value. million upside natural proceeds ultimate linked to commodity about contingent up Range payable

compared by be Cash or costs gathering and results from the and being and lower million on has bond materially worth processing Range facility and billion, Lousiana maturities. offer Consistently from and have reduced out evident capital during the from close, costs was CapEx. from is Range operating balance improved should we transactions consecutive transportation sale XXXX $XX market for investment efficient lower items better-than-planned the decline lease It continued and in almost at $XXX the third our addition maintaining to months our to were sale are leading and onetime well Southwest by to pricing miscellaneous Appalachia transportation ways as the quarter improvements or its cash meaning cash primarily year for a in costs lower the achieved natural while proceeds the consecutive in quarter-over-quarter proceeds We and remains percent $X.XX for total XXXX preceding open refinancing annual efficiency total breakeven sheet. benefit relates These Compared believe behind base of low gas which offering $X.XX a well months in lower processing will year successful total unit reduces reduced cost of $X.X of due return transportation as year-to-date, capital These transactions totaling Savings notes spending to up improving million higher these due together debt is unit of in with the the and levels X% credit in million GP&T $XXX year capital renewals unit earlier the $X.XX cost contracts quarter, with due spending and the spending which as and with the costs continue close costs. as lease with given combined transport lower service and certain third service The efficient third lease continue In to particularly, this by to maintain of unit benefit incurred an million approximately and representing program NGLs largely under these in X.X% proceeds third G&A and third line largely liquidity $X.XX reduced capital and Capital of to of through expenditures of costs, of for operating operating maintenance improved improving declining portfolio. driven the gathering quarter, $X.X utilization as due processing, per properties lower to With that cost gathering, last to lasting unit team. loaded $XXX costs. divestiture costs of transaction costs financial performance funded total, look costs. of costs billion. nine cash strong represent the for end quarter balance the total quarter increased structural targeted the a nearer-term a sizable bond noting to further. certain to timing tender of heavy focus and we a with performance related the us to transactions the during the repurchase fully balance expect discipline capital six year operational debt costs. the unit for data total well costs over annual quarter. demonstrating aggregate sharp we as last by improve $X.XX to guidance and capital closure unit better-than-budget through legal

rates time exploration improvements is costs GP&T feature contractual to expected extend terms on calls, based element prior specifically over transport unit in on capacity at have drive to reduced noted other contracts on release economics. and contract the based gathering we option or or one the of As advantageous existing

priority While remains it business. progress, a reduce to our further derisking further debt I'm with top Range's pleased

with are its to XXXX, poised business economics promising cash for rebalance of our ahead and free investors targeted. flow generation Looking Range significant the

get costs unit spend If little the arrive simply economics. quarters of million maintenance take we cycle totals to numbers to full that $X.XX. production per Add $X.XX you year's reported a by real annual Let's using averaged unit. divided approximately per Bcfe at simple Cash capital XXX to over over the last capital this $XXX two math That the business. Range's unit. potential $X.XX make illustrate of

$X.XX in assume billion flow it take example, the from math, to the for $X and nor As Range but free and there reduction. than have factor this costs. debt are or cash contractually potential Obviously, of capital in does and per efficiencies and due uplift account this receives cost $X.X unit items greater year NGLs that flow illustrative changes periodic the cash impact working you affect one-off business does positive capital additional example operating free the that expected an not price realized made into for declining of year

returns As maintenance with expected is in see U.S. levels production Range down around you exports natural activity for significant most LNG to much returning demand projected with growth disciplined drilling materially, be operators increasing more potentially at industry the positioned and leverage not-too-distant transactions all and have in reduce benefit closing immense our because target material on shareholders This its taken can by strides, of of inventory is including to gas and the or cash Range's achievable shareholders. to future. the the for eyes significant value realizing we with

represent a Our been over asset per our enhanced to Appalachia. on that focused inventory strategic have the has intrinsic That primed in to reducing the resilient preserved share a We been and improvements believe maintaining and both liquids by also diversified the of two and year. years actions a pricing and in program. enhancing this taken data-driven strategic believe on points gas hedge includes in natural basis portfolio actions positioning as Range base. consistent business last inventory large We material customers paired in Range value and with of more while progress quality a pricing. natural risk participate set holds and gas the portfolio Exposure of steps

the was of a during prices. positions participation On you'll third rising for balanced prices. that added XXXX gas quarter in and note we This to into the management risk rising approach hedging, topic natural

significant hedging steady portion XX% we natural have of a gas decade over a practice over of For production. a

as While to market, rise year balance based clear through path we common unhedged linked to Today, have lets over positions. higher range or glide unique intentionally hedge course remaining higher moved our the prices on pace data hedge price Range a in production in have through of adding indicating a cautious we through which our well a book the gas participate prices prices peers strike as at we the sales. in than XXXX's natural add a positions needed that ethane we

which of have for the In tied the through addition, receivable majority is gas the prices contingent we sale, to XXXX. natural Terryville

the achievable work same us through across and in in value business highly you. the is from to that to other forward to benefiting and meet but toward of requires shareholders The will and will at to investable to cash going believe structural that while XXXX beyond in to be gas a We we back business demand. market we flow the that natural pricing all not for hedging to resilient supply independent what return Range production exercise change only sustain well-defined objective offer in believe producers protect prudence to cycles, be rise Jeff, compelling compared industrial order daily sectors. a

Jeff Ventura

we're to take Operator, questions. happy

Operator

you, session [Operator Mr. Silverstein Instructions] The will is now The Josh Research. question of first Thank Ventura. Wolfe from question-and-answer begin

open. Your line is

Josh Silverstein

Yes, morning, guys. Good thanks.

on morning, the on talked the of good you about of just subject that. subject hedges just keeping Just the –

hedging pretty environment. was the price you to guys why winter? like it that opposed mentioned You rising strategic the did months aggressively this added maybe looks rather there as course I'm in the given more the than the of hedges wondering throughout year summer it go but around it you aggressively just

Mark Scucchi

one. lead Good on morning, off Josh, this is this Mark. I'll

as during scripted portion. I So mentioned the

not in for in and of was gas, course every data-driven off the earlier We balance curve it look natural rate is simply There It's the curve forward that analytics. ratable where intend We and premise not a to the is be that there seen, data seen on If in back blindly. now over the by responses to data hedges hedges the That's at we protect producers. And the rational to judgment lot behavior levels hedge path, a in you've the glide the it’s of a just of looks year. levels maintenance becoming unsustainable. we decision-making of at was as programmatic. see. program. sheet based business. significant year decision-making underlying year. which capital the What a But protect the portion common the shape the industry we've It's kind the rational and involved have producers. add with theme adding we by the We of do the

began we into hedges add out to can re-rate of So Range risk with in, management. levels as that more prices that began to just thrive prudent

little to exercised based years. to continue with off what the a but to approach protect judgment prior balance structural rerating in and take in slowly looks the going be might we retain exposure continuing So than just we'll curve the we more also forward. that in moved data have improvement to to bit And sheet, price that some

John Silverstein

it. Got

you're Okay. you're there more And on open the there. bit into not bullish the walk Can the price current yourself fundamentals side that hedge little why guessing structure then, you propane did some maybe ethane on you side. through the and of I'm a seeing just maybe environment? leave supply-demand hedging

Alan Engberg

I'm Engberg. of Alan VP the is This Yeah. Liquids Marketing.

start So I'll the just on off your about question fundamentals. addressing

ethane. fundamentals start quite are ethane. recovered fully or So, -- in of in with actually that's The -- being to Pad close current on in strong and terms roughly looking ethane we'll III. available with We're at the the Permian

force year. the really have That's major coming U.S. demand and are basins in the going into online ethane to outside of this out Coast. next actually Gulf that's demand recovery the that center the of We new over of year of rest

move the we much floor and ethane, as on price inevitable. pretty actually going to up being So that see that's actually

So based which plus Waha a a Permian that hedging, TNF. on level respect at call under, price, is the of some is ethane, was I gas with actually now to what the would price -- forward off right fact, in curve a floor

wasn't really all attractive from just it a hedging perspective. So, that

will is say, at to view look five-year the I of range; about days the it been be of added actually around stock with at propane, much curve low-end high-end So our hedging near overall that Similarly, have well five-year the million at supply, the end summer, is to injection we which million barrels April season, more We catch for the the is of September, XX through for actually if going levels. we last XX people looking barrels. we the during they're you They're although that the which the of propane the defined forward, and conducive going year, which would during point. propane, up range. the stocks, eventually what at is below, added added fundamentals

where we higher It's So a the than been as improving. last actually we've it's to coming was and was demand for demand where higher in time, on second strong this year propane, of and again, up international percentage at continuing relative pull result, higher the The then much a it got -- propane price, see higher basis. crude fundamentals than quarter. it But have type is seasonal now.

for So for a And provide better better move rest the year. the hedging. opportunity as overall we the again, is going we'll through view is that the forward, of pricing propane

Dennis Degner

Josh, Yeah. is Dennis. And this

the to something, for adjustment earlier as mentioned flow XXXX. for our we sharing here NGL to bolt-on in in basically million see adding extra every to Just -- for prepared we $XX remarks in dollar component, that cash Range Alan

into as view and a certainly align. could accretive Alan once us be have certainly look says, that we the and XXXX pricing So, we fundamentals starts the that to as for

Josh Silverstein

it. Got

a whatever Sorry, on maybe you're to you out? just start Is guys ethane, there rejecting a quick price take which follow-up there.

Mark Scucchi

versus A a I'll jump using of -- So, exact the on lot a certainly they morning, FOB? of one. regular difficult you with during an of We ethane that to to is? of to do it it it's what curtailments quarter. compelling flow about at but in talk do and present structure as because it Is for involve transport? additional this it sales opportunities advantage remarks on take look basis. the point in has story kind price, when does Is gas cash able us that it be us us themselves was to for natural pricing relative to opportunity the heard

Josh Silverstein

Okay. Thanks, guys.

Operator

Our next Weil. question comes of Holly from Howard Scotia Stewart

Your line open. is

Holly Stewart

gentlemen. morning, Good

Jeff Ventura

morning. Good

Mark Scucchi

morning Good

Holly Stewart

first fairly with curtailments that the probably Range a in curtailment. kind of starting way. This least about one material the Maybe talk we've off time just at is of seen

or the this your just based in talk something process? you pricing, can curtailing So, changed on to made maybe about has just production? move Is view you that

Dennis Degner

Holly, became of options the were us our is that for there really of just pretty rather just September When at you curtail from has Dennis. standpoint. to it it October, been call a accretive say and look than balance it Yes, maybe at good management where production over pricing apparent in-basin let's some production we this look morning basically move

or environment. we year we that to commitments into the pull where maintenance look later be we we at quarter took had may So, when opportunities things this a considered pricing have improved that

October try other we of a using with you outlook shift just where bit $X.XX, $X.XX say that supported scheduling you lower proxy, range. environment. that adjustments reduced the some a lines to again slightly where sub the $X to being could now using some November's and is of that $X, cost at of commensurate getting around being at the at plus see September production When start MX and structurally out So, our look October all as proxy, framework for also was look turning of being in curtailing as of let's price a in line again And can looking potentially it activity. us some

So, those key as see to well. of October the as September the was certainly end when pricing month. well. improved started we opportunities some daily of in a toward we structure curtailments advantage We But took saw

balance supporting flat Mark curtailment. just and We So, it at business a certainly as our look the sheet about objectives talked earlier. wasn't further to wanted

Jeff Ventura

most about goes out our that gas point goes out of to the basin I'd out XX% of our of of gas basin. like

Holly Stewart

Jeff. good Mark time. that And talked roll as follow-on point commitments has Yes. maybe about a the they then and No, to firm that's reducing as over a off

just in or an guys or line improvement think the so the over I so. last $X.XX year highlighted you GP&T

balancing weak production I very maybe is the did guess still kind weather even with shut-ins we those of as comments basin in rolling pricing in. have you that So the just

very FT process. talk I thought fact MVP of there's do you due? kind the rolling fact pricing thought to generally comes the major balance really weak. is epi a we keeping that the new If as about it this the with last of how pipeline the maybe off that So, with that some have remains just

Mark Scucchi

Yes, good question series there Holly. of

So, couple let down me into that a break of pieces.

are fortunately Range we utilizing our for fully So, infrastructure.

fully our produce XX% like forth So, the Midwest to is going Jeff and to the of transport long-haul is Basin. transport Gulf so We out firm said utilized. over

that cash transport curtail because that to just about there's we any utilization left portion So, full that basin leave allowed into optimize a which our selectively optionality talking flow. we that that's to not us And had given at sales built business point. did in were in-basin long-haul unutilized

to your quarters. have firm schedule capacity transportation hope the point So, we we in shown prior a on

Range the extend will through option maturity the to over you to next exploration get the holds time As if forward dates few the roll do years But base capacity. those. you you of

backs economic achieve simply or that the Range better that and we endpoint So that better represents to a is option to call at Range it price economic, or on sales more net for the in the we an there make and an retain Range does out exist capacity still coming still base point interruptible unutilized total? available capacity specifically of Is that basis. there the just the excess on not that talking to could and access about at basin

capacity So, choice. within be due come they each for completely Range's as those will of piece decisions

then So, to choice today have have have we what position utilizing where it's we great in options. really and be a the a fully series of

I time into there is So, One say control a our to that costs gathering declining is the over gathering due time? over that, margins. thing still for and to also the and transport, declining improve but processing that options built declining costs would represents potential though cost run

Dennis Degner

tape us around the it's MVP. forward see of us When XX months. XX holding takeaway. maintenance-type We you flat, activity XXXX, is see current the just when of totality. of in room let's you this bolt-on plus Bcf. takeaway that's local Holly, X overall somewhere we the But to us XX look still predict, today, there's discussion say to When in just Dennis. here. capacity we roll really at really just production that that, with about And really the MVP, X additional, next for production of a Yeah. neighborhood demand, basis numbers capacity and along beyond And a around minus Bcf at and without we whether but others just about talking or for well. of aligning Bcf Appalachia the total look see this well in pretty to with quick this you lining Certainly actually kind see with harder levels

dated So most build that promote more we're that to there. an with strip, and the going couple now have the And -- in infrastructure. that Again, you've a improvement Bcf. MVP is structure of could to got see growth backward support to likely today

Holly Stewart

of it. fitting what bit to maybe And maybe a of me good M&A we've kind question other for gathering Maybe quite on, just seen curious and you kind want seen No of Jeff. we've Appalachian one for, Range maybe don't you. a M&A. Yeah. certainly is just and see I consolidation? Jeff the to this views Thank thus Mark this into of could lot, lot where That's you've start on I'm mean your in I Basin? point say but popup. a one the processing. seen far

Jeff Ventura

in a Yeah. industry, Yeah, think continue it. we've see seen to of M&A you'll the lot And recently. I

transactions certain that industry, type seeing for will continue again of as an down I thing. and in I that helpful think You're supply-demand path, That Appalachia. is all think which balance

inventory. out But to shareholders. open to level, best back is whatever a if So specifically, commodity for And and today's record in you let really a we're Range in pop in I have a environmental you you cost, start, high have a be when Range commodity environment, performance. me to a for and track business, strong think of want to we're again to low obviously business want large

Range best kind you drilling Range, well then, I critical. have cost per very those And of below of if we complete think $XXX foot. in-basin At down So zoom we're positioned. are the the

in decline X largest base maintenance lowest at Tier the have basin, and We lowest XX%, inventory. than less capital

into against as it will well. think if think when free a cash forward, yield E&P I you other report So I or flow of based I think And third-party on importantly, oil report fast our look do emissions August we generate against at kind of really in sustainability out and we XXXX, be data, competitive sectors latest any very And that the gas XXXX companies. -- other competitive have company, we data. that according you we have third-party CSR what to put lowest

So we're shareholders. is for whatever best to for again, Range open specifically,

cash basis. Whatever us free will on in be a do see accretive will very, we deleveraging. we'll And focused. cash basin, be You'll flow stay flow be

So that's kind it. about of how we think

Holly Stewart

you, Great. guys. Thank

Jeff Ventura

you. Thank

Operator

Dingmann Our next of Truist comes from Securities. Neal question

Your line is open.

Jeff Ventura

Good morning, Neal.

Neal Dingmann

question you you around for XX that Dennis, job. guys have returning you And past good Neal. morning, in My existing pads. talked about a my Good first part the is to done slide

there on part or is, you just question there, the that save goes deal. definitely a such and offset as of my are not basically you as -- you present infrastructure shut-ins that plan or things challenges, your the big but issues frac, wondering, Just -- don't that's

Jeff Ventura

Yeah.

of long-term When perspective. at wells they're areas, cost of kind all drill have start. you the And the then, from look a me and we long-time. performance pads for and us and team that pads a there. we will existing yeah And great pad let for been issues returning any there one. in at So the I Dennis this it we've haven't But those and really clearly to is helpful been

of having competitive big is to position blocky it advantage a back. and go ability a So the

with all, recycling all helps the it Dennis, those infrastructure. water course more and utilizing laterals over me But let Of and existing to for flip extending it specifics.

Dennis Degner

morning. Neal. Yes, Good

to our of in respective cases, as provide where slide it revisions, I the And to had good in some us And said, may play other in say, the deck. of area, we doing is on start productivity each and some what seen the years. for increases to we've maybe challenges like see rest, And they that we to number talking as point that and time, we side. the continual let's that put strategy basins parent-child of Just the Jeff bolt-on with what well strategies other pertains to a positive one we've offset some haven't try also our is, been landing our completion just we about haven't of relationships. super-rich things or course to seen over of We in target development type really a cube areas. creative especially, repeatability as and curves this our just the for really our thing published think

pad infrastructure repeatable. sites, excited able also So, and footprint. harvest utilizing this those -- just efficiency being to minimize being We're we overall capital by efficiencies our very existing moving and we into see about the back the cost

suggest by not results seeing opposite, and very the encouraged productivity, if in the really degradation just that anything anything, a So repeatable. would we're well

Neal Dingmann

just Mark, And or just then, is for around probably Jeff it. leverage. your Got my follow-up,

what notable you higher done interest But what's you've You're done. Could a sales, progress creative asset all of peers. the you've pay the I'm pretty kind -- certainly certainly, been about you making sales, talk what of like down. types to XXXX just to on of of, far this as you addition deals table more similar leverage to transactions are looks than the work cash just on kind it have there, type some wondering on some the sort still, obviously, bit flow. wondering, consider? that there do is as thoughts, -- the in continue other free I'm in all Are the it like to out of, address obviously of sort this?

Mark Scucchi

refinanced something good everything you sales asset been about two Sure, add Neil. focusing to -- or That's through It's a maturities billion, longer-term down very $X.X longer-term by this peak into -- years approaching question. $X.X XXXX, nearer-term maturities. year, redeemed else, on billion. we've obviously, reducing if debt, for a now, by And, just from down about billion, $X.X busy total

we're inventory. in sheet, make and have share like best versus we some value things the we have but do we per So flexibility for to best in to preserving we sure risk do, management exposure in shareholders also in that need to to what terms of of interest doing that the the interest of are evaluating balance what would time, some Range’s

If commodity is we'll to times, will That the absolute be That's to target an in the said, next but deleveraging, substantially having down, where we'll do run. of what it year, comes just that. said, still material and again at what -- term, target value. look X cash those, the additional into explore absence there's being to we prices Long it even sale. our leverage all can asset down get continue than leverage So company continue reducing that still been to get debt. lower much to below

and long-winded to on absolute in that that I for reducing we'll we have for summary, working a the would in continue the two focus debt answer, So, say fashion last years. continue

Neal Dingmann

good. a lot. Really Thanks

Mark Scucchi

Thank you.

Operator

conference. end We'll nearing are of of question. Heffern to the Brad Markets We for final Capital go RBC our today's

Brad Heffern

my taking for Thanks everyone. questions. morning, Good Hi.

Mark Scucchi

Good morning.

Brad Heffern

bit been last repurchasing a of either debt? the think of discount, they're the cash, to at of sort about you able down to one. you've a to just par. Mark, of get use a How bonds back follow-on versus Obviously, some the but close paying the do trading revolver towards to

you So increasing a maturities easier? how do the think about little versus making well liquidity maybe

Mark Scucchi

answer The it's a is Sure. It's a good question. balance.

We credit total quarter billion facility. liquidity. under have approximately liquidity the $X.X ample was end, At

So need organically be funded going there expand businesses. further a not is flow free to an cash generating We're to that.

use the need that bank So and the over to and over to time for rely you would for time. range facilities for decline expect industry matter these credit

continue just to out tool push also So cash advantageous prices bonds then we'll as with use maturities, flow asset it maturities and to as pay it at and We manage a them sales. tool. use redeem we'll but a down and

bond of cash formulaic for and/or ample them there's proceeds continue other balance preserve a to So we in terms they just maturities simple not have that revolver. that. answer you to We'll come to direct under applying then up than as principal And the liquidity.

Brad Heffern

we Terryville. administrative that. just sort a sort or through Okay. the balance will asset transport those just flow through something the Thanks about continued of won't And forward? in that? the on to of flow of obligations that question how see see talk it quarterly charges Is on and to Can going are going we're a where sheet you to then basis retained transport revaluation transport related for line, an the going

Mark Scucchi

Sure.

that processing original and retained by capacity liabilities unutilized these along we've in of the large since been that asset. the region frame are subject the just acquisition all kind of were the to that So Terryville paying

Terryville divestiture went the So asset. some that with utilized with and of portion the

Range liability, otherwise. than So left with is reduced what had retained reduced a we

potential and a development to that's was Add upfront. to that the bringing that liability expected reducing the addition cash further occur hopefully potential that in with likely of in asset. to benefit in this transaction So

direct mechanics lump liability non-cash. more that the payment to of that. question sum the a So, value get XX of the years one-time The likely present in to I'll next call over recorded was as your in as The the flow over associated we and a on will see you'll liability with that capital time be as reduction flow it recurring that through pay statement. flow consequence cash cash working a that in

taken statement in impact income has the So full. been

minor of You might just activity. up on adjustments see variations down some development and

forward. see if it see example, reduced. But that they and cash For potentially development in going accelerate flow the you only large, will by statement

Brad Heffern

you. Thank Perfect. Okay.

Mark Scucchi

Thank you.

Operator

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

Jeff Ventura

I to morning time just to participate free you. thank for in the to Thank team. want questions feel this taking with everybody call with additional follow-up and our

Operator

you today's for conference. participation Thank your in

You may now disconnect.

Range Resources (RRC) 30 Oct 202020 Q3 Earnings call transcript