RRC - Earnings call transcript Q3 2021 | Range Resources Corporation

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Operator

Welcome to the Range Resources Third Quarter 2021 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 forward-looking statements. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those in 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 certain you for Mark Scucchi, earnings morning, Dennis Degner, everyone. 's Executive Officer; Ventura, Good today's quarter call and Operating Jeff on on Chief Hopefully, a had release morning. you've Financial call. We'll our you, third Speakers press that website. Officer; investor are Chief the updated presentation chance and slides be referencing Chief Officer. this joining we Operator. Range to posted call Thank on review the

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

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

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

Jeff Ventura

safely produced Range's liquids a range a efficient for prices, At to debt and the of s million, Range free flow expand improvements, free this in is high outstanding. materially of gas XXXX coming driven organically producer in everyone, towards Thank XXXX we XXXX the despite call. Appalachia. competitive a efficiently, as generating $X.XX. reducing improved major and per coming Hub expected in coupled marketing shareholders progress expectations. quarter, natural which and margins, of ranges Dennis quarter line and profile with detail over healthy versus NGL you, our an beyond, third Mark controls at spending gas leverage, Laith, pricing, pricing Henry XXX futures flow Through and heavy in in cash flow premium result in future a with and the and nearly cash margins is excess $X.XX through $X.XX the and strong improving current in for efficient recent operations the gas consistent flow. operating debt price -hedged, pre to an portfolio. the to diversified the as pricing that cost and I'll Hub is years the and expansion ultimately with more was coming turning near cover Starting optionality strip generated cash over the the free and make Range free flow that more above briefly positioning and shortly. price pricing. Range in But return for the by free cash MCFP, a with cash will quarter Strong joining is generated third provide flow and free and This Company NYMEX repeatability in in continues Henry natural third with backwardation margins strategies, to significant. again unit of to drove NGL pricing Range to and on $X $X than XX key steady differentiator realized differential capital and strip just the flow objectives, cash morning's curve. of our marketing large this to us in before cash liquids natural see at degree quarters In capital reduced on costs And to quarters quarter, over by And Mark higher were billion. it thanks, most touch these prior-year million quarter, and in improved strong detail.

levered most months, just driven today. Range year multi-year as level a to at near rapidly XX for has in the while a disciplined to all-time from a a for below last As [indiscernible] Xx recent years, including to that that demand, continued gas years demand exceeding XXXX. continues over near commodities balance X that producers Range grow internationally. to ago and to has supply domestically and the have NGLs highs we of set natural of approach stabilized end the result, After sheet committed seasonal And as levels program. storage many expects is targets supply both lows remains from end, leverage -- This maintenance

Balance free emphasize and strength, to Our key returning flow cash strategic ultimately and Sheet objectives continue shareholders. to generation capital

taking those growth. currently of All priority over

supply, This at objectives. While achieved the But occur and and near-term. future. at futures in market NGLs, fundamentals some Range could require the some the from we after operators looking top-tier to is natural only curve the grow demand, point Appalachian the gas of incentivizing we've priority would believe not the incremental Appalachian for production at in do producers at higher market shape

over Looking longer repeatability the -term, which horizons. drilling overlooked of programs longer a time often too gets market by as

years, across length plays limited, recent U.S. cause have the not discussed operators. and core distributed we in shale evenly the major known is As at inventory is and of

unmatched was move an measured approximately position, large This inventory Appalachia, Basin. we for of were Range provides acreage able life the decades. X.X acres million that's the that contiguous Appalachia Given a Range in with in the core first to secure an core

what the excited all in be the money to coming consumers the U.S. of reliable, capital As roll still start years, improved across program. benefit. as century. and millions direct same And development and of of development the gas of Range is would and is innovations the one exhaust shale that The This multiple indirect affordable of where past has process. I It price while is break-even energy. efficiencies last increased say U.S. our future inventories substantial emissions of excited we're executing very rise, pure decade the jobs the core created stands should consistent clean, use Range other operators country, has average natural to most and and substantially Range over, the to believe holds. about over parts over about to equally begin today, the provided saved

supply cooking we will goal and globally. in more best-in-class be reduction and Natural biomass. framework. to successful. natural increased life, LPG And who the world believe from internationally, and poverty, reduce producers to fuels, and liquids quality LPG helps nations exports. feedstock LPG of fuels. many net infrastructure world's committed for With deforestation and has products, our our believe U.S. most also that the the liquids remain export absolute for cleaner helping We In to LPG manufacturing only needs in opportunity the wood, role in impact and efficiently with to Range cost these emissions manufacturing within towards our but as emission emissions, cleaner, developing end gas and markets play emissions with is not roughly well-positioned living as critical their a facilities, pipeline producers amongst a which is investment natural and coal provide world's to addition, can most to moves and feedstock through improve of the perspective, continued the We lower profile energy future gas efficient the energy that positive a a near products as make gas continue XX-XX zero, population targets will on is supplying half natural U.S. critical industry. a gas deliver to provides achieving them used is

the for one class-leading records which track So well industry, -- years for inventory Range the and positions decades. has environmental in the upstream both of coming best us in coming success and

amongst multi-decade committed as as an to peers Range result is life, remains over liquids and our and of which I'll optionality, just Mark. capital, operators it inventory disciplined cost Range to Dennis Over inventories. that spending. reiterate turning our exhaust competitive Before stand importantly, their believe sustaining time, competitive increasingly out low we core other advantage will capital structure, a

allocation and to We you, will shareholders. and efficient, to safe, operations, focus continue generating sound Over returns Dennis. environmentally to capital sustainable on prudent

Dennis Degner

Thanks, Jeff.

LN capital of plan. the XX% totaling first or Capital quarters in Quarter $XX drilling $XX of million. totaled $XXX spending our approximately completion three year Third approximately at the annual for original and spending million with came million

the we prior update, to touched on durable and the nature. results. repeatable these calls the showing these further first operations results, our and during our quarter and operational second plan that covering drive their expand And today, During again capital efficiencies on we once

forward, the our will through reduce one crew frac activity planned and rig fourth drilling in quarter cadence operating horizontal Looking as with year-end. one

in equivalent the budget impacts in third-party as similar for half our representing area. year for wells portion guidance. located to resulting expect along gas at and labor and with turned position our of in a in a quarter, X% transportation from of for upsets, and line original third We we production to over the we place in to per cost unplanned Despite our the the below pressure even of activity will to X.X% production was start our events resulting resulted of secured and the our comprised turned online on committed quarter of fourth with and fourth the dry sales as the areas outages, lateral beginning acreage Approximately quarter. remain of gas over downtime, operational out in XX quarter the to to logistics impacts an are We deliver footage coupled with projected to the the storms, temporary the elevated and production, remaining a year-to-date we've consecutive heat, X.XXX third from in factors service second turn-in-line being broader and year. Adjustments results X.XX day, dry a increase with plans such year. second guide remained efficiencies, anticipate and the and production footage power-related the market. of our quarter change previous the increase quarter plans a approximate Production per XX% our in these coming observe million closed for X% spending to wells majeure pricing capital increase steel, BCFE pressures under gathering operating us for area. activity super-rich Activity day, million. BCF operational sales, their the XXXX all-in the $XXX force from production budget new $XX experienced of repeatable track midpoint mainly of our during disciplined XX% approximately our

result will wells rest X operational in year the are spread the adding program footprint. of the another which our liquids-rich in for from fourth across production quarter, Our

our in drilling a team, X.X drilled in frac stages which an as drilling for The during all drill per completions of and while drilling achieved rigs team drilling quarter, super-rich to with with with average our dual-fuel well continued section, time foot team focus a allowed capturing have the highest over operate by acreage, wet that operational an the the feet. wells ongoing quarter, Moving an below we team maintaining gains two the XX%-increase year. XX,XXX longest dry, crews resulted We've XX feet. efficiencies the throughout in per $XXX at are X laterals all resulting to highlights, before, pads far horizontal per incremental length efficiencies and XX,XXX so costs feet, lateral last day a the drilled third length high-quality advantage, operational our infrastructure, versus of returned results existing our touched while average horizontal acreage capture Like efficiency drilled strong to but this the XXXX program in position our footage the lateral drilling quarter, XX% efficiencies on increase same but to in contiguous placing Range's XX,XXX year-to-date. day greater team, lateral in in lateral successfully the second over located than average

contracted mentioned a utilizing on calls, have fracturing we electric-powered been since prior XXXX. late fleet As

clean-burning to the of position use acreage field equipment. our production for allows directly this Our natural block efficient from gas power

over into our million more water water, doubled able of perspective, to this to this operational In contributor put addition owned equipment Range's fracturing reducing in for cost major utilize in comes theme. continues Range produced million efficiency nearly outperform the internal over produced the $X.X third-quarter of savings diesel the alone than team to savings supporting water help operations million produced savings water to has in X.X This for to of with emission goal $XX comparison third was that equates $X our This for and and previous year fuel million this when the substituting gallons targets, been with of Range million. barrels third-party our at the Further X.X efficiencies addition to completion exceed Utilization fleet. cost our QX team year-to-date. quarter. year the it of electric captured results in structure the to third-party quarter by gains, cost operations To in to while operations. water for continuing goals. The

the has attributed The water allows especially with savings the hauling our logistics two tailored platform, to digital operating monitoring 's for reading along now logistics technology a captured real-time while inefficiencies in water, produced Range's movements water to expense and our and volumes, only savings, the Range aid with it addition in field. full of platform, achieving the team logistics operating water Not meaningful lease had throughout third-party did quarters out demands, also field. to this aforementioned dollars capital logistics In storage operations. partnerships,

for operation's to still Although encouraged integrated water come guidance a the and by results today, Logistics impact from of fourth time is drive consecutive Range in It software complete use will ability positive below that to shared we're that and in types its capital Functional results the the Water the Teams. is and the infancy, year. of our our these this drill, it optimization provide early expect

Now, increases year-over-year. and XX% the from XX%. shifting was tighter of balance show X% Preliminary demand higher over versus domestic last third to quarter third NGL LPG And third-quarter the quarter-on-quarter for fundamentals, were across year, NGLs, estimated a liquids X% and exports LPG board for up domestic reports tighter gas, benefited while quarter marketing, price condensate.

to prices As QX, equivalent market over the Mont highest end Northeast tighten on trading strong LPG barrel a during further into level winter. of prices. the At barrel approximately And at to propane X we portfolio versus domestic in poised market of the to a LPG $X.XX domestic winter. by incremental which was Range's per barrel as years, the of per increasing at fundamentals, crude in the ended coming domestic the but tight delivered value in significant position a result, are third $XX puts transportation price Range quarter. head flexibility in exports Bellevue XX% a over strong the our sales the for this Range serve quarter quarter

the of portfolio absolute NGL premium price quarter, by and Our to contracts $X.XX an barrel quarter-on-quarter. barrel, for Belvieu per per $X.XX drove Range's -hedge NGL Mont increased pre

incremental For per in NGL approximately $XX barrel price, million reference, increase cash our represents year. for barrel dollar each flow in the

per the winter the supporting see premium barrel guidance enter Belvieu to relative we continued index. realizations we NGL As months, range NGL updated strengthening to our XXXX price of Mont $X $X

exports gas prices call X-year well $X pricing discussed exports day, gas natural per which discussed natural our For market, movement had we has positive resulted curve. with coupled with of materialized production levels is some the out marketing QX efforts, now supply, MMBTU. over and to NYMEX gas prior below time, further XXXX below above on Steady the averaging the further per LNG undersupplied storage XX for improve in starting This net levels average. BCF

under net For the NYMEX, reported of $X.XX -- differential Third Quarter, including QX Range natural a hedging. QX basis gas

improved implies differential $X.XX for as differential quarter to upcoming NYMEX. below basis Range's Which winter, $X.XX As a and regional natural approximately of the fourth expected XXXX a tighter below result NYMEX. year-to-date performance of into gas

to As we and gas forward for improvements we strip in where our focus remain sheet. current debt, production at further balance harvesting XXXX, to and oil, pricing flow, maintaining natural recent the look natural levels committed gas, the liquids, on cash strengthening reducing despite

to estimated time, availability When incremental XX transportation assumes spud and aware, gathering, is add if expansions first existing everyone from sales. to setting price Appalachian market This price decision just required producers we only duration, systems, well receives months' Thinking the infrastructure don't time the needed. much the an fundamentally making months involves to with an need production inventory could producers, months. processing, months, X believe and remaining an during we extended to a the keep maintenance As are that further additional changed But activity XXXX. Range flow a in type yet a than cycle EUR that you approximately next for a much a balanced. producer in near-term from model term, by market. XX% is cash like over grow like And past indicating that XX near-term of years. increase But can in different within we're believe aside, is longer - static XX% the to that recovers first considering activity market the the balance multiple the type for that expect of across outsized year, generating significant experienced basins few we in add large market exhaustion to Range require free not which all as the program

sustainability closing you and an of for sustainability be like ranging to will report. monitoring our to areas in publishing just of safety. will we updated But ahead, progress air a leave on today, today's note our briefly Before several out the environmental, to efforts with be There touch from highlights. I'll report, In updates, efforts. days few operational, corporate I'd the the

make targets. greenhouse emissions continue to an our along methane with emissions we achieved in XX% gas First, intensity reduction intensity. And we reduction XXXX, emissions XX% progress have a since meaningful reduction towards in

In facilities. addition reports, efficiency XX% also to commonly or improved result they and were of increased these LDAR commissions more to equipment from leak this, the emissions surveys. safety XXXX have than leak as reduced reduction the as a On our inspections by top since of of referred frequency reported our detection production of an

our with report as many from in freshwater $XX savings has to the continue produced recycling more Range water discussing our months. of CSR the sources reduced look coming forward water and over last past of million a We program. program years. publishing X the discussed, the sharing regional cost Lastly, volume of we in resulted than and flow-back and has upcoming you through be needs supply leader XXX% to water This with in recycling, year

year-to-date and XXXX, home to and the supporting turn demonstrate the continue Mark to of operational, discuss enter and results environmental, objectives. our durable over our it to of quarter financial we I'll program, further now third the nature stretch repeatable our financials. As

Mark Scucchi

Thanks, Dennis.

in This to During $XX free of -hedge improvements reaching in have per barrel, Henry $X.XX. past to compared customer million. to the which prices diversified that of unit increase Range operations the per price were intently industry such the XXX% total costs, XXX versus in of NGL by premium reached We've gas quarter, capital, capital be $XXX Hub. and MCFP from NGL through working natural been participation before $XX.X transportation compared resulting million and cash XXX% focused opportunity If to is flow results the also of per remains. by objectives. to our an equates Significant a Near-term, $X.XX third to approximately prices basis continued NYMEX for on on free million focus Hedging flow the capacity active against a maintained third also quarter. while spending, Hub, cash by prices. an of Cash in Henry a program stated investors delivering Henry strategy before understandably driven in reducing to improved periods production retained Realized unit for basis looking Range's hedge rose, above near-term is price price $X.XX pre Range differentials, per assess price Hub improvement hedges. portfolio strategy risk item prior-year received period. in contracts future in driven realized realized realized unit unit price flow

to improving very on meaning returns reduction, hedged quarter. free retained risk X seek competitive basis, we and so improved is X-month hedge to employed, typically average balanced XXXX, For as fundamentals. NGL price absolute to a directed capital exposure higher not be away cash by in rolling flow debt our prices on generate hedge are management NGLs with to to to generate

quarterly mix from s both Range's last Range's Liquids averaged production perspective, revenue approximately to For XX% and liquids, NGL over XX%. the XX% has year is condensate. between

percentage the seeks hedging As reduce cash the predictability manage to considered to NGL a of hedges carefully structuring volatility, seeks a and cadence natural program flow global cash result, and when aggregated, time, debt. short-term of structural same are flow but on gas and to Likewise, revenue that provide demand. while the risk such a predictable, supply continues leverage meaningful changes to of in at total in participate more reduced basis,

next margins back quarter. Range's improved with per book during cash allowing coming expense the million, unit the operations. per decline As to hedge and Range year. a Recurring slightly in of in share, the the expanded than deleveraging, roughly growing returns preceding near roughly remain at to quarter. result, very And by balances the flow all-time pricing, industry, million shareholders. quarter GNA Cash $X capture preceding of the quarter particularly while unit, ultimately, several operating quarters, accelerating compares quarters. Lease Marcellus $X.XX debt per or production expenses line unit third also third approximately with nearly interest efficient cash and lower $X.XX favorably Cash to cash was was on $XX expense per meaningfully should $XX last in continued lows reduced

NGL As transportation we that significantly is during and cost have and in process frequently commented, linked Range's gathering quarter higher gas such prices, NGL the expense to resulted margins. processing increased

As barrel margin at of increase $X.XX to reducing per prices. cost. structure to the and an times and prices in Basin, example, with per driving Appalachia This expansion NGL $X unique of in approximately rising costs is an Range lower material MCFP equates revenue

XXXX, prices $XX approximately margin prices. barrel, pre from $XXX to increasing per $XXX approximately NGL expansion when cash flow -hedge comparing by by significant million the year-on-year, in have demonstrating increased by -hedge reference, NGL For million and revenue pre rising

of commodity prices installment $XX divestiture property of contingent the to million, receivables, the million payout as with aggregate have receiving $XX rising expected million based value becoming to the maximized, the potential $XX more such balance be on current first improved with Range likely prices. Additionally, is

sheet. balance the to Turning

$XX bringing to debt year-to-date bank reduction will the with reduction debt estimated the incremental $XXX fully repay fourth we cash expect in than in debt reduced facility, October, flow net more flow expected cash by million. million quarter. quarter And an Third the significant credit

to and liquidity. debt by in years There substantial are improvement and pricing is exceed organic maturities expected the trading funded and be in access strip both backstopped of at Range's the cost it's the has bonds levels that ample markets, flow. to has flows improved. the Future cash retirement cash in are coming capital expected free of to debt Forecasted been evident primarily debt by

cost debt last be while maturities as mindful the retirement, debt years cost-conscious increased of will also refinancing and in of We two over benefits effectively being potential expected, has, Managing managing interest activity. expense. the temporarily

this Range However, -- value balance the acts capital forms exposure growing commodity X area that a in prices achievable forecasts to indicate avoided area absolute per-share much XXXX. improved debt. free natural cost EBITDA X environment. forecasted remains using gas flow driven allowed flow is a in times higher leverage to and natural current gas retain liquids of cash shareholder reduce substantially to to in The the objective. sheet Further XXXX, times principal debt in by being early low year-end mid first free at accretion the Tangible cash and improving

return in year, next levels potentially achieved, discussion step first balanced of a early As the Range's next half framework capital of as target as the a leverage of logical are becomes macro-environment.

it's The third inventory this believe for disciplined is trend, year-to-date quality results If you. in byproduct to hard to Jeff, portfolio team a It generation portfolio our creation the are Range's per-share enhancing shareholders. of of business. back is exposure a what of and value largest continue focused quarter cohesive demonstrating value work on the by ability it's we Appalachia. and to

Jeff Ventura

we'll questions. Operator, answer to be happy

Operator

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

Josh Silverstein

guys. morning good Hey,

see right Obviously, about the Obviously, Can flexibility for now? thinking winter little bit guys also -- within but do talk about before but flexibility NGL shift around? much to ability high would do, shift in you have going you're gas now? you may you How to a environment. around. the much talked environment, price some we're what do price right program we're to You environment this what capital how have capital what a

Dennis Degner

ability that's of Josh. what We part back morning, gas side in Yes. allows is And because had whether we've dry to is level This existing or into portfolio, maintain liquids say Dennis. of the it's the a over assets production. a move program. consistent have pad flexibility track of certainly the in with That and the the sites our reasonable Good with moving us of the I'd -- to further record development. move

we So think, always appropriately. certainly to fair a program, that put bit this, a we of we across what best of deck, look incredibly When year. also the the through designated. our that slide competitive goal react areas make an together the think for the we to say leave is we have three it as But so allows are plan field program all you in upcoming planning a exercise, economics optionality us

which So just on heard movements allows market, -- to the but past. us in that you've not only also to flexibility, you let's liquids have it capitalize on say certainly Alan touch in the

our production into really bit program. with how shapes it moving back those And existing fair us flexibility. that like of So allows again, a we we up for leave flexibility, parts

Josh Silverstein

Great. locally to the How and then, does have? then the infrastructure you the growth, And have capacity in that how guys capacity year, given coming continue really I in. any have there's Range cracker next to much incremental supporting And that. much transport liquid's firm wanted sales export direct then to? into just ethane Shell see 's further that you can get if

Dennis Degner

our feel other over Sure, come also of there's backyard additional, producers. for for think as that our just will starting exhaustion But say, not space. up able gathering, - to that we it feel Josh. poised turn over pipe but our with NGL the only that going quality do, for in can into We maybe depending an take that only in of standpoint, we're being on A sets to premium we export assets, like us From on barrels really of where both producing producing of and optionality with there get nicely let's stay also I'll really I'll option be expire two-thirds level, inventory left start, we I'll we Alan. then But to regional portion part is the molecules to rail markets. capacity our to to inventory a, us liquids-rich associated take processing to co our most the optionality just Alan. of advantage right assets. to upon see before with put not I have always high some of but we

some in a cases on actually look to year, could a and some if propane is be to you point. it's well our So export. shell it that in clearly a heading Whereas, getting cracker about ship it and water-borne foreign facility, XX% cases type at butane a getting to this of getting price very over

that, So to I'm going to it over with turn Alan.

Alan Engberg

Josh, this Alan. is Hey,

So Dennis do as in a all we out a position in that of And have unique Creek. ethane of we X the lot ethane into We're out we've Houston, standpoint got get and fortunate can out takeaway Harmon of flexibility. of was production with on saying, Majorsville, pipelines. particular, really

where market we our around the index the that, basis. So flexibility that of on our ethane optimize premium pretty ethane. relative in all given we're shows program, up some And within have daily of can and position I in to take we we on in think unique that flexibility a advantage opportunities, the

Jeff Ventura

do on theirs. long can our long a And exhaust in slide others in, would time slide and long, inventory, add that we given there for there's I a as core just XX,

Josh Silverstein

Great. Thanks, guys.

Dennis Degner

Thanks, Josh.

Operator

America. Our is Doug Bank Leggate from of next question of

Doug Leggate

out that depth it's case to hear Hey, relative us your peers, guys. we Okay. maintenance of to Good the when investment about the all your on program. I the think want can hear And morning. inventory. me Jeff, jumps really I hope you the to thing

we was, your talk not for you inventory, when years. year, multiple just sustaining but flat, objective primary of holding talking that about level. about So how base multiple about should one Is model for obviously you're decades think the business an

So therefore, implications question the on those My first if second what decline it the with that's presumably, question. decline the are that? that kind Thanks. rate is capital time of my level. sustaining you on of leave there. goes maintenance I'll both over to stick underlying that along Because

Jeff Ventura

been, which -- anybody is clearly differentiator, on Basin, best important the We'd curve comes next core at at long-term we're as just the to have be to And we yeah, the have the the for of be be rate decline say But much. of yeah, backend indications, slide extent base market a a bit leads little is think whatever or And going longest year. inventory. there, have having capital. to also of when to maintenance up the that we flexibility the we we maintenance so maintenance in lowest again, XX,

at backwardated single-digit So to. increase growth we would wanted the to low that option have we if

to drilling and we time. significant flow operations long a can generate again, maintenance we has keep great class-leading So cash a complete. for have that team free cost And at long,

we're maintenance shape think in sure. I be going for looking to good program, at under clearly next either but So, for year,

Doug Leggate

focused on To But prepared the little really I'm quarter. up be grows XX regarding remarks clear, fourth the year a bit addressed compass capital. talked and your on all-in fourth in you the this about guide activity the you

I think teams currently. your declined rate is high

that if follow-up do do trend If two is I question. program, I may. I a those to actually you have numbers stick where guess my

Jeff Ventura

maintenance a would the in time with become rate decline XX% program lower. the should shallow, Yeah, even so

of next you and capital, into year? capital might hit program on bit In a the looking little terms forward Dennis,

Dennis Degner

-- seen we'll to when Doug, our slide shifting does to know current probably scenarios a like number but of good shifting it I'll the start real you under it in call too, life I'll required you've of example what from, it, move X development. reference bet. spreadsheet look exercise You then into capital I deck. It's cost-type over slide

communicating the year. XXX, that to XXX been closer So which throughout to we've gets from you the what million the is

some see some look gains. to positive inflationary like We're additional team The prior find efficiency to them savings in remarks the is for water on prepared ways creative effects. touch to areas drilled that the and now. seeing versus just from tried the footage XX% both really additional team steel, them lateral other today, a in materials. just continues We those quarter. to to by home of the run some seeing labor, expect in adding We We're in drilling hitting the

a to of real us for that capital we this of look turn by year. get allowing communicate smaller, them they the to dollars into you year. When do turn us can may but be the the at So that it's end the reduction quarter-by-quarter year, end the back those all for on time basis, at you

something our higher throes we forward, XXX We're what reasonable every As of I harvest that's depending that we to this look bandwidth through go in inflationary bid is process effect. now the we think a upon right through fall.

the maintenance anticipating on guidance, our a year know in coming up that, capital next So and peer for years, But through difficult February. land from call our X on a in a over you when that group more fourth color standpoint, to and leading see don't and under look to we're we're what past communicate We'll now row efficiency provide to our tend capital we guide today. in in plans our on clarity position. wherever delivering that that we capital our give

Mark Scucchi

this is Mark. Doug,

Doug Leggate

Go on, Mark. [Indiscernible]

Mark Scucchi

we what in simple implications doing an at floor the any of maintenance mode that are evaluation. annuity-like a about in a talking we about is a Company what we're looking evaluating I As and fashion, investor building you're think is question, is, valuation or you're to might Range what the or argue, a evaluation when your such bond-like

for market, in So by baked point at out, commodity that share prices that the declines considerations dictates the get option all when contractual some of in as not There market finite free the but lead on or Range industry's optionality may you this get certainly some we growth. market the Dennis at doing GP&T are inflation a point, in into rising for value the that, there's to pointed growth type model costs. also inventories and may, the

and think which multi-decade valuation point and that's frames I reference peers. provides mode, entire look But a does the is using inventory to essence, a there maintenance it comparable at when Range's floor and the inventory, at in decline. case at Range's declining efficiency price good not step level, the some capital base capture getting maintenance of I of how duration back on optionality So and that and it still you're

Doug Leggate

about Mark, know, think how you taken evaluation. I've we your exactly that's As up enough time.

So thanks so much, guys.

Jeff Ventura

Doug. Thanks,

Operator

is Michael from Stifel. with question next Our [indiscernible]

Michael O’keeffe

the Maybe hedging. thoughts -- you cash want I upside. protecting talked get morning, further to of hedge some Good guys. Mark, without get on about flow the just some

some you've year. next hedged production did got hedges, like You looks for gas XX%-year, XX add about

further comfortable here more, hedging rise continue and you that maybe or level to are add as with out prices thoughts to on Now, 'XX? into or gas plan

Mark Scucchi

Yeah, it's question. a fair

now along stepping ago, over hedges, think is, that and hopes talk we fast back quarter year, XXXX deck below just XXXX. three this I course what pricing the slide A mid our X of X on times the a look and for highlighted into being talking the we to slide end I be we at the end at times When low think we'd about substantially sub objective talking or little pricing, of our we're is times forward our potentially goal the early year, bit iterations at further were well, slide XX. incremental hedges, on thought we levered. of two said times. objective about the pricing, this strip Europe leverage strip including with And X; strip

-- trend of flexibility again, debt may between programs or to it always you has going value generate create absolute may that the and hedging and risk. shift that hedging holder over the value reduce been, XX% take level, additional best in historical not such objective that our the just plan the reducing So By represent equity the to XX% to enterprise forward.

studied what realized to markets, commodity choice that hedge reduce our capital. participate which prices. target in positions and I to announce a the in a point But the indicates the of have certainly for reducing some we as objective absolutely opening remarks, levels that framework leverage at returns for Range mentioned debt, our here, at studied prices. we achieve also profile would of You supply-demand Again, the directly we fundamentals, of

percentage very question we're is to what target a on getting XXXX, back specific your think our I for XXXX, give hedge don't number. to So going specific

with and collars were continue retain I'd well to slowly strip additional use sense that it to prices generating to getting these added, positions XXXX, like our continue exposure. that target think structures, would move were above to the $X. make out I particularly us levels, to point for to that upside continue

to So it's that hang hedge goal our upside, it to away. on not

continue you have to your absolute debt, 'XX, shareholders. But again, fundamentals. reduced optionality. We'll to greater returning study value about As for It's

Jeff Ventura

just NGL you be. XX% And I pricing to very we're NGLs about that. are the comes what of would constructive from very our is add remember and and hedge And NGLs. in, likely Sure revenue will

Michael O’keeffe

guidance. production some about you Dennis, issues and that delays good. talked the of Pretty weather impacted your fourth-quarter in

detail to any those expect of of you provide see to any want on And next issues lingering kind any if year? impacts can Just additional there. we do

Dennis Degner

we very Michael. And seasonal the this don't, way Yeah, is nature. really in think phrase we short-term I would

of doubt average over warmer saw the saw of some back for production. that through balance some our -normal in And equipment, that of runtime our temperatures on same, look effects into Appalachia. you - we the we which if some summer, from itself resulted no than time-to-time And translated

and through some the also some also had created impact. storms area, come those We

this short-lived usual and more ahead. expect we the quarters back to business to in So be be here as

Michael O’keeffe

Thank you, guys.

Dennis Degner

Michael. Thank you,

Operator

Deckelbaum of David from is question next Our Cowen.

David Deckelbaum

for Thanks taking my questions today guys.

Dennis Degner

you. Thank Sure.

David Deckelbaum

we potentially emphasis that increases I this year. long life think this necessarily at And that and inventory given asset think pricing on core should has non-core to next pricing potential view isn't dispositions just forth by levered your that endeavor net generally that and one-times point? you're an selling the be changed how sub bring value you and have X at just with, about going other there X packages the strip having

Mark Scucchi

very start with good the infrastructure, this of This high-quality with optionality I'll are the play, are the infrastructure there's is and the we across we is top a inventory. contracts that. Mark. left overlaid and inventory At and and There that. are happy that the stage, with business on

good very a is that So thing.

that that's think of confident modeling a the allows Company. predictability and distinguishing and more evaluation hallmark I bit a more

forward additional I So think some Range. model? you at you behind that's need capital? and this Can value harvest a for value point, the of inventory; significant that motivations do don't selling pull driver incrementally

not I'd being, time priority. the any at So would initiative divestiture be say a

David Deckelbaum

the around I would appreciate I digits to just follow-up And future in warrants. to Jeff, grow optionality just that. pricing. my alluded you then single And when the some market be think maybe

generation. cash get mode then next free focused In event is such you're level, price winter obviously isn't of really respond that? maintenance to that spikes, going there would year, that it to choke much targeting price the As as or is to solutions, year, on in and into pricing we there think first-quarter field near-term about like management next we hyper-volatility that assume Range actions do fair things into

Jeff Ventura

report leverage one Thank We do times. Mark long We've creates in like a free in we're Yes. extent lot driving that little excited core We'd core talked excess below Range, again, see exhaustion, and We've of can very that to add to value, inventory pretty share. the maybe a going cash long distributed. capture -- time, It's -- term. important. market core long that dollars one to that's a the or long, evenly other think about predictable, it's focused for from been inventory -- a a time, plan, fill a few -- that get next yes, maintenance a we're very said, can of you of the of and longer-term isn't very thing. you. bit it We're we to clear year's about -- exhaustion year, distinguishing we're features of and But people, well of X on generating we down next flow, billion chance times.

David Deckelbaum

Certainly.

Dennis Degner

X decision. you've sales then the turn we into that will it say and executable when look your This got we options, around time And discussion arrive to -type you start is a room you average see XX-month in consider you the when on meter. getting clearly, the -- growth? is turn as it will do thing about us system, at that retouch we'll just is permits, time the get on we molecules cycle production and this one and in just have gathering -- as also to well's plan By I'll your identified,

XX when to the at look want you The and the first time. in after captured at if we But to EUR curve, program this that the months. first put forward going something that, take that in the exposure it's XX% the have of really backwardation is consideration, we that's in to into get

as multi-pronged evaluate sure. So it's we for this

David Deckelbaum

you, guys. Thank Thanks clarity there. the for

Dennis Degner

Thank you.

Operator

comes question Neil next Sachs. Our from Mehta of Goldman

Neil Mehta

a take NGL bullish have about and led and us outlook good I how you to walk guys, drivers And price sustain that want ethane, walk basis. themselves? through you're here us thinking to the morning. the to and you're propane balances. more products, the some structural price point Thanks, through how Do individual on medium-term seeing time particularly this the

Dennis Degner

touched create that our as It's throughout pipe us export. optionality and for bit a little With to source strong, we get take It's odd exports also or remarks. at get and getting to these NGL Jeff need to with prepared well. keep to rail optimistic you and them start on few clearly able where countries when really And waterborne incremental that other either remarks, a the that on really you has -- infrastructure All so. remaining advantage think, the touched earlier open I of. have lastly, or that his through remained been a whether domestically on really side, continued when either balance continues commissioned, molecules on to done look it's and as the NGL over about contributions the balance then supply of really morning, I the conversation, Good taken look few the dive some I'll think a of Alan. NGL there year-and-a-half, clearly, But is hand years of of we of the at to type associated into reasons over to deeper supply start demand have you here be growth lot last Noel. I'll been of -- a as Alan the to Yeah. with especially administering is look forward, supply pricing. gas that's about last and it deeper the of operators year, contribution details. will think discipline balance capital we've energy demand that really then, just the part And out it. over But

because we prices. And forward so to I'm -- hand NGL Alan remain optimistic really ongoing looking but to that about going over

Alan Engberg

one you you and little still use. into of ethane, now feedstock Dennis. going upside Alan. ethane of looks making right a most Thanks, like on touch what competitive give just and what is and bit ethylene demand Neil, ethane potential can that is flavor And I'll this propane On is. the

that margin So two a barrels is through new actually, the that's this still are lot there We've for of to into just day of of year standpoint, that going amount end of ethane from add fair the that coming facilities new margin, going available a demand. U.S., XXX,XXX in per are on ethylene. got, roughly

as integrated demand. coming get and on. and expected supplying year; between terminal of We got export SABIC So Orbit come China. DowDuPont, U.S.is margin ExxonMobil the And petrochemicals, barrels ramps you've Polyolefins per producer in venture another Shell -- to satellite of gallon. $X.XX in day of into between per per right up an for and roughly demand. new barrels that's polyethylene the day That's second in Bayport new then on the XX,XXX Nova joint between next then The maybe that's you've ethane now XXX,XXX cracker about got

since that ethylene just again, -- steam the cracker ethane. gives how much portfolio there propane So for upside of out Flipping cracker over feedstock you about already is an portfolio. a July. propane, idea globally of more to It's steam is been

I of from as U.S., little the think closes So gallon, heating demand a demand the as propane well we day. have say But crackers risk-on has butane, is oil one at lot with still from look bit oil. PDH to let's propane standpoint. and that disappeared. XXX just Heating per can the simply a residential And in at commercial, ethylene standpoint, and compete from business crack if there's that

Asia, propane with for If XXX Europe at it's an example, use MMBTU. whether in Asia or we $X.XX MMBTU. is XX, LNG, at or translates That of say $XX ton. to look leaves let's XX.XX Asian over around per upside let's at about per is propane $X.XX, per So that there. LNG in FEI

XX.XX leaves per that So of MMBTU. upside

Sorry about propane you gets you for that, on of upside the to price. XX convert that but all if the numbers, gallon per

in of materials, plus given upside were is lot on margin relative that So competing that's these to bullish there new demand that's products. still coming combination the still available a really in

Mark Scucchi

Mark. is this Neil,

it's challenging grasp to of to of if that and comment the could. to add one, Just revenue model -- to a level producer's streams. sometimes With NGL on market component detail, summary maybe I

Belvieu there's price appendix, the in MCFE. reference and for for by so a Mont barrel At pricing strip to Belvieu pricing you $X.XX per That equates per current forth. barrel. Mont roughly fourth get the stream a because $XX.XX of the So estimated of quarter, buildup of to weighting

on perspective Hub, pricing again, So Range's driving outstanding is margin experiencing Henry cash uplift, free flow. Range expansion above the and positive

Neil Mehta

I in the Obviously, That's down you part you'll perspective, deleveraging are or great numbers an if into micro they although are in to of next big opportunity whether drill buybacks to terrific year, have dividends a been really position looks next those most has about at can big guys to about going this talk evaluate here, year, it like year likely. its story returns. capital be the

investor any that variable gotten implement on reactions far? peers as You've seen that? feedback Do any of some makes And, in you model. have sense that model to a business your you have your dividend this initial you Do think well?

Mark Scucchi

year leverage Range, perhaps back us for depending certainly be discuss our jurisdictions for Taking a a most matters different framework We tax impacts these Yeah. what desirable on obviously investors logical of There on it listen point and understand to all heading like. next types portfolios step would with forth. with business next and might you that different look in so and for trying of step is are what personal as announce target into the to out our their zones, valued them.

terms, sense. it. is business; has to the of, there the think makes that is I a capital-intensive This programs spoken industry general cyclicality in commodity in

a component makes a So makes modest sense. sense, base variable dividend

to move variable prices the think from around. have ought the Again, capital investment can I move a flexibility. mathematical component, perspective around, commodity

of said, investors. framework by a peak reduction time. repurchases since add that XXXX, billion a shares, repurchase as the dividend million for this investors. But around commitment investors quite should it share and debt to is in time. it's give X.X But the it Some valued would XX incremental also we that some of mathematical exercise to capital business been also for what I view the we of the or whether With of have comfort should as it been of be strategy of absolute with has some late basically, today, returning most

has say, be been may maybe. quarters, in a as time iterations coming further announce today. But focus there So, whatever that our suffice we to framework the it

Neil Mehta

Thanks, Tim.

Mark Scucchi

you. Thank

Dennis Degner

Thank you.

Alan Engberg

you. Thank

Operator

We today's the are nearing conference. end of

our to go Jayaram final for We will question. Morgan Arun Chase

Arun Jayaram

Good for that did executing first XXXX -- how [Indiscernible]. think morning. you the sense of I wellbores XXXX is XX year. year versus this was footage any last This to trying Dennis, about just question with Dennis. much Range your I or XX think is

So to year of get this footage mean XXXX, what a type I'm - a maintenance trying year this for sense and assuming versus last could program.

Dennis Degner

morning, Good Arun.

it's fair an that from standpoint, think length lateral I planning XX,XXX to we assumption around average perspective is our feet. target from a --

well perspective, be think that there's little you back -count translating to as variability from about So there. going a a always

current will it effect. seen for no the and should numbers on in really given how level much basis. line cost about talked about complete But similar maintenance-type program. This when why the a think both might've to on be increase XXXX footage seen doubt similar turn levels, You've assumptions is capital we've inflationary continue our you one reasons of lateral drill

So similar all be a capital the similar efficiency, way. and really program should

Arun Jayaram

my know I frac more give the XXXX. us Range those leading-edge Fair are is follow-up, the a Dennis, sense whole of you how drilling so for yet and wondering focused enough. drilling then inflationary the could process? and you have a tendering that touched needs seeing. just if frac on -friendly some just your some equipment, on is for conversations pressures ESG of industry as begun And the you of I'm

Dennis Degner

the process we numbers. share difficult are still those -- in throes harvesting today we're certainly it's yes, to and of process in the the and results Well, the that because evaluating of

side Range early they to to do want But partnerships we through we say, efficiency to providers measures. good wanted details that and have ledger that so because this look keep, that direction. gains of models, are keeps align capture cost what share just also is efficiency we will continue historically we know the seeing right which their time. our too other So costs those because those let's service that to It with, helps of the at like our in what low with

to our going So capture, but what effects we're we're about are seeing some way. inflationary we optimistic come

Arun Jayaram

Great, thanks a lot.

Dennis Degner

you. Thank

Mark Scucchi

you. Thank

Operator

the Ventura I'd over today's answer you. session. This call Thank like back turn to closing concludes [Indiscernible] to Mr. remarks. for

Jeff Ventura

follow-up Thank free team our We to Please afterwards. with this ask just appreciate questions you. feel call our to everybody taking and time to morning. listen

Operator

for conference. you participation Thank today's your in

time. this at disconnect may You

Range Resources (RRC) 27 Oct 212021 Q3 Earnings call transcript