RRC - Earnings call transcript Q4 2021 | Range Resources Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Range Resources Fourth 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 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 speaker 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 reference thank you and Mark Earnings morning, Officer; Dennis everyone, Range's Chief Operating Jeff Good on XXXX Officer; the posted Chief are Scucchi, Officer. had speakers Call. you, year-end you've press this Hopefully, Chief website. on the presentation The our updated Executive call Ventura, on and investor Degner, a for operator. release certain We morning. may Financial call that joining chance we today's slides and to review

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

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

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

Jeffrey Ventura

commitment Thanks, billion free positioned XXXX, which Laith, intensity to years In be through focused continued and dividend, our Range is and focus dividend base the underlying program further over announced advanced half we term spending directly the resource take underlying program, initiatives lowest per that completed are under and key establishing balance accelerating the at of with couple balance a of to year. Today, capital joining spending the we capital repurchases is past intend to and Mcfe supported time, the this new are hedge return the and cash At and marketing, a and capital through objectives cash last massive XXXX near Range repurchases share this sheet on a provides and of by hedging our cycles. safely, and this for When shareholder-friendly the recently potential we implemented. with progress we well reserves strengthened strength year, Range's the value the shareholders sustainable Appalachia. Range's the the very with on reflects begin for on second Range's $X.X the which dividend potential have. its meaningful program resource uses in the considering share that market and thoughtful of cost, we've buyback us a trading ignoring advantage steady in dividend as buyback free continued to opportunity in disciplined base peer-leading sheet efficiently a yield expect thanks, enhanced to building significant by sizable to same on and capital was are compelling flow, the and the Board. cash way margins by a attractive everyone, we flow our on targeted flow morning's call. our our very us durable various drilling and budget free Range discount. program for

program which key migrated returns. than prices capital natural mix and peers, in of us sheet back swaps hedge simultaneously has most to Range's that using while in gas XXXX, and of more note capture you'll Importantly, supporting improvement the to our strength balance a of allowed collars objectives

structure from further, Range steady forward, Switching have back gears benefited amount we capital the flow flexibility the support our as of XXXX, hedging cash Looking year. debt and and at in commodity the required throughout timing, improvements added free in prices plans. looking to the reduces absolute

well even predictor documented mark-to-market a future it's of on been based businesses though prices Our X poor prices. strip where industry be is the can at continuously futures is

movement. flow led the by finished we year free decisions in Range Range example, cash with number. our hedging market of NGLs advantage with finished million portion recent XXXX the year the double This but and Range markets pricing. I realizations allowed international entered quarter, not cash made terms mix production than Range most of record and price the XXXX the to bullish the speaks XXXX. estimates most only conditions, underappreciated around the more since to capture in an generating of in into an As delivery and good early of of flow a believe highest us that that provides $XXX XXXX

For production look averaged approaching Mcf pricing, NGLs, or is over higher, at strip based $XX per $XX recent equivalent. than barrel. advantage This greater producers. even per distinct per Henry XX% XXXX barrel we versus premium equivalent context, advantaged liquids they base of over overall Hub pricing XXXX in our $X gas a on if per natural production a other for And provided XXXX, Mcf versus Range

purity flow and natural products to Range's fundamentals premium sell into the with free strong our is cash greater to NGL pricing, strip at and XXXX. to be Our margins paired in ability recent helps support expected strong international NYMEX gas markets NGL even

sheet Looking at the quickly. balance

this trend now the cash Free billion Xx at having below net We potentially reduced of by mid-XXXX. debt strip debt flow this accelerates pricing. driving balances, since leverage continued $X.X the end trend in year lower by approximately of XXXX

costs. ago hedging what debt this half to X and of flexibility in shareholders. continues allocation, margins and expect strip year to returns our team the at innovate Operationally, reduce well the with improvements just durable at of pricing, was and capital context, to added end to it be providing year positioning For continued full-cycle normalized approximately us balance we

the our a leadership. savings well budgeted, is capital operational been amongst laser has since achieved coordinated has $XX team to types spending peers million able and our the discovering the operations, a Marcellus. per of foot in XXXX is was a year planning of these consecutive than plan cost disciplined spending than discipline, and original which a Range leader reflection cost less budget. fourth Appalachian less the This deliver As for efficient capital result focus Range on of

plan $XXX which foundation low low E&P to maintenance free D&C a together all base XX%, peers. foot, the shows discuss, for capital. average generating XXXX in is support we've costs with decline that come Range's with cash us that mid-$XXX the out class-leading laid best operational maintenance intensity and decline continuation companies in flow Range's a very lateral As base for This Dennis the cost, and inventory, natural D&C capital sustainable efficient to unmatched [blocked our per shareholders. gas amongst of a significant shallow is of is million key] coupled our operations all-in below core range. allowing well provides returns will solid approximately for amongst capital

is important of capital Importantly, figure for sustainable this couple a maintenance reasons.

last forward. results and producers long deployment. spend Range runway capital for Taking of sustaining inventory lateral the has sales unit reported years, several was continue the is efficiencies. very and completing And repeatable on years, this all drilling, we similar Range footage positive a production, First, peer-leading is has which and well what provides in Appalachian to bear the core to accomplished of consistently capital at using results. per second, in going efficient positioned to differentiators measured capital Range led actual into a out These us decades, leaving and relative similar in look a D&C of few results consistent, capital XXXX beyond turning wells expect last year with us efficiency simple

year-end billion. years Range of our strip continue A remain of with pricing, positioned XXXX peers in top-tier exhaust to our value their At core wells inventories ahead, will portion well reserve be the report. $XX.X the Range's our inventory proved year-end in was to PV-XX As of can decades drill. reserves the of found

after you we approximately core Marcellus definition this net as allows proved and has know, our not our create For per the opportunity holders SEC long-term in not twice believe window, is backing $XX wells of Range about value buyback share years share do reserves equity presenting debt put, balances, context, program. value Range to price this additional of only meaningful the out through current thousands this PV-XX X-year Range's reflected included. or equates beyond year-end per resource currently for X many share approximately of for price. But development share to significant with Simply of

that that believe the and the history. it just in Before turning in company's truly best over position I'll say Dennis, to Mark is Range I

generating the Dennis and resilient of next said, whenever gas helped capital flow of with sustainable fundamentals reflected gas capable Mcfe. few reducing has lower be capital efficiency to foreseeable core with other the quarters. that Range's continues cleaner, current natural towards requirement Underpinning in demand. which efficient move that this to and D&C value even improve sustaining world fuels. significantly supply among generate meet and be also operations. over in derisked time, history shareholders. more on on sheet the gas free Range carbon-intensive more charge the lives living returns biomass generating Range to That for our will standard decades cash and on favorable a and all be Natural best At translated NGLs coal, to balance to are natural shareholders. liquids NGL through the wells a positioned healthy abundant massive everyday and in well enjoys, next positioned is the and gas fuels, now capital power to today We With the and per within shape Appalachian into I'll inventory while the their emissions leading in As is the more those high-quality for and their ask the low and debt for same Range reliance of transparency, coming future, the of business cycles. improvements rapid cover business peer-leading liquids reliable believe others billions well affordable, will we downturn. a and spending see intensity, of will Appalachia, future natural And in that is are Range the long-term that Marcellus to our helping company's returns

Dennis Degner

million. and Drilling as expected, totaling activity with the fourth Jeff. QX for completion Thanks, $XX.X quarter for expenditures went

and savings program XXXX even innovative in achieved detail time an to continued highlights sector into these do December capital wasn't on spend executing items in through capital leasehold the at total achieved million set resulted the approximately $XXX million beginning in other quarter. was directed of or year. In million a originally addition million This spending XXXX. that for Coming gathering late planned all This covering capital. below translated our efficiencies into pad and round while while to the spend, moment. of spend operational us guidance in out of I'll that $X.X a operations in less focus additional $XXX retention, and in the more allowing capital systems was was the full our towards in pulling D&C XXXX original corporate just budget below the to more, $XX

production with impacted of couple this during second past footprint, approximately capital related half half the to downtime feet $X.XX XXXX the and development more to quarter crews As production service a consist acreage impacts of capital our the will equivalent half on position, year half located past an wells first the the capital lines. new exposure turn-in look per per remainder The of set with and and are maintenance well. to spend quarter off footage A by Range’s capital plan directed with averaged with that $XXX at our which sites. activity the cubic of program quarter approximately wet the over This X.XX spending capital year years, XXXX. Approximately per third-party crew in ahead program And XXXX day the annual call being sales with allocated year-over-year fixed XX% second equivalent The million. on of of drilling year, outlined being to sales. being capital schedule X will production of year. these million X XX projected impacts limited production consist cost agreements a increases, Bcf result the is horizontal us completions-related forward couple pad October years, for for of equivalent on X remaining capital per quarterly generate Northeast some turned And several per X X.XX equivalent Mcfe, first similar year including to is frac resulting be Mcfe small downstream to X above completed average per and Bcf the will for a throughout frac activity production the fourth vendors and drilled year-end. the the feet day fourth range earnings and by XX approximately year horizontal The coupled late and we support of in Consistent the dry per of length rig with as the increase day. of and turned and And previous in by $XXX inflationary The more front-loaded years has will average This in XXXX X.X ahead to for for of of setting be February per XX balance day. into the will to majority XX% peers. first provided suppliers into of approximately our with X.XX that XXXX, weather-related profile than in leasing daily to our our certain first with guidance sales maintenance guidance of production to up existing coming production day, well million to XXXX. will has strategic wells developed material to the budget equates the turned start and increase gas we quarters. in Despite tapering than the amongst the XXXX and million rigs Production and completed associated Range's super-rich an pricing the towards to lowest XXXX with of equivalent in the capital in of collaborative similarly, range past XX% wells to be spending of planned Consistent functions. been activity spend Bcf XX% lastly, our price factored inflationary approach in cadence turned XX,XXX a and horizontal first cost. increases were the long-term sales wells lateral was on services, Pennsylvania. incorporates consists the

gas X You've lateral performance allowed heard fuel pads team A feet The returning and This foot substitution Range drilling savings our year. are program well costs wells having us performance XX our in over lateral most maintain the feet. drilled year, successful footage diesel operated operational XX,XXX XXXX in the being a excess the and touch components with wells to lateral repeatable $XXX and dual-fuel for improvement drilled our daily D&C lengths the drilling of by our gallons at per well begins Four the drilling Range's was XXX,XXX links highlights the throughout dual-fuel lateral per XX average being natural review cost with of on prior this of horizontal X of Strong of which maintenance operations. rigs. and at foot operational of peer-leading repeatable showing X per a cost foot key top Marcellus an from level, existing capital XX,XXX per fell to lateral driven wells rigs drilled of Mcfe. within horizontal in history. XX% the with per from of before. long length lateral is key But to in

team completion completed frac On consistent the number stages side, completed which in over in the XXXX, the X,XXX is XXXX. of with stages

efficiencies in quarter, overall in Range capital. the provide and XXXX. While the color setting stages year-over-year fourth increased day To equipment introduced on record in basis. efficiencies improve frac consistent, including QX, increased per procedures frac around continued a the for by that improvements the a nearly day Driving activity and saving yearly were during team to surface stages this, XX% new XX% overall team per levels and XXXX completion

procedures completed pad for utilizing these the As stages day frac entire XX.X the per procedures. averaged the per in historical fourth an X a stages versus of the quarter, average day pad example, under

fleet water limit these during results completions efficiencies new are early, impact and dual-fuel XXXX, in costs substituted $X.X cost team The capital gas net for and XXXX technology. to frac not efficiency, and we're this with operational our a in sourcing of a XXXX, allows fuel. year. equipment main it of on from and reducing getting the million and and our While our continue of type continue closer XXXX. In increased in this reducing in net excited emissions advantage completions electric full of us both frac use In operations significant position beyond. large our utilize And The the will focus XXXX. how in to fuel of see to burning during also of is of in transporting with to contiguous operations take efficient savings fuel diesel substituted consumption emissions operational continued us substituted fleet gallons the but operating drilling clean resulting the Range's procedures our operations only diesel diesel XXXX natural zero over total, long-term acreage and in to is efficiencies in million target improving X operations. we an in both

NGL total water prior New round third-party covering nature to drilling of the year's reuse quarter $X.XX freshwater these over XXX% the million Range's less water recycled demonstrate less durable, by belied stage. the the volume, sources. clearly expense of year-end water to all program with price while water completions, November. in and supply note, our at reuse recycling with XXXX domestic water XXXX, exceeded strong and And combined further utilized results reducing year, prices commitment at records to repeatable Mont In XXXX set on entered utilized savings than highs utilization at accounting with operations strong production, $XX operating our Belvieu lease from in for water water mark. all-in than exports our increased a exceeding supportive ore drove with and program water teams. associated have reuse The XX% of the for completion Weather out water in location, operating fundamentals. percentage Record to expense marketing. fourth needs the production finished operations, the Range's approximately were demand per regional truck Shifting of an the each XX% Mcfe lease by for produced October of of used for $X.XX. multiyear in

gas to strong cash proved our of and Mark the generate natural strong made objectives on and capital gas touch are percentage assets. program relative demand an pricing highlighting premium tight near-term natural to ethane will Similarly, in Range's expected this repeatable in the Mont for to both increases increasingly a was are accelerate will ethane one of to of coldest to that operational sales domestic and NYMEX combination years. expect price relative flow attractive moment. average. free fundamentals realizations XX Belvieu from propane LPG per efficient healthy liquids pricing MMBtu. And increasing XXXX Range's support with recent ESG at gas. just from January gas to Range coupled XXXX. We on benefit an side, marketing, as XXXX financial years, for expected international be the during an markets QX in the levels averaging $X.XX over bringing announcement sourced into recently, Recently, gas selling past and natural the storage are the efforts with quarter, by a butane More These profile below and support Range's X-year movement responsibly to positive fundamentals and continued pricing and tied throughout

and well market emerges. assets the performance pathways, to The partners with stakeholders, RSG us capitalize explore ensuring our as demand mature culture. it to certification continue our growing steps we on our commercial to company Range's future evolve, various and believe We continuing but position and is ESG external this aligned

over things our commitment. continued XXXX it to operations year all Thanks the and update financials. and marketing look we the like dedication I'd in for and our work improvements. turn to up As ahead. our we've the today your we'll today, discuss achieve accomplishments team now I'll wrap to forward for their Mark touched on the congratulate to to exciting hard We

Mark Scucchi

Thanks, Dennis.

describe XXXX is is transformational I word for the how While would Range. overused,

life. deliver Range's stated world-class mission to of that And to realize risk, financial has with over pair and sheet asset the the scale make of for world-class been reduce capital of and the this purpose to Our shareholders cost company a that value base. a to fit consistently foundation balance multi-decade to asset, value reduce inventory

approximately on will target So opportunistic This forward focused to commodity for world-class year-end to balance is mid-XXXX. year's be been foundation have since debt balances years. debt, XXXX. provides a billion company of billion be debt debt at for financial enable as reduction is debt strip both a in And will believe We level and $X of in sheet prudent the for in is XXXX, of $X.X with reduced the by area, debt billion competitive of level through Range $X.X range net We've targets that Range? achievable resilient that a several last which described price consistent we proxy. the what going we absolute believe, pricing and to EBITDAX cash That cycles.

in As for debt capital commitment. of calls, next enables firm a to use been describing return capital return framework part noted It a integral clear not on strategy. conversation of is of allocation flow. target sight waterfall A our is capital the We've standalone framework. of prior of an our around levels, line cash

utilize in target this allocate and to reduction primarily to First, will to margins It's that hierarchy its second, costs, flow fourth, levels; that important the leading debt of order appropriate. initially generating flexibility are highest company on With overall be strong, returns directed and debt free Range's significant shareholders; to growth debt margin; shareholders. reduction. entails to towards infrastructure based note and full-cycle maintenance cash towards third, return capital CapEx maximize when CapEx

balance have mix we the cash free to levels, target and the the approaches adjust ability of sheet As flow. use

twofold while a progress to strong in reduction flow with $X.XX per which and retaining share expected supportive of higher annually, made date, reinstate debt and price yield to to X.X%. at equates cash XXXX risk, book mid-XXXX commodity mitigates commitment. hedge to quarterly currently attractive significant XXXX is dividend or dividend combined in This its the prices, a With approximately $X.XX exposure a Range expects that

to earnings. million First, price tangible returns it's we or cycles Range's shareholder sustain And price. to shareholder see that as billion, it's commitment greater an investment business proved roughly significant a which the Range's perhaps gap cap. now believe net share expanded year-end second, and of a balance debt, With between inventory repurchases significant importance the given is sheet of incremental $XX This equates value of an to inventory commitment $XX.X powerful We attractive of a ignores repurchase take PV-XX returns value opportunity are is maintain pricing roughly SEC believe production XX% the value aggregate through share market from this or per $XXX of of to with versus share current we strip program of at a durable investment. can share PV-XX reserves. tool capacity comparison what beyond to a advantage compelling

scale a conditions, market to with returns and adapt option expanded repurchase providing cash of for to and free reinvestment prudent flow. additional this flexible remain compelling project program, will We use

to while improvements back net with of used reduce financing cost the to prior future ended million we returns to to maturities $X.X was us In more from cash $XXX lower billion, early of before revolving interest framework, sheet balance this quarter reduce provide confidence Debt and Range Turning XXXX that Mcfe. flow versus year-over-year, price capital cash prior a driven NYMEX in per the driven debt million. a of XXX% to price and combined were during XXXX decrease year. result XXX% hand of announce improvement annually. million pre-hedge reaching of $X.XX improvements XXXX approximately cash This in fourth period, basis flow periods from prices on debt realized per the with $XX XXXX, with capital unit realized accumulated credit Hub, Cash for upcoming price increasing maintaining $XX to the essentially fourth Significant costs by undrawn full million NGL of modest unit an than reduction working compared of unit to exceed million $XXX price in is This Mcfe operations in should fourth pre-hedge average facility. year flow quarter, realized cash the spending, by an in materially reaching the free per in above flow cash per free approximately $XX.XX an $X.XX realizations increase production equates year $XXX NGL pre-hedge $X.XX past realized resulting in compared by a on quarter. in XXXX $X. over barrel Henry a in

Hedging natural prices XXXX, strategy retained As differentials received for portfolio results price diversified total Henry per also a to capacity that Hub during premium remains a transportation Range Range's of while customer by such gas supported contracts, unit and the Henry strategy we costs, Hub. have and industry prices. assess improved the participation looking understandably future been opportunity near-term as focus to in and rose

natural heavy Range's what program. in gas a to changing with As Jeff XXXX collars to relative continues through was hedge swap towards term, financial our and but strategy our XXXX of the evolve Near dynamics. book pointed pivot remains for risk hedging decision Range made out, supply-demand profile market to reducing historically

support cash For volatility not and directed hedge shareholder that on a NGL as towards to program elect away to industry seeks reduction when may flow capital free flow, prudent X- free absolute such manage debt be fundamentals. The typically the total and can hedging meaningful rolling and such management generate to continues basis attractive, strength top-tier to to to with X-month prices returns balance other improved capital. sheet natural cash gas global we aggregated hedging, supply percentage same we production of cash of returns of that to deliver a seek returns flow and most balanced commitments improvements and returns structural the and revenue returns When to while are participate risk more at employed, on time, predictable, to industries, in hedge so XXXX, demand. are we portion that protect exceed in

was improvement, taking As a of allowing very on Range's a account cash at operating topic even Cash year. of cost XXX% last line growing quarter. Range's margins set expense $X.XX flow to hedge of or per compared pricing, the potential mix or before grow expanded $XX G&A impact count. share per compares fourth book and preceding year. unit, scenario flow all-time peers, was a improved quarter million flow share, in in Continuing preceding diverse $X.XX expenses line quarter contractual to Cash result, fourth per sales declining approximately near by points lows cash per business per production combined favorably unit. production capital roughly maintenance unit share. the share interest and Recurring last expense capture Lease cash the with to quarter and unit cash into with remain Range with in per $X.XX up to

refinancing reduces executed interest coming flow follow in expense in per share. January $X.XX or than cash interest significant the as quarters. savings in $XX we annualized greater debt However, additional retire million should transaction Further by

during As Mcfe of to equates $X.XX our Range to linked structure per an in processing we is such and that transportation costs the knowledge, this costs. have NGL To approximately and illustrate, frequently in described, $X to Appalachian in Basin. increase the Range's gathering, To increased gas margins. quarter increased NGL of revenue the barrel best unique prices per is processing expense processing and higher resulted NGL significantly

barrel higher comparing and to when reference, increased even pricing, strip XXXX. in they NGL by XXXX per $XX over prices XXXX, are For at in

of realizing the Hard based more of the $XX.X have such Additionally, for swift work, becomes years, veering portfolio patience capital share focused reduction prices the on precise to was X come debt demonstrating business, next a value Range's in that potential the and while but to XXXX improved of our repurchases. allowed of the maximized likely million diligence plan form without core and rising asset maximum and of over value $XX returns contingent installment from commodity million business objectives our prices. adjustments at and the derivative power balance

in you. value portfolio Now largest value capital the are continue exposure for to expanded what disciplined price returns as We share to between trend quality seek the we shareholders. and this our narrow gap of back Jeff, is of of of believe creation work share we inventory to planned Appalachia. per to intrinsic

Jeffrey Ventura

answer questions. happy Operator, to we'll be

Operator

[Operator Instructions].

with Hanold Scott Capital from Our RBC first Markets. question comes

Scott Hanold

along return look this like right returns attractive on just Yes. about look -- if kind that you capital of to you forward how could certainly, as aggressive at But couple any you shareholders at on the how color a that buyback investors, at in as the how stock that, to are cash well? can doing The guess, current get now reduction? then little point, going think with back based on, around you your I structure bit buyback to very with program going price. you And give you debt little view on as of a a

Jeffrey Ventura

Mark, for want our strategy lay us? out to plan do you and

Mark Scucchi

Absolutely.

continuous to times I'll If a I fact So guess couple start years, year just off we row process. a in during portion a of is step the for about is scripted X last really fourth rewind this we've for mentioned that that more the with debt X Range, in the the think reduction. this

equity, enterprise it's the from the return a and about value as is, capital of to to what of the we equity a holders. shifting So value debt holders that think it's

rewinding clearly accretive million value even a early very shares late we level. repurchased highly XXXX, So XXXX, XX to

that a we into the heading. where today the we've for So see announcement fact in of leverage And balance phrase byproduct the of a confidence the a line achieving of clear having sight, where target. we're as number we stands have used quarters sheet

It's I other nothing relates comment make decision. not this is is, would or it binary the an-all as a not to capital decision So allocation.

reduction to highly a to go free go term. doesn't return So to our a competitive it have make program. have program targets near of XXX% is XXX% achieve to that of converse and medium of capital to not the cash does to The in flow debt

used example, how X/X a illustrations We've note cash think this to this that, today, help strip to are what with thing only suggest repurchase I would competes all program entire the half continuous of frame describe just if this program are you're still is prices bookends with is a as announced XX-plus important an guidance next is we've of free If were program cash free the used, of period, numbers. north percent today. of in announced of the process. So flow. those But XX-month flow stage. talking peers. that's just Neither Those

the to program, on the over is debt realization flow the think current out on excess free next point XX focus of Slide I targets achieving the we is and current our capital what above cash or return point program. and

it producing, XXXX. if all by debt billion flow way cash of free you clearly, the to $X average on down for ballpark could the you're zero just for math, of of So ease a year next couple take years,

portion, we billion mentioned a prudent during few the ago, $X to I level. moments think $X.X a scripted is billion As

free program be creates the so that reinvestments capital cash excess in to to return us the for different business, step optionality, allocate of clearly, in another flow it on. investments, So and

But in to of be said, nearest be and term, towards So period the program debt I'd the will use ends. cash and blackout used and us will tilted the that available can flow this reduction. somewhat program is as say

Scott Hanold

it. Got

Okay.

understanding return sort to right? going that $X.X billion. to that's obviously I'm $X and next I Is of that to mean, discussion, there's phase if billion So shareholder right, that be of getting obviously, the post

Mark Scucchi

that is not to look We're adapt price. will adapt stock accelerated not may what will or announcing commodity macro the may events deleveraging influence anything formulaic. or prices This like, fluid that

evolve why that's but yet, So not that grow just quite it to time. be and and hardcoded and continue will that continuous structural over it's

Scott Hanold

it. Got

decision Okay. move Appalachia. you're a plans, higher drilling And a just have that -- of Southwest to a something us in is sense you on down App may question X focus Can there the bit Northeast roughly my maybe activity to bit increased your return? going versus little be wells in up second you give

Dennis Degner

our always We've like really Dennis. area is enjoyed that of this Scott, portfolio. bet. and You

standpoint rock other the in performance Southwest so well like we competitive is quality past We is from And PA. the that have good. assets feel with in a

time, looking some As though, economics over certainly area different type you know, level course the presented of though. in back differentials in of pre-maintenance that program

doing PA. you at competitive look very we're what it's at Southwest we're in with today, where As

And take existing to with returning up some Washington there. in also to sites, the move a up of pads and in advantage County by optimized pad of so system opportunity for right couple it for it a of and to plenty had sites us pad that for us been our gathering was how utilize program we've their consistent efficient with drill production, utilizing infrastructure existing room

basically it very to as excited add our and to something portfolio see this year. So competitive we're we

Operator

from with comes Michael question next Stifel. Scialla Our

Michael Scialla

Mark, you XX% just are to some pointed equal that of Slide XX, market which just to through the shows free cap that flow your of I that XXXX. you could understand assumptions wanted generate cash assuming In are guidance can beyond of Any as in are kind what forecast well? particular, 'XX? that there give on built forecast. that to inflation built and you you taxes that cash differentials into

Mark Scucchi

Sure.

those out pricing on as years, basically and flat 'XX. laid it's with So based each of are 'XX roughly for Costs ‘XX. held 'XX, strip

reflect seeing. the financials. given think NGLs, point that XXXX It inflation a that does the conservative. curves, taxes at as cash cash are the backwardation the We perspective, somewhat but level, we're it from reflected pricing which is would out as So current reflect particularly well. this taxes modest gas I does in there the state in

to use our taxes and we and NOLs to XXX%. reduce those in shield effectively, Pennsylvania will continue use, can you You can't but manage

level. very digit, income So single like I pretax low effective X% think type

federal NOLs. the $X.X have income level, in tax billion we On

would well assumptions. be income number So that beyond of that I the years, frame these shield to should for a pretax of expect time

are baked assumptions are the here in. that So in other contractually items

cash costs, XXXX, than $XXX savings, you have the right just XXXX, mentioned, years, contractual next declining really, By year, transactions are million. million annual also XXXXs, X take We've like as it's out again, see by again I XXXX, you capital we greater in down So XXXXs but the be executed contractual in the we $XX of for can in this do aggregate in cost costs declines. what save more will seeing savings. year where million all and million $XX the X, savings. By gathering over now interest. the should $XXX this roughly at and when expense by interest that Interest per XXXX, expense year already and than look end we're of

say pricing, that. pricing that to there's reflects is no trend all with conservative combined assumptions beyond So contractual this speculation and or savings, on market

Michael Scialla

say are Great. that you completion more Anything efficiencies What can changes day. procedures, Dennis, gains and made efficiency sustainable? you on new per stages confident you And that? then, talked about are those about improving you've frac how

Dennis Degner

bet, You Michael.

is of Some we've the frac the time with of the equipment amount stage we configuration made at have one. really X our beginning standing reducing well, the as layout that of wellhead in surface to our changes the of between next

X,XXX let's that site year. pulling given to in almost say, XX and when translates minutes to that, stages, and trying entire that into XX it an you frac X- a type interval, around color of start into pad some you put to over just So shave, do just X, program X-well

that So location. procedures that's efficient and some where utilizing finding the different allows we're us on to more equipment be

Operator

Our Chandra next Benchmark. Subhasish from with question comes

Subhasish Chandra

have but obligations of you're when derivative they achieving So be of This contingent balance a look sheet. about opportunistic perhaps pastures. reason the the a stretch, when you're I think there that GP&T, OpEx are few towards, might better have this gaining to say, from hundreds of assets is of decade bit with now efficiencies and, you incrementally all half course, some get perhaps these you be more Range other XXX% like a look the today inventory there that with only Or in a they those certainly, is reason for efficiencies? today, look that back millions couldn't years and the of any

Jeffrey Ventura

pointed capital-efficient Mark those advantages core time, do that inventory previously improvements actually really advantages into that and shown that the on out the thing, some it. Let can have given to I built same point But there's coupled our inventory Mark start, that but you are is Appalachia, and team. with confident real we of with we contracts the that that the We And and mentioned the slides one are continue chime fact me of to believe Dennis in inventory. largest most we the in. have and can think out feel

cash keeping us long generating great do just investors down free puts flow, able significant and and be in executing of it position to So our that a and returning free for to a time. cash flow head

to that makes Dennis? something extremely that talked do extremely that past you And which plan only would anything there's the do to high if we But is better, stay or So different. Mark, that. add in bar, want doing we'll an we've disciplined

Mark Scucchi

Yes.

this even very these years even resource cost that think cash out, pointed level a after today, basis. per of maintenance combined the you're X, you contractual savings. shares, as the reducing per XX excess back production for potential X, exposure buying look the to locations Subhas, share a share. by count, flow maintaining cash of flow, with inventory, still share business, I X, given it And produces as looks similar Take could activity depth greater on

in value still is Growth the element when at with for per perhaps growth the the growth it, compelling clearly we there really story. point calls So what flow, the in think story. and powerful share so some in cash production, a Range market to growth is is

I I think the it. money towards But and today we've we think effort. details behind really all company's shows touched are the the the announcement on putting that Board

Subhasish Chandra

on just then All the tax question. right. Excellent. And

around And level. of guess idea? of is So the a tax much it not I level at at NOLs the federal billion? state Is that the shield $X

Mark Scucchi

are both. So intervals of there

Pennsylvania, the NOLs. you XXX%, Pennsylvania, another in tax In million year, very in a hence offset offset low rate. your can XXX% of of there is but in billion. $XXX federal level, And about a there's income, it large at effective $X.X cannot percentage not So you the given then

Operator

next Research. from Josh comes with Wolfe question Silverstein Our

Joshua Silverstein

no or of now, it's how with are propane per or in in an there ethane am share. Appalachia? Range we projects outlook growth export you think what right or kind I other or of whether growth no to environment mentioned for that gas curious You the this like about where are happens cancellations nat environment out if in growth available pipeline we're

Jeffrey Ventura

I Dennis But then start Again, has core one. think let inventory. this maybe on back out to advantages is chime can -- me Range the going and that again, in that

really distributed look evidence around if and you look the country, around the think cores. not basin So can you see It's evenly. of limited we

the of core. a One having is large lessons we have

that So inventory, into share or space basically market the can take we system. as core take others there exhaust

it, going of lot that's to bring look I Europe to The fuel. fuel you're play you But XX/X. It's United the kind an look States. role have. to transition. is if with and large key and has it's a energy we think, and United abundant some gas, home help of think seeing, advantage So the Natural into a States that I of

ultimately, think agree I with there's occur, the for although a So gas and issues will with certain the need I in meantime. expansions those pipelines

it's although remain and ultimately, with new for projects the a help Philadelphia Mountain will while, think challenged. ultimately market LNG we think, share help Valley extent get completed, ultimately, exhaust U.S. to take whether see you those with, that geopolitical can in So as I But others export I with the trade been has core. coupled facility balance

I start should think cracker it gets completed up and shell this year.

do Dennis, So add you comment? want to that a or to

Dennis Degner

on here. well, Jeff bet. I'll jump You as

impacted out portfolio. the out at take call. preparation on reminder, additional just earlier flow was place gets The be there's to averaging gas coupled basis demand, that seasonal on reflect with look see a for and is XX% the really in in at about It’s in something transportation think year. opportunities. as our when just we and the in our Bcf basin, a to put a you X years to touching also remaining basin cycles, of but just you into. seasonality I production as fact ago number of in local When on Mark Again, step we XX% the there have look for basically going maybe of ability a back another throughout almost I'll that's

where level we've of now good and couple been discipline you past third year. you're for maintenance for see look years, you a X, materialize past the think that for programs the at when I seeing

a of consider in we inventory, the in to space starting earlier into a position feel different exhaustion. as puts conversation inventory to we that that talked this ahead. somewhere of be pathway, And some think good to in able the capacity And further maintenance to -- long that into a in want produce along profile basin. parts us going be evolve years that runway to I of places there's we us some than other you're in around like that about starts other to it the a from the And see event

and to really you there. you'll imagine, at again, In Bcf to like think it's months some to, it. XX. of hard next So we When like providing next XX see further get commissioned we years, LNG Mexican that were today just the exports, of a the literally ago, impact support wave day more we're also start couple and X LNG but running about of

we're is inventory think in So the great a where and when our position today. think you anyway, about we program

Joshua Silverstein

going PV-XX. then buyback, And comments to the back the on the just

the over the don't the base had or the, this price share know, I on you chart take about price the of commodity well that to order of You've buyback years help so. about X PV-XX that. asset think for Talk offloading the want in being and buyback. of stronger that last around with environment to assets some I advantage noncore to take flip advantage the accelerate that

Mark Scucchi

think do a us reallocate the prune good And asset over that's is Yes, and the base to last question. years I you've seen divest what capital. several

efficient multiple part simply costs, broken development, as blocks you some if it's as We very possible. position, facilitates makes water So lower we point a the less recycling legacy position more have efforts efficient handling have or and today efficient higher of possible focused where a inventory not and that to block where a of rates return, out the it's inventory. assets divested

water of So development plans of is and at the this existing existing stage, the handling nature of the blocked-up gathering position. part the benefit system,

achieve else of were value value it, capital that create really inventory, capture would remaining would you for position the the accretive. that if somewhere is you and to So actually redeploy divest you that or

we this an position that motivations. clearly, balance And asset no going the for infrastructure point, and today have divest driving for we it or production the development stands. force the horizon I sheet development think and of the We for forward. like at to as other like there's

Operator

Doug comes Leggate with question Our Bank next from of America.

Douglas Leggate

credit my know cost going of question of have you that the average and framed -- is debt on really touched still I'm buyback you opportunity challenge on weighted cost to it around ratings, that earlier, high little gives a you buyback. but Mark, So a you bit of on the kind announcement. the I

is So How cash is, why that think did bit rate if $XXX debt. announcement? the agencies you're what do cash there your what cash around that silly looked -- the you given But like I a free still flow discount you announce flow? on question planning are of down you your your simple it that million? a Is significant, paying know capacity I to only free paydown? do high flow. discussions little are debt sounds think a with else about the as of free bigger the guess credit perhaps And

Mark Scucchi

their evaluate as with well back there. credit will discussions regular side sure good banks apprised evaluate equity and we're side it, agencies, risk within perceived evolving our as But make the to over rating perceive the the and credit it of income the is them we a really investors plans. keep we the clearly, standards to we credit on dialogue time. as So manage on as They overall as that it Stepping to fixed There's risk. operate cost. trying as how

to the share but our example, from -- I'm a it's per think basis. could not sure of most I a efficient returns you XXXX. hypothetical net as the mean I look by at you debt take X end that's

just Clearly, that XXX of short So only a We million, XXX million] we announced [XX prices million were could that back announce ago, just XXX mean couple why more in This announced step. it's prices program. -- $XXX million we much order as use we that we bought when lower, and million? shares. X I only expand announce a I not it. is, we mentioned It's today. did earlier, commodity years

I'd pay deploying the back So buying I it It's just not just and formulaic think, of way the while is Doug, shares. yet. blend a continuing down position to this debt is cash

Douglas Leggate

as Okay. this going I'm my Mark, follow-up to is on sorry, well. be

elevated. cash free really I'm if you sustainable discount about is on is getting that rate decades your inventory, the what at flow, think pretty that of So

is So a your back before stock the completely buy opportunity terrific you've rightsized. sheet balance to got

you would strip that what couple years the my So the looks we reload words, be million think like? question a you've as it of is, announced pretty reasonable of that I expect next regular much today? you although to holds that see would if pacing on basis over XXX today, would In guess fairly other the

Mark Scucchi

refinancing And that taking think I cost that it expect just just, in down we debt would would improved January, capital, I reload periodically. for took tremendously as the out example, where seen overall our further. we of as far you've

the rating keep agencies, So profile in pace and lower to I as capital certainly ratings in you've going think to the continue expect of rains improved implied would improved. reductions seen those multiple so And with credit forward. cost upgrades debt I credit

Douglas Leggate

For out exploit what growth free paying is laying that a it's worth, the dividends. value model in and think perfect dislocation to of obviously example I you're cash how

pun. the pardon So

Operator

the are of conference. nearing We today's end

final will for TPH our question. to Matt We with go Portillo

Matthew Portillo

the quick X reinstated back on Just that half to this the year. in common a see of Great dividend.

and forward? the your sustainability growth itself here. should important that's of how the for think progress think it of we an terms on strategy about framework about Just dividend Obviously, component further in how moving curious for you

Mark Scucchi

a good it's question. Yes,

I a view twofold I commitment. commitment capital. to I cash return It's think, mentioned as a earlier, that as

or valued clearly So on the than XXX% That between industry reinvestment investors' given what our massive intrinsic rate making is. had this value been that and time, said, not in of from something in There's its it the questioned dividend the industry disconnect historically. underlying for Range based the some greater put XXX% pockets. is yield. a It's opinion, returns real

but line cash indices competitive dividend return. XXX investors a other is a S&P line peers, the with think to in or I importantly, more that able consider level, both certain there modest a So with given in that level dividend makes

I possible of given be share growth But the on the program. is over our that shares, that think the in would focus repurchase time. today, value

Matthew Portillo

pieces you guys further to locked book I but basis. Should it just here hedging Good know you commodity Perfect. next that a at kind on philosophy. year? into expect remarks, how some point additional step of curve? XXXX And relates we but with curious in on hedge progress your curve bit that prepared to kind as on touched hedging on in thinking have then see in just are moving we gas, a the the the -- the this natural the forward of guys fundamental you Or thinking about as through of

Mark Scucchi

we be year. range more risk half to ability cover historic to a with XX% of We to of to sheet was of this By as as by of needed reward revenue, end it, the gas balance we've our percentage definition, into XX% think always levered. higher calendar more is about in given hedged opportunistic done natural cut -- Having debt a which is the year, enhanced. the higher our it's

capital simply program We being motivated and support balance the sheet to to protect by the returns a able of capital. are fund steady

the slower program. an like been to indicating. data So add indicated over more what the upside to hedges. bit than We've last the the that has we collars the the because more years SKU meant the did in there table little and even been was was the strip added of We We on couple we patient. is swaps. fundamentals a evolution on We've felt fewer execute upside, that how was

that how logic still those the are. prices It's think to backwardated strip. look I we particularly given holds as within forward gas the NGLs, typically case

So But contribution from and the NGLs revenue keep we stand XXX about X/X as natural mind is you in look hedged. gas today, at where of condensate.

XX% collars think of but we is maybe the roughly use we prices on we're XXXX, revenue levels, to to what is hedged. attractive So upside. reach still hang

today, only of assuming program. approximately about a call hedged maintenance XX%, revenue it's So

steady and being support of returns the just industry a the again, you'll capital sheet but enable returns other manage capital, us cadence are both think opportunistic see about while I balance to out risk, to programs, every So protect be there.

Operator

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

Jeffrey Ventura

team Yes. for if up questions. the want morning, thank you on follow with you. to everybody and participating our free Thank I to additional call IR have just this feel

Operator

participation in your today's for you Thank conference.

at disconnect may You time. this

Range Resources (RRC) 23 Feb 222021 Q4 Earnings call transcript