RRC - Earnings call transcript Q1 2022 | Range Resources Corporation

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Operator

Welcome to Range Resources’ First Quarter 2022 Earnings Conference Call. [Operator Instructions] At this time, I would like to turn the call over to Laith Sando, Vice President of Investor Relations at Range Resources. Please go, ahead sir.

Laith Sando

Thank you, operator. Good morning, everyone, and thank you for joining Range's first quarter earnings call. call Operating Ventura, Chief Officer; today's Dennis Executive Financial on Chief Degner, and speakers are Chief Jeff Officer; Officer. The Mark Scucchi, release that had updated website. you've a to the Hopefully, chance investor posted we've press presentation on our review and chance had the review presentation a updated website. press on we posted Hopefully, our and investor to you’ve release that may reference this call morning. certain We of the those slides on

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

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

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

Jeff Ventura

And thanks morning’s joining us for everyone on call. Thanks, this Laith.

the and Since it becoming discussing wanted the the the producing successful across shale Range XX in development some the market and ignored global higher challenges while ambitious fundamentals, supplies, policy environmental are it's natural experience gas I demand gas the natural that driven result Before years Utica U.S. massive we're the exposed gas longer are in and also a been and achieve some life under prices and Europe The which has on than Russian gas prices about natural February, of creating the lower to the challenges, physical to U.S. Appalachian and significantly spend through. exciting Asia. pioneered by nation's and from year-end from gas pricing destruction making quarter the and The resulted more had, and ranging has in has lower witnessing significant of jobs, now States Currently quality tragic watch than of Pleasant in number competitive, flaws policy world. XX% in the first the and producing field supply trying natural of U.S. And of manufacturing nothing abroad, making is supply and significantly natural loss invasion grow term infrastructure. countries, largest few in over investment minutes production in commodity lower tax of the prices from / one is utility contributing the helping generating energy of decisions to to other energy Marcellus to to our longer security prices energy humbling infrastructure for U.S. abroad. than the as goals. realities the our third all moved United of country. the the revenues for varying Shale producer call Ukraine Point keep providing largest U.S. in cities has that Marcellus or governments Range a to miscalculated term positively balance, reasons, meet chain for bills of world energy to issues struggled U.S. ago have trade an Board over working capital the

lowering primarily In addition, of emissions, for world from the gas the substitution generation. and U.S. in natural has power coal led COX the

both moving done lower meaningful footprint more Despite ahead, in emissions, and gas, than has in can country believe improvement to carbon much XX% gas in natural and coal. the that by globally. natural be our years As a this coal we from should

future. demand at that a fuel natural experts in sources Appalachia that lower world see reliable, while incremental solution. growing and access forward, the a As safe, and part that increased ethical, being projects move we be look to mindful global shortage we independent of gas global There time of and same prioritize believe towards abundant desperately of carbon the continuing the in-basin needs years secure, to that a should ahead. third-party is takeaway believe We no Appalachian will in NGLs see

currently to meaningful long form and state Appalachian natural the of pipelines have terminals ability gas added infrastructure more part governments term federal call the / infrastructure. policy the a to in increase supplies need Point gas delays, critical increase natural markets However, industry in the be believe a and to natural natural gas LNG States. provide of of the the LNG that support investment in to from permitting additional compression lack Marcellus capital decisions supply and on require and the rhetoric end gas Pleasant infrastructure that that to global is local it. and production We Utica will get discourages shales the hindered But by United due meaningfully and to from

So company find ourselves in we does success today? that positioned We where the price next believe we leave and and year foreseeable for have future. Range for commodity whatever in infrastructure scenario the year, this

the efficient the in we capital curve believe sit end cost the natural low global largest most world, the gas in natural gas. of operator As the at field for we

of producers the amongst given standards our financial an and hedging operational focus key on we've a access recent Range and given robust intensity the operational and efficiencies, sheet most additional our Marcellus delivered peer on Longer with our term, we markets to year million robust quarter slightly through $XXX million within we're program $XXX the off believe in will unexpected some capital and with absolute I spending margins but full producers, debt Range budget, see full production to profile and outside is on those capital a reduction marketing successfully thoughtful results steady year reflect plans a advantaged Appalachia. safely being better quarter prolific a applied minute, in objectives returning on made our capital focus efficiency, balance leading million. the XX% basis. with approximately budget drilling to quarter with Importantly, have than Operationally, emissions coming for Appalachian completing a daily XXXX. guidance being expertise, of of $XXX also other operational or and progress Enhancing bolstering track the on differentiated shareholders. Range great advantages core drilling and first start. and details Dennis on to nature our multi-decade us our of the of of inventory development putting as cost, on provide

than $XX margins, starting Belvieu to price equivalent to Range’s balanced at production end premium prices, plays. Overall, Looking gas natural Range per and a and in price other a natural daily multiple its we pure premium over to marketing for over $X.XX weathered that's per natural when compared production. Henry mcfe. producers coming received in liquid Haynesville Appalachia, first first the mcfe Range of aggregate quarter, with deliveries in greater Hub markets. over Mont dry a with barrel gas unique gas something price, $X as or natural gas thoughtful delivered premium gas the the volatility quarter received also represents per differential at This $X.XX in

commodity dividend to prices free were repurchase to improvement when absolute higher directed of reduction result, cost requirements million a highest the in cashflow and maintenance truly for simultaneously we and continue returns commodity provide cycles. peer-leading a announcement record more is a natural as quarterly last $XXX the be We our capital months lower trend a again accelerate share generating meaningful year a in comfortable through realized This in us call program. of much because including to debt towards fraction this share competitive foundation U.S. and per flow globally. February, structure The the commodity company gas cash were repurchasing sustainable an us the has the two free shares our rerating flow throughout becomes reduction absolute business, what As capital and we a prices allowed announced underlying cash believe flow that base year. for while solid we simply of later free a this evident debt prices making in being value we with long-term particularly cash February history, expect is over

of early to year while funding our repurchases. billion current billion achieve and $X sheet appears objective can have in the next we strip $X.X absolute pricing share long-term We that simultaneously this financial It dividend debt. base by discussed target now at balance

the we we reserves and still as While move over last years, believe substantial the we capital, to two plans. conservative development a higher and continues program what represent assumptions our mid-cycle, to Range’s buyback materially of stock traded base the prices our under are pricing believe of investment value discount compelling a underlying resource

of Range’s for At Range’s XXXX various run we at point reserves can a we $XX.X in year was end, as XXXX a to portion proved the reserve the company of valuation, NAV strip pricing, value PVXX of year While inventory. and end addressing valuations proxy billion. our proved scenarios

to presenting valuation is create balances, on of backing net years north has that put, equated after of yearend out aware, many more definition our resource beyond Range reflected to this our we price equity opportunity core meaningful Simply Range five-year significant in don’t this for development. program. proved the Based context, approximately share. $XX through for buyback debt the For you’re PVXX share wells. window, And additional value only share pricing per recent of thousands reserves per share per SEC Range’s long-term five strip believe this value allows and $XX as Marcellus of well currently holders has

I to mentioned that it position our turning the Mark Before Dennis, history. on company’s believe last I something in call, in I’ll truly is reiterate Range’s over the best which and

drill and will business affordable, our cleaner, sustainable and helping reducing which everyday of meet continues and more of well-positioned world efficient fuels. which in others Range intensity, the And our will service is potential high-quality improve in cash With Marcellus history the well-positioned standard and said for returns more gas healthy fundamentals emissions cost and leading the flow favorable measured is charge their inventory Range of through to and resilient of leading living liquids better improvements abundant be capable free I’ll current those intensive natural reliance be de-risk in generate low lives, will see reflected gas sustaining us next margins. to the of enjoys complete returns massive believe Range’s that and natural on most demand. the As future all with in into cover the decades Dennis per Appalachia, with natural debt, coal Underpinning core Range At in peer That carbon help is We whether company capital gas long-term spending natural today, capital generating allows gas Range’s rapid shape to to than on to cycles. are among value continuing their now same absolute be wells capital liquids to time, we best inflation significantly mcfe, that move a that sheet and the to natural and translated efficiency Range coming in supply fuels, that operations. are transparency, also and within power the to shareholders. balance business requirements generating this Appalachian when other even and the and billions gas healthy more months. for in generate towards NGLs reliable, shareholders. and foreseeable a lower for on cycle. future, ask the

Dennis Degner

results overall our is we’ll on months that track our the with Jeff. work along achieve capital describing and on year ago, a with XXXX hand and to call, objectives. objectives discuss solid safety on The A start today environmental our kicked to that focus this during two operations earnings program off plan continued this our over Thanks, clearly we deliver to in prior efficient performance year’s off little a year. reflect by glove

level second level early half Bcf three several first $XXX past of quarter February. on front-loaded section the drill in putting us the our our late of year crews. with XXXX two quarter as through impacts before activity track tapering top X.XX during higher million year, came a capital XX% the of second in associated the to the or to our in horizontal this shallow rigs off of utilized turned In in annual half sales QX and a $XXX on second the quarter production to puts program number operations, landed day. budget. million increased of spending in at higher and first driving This it activity vertical of later first this guide XXXX. activity continue some to to X.XX the drilling consistent results with X.XX production, equivalent approach us storm winter in Focusing for is of for at on strong production runtime hole million rigs $XXX frac equivalent Bcf We is capital the with came weather-related approximately to throughout helped and per This track and to per field offset guidance wells quarter scheduled consisting of day, years

to expect the to the on while given sites. XX plan We lower production to than XX day. to driven us on being on average Southwest of in an year, more capital lateral components were our continued versus on top last be in pad them and at increase about lateral same along across on X.XX second Bcf deliver our we in efficiencies, laterals reducing Range’s length and second than midstream was We’ve and many of to XX% expected drilled were is approximately efficiency Pennsylvania exit talked laterals more when one Though, plan which production XX,XXX maintenance the slightly placing our Bcf XX,XXX our day calls in feet, at production by the X.XX full three QX with had wells of wells wells Appalachia, foot further environmental maintenance and we Marcellus and highlights. operational capital the acreage returning in of mentioned, Shifting putting footprint. dry in drilling as feet pads cost averaged quarter factor. positions to existing quarter that average, success period along PA. the the on call. Drilling them using XXXX. importance of same the one per mcfe. capital first of XX of equivalent the this a provides half history. equivalent earnings per or Of with X.XX with per laterals our four is Northeast, wells our time is infrastructure three QX in The year pads program increase XX In track longest drilling production touched in prior leadership whether in This overall particularly per repeatable existing to results QX, the the measured to operational than length wet drilled, This while time

efficiency drill basis As gains by to when this the quarter, reduce timeframe inflationary from a in of face an enable example, impacts cost on of our long first laterals compared team costs the X% during the foot first to during the XXXX. the per drilling quarter

a under For completions, XX wells X,XXX while were completed during the quarter. stages Overall, efficiency the over frac team a setting completed day. averaging record quarter frac per completions just first by stages X.X

call, and equipment an During procedures. to surface in mentioned our efficiencies emerging our and step new we previous attributed change

day our shows single stages per and a forward, the one this latest As was look and reducing completions XX program to utilizing seen our the of Water many from key efficiencies. cost. improvements extension which an our and fleet which update, in The future component mutual was teams to a reducing operations time In an by We we examples cycle in contract produced frac This recycling look existing all play new operations savings is cost efforts footprint, new as third with of improvement a collaboration first This year, improve natural technologies higher long-term process for our in program excess a team in first to while for our from plan. stages of pumped water generation in frac achieve new regarding while improving the of water for forward continue emissions, role million. record and for pads day with you commitment activity. we also capture quarter gas has This equipment quarter our type further continued our continually will completion deployment our $X during returning electric this Recently, will creativity utilized, reduced goals. fleet Range’s nearly the configuration to just a signed assets. achieve continuing with extension considerably power of for The ranges an frac strategy a our and to year. party the production, minimizing partners to development as QX million February crew, X implement fleet partnership barrels during of the service overall operational of continue this clean burning from capital equipment by smaller have may move quarter. to team’s our announcement range and where ESG procedure. generating

across reduced Range production. $XX deployed which storms savings as adaptive and water XXXX, prevented efficiencies, allowed Again, repeatable lease million with advantages in position. continue and tank the to having Our to to flow expense capital operations guidance lastly, per technology and for acreage the unnecessary one expected. prior us allowed our for the first demonstrating finished saw the nature block at generate operational ago of communication, and winter production water Cross logistics mcf the it $X.XX winter Range under end the high of to water of reduction just plan software trend large operating and of year efforts the durable focused a in uninterrupted further impacts year. scheduling equivalent, And to putting levels cost many range quarter field departmental continue a from

Before I’d on to to like marketing, touch briefly costs. moving service

changes adjustments monitor chains, as needed. We and to global making continue the supply to domestic

by entering exposure we increases Although, November such mitigated frac steel goods extension, sand, into XXXX securing our discussed in and steps, the possible commence fuel, previously on commodity we’ve which fleet have by X. cost will proactive as seen contract as taking and areas where tubular such our

and worth cost to it’s adjust against think though, as chain continue based necessary. some peer Range plan and do as to I will providing discussion low landscape inflation. service watch well cost our decline a the inflation hedge We the service supply leading context as

For lowest $XXX approximately in basins, such higher Appalachia context, million million cents of our maintenance the capital cost, you’ll and $XXX is production. the out mcfe fraction higher decline per to as program to $X.XX is what find for in XXXX of works a of This Haynesville.

Shifting was Ethane extent we’re Range demand for and above domestic increased versus quarter, first XX% inflationary this This Mont prices ranges $XX NGL ethane the continue over pre-hedge XX% strong year-on-year. the while backdrop be five-year Range’s coupled through manage U.S. there beyond first and diverse the to it were to are price be to E&P marketing. Mont estimated year, the that higher barrel to to helped contracts drove should advantaged push Belvieu these pressures and with fundamentals portfolio the is positioned more companies. of average, well NGL Together, that in So, exports the from other $X.XX premium quarter. absolute barrel. per a to quarter higher Belvieu through than XX%

performance or XX% was propane XX,XXX the demand that such day XX% demand above Butane the is following while growing demand levels, strong will weather summer, to inventory XX% periods plus export ethane Mont the online across price this first the nearly rising several boosted barrels This of per expected domestic maintenance. five-year support price demand restart for average shale cold is during expected ethane with level. domestic existing which as Domestic on prices low is propane to Belvieu come historic cracker Appalachia Additional natural in coupled quarter was blending facilities gasoline gas. similar, versus quarter.

of LPG The challenge capacity meet regions European Hook to ahead Range customers demand their in at expect the Range export well strength XXXX, demand our demand this strong those supply. terminal as to and positioned for relative as Philadelphia. outlook using NGL guidance export will bullish of markets, levels, Marcus the work domestic near X index. and further historically XXXX, and Belvieu per pricing the supports balance for another a ongoing Mediterranean $X the range to continued Looking to Mont to buyers is to look they through our XXXX diversify U.S. exports for to to XXXX low present setting levels Belvieu of winter realizations refill storage strengthening summer NGL Mont and This the season. premium up from price barrel supporting

Range’s in Exports was gas natural levels first reported $X.XX efforts, $X.XX of quarter differential XX LNG marketing mmBTU days Range premium across hedging gas from price NYMEX, the reaching exceeding natural This record Bcf per a day natural $X.XX in improvement QX, realized within production near cash average. daily X above company. basis of degree the a XXXX. per our Bcf including below gas and Appalachia. for versus the stable and of X% and $X resulted For of average pricing margins exports QX Mexican levels, heating storage XX-year per day. Underpinning winter

Before on performance. I’d touch turning it to over safety environmental like to Mark, briefly our and

greenhouse COX Range’s the end XXXX, emissions a low For level the within per a placing global equated equivalent, year to XX% of at and Mmcf equivalent of gas on X.XX prior approximately basis. intensity Range emissions

summer. program. sustainability deliver to and release our our slated deployment the to I'll capital marketing updates on to the to discuss of corporate for forward dividends once area. accomplishments most summary, financials. recycled forward months efficient Looking as see details it [indiscernible] two the and dedication operations, upcoming now our other past only on over look on pay report, new and at to to future continue we turn We efficient our areas the as water technology ahead. more in in to in no future well Range, In in the over training these updates key Range with sharing operations production operations We employee today from in one of other these continue reflect XXX% our identification and safety, to this look past hazard while produced years. for six water again And recycling, utilizing discipline quarters Mark capital water,

Mark Scucchi

base consistently first of over to paired reached from a pursuing It sheet life. of busy to shareholders quarter In objectives, substantial a operations $XXX value was delivered a Range to multi-decade realize flow scale asset costs. debt years. in net early million reduction the several month been acquiring program $X.X Capital as of for funded we cash million our share of after the March. million, on reduced since much with across billion XXXX. absolute the of And inventory We've $XXX Dennis. redemption the fit-for-purpose business. team debt quarter of Cash expenditures roughly stated net which deliver quarter, progress reduction XXX,XXX debt with Thanks and the shares by of re-initiation end, Range's debt balance focused world $XXX have over on value our world approximately purchase class, of

allocation As that year the billion we clear mutually level de-leveraging end debt coming noted net-debt-to-EBITDAX objectives line reduction able and and with going and of rapid of strip are pricing They competitive program. competitive additional to target levels company are X.X sheet exclusive. the and of our be debt be on quarter-end integral will we're shareholder call, execute the which of of achieve both not believe for to and tandem. overall a area, early debt in can capital $X XXXX. in in billion our prudent quarters, times With return returns sight balance forward to pristine strategy is capital in executed at $X.X parts These two

cash We our of waterfall reinvestment flow. a have described of consistently

company and fourth, capital appropriate. First, target Taking of driven at by first It's the that per year. pre-hedge returns was hierarchy margins; free $X.XX in free in use will to adjusted note to unit realized cash generating shareholders; the that and condensate are driven debt pricing. of utilize results; and infrastructure CapEx to allocation. look returns strong, With levels; cash million margins gas, significant second, NYMEX its to return cycle prices cash quarter flow flow to shareholders. $X.XX highest even production Henry first strong planned CapEx third, when ranges of closer reduction This quarter natural achieving on maintenance $X.XX of flexibility overall support growth by order flow entails the price full greater realized important maximize mcfe leading towards costs capital Hub this focused and natural to liquids, flexibility based on a gas is compared improved driven above levels $XXX risk last allocate

that pre-hedge compared up quarter margins $X.XX customer XXX% NGL or transportation the costs higher from capacity Mont $X.XX total a per cash efficiency. last a unit such unit prior basis. relates premium Range's unit mcfe are received range variations differentials costs to per in per with Belvieu excess total compared continued reached and barrel linked contracts production $XX to in Henry During quarter, per prices to natural margins quarter the expanded and of diversified line of and first NGLs. of over the price Hub price Hedged offsetting. minor through The barrel first the first on support by and remains to just primarily portfolio benefited a gas on Range's prices focus of processing hedging year, in change to costs, to other NGL which careful combination in year. items cash

in in upcoming and interest with expense debt the in of to January than revolving from executed Cash redeem per million annualized maturities. items interest XXXX continued $XXX will transaction savings and debt ample and reduces with in provide combined greater maturing cash senior free share, an par reduction The LOE interest flow absolute flow retirement completed further $X.XX million at and credit cash line balances refinancing notes liquidated significant continued XXXX. end $XX expense from at facility of undrawn quarter. quarter result lows refinancing near as in continued first the While G&A savings multiyear or such by further transactions

facility billion sheet return borrowing Successful lender the at cash sizing right for forward, quarter early results balance of $X with base commitments the last flow, completed and positive execution given were new in remains the of view a enhancements April capital balances five-year manageable The in elected call. further Additional with $X.X our ranges on expected maturity the billion, support revolving combined agreement. confidence range first of of with a announced profile. going program cash opportunities credit debt

have expect a this We the begun already $X.XX second the cash Further an under $XXX half per we of at reinitiate dividend in authorization. million continue annualized aggregate to current shares year, share. repurchasing to

equates varying believe attractive production repurchase We incremental at $XX the the SEC inventory ranges, reserves. the between given compelling market to repurchase adjustments Hard cash demonstrating our of We'll portfolio this providing the from is proved adapt swift prudent pricing opportunity significant ignores and to returns proved and repurchases. price. focus and without conditions, option continue our early business form share share a and program proved of but project in work, inventory the PVXX program, of use rough objectives Patients of current reserves free scale to remain recent value flexible over an reduction beyond to and share in diligence come the additional flow. capital core versus to ranges and business. this of value Using allowed reinvestment of reserves valuation significant gap with investment to plan returns expanded for value of and strip net-of-debt. debt or per precise

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

Jeff Ventura

will answer questions. be happy we Operator to

Operator

comes Thank Ventura. Our you, with of line Josh Wolfe from first question [Operator Mr. Silverstein Instructions] the Research.

Your line open. is

Josh Silverstein

Hey, thanks. morning, guys. Good

at out the imagine cash $X.X XXX of cash probably the how forward year, to I billion take How target remainder based or billion on $X are look you that free $X.X as gross to be about of of March to do balance? be billion the billion at to you're debt. XXst next of debt outlook you strip? but of You're your gross and nodes $X.X the utilizing trying

Mark Scucchi

Good Sure. Josh. This Mark. is morning,

So, you right. you're

this prices strong very it forecast taken cash free another Our years. year to earlier was have flow bumped compelling billion over $X what plus by next and the couple

So, we than previously that was with achieve the sooner forecasted. balance can sheet

December. near-term The in redeemed May be at So, XXXXs in the redeemed can the XXXX notes at be par. in par will

be or at would to here So, in as debt to leverage times forward to roll a within the we hit easily clearly I early absolute achieve in absolute likely, we XXXX. but levels early based absolute on Sitting in month two in are X.X we're relative leverage able want today, debt current well say the pricing strip XXXX. levels we within terms ratio

bought the that around But greater free labeling flow. what Slide of gives use circle we of is just the cash existing back does incremental doing been what to while – reducing highlight the date us the want program flow in balance and really future. We've return in free or on four capital five So, aggregate for sheet to to how our in forms application that creating what continuation XX, that this this return take in XX,XXX,XXX improving program, we free – it largely potentially the cash We've of of flexibility flow we've excess debt, billion or more a back our is just date. capital for optionality we're focused that value last may cash $X.X down is years shares. to executing shareholders.

easily lot needs of capital flow on cash a in choices the debt program. near-term us maturities, retard and So, gives

Josh Silverstein

it. or next Got at strip yield when stock lower that's to XX% kind are is? the your as cash about at about Are you a looking buyback well, on of free then the year. pretty level just prices that a and comparing thinking strong XX%, yield level at you obviously buyback that that the And thinking

Mark Scucchi

Yes.

think terms just given it we gut We check of compelling such a decent believe what just reserves a a We think gap of of yard the We to look shares such valuations. significant run inventory, triangulate market, least opportunities in value; a program. sheer to the is the proved down NAV. what of scale we different is number a relative value in the that opportunity is at I on sticker, simplistically that investment valuation. that's there focus capital re-purchasing course look using comes at that's ranges I other be of of but overall returner primary that, at

Josh Silverstein

to what follow you get Can obviously try into How volume you? send those volume to discussions going Thanks there's incremental sales guys? for that. to for focus you And opportunity the now Gulf are about then up, opportunities and of talk are the for You a Coast just international the pricing. just the now. lot

Dennis Degner

is Josh. morning, This good Yes, Dennis.

basin. standpoint, but on gas with our of you touched right XX% now I portfolio net I'll start our from think configuration. gas the I when it, mean, of gets out

Gulf another So, we'll have the other, essentially Midwest of then and to we call as XX% over of markets gets that the that example. gets XX% to non-Northeast that to it an

for the down past it's the no talk and and Alan we've rest NGLs, our heard, years gas several So, side you've the our on on team tried of about. the to take which whether approach, net

asset, much molecules get that to margins can our and indices enhance From be markets example, about. so at Belvieu European looking we've talked of multiple to Mont type structures, which know, have at as like Let's an our a being instead perspective, we being as contract index. again it possible as the exposure things alone different I exposed ethane premium to just could

on we the when have develops, see if that as LNG as one places moment, where to infrastructure expect pipes develop. Northeast at more infrastructure we and even LNG Gulf LNG in to of on you look the to being the to for at on gas pipes – going – to get emissions we curve, forward, that of the also when our cost fully conversations has there. come our you go only low-end and we're of just I'll like on globally. inventory going the and the to We for type more pick on cost the U.S. long particularly runway range the we to move also low-end not we're well that's basically continue support of play that to that low And like receives into that continue on being us the future the As feel have curve, but core at, hopefully look position facilities

So, we like decisions These into to ground. poised are for this for infrastructure feel the go we're that. well multi-decade

well they're infrastructure, we to supply. is want be going so, inventory into for who that to feel to to steady are And like build going going feed that. organizations And those our a looking for

years. So, get several look the we'll that of infrastructure forward. to those volume some those to for want molecules to markets. already going to past and premium are in type our future. going opportunities we'll We've LNG continue been in setups, have and those ongoing We've the got conversations for We the do space playing so again

Josh Silverstein

Thanks Great. guys.

Dennis Degner

Josh. Thanks

Operator

Thanks.

Our next Scialla Stifel. question line with comes Michael of the from

Your line is open.

Michael Scialla

Yes. calls the Good morning, everybody. Mark, excuse grow me. Jeff, market you it. could for said that when you

had or anticipate either get on even production when good or right higher you how terms does that does that Appalachia? from You've need would from or that rain the handle out market Range? pushed of a do gas – with all macro-outlook. either the at Appalachia does I'm wondering pretty specifically And look more in you anticipate when prices how growth now

Jeff Ventura

on Well, side saw even I of last the we terms in summer. macro Yes. think Europe in it

an and gas, the towards hard course, things supply, for all had solar roll with the and Fukushima away supply shortage yes, had and natural push need the critical. source With then like Europeans down last and tragedy now more issues they ethical coal gas. wind Ukraine wind I the having needing shutting the the and realizing, your and that with if summer countries a moving decade and types nuclear big of those last over of And source and of are even and you in of back pushing solar in and basically shutting post the Germany from

U.S. think gas from for really on So that, call the the increases I LNG.

so I'm increase producing has and discovery not Marcellus as the producer there would U.S. with in a think whereby the call globally. now far bigger field the the demand. of mentioned which will Fortunately, largest gas world be U.S. Utica/Point in the the largest close, gas gas Pleasant It's of even the call I U.S. on notes, is

again then U.S. crisis is call from away the pricing. Europe less The other in gas to to thing on and I'd coal, and gas in higher back or the coupled – you've to coal switching U.S. coal going increased with seen

supply, demand U.S. gas. I that all for So, think more says more

Fortunately, we're the has gas bill. in the that largest basin

the largest core have We inventory.

good seen position think we're front decade I gas in month move increase but just not course next you've So, the the strip prices now the really price, a for up. of and

good position. a in we're So,

and we'll capital As far this year debt that one, grow. with and at reduction; about that. to talked of capital for said we've capital; shareholder returns, waterfall ability as maintenance but then And stick maintenance clearly, the two, three, Mark Range we're the

in basins up, Permian takeaway. year within that's those gas which the of the all infrastructure called then seeing the but for, the Marcellus consider whole in by way, in So, things constraints a into you of pop infrastructure and we'll when and the just the Haynesville discussion and get that'll, on widening even you're not in timing potentially and

So, good international contracts, good we we customers core call inventory, have discussion. we have relationships we’ve think largest position higher, on we're in in a with U.S. been demand

So, I a think we're in good spot.

Michael Scialla

those probably market grow given out, there that fair the are in is grabbing of it much early? Is to able you to especially laid share that say things constraints not really you some or possibility XXXX,

Dennis Degner

in play. get lay in versus se, whether the that part XXXX. out we the the at you're Pennsylvania, as Northeast look year Southwest we'll of basin, different, it's later the per within Even in and the Well, of far part the

there's capacity play. cracker Southwest through shale we're takeaway retirements, come through are better part the a some on where we is Currently, So, in there the the coal in plant position, of will gas demand to that is on incremental discussion with types of for with complete. it capital big coupled and the it's things be focused follow-on NBP, XX% a and those everybody done,

people. things inventory, the we'll limits other And do any space. or gas to for does So, inventory more Tier not us, those thing completed that you see for then, XXXX? get that in takes I And core is basin X of see, but creates think, out other of that the

ability some also that So to and share. take some create space market could

Michael Scialla

detail. for to responsibly price where on Canary, stands today Project the any of sight getting for And just want premium and see there to gas. Thanks if follow-up that of sourced line is

Dennis Degner

At been the we've for had the across with that is awfully Dennis, question. pleased really we've this point thanks monitoring program. This the

through the I the in past, where think pads mentioned with essentially, had we've that process four Project we've we've Canary. it certification gone

and able story we We our data. continue on and continuing market capture really is like capture other that's that that space. supporting monitoring. [indiscernible] make covered notes that that now, to telling key to touched investigate to the alternatives call our we further the And emerging today so We has we've XXXX. more an emissions imagine, that we're The RSG than know cost you that would emerging in numbers for premium to still sure been as for right

until well. between just is our also data, let's with lot there conversations certification of the so we're what on collect as to with, investigate, we're alignment a basis, counterparties. We're and marketing Range there to further and having regular continuing makes pathways, develops, that So, various for were with team that that market, transacting ongoing say, sense continuing those a

And space see low would further tell continue this us in stand. forward our our I we as fully we expect move and of about play to to so, emissions story where

Michael Scialla

guys. you, Thank

Operator

Thank you.

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

line open. is Your

John Abbot

on for Leggate. Good morning. Doug Abbot John is This

optionality at, to naturally price to over them The agreements, sense first at this time. XX, option you where let specifically, optionality gas it given is gathering point question transportation potentially transportation your those with Number make we we have commodity And talk you on them on your the that costs declining have we're just where prices could have at transportation looking Slide about does agreements time? expire. redo. expire I'll that are in expire and Any let color then

Dennis Degner

take for think, the reasons that tackle at always to not is Yes, I'll But we're of and but why release, what decision is in. here. perspective, markets retain. it maybe the Clearly, of we ultimately, changes different good portfolio it But example, infrastructure, Mark as from But make we that I of to we've morning, think, a one to. if evaluate those an upon cost, depending the the or like NBP, the couched on you you first some you're in to end forward, a as point it asked it renew ready and to they one want the of And that I make could Dennis. to can conversations a in sense chime look as argument question, see. John. markets pricing think cost I dynamics as takeaway. may only what's we us around retain, starts here. had get each for marketplace This add get going very some they pipe going the yes, to also would expire what

we standpoint, I'll how to go visiting a So, maybe back diversification this with Josh started, morning. from

question that We get our other it And at But no portfolio some some make evaluate right your will we if specifically the today pipes activity, those it's when I maintenance see we get expect think, and low, we'll forward. that and doubt been decision we as of type we we'll move answer close historically. to or have one to type whether on for more each our are we it's diversification is modest looking way commissioned program, profile. be growth because want both let as we key to those important expire,

John Abbot

cash I then on is our taxes. And follow-up appreciate question it.

view, year suggested and understand $X you've NOLs. long-term we in have you free in beyond. that your per of updated Mark, flow the at XXXX You cash and least billion

there? gas, cash what do long-term yourselves see at you as $X full Assuming tax point a

Mark Scucchi

Sure.

of is clearly, mind everyone, So, commodity cash tax byproduct prices. higher a it's of for top

realized fortunately sooner taxes for while. cash we with even in are ago. But shareholders something federal Range, sitting gets with an of for So, frankly few our just asset $X.X That's position. deferral billion NOLs, strong industry a from higher months about a the faced starting very in hasn't a a that prices than

altered the generated, they those note important I going how think are that utilized are composition it's when forward. of NOL, to

of those taxable for billion up of about NOLs has to so So, a able used offset to are the up were that, those billion billion XX% your with and of remaining in you generated. when After $X.X of It regulations NOLs, and or income. be taxable Range $X.X about XXX% federal $X.X to the able just offset income. your to do are to total

and that don't certainly or some generated XXXX, few more deductions offset would the the to bucket vast XXXX. in XX% In taxes the you based on cash as for able as for years. federal is well those means use next years, billion it be what expect will majority, expect $X.X So, that NOL

taxes may very largely be And cash while next position that say to compared the pushed will think they it that's to and in good due couple relative a mitigated years, out. suffice I So, be peers.

We the for of state we've year at also commented Pennsylvania, state million end the X% noted type that Pennsylvania. offset within up of taxes. level effective XX% rate, income, again of $XXX level low, the some can very your the call that think about taxable got State on you NOLs area to We

John Abbot

questions. it, Thank Mark. our you Appreciate for taking

Mark Scucchi

Thank you.

Operator

you. Thank

with from Cowen. next the question comes David of Deckelbaum Our line

open. Your is line

David Deckelbaum

to Thanks for the follow-up LNG questions, I ask my might. everyone. I of just if wanted side on a taking

the of out have XX the deck, world with laid about of As call beyond of you where you demand that, In Bcf is up projects. an the keeping infrastructure think isn't there it growing I MVP, kind day incremental in slide that's necessarily certainly about about XXX a like – world your grow coming up on could we today, a feet know million cubic a that asked that a would re-contract? basis number others is for the general this think to there the a day incremental capacity Range beyond have

Jeff Ventura

of me to let at it Wait, saying high XX% I the just level, goes Gulf. mean we’re a

you of look to day. can at that gas NGLs XXX So, Dennis. Then beyond the a part ignoring it me million growth incremental let XX, XX% but just is the flip

Dennis Degner

and take little differently. a I’ll step maybe this no attack There’s think maybe I doubt. David, a Yes, back bit

sight. you the Once into infrastructure see like that or LNG up but whether a you to sends regardless as the of that part both gas show benefit place Range locally, really is built say molecules really in but pointed reaches commission on line some in here or to outlets when additional support ability goes a comments about infrastructure of as Jeff that other you ways the also infrastructure an to energy for all we’re local think would if other touched in his to growth having start provides morning, future of growth it as gets seeing and it I put becomes realization facility will, to globally, come optionality. into think it the this that infrastructure I commission into frees Jeff security cracker

around fact, our to earlier renewing. of in comments we expiring pipes the diversification In some some pointed of or that to

when the we Northeast, out that four ethane main as as optionality, outlets really optionality at molecules much regards our tangent. of us look So, the see us good of just three in for of ethane having some you like just a kind on

don’t that put see be our whether place, that by… necessarily them look infrastructure margins So, further I comes and know that we we the this, other improve do take see in optionality, enhancement into to growth that good we but infrastructure, molecules going into driver LNG provides the and and premiums through those or facilities it to we is best the margin

Jeff Ventura

Yes, or I commodities look wheat, like for like commodities trade or globally, natural except say would global commodities, gas. oil you at just gold U.S. if of kind

more should commodity. grow the expand as the So a global of U.S. and gas raise facilities should price gas gas should export natural it – U.S. that trade like

and discussions gas relationships in and come the the think we have it a global have of we’re general I more would we good to to some So, even the but like other get international LNG on access as in U.S. commodity. facilities just up players, trades

David Deckelbaum

would earlier bridge going. know only that my from That’s on a think domestic this might point, is a of sort Josh of there domestically for would how a fixed this of transition produced contracts gas fuel more offshoring as that you high versus And conversations Jeff. gas about global the coming trading be follow-up a more that asked great then that are demand I price incentivize would sort commodity? be contracting Do of from

Jeff Ventura

Yes.

U.S. time as think I again more and with will decrease that compressed. people or gas, as bid and for –

yes. So, is the answer

David Deckelbaum

guys. you, Thank

Jeff Ventura

Thank you.

Operator

Thank you.

of Our comes J.P. with next Jayaram line the Morgan. question Arun from

open. line Your is

Arun Jayaram

think the from to barrel. the of on thoughts export maybe end some fundamentals, Russia, impact get ethane Yes, Ukraine NGL the good morning. the I will team how you wanted conflict and heavy

So NGL thoughts impact think you to it the energy rerouting Europe on conflict and fundamentals. of call how supplies could the quick

Alan Engberg

a crude, It’s I The global with Thanks, on start impact is, I’ll it’s The Marketing small question. of to and a head LPG Arun. This LPG. it’s Liquids is with like respect gas but rather business. our the big up on kind imports. good impact, Europe’s basis, Alan. with question. Appreciate Yeah.

call the roughly day barrels waterborne to markets barrels XXX,XXX overland about it and per per via a exports Russia So, of LPG markets. day XX,XXX

as total around And tightness any So shortfall could it’s again, Europe’s of that out have but situated is that’s standpoint. the a you in be XXX,XXX barrels Russian Hook global those portion imports. and some extra supply logistics result to month we get context a best that, just from represents that of demand, per Europe really the XXX,XXX going of from the a much VLGC out tight barrels day LPG of X% per our to bigger particular, have that’s or Hook. is is And into day we’re to market best sanctions. U.S., if of Europe roughly replace barrels, per them out best just to from Marcus Marcus Gulf to equivalent put or due where exports U.S. so out five position of our That Coast of that to in

at So, out well. it’s than it roughly times Russia, impact some indirect impacts LPG the direct a significant There’s coming naphtha amount. of we what is. as is If X LPG. That’s a just look on more

go crackers, and are of happen tightening we’re the actually seen into widen that becoming steam and flexible shortages obviously that prices that more And what of globally. natural then can naphtha add could starting ethylene for to preferred is LPG And a in propane markets spread favor already between propane chunk the So, going it’s And ETF indirectly higher. that going They gas naphtha seeing are Europe. in high. to means of as finally, we’ve demand. big

gas, that directly there’s industrial So, going just creativity, be and into physical doing look continuing last complexes, continued to but fuel into there’s be put ways for anyone fall, LPG, other or refineries, LPG to to actually can shortages that to it’s gas. started whether natural probably spiking natural at motivated fuel if people

we see on growth could a previously almost indirect globally double couple years. call had next we impacts that the over So, of that the demand lot of for LPG

right it call XX% So, what of – around that means for now XX%, WTI. propane, down it’s we trading

And really really, right now. that of still to is some crude of gotten XX% that’s of because WTI of itself eased it’s and to just running view only winter. to also the why just I this going lagged we’ve and bullish the Our of have ease bit winter a it’s supply XX% kind fears think is be through little out recently things

being propane and the that say favor there’s see ratio and that liquid rest bullish more both of of year. and expect so, propane, increase price lag the go much crude with than we been through we’ll with in propane, And some as other crude propane but or relationship of that let’s fully

has impact a of of don’t have question, visibility For that. the to except there’s part is seeing the last of you on that the for that about lot high advantage think superior particular again heavier we in say U.S. really what feed feedstock. indirectly I really, ethane, so of your is something asked ethane rely we’re the an that don’t Marcus appetite much international crackers or stocks, really Hook been other out because the ethane cracking the of really, just on out far of to and for like to naphtha

So, we prepared with year go see increase our ethane we’ve as only his the and high that coming And continuing market, in continuing remarks, Dennis we’ve this to exports year. seen the increase. ethane new commented seen for we on given really and to through this forecasts VLECs on

question. that hope I So, answers the

Arun Jayaram

the was move that takeaway had a I capacity Coast. volumes to your to Gulf just follow-up, And quick have No, gas half guys great. you

agreements, those to – as relative maybe weak. the wondering potentially any would you agreements And in premium where where periods about pricing that type where Could – globally then day looking supply were You getting are in of a sort periods, marketing you producer signed exporters. where imbalance Are of be comment, long-term what you prices agreement if risk supply to and volumes? market mentioned to you relative of could it, a selling think have are XX-year temporary at, Hub? to about what let’s argue Henry I’m you’re LNG LNG exporters. a may a if kind you Mmbtu you talk getting XXX,XXX have call

in some agreements? of the So, I what those of about risk kind just have does long-term want to producer talk

Dennis Degner

current Yes. the perspective, from is day is And current this to Arun, contracting in Dennis. then the referenced I’ll start that XXX with a the kind a future. that move off of the space. we’ve already LNG

I were have some you it, call lot we’ll across a of the gas natural on look historically, think based been of, kind indices. to if those board,

But typically competitive so, to imagine a it’s how or as of it’s others, It’s some I have terms we structure. environments. disclose at common, way And exposure different a and to like. those it’s the think, look contract adding to We look similar what diversification getting in you don’t portfolio. pretty would range good pricing in whether –

it’s competitive we within the portfolio So, have today. that very

different we came And earlier, at indices other we’re of part to go touched naphtha first place structures whether as And of the to on as example, something and with that those hub on U.S. more reference or As it’s to we based were the that else. put it deals to European mean, basing exposures traditional, example. like a in different back open we I’ll an look something ethane the ethane we export its or along as an piece, conversations, though TTF forward something I whether exposure to

open exposures. different very we’re to So,

sure We program of also our that with though. we’re the risk risk the want to make aligning

that input Mark’s And risk clearly, play senior so into well. that to the and management of with team diversification. want sure make all that’s comes coupled that as where aligns We

with that to our playing the several of past years, been also we’ve align to So, it, risk organization. the for open space it in has but we’re

Arun Jayaram

Thanks. All right. Great.

Operator

you. Thank

for go nearing the nearing are ahead We’ll today’s Noel final and we conference. of of the Ladies Parks conference. answer our end end gentlemen, We of are and today’s Brothers Tuohy question.

Noel Parks

morning. good Hi,

Jeff Ventura

morning. Good

Noel Parks

maybe – free improvement upside. see since inventory as areas, just – call, definition with, you lowest look you two-year of pool flow Does is think extra concentrate the or it at patterns, hanging in drilling And – geography the benefit to we return to from just last for the that a that cash far flexibility? With just implications you for high then. first I’m wondering the for $X was I prices wondering inventory fruit prices, in a and the if or the since certain have sustain What’s price is of as ability expands strip because course, its does lot your while. for the out I $X.XX get inventory sort about priorities. up is higher how give that any about gas But more

Mark Scucchi

it Sure. I’ll off. Noel, Mark. is kick this

of to our pads. over infrastructure Northeast, a across So, new existing in number footprint XXX existing and adding well And as pads as Pennsylvania, as with Southwest, well. pads, Pennsylvania plus years wells ranges building of pads practice

got I’ll call a year. what You’ve an superficial inventory blended level, each program extent very a to within of at average

So, a not selected. individual year’s is necessarily selected become it program drilling is well not was at only Each economic XXX.

well So, drill economic we’re This this going to well. was $X. at

drill well. to going this go we’re So,

year, and system, program availability about return ultimate and realized the price net and destination a of the at the compression look the that we it’s it production. back As that program, gathering overall of infrastructure, be the for

of the not Pennsylvania, competitive. is prices are Lycoming that’s is a is totality the up drilling view wells would that question X,XXX which with Marcellus, and forth. and or you’re in the available X,XXX dipping and how price function in wells locations we wells One program on I all And TTF Southwest, you selected are up inventory. no The greater. because drilling than has are but So, answer different That the gathering drilling is, Pennsylvania. of inventory the with periodically the some into a hasn’t are beneficial, no. program, the transport so our altered. altered highly County The in those different competitive pad Northeast, drilling returns, It’s across is is, of X,XXX it, significantly say, returns come certainly those in

view but alter it positive, are to capital prices your a we doesn’t would the of clearly well I answer So and selection. allocation say, question, longwinded how

Noel Parks

had terms Great. offset this my do you frac Thanks in can have that also as footprint. have implications that of lot. And if smaller what forth. a far you or frac given as just and follow-up planning so wondering any to just operationally was achieved I

Jeff Ventura

more benefit we smaller our know pad Yes. the Noel, of the footprint kind would future. we benefit as I that as in Meaning, frame today, to return sites.

a we’ve look kind kind X,XXX do can neighborhood pad the the As around wells factor we pads that When to five continuing safety, to pad. to an I move across It’s and our our us of math. But reserves. having you of develop ability looking to at take the per all safely, and plays approximately somewhere in sites. wells our how forward average we’re a those close got producing six, around as harvest number really back with efficiencies, window you of field, of wells step around existing conduct XXX to operations, simultaneous infrastructure, of produce back, assets in

benefit in going So or significant we’re benefit then future, wells. back a as in that X, sites more few I’d say we pad XX the more even near-term, have to look the those

Noel Parks

lot. a Thanks Great.

Jeff Ventura

Thanks, Noel.

Operator

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

Jeff Ventura

Yes. for questions just Thank you. with morning additional might everybody and free thank call feel have. the participating you to follow-up any I to in want this

Operator

for you today’s conference. in your Thank participation

wonderful a disconnect. You Everyone, may day. have now

Range Resources (RRC) 27 Apr 222022 Q1 Earnings call transcript