RRC - Earnings call 1 2023 | Range Resources Corporation

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Operator

Welcome to the Range Resources First Quarter 2023 Earnings Conference Call. [Operator Instructions] At this time, I would like to turn the call over to Mr. Laith Sando, Sando, Vice President, Investor Relations at Range Resources. Please go ahead, sir.

Laith Sando

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

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

Our provides comparable of on to over to GAAP me and realized along these figures. that margins non-GAAP tables Jeff. cash product pricing other website let press turn supplemental with measures. reconciliations the release EBITDAX, that, the calculations details by call We've most also our of include posted With

Jeffrey Ventura

Laith, production safely for thanks, continued first deliver us on morning's in free this and efficiently key and assets plan and moment price everyone, to quarter, resilience program to Range's consistently on the quarter Mark call. of further strategic a in demonstrating flow. today's a objectives Range our operating the through generates and environment. Thanks, joining even commodity in that walk the will cash Dennis deliver

company our is efficient in competitive free and and and today. multi-decade best and cash be Range the history substantial given Range XX team after with is markets. to was shape last proud work the say diversified operations long it more announced where the of have As generate month, I company has my call. term, inventory, returns to access to Range, this I'm and I to years earnings retiring, will is last the operational couldn't position be done financial poised in flow

any of the future of curve global cost lowest end one the is sit For low emissions the of bright intensities the play. the with we very at as Marcellus,

high for supply Marcellus, our lives. for provide natural the liquids size the gas help going of just in agriculture. the products has from key heat to our few. demand electricity for ability in allies and It's to decades. generating It's U.S. believe Given it a important I we and manufacture for are source the ingredient and cooking, the a as used needed everyday and potential strongly plastics. remain natural for has gas name key products fertilizer of cement produce Natural a to steel of many the heating making and gas to it's uses and industrial making

continue Range Range's sizable in Given the a is importance shareholders. for believe desirable creating I core long-term position returns the Marcellus and and position, of sustainable to delivering value competitive

in the practices. world energy of be can trade producing Range in been the the This have all game of proud many. the gas largest impacts the of country, The that U.S., Marcellus affordable becoming and of the than like producing our thousands of positive natural becoming to Europe say is discovery that environmental what and resulted Before Natural U.S., improves helps create gas one Asia back the natural helps with industry-leading producers in The and over, a citizens prices by developed balance. industry have liquids direct and it and the gas We in the be U.S. the which I largest national markets. good natural communities in gas more we are jobs, with world. security in hundreds in the to of the XXXX far the hard country believe forever in team for natural turning grateful their I'd it just gas field to pioneered dedication, I'll work. for creativity and largest way changer as was Range best a

and behind driver with to be team, coal of the opportunity blessing in a in forward, have resources major team I've calls, Mark the substitution the an in forward over this emissions it it. with market and I more strongest reductions. I'm for long-term proud world free generating turn place we Board last the remarks. entire seeing also and making for move stronger my to we unlocked thank Dennis produce significant to the leading addition, is his Thank the the Range me I of been. you gas today so been it's God the team. two for not as company resilient. to to friends. colleagues the In Dennis, the U.S. value natural COX over to continue vast part past look of ever said but even but shareholders only now to team and I'll able on accomplish was what were innovative decades. the Range how and market on successfully and has

Dennis Degner

successfully humbled Thanks, value. lead be world-class Jeff. position to And flow, years with continue team we by great I'm a focused working we objectives. cash By plans said, Jeff translating It's the the on financial generating position make Like part share as operational our peer-leading continued strengthening dividend. and company in our exciting buybacks an returning of company even to form today. the future. opportunity further our and Range efficiencies, time base deliver in a safely free shareholder a Range to the the long-term in remain on In our of base shareholders in the the aim ahead and first a resource in and the quarter, to is completing capital to stronger to Range stated

pleased I'm to program safety a capital operations, track year's this Looking continued focus on a performance. on environmental report efficient deliver is to and plan at solid off start with is and that our operations, to

rigs quarter. most drilling resulted utilizing first rigs and activity the Our front-end hole loaded three for year horizontal in during two of top the

spend operating later year. of while before remain Completions We to the quarter of and weighted per with profile million was first crew complete operational well the with will activated of previous for the during conducted roughly Capital track us of relatively and This generates through program This XX% level towards in will maintenance QX drill XXXX, with in underpinned time activity the the activity our our half the in half XXXX activity drilling year. performance. the of for by equivalent guidance consistent with back Production maintain represents million crew year's day capital $XXX year. this strong steady quarter production off second $XXX field X.XX is came at puts which turn-in Bcf of this run level consistent $XXX and through end for and frac a million, level budget. was one is year. quarter tapering of second firmly which on the in line programs, cadence the a lines the

shape equivalent making to year highest putting of And fourth our We QX production lower weighted production the turn-in-lines as fits pick Bcf midstream annual quarter be well the gas current half full this the the with quarter half expect back daily profile towards to track have year, X.XX weighted the end are in the natural second production Pills curve. than moved production, X.XX planned up maintenance of $XXX us day. the million the second deliver of up per to in we equivalent approximately and on quarter. of a

highlights. to operational Shifting

drilling record and broke record drilling Prior's exceeded for in own day quarter. their team the times more the lateral section then fastest Our two Range during

all laterals wells is feet. drilling our frac capital than quarter, wet last the while records of achieved pads longest wells the across XXX laterals daily over Completions along to super-rich the year. range level that were per our average other in During electric lateral supporting rig. that horizontal located our day. all in with the greater just our and increase added footage drill type this with The stages XX average contracted of improvement team days successfully wells program drilling X fleet. three of horizontal a daily dry, incremental wells this strong XX XX% exceeding has for three in comparison, also in peer-leading become of efficiency utilizing per drilled By top drilling cornerstone footages efficiency. areas the X,XXX drove the mile drilled on a over a After These XX,XXX Marcellus, frac only X placed

team mix. per averaging Completion well line Efficiencies quarters stages eight late prior improve QX efficiencies completion on in in remained stages the per by QX with averaging continued in of into day with nine day. based to while designs varying and excess

new completed a As efficient be a standard for efficiencies currently projected pad future Range's a operational our forward a details to most overall our providing and to look history. We more of pads setting one is in is on call. byproduct, being

and and decline against crews to inflation. costs XXXX, seen of slightly. peer-leading call, low on we last inflation as context the Range's in we pumping a On service how signs base and price some show receding the serve provided cost of rigs Year-to-date have start hedge well

pumping traditional be high continue increased. drilling but crews demand, the crews of availability spot Next-generation in to rigs has and

XXXX. which broader increased translate year. well tubular productivity efficient low our and in decline this peer-leading capital likely starting and lends remains our could position, base also savings more to is sand in It raw position goods With Range blocky itself to well leadership given acreage Additionally, intensity, and a occur signs strong materials and operations show on this costs. are like savings availability. commodities to one-off of later into possible slight

above Shifting record the the per day X.X stocks macro. record of X-year period over keeping range last barrels over an NGL the activity looking per warm winter. unusually increase an approximately the of a driving at million million monthly level XX% domestic quarterly to export despite LPG day. U.S. set marketing March, X.X This within same and barrels of all-time exports in propane represents of year, time

to demand satisfy strong LPG markets. to demand growth order Mediterranean balance Range XXXX, European ongoing in the ahead of exports the expects for and continued in in Looking U.S.

NGL capacity our This barrel NGL price prices becomes price. key natural range our XXXX. in well with equivalent, continues the that per equated of of recover optionality per with support Belvieu ongoing evident flow the pricing per index. in drove differentiator Liquids was realizations which to challenged more per $X.XX for start to PDH Henry of new the $X when natural guidance $X.XX average Mont gas per cash XXXX been have gas barrel barrel Belvieu China of strength The NGL agreements premium to barrel. the in As NGL price the premium to and Hub and NGL $X.XX diverse Mont natural to zero-COVID Mcf discount quarter, producers. an relative demand to absolute $XX.XX our like to as are versus $X a outlook they to due premium free gas policies. Range's And other the loosening marketing addition resilient is

natural natural of strong LNG on continue QX, full And a initiatives Starting our next natural back safety service field calls. $X.XX basis from hedging. closing NYMEX, safety our a towards on we early prior emissions last and of performance. to QX's at season lastly, as improvements in signals out while performance levels below through culture in and we level, we as returning gas, rig winter. normalize result further on look environmental capturing and as an look the discussed Range reduction our differential our For Mcf. including display price reported team's to With was see year in and both reductions $X.XX of low help work activity should storage injection realized gas Freeport gas per already

We slated to for sustainability accomplishments look release these more forward on upcoming summer. sharing report this corporate our in details

summary, industry. be an to our time part and off is of a and is to solid this start this program year's exciting In a Range

and capital to I being in all today's leading optionality producers. believe is challenging environment. intensity, resilience the Range's amongst of together lowest one gas our range, hedge low provide Our break-evens liquids price come natural the business of demonstrated program

delivering forward consistently to As competitive and we're free generating generating on I together future we dedication operations shareholders. objectives calls safe, still to to to returns cash demonstrate efficient as our look our stated and flow. continue

financials. the turn it now Mark over discuss to to I'll

Mark Scucchi

Thanks, Dennis.

financially, The the described are approximately $XXX funding shares totaled solid dividend returns. a $XXX from million, the They of flow with well $XXX competitive a cash allocation was operationally strategy. successful operations business. Cash as Two are quarter are execution first and debt our consistently as reduction million. across sheet mutually helping net of quarter capital first expenditures Capital XXX,XXX These drive and exclusive. million, of balance our repurchased. value durable not reinvestment. parts overall of shareholder flow integral objectives waterfall roughly We've

a highest debt and note reduction flexibility models of infrastructure to entails [ towards margins; order capital fourth, our utilize stable is flow Range's billion quarter leverage maximize And margins of prices on reduction to of growth of to target the throughout when on reduced net by allocate debt of support proximity absolute as in debt. shareholders; us end, generating The $X.X First, costs, to believe It's value shape billion and to range $X.X EBITDAX base to continue company close for resilient, even reduction CapEx important targets, achieved full focused several maintenance based X.Xx billion current that this net to peaked With to places debt are second, great to years. cash allocation. overall commodity nearly it have CapEx and at appropriate. business $X to debt capital we since to cycles. target ]; financial in waterfall risk-adjusted company third, close cycle With the returns-driven on its in XXXX. Debt shareholders. return debt leading date returns that entering We've and debt free creation cash our we been reduced

results. from with pricing of Henry by This for flow driven operations is $X.XX $X.XX Taking Cash pre-hedge realized look prices driven levels, from by achieving Range's the first strong NYMEX of liquids diverse natural above was production at million Mcfe. outlets and price combined planned uplift sales a gas closer per condensate. unit natural gas, realized Hub, quarter $XXX

realized costs basis. quarter, diversified $X.XX to premium barrel price customer the $XX received as portfolio contracts, transportation supported been of was first Range's per or Mcfe of price remains During total an and the on differentials such range The capacity per Range's the NGL which unit approximately are by NGL Henry declined savings. at and a of margins remained Hub focus for Natural higher savings benefit Gas. unit that $X.XX by prices. workover first compared $XX the compared Hedged Mcfe $X.XX. unit in on year improved variations to Total These QX team per change cash inflation on to cash year. efficiency. slightly production strong would thoughtful and $X.XX timing equating With versus margins cost from continued hedging Range's labor typically prior relates and costs, workover Cash to reduced in balances debt projects. allowed more to mild planned as in pull cost year, items to by activity some expense primarily the to per quarter quarter other QX line the last improvements LOE than weather the offset have completed into processing linked interest the QX. to million prior related or

Range's in NYMEX prices with for gains. first the $XX quarter hedging supported realized program realized hedging million rightsized

free XX% debt gas free Cash balance is support for and flow retirement. end, the quarter support the of and forward, efficiently a industry backdrop natural provide Looking confidence approximately execute for undrawn with Range's capital cash forward, on at providing return efficient positive calls. Range's to profile. discussed Successful Range $XXX program business to previous future an at balances our results, combined operate hedged further XXXX, with flow facility, going million of cash revolving in combined first ample our credit $X.XX of liquidity quarter

alongside our share We this believe of stable, our primary totaling market, reliable debt appropriate dividend while time in fixed $X.X capacity reaching opportunistic this a with remaining available target and cash billion, in repurchases and at objective levels. is

gas business trend Appalachia, hard in creation bearing value Range's to adapt we to business. market dedicated domestically demand and internationally and swift portfolio as the and from Range's shareholders. for work, back value business the This liquids. of company continue impending plan and prudent in and or will best and to disciplined is seek foundation but through innovation, Range's natural strong natural demonstrating has our for a this a precise focus flexible into long inventory objectives adjustments portfolio in and remain reality story our will without core With quality reinvestment. shape history the our translated financial focus largest about Jeff, gas We growth and been project continue for returns, dedication you. time conditions, and of of to primed teamwork, for

Jeffrey Ventura

take be to we'll Operator, questions. happy

Operator

come [Operator Instructions] Stephens.com. of Michael from And our first question Scialla will

is line Your open.

Michael Scialla

and a about first many Not can claims my career. deserve great to hand Jeff your a Marcellus ask too huge on on... you folks discovery One Congrats. offer and to so, taking I big on make congratulations want a will like congrats Dennis, And promotion

Jeffrey Ventura

that and appreciated. of comments, you Thanks say to Kind for much the

Michael Scialla

I on to the decision cash. Absolutely. wanted of use you ask Mark, about talked sheet. for to put balance priorities on cash the the the the

on those. $XXX you shares, prices around there collapsed You this buy did you some last flexibility worth of said just Maybe lot gas thoughts year. winter. obviously, a had But there's your -- million back

for cash commentary the put the on to any the now? balance Just decision on sheet

Alan Farquharson

last Sure. bought Michael, year, the succession and We're retirement your know. the risk description a season, and always in you've $XXX I obviously, than environment. the couple million. play shares choppy returns, commodity and you're blackout got just a back period first But more allocation, we price planning, around inception, also simplistic in This there's use. we you since Jeff's waterfall think evaluating factors million quarter, in typical earnings the you year, XX announcement capital had of that of preparation the there, as

priorities year holding optionality the as were the So as the cash few first tremendous months well and and we through just opportunities we work comfortable of creates. the had, that evaluate as the we that

as proximity targets. we at our forward, So to debt we're sit here close looking

couple a the in balance sheet. We hundred cash have of on million

debt net target levels. have approaching our We

unfolding. we So flexibility we see like year that this having as

Mark Scucchi

pretty summer. you your about are see little levels? a asked bit normal the see that drives thoughts storage how macro, you normal good if that, What -- see more to you on, the the how And gas to priorities storage does moving that. I every that quarter you've into detail I mentioned macro cash? do this back Dennis out? for I guys on you your tie views, offer on want playing on been know again, And move good. Very could on guess, to back

Dennis Degner

and we I to think of some term about Michael, thoughts back and Yes, in from side, numbers clearly, we it's that kind the macro, some started a more that to activity years I posturing I into and both the of of our starting follow, shifted as are, to of gas the mean, see -- months. starting to what seeing kind see you're step seeing more rig take think the think the few on supply translate for you're actually near last balance it over start the reduce.

a If at efficient year -- you been a now our the system as Range, as keeping Appalachia, many at cost and placed have level maintenance look of us well the program. we've of gathering on -- as operations an possible. we're and keeping really we're structure a high of and third especially utilization example, under Where level as

being see maybe more Appalachia and we of starting translate toss start market couple into oversupplied along We of what into to and production in rig an maintenance as this more us all at around then other of kind back. reductions to profiles producers, translating less You degradation well look potentially. performance activity that's with you're year-over-year really seeing

days supply. comes the down to of could at And argument part looking You of that make data. the through

X.X outlook, the it look it's to whether Tcf. maybe this upon depending you or X getting If season, end your of at injection

before years, laid days in infrastructure supply LNG a online days you many going get been I XX of winter. past of to XX coming at And online coupled several average with be coming just is of with the the mention you the XX additional comparison, were we to If in the start place to up Freeport to couple to the capacity, demand backed side, full we that's the that's both start the entered end for now October industrial X-year and to at season. days of that injection XXXX, XXXX over on points of being with not just out,

clearly today environment price October. commodity than in different much was a it So

not its into unique it's alone. storage So you demand indicate can And from Train and injection which season midyear oversupplied role what as just LNG there's is is as reason Clearly, believe then market we could the kind side, you sets into X would the to Pass significant think own quite XXXX, light. story. look Golden make play as argument, maybe positive XXXX, number online on of start we in level a a -- for as also come roll pretty that everything to up a the

for the of and plays our at from well So that the think And program. through the make portfolio, stay our course out here. when can level transportation resilient maintenance us, we'll what basin us you we we get look cycles

Operator

America. Doug And from question our Bank next will come of Leggate of

Douglas Leggate

my me congratulations. add let Jeff,

making You've for pretty a feel long been around very old. of some us time

So I stage you of next endeavors. enjoy the your hope

as guess quite one So net for is the at from guys, around market minus the least value a enterprise I first I the couple stock got equity capitalization of moves debt. my value questions. left Mark, therefore, a and bit, obviously, Mark. what's see we

you see two when recognize you forward XX% which can ago, market things do. there's failing curve, above the So is a year a to

You can reduce to or debt of force value. back recognition buy you net market can shares

oil the number go why commodity environment, seen right is that? why billion to your a debt $X.X not? than billion is, You've some to not volatile X. question of in $X my Why net So tighter peers go

Mark Scucchi

question, fair Doug. a That's

in what So understand most space, the ratio. Fundamentally, seasonally. laid everyone easiest the debt years, our really debt we cyclically with as and to began that important, EBITDA is out of believe couple or fluctuations absolute number is what's that naturally price we've metric the we over either fluctuations last given the commodity and occur conversational debt targets for debt-to-EBITDAX

a than the better price levels, Xx be through the ratio it's not strong some thinking might last. indicative out and targets out, be think we Xx of than were were we and cycle. better commodity to X.Xx market, believe year out investors said a with fast. Those and actually, starting hard want We that you to and leverage. prudent are set proxy laid before on you levels a Those depth leverage around in we a So a cycle, we from at want at mid-cycle,

you test get levels. against level billion of to $X you levels prices, both and a those our gas, natural at pressure NGLs, billion production commodity $X.X current When oil for variety can a to

So by the that's that down. creates appropriately genesis use They the strong design also those shares, That's to we of not sheet that back off say think of pay opportunistic, whether That's and buying that's solid have cash opportunistically. and indications a and framework balance strong the to levels. indicative can't that that's whether balance are financial sheet we putting be environments arise, foundation. a balance opportunities sheet when what on to debt paying

Again, this those standpoint intended the sure huge capitalize just inventory to make are over monetize a wherewithal has from range the So to we have financial guidelines and that haul. long

Douglas Leggate

may, want take little two-part that offer, my will guess want on I My offline. And decision the obviously, that use but this a a into a I one. also X% for if I if I'll to I to I may. I Dennis, but question, Fair. me if continue as money. wonder we forgive it lead influences congratulations to bit, to is it follow-up, press

currently the about area. that your Dennis, is release to promotion sole comment what an the announcing your press operational talked had for company's CEO, interesting

I want we target range part is, to don't Do change announcement guess leadership, in speculation role. retirement been Jeff I that and that we expect guess into of have strategic like just something happens, -- when move any a for it's my And that you B but one. Do the I is say with change the of you -- run-up the of interesting could should of the a strategy? of So the the question see change my M&A. retirement

that should So in in it been that guess there any there. months, my last to for leave other several time follow-up consideration guess, any the I'll or have led be I were that explored have is, strategic range might that I a could there speculation. has alternatives

Dennis Degner

Thanks your and of the Doug. morning, strategy the then with up and question. of Yes. piece, step comments for a this with I'll questions the kind and end take really back start I'll change second

whether three this best it continues heard -- but away it calls, probably you the all the on prior from company it's us think progress. of multi When us from Range facets is in and ever you in continuous financial, been I to the look the operational, heard on, morning we position organization. safety, history it's really environmental, chip the at multiple that report of across the you've

And after X,XXX the a today. even being our of position, drilling in the fastest continuing so to drilled best really and through We've the our basin, and from great laterals, our that of which resilient our cycles. see wells We're incremental make wells generating got wells progress, position company we durable the some that kind highest return being the in team business. longest we're is horizontal in still

I today. is their at to of well tremendous. level we drilled dollar value of the And discovery some on RINs you on the us in team mid-XXXXs, it with with early wells still commitment those that members are difficult many the think look when because that is put a there's

go So that and really drill generating to and really through that develop ultimately, our inventory. and returns competitive your block lot Doug, we to our best It's we free going prepared think considerations, ways, about and not participate you're flow look shareholders continuing going as the out a burning to and be change the staying we aspects see clean to assets, of stand you're you and year lot ready that and wells And far follow-up the program. asset when And course, the world our really base question we're any cycles. of as see in our strong a energy quality cash I the the of other generate We the Range. needs alone. in is supply. it talented in with that tackle continuing Again, our from in to have we're to at, for at year

to, continue our reserves just of poised on chip improving again, Now incrementally well other best, to efficiencies positive XXth and we year aspects our away of our what revision. performance at a to We stand do continue business.

So no from our considerations other end.

Operator

question Truist. Bertrand And comes next Donnes our from of

Bertrand Donnes

everything congratulations, years, and Dennis. over the for Jeff, Thanks

for piggybacking the it does to Just debt gas the balance in levels be are it. of current seems on spending the buybacks by what to kind you accompanied Doug's the strong focus. the to? buybacks cash program know all return into ability question. pricing and change accelerate if your I dividends? when of Is a expect production reduction we you'll asks almost like a Or that should that go have environment, future, that But shareholder market ramped flows and would

Mark Scucchi

Yes, fair question. that's a

I think -- things. two

to level. forward overall our the are going there, last flow target our me be towards or progress in year. what debt they value of depending different done just as frankly, activity on well in elements cash are and tandem our are market can Let we percentages What and where executed price as, be is. weightings our point The they're the levels expectations stock in allocation different capital of what may

to and can a cash in flow as to a think be, quarter. us you've seen about share quarter program allocate So we debt allocate on reduction, you've what the seen majority us the of repurchases XX%

is, So you balancing move balance backwards again, and sheet that are. where cash the stock where price the expectations forwards, see can is, where flow

think all question a a deliverability to and call growth Range's natural on when on it Is target that. is not when, we of the if. there the debt our the our simply list to call you're your gas? Is that for demand have down Do appropriate. we assumption under there end is debt a comes about the levels fundamental solid X level, gas. of within customers, gas? feel So Then Number your for which

capacity. Gulf have the Half our down to goes We gas Coast.

and into So our is Midwest outside Over the are third because and of Northeast. the balance delivered domestically basin. effectively the NGLs XX% further internationally. of revenue, that

either goes and grow So of new in-basin our existing existing have got ability because expansion that depth online. or in the to the demand will of inventory, through we or through underutilized of we've great that facilities exposure come capacity growth

adapt simply the our incremental ways back to and that on that shares call growth. to many capital there's the of we'll So buying Range a win of allocation, line economics great for and

Bertrand Donnes

dry then on estimates, maybe gas on that color. the are liquids-rich your dry of call gas, on the there back internal would kind any there. accelerate temporary where even but strength and a are pricing your until switch estimates. maybe gas any NGL the plans great the there think to That's capital activity to maybe side, areas to to switch levels allocation guys just focus thoughts -- Street I then when there's versus kind And area? you of And outperformed maybe be Is in

Dennis Degner

Yes. the Thanks for question.

it's Ridge. say, very look schedule throughout efficiency say, going Super you the consistent it is, something basis, the common in the the just I think percentage else Both that. program our in side. I neighborhood of, that's the year at market. XX% optimize our of in in and with for gas with us when the XX% we'll what to on XX% activity in a whether think kind program pretty of XX% to We being on for some wet find on you'll remaining, year's to an it's the year the portion somewhere is could in year, we'll and of leave the operational be out, driver, program assets focus And our the optionality us to, say, dry type always this liquid

ties and in Our into our move minus which with year existing ability out really or production, about to to to of that our XX% do back year activity. usually ability pads represents back annual plus

be us the and fairly nimble, it pretty year. again, given program put forward So in quickly best to each allows react

wrong we However, all the the is pricing of where if steering And the you that to past at could right just XX is, tend to commodity or you look overcorrect those has car XX I see don't much. over quickly from radical standpoint, you be a where more have making tell what as just you by to would gone months can more adjustments.

very will. maintenance again, a to full as unique in math at we problem, if which look under problem, as verbal utilized a type provides variable for another this possible you and system high keep gathering scenario, So a multimath level, the much

flexibility. So do we some allow

more the of the of from winter half half NGL 'XX. heavily standpoint year being an with the course, And in we for that curve we're If plays plays weighted side, into also production you this uptick front-end lastly, pricing and which loaded profile of of already on the the NGL second at you look the activity we think that think well. look the and reported on the at our the really program when first really, year. the then, We the well quarter. year, being back that in with commodity

Operator

question next & Jacob our of Company. will And from Roberts TPH come

Jacob Roberts

-- this and on topic. remaining with a all? billion number keep out is $X.X been there there start on clock internally the has discussion ideal to any at pace But through repurchases, just of that the sorry ticking the to showing about harping Just on

Mark Scucchi

priorities. I question opportunistic be it. is guess balance the on answer is pace the short no to no. and There the We'll

given So intentionally fast and not we a hard approach. out have formulaic

in We returns and have to conditions and our balance priorities market cash flows.

and So the intentional building flexibility that's the optionality the program.

Jacob Roberts

speak maybe NGL then I this things. and up impacts the you you any could longer of shaping was laid thinking the beyond. should during hoping quarter ethane And that be year? enough. how Mont just that you to potential we to about Fair the the saw And how Dennis, term, I'm range XXXX see side premium wondering over macro on Belvieu, just in and -- out dynamic

Dennis Degner

I'm thoughts pitch going some that raised. I'm to going to you've well him then let and provide question this Thanks Alan off for start as the to to Jacob. over question, on

comments on the say I the throughout quarter or our depending see cadence. expect expect let's out, that again, we that lines, activity large, just NGLs, think to this look and and a And back on of still upon consistent by quarter made would when level we're production flat fluctuations level long-term we're the color to the at some some high goes I where, let outlook. DIF that additional I'll him some production. a other ethane and Alan again, utilization system the from at can relatively a and year. perspective, you punt we you to profile earlier, and in lot and keeping profile to and of and maintaining provide of this year, on balance that the an turn-in But be production But the report point under for just in the NGL basically at program flat of gas a over production maintenance-level

Alan Engberg

is that talking quarter. about we overall our the first got premium little I NGL this Jacob, liquids just manage Alan business. I'll bit a maybe premium during the actually Engberg. start

guys against As gas already, start have really it's liquids level, hedge natural said been at for more a a general, gas. good the think it's crude And the net weak business in NGLs Range. year a the really track I of high -- than prices. is

does much Now crude. with rest lot the track in of particular, by more closely particular, track markets NGL international crude. influenced it's ethane, the which also but with the And then gas, more barrels, a tracks in

So when NGLs, widens crude spread between outperform. natural NGLs is the gas tend and weak, to gas and

we Range weak weather we see winter did and lot of a our system, particular, in have For flexibility demand. in

really to the export us. flexed actually export strongly we So performed for the markets And markets.

first Belvieu $X the year-on-year. for $X.XX just If export to Those Mont averaged XX% quarter which market at up values about the reported index dock per around the gallon, you was at index. to look relative

highest So the gas as and spread as overall, dynamics, from well market ability flex between markets. our our crude to premium benefited value the to the

does And than seasonal, summer somewhat winter months. get. is us what typically, provide more the it opportunities Now we the

$X still maintaining guidance plus we're our premium. minus for that at or So

chemical has as to kind price, ethane. on ethane that side. that But said, off particular, of demand the It's reduced pull the divided days does by also, a result of total The bit interesting. Now actually price ethane has supply, fundamentals, still are in there's really is in All quarter. the somewhat. quite natural been, lower though, total lows. ethane especially from going and let's come X-year demand so the weak at it's of say, represented value Which inventories, fourth which chain destocking on the stocks gas

So in the fact, year stocks and in of we the in And of disposition of XXXX this to a for market snuck. are terms showing couple get look range was unless don't EIA's is rest look of short-term year. of on And fact, just right at relatively released next than days of you ethane back where ago, you weeks that disposition. remaining lower bottom is X-year the NGL the any now days

internationally ethane back July, to during chemical demand and the new XXX,XXX can us We well still add barrels that barrels the as about quarter. that see ethane domestically could as another operating come last rates of improving There's first plus already day demand levels, XXX,XXX industry in another day. domestically get demand per there's back per

of the Canada or value And the fundamentals, MarkWest the it's strong coming are continue values and real relative of moving ethane barrel for strong of underlying see, we first moving given it that online our extract for or ethane could moving is main about rest prices our confident the rest at mover of again, demand to having this actually the We Belvieu double lot through position, to going So to NGL ability year and Houston facility into hub we Range, Mont feel industry, year. to the in ethane whether international of to think production the gas. markets. the a improve in to gas relative that to through rest because

Operator

Our next question Subhasish will come Chandra from Company. of Benchmark

Subhasish Chandra

the here all career. long questions. Couple on for and a Jeff, line words storied item [indiscernible] said And of

kind cost, First, your huge if number, any of particular cost, issue a kind I water that to think, costs, is part in if guess a I was on specific XX-Q a but any acreage. the temporary abandonment not of is just that structural cited the wondering which issue hauling lifting and of or

Dennis Degner

a ahead and perspective, fluctuations hauling had Yes. that are these. from cost seen we perspective. From Subhasish. some go short a nature tackle in kind water I'll term of

call just see imagine, you a the at this demand can fuel track guidance and As needle operations coupled movers, with expense just our that times hauling normalize as the we're start operating say, of at $X.XX quarterly winter we you throughout of up still our We past for, year, of some expect, water program provided that for all goes if though, can those and We beginning would to cost. on being will, cost. $X.XX. let's year, for lease to the

all a it's own any assess because QX. pull cost that's forward has workovers is a into an From perspective, unique workover one projects I did exposure. think, is or its really intact. quarter, So of unique operation still whether that We several tough to given each abandonment

As some conditions the when you winter can and projects became weather middle proactive the quarter, those imagine, into some with the projects very try in mild the forward. is those that a the pull in team nicer. to the of the little first of of year Northeast, part But bit push had we we

So see the year production stabilization. some further throughout with we benefit could

expect would cadence, we turn-in see variance, like to see, we for about lines quarter. the guidance everything still past quarter-over-quarter when but we or we is that talk So see just operational on provided expect some -- other this to track

Subhasish Chandra

before And MVP. it. on seems to then on a question And pipeline get it's that than It ever chatted operational. like we've warmer

large benefits. be you of rerouted do would a just Or portion indirect an gas you Just the think curious would expect whether you opinion have in signed think you -- it see I gas. basin? fresh you've do Bcf day of X to But some

Dennis Degner

directed customers MVP. and you commissioned, think where the see you pull type can production the off that's approach. that other see be up end you shifted going really on then piece And look a infrastructure to of going effort service probably -- capacity of can you utilization of make think particular into then were pipes. to particular there's good infrastructure, open In and if this more that environment, question. clearly more fill argument with And of that projects you there can of to ramp I the can get on historically were that magnitude of redistribution are start I some a that production the toward a other for see to of was that Well, greenfield demand be other brought

I be of could balance think see it those would we two. it -- a would be potentially

Operator

next Citi. our Paul of from question come Diamond will And

Paul Diamond

Congratulations, having on deserved, next efforts. Well good echo commentary would the Jeff. here. luck I enough and

Jeffrey Ventura

much. I Well, thank you appreciate very it.

Paul Diamond

But a bit. little back circling just

HX to you're the -- narrative about or touch you we've if first wondering a the if talked and on and detail you a starting is a XXXX. more I far guys inflationary likely give over bit looking bit seen past years that was see You more some towards probably cracks more there might a bit a think -- just of go particular as there. could as color anything in

Dennis Degner

Dennis. Paul, this is

it's today think that start hard some of to you -- I where to surface. as predict will

are some pricing point. rig balance different that to or you may the has to availability we'll call can't maybe throughout frac at or We starting you're see one-off to signs that starting crews those to schedule see moved need executions it, your this address like in of, I openings year. the that spot for of that pad say much one-off really all

fleets very high equipment, the what frac electric rigs specialty also I high-spec -- high level a a of at are the of still call we utilization. clearly those think seeing, drilling and very are very You where your utilization

signs one-off starting are consumable tubular of with signs an showing example. see like to frac products goods relief of sand You along as

we really year we back into our itself that Whatever when and to unique going you and base some direct of whatever at materializes, translate be $X.XX could look again to our into this you that mean, decline But is toward efficiency 'XX, think capital in kind is increases seen year, in if there we of year. again, So with I'll mid-$X.XX -- low year, dollars the still Mcf And Last at that follow, were and our to just incremental our I 'XX the per component. we've even with we're clearly, range. that this from cost overall that -- savings end one-off the the savings -- or years XXXX. then see uptick for of we'll this of more show through the relief the comes out the balance inflation the balance of structure.

you So still compared to we our a other fraction if peers would in basins, see of will. what

organic Diamond" a the do of whether lines? talked this How forward? plays or at the commercial in growth, a the And in-basin and or the demand end opportunity through quick for along term. be still see id="XXXXXXXXXX" you basin, going know that at the I about follow-up. we're residential least going to just anything concern near we or constraints that however do out, takeaway day. p we've in for more those type="A" guys in name="Paul /> Understood. about do think How growth guys one the peer-leading think position So lot you about industrial

Dennis Degner

Yes.

see I no start think capital over Appalachia. doubt some you part M&A in their when that's for you I have away that assets at of one, last that allocation change start to those years, if -- few couple been activity the the activity options. toward look producers some you -- of of think occurred start to a And to a in have from some to transaction direct potentially seen we regards the also a of

on also in those performance which other seen year-over-year, Those are certainly making. degradation around peers challenges seen they're capital that allocation some You've things our well choices haven't that end. probably we

position the so in kind that, is really on utilize And first be underutilized goes of future. the that that infrastructure puts to us in to fairway the the

us that our runway think we inventory. well with long of poises So

the the the -- is in demand around one of Shell conversations in-basin cracker that when only you're And sources basin more examples direction. not seeing macro add the to where for inventory fundamentals future. to but case. the like know the prime conversation also the point in those that of in just There are between identified probably got somewhere Appalachia in And -- have place. fuel on now, But could growth event of future. we feel a it's and ability some And been call projects those been a down the way day of conversation plus XXX,XXX gas B loan we facility. road that if, excess That that in you again, maintenance taking Range a in question a participate growth. a identified in in not that the the gets of you're It's an is we've runway the X/X it's when. gas almost to that have ethane takes not barrels the of neighborhood

like long that You've and got to runway participate Range company combined express being cycle in that in. in have a supply inventory of area, given facilities that the could continued interest

that the in-basin solution, pipes more be has being opportunity there's to see there's going part but than we the So just demand to of further a that materialize.

So certainly, down opportunities sure the road growth. for for

Operator

Scott will Hanold And next come Markets. RBC question Capital our of from

Scott Hanold

But Or think my a some kind of gas first level a market conversation of you is there makes that bit just the high Can about us you maintenance little know any a the there maintaining of there. folks is for for activity. gas are kind back when off where I loose, Maybe give is for further layer efficiency the And to calling right question like now, need to producers to to sense reduce that, there sense on it lot its Range market. an just maintenance? benefit is plan? overriding it to point on

Dennis Degner

we'll midyear have that again. one Scott, we Yes. with is crew. we laid I and Dennis program the out comfortable frac this down to drilling maintenance by to very time We're again, mean, the rig one get the be point,

we what do for to the our started comfortable were low-end last capital position very very system. course. a us. focused to for going years perspective, high-end us to even and fluctuation continue And say we our stayed allows we And when objectives. cost said we on the the check we balance commodity to would It's through gathering remain Instead, I sheet of couple balance a right the grow. from of see structure what the prices, in didn't of is we did and this program. efficient So and utilization all boxes operationally it lower

we stayed never the from So we and -- grew our perspective, we're course.

the level we fundamentals And this so should Again, do we'll until stay suggest at otherwise.

Scott Hanold

more So tail than your weakness? curtail any consideration particular production from there periods rather to be would of during change drilling extreme

Dennis Degner

we basis the say within here we I evaluate organization. It's Yes, good on question. an will as-needed something --

more you if did at We we it. think willing really, will, gas day, with we Alan, had and that do commodity the look price you've than commensurate type of back a prices last and liquids our component our overall of and just who much of NYMEX because we when touch quarter for the look more if similar demonstrate the this time versus gas had generates at not to exposure our we exposed in you can a minus code. production plus were us that on shut because the it's in complex shut Mark a to problem, I at see cost natural gas, quarter end us, that for Jeff the peers NYMEX or that in it incremental of heard benefit myself of wholly environment. you liquids on the associated some basically in math our be But out, today, realized ZIP type reductions

So on we back $X touched the just Henry $X.XX. but to Hub a comparison in were quarter, -- we basis, past I this as of example, remarks, know in an prepared excess over in

Alan's So infrastructure. on we makes us, for sense NGL that significant utilizing of part that for a cash generate. That flow maintenance us, again, in the really overall that a plays existing lot exposure touched

NGLs much produce as cash can flow But XX% to Our from mean about as profile. XX%. a overall generally XX% production it our perspective, of

weight We are, upon a of all, of. commodity are and as in study on returns. it's lot based regular something So basis meaningful for NGLs where cognizant but prices us, carry all we that needed a

Operator

nearing are we And today's conference. the end of

final to moment. We of Sachs question. Umang Choudhary will for our go Goldman One

Umang Choudhary

question Jeff, around deflation. thank promotion. good your retirement for you your the contribution and luck Dennis, leadership and on My congratulations was first so on much and

more year this think you capital impact seeing some potentially Can year? about do any to and it? of talked the spending deflation. You you is signs details around What next give

Dennis Degner

loaded trying see a the the what program for for program. a And heading. would secondly, rig still couple that is means is I for year. reasons. truly to reductions I of the minimal this where to materialize. our very impact think point you're Yes. year's really to having And friendly And One, market

the one frac environment. deeper does the the you crew type take year, so down rig, it to And one us get into

reduced So that of by to at half your that, phenomenon year by the second remaining point. time quarters in been the get nature you the of has the

providers. XXXX. program an that long-running align We opportunity that efficient So and want and being we we are many companies they've service and communicated commitments see more made partners of materially, a with history everyone's around. execute And that those for know with we'll to a service this relationship have our

be will later through more results that seen XXXX we the So will this be process than year. think

Umang Choudhary

you for way, you evolve, that then guess more back exposure? to signal will how add like grow That's more helpful. to on it. or growth. you Got like I response on another any think to on would in a cash options place there marketing would if anything about like grow your And to going demand get on basin. and which to basis would local Put gas is where where market end like portfolio you see

Dennis Degner

Well, good question.

-- a much half take we one, this think step I'll I Umang. back a on

Mark same Gulf. the in participate touched market. portfolio I we've We overall of NGLs an on gas XX% on it that had XX% of it as a to few LNG the gets approach basin gets that example moments or the think already ago, gas we our would take of the but our current portfolio. out of of

to imagine, the of as develop and to compete But get to as example, gas most future take, or basin. you having Gulf see that there in gas regardless in time continue to we put would We also being that's more in-basin think has versus to right returns with the NGL that further end infrastructure the to do for that what place. our look it would ability the opportunities an transported I side it's So market. side, competitive whether gives going

we'll We've talented got So options. team. our really a evaluate marketing of all

example, the indices producer structures. put to to waterborne on tying look of a I structures some being organization, for and as first think through we've the history if creative an over ethane the you foreign export of those demonstrated

into of today. that the has about some returns of we that All translated talked

We'll remain evaluate they to will options of have we amongst to our options, team continue current in the have what all the our So but compete what and is portfolio. we diligent. have

Operator

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

Jeffrey Ventura

participating And if kind any up our with and thanks path forward. you follow comments for the questions, on to have everybody for call Thank I please want all on today, Dennis our and just the I thank you. team. for

Operator

today's participation Thank your you for in conference.

You disconnect. may now

Range Resources (RRC) 25 Apr 232023 Q1 Earnings call transcript