Range Resources (RRC) 23 Oct 242024 Q3 Earnings call transcript

Company Profile

Participants

Laith Sando	executive
Dennis Degner	executive
Mark Scucchi	executive
Scott Hanold	analyst
Neil Mehta	analyst
Douglas George Blyth Leggate	analyst
Jacob Roberts	analyst
Kevin MacCurdy	analyst
Roger Read	analyst
Bertrand Donnes	analyst
Michael Scialla	analyst
Alan Engberg	executive
Leo Mariani	analyst
Paul Diamond	analyst

Call transcript

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Operator

Hello. Welcome to the Range Resources Third Quarter 2024 Earnings Conference Call. Statements made during this conference call that are not historical facts are forward-looking statements. Such statements are subject to risks and uncertainties, which could cause actual results to differ materially from those in the forward-looking statements. [Operator Instructions] [Audio Gap]

at Relations Investor President, Range Resources. Vice ahead, go sir. Please

Laith Sando

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

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

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

Dennis Degner

results shallow team. large core our capital completion Range's and drilling to of for year, and and a third low reflect the this story Laith, the performance is decline, joining Range key intensity profitability advancement third part objectives of the quarter Range's asset been Consistent resilience long-term today. thanks blocky our world-class development our through-cycle results experiencing has Thanks, the reflect call of the costs, all repeatable of of you operating areas and improvements, the drilling, through and shareholders talented free business continued Range's execution the ongoing such production class-leading quarter flow, is and cycles that our safely, believe prudent our and base. I of key result cash these completion flow free of to and like capital today. in of generating of and inventory allocation cash as returns driving we're component a balancing base

on the business of Another key our Range's production resilience and of was is full the third component diversity quarter. display stream value Range's of in liquids the

highest to in above into history Our over propane the at NGL premium and market drove Belvieu barrel ability butane company index. per ethane, market the Mont the international $X

operations, production a quarter, at producers. over our price gas hedge per premium differentiator thoughtful When unhedged natural Looking rightsized with natural Henry another $X.XX intensity is clear the which Mcfe cash and liquids Hub challenging despite makeup, an the is purely entire aggregate you free $X.XX for realization versus a Range along saw output combine the revenue dry capital efficient uplift, of gas and low of prices. program, gas positive flow quarter a

Range compression our crew infrastructure During is strong per quarter in production of the mentioned an frac invested year XX the annual X of with call. Range expect day, a production and electric crew. production can gathering higher we rigs the on third near quarter, came and X.X similar production level, $XXX full track us placing XXXX Bcf with communicated. we've Range's completion guidance quarter and will million, fourth at capital be running equivalent third in of and X resulting well last maintain that approximately above day. of our day is X was cubic performance continued per and feet Bcfe and guidance per X.XX midpoint result million This level previous just optimization of during this roughly

providers. is decades reflecting both innovation to its Range of production X.X crew. flat X This is with a think testament and the can true the nearly quality our Marcellus of base X and hold completion message of collaboration Bcfe Range in of the I and team, day per the between this repeating. asset worth service quality net

months. our we and baseline capital fine-tuning is next plans on from which will are a production still expect few plans running XXXX, we we reasonable crew be for that continuous over While our the finalizing completions

as becomes demand periods the As than at Appalachia there to gas increases future which X counter operational tailwind required in and capacity years will natural call would the be ahead. future, X additional When modest maintaining for range in crew slightly the for available consider takeaway and investment of is growth. in has fundamental for plus. This efficient production, very running the Range in-basin is more as we a generate case production last activity been for able maintenance a wedge level this cyclical years, provides

and growing demand in LPG a These levels new maximum price premiums Turning to improved near third marketing throughput the to the combined of robust index. leading access ships Panama export NGLs. focusing waterborne Canal remained U.S. on capacity Mont to drive global and quarter, pricing Simultaneously, fleet rates. NGLs factors relative to to improving and Belvieu International for utilization. freight export

As of in to transportation and contracts access reliable prior sales Range's provided portfolio markets. premium these quarters,

to ahead expected to are NGL many international Looking to for XXXX, in these remain products continues dynamics of place demand grow. as

the capacity not the couple and proof business until and ahead. gas the the many XXXX a price NGLs cycles. Like for generating believe today, years demand of years materially export Range's of second through XXXX. that last provides half listeners of has and capable are see natural we Range's returns This positive flow setup increasing into for and constructive substantially free While U.S. the I cash in increased margins. Coast of go-forward Gulf realizations

now Mark we cost given inventory through and investment discuss run, is over to cost unique the in Range's provide beyond, runway. I'll that's lowest long-term or profitability believe of multi-decade long to positioned year the investors North when well upon. one structure the cycle growth ahead full for it the years a financials. producers Range Whether believe cycle the turn in we ahead thoughtful competitive in for called America, in our As opportunity

Mark Scucchi

of in to take examine a behind quarters basis may the XXXX relative it's for the this and a X business With Dennis. on state to we've time absolute Thanks, of sensible of and accomplished the imply what future. what our us, stock

$XX while much this executing NYMEX invested plan debt to while and capital proving water dividends, and stands to in XXXX, inventory by generated capital operational possible capital maintenance to industry. $XXX our for program also below price $XX business. There value, and the long-term averaged well that free enhance allocation that quarters resilience allocation free business to is the production profile. Range balance sheet resulting both XXXX, Range capital price cash gas of reinforcing in our in options while $X.XX. an contrast free the a of modest achieve natural maintenance in slightly future quarters rate million solid is margin Despite above spending building has Range's investing in that first including even commodity Range leading land comprehensive decisions stark contract reinvestment flow resilience that and X aspects through to in successful cash cash flow our million provide products, in capital at commodity to of was results, at pursue financial cycles resilience a plus structures well strategically reinvestment and low those capital cash infrastructure first other free efficiency prices peer million, strong share and the transport made of net X operations. Range the words, across of allows reduced flow the For paid investing invests view repurchases targeted the and through number rate, returns to while XX%. healthy reinforces and unique of cash In diversification with that of XXXX our position. Range's end we investment. be are us our generated these flow strategy allow throughout level, commodity low prices. shareholders, story investing markets, a That us the year-to-date, customers,

congestion XX% the driven by and flow advantage of Mont by pre-hedge we is of accounted largely premium well Marcus our liquids, is the points resilient domestic Range's has takeaway versus benefited of Hook XXXX, pricing, access, premium an driven propane is to basis. That Roughly realizations in peer-leading required supported dock to avoid allowing production. achieved per on the of Our vessel-by-vessel averaging a contiguous a year-to-date ability Belvieu domestic of of last Further, butane by strong decline and and of as market motivated Range diversified quarters. cargoes XX% our X set a as a than attractive by experienced international rate position which and supported revenue at have broad $X.XX LNG by were Gas more customers, rate of cash of low our X of The high-quality, reinvestment benefits price markets, to team. Range's advantageous and NGL instead barrel diversification in a product revenues revenue. end base reaching production acreage indices. contracts of efforts for markets demand. and have portfolio industrial NGL of and power, transportation growing

as dividends, and only market in we shareholders. markets the it reduction, investments capital third a margins addition, range fixed of last with a within countercyclical returns years, a to position an persistent billion This over business That In approach as to goal-oriented strategic approach seen and sheet, allows us portfolio that reduction and business. reduces asset $X.X enables global billion, look hedging has billion debt Where supporting The as balance pairs opportunities, $X.X and efficient longer-term Range create alternatives. covers nearly the $X achieved not of costs in a XXXX of a employed expense, debt framework. $X.XX net world-class durable full-cycle quarter byproduct, varied our has asset buybacks, be share in target the world-class to XXXX. Range support ended investments several and with capture to paring has other flexible Range attractive a billion. debt interest it financial to alongside helped net

as take and view be As continued demand benefit what growth we Range expect NGLs. advantage of both from will gas we natural for a uniquely whole, to secular positioned and

the to provider investments presence energy consistently last while to flow to position as to back X a delivering value and have shareholders. Dennis, cash of story years, its the sustain in reliable free along durable over Our customers Range its made you. business with grow the we its

Dennis Degner

Mark. Thanks,

over I'd XXXX, day Range RINs total years this At gas, Q&A, first United of anniversary like Before Resources an on for the in today of Resources for a completed net that importer only energy well. industry of country. natural not but to exceeding also the day, moving XXXX, with in time, imports our our to #X, and States marks important natural the Mexico. total commercial the independence last of United Bcf Marcellus that account ago Range the globe. acknowledge was of the the XX the not Bcf per day, as XX is Utica exports States. of day. Today, gas gas and per production or has in X.X The The for Russia approximately around produced Marcellus Bcf X/X including exporter exports over to also year natural net per only and gas surpassed a XX Tcf but U.S. day the leading XX exceeding supplier

emissions energy generation utilization declined XX%, U.S. role During has the a driven due and total the a XX-year tremendous proud economic the to played approximately play this achievement This same emissions to in decrease been energy gas. are continues industry, natural by that and has power Range in we by to from time period, XX% providing our safe, clean increased world. of of

You've a high-quality decades, inventory to questions. place heard but best open successful today us showcase these into We business types inventory of state of the the communicated that through milestones history, decades forward this that and in measured well look continue it in the in results for And we'll a capable next all generating with let's translated Range's the derisked believe flow cash ago. before, the test company business line and is years a of we Range's XX to developing achieve. With started free that, having cycles.

Operator

first RBC. Scott Our with comes from Hanold of line Instructions] question [Operator the

Scott Hanold

added has midstream us strong I optimization. performance. a You pretty terms And forward? what like your highlight that to you have just done all asset in on of Could really of what give is that a production volumes rate has your the you that know base you Do decline some had on going sense base sense did added? in,

Dennis Degner

I the year. pleased It's something this on Scott, appreciate question with the awfully performance production. around we've been the

service. last from the and for really starts it lateral half that year half long of we gathering performance that into year. the of of through back front think infrastructure And saw some started to then really expansion I is with the this us, go compression

the part this the was of at was beginning of end early other QX the year last the One QX, of and of in projects year. of

from in wet super-rich Some both and impacts. mix, dry well areas to of across our the

the see you a the still and So seen the when see, it got of to field. producing upticks some seen we've little you laterals about how it's is We've think that the on can we that What a actually where seen let's move a just say, on level, higher some of longer to might constrained a it's, we've far, we've areas in what smaller through at at high wells small are benefiting have production across able say, system keep level. that so where we some more early some been utilization. and level trends of ability

this what at long right from And it's we think how of is we'll our probably or what at we're capable as of. maybe if -- So as about track roughly compression in shows of kind I When setting that can it we have year, business more -- up to just example, laterals. byproduct XXXX. But seeing year below and an the you X% performing look those on plans again, for that's look we're that think that. grow this you share the

at being XX% decline we're something of. is also proud base Our

reflects of continue even and over of time, is the the asset where further course but team's from we I shallow see that that think we could the quality expect it work, the it decline hard to today.

Scott Hanold

that? takeaway now talk of It's to getting the And question grow? to a XXXX to that X lot market? your and And DUC you is continue. you point? modest guess, Like frac pace volumes to gets I crew when get on you to the require Can the that, about do to partial shallow follow-up right you need kind My at you that do some And talked if growth decide crew what you then. you optionality do firm running a to decline. see have to easier were frac that would have regarding

Dennis Degner

question. Yes, good

to back think productive that the that kind what I ourselves as pattern from about weather forth. see Nina together order I other of when weather we what we come to see to to Nino and we [ start and one it's utilizing ask of we're some signals capacity, La [ winter El ] from to think in need think basics, to get of the going ]

commissioning X.X the need think utilization early optimistic to the of and day utilization about is reaching Plaquemines capacity XXXX. LNG we and Bcf thing other further of lot a reasons I to see infrastructure. There's a be in of that

infrastructure then reach X. year next We to schedule to of all this You've got another -- of Corpus you ahead gas start Train roll That's think are see bcf. through going that's Christi signs and it's year. that -- utilization end could X.X and full

the about talking those a you're in of before X X gold 'XX. you So potentially pieces X and Bcf pass alone day of infrastructure at even get to end Train

and additional news say, I like how they're incremental gas. So up kind what crew we together in it of transportation term and the as we to see see, do part have you fundamentals the what comes at we're that that. The the inventory let's responses we'd pointing going a takeaway infrastructure like price production. short that and up, XXXX have then that a we think LNG between more for our of with to pick the weather, good is set to to handle generated incremental we 'XX, with right calling look is add we feel ability When to the spot think production are when and that that

with frac activity program a a shallow focus a approach. this the half quite increase of decline like part in If profile flat then the a we've heavy production year. in of X-rig wave, about we've year, think the of and the crew This end seen out under past, looked year, the had more X ratable the come back our sign as a it more in and of that you you maintenance early bit

we our calls respond year, utilization materialize, we the lean-based think is when of the activity next than when transport call program. the good could year, spot what this could we being about of inventory, when we like 'XX of inventory, add a thinking byproduct for the see that right that becomes incremental if it. But it's it more not, some for we but signs or all whether utilize XXXX, good feel frac signs right and we again So could back a into crew it, half market efficient just could of add like,

Operator

line question Neil comes of & with the Goldman Company. next from Mehta Our Sachs

Neil Mehta

bit results historical market. strong big is kind a differential on this it But more talk here. for maybe you us it mentioned strong, where from the to start And about And your down realization where step-up marketing think that but Slide are that's you price Really for differential off know the price your little you Yes. levels was is a international to super could sustainable, teams of I it doing. strength. XX, and talked about NGL get you what and of break ability

And so how that help keep us you momentum up. understand

Dennis Degner

heard I the with to Yes, that approach, different us a we're to production, ability Appalachia But different with running We're we've able our XX%. dock probably a utilization to barrels this and we an of it for back about start and exports lot out at day X exists is you've we're out high development setup really think mainly right the as outlets that ability running purity us. starts our of an the over export around a Marcus industry, extremely today, Gulf. that been in processing the have those out came of and market products it in in of think say start allowed us you waterborne XXth clearly, ago exposure -- RINs to you when in Neil, this XX out to opportunity meetings our that remarks anniversary But a prepared of year, But all this and seeing how celebrating for product Philadelphia. And a began. level export to getting is we of what our to million and as well. Hook, setting And look again to Northeast had together. to point be premium at other the think years

clearly, at us opportunity at congestion rate, of seeing time, strong those when what's in there could additional has seeing the PDH you're the commissioned, see we're really grow. and growing an When infrastructure market. to issue. All that utilization 'XX look to more present that coming kind the premium that you to in of about, for to that on there's is again, been we're occurred both levels below but out and But a an uptick, think so be infrastructure same presented utilization Asian continues where And the Northeast in that bulk continue a XXXX. continue the rates a XXXX, of you congestion commissions when for start to has the you demand go capture

remain take half we congestion, think that about really pretty infrastructure until So expansion XXXX doesn't deep the in and there shape optimistic dock if into and the the with 'XX 'XX. really capacity you back of that

fundamentals believe improvements continues So NGL with of our premium that look, be in end capacity we dock grow. And that price here as could well. repetitive what play been in start the us will But level continues to XXXX. And exists? to to not. the that still Maybe will as come other in we Northeast think that much you what harvest for expansion, a same be present for a 'XX realization demand we've set and very to structurally are premium see in at of there's to able that

Neil Mehta

more given proxy as on or to how 'XX maintenance the of on it that use Okay. a I'm the for are moving Again, perspective to that level, 'XX But you're plan we just fair need capital account? capture into in to to about is good relates it up can close as this, next you're relates there pieces take it efficiencies sure, you to running and thinking a then that 'XX follow just as capital. get we're And months. going couple to the to

Dennis Degner

Yes.

about is year doing to other that's going time but I lot sure And with that will. think still is business our efficiently if We're am activity think thinking this I like a are the good how the what good you of look XXXX. drilling of a same in our that and 'XX then and producers clearly, 'XX question, look Nei. way it the feeds starts crew of I a dedicated refining could frac process,

if that that time have constructive But think sense maintaining of us. to of a doubt a this or same clearly rigs at If are year, feed that little 'XX we'll operational a rig the for future with generate continuing about call you're inventory that the 'XX, on to for spot with capacity rigs crew. frac flexibility could cadence reduce and make no efficiencies it where and and It there's you in some X X activity instead point of horizontal the look frac year. Again, next that we the operational you in-process bit lot does in have of utilize productive you fundamentals level kind crew. in-program maintain the if

activity is So thinking program 'XX our starting in how about think way of, I'll capital could say, think just XXXX about I look. good in a to our

Operator

from next question of with Wolfe Our Research. the Doug Leggate line comes

Douglas George Blyth Leggate

Dennis, data in-basin demand, demand, centers But elaborate seeing what topical. might opportunity as have little both could be Range I walked from you just front, the on follow-up. particularly a a I capacity takeaway bit and by talking is little guess, you to very and wondered in-basin bit kind to mills topical if for the into about of quick a ask I you're I

Dennis Degner

Thanks bet. joining You us. for

But start clearly of take acts about there have we industrialization see is that some things couple slide when we color say a that. I with think added really, start the the over that's this approved starting regionally, legislative been new to near to try put some shape is We the demand, term. cycle the near-term a of about I'll It's that Slide years. to few process the when deck, you think just to demand expansion to in around #XX. think and slide more last

years, Intel you fab there's semiconductor as when the few Micron going be so facility well. to about also facility the and think next And clearly, the

We kind have of demand clearly our to, that continue say, the to I'll will access to growing ability have that that others through transport, just and materialize.

heard That's got clearly, been there I nat that. coal Bcf X that over while that take take thermal me to probably over of shape. the on XX% XX gas that's I the are the if incremental months, could is to think because going burn a you've got in unique, back-to-back say now we're look months, XX we're X.X feel day again approximately playing share last You've just XX day. And enter the shape retirements year to half the years nat this factor XXXX. before role you've -- like in next displacement seeing but really actually each of one-on-one year-over-year. conversations, wildcard of we now that up the through But you around when power wind a first Bcf on of that's and side underappreciated X.X of all a And around gas

nat think, that, So what the gas play role durability will in I shows the of again there.

capacity. -- a expansion X.X as we Bcf then and MVP to take Bcf next day X Transco clearly, point. running from pipe see So that in ability activity beneficial, been sub the X few a has that to there's takeaway But standpoint, has at the clearly, this been reach years place and

are that demand. And go to the auction day. some future near on shed will $XXX think the the per in the probably megawatt conducted we are the recently starting somewhere data future PJM also power movement to But mid-$XX those it the light shape was around are power think line-of-sight to materialize type take from I range saw that around a when you need critical we that in of in centers, projects. conversations know So term, lot there

-- there's early to some there So that shape. take movement has are indications

well. we're also demand as how of the that's that regionally, So but pin seeing kind also to going is the know big LNG in be place we future take this

Douglas George Blyth Leggate

but extraordinary -- frankly, trying from current I I That's question, you benefited you you for very this don't this, is, that an continue? my from [indiscernible] capital that's the story, to room you longevity No so that, my is are that's efficiency. been guess in pads level. But can to might but best-in-class at terms I want helpful. to maintain of returning fully this your the extraordinary, question what benefited given drilled, you have but guys previously capital described be through guess you in Mark, follow-up, utilized. how business for spending been And the the running level that, clumsily an I'm you'd back to hadn't walk that the

Mark Scucchi

Sure.

the it's as of as work gathering is The entire essentially the if on think I we back year pads. standpoint, productivity program from how partners a build locations. be and with given explain are wells consistent And, to system. to we the a Range those rewind can the new point I performance gathering system the beginning of I capital footprint. try put that at mean longevity all still how way built to half in the in Range's think important, across these existing you out, of terms roughly are

half our some are of year and on go ones. infrastructure, So while a half wells roughly on existing use existing new pads given in

perhaps nonetheless sampling perfectly getting across you're a entire slice, essence but the a a not sample, is sampling, in what a So acreage statistical position.

and why move And effect. program of in road you a averaging particular to existing get of a the out. portion ones. meaning down very what things you year not all an of get So the is result We and area means the specific consistent fully also one down level very It's the like Dennis that gathering on in That you and area. spoke it, system gathering area, benefits a exhaust consistent use moving about one a locations to as utilize reuse available underutilizing to continue the earlier, why and is see -- optimization then of you're didn't the because another existing focused why exhausting attempt use year gathering reasons you area, a we're particular with on the a the road, system. system. It's

at a locations the compression uplift given of production existing So new existing that optimization for the base pads from our returning of year wells. added like against production and and part

per expect how back the what one to inventory keep see have. in getting just see in lateral that even and they're in in decades how per pulls change day So team's to a it's measured footage that at they you That and not at placing and is any drilling to productivity. we out, back your completion, they're all up, efficiencies more way the side, accurate. It's first expect more day, like? drilling, pull lateral of targeting, we better very that drilling slides it we how learn targeted The look level it's accurately would before the landing, does the point, material The year to question interval. program is long stages that can year whether and fast on the drilling to

is the that terms of in Range's So think we it. story efficiency how combined perspective unique truly hold can with long in we that

Douglas George Blyth Leggate

clarification. new replenishing go? program it the that think is pads, you you way Because pads. that fair of quick your as you're half a to kind like, to Is Is still Just fair of about if it? say drilling then partially those utilized a

Mark Scucchi

way thinking fair a I think about that's it, of yes.

Operator

Jacob Roberts from comes question the next Company. & of with Our line TPH

Jacob Roberts

touch to the I land on spend. incremental wanted

how the think $XX for being as you you're set near-term to just a could noted, year elaborate the I relative maybe XX% million. perhaps feet and was that there for given million inventory? opportunity hoping you is what's that you've of another decades-long there see effectively enhancing adding to, or I acquired replacing indication on the as lateral drilled a year $XX

Dennis Degner

open very really if exception if they're represents acreage there that you the well a think can space look about -- part you parcels the our set, I when the position of our up. more it's is among blocked -- across exist, than rule. acreage asked you unique It opportunity position, look small really, that's

And sometimes extending our well. perimeter of position at it can as involve the laterals acreage

translate will laterals, factored it we opportunity know the an total our set, as capture XXX,XXX And but so when allows lateral wells. we think feet which into of into much open capital-efficient inventory those most this us about essentially our wasn't as could to then parcels and to then year numbers, represent opportunity extend that

program example, you of foot So all as the development year optimization our were on to some our XXXX throughout the time pick ability average -- By end look year up predicated we beginning the plan that of we at XX,XXX we with got those started the ability the XX,XXX open of the an the the to an like laterals. of on almost at and around the see. off year, feet, of if you parcels

this morning, at use It does So of inventory. talk system the dollar you've adds production you something and the scheme quarter-over-quarter, when most wells and heard completion that add drilling ties our well. And pennies to grander the efficient of about investments capital-efficient that as the say, just efficiencies look it gathering that because incremental the that year. when the we'll on add becomes, we've touched type for also into think it that on us dovetails you about

Jacob Roberts

of your the ultimately Great. to Mark, see approach exit. the maybe a sense or might get down when kind the for be those Just remainder of to should year trying next we And year, thinking interest XXXX throughout a come we notes? then How of if question. about cleanup

Mark Scucchi

Yes, we've as in the and of markets a options interest said, backdrop in That's us. a We're of of the as right reality a declining environment, we are business it to good worked today Range have both economic reduced hard front where capital the be now. has debt. where deal well rate open. position That positioned we are in just to

auction, at not transaction there them. the So is way most the that's need managing of to prudent do if economically a the

the today, generate plus before the So hand year. the early cash I would we with date will maturity have on start cash baseline, next say

point. That it that cash revolving amount Range those at better at we hand terms to for for we don't on if part of a you down, optionality taking tail to completely credit at the in undrawn continue the present [end-of-the-quarter refinance a in those maybe have how -- any rate. facility that pull of certainly in have said, some see 'XX, also but We optionality care those want could come notes] of looking rates approach

interest in and in our time? to drive ZIP net down having and being So great of spot optimize the we're expense debt able over target code

Operator

of the with Kevin Partners. MacCurdy question next Energy Our Pickering from comes line

Kevin MacCurdy

how an earlier plan quantify about do follow question Are you many DUCs up wanted to I able to at in the year-end? wells have you on progress. to

Dennis Degner

we've And that get drilling really defined year our last the it and exactly to around investment what about, this the the and of end program point, at standpoint, million say around $XX year. development efficiencies sometimes don't in throughout number captured though, it's think is $XX capital activity this is. year a I from of dynamics just we Kevin, part been million the between we've think When the moving because to as you year. that we'll the of

going be the so And about in of going give but to I'm to I'd say of an be X ultimately, wells. you, it's -- somewhere worth to pads neighborhood approximation it's number just going

the has So the efficiencies. the of see we as refined number. harvested kind closer XX better in But good a end think to work we'll and X have get of year again, to their team number what through

Kevin MacCurdy

are when utilize day capacity, of your just completing take advantage And that level of would opportunistically a permanent spikes? consider to Bcfe clarify, Great. or temporary productive kind price X.X on those of to to wells production step-up decide you envisioning you kind you a

Mark Scucchi

here. I'll in chime

in production. It fundamentals call way. by demand, on That's what your up could on think given you're depending to to can inventory. turning be When going process Range with it's onetime line driven year, of state steady on fundamentals. how to pull steadiness we either in the exposure and could represent I that's in-basin year, that work opportunistic a LNG so just combined go next that just-in-time the online our of a slated the come shape the be

Mcfe that's optionality beauty that either/or what an you is, I it. when what it's But of cycle back story So and full costs Range's efficiency the to think in that fundamental is you're whether maintenance stepping there. that leading a D&C growth just when efficiencies This you're and the in further some edge. per whether mode into or tailwind, stays capital represents pull the the means, at capital

there reset that's sustainable drive decline there fundamentals, per strong to generation still said and reset a So is on free a extremely strong efficiency a even to differently, D&C really higher rate with level, an the to level level comparative that is a going Mcfe. some the flow when higher low really, based or base if cash is

Operator

Wells comes next the Roger question with Our of Securities. Fargo from line Read

Roger Read

guess question I one I'd like to come out.

about keeping decline existing around the X question one -- at then they level, about what kind parts. as adding of think and the of we wells, that while. well of any, just potential changes of does gas, in And flat all? new with benefits Given those? been Have NGLs of mix to production say, a production the decline flatness are position production remain of trying change and dry production with think like stuck rates, of we let's Base wells think if CapEx? here X in terms in about a there? I'm the changing What as NGLs terms we in versus or any look type changes of for

Dennis Degner

I'll tackle Roger, Yes. one. this

decline you've not base think prior time. shallow our the our to over XX%. running if around heard calls, ago, think mention few was XX%. And is continuing A it you us typically, and it should of but around years decline, at look base when in course consistent, I very look it I today,

of the course slightly time we expect to over it So shallow. would continue just

very We've still resilient. wells. X,XXX producing got ultimately, So

wetening a we I the think production you versus So about changes, when stream. you for a a what steady like back the When the that strong a it just over we'll last represents, a think meaning set to year just [ is comprises that future about quarters look look data provide. year say, and of few slow incremental on good -- base just this production us, that ] number way mix could think seeing

were XX%. right at I think we

a that the clearly, bit we our production expect you'd and across time, time, our our have all it portion to in it's to of economically the an wet pretty course of of X/X the our across look again, a the you inventory -- we'd And above the some inventory, get more About similar. side. large look of of over where expect us where, each competitive little see most the of other. with on production to seen But bit very mix level. But course have little resides dry contribution. NGL continue stream You've side, capital-efficient X/X a though, wells. When they're

Operator

the Our with question next from of Truist. line Donnes Bertrand comes

Bertrand Donnes

you prices that you anticipation and accelerate? part begin in to and the the how in ability is then you production your those see of does follow add in then to modest hedge? Just into create to some you to clarify on to playing logistically. prompt the you hedge that Or move hedge is for to do then of want forecast to up up you see do out see NGL of maybe growth. wanted you kind it increase Or Are to the supply-demand a pricing it natural I of strip? you second prices, kind just prices waiting months just the try And that? that? need need Or a

Mark Scucchi

if prices where this Well, me are flow cash with today. Even start quarter. let generating we today, we're free

certainly referred to whether demand demand, reindustrialization, it's pricing the whether power all fundamentals, at LNG, we're of is new the what things demand, and clearly. as deck a the well. factor, the mentioned the pull, we've it's those But is So the slide looking the in-service it's in whether

for maximize So host into great don't capacity the and various inventory demands. as that the we have some that manifests a the short step transport about on its that you growing it, up over to utilization, in selling exposure remarketed also There's into timing use who by to not do into, with customers it underutilized picking capacity that others those have with picking capacity, step either of to us think form existing itself, There's fill how get to pipelines we of ways already up on can it time. and term, markets

our of in somewhat that's an grow they're decisions, capital goes, to to costs. But parallel, is to hedging the the done investment make try to as far fixed exercise company related. philosophy hedging certainly As cover the

generate of commodity a I for example book. But front. type So cash is program hedge extension, rate handle through guess a by up go-forward X need year's you're free your dividend a stepping good positive a again our really level. covers keeps of it. good think flow, you type costs exposure and to front That covers with in fixed your It's on that the I capital, next your mid-XX% and think hedging the might setup if implies what to in

each those So on call hard-linked are I it how we say shape wouldn't the as other. to influence necessarily. from supply growing that and fundamental first Range far capital They certainly really, just decision markets. goes, the as deliver X it's But and

Bertrand Donnes

just Obviously, the hit getting makes maybe That we quick. that's sense. then obviously, still large most question generation. center to the demand part data counterparties not of Or the the Appreciate too obviously, XXXX gearing gas the sign gas, I any on to the headlines sense players but kind a for Or center-related and data your of a is Are real in it. of kind XXXX, is there just conversation for kind fixed playing way is of agreements space? early want nuclear in agreements? And up are again just you are the in space agreements? asking? Or signing

Mark Scucchi

and of rapidly of meter whether ways centers a industrial directly lot counterparties had that directly whether other servicing or utilities, whether lot in different it's demand. conversations, a with the of power it's need, different type independent it's the conversations think with with the I are data behind being producers,

those multi-decade investments companies by So themselves. type investments mind those that conversations are in are all being for had. Keep these

of agreements, not that and in at and pricing develop series are of the over manifest probably of had those conversations for months. these So discussions that structures will they those 'XX, be market, the itself. of tenor course to is are -- nature a the types how going and This arrived 'XX

plant. independent utilities, if back at potential mix and But a to X it's in regulatory displacement assuming meter deals it probably be the the day of of potential. the incremental far, and nuclear nuclear power traditional on all like nuclear. you're look That's behind clearances you Bcf the natural to pull approval of what for Now into producers, for directly demand power and the conventional of so gets a the meets required order recommission less gases the some going just the seeing it's X something

by of natural encouraging the and can and need XX/X industry data terms do power. reliably something gas clean certainly the are creativity XX/X. industrial So, the we, And that's those demand recognition that they reliable centers that in

Dennis Degner

just will I bolt quick on And things. X

I you think price look auction. increase just Mark's earlier, support if power you to comments, the price -- again, I've at -- in if PJM the further it but -- referenced and recent

$XXX for be on And think inclusive showing low-cost the source their to million actually energy support at ultimately, you helps willingness and And the it's that I of foot, it's of future do to demand would it's process, think speak, they're -- add at the meet of be many it's the I'm site we to sites the up, I long-term, expansion same an kind the -- through how for balance you et or budget see the that will front have state calling to, and costs industry going that their generation. things, assuming conversations we're encouraged to the PA a are readiness can data power. But jobs. indication out something there's an of I recent this supply look power, demand. growing accelerate manufacturing imagine and all that earmarked preparation the Pennsylvania think they how cost so quickly understand, residents cetera. But approval going job to end of for basically to whether centers, to grid, state I time or figure that's program lastly, and you do to how that that again, future whether users a of very through feedstock consumers

anyway, from So encouraging pretty view. our

Operator

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

Michael Scialla

to talked you alleviated? capacity your the markets. if there constraints NGLs Hook that that the to if liquids end see gas wanted up? congestion And on Gulf, follow you up of there you up could now? there NGLs going coming I of see wondering natural Do of is all any And Marcus those some out go about being

Alan Engberg

is the that Gulf. to majority go I exported are business. is that Engberg. our NGLs the manage quick to our Alan marketing answer A this Michael, of

on In Hook. side Marcus LPG the sorry, go fact, or through --

competitors. side, fact, to able up level of relative production the XX% which is our our highest of on of the In we're actually to to LPG export any production,

most is lower up Gulf indirectly it, We that than Marcus products. we our Marcus still range of typically is exports of X% Gulf goes we the opportunity U.S. ramp call Coast part, actually facilities. through have Hook. I'd Dennis to there's exported some the export sales out referenced do down what what for what for Hook Gulf the that utilization the to optimize as capacity XX% But on do to ethane earlier, Hence, running is. an gets

Michael Scialla

the that. Can appreciate just to I the guide. ask about driver there? year. up what low end the know I moved wanted CapEx talk you helpful. That's for was on the I you

Dennis Degner

we side on communicated capture open for those by land was it. some it's this that's touch us year. that kit had the I'll able the extend And that. parcels, provide all where But space, to I now well $XX else based side starter of white had honestly, upon laterals. think ability the track on mean, up and for to that guide up was activity driven drilling million. We've year, is on the is still we've I provided areas of essentially some did Mike, year-to-date. Yes, allow completion quite land been within it that beginning within But ranges us we for the year. adding for open to the like say that had pick that are up the parcels we're that to basically Everything drilling spend the I'll that, the the during guide and what we

Operator

from of comes line Mariani question with next ROTH. the Our Leo

Leo Mariani

here. I in of just share wanted the to little a terms bit up follow buyback

it the that to a folks increase 'XX. still your trying buyback? in you ramp, redemption is elaborated sense, you fact described we expect free flow going as is have certainly and fourth just quarter that But on. throughout feel recognize coming at looks increase Certainly here cash point. as bond start guys free stock So you up potential to this to as obviously though the in already You share undervalued get flow should a the a that commensurate cash payment,

Mark Scucchi

target Yes, laid years capital code, latitude the and and couple a we'll ZIP to over which the to the at I principles return last then have we've of is balance out sheet lot how greater of we think in to the -- on get that win shareholders. our cadence

the think your The is code. target ZIP balance is question answer I the to in So yes. sheet

the we latitude or a now So share very, over we the dividend proved greater buybacks to even on to disconnect to compelling. per to share the share reserve lot value shareholders, have significant return certainly, very ratable, time, a capital value simply whether shares, given it's we slow of and see durable see basis. The the buybacks increases is

have that's under a certainly capacity the we certainly and So plenty outcome. possible approval, existing of

Leo Mariani

Appreciate that.

efficiencies expect softened like Are on there efficiencies? any not of on a it leading-edge function You know to using if has maybe seeing those equipment, I here if folks now of you be And you're faster of longer efficiencies but what see program coming can you're oilfield down? company? I that obviously quantify is discussed mostly for of activity kind on any seeing a service costs ton into you move improvement per down and to come could is continuing prices And the costs? 'XX? any capital laterals. rig as in comments in the wanted lateral D&C and you foot

Dennis Degner

just standpoint, for service it's process our from Leo, cost Yes, We've a fall. I early. think RFP launched the

lot a for have answer you. better we'll So

seen on of we process. we results the think year beginning from to the see I get -- we and when bear mean, have we get touched that we I it. what and the

to there We at the goods an of it's all, coalesced tubular the consumables, those rig as remain And some today. in laterals, other long some resilient some as well. pretty maybe provided sides you similar rates you of et of configuration. think levels. And have like frac industry, some seen depths, areas sand, I'll see to we've rates, cetera, current say some rig But similar about support price rig a of some that -- are with relief that super-spec when kind areas drilling

to lateral regardless we how plays team the per efficiencies a what X basis. be continue we're day anticipate quarter frac strong. service to in XX a out to now. do X.X days from Bcf going the day is balance. And to crew. And this in, recycling on and past of stages ability seeing some the a hold frac on it's We continues side this harvest, to with drilled So the look cost out X perspective, quarter. a equivalent drilling Water with the quarter efficiencies there record

just heard, the -- guess, we a once I spirit I've in So of success success. phrase begets

so And standpoint X.X upon momentum. land And team flat to I again, standpoint. a efficiency us capital next us the to And service of continues that would for wherever be expect from Bcf crew. front the hold that to end the continue the build on frac if for low X year, cost to we

Operator

are we nearing gentlemen, and conference. end the Ladies today's of

for We Diamond Citi of our to Paul will go question. final

Paul Diamond

any and I quarters up? that do there you for fruit inventory something and Is coming the around one wanted should quick might any, opportunity plan capital get kind years? about spend. in categories Or in the rate -- think as on are land bump going fruit run to of low-hanging those of -- flat a forward see we set I pretty incremental infrastructure low-hanging that just that guess, the and

Dennis Degner

here. Yes. start Paul, I'll

years. we part small break in -- the some by the what think year time, of I to would captured or held land our saw years a incremental and classify it the next mainly for the a is exposure going we're we'd program. But expect that spend because production really this of excess over to imagine, ahead more in just us that of XX% acreage our out expect represents overall visibility, lower of as be few you'd we course you that in be

years So expect a are in be in this to come land for around opportunities that to footprint. producing exist we and There would in sure. our the some exposure decrease

seeing mechanics in our PA present that operate of the that them area, and exposure X for lower look state would lower raw future parks of some us course just And and a execute could you're time. of today, to how are over I the expect Southwest opportunity. But are land that the

general going a capital in good visualize business I our going forward, capital activity year, is could far and think, As again, way look this a really to how from as standpoint forward.

I had think the I it's come with prior years, we pretty a we've essentially percentage production thinking that of the flat added capacity program versus the but add activity and incremental years. a also we that yet process. over production output X business. are the good here about mean could the to the productive from low DUCs past got ability throughout And some we've way

in participate As The low-cost in that no materialize that growing think to foot, demand. look so to our be when. that and speak, Mark results have with if, like help front and that happens, that doubt, said our And inventory be demand growing don't high-quality fundamentals sure and operators I'm of the able it's inventory to fill on demand will program participate different, a to earlier, little when we come to the it's help to starts bit we'll together but Range fundamentals.

Operator

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

Dennis Degner

like I'd the for you say to everyone just us thoughtful the thank appreciate We joining for on all questions. today. call

Thank please If call you. we our you up the look forward and with on, talking about team, have XXXX. follow-up Relations follow anything to to next Investor and

Operator

and call. your for Ladies conference today's Thank gentlemen, you concludes this participation.

disconnect. now may You

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