R RANGE RESOURCES® Company Presentation May 2021 Forward Looking Statements All statements, except for statements of historical fact, made in this presentation regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions and estimate ...

Range Resources Corporation (NYSE:RRC) Q1 2021 Earnings Conference Call April 27, 2021 9:00 AM ET Company Participants Laith Sando - Vice President of Investor Relations Jeff Ventura - Chief Executive Officer and President Dennis Degner - Senior Vice President and Chief Operating Officer Mark Scucchi - Senior Vice President and Chief Financial Officer Alan Engberg - Vice President of Liquids Marketing Conference Call Participants Josh Silverstein - Wolfe Research Neil Mehta - Goldman Sachs Kashy Harrison - ...

R RANGE RESOURCES® Company Presentation April 26, 2021 Forward Looking Statements All statements, except for statements of historical fact, made in this presentation regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions and es ...

Financial Performance - For Q1 2021, the company reported a net income of $27.2 million, or $0.11 per diluted share, down from $166.2 million, or $0.66 per diluted share in Q1 2020[119]. - Revenue from the sale of natural gas, NGLs, and oil increased by 40% year-over-year, totaling $603.3 million, driven by a 56% increase in average realized prices[121]. - Daily production averaged 2.1 Bcfe in Q1 2021, a decrease of 9% compared to 2.3 Bcfe in Q1 2020[118]. - Cash flow from operating activities was $109.3 million in Q1 2021, a decrease of $15.3 million from Q1 2020[120]. - NGLs sales increased to $230.4 million in Q1 2021, up from $100.4 million in Q1 2020, reflecting a variance of $130 million or 129%[125]. - Crude oil sales rose to $37.1 million in Q1 2021, compared to $35.6 million in Q1 2020, marking an increase of $1.5 million or 4%[125]. - Total natural gas, NGLs, and oil sales reached $603.3 million in Q1 2021, up from $432.1 million in Q1 2020, representing a variance of $171.2 million or 40%[125]. Expenses and Costs - The company achieved a 40% reduction in direct operating expenses per mcfe compared to the same period in 2020[120]. - Transportation, gathering, processing, and compression expenses decreased to $274.3 million in Q1 2021 from $284.8 million in Q1 2020, a reduction of $10.4 million or 4%[126]. - Direct operating expenses fell to $17.7 million in Q1 2021, down from $32.0 million in Q1 2020, a decrease of $14.3 million or 45%[130]. - General and administrative expenses were $38.0 million in Q1 2021, down from $42.3 million in Q1 2020, a decline of $4.3 million or 10%[130]. - Interest expense increased to $56.9 million in Q1 2021 from $47.5 million in Q1 2020, an increase of $9.4 million or 20%[131]. - Depletion, depreciation, and amortization expense decreased to $88.4 million in Q1 2021 from $103.0 million in Q1 2020, primarily due to a 4% decrease in depletion rates and a 10% decrease in production volumes[133]. - Brokered natural gas and marketing expense increased to $72.3 million in Q1 2021 from $32.6 million in Q1 2020, driven by significantly higher broker purchase volumes and prices[134]. Debt and Financing - The company issued $600 million in new senior notes to reduce its bank credit facility[120]. - Long-term debt as of March 31, 2021, totaled $3.1 billion, with $124.0 million outstanding on the bank credit facility and $3.0 billion in senior notes[150]. - The available committed borrowing capacity under the bank credit facility was $1.9 billion at the end of Q1 2021[152]. - The average interest rate increased to 6.8% in Q1 2021 from 5.6% in Q1 2020, reflecting a rise of 1.2 percentage points or 21%[132]. - As of March 31, 2021, the company had $3.1 billion in total debt, with $3.0 billion at fixed rates averaging 6.8% and $124.0 million at floating rates averaging 2.3%[170]. - A 1% increase in short-term interest rates on the floating-rate debt would result in approximately $1.2 million in additional annual interest expense[170]. Operational Strategy - The company aims to achieve net-zero direct emissions by 2025 as part of its operational strategy[115]. - The company plans to focus on organic growth through disciplined capital investments while preserving liquidity and improving financial strength[115]. - The initial capital budget for 2021 was set at $425.0 million, with expectations to fund capital expenditures primarily through operating cash flow[150]. - The company plans to continue optimizing drilling and operational efficiencies to improve profitability and manage debt metrics[151]. Risk Management - The company entered into derivative agreements covering 317.2 Bcfe for the remainder of 2021 and 4.9 Bcfe for 2022 to hedge against commodity price risks[142]. - The company’s commodity-based derivative contracts expose it to credit risk, primarily diversified among major investment grade financial institutions[169]. - The fair value of natural gas basis swaps was a gain of $9.5 million at March 31, 2021, settling monthly through December 2024[166]. - The fair value of swaps showed a hypothetical decrease of $60.658 million with a 25% increase in commodity prices[169]. - The fair value of collars indicated a hypothetical decrease of $11.493 million with a 10% increase in commodity prices[169]. - The fair value of basis swaps showed a hypothetical decrease of $21.978 million with a 25% decrease in commodity prices[169]. - The fair value of divestiture contingent consideration indicated a hypothetical decrease of $13.680 million with a 25% decrease in commodity prices[169]. Other Financial Metrics - The company recorded a loss of $19.8 million in deferred compensation plan expense in Q1 2021, compared to a gain of $8.5 million in Q1 2020, due to stock price fluctuations[137]. - Total sources of cash and cash equivalents were $1.19 billion in Q1 2021, slightly down from $1.23 billion in Q1 2020[144]. - The company had total assets of $6.2 billion and cash of $449,000 as of March 31, 2021[149]. - Income tax expense decreased to $2.7 million in Q1 2021 from $29.0 million in Q1 2020, with an effective tax rate of 9.0% compared to 14.9% in the prior year[141]. - Approximately 65% of the company's proved reserves as of December 31, 2020, were natural gas, with 2% being oil and condensate[162]. - Total stock-based compensation increased to $10.6 million in Q1 2021 from $9.2 million in Q1 2020, with general and administrative expenses rising to $9.4 million from $8.0 million[134].

Company Overview - Range Resources is a Top 10 U S Natural Gas Producer and a Top 5 U S NGL Producer & Leader in NGL Exports[6] - The company pioneered Marcellus Shale in 2004 and has the lowest breakeven price among Southwest Appalachia E&Ps[6] - Range Resources has approximately one-half million net acres of Appalachian inventory[8] - Proved Reserves of 172 Tcfe at YE2020 with PV-10 of over $22 per share, net of debt[8] Financial Performance and Outlook - The company's 2018-2020 D&C Capex was ~$280 per Mcfepd versus peer average of ~$387 per Mcfepd[11] - Cash unit costs in 4Q20 were $184/mcfe, improved by $034, or ~16% since the end of 2018[11] - The 2021 all-in capital budget is projected to be $425 million or less, with production maintained at ~215 Bcfe per day[13] - The company is targeting leverage of below 3x at YE2021 based on strip pricing, with potential to decline below 2x by YE2022 at $3 natural gas and $55 oil[13] Environmental and Safety - Range Resources is targeting net zero emissions by 2025[9, 14] - In 2020, the company recycled 144% of produced water through its water sharing program[12] - The company has achieved an 80% reduction in GHG emissions intensity since 2011[89]

Financial Data and Key Metrics Changes - Range Resources reduced cash unit costs by approximately 10% in 2020 compared to average 2019 costs, resulting in significant enhancements to margins and cash flow [7][33] - The fourth quarter unit cost was $1.84 per unit, which improved by $0.20 or 10% compared to the full year 2019 [33] - The company reduced debt by over $1 billion and improved liquidity to approximately $2 billion following a bond offering [9][34] Business Line Data and Key Metrics Changes - The operational program for 2020 resulted in 67 wells turned to sales, with approximately half focused on dry gas acreage [15] - The average well cost for 2021 is projected to be below $600 per lateral foot, maintaining the best performance among peers [10] - The company plans to complete 59 wells in 2021, with 60% of turned in lines expected in wet and super-rich acreage [18] Market Data and Key Metrics Changes - The pricing for 2021 NGLs is expected to be comfortably above $20 per NGL barrel, with an anticipated realized price approaching $4 per MCF equivalent [7] - Propane prices have increased by 70% compared to the third quarter of 2020, with expected pre-hedge NGL prices above $25 per barrel for Q1 2021 [26][70] - The differential from NYMEX is expected to improve from $0.57 in Q4 to $0.20 to $0.25 in Q1 2021 due to returning infrastructure and strong LNG exports [25] Company Strategy and Development Direction - The company aims to return capital to shareholders while maintaining a focus on safe, efficient, and environmentally sound operations [12] - Range Resources is positioned to capture the best value for its LPG production through flexible export capabilities and expects to export over 80% of its propane and butane in 2021 [27] - The company is focused on reducing costs and enhancing liquidity while maintaining best-in-basin capital efficiency [28][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about generating significant free cash flow in 2021 and 2022 due to improving commodity prices and operational efficiencies [12][36] - The company anticipates a healthy and prudent approach in the industry, prioritizing shareholder returns while managing environmental, social, and governance matters [37] - Management highlighted the importance of maintaining a strong balance sheet and reducing leverage to enhance shareholder value [36][68] Other Important Information - The company corrected a deferred tax error in its 10-K, which was a noncash adjustment and did not affect the net operating loss balance [29][30] - Range Resources has a core inventory of wells measured in decades, providing a long runway for consistent results and efficient capital deployment [11][39] Q&A Session Summary Question: Regarding the asset sales program and the current A&D market - Management indicated that the company is in a strong position to make economic choices on divestitures, focusing on maximizing cash flow rather than needing to refinance [45] Question: On the sustainability of cost reductions - Management confirmed that the cost structure is durable and repeatable, driven by operational efficiencies and innovative technologies [54][56] Question: Outlook for natural gas demand stimulation in the region - Management noted that natural gas is replacing coal in power generation, and there are opportunities for growth in LNG exports and local demand infrastructure development [63][66] Question: Thresholds for returning cash to shareholders - Management stated that the long-term objective is to operate below 2 times leverage, at which point they will clarify the framework for returning capital to shareholders [67][68] Question: NGL realizations and future premiums - Management expects NGL realizations to continue improving, with current market values indicating a significant increase compared to previous quarters [70]

Part I [Business and Properties](index=5&type=section&id=ITEMS%201%20%26%202.%20Business%20and%20Properties) Range Resources, an independent natural gas, NGLs, and oil company, focused on strengthening its balance sheet in 2020, with proved reserves decreasing to 17.2 Tcfe, and plans a $425 million capital budget for 2021 - Range Resources is an independent natural gas, NGLs, and oil company with its principal area of operation in the Marcellus Shale in Pennsylvania[18](index=18&type=chunk) - The company's strategic focus in 2020 was on enhancing cash flow through cost reductions, operational efficiencies, and strengthening the balance sheet, rather than growth[20](index=20&type=chunk) 2020 Proved Reserves Characteristics | Characteristic | Value | | :--- | :--- | | Total Proved Reserves | 17.2 Tcfe | | Composition | 65% natural gas, 33% NGLs, 2% oil | | Proved Developed | 57% | | Reserve Life Index | ~22 years | | Pretax PV-10 | $3.0 billion | | Standardized Measure | $2.8 billion | 2020 Production Highlights | Metric | Value | | :--- | :--- | | Average Daily Production | 2.23 Bcfe per day | | YoY Change | -2% (due to divestiture) | | YoY Change (ex-divestiture) | +3% | - In 2020, the company received **$246.1 million** from asset sales, issued **$850.0 million** in new senior notes, and repurchased **$1.2 billion** of nearer-term notes to improve its debt maturity profile[22](index=22&type=chunk) [Our Business Strategy](index=6&type=section&id=Our%20Business%20Strategy) The company's business strategy centers on building stockholder value through returns-focused development of natural gas properties, primarily in the Marcellus Shale - The company's business strategy is centered on building stockholder value through returns-focused development of its natural gas properties, primarily in the Marcellus Shale. Key elements include[25](index=25&type=chunk)[26](index=26&type=chunk) - Committing to environmental protection and safety[27](index=27&type=chunk) - Concentrating operations in the core Marcellus area to achieve economies of scale[29](index=29&type=chunk) - Focusing on cost efficiency to maintain low finding, development, and production costs[30](index=30&type=chunk) - Maintaining a high-quality, multi-year drilling inventory of over **3,500** locations[31](index=31&type=chunk) - Marketing products to a diverse customer base in various markets[33](index=33&type=chunk) - Maintaining operational and financial flexibility, including using commodity derivatives[34](index=34&type=chunk) - Aligning employee incentives with stakeholder interests through equity ownership[35](index=35&type=chunk) [Outlook for 2021](index=8&type=section&id=Outlook%20for%202021) For 2021, Range has established a capital budget of $425 million, expected to be funded within operating cash flows, with a primary focus on safe and efficient operations - For 2021, Range has established a capital budget of **$425.0 million**, which is expected to be funded within operating cash flows[38](index=38&type=chunk) 2021 Capital Budget Allocation | Category | Amount (in millions) | | :--- | :--- | | Drilling Costs | $401.1 | | Acreage | $20.0 | | Other Expenditures | $3.9 | | **Total** | **$425.0** | - **Primary Near-Term Focus:** - Operate safely and efficiently[40](index=40&type=chunk) - Target limiting capital spending at or below cash flow[40](index=40&type=chunk) - Reduce direct emissions and target net-zero direct emissions by **2025**[40](index=40&type=chunk) - Achieve competitive returns on investments[40](index=40&type=chunk) - Preserve liquidity and improve financial strength[40](index=40&type=chunk) - Focus on organic opportunities through disciplined capital investments[40](index=40&type=chunk) [Proved Reserves](index=9&type=section&id=Proved%20Reserves) Total proved reserves decreased by 5% to 17.2 Tcfe in 2020, primarily due to asset sales and reclassifications, with PV-10 significantly lower due to commodity prices Total Proved Reserves (Mmcfe) | Year | Proved Developed | Proved Undeveloped | Total Proved | | :--- | :--- | :--- | :--- | | **2020** | 9,792,540 | 7,410,574 | 17,203,114 | | **2019** | 9,902,468 | 8,289,115 | 18,191,583 | | **2018** | 9,756,870 | 8,315,536 | 18,072,406 | - Total proved reserves decreased **5%** from **18.2 Tcfe** in 2019 to **17.2 Tcfe** in 2020. The decrease was primarily driven by the sale of North Louisiana assets (**828.1 Bcfe**) and a reclassification of **961.1 Bcfe** of PUDs to unproved, offset by reserve additions from drilling[19](index=19&type=chunk)[36](index=36&type=chunk) - As of December 31, 2020, Proved Undeveloped Reserves (PUDs) totaled **7.4 Tcfe**. Changes during the year included the conversion of **1.3 Tcfe** to proved developed, addition of **1.2 Tcfe** from new drilling, and a net negative revision of **675.1 Bcfe**, largely due to reclassifying reserves out of the five-year development plan[49](index=49&type=chunk)[51](index=51&type=chunk) - The pre-tax present value of future net cash flows from proved reserves, discounted at **10%** (PV-10), was **$3.0 billion** at year-end 2020, a significant decrease from **$7.6 billion** at year-end 2019, primarily due to lower commodity prices used in the calculation[50](index=50&type=chunk) [Property Overview](index=11&type=section&id=Property%20Overview) The company's operations are almost exclusively concentrated in the Marcellus Shale, accounting for 95% of 2020 production and 100% of proved reserves - The company's operations are almost exclusively concentrated in the Marcellus Shale in the Appalachian region, which accounted for **95%** of 2020 production and **100%** of year-end proved reserves[51](index=51&type=chunk)[53](index=53&type=chunk)[55](index=55&type=chunk) Marcellus Shale Operating Data | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Total Production (Mmcfe) | 776,786 | 751,299 | | Avg. Sales Price (per mcfe) | $0.67 | $1.33 | | Lease Operating Cost (per mcfe) | $0.10 | $0.11 | - In 2020, the company spent **$368.0 million** in the Appalachian region to drill **52** net development wells, all of which were productive, achieving a **100%** success rate[60](index=60&type=chunk) [Drilling Activity, Acreage, and Wells](index=14&type=section&id=Drilling%20Activity%2C%20Acreage%2C%20and%20Wells) The company maintained a 100% drilling success rate in 2020, with 51.4 net development wells, and held 796,267 net acres and 1,310 net producing wells Drilling Activity (Net Wells) | Year | Development Wells Drilled | Success Ratio | | :--- | :--- | :--- | | **2020** | 51.4 | 100% | | **2019** | 92.6 | 100% | | **2018** | 101.7 | 100% | Acreage Summary (as of Dec 31, 2020) | Type | Gross Acres | Net Acres | | :--- | :--- | :--- | | Developed | 832,634 | 719,966 | | Undeveloped | 85,080 | 76,301 | | **Total** | **917,714** | **796,267** | - As of December 31, 2020, the company had **1,396** gross (**1,310** net) producing wells with an average working interest of **94%**[66](index=66&type=chunk) [Governmental Regulation and Environmental Matters](index=17&type=section&id=Governmental%20Regulation%20and%20Environmental%20Matters) The company's operations are subject to extensive federal, state, and local regulations, particularly concerning hydraulic fracturing and climate change, with potential for increased costs and operational restrictions - The company's operations are subject to extensive federal, state, and local regulations covering leasing, drilling, production, transportation, emissions, waste handling, and hydraulic fracturing[95](index=95&type=chunk)[96](index=96&type=chunk) - Hydraulic fracturing is a critical practice for the company and is primarily regulated at the state level. The company faces risks from potential new federal, state, or local restrictions on this process, which could increase costs or curtail activities[116](index=116&type=chunk)[117](index=117&type=chunk) - The company is exposed to risks related to climate change, including potential regulations to reduce greenhouse gas (GHG) emissions. The EPA has adopted rules for GHG reporting and permitting, and Pennsylvania regulators are pursuing new rules to limit methane emissions from existing sources[122](index=122&type=chunk)[123](index=123&type=chunk)[196](index=196&type=chunk) - Upon taking office in January 2021, President Biden announced initiatives to combat climate change, including rejoining the Paris Agreement and pausing new oil and gas leases on federal land, which could impact the regulatory landscape[124](index=124&type=chunk)[125](index=125&type=chunk) [Risk Factors](index=25&type=section&id=ITEM%201A.%20Risk%20Factors) The company faces significant risks from volatile commodity prices, substantial indebtedness, operational uncertainties, extensive environmental regulations, and a material weakness in internal control over financial reporting related to tax accounting - **Economic Risks:** The volatility of natural gas, NGL, and oil prices is a primary risk, impacting revenues, cash flows, and the economic viability of production. The company's relatively high indebtedness could limit its ability to fund operations and react to market changes[157](index=157&type=chunk)[159](index=159&type=chunk) - **Operational Risks:** Drilling is inherently uncertain and costly. Operations are concentrated in Pennsylvania, making the company vulnerable to regional regulatory, political, and infrastructure constraints. The business depends on third-party pipelines and processing facilities[176](index=176&type=chunk)[183](index=183&type=chunk) - **Industry & Regulatory Risks:** The industry is subject to extensive regulation, particularly concerning environmental matters like hydraulic fracturing, water use, and air emissions. Climate change initiatives and regulations pose significant risks of increased costs and operational restrictions[188](index=188&type=chunk)[217](index=217&type=chunk) - **Financial Reporting Risks:** A material weakness was identified in the company's internal control over financial reporting concerning the accounting for changes in tax law, which could adversely affect the business if not remediated[223](index=223&type=chunk) - **General Risks:** The business is exposed to cybersecurity threats and potential disruptions from events like the COVID-19 pandemic, which has impacted commodity demand and prices[223](index=223&type=chunk) [Unresolved Staff Comments](index=37&type=section&id=ITEM%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[226](index=226&type=chunk) [Legal Proceedings](index=37&type=section&id=ITEM%203.%20Legal%20Proceedings) The company is involved in various legal actions, including an environmental proceeding with the PDEP regarding a well in Lycoming County, which could result in monetary sanctions exceeding $250,000 - The company is party to various legal actions and claims typical for its business. Management does not believe any pending matters will have a material adverse effect on its financial position[227](index=227&type=chunk)[228](index=228&type=chunk) - A subsidiary was notified by the PDEP regarding alleged methane escape from a well in Lycoming County. The company is appealing a January 2020 order and disputes the allegations, but a resolution could result in monetary sanctions over **$250,000**[229](index=229&type=chunk) [Mine Safety Disclosures](index=38&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[230](index=230&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=39&type=section&id=ITEM%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Range Resources' common stock trades on the NYSE under 'RRC', with the quarterly dividend suspended in January 2020, and the company repurchased 10.0 million shares for $30.0 million under its $100 million program - The company's common stock is listed on the New York Stock Exchange under the symbol "RRC"[233](index=233&type=chunk) - In January 2020, the board of directors suspended the dividend on common stock[235](index=235&type=chunk) - As of December 31, 2020, the company had repurchased **10.0 million** shares for approximately **$30.0 million** under its **$100 million** stock repurchase program, with about **$70.1 million** remaining available[237](index=237&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=ITEM%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2020, Range Resources focused on portfolio simplification and balance sheet strengthening, highlighted by the $245 million sale of its North Louisiana assets, resulting in a net loss of $711.8 million and reduced operating cash flow - Key highlights for 2020 include simplifying the portfolio through the sale of North Louisiana assets for **$245.0 million** and strengthening the balance sheet by refinancing approximately **$1.2 billion** in debt maturities[246](index=246&type=chunk)[248](index=248&type=chunk) - The company recorded a net loss of **$711.8 million** in 2020, compared to a net loss of **$1.7 billion** in 2019. The improvement was primarily due to significantly lower impairment charges on proved and unproved properties[257](index=257&type=chunk) - Cash flow from operating activities decreased to **$268.7 million** in 2020 from **$681.8 million** in 2019, reflecting significantly lower realized commodity prices and slightly lower production volumes[260](index=260&type=chunk)[297](index=297&type=chunk) [Results of Operations](index=44&type=section&id=Results%20of%20Operations) In 2020, total sales decreased to $1.61 billion due to lower production and a 27% drop in realized prices, while impairment charges significantly decreased Production and Sales Summary | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Total Production (Mmcfe) | 816,456 | 833,354 | | Avg. Daily Production (Mcfe) | 2,230,753 | 2,283,162 | | Total Sales | $1,607.7 million | $2,255.4 million | Average Realized Prices (per unit) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Natural Gas (per mcf) | $1.64 | $2.40 | | NGLs (per bbl) | $15.43 | $17.53 | | Crude Oil (per bbl) | $30.22 | $50.26 | | **Total (per mcfe, incl. all costs & derivatives)** | **$1.03** | **$1.49** | Key Expenses (per mcfe) | Expense Category | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | Direct Operating | $0.11 | $0.16 | (31%) | | G&A | $0.20 | $0.22 | (9%) | | DD&A | $0.48 | $0.66 | (27%) | - Exit and termination costs were **$547.4 million** in 2020, primarily due to a **$479.8 million** obligation recorded for retained midstream commitments following the sale of North Louisiana assets[290](index=290&type=chunk) - Impairment of proved properties was **$79.0 million** in 2020, a significant decrease from **$1.1 billion** in 2019, which was mainly related to the North Louisiana assets that were subsequently sold[293](index=293&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) Cash flow from operations decreased significantly in 2020, but the company maintained $1.4 billion in available borrowing capacity and further enhanced liquidity by issuing new senior notes in January 2021 Cash Flow Summary (in thousands) | Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $268,680 | $681,843 | | Net Cash (Used in) from Investing Activities | $(184,082) | $39,478 | | Net Cash Used in Financing Activities | $(84,686) | $(721,320) | - As of December 31, 2020, the company had a bank credit facility with a **$3.0 billion** borrowing base and **$2.4 billion** in lender commitments. Available borrowing capacity was **$1.4 billion**[304](index=304&type=chunk)[305](index=305&type=chunk) - In January 2021, the company issued **$600.0 million** of new senior notes due 2029, using the proceeds to reduce the balance on its bank credit facility, further enhancing liquidity[302](index=302&type=chunk)[494](index=494&type=chunk) Capitalization Summary (in thousands) | Metric | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Total Debt | $3,085,607 | $3,172,937 | | Stockholders' Equity | $1,637,535 | $2,347,488 | | **Total Capitalization** | **$4,723,142** | **$5,520,425** | | Debt to Capitalization Ratio | 65.3% | 57.5% | [Critical Accounting Estimates](index=61&type=section&id=Critical%20Accounting%20Estimates) The company's financial statements rely on several critical accounting estimates, including net reserves, fair value estimates, impairment assessments, asset retirement obligations, and income taxes, all requiring significant management judgment - The company's financial statements rely on several critical accounting estimates that require significant management judgment[327](index=327&type=chunk) - **Net Reserves:** Estimation of proved reserves is subjective and impacts depletion calculations and impairment tests. Independent consultants audited **97%** of 2020 reserves[328](index=328&type=chunk)[329](index=329&type=chunk) - **Fair Value Estimates:** Used for derivative instruments, impairment assessments, and retained liabilities. These often rely on Level 2 and Level 3 inputs, including forecasts of commodity prices and production[332](index=332&type=chunk) - **Impairment Assessments:** Long-lived assets are tested for impairment when indicators are present. This involves comparing carrying value to undiscounted future cash flows, which requires significant assumptions about prices, costs, and reserves[337](index=337&type=chunk) - **Asset Retirement Obligations (ARO):** Estimating future plugging and abandonment costs is difficult due to long time horizons and changing technologies and regulations[343](index=343&type=chunk) - **Income Taxes:** Realization of deferred tax assets depends on projections of future taxable income, which is inherently uncertain[345](index=345&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=67&type=section&id=ITEM%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is primarily exposed to market risks from commodity price volatility and interest rate changes, managing these through derivative instruments and maintaining a largely fixed-rate debt profile - The company's primary market risks are related to the volatility of natural gas, NGLs, and oil prices, as well as changes in interest rates[356](index=356&type=chunk)[357](index=357&type=chunk) - To manage commodity price risk, the company uses derivative contracts. At December 31, 2020, the fair value of its commodity derivative program was a net liability of **$18.0 million**[361](index=361&type=chunk) - The company is exposed to interest rate risk on its variable-rate bank debt. At December 31, 2020, **$702.0 million** of its **$3.1 billion** total debt was subject to floating rates. A **1%** increase in short-term rates would increase annual interest expense by approximately **$7.0 million**[324](index=324&type=chunk)[368](index=368&type=chunk) Commodity Derivative Sensitivity Analysis (as of Dec 31, 2020) | Instrument | Fair Value (in thousands) | Hypothetical Change in Fair Value (10% Price Increase) | | :--- | :--- | :--- | | Swaps | $6,642 | $(66,854) | | Collars | $3,529 | $(20,466) | | Three-way collars | $(17,818) | $(17,369) | [Financial Statements and Supplementary Data](index=72&type=section&id=ITEM%208.%20Financial%20Statements%20and%20Supplementary%20Data) The 2020 consolidated financial statements were audited by Ernst & Young LLP, with both management and the auditor concluding internal controls were ineffective due to a material weakness in tax accounting, leading to a correction of a prior error - Management concluded that as of December 31, 2020, the company's internal control over financial reporting was not effective due to a material weakness. The weakness was a failure to design and maintain effective controls over the accounting for changes in tax law, specifically related to the CARES Act[376](index=376&type=chunk)[377](index=377&type=chunk)[379](index=379&type=chunk) - The independent registered public accounting firm, Ernst & Young LLP, also issued an adverse opinion on the company's internal control over financial reporting as of December 31, 2020, due to the identified material weakness[384](index=384&type=chunk)[385](index=385&type=chunk) - The financial statements include a correction of an error in previously reported 2020 interim financial statements related to the misstatement of deferred income taxes[424](index=424&type=chunk)[570](index=570&type=chunk) [Notes to Consolidated Financial Statements](index=83&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail 2020 asset dispositions, including the $245 million North Louisiana sale, $3.1 billion total debt with active refinancing, $18.0 million net derivative liability, $547.4 million in exit costs, and a decrease in proved reserves to 17.2 Tcfe - **Note 4 (Dispositions):** In 2020, the company sold its North Louisiana assets for **$245.0 million** in cash plus contingent consideration, resulting in a pre-tax loss of **$9.5 million**. It also sold shallow legacy assets in Northwest Pennsylvania for a pre-tax gain of **$122.5 million**, primarily due to the elimination of the associated asset retirement obligation[473](index=473&type=chunk)[474](index=474&type=chunk) - **Note 8 (Indebtedness):** As of Dec 31, 2020, total debt was **$3.1 billion**. The company actively managed its debt profile by issuing **$850 million** of **9.25%** senior notes due 2026 and repurchasing over **$1.1 billion** of nearer-term notes[488](index=488&type=chunk)[492](index=492&type=chunk)[495](index=495&type=chunk)[496](index=496&type=chunk) - **Note 10 (Derivative Activities):** The company uses swaps, collars, and other derivatives to manage commodity price risk. As of Dec 31, 2020, the fair value of these instruments was a net liability of **$18.0 million**[506](index=506&type=chunk) - **Note 16 (Exit and Termination Costs):** The company recorded **$547.4 million** in exit and termination costs in 2020, including a **$479.8 million** liability for retained midstream obligations from the North Louisiana divestiture[566](index=566&type=chunk)[568](index=568&type=chunk) - **Note 19 (Supplemental Oil & Gas Information):** Proved reserves decreased from **18.2 Tcfe** at year-end 2019 to **17.2 Tcfe** at year-end 2020. The standardized measure of discounted future net cash flows decreased from **$6.6 billion** to **$2.8 billion** over the same period, primarily due to lower commodity prices[582](index=582&type=chunk)[592](index=592&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=120&type=section&id=ITEM%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[595](index=595&type=chunk) [Controls and Procedures](index=120&type=section&id=ITEM%209A.%20Controls%20and%20Procedures) Due to a material weakness in internal control over financial reporting related to tax accounting, management concluded that the company's disclosure controls and procedures were not effective as of December 31, 2020 - Management concluded that due to the material weakness in internal control over financial reporting, the company's disclosure controls and procedures were not effective as of December 31, 2020[596](index=596&type=chunk) - Other than the identification of the material weakness, there were no changes in internal control over financial reporting during the fourth quarter of 2020 that materially affected, or are reasonably likely to materially affect, internal controls[597](index=597&type=chunk) [Other Information](index=120&type=section&id=ITEM%209B.%20Other%20Information) The company reports no other information for this item - None[599](index=599&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=121&type=section&id=ITEM%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's 2021 Proxy Statement, which includes its Code of Ethics - Information required for this item is incorporated by reference from the company's Proxy Statement for the 2021 Annual Meeting of Stockholders[602](index=602&type=chunk) - The company has adopted a Code of Ethics, which is available on its website[604](index=604&type=chunk) [Executive Compensation](index=121&type=section&id=ITEM%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's 2021 Proxy Statement - Information required for this item is incorporated by reference from the company's Proxy Statement for the 2021 Annual Meeting of Stockholders[605](index=605&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=121&type=section&id=ITEM%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the company's 2021 Proxy Statement - Information required for this item is incorporated by reference from the company's Proxy Statement for the 2021 Annual Meeting of Stockholders[606](index=606&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=121&type=section&id=ITEM%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's 2021 Proxy Statement - Information required for this item is incorporated by reference from the company's Proxy Statement for the 2021 Annual Meeting of Stockholders[607](index=607&type=chunk) [Principal Accountant Fees and Services](index=121&type=section&id=ITEM%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's 2021 Proxy Statement - Information required for this item is incorporated by reference from the company's Proxy Statement for the 2021 Annual Meeting of Stockholders[608](index=608&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=122&type=section&id=ITEM%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, financial statement schedules, and exhibits filed as part of the Form 10-K report, including credit agreements, indentures, and certifications - This item lists all financial statements and exhibits filed with the Form 10-K, including consents from the independent registered public accounting firm and independent petroleum consultants[611](index=611&type=chunk)

Range Resources Corporation (NYSE:RRC) Q3 2020 Earnings Conference Call October 30, 2020 9:00 AM ET Company Participants Laith Sando - Vice President, Investor Relations Jeff Ventura - Chief Executive Officer Dennis Degner - Chief Operating Officer Mark Scucchi - Chief Financial Officer Alan Engberg - Vice President, Liquids Marketing Conference Call Participants Josh Silverstein - Wolfe Research Holly Stewart - Scotia Howard Weil Neal Dingmann - Truist Securities Brad Heffern - RBC Capital Markets Operator ...

Company Overview - Range Resources is a Top 10 U S Natural Gas Producer and a Top 5 U S NGL Producer & Leader in NGL Exports[6] - The company pioneered Marcellus Shale in 2004 and has the lowest corporate breakeven price in Southwest Appalachia[6] - Range Resources has approximately 0.5 million net acres providing decades of low-risk drilling inventory[8] Financial Performance and Strategy - Range Resources executed over $1.35 billion in asset sales since the second half of 2018[11] - The company's cash unit costs in 3Q20 of $1.84/mcfe improved $0.34, or ~16% since the end of 2018[12] - The all-in capital budget was reduced to $415 million or less for 2020[13] Operational Efficiency and Environmental Practices - Range Resources is targeting net zero emissions by 2025[9] - The company's 2019 D&C Capex was ~$292 per Mcfepd versus an Appalachia peer average of ~$400 per Mcfepd[11] - Range Resources has the lowest well costs in Appalachia at <$600 per foot, including all facilities costs[11] Reserves and Inventory - Proved Reserves of 18.2 Tcfe at YE2019 with an SEC PV-10 of over $17 per share, net of debt[8] - The company estimates ~2,000 undrilled locations remain with EURs greater than 2.0 Bcfe per 1,000 foot of lateral[41]

Range Resources Corporation (NYSE:RRC) Q2 2020 Earnings Conference Call August 4, 2020 9:00 AM ET Â Company Representatives Jeff Ventura - Chief Executive Officer Mark Scucchi - Chief Financial Officer Dennis Degner - Chief Operating Officer Laith Sando - Vice President, Investor Relations Conference Call Participants Josh Silverstein - Wolfe Research Jeffrey Campbell - Tuohy Brothers Kashy Harrison - Simmons Energy Brad Heffern - RBC Capital Markets Operator Welcome to the Range Resources, Second Quarter 2 ...