Financial Data and Key Metrics Changes - Total capital expenditures for the quarter were $190 million, with year-to-date investments reaching $491 million, aligning with the full-year guidance of $650 to $680 million [5][16] - Average realized price for natural gas was $3.59 per unit, a $0.20 premium over the NYMEX average of $3.39 [16][17] - Year-to-date share repurchases totaled $177 million, with dividends paid amounting to nearly $65 million, and net debt reduced by $175 million since year-end [17][19] Business Line Data and Key Metrics Changes - Production for the quarter was 2.2 Bcfe per day, with expectations to increase to approximately 2.3 Bcfe per day in Q4 and 2.6 Bcfe per day by 2027, representing a 20% increase from current levels [6][8] - The company completed just over 1,000 frac stages during the quarter, achieving completion efficiencies of nearly 10 frac stages per day [9][10] - Cash operating expenses were reported at $0.11 per Mcfe, consistent with previous guidance [9] Market Data and Key Metrics Changes - The U.S. exported record volumes of LNG in Q3, with new LNG projects reaching FID, contributing to a total of approximately 9 Bcf per day of incremental feed gas demand [10][11] - The demand for NGLs, particularly ethane and propane, is expected to see substantial increases in export capacity, with strong international demand anticipated [13][14] Company Strategy and Development Direction - The company plans to maintain a low reinvestment rate while generating significant free cash flow, allowing for capital returns to shareholders [8][15] - Range Resources aims to leverage its high-quality inventory and operational efficiencies to meet increasing demand in the Midwest, Gulf Coast, and global LNG markets [7][12] - The company is focused on expanding infrastructure from Appalachia to support long-term energy needs [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate significant free cash flow through cycles, supported by a strong balance sheet and operational efficiencies [19][20] - The management highlighted the importance of infrastructure utilization and operational efficiencies as key drivers for future performance [38][39] Other Important Information - The company is actively engaged in discussions for long-term supply agreements, focusing on both in-state and potential out-of-state opportunities [50][51] - The management noted that the current credit rating has not hindered discussions with customers regarding long-term agreements [75][81] Q&A Session Summary Question: Can you provide insights on the work in progress inventory and its expected status by the end of 2026? - Management indicated that the capital allocation for 2026 will focus more on completing the DUC inventory, with a linear utilization trend expected [26][29] Question: What are the expectations for operational efficiencies and capital expenditures in 2026? - Management expects to maintain low cash operating expenses and continue improving efficiencies through returning to pad sites and utilizing existing infrastructure [32][33] Question: What is the outlook for NGL demand and pricing? - Management expressed optimism regarding NGL demand growth, particularly for propane and ethane, driven by increasing export capacity and international demand [40][42] Question: What is the status of supply agreements and potential expansions outside Pennsylvania? - Management confirmed ongoing discussions with potential end users, focusing primarily on Pennsylvania but open to opportunities outside the state [50][53] Question: How does the company view curtailments and production modulation in response to pricing volatility? - Management stated that they have historically utilized curtailments when pricing warranted, but have focused on shaping production to align with market conditions [92][96]

Financial Data and Key Metrics Changes - The company achieved record quarterly revenue of $359 million, which is $13 million higher than the previous year [12][23] - Adjusted EBITDA reached $49 million, representing a 14% margin, which is 6.5% better compared to the same quarter last year [11][12] - Adjusted free cash flow for the quarter was $19 million, a decrease of $35 million year-over-year primarily due to a tax carryforward benefit in 2024 [14][23] - The company ended the quarter with $131 million in cash and reduced debt by approximately $5 million over the last year [29] Business Line Data and Key Metrics Changes - The company sold 2,295 buses in Q2, with EV sales reaching a record of 265 units, which is 26% higher than last year [12][25] - Parts sales totaled $26 million in Q2, flat compared to Q1 but a small reduction of $2 million compared to the prior year [25] - The average selling price for buses increased by approximately 3%, from $141,000 to $145,000 per unit [15][25] Market Data and Key Metrics Changes - The company ended the quarter with a backlog of nearly 5,000 units, representing over six months of production [8][14] - The mix of alternative power vehicles represented 57% of unit sales in Q2, significantly higher than the typical 10% to 15% mix for major competitors [15] Company Strategy and Development Direction - The company is focused on improving operational efficiency and investing in new product development, including a new commercial chassis scheduled to launch in 2026 [20][41] - The company aims to maintain its leadership position in the alternative power segment while also strengthening its core internal combustion engine (ICE) business [10][13] - The company is navigating tariff impacts by implementing price increases and prioritizing ICE buses over EVs until the tariff situation stabilizes [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining full-year guidance despite tariff challenges, highlighting strong market demand for school buses [6][19] - The company anticipates continued strong demand for EVs, with a forecast of 800 to 1,000 EV unit sales for the full year [16][36] - Management noted that the Clean School Bus program remains a bipartisan initiative, which is expected to continue benefiting the company [48] Other Important Information - The company has executed $40 million in share repurchases over the last nine months, with an additional $20 million remaining in the current program [29] - The company is optimistic about the future of the Clean School Bus program, with funding for rounds two and three flowing to customers [17][39] Q&A Session Summary Question: Margin improvements and long-term targets - Management indicated it is early in the new CEO's tenure to speculate on margin improvements, but operational expertise may contribute positively [53][54] Question: EV pricing expectations - Current tariffs are hindering the company's ability to reduce EV prices as planned, but there is optimism for future price reductions once the tariff situation clarifies [58][59] Question: Dealer network response to pricing - The company has not faced significant pushback from dealers regarding price increases, and competitors are also implementing similar pricing actions [69][73] Question: Clean School Bus program funding - Management confirmed that rounds two and three of funding are flowing, and there is optimism for round four, although it is still in the early stages [75][106]