RANGE RESOURCES CORP Q1 FY2025 earnings call

• Range executed plans safely, delivering consistent well results and free cash flow with steady activity levels.
• Low capital intensity anchored by class-leading drilling and completion costs, shallow base decline, large core inventory, and talented team.
• Production in Q1 aided by strong well performance and resilient field runtime despite winter weather.
• Expected production to be slightly down in Q2 due to scheduled processing maintenance, then increase in H2.
• Drilling set a new record averaging 5,961 feet per day with 98% geosteered landing target window compliance.
• Completions electric fleet improved, with increased average stages per day.
• Secured two-year contract extension for electric frac fleet for cost stability.
• Collaborating on natural gas supply to power generation facilities in PA, leveraging in-basin demand potential.

In the first quarter, Range Resources had all-in capital of $147 million for production of 2.2 Bcf equivalent per day. Lease operating expense finished at $0.13 per Mcfe. Marketing benefited from strong export demand, with a record 41 million barrel draw in propane inventory and improved natural gas inventories in the U.S. ending the season 4.3% below the five-year average and nearly 22% below last year.

• Production expected slightly down in Q2 due to maintenance, then increase in H2, in line with previous guidance.
• Completion spending to step up over next two quarters driving H2 production.
• On track to exit 2025 with approximately 400,000 lateral feet of surplus inventory.
• 2025 capital guidance maintained with two rigs and one completion crew program.

• Geopolitical impacts on LPG trade and tariffs affecting pricing and market dynamics.
• Regulatory risks related to infrastructure approvals for in-basin projects.
• Market volatility potentially impacting commodity prices and service costs.

Q: Just wondering if you could expand on some of the drivers to reallocate the handful of wells between the target areas for this year.

A: As we look at our program, there's a small level of dynamics in operational cadence throughout the year, with efficiencies and timing of events shifting wells, including a liquid-rich till moving to execute over the balance of the year and into 2026.

Q: Was hoping you could expand on how the geopolitical news, the tariffs, the reciprocal tariffs are being baked into some of your macro views.

A: Our business is resilient with quality asset base. Tariffs on LPG side, we see demand remaining strong and market redistributing barrels. Our premium on NGLs was strong in Q1 and expected to continue.

Q: One for you and one for Mark if I may. Dennis, my one for you is I guess you were recently in the field with Doug Burgum and it's kind of a regional macro question.

A: On basis, seen benefits of takeaway, in-basin demand announcements like Homer City are encouraging, with projects like Liberty having scalable supply potential.

Q: Maybe your last comment there on Homer City, if you could kind of expand on what exactly are we looking at their timing, expansion possibilities over time.

A: Homer City project is early, targeting a couple of years out (2027), utilizing brownfield facility, with supply to materialize further.

Q: My question is on M&A. There was a little bit of M&A recently in Central PA not too far from your footprint.

A: View on M&A is rooted in quality and duration of inventory; high bar for M&A with focus on additive, high-quality opportunities.

Q: This question is on the near-term gas macro. So we're noticing that hub pricing has definitely declined over the last several weeks.

A: Fundamentals still intact with activity levels, LNG off-take ramp, and storage levels setting up tightness in fall, aligning with emerging demand.

Q: I wanted to ask a little bit more on the in-basin demand and data centers. Dennis, you mentioned with Homer City that getting repurposed, that there'd be some infrastructure needed to I guess get gas there.

A: Infrastructure needed is short regional gathering jumper lines near brownfield locations, with proximity to producing assets beneficial.

Q: Just a quick one, just digging down a bit more on the hedging strategy and how do you think about the way you're going to approach 2026.

A: Philosophically, scale back hedging, around 35% hedged for 2025, 15% for 2026, preserving optionality and balance sheet.

Q: Good morning, gents. Thanks for the time today. I just wanted to revisit some of the strategy, as you all think about the build-out of in-basin demand.

A: Range has optionality with transport, can strategically manage gas allocation between in-basin and out-basin based on future growth and demand projections.