Range Resources (RRC) 28 Feb 232022 Q4 Earnings call transcript

Welcome to the Range Resources, Fourth Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. 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. After the speakers' remarks, there will be a question-and-answer period.

would turn I to call time, Mr. this like the to over At President, Range Relations Sando, Investor Laith Vice at Resources. Please go ahead.

Thank earnings on everyone, Range's Ventura, Chief you, and thank Mark Officer; Dennis Financial Officer; you morning, operator. Degner, Scucchi, for Chief Chief Executive year call. call today's end speakers The are Jeff Officer. and Good Operating joining

on our Hopefully the of presentation that investor release and you've updated certain morning. had a this reference posted call chance website. on to those may review slides the press We we've

find will under system. You the access on the Investors our EDGAR also XX-K it Range's tab SEC's can website or you using

Please note, call. we'll today's referencing be measures on non-GAAP certain

release figures. press most reconciliations the to comparable Our GAAP of provides these

in measures. of other the margins and For cash calculation on information, additional posted assist supplemental EBITDAX, non-GAAP we've tables to our website

that, turn me Jeff. call to over let With the

us Thanks this for on morning's call. Laith everyone and thanks joining

We've of the key more past than While operations have front over wavered any resilient month the consistent. steady natural doubt history. gas months, in business point is Range’s no at and our have made progress couple company's today prices remained objectives on

plans free Range and efficiencies, our great successfully managed operational natural peer returned shareholders. the markets with financial us cash significant record flow, XXXX and with. materially delivered we position our opportunity generated presented leading We to In gas a safely strengthened capital

reduced debt annualized over $X per by an Xth of $X.XX we billion debt and year $XXX reduction, repurchased At share. had the million year of of end our consecutive in dividend the established marking shares

per market looking program peers. basis our higher. gas have hedging Mcf moved gas fit-for-purpose to year Ranger's much a been than XXXX the of a of in back EMP preferred program. the deliberate unhedged have hedge at upside of any natural every when captured upside on last gas our natural Ultimately, retained presented natural as to us more results, We the Company would with But

in is for but hedge gas and the our again XXXX XXXX, into a forward program different is natural market Looking positioned once place, success.

picking at the and durable program while free aimed Our gas is hedging flow term through retaining at exposure but longer our tops NGL fundamentals. bottoms, cycles and not activity aimed supporting to improving natural is cash

for I struck our quite years, XXXX projections believe and two we've at well. that results the next balance Looking

today business breakevens lower believe differentiator business environment, a to low our for in cash $X like free Our positive generates Range. best in very the ourselves and resilience The flow annual per well prices, a industry, XXXX, price has in down we is the for among Range we Mcf. below that has find

our fixed is Having model hedges run the but place in sustaining Range’s long really capital requirements. business it, by part as to commitments cover underpinned over cost capital the and of

low coupled shallow capital drilling decline core large are our requirements blocky inventory. of class and Our with completion Range’s leading the relatively costs, and result base

in approximately per these This shareholders. all-in solid cash Altogether, Mcfe. flow free result generating consistently peer a provides returns to $X.XX leading and maintenance significant foundation that a is for Range

liquid our of is durability cycles, today's and Range’s are gas prices has for and revenue Through condensate Further meaningful. our bolstering NGLs an uplift production. is that natural approximately production. pricing XX% Range’s to XXXX; provided uplift liquids strip the using

current would XXXX. for NGL’s Range’s pricing $X.XX context, currently priced $XX Henry using per a the prices strip pricing or equivalent barrel, per Mcf for XX% Hub be For That around strip to XXXX. to is premium

producers natural our durable leading maintenance in roll that low lowest breakeven free capital, cash you in in hedge all amongst liquids together, gas optionality, we get flow most the of the XXXX. program our When our

natural cash gas hundred several flow $X.XX in is show Range we million at our slides, free As generating prices. still in

value of core efficiencies and low of in inventory. that Range’s inventory of provides reserves. be massive large of because blocky Importantly, acreage this us position the can decades end breakevens our leading our sustainable, A found are year portion

is, our is where current approximately of $X PVXX strip of share the XX-year over which reserves than XX% after-tax price. $XX NYMEX, to debt, per equates Range’s over The higher using share net

of For resource our the share undeveloped holders locations today's availability XXX create in core buyback in value X,XXX $X.X term do significant added our Range wells reserve report undrilled program, proved equity to long the includes per is in which presenting Marcellus. through we for currently market, our Simply developed context, reflected the value approximately believe out not only put, of opportunity we has locations meaningful, billion remaining. have

reduce Today target we to towards debt our that been years in and of of of of repositioning balance a by of time It's are to returns the As the spring $X a end within a period than by the XX% short shareholders we more XXXX for successful billion reminder, set clears XXXX. of meaningful the sheet ahead. the a capital path in way target.

reiterate is in last I've Range on what calls. Before the the company's Mark turning I'll Dennis, best in to said many history. over it position the and

the power As reliable of lives, continues be gas towards helping billions also their while and our NGLs affordable, others fuels, everyday efficient will living. and supply improve more abundant of natural move to world standard the cleaner, that help

will positioned intensity Range that efficiency, within way the Appalachia And to among believe are natural and shareholders. Appalachia, to emissions value sustainable all leading gas We which future gas meet transparency, natural be for long those term core capital generating are and on liquids demand.

massive that Marcellus, inventory translated derisked measured through wells cycles. decades capable quality free in high a of in and of flow a the business generating cash into has Range the

returns to and fundamentals returns Range for plan and on capital to With natural shareholders. is gas positioned liquids, gas term of generate the long well favorable resilient healthy XXXX natural for and business and XXXX

over to to Dennis operations. I'll now it turn cover

program. our in plans. year This XXXX our our fourth were Jeff. million capital Thanks, to in nine with able equipment in advance secure holes $XX CapEx top quarter added $XXX additional to as I'll capital. All Included start million. in activity totaled the December drilling of were for we original

achieved per loss fourth quarter January equivalent equivalent during equivalent cumulative Bcf This despite for a an X.X Bcf December. the and in day, experienced Bcf just of weather Appalachia average well X.XX Production annual being cold the into resulting the in X.X turn-in-lines few moved production was late averaged production a day daily above year. per for

three will two-thirds be sales super the remainder rich into of year. towards we XXXX, positions wet capital this the our look all-in Range’s As including With $XXX versus this is acreage be last liquids in Approximately spending footage northeast in with activity forward expected to more rich turned year lateral PA. and footprint, acreage in dry wells gas million $XXX weighted and the million. between year's to our

year records a the year, per The X.XX start, being is to team’s footage X.XX setting off lateral delivers daily day, last in touch an as production expected just plan are I Bcf similar by level our underpinned on late successes adding XXXX, This drilling added they in to a inventory incredible inventory at so while at will XXXX, to and incremental in Bcf end. that far footage equivalent moment.

and support is and lateral functions. As activity, result increased million with slated related we director capital as $XX XX% drilling of the year's allocated a capital remaining towards providing our this XXXX this about Approximately our think optionality balance plan operational completions to be inventory, plans. towards XXXX XXXX approximately leasing associated and with us includes with

turning end, three wells rigs horizontal to years, completions front-end utilize loaded, planned crew tapering drilled, is year with wells to frac will prior during the with electric second a be XXXX expected the to XX while work. XX by with crew Similar off horizontal program a year. performing continuously single spot are sales

with during sales horizontal production, approximately to be links turned prior pads XX,XXX than year average the Our for developed completed similar years. to wells per With the half on well. and feet wells of more existing will

forward expected back the half curve. the of which similar XXXX, the is shape fits be natural production nicely Our to in current weighted year, with last to gas

with A the fourth our In the highlights of top holes XX,XXX with quarter approximately review horizontals, XXXX of length an begins horizontal drilled drilled XX for operational and we average five feet. quarter drilling.

list, XXXX, in this after team's year far feet set day beat record to at four new feet record XX% each that X,XXX X,XXX XX so in again X,XXX these a also XX,XXX then excess the four laterals continued feet. day with single has of efficiencies part into the results by wells. versus where This in a of in and in the of showing a represent to a the single the wells improve over drilling of drilled we continued These followed. record, Range As increase new top that long excess days drilling results, our team success lateral added prior efforts

with pads top position production. with were existing the and our in pads, the quarter on fourth flexibility practice contiguous large afforded the to returning of of acreage Continuing drilled holes XX% by existing

Southwest In with wells displaced the of of $X XXX,XXX The from addition PA were fuel in more pads, diesel successfully while operations. our nearly dual gallons drilled XXXX million, which gains to efficiency to in improving fuel. to XX% the fuel equated than returning savings by emissions rigs, drilled

lateral versus long XX% costs fourth improvement was As quarter which of lateral our drilling $XXX approximately result development, foot, a were per quarter. the a prior

the side, quarter X,XXX fracs year. and completion per for we day over in completed the total stages fourth reached fracs On X.X the

continue completion back several improve while records. efficiencies new XXXX, to Looking on setting

The record for given quarter. involved stages day frac per a nine averaging first new

the averaging and completed period; XX One year. pads, full driven in third; area return stages these improvements a hour completion each enhancing for stages Second, data new consecutive X.X efficiency benchmark frac is the of existing day to frac trips a our decisions per job. XX driving and

by equipment cost the strategic completions, overall our first our seen leadership returning peers use surface increase on amongst development. operations with pads planning has utilizing the and logistical from per stages example, has data capital versus to of wave XX% supported coupled records existing efficiency. continued recent average For well day of frac and and prior Applying

million. full Water savings million logistics water resulted fourth total a $XX.X efforts with teams reaching saving in Range’s the quarter, and our for operations recycling of year for $X.X

and even Looking underpin $XX.X the demonstrating per million, the three year, back year again farther savings back average looking is the is five on average savings components year that operations. XXXX, per once in Range’s to $XX.X years, repeatable past million the

In production within provider, and Working is production artificial to pilot our automated a enhanced in to year intelligence well make addition role flow in of tested changes monitor playing use created our parameters algorithm downtime. to AI base This our technology past procedures, logic the our Range new production standard reduced production technology and operations. our production management. conjunction that with was in an

support was addition This potential may trial add will with appear results year, of our project production last to small of the optimization the our and it technology based is and type versus base continued team's for this The of further that and year. the low our approximately this but production completed use be total production on growth expanded upon demonstrates focus year decline to the Bcf the returns. X improve project production,

in to our versus program a addition while similar our our was percent performance days efforts history. employees operational Range best In reduction making for safety our record for saw highlights, reaching XXXX. with or collaborative Through restricted and last advancements away it our in contractors, Range rate low duty, a performance XX% our year, program incident OSHA achieved safety and in

Shifting mentioned over NGL differential earnings on per showing for which the call. Mont improvement Range’s barrel $XX.XX price barrel, to marketing, per $X.XX prior Belvieu was QX pre-hedged equivalent, below our approximately was the

XXX,XXX ethane announced ethane begun full estimated of an barrels ethylene cracker that representing significant its Pennsylvania Chemical Shale November, In facility includes consume project. in ramps had per to production, a day basin increase it will The when demand. steam at operations an that

we've the pleased and flexibility the pricing markets I'm customers seasons, to of designed prior logistics provide deliveries the phases with cycle. NGL NGL that improved to and Range versus program to is stated Range’s team previously, uninterrupted made across As quarter. report marketing business our

export half is economics from first XXXX. of Looking to benefit ahead, Range NGL improving the poised in

As premium proceeds, exports stabilize index. to rates command Marcus continue freight terminal a ocean the versus reopening the China's via and Belvieu price Hook Mont

and differential Mont XXXX below $X barrel. relative between equivalent guide at for is year, Looking to $X Range’s this our premium Belvieu NGL

differential expected our of full $X.XX guidance. which For low natural end below year NYMEX than for beat the of Range reported gas, a better XXXX,

to program As guidance to quarter seen year, hedging and the NYMEX. daily natural differential over basis guidance markets. fourth of to several $X.XX our marketing last some helped Range in swings and mitigate Range’s XXXX years, natural the the our in gas below numbers gas at start setting the past experienced Similar of is process at active $X.XX

on hard marketing wrap our to to we'll we safe, update, and work As the improvements. and our operations their achieve accomplishments commitment ahead. look delivering dedication and year up to exciting for We in team your I'd to like our Thanks forward discussed for efficient our congratulate continued their things the today operations.

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

Thanks, Dennis.

a defined of call the alongside discuss spoke return and the of a On program. debt we priority capital We earnings year. levels year target transformational of reduction ago, a debt

how XXXX, results for speak compared our or results year in the a the in It we So do and Resources met believe nearly to exceeded state stated objective. actions themselves I objectives. respect. Range was for every that record

led efficient levels. planned to production operations Safe,

cash levels on-plan sold Our a realized cash net reduce strategically constant a common debt, pricing dividend. of was That and yielded production sales stock portfolio flow through and focus flow to repurchase translate into on A income. diverse strong helped prices. record costs reinitiate points cash strong to deployed

the enhanced thrive strong commodity company executed summary, resilience returns and ago, communicated on cash so generating flow. cycles, year the can business free of and goals we price the plan throughout In the a exceeded

of sheet. balance with Let's discussion start a the

Range reduction debt-to-EBITDAX the expected $X.X approximately savings billion. combined stood a at end, expense This approximately debt to annualized debt billion. reduces million, current refinancing approximately reduced. by as last with further since total history. additional is Debt timely at with January reduced Leverage interest XXXX of year in reduction, $XX debt X.Xx XXXX $X.X brings company by lowest During in year

share has in debt Equity program, and programs, as return XX%. XX million $XXX share by as of Range reducing common equity. or $XXX stock, including value In capital our from initiating repurchases reduction, Since share million nearly holders count XXXX in million cash gained the through shares repurchased dividends. Range repurchase repurchase well

the at Additionally, an an $X.XX share, midyear rate of the reinitiated year. to dividend returning annualized sustainable per $XX shareholders during million was second of additional the half

we billion business. in shares stakeholders quarter XXXX capital share roughly billion was more $X.X ample current in existing the repurchase one remaining flow cap. $X.X With capacity of market of under total, reinvest the to to have program, In according free alone returned than prudently to cash

As a debt, to net which stated strip reach improving our based reminder, in coming to have sheet billion target potential $X on balance pricing. within our the to recent billion priority range of months remains we further $X.X a

we by balance team flow production per our and team The As and Driving a free evidenced delivered deploy in have to incremental debt capital efficiency. cost was of cash tireless improvement focused operating as actions production. planned competitive shareholder at latitude sheet unit safety the declines, $X.XX returns XXXX. on all-in of

as less in terms out near to reinvested per per required the flow or cash at maintain of reinvestment terms of all cash maintenance the profile, dividing industry. efficiency When of Mcfe, expenditures companies, profile. stands offers capital cost measuring XX% as or best Range At Mcfe on was comparable of a well dollars and equal. total relative capital Not perhaps production in lowest Range’s efficiency cost rate perspective by and invested good than of $X.XX performance, capital maintenance in decline capital With are production. both production rate as capital flow in the XXXX,

in We the to XXXX. true same be expect

combination mcfe by expenses fourth quarter. year flow and lower free achieved compared in of results resulting production realized realized per $XXX fourth million prices in in in spending, prior cash cash driven X% $XXX reaching $XXX a Significant in flow approximately unit hedged improvement per per versus million. a million, $X.XX price the operating to of cash improvements flow the capital quarter unit period, of free with of Fourth were quarter

remain million unit. Lease was with or increase XX% unit, historic range $X.XX inflation. Recurring Fourth at $X.XX $X.XX year. production G&A and cash expense to with preceding operating $X.XX, quarter quarters roughly in compared the unit per in line quarter or were approximately guidance per line cash despite per margins of fourth an $XX in expenses last of

with last to XXXX follow-up $XX our we savings Cash lower refinancing retire interest annualized in expense expense rate million as reduction notes of estimated XXXX, declined is interest million interest significant December debt. less additional $XX Combined net should at totaling than redemption with and Further earlier million. than $XXX in year. run debt

transportation gas were processing right-way As savings pricing. processing decreased costs and fourth linked we as Also NGL between quarter, four, discussed cost serving such during in risk and gathering, some costs fuel and lower and each prices Range’s relationship winter costs to QX expense electricity that from a weather is costs reducing the downtime.

has balance prices of for million the XXXX commodity derivative at our an value a $XX.X rising improved such contingent Additionally, the million, that remaining was leaving maximized potential $XX as assets, XXXX. installment additional

In $XX relevant total the utilization are had serve taxable will year. carry company $X NOL XXXX Range subject in of to a with cash NOLs total reduce At taxes years to income XXXX topic profitability. state Range’s for federal roughly forwards for year become level These totaling million have limitations. a end billion. Taxes coming

reduce can For some used of first The used of federal can added XX% strip a of to up the reduce in to these income. Range’s $XXX federal years. forwards current of will NOLs understanding, benefit we pricing believe million expected of year's up At billion income. and taxable XXX% carry layer given NOLs from totaling the to full be utilization profitability, coming be NOL $X.X taxable to remaining

by will the and expect company in strategic cash Range’s leverage, where XXXX the foundation accomplishment debt, reinvest quality low high to business. flow, provided reduce Generate free from headed remain return paired Turning focus assets going in XXXX, consistent we the given prudently with financial is strong capital forward:

a of thereby and is and confidence pricing, seek cash always market support preserving consistent, the in a reinforced have retain returns This hedge in risk near the flow, of while We operations, preserving increasing book optionality all used. sheet forecasted capital. participation term improve plan term around balance efficient long is we principle in process constructed same thoughtfully with management that thoughtfully to

an to to the continue hedging will has the approximately floor with in thoughtful natural at served the or an natural company price so average average of with hedged of XX% XX% hedged gas and approximately We believe producers. well do and Range approach XXXX results near floor Range's $X.XX gas price which class future. the head is among Presently, has demonstrate a XXXX $X.XX, in of of

to Range’s production U.S. quality and the is portfolio by what all underpinned business financial the paired plan high internationally, a asset with believe Appalachia, executed be sales and delivering on across in foundation. transport largest we strong a continues

believe deliver through we succeed the continue sheet We team, investors. and value to significant that and to cycles, have balance will to can business assets the and Range price

you. to back Jeff,

Operator, be questions. answer to we’ll happy

question-and-answer you, first question Instructions] Thank now Mr. TPH&Co. Jacob of Roberts from Ventura. begin. The The of line session will the [Operator comes

line Your is now open.

morning, Good guys.

Good morning.

Just laid noticed to the liquids the throughout that than higher the had in bit looking QX the tiny see plan just some you at XX% year over it could the guardrails the for and is results, you’ve curious then and turn through XXXX. percent I comparing might line a scaled it year, as out I'm XX%, that quarters. the or if we progress either provide around

morning, time. You as move there's factor that know given Jacob. is results, you percentage a that take of you around could Dennis. at just back put we bet. given and particular some one extraction at This kind quarter's When look Good market you things place taking a be step at it, that in some could ethane color the around variations know what's and

in just overall you XXXX really the NGLs around. between portion of loadings, or generated clearly two even going even be to also production from can of at from our is vessel rich, super and But look be going The will those clearly you amount activity. to areas of that wet variable activity half we've liquids at from move that’s of versus that field, our when wet XXXX our you're variations, to percentages referenced turn-in-lines the some and QX, as something timing in see also when that of our look

balance As we'll the more activity the dry remarks throughout to you the profile from given the so year we program. some profile production to touched start be weighted, see back super-rich in of look will through on as wet fluctuations of that our move though, through quarters as the half we prepared

approaching conversations term? work and XXXX might results you well disclosures just follow-up, little my could for about about we term, as talk commentary plus any your then I now, themselves the you and And if helpful. how bit market are guys echo on marketing that about that's does are longer the as would present team guys the happening I'm you might the new longer as opportunities give. great Great, a think curious

Yes, this dive is Dennis again I'll in on this Jacob. one.

and beyond, that we is and the that as to come expansion start topic this hit the and wave additional LNG starts clearly to will know XXXX surface start You infrastructure. really to surface – think potential the second beyond about

indices indices in from a also conventional and at exposure, lower also marketing not shaped here When we our look exposure One, is couple but in is a XX, liquids you only got has today, you sit currently a program like would markets program. way we've things organization perspective, we think has of we transacting as about. know international say the that and our the way our experience we’d to with that what our in diversified is

Our before, of transport on to our we've XX% touched the essentially get gaskets we gulf. as

as gets just the those that we it The in returns further in other so of on look LNG go that at space are our transacting also already and XX continue a compete basis with on but has there Mark objective, forward, as would two we today XX% financial items. space is touched participating to that to key

we it's the the what continue program will or on future, side conversations in opportunities our really the to – and As financial as this we infrastructure as know on inventory of our ties investment be gas transport you infrastructure with think say aligns ability well, want inventory side to with our the at going conversation. we a organizations, decisions our materialize. NGL that about have, the think back think well have and for continue just our We part expansion look net to in of it, to look all that participate have we'll as diversity transportation and like when we and are it'll varying with, the they transact these further multi-decade to we're customers our and this portfolio that whether in we future, the to

much. appreciate the I so time Thanks guys.

you. Thank

question. our by for stand Please next

Our Umang Chaudhry the next from comes question with Goldman of line Sachs.

line is Your now open.

you you. Talk] as Hi, to taking today. reduction allocation I get I natural on my the a see the cash thoughts Thank and for around debt the [Cross wanted your NGLs questions. And your thoughts good thank we then, number. and updated also follow-up towards had and on morning, macro repurchase, your given share free towards $X.X flow line billion of gas sight

thoughts those both your Thank what topics? So on are you.

Good. Umang. Mark market to your macro, hand I'll questions. Good and – and sorry, with morning, start over financial then natural gas the for NGL

you rig category this that it’s apparent potentially lot, we've companies as for through also like net know a had something as year. about clearly Haynesville to well. other example. been the slow activity that hear go-forward think about Range level season think know basins we about for this that you We earnings natural you're seeing gas. natural talked had the you're the bodes It's But well outlook macro, starting is gas continue fairly maintenance but to starting like for in that think I that effort programs in

be for facility that wave the gas go-forward the leave think LNG we've through we no and of to You've up see And got come the ships the will and of the and coming then XXXX. doubt online, freeport look. LNG docks, to starting positive next that's balance coursed constructive starting in sometime start feed now also

forward. think of So aligns all well as we we look this

in You demand couple with through going background be ’XX still that ’XX. there's the outlook, the materializing and to

to kind from something we gas this before a before link talking dissimilar You're all of were too that's a winter. natural about going supply perspective, not you this still day back as into at,

higher to forward. no So as have see start the to that still a a going constructive this – outlook modulate through year, activity think have had that doubt basins start a especially of we the balance could activity the level in we

of NGL docks example Alan’s prior propane leaving on times are occur in look you number from exports, a number know to the some piece, a that really which know in supporting support we're the of the you for continuing we're NGL price into an record today, it a calls, level constructive all back touched year, LPG, stock as outlook to will the that encouraging, barrels of translate but course further levels is start exports of take at of reopening perspective that China reducing and of watching half still and seeing we improvements. place, and as further

Now, for the financial I'll to it turn over Mark piece.

Umang. morning, Good

for business the I in the year is about important, at so, remains from your this know years. our talked and price same last plan question at itself the of think obviously that off we nature you is as somewhat couple of Range last year We're that story look same. about we the cash or the talking free flow and

cash executing cycle efficient a really although free cost structure. to flow, capital capital reduced program, generated We full returned shareholder, on debt, looking

take business. in capital on CapEx at line and it'll competitive the extremely per unit Looking mcfe, be best our front certainly you remain items, the costs if dollar

cash free and generation free we're of flow flow So generation. cash about with talking degrees that,

how on cash investor coming seven $X.X to and of have free range that think from So to share our we between and allocation purchases? the examples within more we're million slide $X of of your we hundred hypothetical our debt deck or a targeted close debt directly, billion. with very We're to haven't do but is reiterate just context question percentage, the that hard reduction, priority We I'll about but net provides some a say couple what is coded is specific relations away flow billion debt that. around

this generation keeping and of the support coming gives that us forward, flow in certainly quarter part So of latitude two, an share us cash dividend us free our put keeps going within and quite the in that year front on could integral or range repurchases program. which easily

execute So incremental we've In will how XXXX debt we it on within the as within latitude be – to that have get that repurchase as incremental latitude got net we range, program. share get we range. on

I of would the in you did example So XXXX. we what give

of paid our the it course to prices same We repurchases. we the forward. XXXX ratably as increased and in in in the debt, going flow year generation, we free responsive will principal cash overall and down share Over were be

much, That's you so really helpful. Thank guys.

you. thank Yes,

you. Thank

stand our for question. Please by next

of question next John the BofA. line Abbott from comes of Our

Your is open. line now

I'm Good Leggate. for and Doug on morning,

Good morning, John.

Hey, good morning.

some this bolster for at first can Range’s chatter shares. do have might Our obvious point week. of Anything further the last miss highlighted there opportunity to was What valuation value Range? question is, M&A in the you recognition

just and execute we lowest cost plan the to for and inventory, added, able do really new kind argue, to we more some time having would long story are that give data consistently think better inventory. best-in-class I on, having which color, strong a core per long I a stick Well, debt that long, being think put of Mcfe what of in until really highlight We markets. is the you the are on

So I prioritization execution. Mark capital think return and that. about it's just strategy to our consistent and talked of just

inventory when of lateral foot you on is going and for sort then the opportunity And Jeff, second the it. you've forward. of had the what the XX,XXX XX,XXX laterals. look foot at inventory I you your general, benefits in just plus highlighted question Appreciate the mean

first I add with value. ways really finding best mover, area the of team what a stack being the talented mean, you beauty a that big blocky with a position is our to and it's to pace, keeps think position having

the extending laterals, you'll a little teams think at we year-out bit look year-in - that when like consistently loading, see the recoveries to those are the per and just do exhaustion. results you a companies XXXX seeing core landing, and replicate industry one value add that's there. can, we're able get year in things been few in and that better each others The to of team, and I when So improve our demonstrated etc.,

you Dennis, anything add to that? want to

Yes, I you add think one I’ll back, quick just if item. look

it was small the ago to call we overall back there? the year walked call, returned question believe we what's through have returned pads data yet a runway. look only this of where you of an a April returned example If long of pad it's we not your the pad had we We over see I the versus And size or kind to at percentage to. the set. size opportunity was, A when that the represented

we pad incremental those past literal prior in for that year we gathering, return roads, most the drilling etc. a more infrastructure than site utilization time, some of of long having to the returned efficient D&C in third costs, and third showing did again our footage laterals, This further two, of continual the drilled development we and development

sites and further long return a capital inventory efficient cost about So total those we and to we the see as have pad think our structure. leading ability to runway

I Thank taking you appreciate for questions. it. our

on. being for you Thank

John. Thanks

And from Paul our question next comes the of of Diamond line Citi.

Your line now open. is

the Thanks or Good taking taking call morning, thanks for all. time. for the

question quick upward. what’s trending directionally here, obviously so through year, and a still – Just expectations your the

seeing to your in – your are aggregate, conversations, You anything particular starting just or it you guys any or are guys of softening? the concern in break anything does you those where particularly

question. your clarify inflation, costs about and to are You just talking specifically

Yes. I'm sorry, that’s yes, right.

Paul. Thanks

we're is, a half seeing As we, increase what we'll questions today. seen a costs step back a it take stabilization. What and or I’ll kind we have of call requests to is not

to maintenance As we of you some programs have start this look starting year deeper year, us rig will that a opportunities forms that announced. of We the further reduce there level to of as would though, activity that and with fashions. and expect into been surface to could announcements the other basins, in culminate balance these costs expect in variety through of would maybe be service the slow you for that get would

whereas if year, the where opportunity let's to an they just shore back fuel the maybe present half balance savings think that to were I for look of some are goods where say XXXX, in of today versus relief. up, the tubular along example prices an some you could see at, starting with

the year further So we get opportunities the or deeper that cost you to some present be themselves there service would reductions. would into expect

And Understood. have one I Thank you. follow-up. just quick

pricing, your gas a the year is that much is the upward either guys Given point operational direction in gas, there in would we're seeing the for volatility in? of that market locked have plan you kind downward revisiting or it natural or pretty nat

I’ll This off. is that kick Mark. one

far free talking about morning, we've cash mentioned forms so this throughout degrees as I various our we're think discussion each of flow. in

So I’ll capital our it bring allocation. waterfall and back to

production maintain to margins. flow that cash reinvesting levels First, maximizes

locations. our a well We is have XX% and production diverse roughly of the natural a delivers liquids. utilized and gas across of revenue set infrastructure that outside Appalachian system to gas Basin

prices So and this debt where capital to market we're able into coming this competitive but we're return to still shareholders. and may be year, softer generating returns reduce extremely

and a flow at of year, good base level far inflate to business. also as And this of near provide we've a still set prudent of being a So hedges that got cash term. is predictability, as adapted a spend I maintenance greater flow us cash medium reinvestment being further of the prices, again and think

clearly extremely to course under severe to a example from $X, is flow. of and any of Range of realities got be of $X.XX are free cash reasonable pricing scenarios all any for realized going prices we'll seven page competitive then virtually not netbacks. scenario, we've We to said, But on away being our look generating moves. variety And down deck. responsive levels of that

feel about any and as the material expect be will we be. adapt we don't That need So remain said, to there program nimble and alteration. good

Thanks Understood. guys. charity for the

Thank you.

for by next stand our question. Please

Dingmann the of of Our Truist question Securities. from comes line Neal next

Your line is now open.

a tell. some Thanks some too maybe bit all. other early maybe a in areas to gas may money, services question My on shown Hope like the of the of now or yet, not that just on can I'm decline be have is I’m for wondering, of you bit field has Good so rigs is hear loud a here, through but seen me services. still here. oilfield you wondering, time. it oil just little

Neal. little say question for I'd the it's Yes, bit a thanks early.

to reduction tried we service at service good the fully those to deeper months there is for surfaced. rigs in any this cost us time. again, expect and news cost of seeing market. get fully point in not strong But evaluate a the to for the cost we I opportunities. start this to opportunities bit But be think as of some ahead, requests good little year, fully we're kind for further ways seen to stabilization service this further I reductions materialize dropped into The and being increase earlier. We've a just at on touch

– I’ll component And you on. of we are structure, cost service always our throw also this our I efficiencies the one is cost but know mean other.

As we efficiencies look structure. at program how further year, our to upon would we cost to and further the reducing are continue we that this expect them, build repeat attacking

the that back, to like of end be touched But level. at just the on M looks kind day you in regardless that this Mark kind per like morning outcome leading So of of and we we at feel expect what efficiency of the dollar dial edge the this as well remarks. at all as it his value XX of

Okay, one had follow up. to I point my and

about long was I the could to will the like margins Just was it is the two, just more on additional like little Dennis, seems you think longer on you talk see laterals is or or – – you're of you that next potential they'll There see wondering, bit inventory or and type. seems of of can bigger, most the you color type a be that but on just this, there for that? because Jeff I that better talked year maybe you things [inaudible] laterals anticipate? the wells that a

think we take in really you inventory as of about two couple to XXXX sites have we to but about step We're adding that it talking should wells and a things. XXXX, about really do wellbores. us One, somewhere this back. a we're really of as between the adding Yes, pads one some think to year, optionality allows it's

but them. us that's going efficiency allow again, the program, de-risk current maintain only upon levels, also to so operationally And our further to not to build

the has making a that the of those comes by already kind last XXXX, and like of next from or program then plus out that again, of it and set program. the that could be for in capital already becomes the part in having But can efficiencies activity we're this team year year, further we program and that optionality at of records improvements completion efficiency drilling some XXXX that it look see And of also as you year, ‘XX. we efficiencies that capturing, some still year's next into base

Thank you. you glad that that spend I’m now. all

you repeat Could Neal? that

I really for it. all said spending I next you’re see that that thanks. build. It’s good to And now year’s appreciate

Okay. Neal, Thank you

Thanks Neal.

question. by for our stand Please next

Morgan. comes question J.P. line next from Our of the Arun of Jayaram

open. now Your line is

on mid-cycle in buy It's would think that bid. views approach good came sort update at your Jeff, PVXX I clear on some you appropriate, the on beyond back and what's you the based unlock just was know of your to value knocking using And how gas Mark. stock if your take is evaluating type to of terms And I you Yes, an you call someone wanted get your door, on morning, the on putting that of price. value. just thoughts it relative thoughts natural what strip. wondering, unlocking potentially undervalued

I’d talking on you're say door. know, if Yeah, came somebody you about just knocking the

the considering and and not they're and part the you're clearly in. extremely to is deal. our good And deliver Reuters ability referring there a to assets good position the in the We're our our in confirmed probably article So value. that news position shareholder life is confident then their Pioneer, we're inventory

position a M&A. in of So don't need great any we're pursue where sort to we

And again can know talk we back to, about unlocking you value.

you in seeing most – see the consistent research, few companies after doesn’t I and in some doesn't across basins with matter it’s year We're of that know at in in and But think put that. your if that year. for the are results seeing of companies most U.S. you again, it just that look see it your productivity in. basin unique you one you consistently executing, you're work out declining you

at when revisions numbers. those XX a per one area, X reserve BCF X,XXX, fact, our over of in future projections row. We're EUR per drilling, of in X,XXX positive wet years had the look In that confident few in are in you XX page like we companies a

environment will So I but is executing value, a add think what think want consistently we into to…? Mark, just do you better

does I value even more think question asking the you're I’ll or it, the energy. broadly recognize just about of basically, Yes, when Range market a rephrase when

of return into investor the slow dollars a sector. got you've think I

close know X%-ish, sector to what zip to You code. have S&P – of had getting energy the down or gone X% XXX you back roughly the the

Range, what whatever years Those up can't expectations simply talking look valuations are. long inventory haul. a XX multi-decade you're are a reserves of company be at upstream ignored that Range are yield specifically north teens, price flow and specifically of for more it over free greater audited flow under for you cash to of then prove with free history it up, back energy, to and XX% with As yields that production than cash the

It the perhaps our stability is to prices That to that's something prove step fine. I you take come the back and a commodity in generalists that some know more it begin program, in? Perhaps, more the in of few the that and us consistency time allow Range to over outlets doesn't in Does take of interim. diversity drilling of stability think allows to program, the quarters? our

in our our proves business Just significant simply cash reinvesting generating and flow point.

highlight to that. So, we I continue think can

We have very investors. with constructive dialogue

number phone that seen of volume of the as is fact, calls ever we've In dialogue, it. high as

And the think premium our and inventory quality peers. So of our of the trend relations the in of I relative both the to the investor that shareholder and is general of inventory, our valuation we state depth about our recognized base. good feel closest very

know you the recognized better term, price and we'll stock. be over that So to and of think I that, continue will and in rewarded to highlight continue the near medium

here plan, have and a business yet operate we a a great value deliver. great So standalone of to lot to

fulsome follow-up, but to Alan is the I get the if line, answer. My wanted appreciate don't because I some know thoughts. on

that PVXX bit. area and minor type I out down you noted curve a curves, some a break us could And value you strip. tweaks PDP raised embedded billion X% value came if gave that reserve number. you type was your little approved gas made the You the I about dry your wondering wet in using maybe to by $XX.X

type some could you the address of changes to maybe well. as Just the curves

Sure.

me and it Let type curve first, the take I'll address order. reverse

remain area. I results I think look strong. dictate 'XX the wet through terms at the several really years in the of continues 'XX, to gas well you from think Well if performance increase last

to drill We really continue high-quality wells.

fact. the as the If matter you in ever were probably of noticed, drilled some in 'XX play some of that the a wells were best of wells

So there's at high it when look slide. of you locations really that left the suggests quality a

slide, our They support very extremely inventory you great reiterate would of on see well. and our portion a Of breakeven performance. well costs low

So course, have I increase bit years, X-plus also never to the We the type recognition. identified increased just see to little we'll think of what Historically it. plan there. at out and after gone support that have a able look we data term as is year the next you be for that a longer And support we development well.

where just Minor again them the at where forward. of results recognizing on at gas, looking tweak been kind down to going once see well and can expect we performance the and have of looking well – what

more than position in lot a the portion have a dry, wet. to what gas be inventory do wet there's that's the so the larger to So we going of we much

sustainable be of for period to going it's time. a longer So

question, first the of the PDP don't what part I remember percentage the On is.

head. get get my with and with I'll I we top recall Laith with don't back on the of on get and that just will team, So well. you back we'll as you. the

Alan. Thanks

You bet.

is new color detail of in in Alan that slide slide of And with kind five a deck. the that to more referred was

the nearing of are We conference. end today's

our Cowen David to Deckelbaum of for go question. final will We

line open. Your now is

Thank you. Can you hear me?

Yes, we can you. hear

Yep.

of that there's lateral kind like should potential length ask 'XX does 'XX? down. and when throughout like comes of in landmark It foot goes assumed in increase How progression about the to have the 'XX, bit conforming for lengths XX,XXX in. year that you up standardized Obviously, Thanks we look the 'XX like get was sounds first. towards terms wanted squeezing into that Or term the kind lateral some year. lateral still long me seems you. this to kind program see you costs? just It average of in length. Thank beyond of as I the XXXX tilt a a count lateral

Yeah. David. Good morning,

we we we the talk a to driven extend but this repeatable. heard yet say to data calls, us in would capacity. very be know forward, approach lateral I successful, we we about on our of laterals, I methodical horizontal also prior you've You how order be know to because technical experience to limit look know have take need as But we

And repeatable. lengths do try in incrementally we be learning’s way. not is to we're way that a can that our lateral those and making big very effective so extend also take leaps operationally We something so but and can doing, opposed it we very cost

in to wells the to look you back the the our of drilled that XX couple we if remarks, we – in our we progression longest you top the quarter, a program. laterals as out, as of some last years, prepared for touched on continue think over like just have we point planned more balance fourth and XXXX I make of

our be our consider there level, inventory, five system of at outlook where at foot of how – internally, look would we that plan would and we are be or bridged complement XX,XXX gathering that activity and we lots year As to beyond level. well that wells that would to

from laterals create you our some But will have of prevent our average always which you of cases capital long maybe creates that XX,XXX most there an know as be then or efficient of move you where field, feet lease the that XX,XXX. drilling We opportunity. would excess more in throughout limitations

be reach we'll extended we our so. do So and really, laterals, continue with able a to to to see really inventory runway long drill

call Jeff, is something question, as a Thank this second little more on you. to And out maybe exciting. then bit the my close

there it investment or the with company development around believe term, M&A sort a perhaps view constructive that gas last forward philosophical goal U.S.? gas of a organization? perhaps is were is not to given core getting you path the an conversations Or sounds some there an natural your on confirmed in create like on focus Just to towards does best management differentiated you perhaps oil do weighted But think Board your longer macro, week. that of as proposition combination

in great say position. To we're answer that, I would really a just

or the and wells quality world. have about whatever five the new blocky the position, We gas inventory have disclosure talking what Big the in on of we longevity. core we the and field largest best believe page is you the know the

got structure We've the lowest decline think rate. term. going much story to cost We've be lowest we the into is got long what gas natural a better

slide to next at gas in XXXX. the we day, natural back, in great XXXX, I see talked We wave, to them. look the of there's you there by think, a think there's a slide in know a per be. it says LNG, when end we describes our starts Bcf but be XX you and going slide big LNG about the and wave exports is that place the in back, that 'XX, in and Dennis

So those the markets. we’ve to ability got access

So we – a great can will that If create and value we position. in execute think and in we great just consistently shape. we're we're

Just do continue what to we're doing.

Thanks Jeff.

Sure. Thank you.

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

you. Thank for Yeah, with our questions. feel time to morning. I follow-up the if thank you taking additional this want just to to have everybody And be on free call team

today's in for conference. participation your you Thank

You may time. this at disconnect