Range Resources (RRC) 25 Jul 232023 Q2 Earnings call transcript

Welcome to the Range Resources Second Quarter 2023 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, sir.

Thank thank you Officer. earnings morning, Officer and everyone, Range’s Chief Chief Dennis Good on quarter Financial Scucchi, are speakers call. you, second The Executive call Degner, Mark for operator. joining today’s and

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

our that under note also can or be can website will You using Range’s on XX-Q EDGAR the you found system. tab Investors the access it SEC’s

be measures We'll on non-GAAP certain today's referencing call.

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

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

you the Laith all joining call and for of today. to thanks Thanks,

hedging on shift the As while capital quarter's business. Range's low midpoint prices. pass this of focus progress results on to is durability business we we optionality, of on year continue track, I make healthy of and XXXX, objectives. intensity, believe cycle to plan us steady Range's liquids cyclically Range's our the the key and structure, cost reflect low commodity generate competitive resilience thoughtful full allowed despite and the margins remainder

operational with maturing quarter, plan debt a During efficiencies. and of retired delivered commodity free our XXXX. safely despite portion the second in low cash and prices, Range on successfully Generated peer-leading flow, our

all possible low emissions sustainability report and by corporate our week, intensity environmental published our safety team. our showcasing also latest We dedicated and ongoing made leadership, last

the and highlight the our and through team. the with talented quality that repeatable with quantity walk starts the durable we of quarter, Range's of along of our program inventory nature As each results underpins

low of to breakeven remain cash that the discussed peer-leading generates that efficiency base. costs, areas share prudent the our our asset development free class objectives continue and on capital us a long-term keenly flow consistent capital capital our return that world shareholders, forward, reduction, calls, allocation prior debt supports program and Looking with through of opportunistic focused repurchases, further on balances cycles,

upcoming Whether the our these and today, during results initiatives calls results or discussing support and strategies. align

we on track in capital the $XXX second for the while $XXX half spent back us versus firmly As look plans. stated on of the quarter, our came all-in capital at million, year first million, total placing

we remainder of During activity was where of to maintain for the rig, year. reduced part the the single early will QX, horizontal a

remain release with Our crew the in base also crew track will end of late with slated spot second quarter. for year, third us the through a the

capital forward As increases, of favourably production this decreasing aligns previously across year, the will a which discussed, spend the radically of prices. commodity while result half shape today's with second in

versus were for scheduled Production providing is second guidance upgrade per prior ahead and in to of projects the maintenance The BCF call. infrastructure quarter, or came guide. provided which day, uplift slightly our our quarter prior at during completed schedule, equivalent the of X.XX on ahead

wells our conjunction year with wet compression. back half pads the Supporting wells our production, super to for QX across with additional the gas sales some of the the Turn-in-lines dry, production existing acreage, with to creating of in operations. and these capital-efficient with on turn-in-lines bulk profile, towards XX most of rich we of in weighted are expected the commissioning peak turn quarter located our wet

end-of-year plan while the complementary cubic XX setup of XX shoulder approximately BCF production and growth generating earlier year, mugs for with we profile million improve aligns a after message, an They day. see the quarter as reiterate cubic million commodity should of an this sequential equivalent feet the production into per in level and feet to winter. production a day X.X prices approximately drive And as to third our the

drilling activity. team production while efficiencies in and QX new existing feet XX returning dry operations, length for XX,XXX improve wet Southwest acreage at to the or X% pads Pennsylvania our Looking quarter. positions continued were majority with drilled of average The XXX and during the versus a to increase our approximately the wells set was drilled the lateral program during second average. records

represent part the the team history longest four just wells misery drilled length in feet. XX,XXX with also the added QX, program's longest with XX,XXX As of the lateral exceeding laterals under feet. These

XX-hour In with periods team great also in addition longest X,XXX showed drilling the of lateral, excess efficiencies, feet. to our

lateral our year As full equipment versus average. rig feet representing daily could benefit development by driven This future a that QX, in day a changes per increase result, the was programs. XXX X,XXX average footage exceeded drilled XX%

Completions also and throughout stages. program day record stages per including records the XX-hour as over efficiencies XX team improved of XX set new the averaged a quarter,

XX% the at equipment representing versus existing XXX averaged the stages year to frac was of our surface of Supporting year accomplishment As completion per a improved enhanced pads. the logistics, half and full returning result, X.X of the increase this average. utilization configuration, the first day, benefit

and handling were of a for drilling overall previous to a the we second and pads. unnecessary the On This capture consisted time. highest completed turned new water quarter lateral Range's of operation able by and the quarter. mentioned area in completion, for of team located most our eliminating days in during efficiency the call first pad two with during our to this logistics completion wet records wells wait top-fastest pad, and water was operations setting acreage to that wet and completed projected On was be particular sales overall our being was the four one efficient

first will cycle for in in ways a accomplishment sales was similar ongoing Pennsylvania. lateral wellbore, area operational congratulate improvement continue team spud pad XX,XXX I of XX% just versus Overall, to the our support this of the on This our byproduct a groups they and look use further efficiency. developed know the of from hard to that to time XXX peer-leading new for capital than pad technology more over the work and days, improvement from XXXX. combined feet a is

supply chain, the under decline also in decreased rig count signs in softening OFS current few activity Range last months, observed the started some of categories. commodity Turning has other the the basin environment. reflecting as in

we through QX annual As we market will continue work and deploy pursue the our opportunities. follow bid to savings process, and

XXXX of towards look end we remain we curve. to at low As and capital expect Range beyond, the cost the

moderating rolling believe the exceeding US low of later have million record growth in U.S. a expected pH out year. is On China. set reached recovering with two later the bring new U.S. increasing a we saw day exports, levels the LPG second of in exports supply capacity this April, in quarter in three-month connecting storage back NGL as robust barrels improve balance prices supply we out and macro, year. petrochemical been growth to LPG to coupled are the historically this with into average This demand the

U.S. million this their XX,XXX remain XXXX and or both demand Looking as lows. records prices barrels the higher time fundamentals barrels And set has at domestic for a averaging than last ethane, off day year-to-date year. supportive X.X day a are export with

NGL both optionality to is the Range's opportunities our premium cycles to This case this uniquely per positioned discount $X $X to Velvieu positive liquids portfolio guidance barrel to resilience XXXX was positions quarter. and Mont index. range capture NGL our relative a Range, and domestic of international per well the contributor us through For supports barrel as

Haynesville domestic beyond. from On by production the the increased minimal market with encouraged front, and gradually the growth several year summer. gas expected with further gas strength gas natural next are natural this power generation the we rebalancing next quarters. over and this before see dry exports gas later continued paired We LNG strengthening year When Permian

Range's focused on on calls, we in and prior successes discussed safety environment. culture rooted have are As the a

Range's During inspection covering the certification A process end grade the our PA per quarter, of to at with frequency audit program completed Xx Range Southwest assets. and an in the received increased MIQ XXXX. year LDR third-party

production industry's and us by facility and mitigation the emission whether design, intensities. recognized And were detection source the lowest practices audit helped maintain level

improvements further QX in safety our field the OSHA in in performance X incidents we safety, the For for quarter. observed with

and You our can last accomplishments released report on was these that details others week. find in sustainability more corporate

midyear X,XXX our Delivering on efficiencies. the and track. is of second on drilling performance half beyond, program and our XXXX point diverse well enhanced production Marcellus on focus wells, marketing over outlets the large clear our overall we advance inventory As the repeatable team After our and providing across margins. to continues contiguous to

demonstrated resilience Range's stated of the I being as is environment, today's generating business delivering for mentioned XXXX. on we're As challenging flow in free cash still objectives price call, and prior the on

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

Dennis. Thanks,

funding million, what while expect near sheet across financially, our in the prices. and second quarterly The trajectory business. execution totaled the successful capital operationally and we expenditures quarter Cash maintaining lows the flow $XXX despite with commodity cyclical structure was target dividend and balance strength to are solid capital

commodity the been than have levels. sustain year that last and prices below are level XXXX softer obviously industry production can

of benefit low economic of period the costs lowest of breakeven visibility across space. through full going equipped the durability E&P Fortunately, is business. with the the cycle one assets of Range in the The into prices a is

through business our to inventory. in capital plan strengthen production develop flow, to seeking low-cost, to position Given contrast in free the despite stark goals economic and with outspend, high-quality portfolio, shorter-life to reduce resilience our for generate last Range's are cases, assets, XXXX growth return This ways long-life and where expected higher-cost, continued We'll demand in assets different by operators allowing are of our enhance investors, prices. consistent participate decline. year our is many cash to

closer and gas by benefit levels, realized million the Henry gas Range's of $XXX results, driven above per NYMEX strong price Cash quarter of and $X.XX from is pricing Taking Range's This uplift receiving $X.XX look realizations condensate. natural Mcfe. of achieving a production at diverse outlets Hub, natural for liquids unit the sales pre-hedge flow second was

barrel that remains strong During by contracts Gas. price the to total $X.XX Range's or Hub the portfolio quarter, an customer realized received and such per Range's premium differentials, capacity NGL transportation basis. Natural was unit Mcfe on per supported of $XX.XX second Henry Range a price

Hedged a last the on In of improved costs resilient $X.XX Range's approach by to costs. production of per was of versus unit from price-linked for provided per a Mcfe. quarter and price year. realized certain unit of addition, per $X.XX efficiency to unit margin Total benefiting cash cash realizations improvement focus $X.XX persistent second nature $X.XX, hedged hedging a an

power change slightly line NGL primarily in to inflation from offset costs. prices, expense gas quarter Cash Mcfe savings other we balances than the timing $X.XX in year workover year and on related to relating cost in reduced variations planned early items interest relates higher are declined last workover These labor wrapped to with projects. planned as which compared or projects by to LOE The natural QX. QX of processing $X the prior annual up to million per improvements savings. debt for in equating more and

costs, quickly we guidance line approximate gathering, processing item improved Looking have our and for $X.XX at that transportation at midpoint. the by annual

for tend Mcfe previous in barrel on to mentioned about price. every calls, As realized per $X $X.XX NGL per move processing costs our move

For realized lower year, gains. Range's of supported by approximately contract context, is our quarter hedge the per about program $X provides. guidance, prices being GP&T are start the NYMEX processing XXXX natural million for the hedging $XX our in for strip second risk and improved that financial since with right NGL way the the reflected and showing prices in that related barrel,

balance approximately is further of floor, gas XX% Range's hedged flow natural Range's XXXX free profile. the cash with to $X.XX providing an for forward, support average Looking

roughly we've of natural $X swaps of at a gas XXXX, $X.XX using retaining an and price to floor $X.XX. XX% collars upside combination of hedged For approximately average

a XXXX at the During initiated hedge $X.XX. gas price average modest on we an quarter, natural of position

activity. a is reduced at maintaining of rising cover we to levels, free objective while expect cash poised power consistent this industry LNG new current demand The costs to online to the program flow drilling essentially coming backdrop market attractive of facilities enabling generation, fixed positively alongside respond to with exposure

quarter, with the totalling Turning At the sheet. cash XXXX of modest from held last $XXX $XX balances to primarily due at QX, bonds change in the million deployed million, of principal. to repurchase in to discount end we a balance par,

our retain the cash future combined We opportunities on credit and working flexibility our and facility, cash take will capital balance, free may available advantage undrawn liquidity continue business efficient balance to management, bond repurchases. cash to to provide operate manage share for $X.X flow, ample with and This present. market billion revolving redemption efficiently our of

peaked cash to We've With by and to reduced on current range net focused us in continue for target been since XXXX. structure business of of sheet very shape $X as close a great end, $X.X EBITDAX believe X.Xx And targets, value is several throughout our roughly debt on of billion capital This the years. it close net to $X.X to base balance we billion stable to debt we quarter entering target in have cycles. proximity leverage of company financial billion debt. creation a our places

dividend Successful totaling appropriate $X.X levels. the and in stable, previous reaching second opportunistic is time of primary with return industry discussed going market alongside remaining combined in calls. forward, We available reliable fixed share for a cash our confidence quarter believe repurchases. this this in at our debt program billion, backdrop With while capacity our objective on target support results, positive a of capital Range

reinvestment. remain will project to adapt and prudent conditions, flexible We and market returns

dedicated hard about translated has to our business our core focus time long the plan work, into value without adjustments through teamwork, objectives demonstrating precise Range's business. but reality a of portfolio for varying and story been for from Range swift and innovation,

trend as quality and dedication gas primed is our U.S. inventory with foundation gas this With and and and Dennis, paired markets. This international We for natural delivery of to transportation focus and to of back liquids. will business to Range's strong portfolio for key demand across you. continue largest creation seek points shareholders. strong for disciplined internationally financial natural domestically is Appalachia, value and in a growth impending continue

Thanks, Mark.

to Before message previously. shared a reiterate Q&A, moving I'll we've

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

gas meet Range natural emissions are transparency. the and Appalachia Appalachia, believe positioned that liquids will among those We and on gas within natural capital to leading demand. future be intensity way And efficiency,

that our cycles. a in a X.X capable position has business Appalachia, inventory into generating commodity flow net acreage wells large translated free high-quality cash across of Range derisked of million and through

to company's the look sustainable for calls history. competitive many position best dedication our continue together the efficient and demonstrate forward operations safe, in in to and generating are shareholders. next We our And as consistently we to returns our I

we'll open line that, questions. the With for

Our Truist. Bernard the line with Instructions] comes from question of Don first [Operator

is line Your Please go open. ahead.

Hey. Good morning, guys.

about may ready are about turned talk that wells CapEx the much how I'm the in or put line capital aren't in your towards captured turn-in-line of Just disclosure wanted mine to turn in assuming but year. far so you versus this percentage to be there's be schedule. something that completions, there to

So address so just versus CapEx maybe you could turn-in-line the far the lower percentage of . higher

the for question. thanks Yes,

of to half year, As bolted you rigs of drilling and then back the half horizontal a with look toward rig at we first get third we off the of couple as started on started QX. the a

our activity when perspective, QX So a at you drilling became activity. look really it highest from drilling

of us on but the base as remain of balance we spot then you activity it through picked when up operating And we clearly and last starts completion percentages of the all year, -- the a drilling the will starts well. point. of at the the with capital frac through year's this profile the to kept that to about first completion side, frac crew it in program, the And of weeks think change cadence versus that spend, the change QX crew half capital

quarter. going of kicked first the in our and be to going actually the the in think, together one and to of of more turn-in in of quarter. QX, majority the I last lot turn-in-lines then start you're third half Were weeks especially that to sales to of the production come approximately see lines our back then -- are those activity are are drilling getting from weighted out that A see QX,

standpoint, activity will tail for too then it QX. year. QX So a saw an that's will how QX, you the balance from see you of it the out shake cadence off, And to and what dissimilar once not in actually be

point. Great. And on that of is then the kind follow-up

whether pull on environment want maybe X.X light for end have or the so, next maybe might or pretty there do the some from the of a if 'XX to capital a maybe to pass Is XQ, we're commodity not you attractive looking discussion going year, at program, XQ internally you If 'XX on of that very months some of last strip year? it?

Yes, good question.

million below always of internally being this or demonstrating those well. at are about only not we think optimizing make we're got our I start forward year's that questions but have to look we to history we're thinking best a as But $XX the we've sure reasons as of was program, what's as of for year our communicated of allow we capital guidance. of was that capital one that communicated why our some to this some at optionality. part that added inventory of plan the we for kind flexibility annual of

below the look capital you're that consider What last at XXX really level, is maybe to end for is the guide. that the what's does But particular setup guide of month having which us going the like our retain proper flexibility to months. upper or for to to upper end be maintain Maintenance a that activity that rig of or it XXXX. X.X allows

it's all for of and optimizing end up your program of XXXX. setting part So of that your portion

this conversations So we'll those They'll future . not in in necessary absolutely both years have year only come. to but be internally.

question. our moment next One for

comes Goldman Our Umang line next & Sachs of Choudhary from question the with Company.

ahead. go line Your is Please open.

XXXX? My cost labor material, and provide costs was cost color first lower service question implication of Any into the on you and inflation. leading-edge can on heading

thing mix. Encouraging still response early I'll for build by what some prior it's out rigs that going frame that we've shared seeing and off like we're will I'm come earnings clearly think, of the saying bit look the is to XXXX. to at Yes. the start upon, little somewhat a I call

XXXX rig versus we at the were in where end of last week. count we look where at total you December were If

I think around the down of got The XX%, now that range. Haynesville in mix. out approximately have XXX we've is the come rigs XX%

a other level during with activity environments. pricing rigs taking that out of over different last the basins seeing you're Of saw course, months also, XX Appalachia similar at other

what rig that itself to started some around like XXXX. manifest availability, that of for conversations All look into will

see of We've with the influence rig the where catching like and seen past the a was you've that, only in some that also of but of to supporting some of to goods, then, in seen day on start activity early to up demand as some our relief and supply some a day relief we're starting this and what it supply I'll say And comes just part part when areas normalize. tubular chain not course, . just equipment inputs out also availability, signs operations. of

we go framing the ready As could But encouraged I'd relief what say, also the XXXX. have like but in of we we're we the on of know all, lot some maybe long that today. process laterals I'll the talked look your side will prepared into e-fleets specification equipment our this, like say hiring be for to equipment fall, like of seeing all the in better this we about bid for way remarks -- frac expect there to some get certain fully a by maybe this we're

materialize. the adjustment also of total expect perspective equipment we're high on would come that. seeing we week with some relief rig still demand. course, U.S. part needs there that that's and in be we'd a And And though pretty from to some and count. to week service pricing expect out what of to of could additional along So in see remain

The say everything like, our what of capital shake last cost. on the looks from is out leading coupled that service efficiency edge be really to would expect we perspective, a service thing with where I

calls. it about talked and we've in one-on-one think prior these meetings I on

per $X. today, to for you base per a of where that you look replacement when in Mcfe of you we of at Slide today's be replacement it year, some set decline, and efficiencies each our $X.XX versus and cost X that about even decline a Mcfe new low us take pricing our at in it which records talked peer on position in our molecule basis average puts ranges, on But factor

the however and team's see with results shakes we that our that out, on that developing. leading contiguous So our edge had really we upon still based it position being also we're

hedging. Got very you. My next comprehensive. was question on That's

for that Do hedge XXX for capital the of are more is you commitments at XX% plan thinking line now? are floor. and hedging right how year are XXXX, in next hedged the covering you the given exposure to with cost, very You you . commentary the and with fixed for fixed have outlook happy now about past you XXXX? your costs This capital cover to commitments low XX% bullish

one this start I'll off.

strong the significant we on the . theme, touched and and you've being next costs. the to hedging the is our with think in and LNG fixed cover largely philosophy facilities and I exposure a commodity expect maintain the to commissioned program, behind Obviously, rerating a essentially year that price. over market. X,

of to do, industry like the debt range corporation specifically. best One have do you not is position to to of off high, seen places where the in a across years percent position paid something levels a is Having not are $X.X have levels have XX-plus X billion to something. might don't XX, as ago ranges the be XX and in where you that extremely it hedging and a we necessarily certainly

the level. do just our got we we've today, sit net we sheet where target on a enter to tiny balance bit So before debt

hedge as work at XXXX, approximately look look yet position and little and as of just do. So progress left at XX% I we've of you said, the got you bit, to gas, 'XX a

forward You that of of into timing the the demand, rerating into new also the and of its construction curve. making have the in-service XXXX facilities way

costs. into XXXX, you a is as So position to modest current that cover it's sufficient We think foundation. look fixed that,

XXXX position meets but objectives in we're our We management the anything. around. are we to is. means turn where it the hedged, to we're We do encouraged XX% book don't risk set unhedged. we're that have XX% started, while is hedge like actually I a where it way, as we and So up, by That think

unhedged, said responsive a good us. XX% foundation, our again, cadence development what may objectives. we'll we'll and stands. market forward book where having monitor all now the that, and in be the of have market But but between we philosophical to XXXX, and we're like then, basic covers we the construction service It and it demand for And offer

our question. One next moment for

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

Please is go open. ahead. line Your

you share the was buybacks? some anything how a a talk you buy and free maybe could for of of about decided always And of result, discount, just open maybe side. little a proceeds. of color just at balance Obviously, decide to didn't use kind and we really be kind a terms using the wondering thinking allocation us paydown little cash bit could I here. sort seems bonds in back kind of to good the capital market you which see But you between as of on the buyback of in how give flow year debt about you're that a

assets. year got is really productive opportunities think would I based it's of to you're years it. on an with activity, a Sure. are waterfall trying that and sure the that base, capital talking capitalize a make financial will you're comfortably production allocation company our Liam, start all have of XX I When through you on horizon, drilling asset the foundation where about to of XX-plus type presented navigate cycles that

to be place the said, to something. I best is a perspective corporate do to have in not As

that sheet, but priority. balance So made is progress where the remain we a does are on today we've great

capital buyback be three, talked one, for or it the our returns, debt about key and funding appropriate. shareholder objectives: the maintenance reduction we've the when growth to As share before, dividend

So bit lower where definition, we prices flow by and commodity lower. are today, a sit cash little obviously, is

being at where and of As flow bonds, as this path, pull sit cash securities owners of through prices sees enhance equity use free debt to the and that and are the the and fruit. reduce various look in to value performance our we them the able year

keys of is our Now capital said of of capital element. return all our having that, the to the and allocation plan opportunistic one program

interest in the rates, moving prices are and is a around. not commodity reason formulaic to obviously, allocate moves, to that moving fashion. around, be nimble purely want The That it's capital prudent we are able market

is mutually broadly. example, that fears, the allocation, market, happens what So obviously, waterfall debt not to exclusive. being said the the were economy capital recession If to see a is in big before, are and but certainly more priority for I as chattered pullback about we

equity billion available there's that any strength retracement. has if would broad-based we If step us opportunity back pullback $X.X the buy see in we current on and certainly in to program, believe balance sort a of shares the our Range and markets, sheet give were the to

for priority, last we we're debt of years. to That approach the as being, we make program methodology. comfortable with have that will So time repurchase the but just share is the clearly use the two for

the upside years and in Obviously, in then you talked quick now. 'XX follow-up. guys expected Range 'XX And of few Okay. has on gas. as get even and in on gas both more as about just sort a a we been NGL maintenance into mode production markets Obviously, quite so for

then Is higher of think maybe there that What's different MVP LNG be terms in it's is that and decision in slightly sort production? a kind thinking continue just a of to with likely maintenance that perhaps of latest the can 'XX. mode exports 'XX 'XX something on and in potentially you coming on on

Just would around any that be appreciated. color

Leo. bet, You

in positive for have But As outlook. maintenance and there to to current XXXX, out I infrastructure to starting utilized. program. good our year assets about our about always a are to we wells flat start in year forward, a kind That's we think as XX of I think about mean, look hold point our reasons think to XX is several

either of And positive LNG outlook. touched that on in remarks prior and that we've where them through calls, a reaches of today them, MVP some Q&A of all a have optimistic being we're commissioned. to through or And it's still starts place prepared one clearly

Range's start is that get part well but you starting think inventory We to degrading with elevated with more around macro. positive growth back long other I along basin performance runway only you're to is and aligns come not that the look as point more and also potentially year-over-year. back our all the going conversation inventory But to of really But And grow it ability think see both how the and exhaustion. the think to you when to future. to is point Appalachia other basins, a fundamentals what in of

patient. is what way think maintenance. a and to start the for from best about to So program we'll is beyond. be to the look it . our at program today But base consider We'll of 'XX

Read comes Roger Our next question line from WFS. with of the

ahead. go Your line open. Please is

Roger Wells Fargo.

Sorry, of I having to don't couple just repeat. the on, want typed registration page. for in WFS questions. on us Thanks I the

So this you your spud your of I'm as obviously, cutting capital talked don't have 'XX first little we latter any at outlook 'XX, part On going to pretty days, I with. we production disagreement come and think impressive for think differently. which a XXX about to to about efficiencies,

things and have maintain the learnings in spending to you what rig up can do in place What you well. goes presumably, you go as back you production As or increase space you'll activity, practices to as capital to allow that put want as up back are now? going best counts add efficiency

team's demonstrated versus on efficiencies one of bifurcating I ways and anything, our how is of I think to QX clearly I think if capital this our kind we have costs Roger, overall the view Yes. efficiency. couple deliver continue there's that. of results service And conversation. demonstrates think our efficiencies, maybe a And to leading ability

in basically old be It footage all to build in versus of have once continue that "success activity, production. of year year momentum". completion, seizures last frac around half average me group to returning prior producing some pad a to teams of per the drilling sites the and increase the success, just For an the full the in upon told the XX% begets accomplishments, year, able and day first to supervisor as with

would progress in see sites. back we 'XX to expect our So 'XX to further progression again, continue to as efficiencies move those pad we in and

quiver. So that's one arrow in the

we the to have logistics, you measures but multiplier. table, cost I efficiently for the back our overall out enhancements. manage that continue a that one these also it's more recycling have think becomes whether the pad look the to is, the really to just ways root that, nonproductive water efficiency second It program move the to ability you time. not When force sites, and we brings as only to savings

this. areas there well. improvement say But see we as I'll of So

and our level capital longest exceeding this excited the efficiency those having our ahead But will have Lastly, with feet. always in results. past think come wells some lateral XX,XXX is quarters it conversations monitor part. those as those online now now plays development start a future? role to play we quarter a of the low fluctuate We're see us significant drilled to about this growth We laterals in long in here

of execute What that how kind from the as we basically and edge those basis, leading of of still how how manifested forward. gets to going But added cost the part a we that. programs be on -- expect a inventory numbers foot per would are

Okay. Appreciate that.

The to other had you to you for or for I best opportunity question it. answer way answer best

particularly quantity the ethane in have prices was a a resurgence could for to on it, you what's general, quite say the going guess six call but some outlook NGL positive last seen fairly We just here front. four gave -- I over I -- I weeks. you in mean,

I anything in So seen was of curious recovery. the if there's pricing some in to you've the strength explain just that

to Alan recent seen I in business. we've of that is background give been This Roger. ethane. Thanks, go behind what's Yes. manage marketing the shot strength I'll liquids on you our some some Engberg.

hit last start and supply year We've X-year I through it lows lows tight hugging prior as calls, for by saying think ethane mentioned year, fundamentals this I well. have those while a all we've but days been five-year would been now. in pretty the

tight not a tightening, far fundamentals. market the June And that's the seen really, and say, let's in cushion when are manage changes in so of in that, what to like we've really supply-demand lot there's So is July.

So of list different the that drivers about five ones.

one, first list is But the cost I'll driver. actually

earlier -- in had So asked a we've come inflation XX% effect someone of about pipeline reflecting costs PPIs into year. increase this got we about

ethane that rejection. So the led probably more industry. floor raises recovery and the effectively for for to ethane that

heat affects gas also basins, to to supply, the of. That believe, during sell to, the we locally. of incentive aware had further the amount heat as the to in we some of again reject had we're led fractionation the more ethane let's all out an less we a of month time, efficiencies. June. that, and Added tremendous same say, At of So

most imagine, As you needs cooling. can molecule ethane is lightest the the

when fractionation the lose, affected call X% of gets one So you X% in comes to it the there, to efficiency. it's most heat. the that efficiencies And it,

in kind has short that XXs thing tight. other -- ran XXXX then. that for Gulf it's the is come back back of in The while the become fractionation in up overall it U.S. I more the ethane guess, We saw and the to to is more to capacity actually a forefront

quarter sorry, fractionation of ethane it Gulf I the in plain just XXXX. But are capacities was think tight. -- third or

reported fraction early of it's as quantify we ethane -- what reported it And that of or you see increased a actually call that doesn't unprocessed, result to by EIA, and hard is really we that, we ethane we molecule. fraction it what but of the to the happening that's the believe processed that relative that, is that get call because inventory that, is the Y-grade believe what

the is pros So less available. just but that processed stuff call there's to again, tightness, we ethane mix mix. believe been that on EP capacity of fractionation even ethane purity and inventory we a due

June, early talked As that, reasons about, ethylene got and a maintenance of July, the decreased ethane I the for when into spike. we already supply the Demand result of price late increased season. end

see sure forward, I'm looks like not what continued we'll continue is the we in actually tightness, XXs. good. Now going market But see prices

Gulf basis, continuing ethane day in fractionation will year. in operating demand this XXX,XXX on supply Coast fractionator do reason market the second do year and for day half midstream barrels the a on about because rates next the each. relief increased, lows coming some capacity near the has we have have U.S. the Nevertheless, is to be we And snug are the see each new adding per that come of inventories a major to companies the and in year continue

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

go open. ahead. Please line is Your

detail lot gave on on what of would fair it on compared some frame really rates can you of Denis as day and frac expect now, crew a is on that that you're not savings spot OFS right costs. about rates to your versus frac maybe you the rig I that to you ancillary seeing based added it see And well? and cost crews? contracted talk but efficiency how the costs, guess

You line more bet. Michael. The spot crew say, that of we pricing in current brought kind would with structures. on recently is I

with So been was it pad first we the with our that the it we'll frac happy results some very have really and in seen that year. actually with what crew were has it, completed, line base with We're had efficient. advantages for of we've the came seeing that bulk

the of just shown lot I a elevated place also that in through not the of the teams nature have in but it's lot providers cases, that of a also -- in the etcetera. So think only maintenance, procedures put operations, repeatable respective ways, several their performance routine efficiencies service

the spot very half for for bracket site pricing then we'll the we the released of remainder pad base frac we available That in . in us what will that crew been pricing another that's to But crew for. and current the much our for get the then for say, I'll spot were and back equipment here be line to of with year. was would expect just get quarter then able back

Okay.

heard you in I even well. right are the completion you there, some seeing improvement if as prices on So side

only phrase months. spot of into call leverage a for that small of versus But day utilization small I'll year are XX that again, this because of, There crew full we'll and able pricing was relief. in day being it, out a signs activity some to as

say a to bigger it picture. quantify So no, difficult it was in . I small. was would

happen to And can scope to for through see and beyond sustainability two thinking what zero that actual get by abatement I you you're to be much about? want on And versus -- how Understood. net I you new any you say the mentioned goal XXXX. your will guess report. maybe targets needs offsets to 'XX

Yes.

focus As a same emissions can years, operations say from completing continue next our same we It's the about we've rest producing of to directly culture, the programs, on what it's executed of reduce our responsibly, the a really to efficiently, whether or we we've and regardless may couple economically, reducing our emissions. the got approach keen of like our think how start be. drilling topic well

So we've on still focus further a that got in reductions keen regard.

that with fuel ways reducing we on at combustion looking of can our emissions associated at particular look We're operations.

course, or on but bolt-ons, versus small coupled diesel lights fleet, As and to the . as it's for fracking as switching be equipment, side. on gasoline ancillary type incremental plants you can could power our over fuel location with it imagine, little electrified of traditional E power

just quality say, play to our role, that we time, is we gap report keenly directly, we start sustainability with first effectively economically offsets time how offsets will a reduce the it Carbon want really, those off will efficiently is outlining What the Range's but do want emissions is it pad. good offsets approach. to same we at bridge remain something on the I and carbon with focused can and communicated for to don't

from the Citi. comes question next of Our line Paul Diamond with

Your go line ahead. is open. Please

helped you overall efficiency. that about out about should acreage your we specific highest pad really How the talking a -- one, quick wet dryer think had some mentioned and extrapolation you and the a Just we techniques about with think more level that those efficiency there? is trend? variation for on there of to X acreage? X of Or some Should that of as

that thanks asking Yes, for question.

I occur translate into think we efficiencies. water, of at translates say, point, that will this staging -- would not trucking this we see improved is, entire in that it's that I'll say it's that that I quarter-over-quarter hauling those all progress we just immediately a something areas basin, direction, the but can get progression redefined, for across meaning routes can

see new Over the turns that of we course this being into do the repeatable time, a we standard do. metric,

not being there do drilling diversity I'll may because And this from us quite there's see is of it ingress some how say XXXX. lateral just communicating There lengths. and for We the and that's But across and the today. be egress a perspective we're recognize standard part field it we also of variability. yet new we

length. average of our past years kind to in As average program for lateral XX,XXX XX,XXX feet the has you can been several tell,

will to laterals have where type where moments have assets. we upon those we'll XX,XXX-foot developing depending we're XX,XXX But

that super-rich It we into as future So these, to more the just and this program take will translate development areas. recent take dry time some as see execution. and we translatable say, I'll learnings gas

Understood.

quick one Just macro follow-up. kind of more

You or reducing -- kind strength pricing curve, activity see guess, flattening through at just kind needs Or I that materially of -- you it the of 'XX are just a of rate about guys it current with more talked activity a 'XX. do run is nationwide seeing you to beyond be point Is bit higher? the expecting reverting? what guys

to base development Again, you as I a about with to for 'XX see being point the starting which to LNG from, I'll all going say, you just is I LNG let's bit think start mean to more I us 'XX, off But online, start the that's signs infrastructure. I kind think, it the think on have think time, of is you're think little point. today, about infrastructure of coming clearly as encouraging.

the more to as to at of that we outlook start going end inventory get of bulk you of the that a of see to winter seeing get we XXXX. have, levels constructive to this into season, But have being we're as other side of kind injection what the

best I So then you of setting and then that's activity aligns basin and for us fundamentals the flexibility us have up XXXX. both level the see those to of when the assess start think macro with to program what

question. one and you next for moment our Thank

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

the curious Just that ability even in guide, GP&T prices, lower. of QX and to I in looks kind where like on expected on head has it came QX and Slide QX, the guide looking XX believe, the at

So just there. being I'm in baked curious the assumptions on

electricity I'll and and behind in Mark. the things date got you've mean to compression that are are months Yes. prices other other prices your -- costs today, experience of I down and on lead things. gas NGL into six that that. off there, going are This is

this injection the latter winter, we half costs look of there's season, some we're prices would see respective in this what curves the you expect winter So the the hopefully we estimated outside and and and a for year as look each understanding higher as likely into and may of of the at once more like. of power transportation little heading costs forward products, those processing

So the direction. prices your either go to can question answer is

number direction. the can go Therefore, either GP&T

to exposure lower risk we it's a contract give great and that prices design prices. see right way good just to So or when be us feature by improving . insulation of

QX? fourth you And in now, guys activity more then quarter going follow-up in feature Great. the more the in within terms QX DUC be my the And would system right details cadence a be in perhaps have of just those of are the or -- would to be on then any helpful.

briefly it, our us Thanks, site And we'll quickly the perspective, Jacob. touch then, to are another X to tried but course, moment turn-in pad know to base for going complete to lines have crew of QX and From I we follow. crew. a going expand this ago, on plus on QX a that's the spot

into of So the themselves of back turn-in-lines . half first sales. in our activity line some of the QX, then QX, see that year. and reach our to And production you'll from start turn-in QX of in early you'll start part see to bulk that the half also QX back QX in the we'll manifest of see

Bcf in where into we QX be Production from around should day, average be equivalent on we a day. it should QX, but per to touched we were briefly, up on $XX million $XX but million on average for X.X

that you So the turning volumes shape prices. see on as with as we cadence the more where significant, a sales commodity lines it is that like see activity we curve ramp that and align be of today to curve and start the turn more little will into

align a half start So to as about set for cash will year XXXX. it up we think think we back of better with flows much and output the

go will of conference, nearing America with to Bank our end are the of We the and we Doug final for Leggare question.

self, to more Note once. everybody. X hit star than you, Thank don't

obvious your of curve spent in one So time lack performance your first the anyway, you've for queue. in you to CEO. getting is and of confidence about thanks to I importantly you in that call But deck share of market's as nice your the wanted about. a the ask move forward this lot And me back Dennis, the for the slides of

want to specifically refer I X. to Slide And

basically got $X and saying a between materially you're $X drilling So you've is strip. to if you your production flat XX-year undervalued stock the hold to inventory Obviously, believe XX-year

see So advantage my what price. the you that question this monetize CEO, stock? some of asking your And bring weakness in the your you of not now drive as that just value to that of stock and can of why in do is, forward recognition some I'm clearly the take in you market question,

for the Yes. Doug. question, Thanks

value through role see we you're 'XX I to playing think the a raising exhaustion 'XX, in as beyond. I proposition we started look as you think that that real start get when about and inventory to start to forward, conversation

being We is have to long run it in in research are of these seeing from range work we've today done as ability other analysts basins. well to who that term continue start to rate You're internal we well see have you even in the constructive as looking inventory we the some see performance. at pieces and degradation of where performance of that repeat for that

that we're low-cost around on and X you sector it's those a profile. that bids breakeven. And the all just has graphical you When today, Slide that at in inventory how of we really that end and got lower look targeting not see we're have drilling respective the been, of

us. for So we well that think bodes

We in program control our going also maintain want to development forward.

a significant our efficiency. story, environment our pad our these part and production of sites capital existing to with back Moving our low-cost efficiencies, plays

for well. control environment important so be as And us would in that very maintaining

the about we what future, of to to through value. expansion like, We'll either cycles doing while peers future difficult So that further upon the of future, some reduction as through this greater share cash that think to dividend flow value time these the or ability in throw have for that the we debt looks basins the start based maybe or ability in have other appreciation either additional either share of to repurchases free be off so. shareholders, a other a return think will there range

Okay.

the is today stands the portfolio it with happy you're -- not bottom you're as line. So

Absolutely.

hedging is sits know right. a we My hedge new I curve apologize, comments I this of But becoming question. Mark, anticipate the Should where follow-up Is which a and Mark. I for All it's think volumes? earlier. additional the terms maybe are book any someone you about XXXX just with Okay. now? Or looking is asked at hedges? this happy normal proportion in consensus. your

Doug.

where that, because going with position happy number a moves. the specific and that the XX% assuming is is answer are maintenance we I'm the XX%, and market into us lock not codify So to program specific right to a

it now between type service progress it is construction in-basin other Ohio, pretty the dates demand, coming demand then, which substantial be be and just in will demand. there Pennsylvania, online, pieces think and what some LNG expected incremental of the basin Midwest in facilities So for of monitor liquefaction I are we and do Indiana,

and will growth transport Be can but to it moment. be the of gas be of or power we'll the clearly we baseline, accelerate at appropriate basin. able Extra value out right more our industrial. where is Maintenance our the inventory DP move

that of into what profile looks that of the all So timing back like. hedge play and will our

the we cards way way laid year XX out is book out we enough them be laid nice for It's the the or foundation. so. being the So see the over to next expect a

outcomes. the this you does that we present don't we significant to small of of support that, deleveraging. end that portion shareholder returns. if and But are derisk a book add any can like prices like, at the today. and changes where optionality we of may Those support accelerated have day, may expanded see it great as But more that we changes, is That

growth thanks discussion much, you taking appreciate the questions. But sure I I'm have my we'll some of guys. time. the so

to to session. call like I would Thank This closing concludes turn you. the remarks. Degner the over back Mr. question-and-answer for his

our joining to Thank the We call Yes. look call up for talking coming us on results. morning for this everyone next for for QX QX. you the and

up Thank have you follow to you. questions, our If any . Relations team. Investor don't with hesitate

your in you conference. Thank for participation today's

now disconnect. may You