Range Resources Corporation · NYSE:RRC
Range Resources — Investor Presentation (October 2006)
78 slides from Range Resources's investor presentation, October 2006
Slide 1: Company Presentation October 2006
Company Presentation October 2006 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements concerning future capital expenditures, production volumes, reserve volumes, reserve values, reserve potential, number of development and exploration projects, finding costs, operating costs, overhead costs, cash flow and earnings are forward-looking statements.
Slide 3: Corporate Overview
Corporate Overview • Market Cap ~ $3.5 billion • Reserve base (1) - 1.6 Tcfe - 82% natural gas - 15 year reserve life Appalachia • Operations - 2005 – 841 (594 net) wells - 2006 – 1,053 (796 net) wells Southwest - Average ~ 36 rigs drilling • Large acreage and drilling inventory Gulf Coast - 3.1 mil
Slide 4: Key Value Drivers
Key Value Drivers Proven Track Record • Consistent record of growth at “top quartile” cost structure Built-In Growth • Large, multi-year inventory of lower risk drilling projects drives built-in “double digit” growth profile Additional Upside • Exciting portfolio of emerging plays provides additiona
Slide 5: Track Record of Consistent Growth
Track Record of Consistent Growth Actual Targets Mmcfe/day 340 320 14 consecutive 300 quarters of sequential production growth 280 264 257 260 250 244 240 229 233 215 220 210 200 182 177 180 159 165 160 154 158 140 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2003 2004 2005 2006 2007
Slide 6: Double-Digit Future Growth
Double-Digit Future Growth Actual Targets Mmcfe/day 340 320 15% growth 300 targeted for 2006 280 264 257 260 250 244 240 229 233 215 220 210 200 182 177 180 159 165 154 158 160 140 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2003 2004 2005 2006 2007 6
Slide 7: Double-Digit Future Growth
Double-Digit Future Growth Actual Targets Mmcfe/day 340 320 Targeting 15% 300 growth also for 280 2007 264 257 260 250 244 240 229 233 215 220 210 200 182 177 180 159 165 154 158 160 140 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2003 2004 2005 2006 2007 7
Slide 8: Growth at Low Cost
Growth at Low Cost 3 Year 2003 2004 2005 Average Reserve Growth 18% 72% 20% 48% Reserve Replacement (1) 286% 828% 365% 497% Drillbit Replacement 117% 217% 249% 203% F&D costs per mcfe (2) $1.19 $1.20 $1.46 $1.27 (1) Excludes reserve sales (2) Excludes ARO and other similar non-cash items 8
Slide 9: Range – Low-Cost Producer
Range – Low-Cost Producer Range’s break-even NYMEX gas price was $3.54 per mcfe in 2005 Per Mcfe $8.00 $7.00 Range $6.00 Resources $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 C C K R K UE S Y O K X X Y D EI L T P EA SG EP TH RR KC CH DN CR KW NF SF FS PX PP XT CW Source: Banc of America Securities High Yiel
Slide 10: Built-In Future Growth
Built-In Future Growth Gross Net Bcfe Risk Large, Multi-Year Drilling Inventory Wells in Unrisked Profile Inventory Reserves High High Mississippi 24 229 Norphlet Medium Medium Gulf Coast Appalachia Oligocene/ Trenton Midcontinent Hunton 132 225 Miocene Black River Midcontinent Fort Worth Appalachia
Slide 11: Additional Upside – 4+ Tcfe of Potential
Additional Upside – 4+ Tcfe of Potential Shale Plays • Appalachian Basin – 309,000 acres, drilling underway • Fort Worth Basin – 44,000 acres, 35+ wells planned by year-end • Permian Basin – 20,000 acres, preparing to run seismic • Black Warrior Basin – 20,000 acres leased, targeting additional 20,0
Slide 12: Stronger, Simple Balance Sheet
Stronger, Simple Balance Sheet Year-End Year-End June 30, ($ in millions) 2004 2005 2006 • Simple capital structure Bank borrowings(1) $ 424 $ 269 $ 298 - Bank debt Sr. Sub. Notes(1) 197 347 597 - Sr. Sub. notes - Common stock Total debt $ 621 $ 616 $ 895 • Strong liquidity Common equity 566 697 1,0
Slide 13: Hedging Status
Hedging Status GAS OIL % Average % Average Volume Hedge Volume Hedged Hedged Prices Hedged Prices 4Q ‘06 Swaps 5% $6.34 4% $35.00 4Q ‘06 Collars 69% $6.68 - $8.88 71% $39.83 - $49.05 2007 Swaps 34% $9.34 - - 2007 Collars 41% $7.13 - $9.99 59% $52.90 - $64.58 2008 Swaps 38% $9.42 - - 2008 Collars 20%
Slide 14: Range's Growth Plan is Working
Range’s Growth Plan is Working Reserve Growth Drivers Tcfe Mcfe/Share Proved Reserves 1.6 12 Drilling Inventory (1) 1.9 14 Emerging Plays (1) 4.0+ 28+ Total 7.5+ 54+ (1) Net unrisked reserve potential 14
Slide 15: Reserve Valuations
Reserve Valuations Enterprise Value/mcfe (1) - Proved reserves only $2.73 - Proved + unbooked drilling inventory $1.25 - Proved + unbooked + additional upsides $0.58 (1) At $25.00 market price per Range share 15
Slide 16: Range – A lot of ways to win
Range – “A lot of ways to win” CoalBed Coal BedMethane MethaneProjects Projects TightGas GasSands Sands Tight ShaleResource Shale ResourceProjects Projects HighImpact High ImpactWells Wells Tight Oil Sands Tight Gas Sands 16
Slide 17: Range – Positioned For Continued Growth
Range – Positioned For Continued Growth • Large high quality technical team - 110 technical personnel on staff • Large multi-year inventory - 8,000+ low risk drilling projects, primarily CBM, tight gas sands and shale • Significant upside from expansion of proven shale play and new shale plays, CBM
Slide 18: Tight Oil & Gas Plays
Tight Oil & Gas Plays Appalachia Tight Gas Sands Fuhrman Mascho Tight Oil • Clinton, Medina, Devonian, Berea • San Andres • 3,300 to 5,500 feet Eunice Tight Oil • 3,600 acres • 1.3 million acres • San Andres • 87 proven locations • 2,450 proven development locations • 3,000 acres • 110 unbooked loca
Slide 19: CBM Plays – 400,000 Acres
CBM Plays – 400,000 Acres Pennsylvania Pennsylvania ••36,000 36,000acres acres ••20 20wells wellsdrilled drilled ••15 15wells wellsplanned planned Widen––W. Widen W.Va. Va. ••77,000 77,000acres acres ••55well wellpilot pilotproject projectdrilled drilled ••$1.35 $1.35estimated estimatedF&DF&Dcosts c
Slide 20: Shale Plays – 398,000 Acres
Shale Plays – 398,000 Acres DevonianShale Devonian Shale ••309,000 309,000acres acres ••10 10vertical vertical- -33horizontal horizontalwells wells2006 2006 ••$1. $1.40 40early earlyestimated estimatedF&D F&Dcosts costs ••3,500 3,500potential potentialwells wells ••2.4 2.4Tcf Tcfreserve reservepoten
Slide 21: High-Impact Wells Currently Drilling
High-Impact Wells Currently Drilling TrentonBlack Trenton BlackRiver River ••Operator Operator––Talisman Talisman Morrow/Springer Morrow/Springer ••50% 50%WI WI ••Operator Operator––Range, Range,CHKCHK ••TD TD~~11,500 11,500feet; feet;late late3Q06 3Q06 ••16%, 16%,44%, 44%,&&72% 72%WI WI ••Gross Gro
Slide 22: Appalachian Overview
Appalachian Overview Focus Areas: Coal Bed Methane Clinton/Medina Tight Gas - Coal bed methane Devonian Tight Gas Shale Trenton Black River NY - Shale gas - Trenton Black River PA OH - Tight gas sands WV VA Own 2.1 (1.9 net) million acres in the Basin plus 400,000 royalty acres 22
Slide 23: Virginia CBM Reserve Potential
Virginia CBM Reserve Potential Contours represent total coal thickness in inches With continued development on a 60 acre spacing grid, the CNX Oakwood Field remaining locations and reserves to be booked would be: 2,700+ Locations: - 624 proven undeveloped - 2,100+ unproven to be booked Reserves: - 9
Slide 24: Significant, Low-risk Upside
Significant, Low-risk Upside Unproved reserves are very low-risk due to a CNX high level of well Oakwood Field control from deeper conventional wells and core holes. • 550 conventional wells • 50 core holes • More than 1,000 producing CBM wells 24
Slide 25: Devonian Shale 2.5 Tcf Upside
Devonian Shale 2.5 Tcf Upside • 309,000 acres leased Devonian Shale • 10 vertical wells and 3 horizontal wells to be tested by year-end PA OH • First three vertical wells appear to have 600- 1,000 Mmcfe of WV reserves each • Finding and development costs expected to be $1.40 based upon early tests 2
Slide 26: Upper Devonian Shale Play
Upper Devonian Shale Play •• Wells Wellsproducing producingororgas gasshows shows fromDevonian from DevonianShale Shaleshown showninin purple purple •• Over Over400 400wells wellsdrilled drilledthrough through Devonianshale Devonian shaleininPA PA Big Sandy Field Produced >2.5 Tcf 26
Slide 27: Southwest Overview
Southwest Overview Focus Areas: Barnett Shale Morrow/ Springer Tonkawa • Fort Worth Basin 44,000 acres; 1 Tcf reserve potential • Permian Basin 20,000 acres; OK 400 Bcf upside NM San Andres San Andres TX • Fuhrman Mascho infill drilling plus waterflooding could double recovery; add 100 Bcfe Ft. Wort
Slide 28: Barnett Shale Upside Potential 1 Tcf
Barnett Shale Upside Potential 1 Tcf • 50,000 gross (44,000 net) acres of leasehold • 95% of leasehold in the Core and Expanding Core • 5 rigs currently operating, increasing to 6 by year-end • Production over 20 Mmcfepd at end of 2Q ‘06 • High quality technical team is leading to additional opportu
Slide 29: Permian – West Fuhrman Mascho
Permian – West Fuhrman Mascho 2005 Best Field Rejuvenation Award – Oil and Gas Investor 4,000 - As a result of Since buying field in 1998, Range has increased production 7 fold infill drilling and 3,000 refracing, West Fuhrman-Mascho field, which was BO PD Range Acquired 2,000 discovered in late 193
Slide 30: West Fuhrman Mascho Unit
West Fuhrman Mascho Unit 2005 Drilling Program • Infill drilling and 2006 Drilling Program Existing Waterflood waterflooding could Proposed Waterflood double recovery 5 Acre Infill Wells factor from 10% to 20% of the oil in place, estimated to be 213 MBOE First 5-acre • Under current well produced s
Slide 31: Permian – Eunice
Permian – Eunice Another example of Range significantly increasing production from a mature field 25,000 • Range team has tripled production in 18 20,000 months • F&D costs <$1.00 Range Acquired per mcfe (June 2005) 15,000 • Lease operating MMCFEPD costs ~ $0.50 per mcfe 10,000 5,000 0 1970 1972 197
Slide 32: Gulf Coast Overview
Gulf Coast Overview Focus Areas: Norphlet Floyd Shale Floyd Shale • 20,000 acres, continue leasing • Drill first well in 2007 North • 200 Bcf unbooked potential Louisiana MS Norphlet • First well TD 20,000+ ft AL • Total fully developed project could add 150 Mmcfepd net LA North Louisiana • Two lowe
Slide 33: Key Investment Considerations
Key Investment Considerations • Proven Track Record - 14 consecutive quarters of production growth - Top quartile finding costs • Built-in Growth – 1.9 Tcf - 8,000+ drilling locations in inventory - 15% production growth targeted for 2006 and 2007 • Additional Upside – 4.0+ Tcf - CBM and shale plays
Slide 34: Range – A lot of ways to win
Range – “A lot of ways to win” CoalBed Coal BedMethane MethaneProjects Projects TightGas GasSands Sands Tight ShaleResource Shale ResourceProjects Projects HighImpact High ImpactWells Wells Tight Oil Sands Tight Gas Sands 34
Slide 35: Appendix
Appendix 35
Slide 36: 2006 Active Areas
2006 Active Areas Trenton/ Black River Medina Morrow/Springer Clinton Watonga Chickasha Devonian Shale Morrow/Springer Okeene Tonkawa Coal bed Morrow/Springer Methane Panhandle San Andres North Fuhrman Mascho Louisiana Berea Sands San Andres Oakvale Eunice Norphlet Fort Worth Permian Barnett Shale B
Slide 37: Long-Life, High-Margin Reserve Base
Long-Life, High-Margin Reserve Base Gulf Appalachia Southwest Coast Total Reserve life (yrs.) 20+ 10+ 5+ 15 Reserve volumes 53% + 43% = 96% 4% 100% Proved undeveloped distribution(1) 65% 32% 3% 100% Percent gas 92% 69% 85% 82% Production 37% + 54% = 91% 9% 100% Net acreage (000s) 2,015 475 57 2,547
Slide 38: Range's Growth Plan is Working
Range’s Growth Plan is Working 1.6 Tcf Stable base of long life reserves in Proved core areas with modest lifting costs Reserves and high operational control Large, multi-year inventory of projects anchored by low risk, 1.9 Tcf highly repeatable development Drilling projects and complemented with In
Slide 39: Emerging Plays Recap
Emerging Plays Recap Unrisked Play Acreage Reserve Activity Potential Devonian Shale - 309,000 acres 2.5 Tcf Drilling and leasing Pennsylvania Acquiring data. Barnett Shale - Spud 1st well 4Q ’06. Undercover 18,000 acres 500 Bcf Another 500 Bcf in drilling North Texas inventory Acquiring 3-D. Spud 1
Slide 40: Appalachian Basin Overview
Appalachian Basin Overview • Largest onshore basin in the U.S. by aerial extent - More than 1 million wells drilled - Has produced over 70 Tcfe • Much of the basin remains unexploited - Less than 1% of wells drilled below 7,500 feet • Large untapped CBM potential – 12 Tcf • Large untapped shale pote
Slide 41: Generalized Model Appalachian Basin
Generalized Model Appalachian Basin Ohio Pennsylvania Permian A1 Pennsylvanian S Mauch Chunk Berea SS Greenb Bedford Mississippian riar SURFACE A Glacial Drift Pocono Berea Ohio Big Lime (Onondaga) S Upper Devonian S Shales Sands & Shales Ordovician Shales & Thin Limestones Devonian Clin ton Trenton
Slide 42: Appalachian Focus Areas
Appalachian Focus Areas • Coalbed methane – 630 proven locations, 2,400+ unbooked – Field expansion, horizontal drilling and refrac/recompletion potential • Shale gas – Significant shale gas potential in the basin – Large acreage position, initial drilling and testing underway – Stacked pay horizons
Slide 43: Drilling Rate Increasing
Drilling Rate Increasing $177 MM Gross 747 900 Net 549 800 $112 MM Gross 634 Net 428 700 600 500 $71 MM Gross 347 Net 285 400 300 200 100 0 2002 2003 2004 2005 2006 Clinton/Medina Upper Devonian Coal Bed Methane Shale Deep/Exp 43
Slide 44: Nora Area CBM Summary
Nora Area CBM Summary CBM Economics (IRR) • 287,000 owned acres; 100 43% at $6.00 some include royalty 63% at $7.50 90 83% at $9.00 80 • High-quality CBM field at Rate of return (%) 70 2,500 feet with deeper 60 tight gas production at 50 5,000 feet 40 • Low finding cost of less 30 than $1.00/mcf for
Slide 45: Virginia CBM Fields
Virginia CBM Fields Nora Field Haysi Field 217,000 Acres 30,000 Acres (12.5% RI + 50% WI) (12.5% RI + 70% WI) 287,000 Acres CNX Oakwood Field Non-Royalty Leasehold 40,000 Acres METH AN PDP (50% WI) PU D PR OB POSS 45
Slide 46: CBM Drilling History
CBM Drilling History Number of CBM wells drilled per year 250 200 150 FORECAST 100 50 0 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 P Nora Haysi Widen 46
Slide 47: Typical Nora CBM Production Profile
Typical Nora CBM Production Profile WATER Mcf/d BBL/D PHASE 400 400 Mmcf Mmcf EUR EUR PHASE 1: 1: Dewatering Dewatering of of fractures fractures PHASE PHASE 2: 2: Desorption Desorption 47
Slide 48: Pine Mountain Production Profile
Pine Mountain Production Profile Net Mcf/d 45000 45,000 Actual production 50% 40000 above acquisition 40,000 economics 35000 35,000 2010-2014 30000 30,000 2009 25,000 25000 2008 20,000 20000 2007 2006 15,000 15000 2005 10,000 10000 5,000 5000 Producing at Acquisition 00 2005 Jan-05 2006 Jan-06 2007
Slide 49: Nora Field Type Log
Nora Field Type Log GREASY CREEK MIDDLE SEABOARD LOWER SEABOARD • A typical Nora CBM well averages 276 UPPER HORSEPEN MIDDLE HORSEPEN inches of completable coal WAR CREEK BECKLEY • Typical well to date averages 400 Mmcf LOWER HORSEPEN POCO 9 POCO 8 Coal thickness needed for economic BASE LEE SANST
Slide 50: West Virginia – Widen / Fola Fields
West Virginia – Widen / Fola Fields WidenField Widen Field CBM Pilot 73,500Acres 73,500 Acresowned owned 100%WI, 100% WI,100% 100%NRI NRI WidenField Widen Field 6,000Acres 6,000 Acresunder underlease lease 100%WI, 100% WI, 87.5% 87.5%NRI NRI • Net production 1.4 Mmcfd FolaField Fola Field • 15 Wells
Slide 51: Pennsylvania CBM Prospects
Pennsylvania CBM Prospects P E N N S Y L V A N IA IN D IAN A C O U N T Y WILPIN PROSPECT W IL P E N P R O S P E C T 12 ,9 6 5 A 15,157 CRES ACRES # ## # # # # # # # # ### ## # # # # ### # # # ### # # # # # ## # # ## ## ## ## # ## # # # # # # # # ## #### #### # # # # ## # # # # ## ##### SSALEM A L E
Slide 52: Significant Potential in Shale
Significant Potential in Shale Lake Superior Lake Huron Michigan Basin Appalachian Basin Illinois Basin Established gas-productive area Estimated Major Basin Shale Gas-In- Recoverable Shale-Bearing Area Place Resource Shale-Gas Resource Basin Unit (mi2) (tcf) (tcf) Appalachian Ohio Shale 160,000 225
Slide 53: Appalachian Basin Shale Gas Plays
Appalachian Basin Shale Gas Plays • Big Sandy Field (2.5 Tcf) has longest history of shale gas production in U.S. • USGS studies indicate potential recoverable shale resource of 14.5 to 27.5 Tcf in Appalachian basin. • Range completed a study identifying shale gas potential in several project areas
Slide 54: Appalachian Basin – Trenton/Black River Play
Appalachian Basin – Trenton/Black River Play 54
Slide 55: Trenton Black River Play
Trenton Black River Play • Historically Trenton Black River has yielded the giant accumulation Lima Indiana in Ohio and the Albion Scipio trend in Michigan. • Most prolific production is in New York with per well reserves ranging from 1 – 20 Bcf. • Range has acquired 322,000 (319,000) net acres conc
Slide 56: Trenton-Black River Play
Trenton-Black River Play RANGE HARPER #1 RANGE LOCATIONS OPENFLOW 3.3 MMCFPD NATURAL RANGE SALERNO 1A OPENFLOW 1.5 MMCFPD NATURAL LENAPE EVERHARD OPENFLOW 8 MMCFPD NATURAL RANGE HUGHES #3 OPENFLOW 1.5 MMCFPD NATURAL RRC RRC Shallow Shallow TBR TBR Position Position FORTUNA Average WI = 90% Average W
Slide 57: Appalachia Tight Gas Fields
Appalachia Tight Gas Fields Avg. Project Economics (IRR) • Three principal development areas: 80 28% at $6.00 - Cooperstown/Cramerven field – PA 43% at $7.50 70 - Canton area – OH 61% at $9.00 60 Rate of return (%) - Upper Devonian field – PA 50 • 3,300 to 5,500 foot depth range 40 • 1,092,000 acre
Slide 58: Ouachita Trend Shale Plays
Ouachita Trend Shale Plays 58
Slide 59: Barnett Shale Gas Fields
Barnett Shale Gas Fields Avg. Project Economics (IRR) 80 •Barnett Acreage: - 50,000 (44,000 net) 3 Bcf 70 60 2 Bcf Rate of return (%) • Assuming 3 Bcf, ROR would be: 50 - 25% at $5.00 - 49% at $6.50 40 - 71% at $8.00 30 • Assuming 2 Bcf, 20 ROR would be: - 19% at $5.00 10 - 36% at $6.50 - 51% at $8.
Slide 60: FWB – Barnett Shale Play
FWB – Barnett Shale Play VIO A L PIN Fort C Worth HO UT 3D Shoot Mobil #1 Cockerham RRC acreage 60
Slide 61: Permian Basin Shale Play
Permian Basin Shale Play Burlington Burlington Woodford & Barnett Barnett Shale Completion Discovery Petro-Hunt IPF 1.5 Mmcfpd IPF 2 Mmcfpd 8 9 10 11 12 Barnett Completion 13 14 6 5 4 3 2 48 1 43 44 45 46 47 48 43 44 45 46 47 48 43 44 45 46 47 48 43 44 45 46 47 48 6 5 4 3 2 1 3 2 1 5 Prep. to Test 6
Slide 62: Permian Basin Properties
Permian Basin Properties Key KeyRange RangeProperties NET Properties NET101 101Mmcfe/d Mmcfe/d EUNICE EUNICE––21 21Mmcfe/d Mmcfe/d FUHRMAN FUHRMANMASCHO MASCHO––18 18Mmcfe/d Mmcfe/d LOVING LOVINGEAST– EAST–33Mmcfe/d Mmcfe/d POWELL POWELLRANCH RANCH––55Mmcfe/d Mmcfe/d NEW MEXICO MIDLAND TEXAS CONGER
Slide 63: Eunice Acquisition
Eunice Acquisition EUNICE FUHRMAN PROPERTIES MASCHO FORMATIONS DEPTHS FORMATIONS DEPTHS YATES / 7 RIVERS / 2,500’ – 3,500’ EUNICE FUHRMAN QUEEN PROPERTIES MASCHO GRAYBURG / 3,500’ – 4,300’ SAN ANDRES 4,600’ SAN ANDRES BLINEBRY / TUBB / 5,300’ – 6,800’ DRINKARD MONTOYA / 7,100’ – 8,500’ ELLENBURGER •
Slide 64: Permian – Conger Field
Permian – Conger Field Range Existing Range Acquired Good example 29 wells drilled - 2005 of acquisitions 20 wells planned - 2006 in core areas 45 locations remain Acquisition Lookback • Purchased reserves for $0.89 per mcfe • Actual reserves 42% higher than projected • Synergy savings achieved Oper
Slide 65: Conger Acquisition Reserve Post Appraisal
Conger Acquisition Reserve Post Appraisal Proved Developed PUD Actual Production r e ase e inc ion 120 s erv isit % re acqu 15 Bcfe 42 ince 100 s 9% 80 18% BCFE 60 40 20 0 2003 Acquisition Year End 2005 65
Slide 66: Midcontinent Division
Midcontinent Division DO YES ME • Average 2nd quarter net KE HUGOTON EMBAYMENT NORTHERN SHELF ERN EAST OMA FT production 37 Mmcfe/d PANHANDLE AN K LAH OZARK UPLI A O F SHEL MORROW LIFT TREND DA RK SO TR ONE EN R • 79 (49 net) wells planned W CI NEMAHA UP D O AT M BA FAYET in ’06 O AR TEVIL NG SI SHA
Slide 67: Midcontinent Drilling Activity
Midcontinent Drilling Activity Gross Wells Net Wells 90 80 70 60 50 40 30 20 10 0 2001 2002 2003 2004 2005 2006P 67
Slide 68: Texas Panhandle – Multiple Objectives
Texas Panhandle – Multiple Objectives DO YES Brown Dol. 3,000’ ME KE HUGOTON EMBAYMENT NORTHERN SHELF ERN EAST OMA FT PANHANDLE AN H OZARK UPLI MORROW A OKLA LF LIFT TREND DA SO T R ON E SHE RK EN R W CI NEMAHA UP D O AT M BA FAYET O AR TEVIL NG SI SHALE LE RO A- N Wolfcamp 3,600’ CH N UP SIN IC ARK
Slide 69: Watonga/Chickasha Co-Development Area
Watonga/Chickasha Co-Development Area • Agreement Extended for 18 months – 26 (16.3 net) wells drilled in 2005 – 90% success rate – Multiple stacked pay potential – 19 (10.4 net) wells planned in 2006 – 1 drilling rig active in play area – 2nd drilling rig scheduled for October 2006 Range Existing O
Slide 70: Gulf Coast Business Unit
Gulf Coast Business Unit RANGE RESOURCES CORPORATION MONROE PROPERTIES SABINE + MISSISSIPPI A L A. INDEX MAP + SO. CHOUDRANT JACKSON LEGEND L. Cret. / J u r a s s i c + GANYMEADE - PRODUCING FIELD Trend - 2005 DRILLING OAKVALE Hosston Jurassic - 2006 DRILLING Trend LOUISIANA Trend SALT ST DOM TEXAS
Slide 71: 2006 Capital Budget
2006 Capital Budget Budget = $551 million Budget by Area Development Appalachia Southwest 68% 36% 57% Pipeline & Exploration Facilities Acreage & 9% Gulf Coast 4% Seismic 7% 19% Note: $79 million budgeted for acreage in 2006 2005 capex = $333 million 71
Slide 72: Low Risk PUD Reserves
Low Risk PUD Reserves Appalachia PUD Inventory 65% • 3,114 Locations Appalachia • 1,200 – 5,500 feet in depth • $190,000 - $325,000 per well Gulf Southwest Barnett Coast drilling cost 3% • 99% success ratio in converting 17% 15% PUDs to producing 72
Slide 73: Unit Costs Are a Key Focus
Unit Costs Are a Key Focus $/mcfe $4.00 (Proforma for Stroud $3.00 Acquisition) $2.00 $1.00 $0.00 2002 2003 2004 2005 2006E Reserve Rep (1) $1.87 $1.43 $1.15 $1.27 $1.56 LOE $0.58 $0.63 $0.65 $0.76 $0.85 Prod. taxes $0.16 $0.22 $0.29 $0.36 $0.36 G&A (2) $0.29 $0.31 $0.29 $0.34 $0.39 Interest (3) $0.
Slide 74: Margins are Expanding
Margins are Expanding $5.25 $4.50 $3.75 $3.00 $2.25 $1.50 $0.75 $0.00 (1) 2002 2003 2004 2005 2006E Realized Prices $3.49 $3.90 $4.40 $6.02 $6.90 Cash Costs 1.45 1.54 1.59 1.90 2.17 Cash Margin 2.04 2.36 2.81 4.12 4.73 Reserve Rep. (2) 1.87 1.43 1.15 1.27 1.56 Full Cycle Margin $0.17 $0.93 $1.66 $2.
Slide 75: Peer Group Growth Comparison
Peer Group Growth Comparison Percentage change in cash flow per share (2006 vs. 2005) 50% 40% 30% 20% 10% 0% -10% -20% -30% -40% BD E D NR R RC EAC C RK COG EOG EP L NF X SGY XT O T HX KWK UPL SWN WTI Source: Data from First Call 75
Slide 76: Peer Group Growth Comparison
Peer Group Growth Comparison Percentage change in cash flow per share (2007 vs. 2006) 40% 30% 20% 10% 0% -10% -20% C K R G G E Y XT O C K L X X N L I WT SG RR BD CR DN KW UP TH EP EA EO CO SW NF Source: Data from First Call 76
Slide 77: Low Risk PUD Reserves
Low Risk PUD Reserves Appalachia PUD Inventory 65% • 3,114 Locations Appalachia • 1,200 – 5,500 feet in depth • $190,000 - $325,000 per well Gulf Southwest Barnett Coast drilling cost 3% • 99% success ratio in converting 17% 15% PUDs to producing 77
Slide 78: Nora/Haysi - CBM Wells
Nora/Haysi-CBM Wells Finally, over 1,050 coalbed methane wells CNX have been drilled in Oakwood Field the Nora and Haysi fields at a depth of ~ 2,500 feet, which allows our technical staff to map the coal thickness throughout the two fields along with the geological control from other CBM wells dril
Range Resources — Investor Presentation (October 2006) on 6ix