Q2 2024 Range Resources Corp Earnings Call

Welcome to the Range Resources Second Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise.

Operator: 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 statement. After the speaker's remarks, there will be a question and answer period. At this time, I would like to turn the call over to Mr. Laith Sando, Vice President, Investor Relations, at Range Resources. Please go ahead, sir.

Operator: Annnings Conference Call. All lines have been placed on mute to prevent any background noise.

Operator: 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.

Speaker Change: 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.

Operator: After the speaker's remarks, there will be a question-and-answer period.

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

Laith Sando: After the speaker's remarks, there will be a question and answer period. At this time, I would like to turn the call over to Mr. Laith Sando, Vice President, Investor Relations at Range Resources. Please go ahead, sir. Thank you.

Dennis Degner: Thank you, Operator.

Laith Sando: Thank you, operator. Good morning, everyone, and thank you for joining Range's second quarter 2024 earnings call. Speakers on today's call are Dennis Degner, Chief Executive Officer, and Mark Scucchi, Chief Financial Officer.

Dennis L. Degner: Good morning, everyone. And thank you for joining range of second quarter, 2024 earnings call.

Laith Sando: Thank you, operator. Good morning, everyone, and thank you for joining Range's second quarter 2024 earnings call.

Dennis Degner: The speakers on today's call are Dennis Degner, Chief Executive Officer, and Mark Scucchi, Chief Financial Officer. Hopefully you've had a chance to review the press release and updated investor presentation that we've posted on our website. We may reference certain slides on the call this morning. You also find our 10-Q on Ranges website under the investors tab, or you can access it using the SEC's EDGAR system. Please note, we'll be referencing certain non-GAAP measures on today's call. Our press release provides recommendations of these to the most comparable gap figures. We've also posted supplemental tables on our website that include realized pricing details by product, along with calculations of Abidak's cash margins and other non-GAAP measures.

Laith Sando: Hopefully, you've had a chance to review the press release and updated investor presentation that we've posted on our website. We may reference certain slides on the call this morning. You can also find our 10-Q on Range's website under the Investors tab, or you can access it using the SEC's Edgar system.

Speaker Change: The speakers on today's call are Dennis Degner, Chief Executive Officer, and Mark Scucchi, Chief Financial Officer.

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

Speaker Change: You will also find our 10-Q on Range's website under the Investors tab, or you can access it using the SEC's Edgar system.

Laith Sando: Please note, we'll be referencing certain non-GAAP measures on today's call. Our press release provides reconciliations of these to the most comparable GAAP figures. We've also posted supplemental tables on our website that include realized pricing details by product, along with calculations of EBITDAX cash margins and other non-GAAP measures. With that, I'll turn the call over to Dennis.

Speaker Change: Please note, we'll be referencing certain non-GAAP measures on today's call. Our press release provides reconciliations of these to the most comparable GAAP figures.

Speaker Change: We've also posted supplemental tables on our website that include realized pricing details by product, along with calculations of EBITDAX cash margins and other non-GAAP measures.

Dennis L. Degner: With that, let me turn the call over to Dennis. Thanks, Laith, and thanks to all of you for joining the call today. Brains' second quarter plan was executed successfully and consistent with our strategy for the year, which remains unchanged: operating safely while driving continued operational improvements. Generating free cash flow with a peer-leading capital efficiency and prudent allocation of that free cash flow, balancing returns of capital to shareholders with further debt reduction and the long-term development of our world-class asset base. I believe our second quarter results reflect the ongoing advancement of these objectives and demonstrate the resilience of ranges business through cycles.

Dennis L. Degner: Thanks, Laith, and thanks to all of you for joining the call today. Range's second quarter plan was executed successfully and consistent with our strategy for the year, which remains unchanged, operating safely while driving continued operational improvement. Generating free cash flow with peer-leading capital efficiency and prudent allocation of that free cash flow, balancing returns of capital to shareholders with further debt reduction and the long-term development of our world-class assets. I believe our second quarter results reflect the ongoing advancement of these objectives and demonstrate the resilience of Range's business through the cycle.

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

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

Dennis: Range's second quarter plan was executed successfully and consistent with our strategy for the year, which remains unchanged.

Dennis: operating safely while driving continued operational improvements.

Dennis: Generating free cash flow with a peer-leading capital efficiency.

Dennis: and prudent allocation of that free cash flow, balancing returns of capital to shareholders with further debt reduction and the long-term development of our world-class asset base.

Dennis: I believe our second quarter results reflect the ongoing advancement of these objectives and demonstrate the resilience of Range's business through cycles.

Dennis Degner: Our operational and financial updates highlight ranges, high quality, low-break even inventory, and liquids optionality, which drove another successful quarter while generating free cash flow. Our low capital intensity continues to be on display in quarters like Q2 and is the result of ranges class-leading drilling and completion costs, shallow base decline, large blocky core inventory, and talented team. These key attributes result in a required reinvestment rate that is among the best in the industry, providing Range's solid foundation for consistently generating significant free cash flow and returns to shareholders, while positioning Range to help meet future energy demand through a diverse transportation portfolio.

Dennis L. Degner: Our operational and financial updates highlight Range's high-quality, low-break-even inventory and liquids optionality, which drove another successful quarter while generating free cash flow. Our low capital intensity continues to be on display in quarters like Q2 and is the result of Range's class-leading drilling and completion costs. Shallow Base Decline, Large Blocky Core Inventory, and Talented Teams.

Speaker Change: Our operational and financial updates highlight Range's high quality, low break-even inventory and liquids optionality which drove another successful quarter while generating free cash flow.

Speaker Change: Our low capital intensity continues to be on display in quarters like Q2, and is the result of Range's class-leading drilling and completion costs.

Speaker Change: Shallow Base Decline, Large Blocky Core Inventory, and Talented Team.

Dennis L. Degner: These key attributes result in a required reinvestment rate that is among the best in the industry, providing Range a solid foundation for consistently generating significant free cash flow and returns to shareholders, while positioning Range to help meet future energy demand through our diverse transportation portfolio. Bolstering Range's profitability and durability is our liquids contribution. As seen in the second quarter results, liquids revenue provided an uplift in natural gas prices, with NGL Price Realizations providing a substantial premium relative to Henry Hub Natural Gas. When we roll all of that together, our Liquids Revenue Uplift is a low-capital intentions.

Speaker Change: These key attributes result in a required reinvestment rate that is among the best in the industry.

Speaker Change: Providing Range a solid foundation for consistently generating significant free cash flow and returns to shareholders, while positioning Range to help meet future energy demand through our diverse transportation portfolio.

Dennis Degner: Bolstering ranges profitability and durability is our liquids contribution. As seen in the second quarter results, liquids revenue provided an uplift in natural gas prices, with NGL price realizations providing a substantial premium relative to Henry Hub natural gas.

Speaker Change: Bolstering Range's profitability and durability is our liquid's contribution.

Speaker Change: As seen in the second quarter results, liquids revenue provided an uplift in natural gas prices.

Speaker Change: with NGL price realizations providing a substantial premium relative to Henry Hub natural gas.

Dennis L. Degner: Cassie. When we roll all of that together, our liquids revenue uplift, our low capital intensity. Along with a thoughtful, right-sized hedging program, you get a unique story, generating the lowest breakeven among natural gas producers and the most resilient organic free cash flow, as evidenced by our second quarter results and 2024 projections. Importantly, with our vast inventory of de-risk, high-quality Marcellus wells, we have the ability to compound our per-shared growth and free cash flow for decades to come. As we look back on the second quarter, all in capital came in at $175 million, with a total capital for the first half of the year totaling $345 million.

Speaker Change: When we roll all of that together, are liquids revenue uplift?

Dennis L. Degner: Along with a thoughtful, right-sized hedging program, you get a unique story, generating the lowest break-even among natural gas producers and the most resilient organic free cash flow, as evidenced by our second quarter results and 2024 projection. Importantly, with our vast inventory of de-risked, high-quality Marcellus Wells, we have the ability to compound our per-share growth and free cash flow for decades to come. As we look back on the second quarter, all-in capital came in at $175 million, with total capital for the first half of the year totaling $345 million.

Speaker Change: Our low capital intensity.

Speaker Change: Along with a thoughtful, right-sized hedging program, you get a unique story, generating the lowest break-even among natural gas producers and the most resilient organic free cash flow as evidenced by our second quarter results and 2024 projections.

Speaker Change: Importantly, with our vast inventory of de-risked, high-quality Marcellus Wells, we have the ability to compound our per-share growth and free cash flow for decades to come.

Speaker Change: As we look back on the second quarter, all-in capital came in at $175 million, with a total capital for the first half of the year totaling $345 million.

Dennis Degner: Capital spend for the quarter reflected our base level of activity, along with a spot rig and frack crew we had in early 2024. For the remainder of the year, we will be running two dedicated horizontal rigs and a single-base frack crew, which will generate our planned $30 to $45 million of in-process well inventory, very similar to what Range did last year. Also consistent with prior years, we will see capital spending decrease across the second half of the year, while production is set to modestly increase, aligning with expected improvements in natural gas prices heading into 2025.

Dennis L. Degner: Capital spend for the quarter reflected our base level of activity, along with a spot rig and frack crew we had in early 2024. For the remainder of the year, we will be running two dedicated horizontal rigs and a single base frack crew, which will generate our planned $30 to $45 million of in-process well inventory, very similar to what Range did last year. Also consistent with prior years, we will see capital spending decrease across the second half of the year, while production is set to modestly increase, aligning with expected improvements in natural gas prices heading into 2025.

Speaker Change: Capital spend for the quarter reflected our base level of activity, along with a spot rig and frack crew we had in early 2024.

Speaker Change: For the remainder of the year, we will be running two dedicated horizontal rigs and single base frack crew, which will generate our planned 30 to 45 million dollars of in-process well inventory, very similar to what Range did last year.

Speaker Change: Also consistent with prior years, we will see capital spending decrease across the second half of the year, while production is set to modestly increase, aligning with expected improvements in natural gas prices heading into 2025.

Dennis Degner: Production for the second quarter came in at 2.15 BCF equivalent per day, driven by continued strong well performance from long laterals and ongoing optimization of gathering systems that enhanced performance. Ranges second quarter liquids were approximately 30% of production, slightly lower versus Q1 as a result of a propane cargo that was delayed into early July. Liquid's production is back up to 32% today, near recent highs, reflecting our increased focus on liquid's rich activity in the first half of the year. We turn to sail 17 wells across our wet and super rich acreage, but seven of these wells on paths with existing production.

Dennis L. Degner: Production for the second quarter came in at 2.15 BCF equivalent per day, driven by continued strong well performance from long laterals and ongoing optimization of gathering systems and enhanced performance. Range's second quarter liquids were approximately 30% of production.

Speaker Change: Production for the second quarter came in at 2.15 BCF equivalent per day, driven by continued strong well performance from long laterals and ongoing optimization of gathering systems that enhanced performance.

Speaker Change: Range's second quarter liquids were approximately 30% of production, slightly lower versus Q1 as a result of a propane cargo that was delayed into early July .

Dennis L. Degner: Although slightly lower versus Q1 as a result of a propane cargo that was delayed into early July, liquids production is back up to 32% today, near recent highs, reflecting our increased focus on liquids-rich activity in the first half of the year. We turn to sale 17 wells across our wet and super-rich acreage, but seven of these wells are on paths with existing production. As we've discussed for years, returning to existing paths is a durable, repeatable part of our program.

Speaker Change: Liquids production is back up to 32% today, near recent highs, reflecting our increased focus on liquids-rich activity in the first half of the year.

Speaker Change: We turn to sale 17 wells across our wet and super-rich acreage, but 7 of these wells on paths with existing production.

Dennis L. Degner: As we've discussed for years, returning to existing paths is a durable, repeatable part of our program. Returning to paths allows us to minimize our operating surface footprint and re-utilize existing infrastructure while also supporting efficient, nimble operations. Combined, this results in a normalized well cost per foot for rains that is differentiated versus peers. Year-to-date well performance and production has also been strong, aided by gathering system optimization efforts that have included compression expansions in Southwest PA. These types of expansions are a normal course of business, as the team continually works to optimize field-level performance and support production from our long lateral development.

Speaker Change: As we've discussed for years, returning to existing paths is a durable, repeatable part of our program.

Dennis L. Degner: Returning to PADS allows us to minimize our operating surface footprint and reutilize existing infrastructure while also supporting efficient, nimble operations. Combined, this results in a normalized well cost per foot per range that is differentiated versus pure. Year-to-date well performance and production has also been strong, aided by gathering system optimization efforts that have included compression expansions in Southwest PA. These types of expansions are a normal course of business, as the team continually works to optimize field-level performance and support production from our long-lateral development.

Speaker Change: Returning to PADS allows us to minimize our operating surface footprint and reutilize existing infrastructure while also supporting efficient, nimble operations.

Speaker Change: Combined, this results in a normalized well cost per foot for range that is differentiated versus pures.

Speaker Change: Year-to-date well performance and production has also been strong, aided by gathering system optimization efforts that have included compression expansions in Southwest PA.

Speaker Change: These type of expansions are a normal course of business, as the team continually works to optimize field-level performance and support production for our long lateral development.

Dennis Degner: Production for the second half of the year is expected to be approximately 2.2 BCF equivalent per day, placing us near the high end of our previously communicated production guidance.

Dennis L. Degner: Production for the second half of the year is expected to be approximately 2.2 BCF equivalent per day, placing us near the high end of our previously communicated production guidance pertaining to operations. Drilling activity during the quarter added 10 laterals with an average horizontal length of just over 14,300 feet per well, several over 15,000 feet.

Speaker Change: Production for the second half of the year is expected to be approximately 2.2 BCF equivalent per day, placing us near the high end of our previously communicated production guidance.

Dennis Degner: Starting to operation. Williams. Drilling activity during the quarter added 10 laterals with an average horizontal length of just over 14,300 feet per well, but several over 15,000 feet. And we have now drilled nearly 90 wells in the program's history with lateral length greater than 15,000 feet. For completions, the team can change you to successfully operate with the new build electric fracfully that was onboarded at the start of the year. Each strong performance from the equipment and personnel across three different paths in the second quarter. Frac efficiencies finished at just over nine stages per day while completing approximately 800 stages for the quarter, showcasing the consistent, repeatable nature of our program and placing us on track for the activity plans we've communicated for the year.

Speaker Change: Herding to Operations

Speaker Change: Drilling activity during the quarter added 10 laterals with an average horizontal length of just over 14,300 feet per well, with several over 15,000 feet.

Dennis L. Degner: And we have now drilled nearly 90 wells in the program's history with lateral lengths greater than 15,000 feet. For completions, the team continued to successfully operate with the new-build electric frac fleet that was onboarded at the start of the year. We saw continued strong performance from the equipment and personnel across three different pads in the second quarter. Brach Efficiency finished at just over 9 stages per day while completing approximately 800 stages for the quarter, showcasing the consistent, repeatable nature of our program and placing us on track for the activity plans we've communicated for the year.

Speaker Change: And, we have now drilled nearly 90 wells in the program's history with lateral lengths greater than 15,000 feet.

Speaker Change: For completions, the team continued to successfully operate with the new-build electric frac fleet that was onboarded at the start of the year.

Speaker Change: We saw continued strong performance from the equipment and personnel across three different pads in the second quarter.

Speaker Change: BRAC efficiencies finished at just over nine stages per day while completing approximately 800 stages for the quarter, showcasing the consistent repeatable nature of our program and placing us on track for the activity plans we've communicated for the year.

Dennis Degner: Supporting our frac efficiencies is Range's water sharing program, which contributes approximately $1 million in cost savings above levels a year ago. Looking forward, we believe we will see similar savings from third party water utilization given our blocky acreage position and existing water infrastructure. Cash lease operating expenses finished the quarter better than anticipated at 11 cents per MCFE, shaped by strong well performance from optimized gathering and efficient water logistics. As we look forward to the second half of the year, we project a similar level of expense performance and are therefore improving our previous guidance for lease operating expenses down to 11 to 13 cents per MCFE.

Dennis L. Degner: Supporting our frac efficiencies is Range's water sharing program, which contributed approximately $1 million in cost savings above levels a year ago. Looking forward, we believe we will see similar savings from third-party water utilization given our blocky acreage position and existing water infrastructure. Cash lease operating expenses finished the quarter better than anticipated at 11 cents per MCFE, shaped by strong well performance from optimized gathering and efficient water legitimacy.

Speaker Change: Supporting our frac efficiencies is Range's water sharing program, which contributed approximately 1 million dollars in cost savings above levels a year ago.

Speaker Change: Looking forward, we believe we will see similar savings from third-party water utilization given our blocky acreage position and existing water infrastructure.

Speaker Change: Cash lease operating expenses finish the quarter better than anticipated at $0.11 per MCFE.

Speaker Change: shaped by strong well performance from optimized gathering and efficient water logistics.

Dennis L. Degner: As we look forward to the second half of the year, we project a similar level of expense performance and are therefore improving our previous guidance for lease operating expenses down to $0.11 to $0.13 per MCFE. Turning to marketing, Range's flexible transportation portfolio continued to access premium export markets during Q2. As one of the only U.S. producers with access to international LPG upside, we generated another fantastic quarter in terms of range NGL price realism. Looking at the NGL macro, international propane demand continues to grow. Chinese propane imports reached an all-time high in the second quarter as they continue to add PDH capacity to consume more propane.

Speaker Change: As we look forward to the second half of the year, we project a similar level of expense performance, and are therefore improving our previous guidance for lease operating expenses down to $0.11 to $0.13 per MCFE.

Dennis Degner: Starting to marketing and starting with NGOs. Ranges flexible transportation portfolio continue to access premium export markets during Q2. As one of the only US producers with access to international LPG upside, we generated another fantastic quarter in terms of range NGO price realizations. Looking at the NGO macro, international profane demand continues to grow. Chinese profane imports reach an all time high in the second quarter as they continue to add PDH capacity to consume more propane. At the same time, limited growth in non-US propane supply has led to tightened international fundamentals and an improved arb for US exporters.

Speaker Change: Turning to marketing and starting with NGLs.

Speaker Change: Range's flexible transportation portfolio continued to access premium export markets during Q2.

Speaker Change: As one of the only U.S. producers with access to international LPG upside, we generated another fantastic quarter in terms of range NGL price realizations.

Speaker Change: Looking at the NGL macro, international propane demand continues to grow.

Speaker Change: Chinese propane imports reached an all-time high in the second quarter as they continue to add PDH capacity to consume more propane.

Dennis L. Degner: At the same time, limited growth in non-U.S. propane supply has led to tightened international fundamentals and an improved ARB for U.S. exports. Range's flexible marketing and transportation portfolio allowed us to take advantage of this international opportunity, exporting the vast majority of propane produced during the second quarter. Simultaneously, Range demonstrated its ability to optimize sales by pivoting butane volume into the domestic market to maximize margins. As a result, Range AGLs received $24.35 per barrel in the second quarter, a $1.26 per barrel premium to the Montbellevue equivalent, looking ahead to the balance of 2024 and into early 2025.

Speaker Change: At the same time, limited growth in non-U.S. propane supply has led to tightened international fundamentals and an improved ARB for U.S. exporters.

Dennis Degner: Ranges flexible marketing and transportation portfolio allowed us to take advantage of this international opportunity, exporting the vast majority of propane produced during the second quarter. Simultaneously, range demonstrated its ability to optimize sales by pivoting butane volume into the domestic market to maximize margins. As a result, range NGOs received $24.35 per barrel in the second quarter, $1.26 per barrel premium to the Montbelview equivalent. Looking ahead to the balance of 2024 and into early 2025, we expect domestic stock tightening to combine with export demand to support absolute and relative NGO pricing. And we expect ranges NGO price realizations will remain a positive difference.

Range: Range's flexible marketing and transportation portfolio allowed us to take advantage of this international opportunity, exporting the vast majority of propane produced during the second quarter.

Speaker Change: Simultaneously, Range demonstrated its ability to optimize sales by pivoting butane volume into the domestic market to maximize margins.

Speaker Change: As a result, Range AGLs received $24.35 per barrel in the second quarter, a $1.26 per barrel premium to the Mont Bellevue equivalent.

Speaker Change: Looking ahead to the balance of 2024 and into early 2025.

Dennis L. Degner: We expect domestic stock tightening to combine with export demand to support absolute and relative NGL prices. We expect Range's NGO price realizations will remain a positive differentiator. On the natural gas side, Range's pricing relative to NYMEX was right in line with our expectations. We sold the vast majority of our gas into the Midwest and Gulf Coast regions.

Speaker Change: We expect domestic stock tightening to combine with export demand to support absolute and relative NGL pricing.

Speaker Change: And we expect Range's NGO price realizations will remain a positive differentiator.

Dennis L. Degner: Theatre. On the natural gas side, ranges pricing relative to 9x was right in line with our expectations, as we sold the vast majority of our gas into the Midwest and Gulf Coast regions. On the macro front, we have seen U.S. Natural gas production declining year over year, driven by maintenance or lower activity levels from industry, alongside durable demand for natural gas that can be observed in areas such as energy exports and increased gas power birth. So we believe the fundamentals continue to be in place for improving natural gas pricing going forward.

Speaker Change: On the natural gas side, ranges pricing relative to NYMEX was right in line with our expectations.

Speaker Change: as we sold the vast majority of our gas into the Midwest and Gulf Coast regions.

Dennis L. Degner: On the macro front, we have seen U.S. natural gas production declining year over year, driven by maintenance or lower activity levels from the industry, alongside durable demand for natural gas that can be observed in areas such as LNG exports and increased gas power. Therefore, we believe the fundamentals continue to be in place for improving natural gas prices going forward. Before handing it over to Mark, I wanted to quickly touch on our most recent corporate sustainability report that was published last week. This report continues to showcase the company's resilience as a safe, low-cost natural gas producer with an enviable emissions profile. Range had a great year for safety, with zero employee incidents for the year.

Speaker Change: On the macro front, we have seen U.S. natural gas production declining year over year, driven by maintenance or lower activity levels from industry, alongside durable demand for natural gas that can be observed in areas such as LNG exports and increased gas power burn.

Speaker Change: So we believe the fundamentals continue to be in place for improving natural gas pricing going forward.

Dennis Degner: Before handing it over to Mark, I wanted to quickly touch on our most recent corporate sustainability report that was published last week. This report continues to showcase the company's resilience as a safe, low-cost natural gas producer with an enviable emissions profile. Range had a great year for safety, with zero employee incidents for the year. Range also continued its strong environmental performance, driving a 67% reduction in methane emissions intensity over the past five years, reaching just under 0.02% or more than 90% below the EPA's methane fee threshold.

Dennis L. Degner: Range also continued its strong environmental performance, driving a 67% reduction in methane emissions intensity over the past five years, reaching just under 0.02%, or more than 90% below the EPA's methane fee threshold. We look forward to discussing these and other results during future meetings. So where does that leave us? As we're more than halfway through 2020.

Speaker Change: Before handing it over to Mark, I wanted to quickly touch on our most recent corporate sustainability report that was published last week.

Mark S. Scucchi: This report continues to showcase the company's resilience as a safe, low-cost natural gas producer with an enviable emissions profile.

Mark S. Scucchi: Range had a great year for safety with zero employee incidents for the year.

Mark S. Scucchi: Range also continued its strong environmental performance, driving a 67% reduction in methane emissions intensity over the past five years, reaching just under 0.02% or more than 90% below the EPA's methane fee threshold.

Dennis Degner: We look forward to discussing these and other results during future meetings.

Mark S. Scucchi: We look forward to discussing these and other results during future meetings.

Dennis Degner: So where does that leave us, is we're more than halfway through 2024. As stated, we remain constructive on the outlook for natural gas and NGLs. But importantly, even in the presence of relatively high natural gas storage levels and the current commodity backdrop, the resilience of Range's business is on full display. Our ability to generate free cash flow through the cycles is underpinned by our large, contiguous, high-quality acres position, operational efficiencies, NGL uplift, diverse marketing portfolio, and talented team. We believe the future of natural gas and NGLs remains strong. And we believe range's position will degenerate substantial value for shareholders in the years ahead.

Speaker Change: So where does that leave us is we're more than halfway through 2024.

Dennis L. Degner: As stated, we remain constructive on the outlook for natural gas and NGLs. But importantly, even in the presence of relatively high natural gas storage levels and the current commodity backdrop, the resilience of Range's business is on full display. Our ability to generate free cash flow through the cycles is underpinned by our large, contiguous, high-quality acreage position, operational efficiency, and G.O. Lovelace.

Speaker Change: As stated, we remain constructive on the outlook for natural gas and NGLs.

Speaker Change: But importantly, even in the presence of relatively high natural gas storage levels and the current commodity backdrop, the resilience of Range's business is on full display.

Speaker Change: Our ability to generate free cash flow through the cycles is underpinned by our large, contiguous, high-quality acreage position.

Dennis L. Degner: Diverse Marketing Portfolio and Talented Team. We believe the future of natural gas and NGLs remains strong, and we believe Range is positioned well to generate substantial value for shareholders in the years ahead. I'll now turn it over to Mark to discuss the finances. Thanks, Jenna.

Speaker Change: Operational Efficiencies.

Speaker Change: and Geo Uplift.

Speaker Change: Diverse Marketing Portfolio, and Talented Team.

Speaker Change: We believe the future of natural gas and NGLs remains strong, and we believe Range is positioned well to generate substantial value for shareholders in the years ahead.

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

Mark Scucchi: Thanks, Dennis. With the first half of 2024 behind us, range is making steady progress executing a disciplined investment program, prudent for this year and forward thinking for next year. Range's most fundamental objective is to safely and consistently generate cash flow for stakeholders. Our program for 2024 was designed to successfully navigate fluctuating commodity prices while continuing to generate free cash flow, pay dividends, buy back shares, and repurchase debt, while investing in the long-term development of our high-quality assets. As mentioned during our last call, Range has an efficient plan to maintain steady production this year, with the flexibility to adapt to near-term commodity prices and resulting economics, while also positioning our long-term business for eventual growth as demand increases from domestic and international customers.

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

Mark S. Scucchi: With the first half of 2024 behind us, Range is making steady progress executing a disciplined investment program prudent for this year and forward-thinking for next year. Range's most fundamental objective is to safely and consistently generate cash flow for its stakeholders. Our program for 2024 was designed to successfully navigate fluctuating commodity prices while continuing to generate free cash flow, pay dividends, buy back shares, and repurchase debt, while investing in the long-term development of our high-quality assets.

Mark S. Scucchi: Thanks, Dennis.

Mark S. Scucchi: With the first half of 2024 behind us, Range is making steady progress executing a disciplined investment program prudent for this year and forward thinking for next year.

Mark S. Scucchi: Range's most fundamental objective is to safely and consistently generate cash flow for its stakeholders.

Mark S. Scucchi: Our program for 2024 was designed to successfully navigate fluctuating commodity prices while continuing to generate free cash flow, pay dividends, buy back shares, and repurchase debt, while investing in the long-term development of our high-quality assets.

Mark S. Scucchi: As mentioned during our last call, Range has an efficient plan to maintain steady production this year, with the flexibility to adapt to near-term commodity prices and resulting economics, while also positioning our long-term business for eventual growth as demand increases from domestic and international customers. As incremental demand materializes in-basin, near-basin, and farther downstream, Range has to cost structure, inventory, and infrastructure to remain a reliable long-term energy supplier. Results of the second quarter continue to highlight the business strengths generated by Range's production mix and transportation portfolio. The realized price per unit of production before NYMEX hedging was $0.51 above NYMEX.

Mark S. Scucchi: As mentioned during our last call,

Mark S. Scucchi: Range has an efficient plan to maintain steady production this year with the flexibility to adapt to near-term commodity prices and resulting economics while also positioning our long-term business for eventual growth as demand increases from domestic and international customers.

Mark Scucchi: As incremental demand materializes in basin, near basin, and farther downstream, Range has the cost structure, inventory, and infrastructure to remain a reliable long-term energy.

Mark S. Scucchi: As incremental demand materializes in-basin, near-basin, and farther downstream, Range has to cost structure, inventory, and infrastructure to remain a reliable long-term energy supplier.

Mark S. Scucchi: De Supplier. Results of the second quarter continue to highlight the business strengths generated by ranges production mix and transportation portfolio. Realized price per unit of production before NIMX hedging was 51 cents above NIMX Henry Hub, prices as a byproduct of our diversified mix and production and sales outlets. Including edges, range realized $3.10 per NCSE or $1.22 cents above NIMX Henry Hub, prices. Resilient pricing yielded second quarter cash margins per unit of production of $1.22, a healthy 37% margin, resulting in cash flow before working capital of approximately $237 million. Cash flow for the quarter was allocated to $175 million in capital investments, the repurchase of $48 million in senior notes, along with roughly $19 million in dividends and $20 million in common shares repurchased.

Mark S. Scucchi: Results of the second quarter continue to highlight the business strengths generated by Range's production mix and transportation portfolio.

Mark S. Scucchi: realized price per unit of production before NYMEX hedging was 51 cents above NYMEX-Henry Hub prices as a byproduct of our diversified mix and production and sales outlets.

Mark S. Scucchi: Henry Hub prices, as a byproduct of our diversified mix and production and sales outlook, including hedges, range realized $3.10 per MCFE or $1.22 above NYMEX and rehab prices. Resilient pricing yielded second quarter cash margins per unit of production of $1.22, a healthy 37% margin, resulting in cash flow before working capital of approximately $237 million. Cash flow for the quarter was allocated to $175 million in capital investment, the repurchase of $48 million in senior notes, along with roughly $19 million in dividends and $20 million in common share repurchase.

Mark S. Scucchi: Including hedges, Range realized $3.10 per MCFE or $1.22 above NYMEX and rehab prices.

Mark S. Scucchi: Resilient pricing yielded second quarter cash margins per unit of production of $1.22, a healthy 37% margin.

Mark S. Scucchi: resulting in cash flow before working capital of approximately $237 million.

Mark S. Scucchi: Cash flow for the quarter was allocated to $175 million in capital investments.

Mark S. Scucchi: The repurchase of $48 million in senior notes, along with roughly $19 million in dividends and $20 million in common shares repurchased.

Mark Scucchi: Cash margins were generated by diverse sales and a right size hedging program, but also by continued deliberate focus on unit costs. During the second quarter, total cash unit costs were $1.88, down 7 cents from the first quarter. Decreases in interest expense and G&A are a byproduct of reduced debt and thoughtful spending. Gathering processing and transport for the second quarter declined $5 cents from last quarter and is a function of prevailing commodity prices and timing of NGL cargo. Second quarter NGL market prices declined, reducing processing costs, and with lower natural gas prices we also experienced lower fuel and electricity costs, all right-way risk contract elements that maintain margins.

Mark S. Scucchi: Cash margins were generated by diverse sales and a right-sized hedging program but also by continued deliberate focus on unit costs. During the second quarter, total cash unit costs were $1.88, down 7 cents from the first.

Mark S. Scucchi: Cash margins were generated by diverse sales and a right-sized hedging program, but also by continued deliberate focus on unit costs.

Mark S. Scucchi: During the second quarter, total cash unit costs were $1.88.

Mark S. Scucchi: Decreases in interest expense and GNA are a byproduct of reduced debt and thoughtful spending. Gathering, Processing, and Transport for the second quarter declined 5 cents from last quarter and is a function of prevailing commodity prices and timing of NGL cargo. In the second quarter, NGL market prices declined, reducing processing costs. And with lower natural gas prices, we also experience lower fuel and electricity costs, all right-way risk contract elements that maintain margin; ranges in jail sales benefit from direct access to international markets out of the East Coast. One cargo loading occurred in the first days of July.

Mark S. Scucchi: Down 7 cents from the first quarter.

Mark S. Scucchi: Decreases in interest expense and G&A are a byproduct of reduced debt and thoughtful spending.

Mark S. Scucchi: Gathering, Processing, and Transport for the second quarter declined five cents from last quarter and is a function of prevailing commodity prices and timing of NGL cargoes.

Mark S. Scucchi: Second quarter, NGL market prices declined, reducing processing costs, and with lower natural gas prices, we also experienced lower fuel and electricity costs, all right-way risk contract elements that maintain margins.

Mark Scucchi: Ranges in G&A sales benefit from direct access to international markets out of the East Coast. One cargo loading occurred in the first days of July, as such the volumes to be loaded were inventory at quarter end with the GPNT costs and revenues in recognized in July, which should bring third quarter GPNT back towards midpointed guidance.

Mark S. Scucchi: Range's NGL sales benefit from direct access to international markets out of the East Coast.

Mark S. Scucchi: As such, the volumes to be loaded were inventory at quarter end, with the GP&T costs and revenues being recognized in July, which should bring third quarter GP&T back to the midpoint of guidance. Right after safety and sound environmental practices, capital allocation is among the most important corporate responsibilities. As you can see, during the second quarter, we continued to carefully balance funding of prudent investments in the business with returns of capital while maintaining financial. Prudent investment, to us, is responsive to both the near-term realities of commodity prices while also investing in the future to be prepared for the approaching growth in natural gas demand.

Mark S. Scucchi: One cargo loading occurred in the first days of July . As such, the volumes to be loaded were inventory at quarter end, with the GP&T costs and revenues being recognized in July , which should bring third quarter GP&T back towards midpoint of guidance.

Mark Scucchi: Right after safety and sound environmental practices, capital allocation is among the most important corporate responsibilities. As you can see, during the second quarter, we continue to carefully balance funding of prudent investments in the business with returns of capital, while maintaining financial strength. Prudent investment to us is responsive to both near-term realities of commodity prices while also investing in the future to be prepared for the approaching growth in natural gas demand. With low full cycle costs, Range has been able to generate pre-cash flow while investing in modest inventory to enable efficient growth when the market calls for it.

Speaker Change: Right after safety and sound environmental practices, capital allocation is among the most important corporate responsibilities.

Speaker Change: As you can see during the second quarter, we continue to carefully balance funding of prudent investments in the business with returns of capital while maintaining financial strength.

Speaker Change: Prudent investment, to us, is responsive to both the near-term realities of commodity prices, while also investing in the future, to be prepared for the approaching growth in natural gas demand.

Mark S. Scucchi: At low full cycle costs, Range has been able to generate free cash flow while investing in modest inventory to enable efficient growth when the market calls for it. At the same time, we prioritize financial strength so that we can make opportunistic decisions.

Speaker Change: With low full cycle costs, Range has been able to generate free cash flow while investing in modest inventory to enable efficient growth when the market calls for it.

Mark Scucchi: At the same time, we prioritize financial strength so that we can make opportunistic decisions. That financial strength enables Range to execute what has been a very efficient share repurchase program, and it's a program we have greater flexibility to execute as we remain within our target debt level. Looking at the ballot sheet briefly, the notes do 2025 mature in less than one year. Those notes are easily covered by cash on hand, cash to be generated in coming quarters, and an undrawn revolving credit facility. Suffice it to say that we believe there is ample liquidity to efficiently retire this debt as the maturity data approaches.

Speaker Change: At the same time, we prioritize financial strength so that we can make opportunistic decisions.

Mark S. Scucchi: That financial strength enables Range to execute what has been a very efficient share repurchase program. And as a program, we have greater flexibility to execute as we remain within our target debt level. Looking at the ballot sheet briefly, the notes due 2025 mature in less than one year.

Speaker Change: That financial strength enables Range to execute what has been a very efficient share repurchase program. And it's a program we have greater flexibility to execute as we remain within our target debt levels.

Speaker Change: Looking at the ballot sheet briefly, the notes due 2025 mature in less than one year. Those notes are easily covered by cash on hand, cash to be generated in coming quarters, and an undrawn revolving credit facility.

Mark S. Scucchi: Those notes are easily covered by cash on hand, cash to be generated in coming quarters, and an undrawn revolving credit facility. Suffice it to say that we believe there is ample liquidity to efficiently retire this debt as the maturity date approaches. With a ratings upgrade from S&P this quarter and a positive outlook for Moody's, we believe the strength of Range's business is being recognized. One significant element of our financial strategy that provides a stabilizing effect to better enable efficient funding of investment is our thoughtfully constructed and carefully executed hedging program. We believe added predictability from appropriately sized hedges provides exposure to an improved long-term natural gas market while also increasing confidence in near-term forecasted cash flow.

Speaker Change: Suffice it to say that we believe there is ample liquidity to efficiently retire this debt as the maturity date approaches.

Speaker Change: With a ratings upgrade from S&P this quarter and a positive outlook for Moody's, we believe the strength of Range's business is being recognized.

Mark Scucchi: With ratings, business is being recognized. One significant element of our financial strategy that provides a stabilizing effect to better enable efficient funding of investments is our thoughtfully constructed and carefully executed hedging program. We believe added predictability from appropriately sized hedging provides exposure to improve long-term natural gas market dynamics while also increasing confidence in near-term forecast cash flow. A stable financial foundation enables better planned, more consistent, efficient operations while protecting the ballot sheet and can also create opportunities for reinvestment and shareholder returns. Range's hedging philosophy has produced successful results that have served the company well, and we expect will continue to do so in the future.

Speaker Change: One significant element of our financial strategy that provides a stabilizing effect to better enable efficient funding of investments is our thoughtfully constructed and carefully executed hedging program.

Speaker Change: We believe added predictability from appropriately sized hedging provides exposure to improve long-term natural gas market dynamics, while also increasing confidence in near-term forecasted cash flow.

Mark S. Scucchi: A Stable Financial Foundation enables better planned, more consistent, efficient operations while protecting the balance and can also create opportunities for reinvestment and shareholder returns. Range's hedging philosophy has produced successful results that have served the company well, and we expect it will continue to do so. Presently, Range has approximately 55% of second half 2024 natural gas hedged with an average floor price of $3.70, and in 2025, approximately 35% hedged with an average floor price of $3.90, providing Range with a stable base to consistently generate free cash flow through the market.

Speaker Change: A stable financial foundation enables better planned, more consistent, efficient operations.

Speaker Change: while protecting the balance sheet.

Speaker Change: and can also create opportunities for reinvestment and shareholder returns.

Speaker Change: Range's hedging philosophy has produced successful results that have served the company well and we expect will continue to do so in the future.

Mark Scucchi: Presently, Range has approximately 55% of second half 2024 natural gas hedged with an average for price of $3.70. And in 2025, approximately 35% hedged with an average for price of $3.90, providing range of stable base to consistently generate free cash flow through market cycles. Financial results rely on safe, efficient operations, and the range team executed another successful quarter, delivering planned production on budget.

Speaker Change: Presently, Range has approximately 55% of second half 2024 natural gas hedged with an average floor price of $3.70.

Speaker Change: And in 2025, approximately 35% hedged with an average floor price of $3.90.

Speaker Change: providing range of stable base to consistently generate free cash flow through market cycles.

Mark S. Scucchi: Financial results rely on safe, efficient operations, and the range team executed another successful quarter, delivering planned production on. As a reminder, the plan we announced for 2024 differs slightly from most others in the industry and at our capital official. Low full-cycle costs paired with advantaged marketing of our production generates meaningful margin at current commodity prices, meaning the range has options on how we redeploy capital into the drill bit, infrastructure like water facilities that can provide durable cost reduction for Low-Cost Lateral Extending Inventory Enhancing LAMP, among other attractive alternatives.

Speaker Change: Financial results rely on safe, efficient operations, and the range team executed another successful quarter, delivering planned production on budget.

Mark Scucchi: As a reminder, the plan we announced for 2024 differs slightly from most others in the industry. And at our capital efficiency, low full cycle cost paired with advantage marketing of our production generates meaningful margin at current commodity prices, meaning range has options, options on how we redeploy capital into the drill bit, infrastructure like water facilities that can provide durable cost reductions or low cost lateral extending inventory enhancing land, among other attractive alternatives. When comparing capital efficiency on a per unit of production basis or any similar metric, a year of depleting inventory can enhance optics in the short run for some.

Speaker Change: As a reminder, the plan we announced for 2024 differs slightly from most others in the industry, and at our capital efficiency,

Speaker Change: Low full cycle costs paired with advantaged marketing of our production generates meaningful margin at current commodity prices.

Speaker Change: meaning Range has options.

Speaker Change: options on how we redeploy capital into the drill bit.

Speaker Change: infrastructure, like water facilities, that can provide durable cost reductions.

Speaker Change: or low-cost, lateral-extending, inventory-enhancing land, among other attractive alternatives.

Mark S. Scucchi: When comparing capital efficiency on a per-unit of production basis or any similar metric, The Year of Depleting Inventory can enhance optics in the short run for some, but we believe laughingstocks, particularly in the face of expected growing demand, provide range shareholders greater leverage to improve in the market. Range's business plan continues to be executed on what we believe is the largest per share exposure to core Appalachian inventory, paired with a transport and sales portfolio delivering production across the U.S. and internationally, all underpinned by a strong financial foundation. We have the team, assets, and balance sheet to succeed through price cycles, and we believe the range business can and will continue to deliver significant value to investors. Thanks, Mark.

Speaker Change: When comparing capital efficiency on a per unit of production basis or any similar metric, a year of depleting inventory can enhance optics in the short run for some.

Mark Scucchi: We believe lasting efficiency, particularly in the face of expected growing demand, provides range shareholders greater leverage to improving markets. Range's business plan continues to be executed on what we believe is the largest per share exposure to core Appalachia inventory, paired with the transport and sales portfolio delivering production across the US and internationally, all underpinned by a strong financial foundation. We have the team, assets, and balance sheet to succeed through price cycles, and we believe the range of business can and will continue to deliver significant value to investors.

Speaker Change: We believe lasting efficiency.

Speaker Change: particularly in the face of expected growing demand provides range shareholders greater leverage to improving markets.

Speaker Change: Range's business plan continues to be executed on what we believe is the largest per share exposure to core Appalachia inventory, paired with a transport and sales portfolio delivering production across the U.S. and internationally, all underpinned by a strong financial foundation.

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

Mark Scucchi: Thank you.

Dennis Degner: Thanks, Mark. The first half of the year results for range reflect a consistent theme communicated in past quarters. Execution of another maintenance plus operational program as planned. Consistent advancement in our overall efficiencies generating free cash flow and prudent allocation of that cash flow, balancing returns of capital, further balance sheet improvements, and the optimal development of our world-class asset base.

Dennis L. Degner: The first half of the year results for Range reflect a consistent theme communicated in past quarters: execution of another Maintenance Plus Operational Program as planned, consistent advancement in our overall efficiency, generating free cash flow, and Pruden Allocation of that cash flow, balancing returns of capital, further balance sheet improvements, and the optimal development of our world-class asset base. You've heard us state this before, but we continue to believe the results communicated today showcase that Range's business is in the best place in company history, having de-risked a high-quality inventory measured in decades and translated that into a business capable of generating free cash flow through these types of cycles.

Dennis L. Degner: Dennis, back to you.

Dennis L. Degner: Thanks, Mark.

Dennis L. Degner: The first half of the year results for Range reflect a consistent theme communicated in past quarters.

Dennis L. Degner: Execution of another Maintenance Plus Operational Program, as planned.

Dennis L. Degner: Consistent advancement in our overall efficiencies.

Dennis L. Degner: Generating free cash flow.

Dennis L. Degner: and prudent allocation of that cash flow, balancing returns of capital, further balance sheet improvements, and the optimal development of our world-class asset base.

Dennis Degner: You've heard a state this before, but we continue to believe the results communicated today showcase that ranges businesses in the best place in company history, having de-risked a high quality inventory measured in decades and translated that into a business capable of generating free cash flow through these type of cycles.

Dennis L. Degner: You've heard us state this before, but we continue to believe the results communicated today showcase that Range's business is in the best place in company history.

Dennis L. Degner: having de-risked a high-quality inventory measured in decades and translated that into a business capable of generating free cash flow through these type of cycles.

Dennis Degner: But that let's open up the line for questions.

Dennis L. Degner: With that, let's open up the line for questions. Thank you, Mr. Degner. The question and answer session will now begin. If you would like to ask a question, please indicate by pressing the star key, then 1-1. If you are on a speakerphone, please pick up your handset before asking your question. If you would like to withdraw your question, you may do so by pressing star 11 again.

Operator: Thank you, Mr. Degner.

Speaker Change: With that, let's open up the line for questions.

Operator: The question and answer session will now begin. If you would like to ask a question, please indicate by pressing the star key, then one one. If you are on a speaker phone, please pick up your handset before asking your question. If you would like to withdraw your question, you may do so by pressing star one one again. One moment.

Speaker Change: Thank you, Mr. Degner. The question and answer session will now begin.

Speaker Change: If you would like to ask a question, please indicate by pressing the star key, then 1-1.

Speaker Change: If you are on a speakerphone, please pick up your handset before asking your question. If you would like to withdraw your question, you may do so by pressing star 11 again.

Operator: One moment. The first question is from Roger Read of Wells Fargo. Yeah, thank you. Good morning.

Speaker Change: One moment.

Roger Reed: The first question is from Roger Reed of Wells Fargo. Yeah, thank you. Good morning. Congratulations on the quarter.

Speaker Change: The first question is from Roger Read of Wells Fargo.

Roger David Read: Congratulations on the quarter. Um, Mark, I'd like to come back on some stuff you were saying there at the very end, some of the, you know, opportunities you listed to, you know, enhance margins, improve returns, etc. If we were to think about those in terms of, you know, the magnitude of what they can do for you but also sort of the timeline of achievability, how would that list of opportunities shake out? Yeah, good morning. It's a good question.

Roger David Read: Yeah, thank you. Good morning.

Mark S. Scucchi: Mark, I'd like to come back on some stuff you were saying there at the very end. Some of the opportunities you listed to, you know, it's called enhanced margins, improved returns, etc. If we were to think about those in terms of, you know, magnitude of what they can do for you, but also sort of the timeline of achievability. How would that how would that list of opportunities shake out? Yeah, good morning. It's a good question. And it's a broad question just because of the breadth of opportunity range has ahead of it. I think identified both have touched on various ways in which we can continue to drive down our cash unit costs structure as well as the capital efficiency.

Roger David Read: Congratulations on the quarter.

Roger David Read: Um, Mark, I'd like to come back on some stuff you were saying there at the very end, some of the, you know, opportunities you listed to, you know, let's call it enhance margins, improve returns, etc.

Speaker Change: If we were to think about those in terms of magnitude of what they can do for you, but also sort of the timeline of achievability, how would that list of opportunities shake out?

Mark S. Scucchi: And it's a broad question, just because of the breadth of opportunity Range has ahead of it. I think Dennis and I both have touched on various ways in which we can continue to drive down our cash unit cost structure, as well as capital efficiency. You've seen the team be very efficient on direct operating costs, LOE, you know, continued mindful execution out in the field. Water handling is a topic we consistently discuss, which touches on both improvements in LOE and our capital efficiency.

Speaker Change: Yeah, good morning. It's a good question and it's a broad question just because of the breadth of opportunity Range has ahead of it. I think Dennis, I both have touched on.

Speaker Change: various.

Speaker Change: [inaudible]

Mark Scucchi: You've seen the team be very efficient on direct operating costs, LOE. You know, continued mindful execution out in the field, water handling is a topic we consistently discuss, which touches on both improvements in LOE and our capital efficiency. So that's a day-to-day exercise by the team in the field, but it's also some modest capital investments, as you know. That was part of our capital allocation process for this year. Something we hadn't done in any size or consequence for a roughly a decade that blocked up nature of our acreage position is really a lot of patient handling and use of that infrastructure, and expanding that this year became timely.

Speaker Change: You've seen the team be very efficient on direct operating costs, LOE, you know, continued mindful execution out in the field. Water handling is a topic we consistently discuss, which touches on both improvements in LOE and our capital efficiency.

Mark S. Scucchi: So that's a day-to-day exercise by the team in the field, but it's also some modest capital investments. As you know, that was part of our capital allocation process for this year, something we hadn't done in any size or consequence for roughly a decade.

Speaker Change: So, that's a day-to-day exercise by the team in the field, but it's also some modest capital investments. As you know, that was part of our capital allocation process for this year, something we hadn't done in any size or consequence for roughly a decade. That blocked-up nature of our acreage position has really allowed efficient handling and use of that infrastructure.

Mark S. Scucchi: And with what we expect to be about a one year of better payback on that investment, it should pay back many years into the future. If you work the way down the cost structure, I think GTNT being a larger slide item is clearly an area of focus that's a focus for cost, but I think more importantly, it's about margins. It's about maintaining and enhancing that portfolio of sales outlets we have. So today it's a great outlet moving 80% of our gas out of the basin. But over time, we think that range will continue to have the opportunity to sell its molecules into strong end markets, be it today with our existing production profile or when the market calls for it and there's incremental production.

Speaker Change: and expanding that this year became timely and with what we expect to be about a

Mark S. Scucchi: That blocked-up nature of our acreage position has really allowed efficient handling and use of that infrastructure, and expanding that this year became timely, and with what we expect to be about a year of better payback on that investment. It should pay back many years into the future. As you work your way down the cost structure, I think GP&T being a larger slide item is clearly an area of focus. That's a focus on cost, but I think more importantly, it's about margins.

Speaker Change: One year of better payback on that investment. It should pay back many years into the future as you work your way down the cost structure. I think GP&T being a larger slide item is clearly an area of focus. That's a focus for cost, but I think more importantly, it's about margins.

Mark S. Scucchi: It's about maintaining and enhancing that portfolio of sales outlets we have. So today, it's a great outlet moving 80% of our gas out of the basin. But over time, we think that Range will continue to have the opportunity to sell its molecules into strong end markets, be it today with our existing production profile or when the market calls for it and there's incremental production. We think that we will have the ability to move those molecules to strong end markets as well, be it natural gas or natural gas.

Speaker Change: It's about maintaining and enhancing that portfolio of sales outlets we have. So today it's a great outlet, moving 80% of our gas out of the basin. But over time, we think that Range will continue to have the opportunity to sell its molecules into strong end markets.

Speaker Change: be it today with our existing production profile, or when the market calls for it and there's incremental production, we think that we will have the ability to move those molecules to strong end markets as well, be it natural gas or natural gas liquids.

Mark Scucchi: We think that we will have the ability to move those molecules to strong end markets as well, be it natural gas or natural gas. liquids. Um, and then on the capital front, again, the common topics that come to mind are extending ladder links, which again you've seen us allocate a little bit of capital to the land, um, to be able to do that as well as just efficiently running crews this year, running two rigs and one for our crew, for example, is all it takes for Range to execute this program this year, all the steady, efficient maintenance program.

Mark S. Scucchi: And then on the capital front, again, the topics that come to mind are extending lateral links, which, again, you've seen us allocate a little bit of capital to the land to be able to do that, as well as just efficiently running crews this year. Running two rigs and one frat crew, for example, is all it takes for Range to execute this program this year.

Speaker Change: And then on the capital front, again, the common...

Speaker Change: Topics that come to mind are extending lateral links, which again you've seen us allocate a little bit of capital to the land.

Speaker Change: to be able to do that, as well as just efficiently running crews this year. Running two rigs and one frat crew, for example, is all it takes for Range to execute this program this year, hold a steady, efficient maintenance program, and potentially running those for a full 12 months, generate very modest growth into next year, given the inventory that we've built up over the last two years. So all those factors together play into not just one specific area of improvement, but whittling down across the cost structure and the capital efficiency.

Mark S. Scucchi: We'll have a steady, efficient maintenance program and potentially run those for a full 12 months, generating very modest growth into next year, given the inventory that we've built up over the last few years. So, all those factors together play into not just one specific area of improvement but a whittling down across the cost structure and the capital. No, I appreciate that clarification. And then the other question I had more sort of a, you know, what is the tripwire or whatever it is you think about setting up your hedging for 2025?

Mark Scucchi: And potentially running those for a full 12 months, generally, you know, very, very modest growth into next year, given the inventory that we've built up of the last two years. So all those factors together plan to not just one specific area of improvement, but whittling down across the cost structure and the capital efficiency.

Roger Reed: No, I appreciate that clarification.

Mark Scucchi: And then the other question I had, more sort of a, you know, what is the trip wire, whatever, but you think about setting up your hedging for 2025. I mean, obviously you're 35% there, but if we think about getting kind of equivalent to this year, is there, is that something that's going to be episodic or, you know, is there a price level you'd feel more comfortable with? Or, you know, as you think about the macro potentially 25 and a little better supply demand balance across the country, do you want to be more patient on hedging?

Speaker Change: No, I appreciate that clarification. And then the other question I had more sort of a, you know, what, what is the, the tripwire or whatever, but as you think about setting up your hedging for 2025,

Mark S. Scucchi: I mean, obviously, you're 35% there. But if we think about getting kind of an equivalent to this year, is there, is that something that's going to be episodic? Or is there a price level you'd feel more comfortable with?

Speaker Change: I mean, obviously you're 35% there, but if we think about getting kind of equivalent to this year, is there...

Speaker Change: Is that something that's going to be episodic, or is there a price level you'd feel more comfortable with, or as you think about the macro, potentially $25 on a little better supply-demand balance across the country, do you want to be more patient on hedging? How are you thinking about that?

Mark S. Scucchi: Or as you think about the macro, potentially 25 and a little better supply-demand balance across the country, do you want to be more patient on hedging? How are you thinking about that? Yeah, I'll start with we feel very good about where the 2025 book stands today. Just backing up to the philosophy, you know, we're running an enterprise, a going concern, with 30 plus years of drilling inventory. So, you know, this is about managing risk in the business prudently while not hedging away the upside in the cash flow. So to that end, the philosophy is to try to cover the fixed costs to maintain steady operations. Picking up and dropping crews and things is extremely inefficient and costly.

Mark S. Scucchi: How are you thinking about that? Yeah, I'll start with we feel very good about where the 2025 book stands today. Just backing up to the philosophy, you know, we're running an enterprise that going concern 30 plus years of drilling inventory. So, you know, this is about managing risk and the business printably while not hedging away the upside in the cash flow. So to that end, the philosophy is to try to cover the fixed costs to maintain steady operations. Picking up and dropping crews and things is extremely inefficient and costly. So having more stable predictability of that cash flow, we think adds a lot of value.

Speaker Change: Yeah, I'll start with we feel very good about where the 2025 book stands today.

Speaker Change: Just backing up to the philosophy, you know, we're running an enterprise, a going concern, 30-plus years of drilling inventory. So, you know, this is about managing risk in the business prudently while not hedging away the upside in the cash flow. So, to that end, the philosophy is to try to cover the fixed costs, to maintain

Speaker Change: steady operations. Picking up and dropping crews and things is extremely inefficient and costly, so having more stable predictability of that cash flow we think adds a lot of value.

Mark Scucchi: So, with that in mind, how do you shape 2025? Well, we feel like the book was designed to do that at the prices we were able to lock in. It's also shaped based on the fundamentals as we see them unfolding over the next 12 and 18 months. LNG in service is clearly a focus in the headlines. Some facilities are early, and some facilities may be delayed. So as we see those opportunities becoming reality late this year and early next year, the incremental positions that were added are really front-loaded the first half of 2025. And they're in the form of callers so that we can provide some downside protection while retaining positive exposure to improved gas prices in the first half of the year.

Mark S. Scucchi: So having more stable predictability of that cash flow, we think, adds a lot of value. So with that in mind, how do you shape 2025? Well, we feel like the book was designed to do that at the prices we were able to lock in. It's also shaped based on the fundamentals as we see them unfolding over the next 12 and 18 months. LNG in service is clearly a focus in the headlines. Some facilities are early, and some facilities may be delayed.

Speaker Change: So, with that in mind, how do you shape 2025? Well, we feel like the book was designed to do that at the prices we were able to lock in. It's also shaped based on the fundamentals as we see them unfolding over the next 12 and 18 months.

Speaker Change: LNG in service is clearly a focus in the headlines.

Mark S. Scucchi: So as we see those opportunities becoming reality late this year and early next year, the incremental positions that were added are really front and loaded for the first half of 2025. And they're in the form of collars so that we can provide some downside protection while retaining positive exposure to improved gas prices in the first half. So that's that's really how we think about it. Appreciate that. Thank you. Thank you. Our next question comes from Michael Scialla of Stevens. Good morning, everybody.

Speaker Change: Some facilities are early and some facilities may be delayed. So as we see those opportunities becoming a reality late this year and early next year, the incremental positions that were added are really front and loaded. The first half of 2025.

Speaker Change: and they're in the form of collars so that we can provide some downside protection while retaining positive exposure to improved gas prices in the first half of the year. So that's that's really how we think about next year.

Mark Scucchi: So that's really how we think about next year.

Roger Reed: Appreciate that.

Roger Reed: Thank you.

Speaker Change: Appreciate that, thank you.

Speaker Change: Thank you. Thank you.

Michael Scialla: Our next question comes from Michael Skjala of Stevens.

Michael Stephen Scialla: Dennis and Mark, you both mentioned, you see the improving natural gas fundamentals moving forward, um, and your 24 production guidance is moving to the high end of the range. If that doesn't play out, I was curious what would change to your plans you're contemplating, or do you feel like? with the natural gas liquids revenues, you're really not the company that would need to adjust your plans, be it curtailing production or delaying any more turn in line. Yeah, good morning, Michael.

Speaker Change: Our next question comes from Michael Scialla of Stevens.

Michael Scialla: Morning, everybody. Yes, and Mark, you both mentioned, you know, you see the improving natural gas fundamentals move forward. And your 24 production guidance is moving to the high end of the range. If that doesn't play out. I was curious what would change to your plans. You're contemplating, or do you feel like? with the natural gas liquids revenues that you're really not the company that would need to adjust your plans, be it curtailing production or delaying any more turning lines.

Michael Stephen Scialla: Good morning, everybody.

Speaker Change: Thank you very much. Thank you.

Speaker Change: Dennis and Mark, you both mentioned, you know, you see the improving natural gas fundamentals moving forward.

Speaker Change: and your 24 production guidance is moving to the high end of the range. If that doesn't play out,

Speaker Change: I was curious what change to your plans you're contemplating, or do you feel like...

Speaker Change: with the natural gas liquids revenues that you're really not the company that would need to to adjust your plans be it curtailing production or delaying any more turning lines.

Michael Scialla: Yeah, good morning, Michael. I'll start by, you know, really maybe reiterating a bit of the approach that we communicated for this year's program. And, you know, we're at a very lean, what we would call, you know, base level type, activity level and program for 24, which we think is a kind of a base level way of thinking about the business on the go forward there or we'll call us somewhat maintenance plus. So the two rigs flat plus the one base brat crew. And so it's generating that, you know, 35 to 30 to 45 million dollars of in-process inventory this year, very similar to last year.

Dennis L. Degner: I'll start by, you know, really maybe reiterating a bit of the approach that we communicated for this year's program. And, you know, we're at a very lean, what we would call, you know, base level type activity level and program for 24, which we think is a kind of base level way of thinking about the business going forward. There, or what we'll call a somewhat maintenance plus, so the two rigs are flat plus the one base frack crew.

Speaker Change: Yeah, good morning, Michael. I'll start by, you know, really maybe reiterating a bit of the approach that we communicated for this year's program, and, you know, we're at a very lean, what we would call, you know, base level type activity level and program for 24, which

Speaker Change: We think it's a kind of a base level way of thinking about the business on the go forward there, or what we'll call a somewhat maintenance plus. So, so two rigs flat plus the one base frack crew. And so it's generating that.

Dennis L. Degner: And so it's generating that, you know, 35 to 30 to 45 million dollars of in-process inventory this year, very similar to last year. And so, to answer your question, as we start to think about 2025, we wanted to set ourselves up with flexibility and really good options. And so, by setting it up that way, we have the ability to take some of that inventory and reshape our production profile for 2025. And ultimately, we know that'll have an impact on 26 and the go forward.

Speaker Change: you know, $30 to $45 million of in-process inventory this year, very similar to last year. And so to answer your question, as we start to think about 2025, you know, we wanted to set ourselves up with flexibility and really good options.

Michael Scialla: And so to answer your question, as we start to think about 2025. You know, we wanted to set ourselves up with flexible flexibility and really good options. And so by sitting it up that way, we had the ability to take some of that inventory and reshape our production profile for 2025. And, ultimately, we know that'll have an impact for 26 and the go forward. But if we also see, you know, further delays and energy facilities or anything else that puts commodities at risk, we could, you know, consider how to use that inventory differently. But I think when we, when we look at the capital program for this year, you know, at that 620 to 670 million dollar level.

Speaker Change: And so, by setting it up that way, we have the ability to take some of that inventory and reshape our production profile for 2025, and ultimately, we know that will have an impact for 2026 and to go forward.

Speaker Change: But if we also see, you know, further delays in LNG facilities or anything else that puts commodities at risk,

Dennis L. Degner: But if we also see, you know, further delays and LNG facilities or anything else that puts commodities at risk, we could consider how to use that inventory differently. But I think when we look at the capital program for this year, at that 620 to 670 million dollars level, I mean, clearly, there are going to be some aspects like the water infrastructure that Mark touched on just a few moments ago that are going to be more one-time, one-off capital investments in nature once a decade, if you will.

Speaker Change: We could, you know, consider how to use that inventory differently.

Speaker Change: But I think when we when we look at the capital program for this year, you know, at that $620 to $670 million level, I mean, clearly, there are going to be some aspects like the water infrastructure that Mark touched on

Michael Scialla: I mean, clearly there're going to be some aspects like the water infrastructure that March touched on just a few moments ago that are going to be more one one time, one off, you know, capital investments in nature, you know, once a decade, if you will. But really, that's a decent way of thinking about our program and then the ability to toggle and use that inventory based on what we see from a commodity standpoint. There's a lot of reasons to believe that this is going to look better. I think in 2025, though, there's too many demand components that you can point to, and I think, you know, power is clearly one of them.

Mark S. Scucchi: just a few moments ago that are going to be more one-off capital investments in nature once a decade, if you will.

Dennis L. Degner: But really, that's a decent way of thinking about our program and then the ability to toggle and use that inventory based upon what we see from a commodity standpoint. There are a lot of reasons to believe that this is going to look better, I think, in 2025.

Speaker Change: But really, that's a decent way of thinking about our program and then the ability to toggle and use that inventory based upon what we see from a commodity standpoint.

Michael Stephen Scialla: There are too many demand components that you can point to, and I think, you know, power is clearly one of them. And even when you just look at the, you know, incremental B and a half a day on the power burn side that's played into natural gas contribution just year to date. And so we think there are a lot of reasons to be excited about 2025. We've got the right inventory set up and a program that's lean to allow us to reshape production in 2025 based on what we see from the market. I appreciate that.

Speaker Change: There's a lot of reasons to believe that this is going to look better, I think, in 2025, though. There's too many demand components that you can point to, and I think, you know, power is clearly one of them. And even when you just look at the, you know, incremental beat-and-a-half-a-day on the power burn side,

Michael Scialla: And even when you just look at the incremental being a half a day on the power burn side, that's played into natural gas's contribution just year to date. And so we think there's a lot of reasons to be excited about 2025. We've got the right inventory setup and program that's lean to allow us to reshape production in 25 based on what we see from the market.

Speaker Change: played into natural gas's contribution just year-to-date. And so, we think there's a lot of reasons to be excited about 2025. We've got the right inventory set up and program that's leaned to allow us to reshape production in 2025 based upon what we see from the market.

Michael Scialla: Appreciate that.

Michael Stephen Scialla: I just want to get your thoughts on the political front, you know, the federal judge blocking the pause on LNG facilities and spring quarter return the Chevron doctor and that make you any more optimistic on the regulatory environment, anything specific you might think to be done with an Appalachia that would improve maybe takeaway capacity or anything along those lines. Well, I think when you look at the demand component, I'll maybe start with the way we ended maybe the prior question. But I think when you look at all of the variables that are playing into the demand conversation on the go forward.

Dennis L. Degner: I just want to get your thoughts on the political front, you know, with the federal judge blocking the pause on LNG facilities and the Supreme Court overturning the Chevron doctrine. Does that make you any more optimistic about the regulatory environment? Anything specific you might think could be done within Appalachia that would improve, maybe take away capacity or anything along those lines?

Speaker Change: Appreciate that. I just want to get your thoughts on the political front, you know, with the...

Speaker Change: Federal judge blocking the pause on LNG facilities and Supreme Court overturned the Chevron doctrine. Does that make you any more optimistic on the regulatory environment? Anything specific you might think could be done within Appalachia that would improve maybe takeaway capacity or anything along those lines?

Dennis L. Degner: Well, I think when you look at the demand component, I'll maybe start with the way we ended maybe the prior question, but I think when you look at all the variables that are playing into the demand conversation on the go forward, you know, we've said in maybe in smaller group meetings, it's hard to see how you, when you think about the political avenue, you almost feel like you get to a same place, maybe through a different path with, regardless of what happens with the administration here in the go forward, meaning you have, if you're going to further bolster the grid, electrify what we do here in the lower 48, if you're talking about data centers and AI, you have to see natural gas playing a more prominent role in that conversation for low cost, reliable power generation. So when we look at, and that then follows with a real serious conversation about permit reform.

Speaker Change: Well, I think when you look at the demand component, I'll maybe start with the way we ended maybe the prior question, but I think when you look at all of the variables that are playing into the demand conversation on the go forward,

Michael Scialla: You know, we've said in maybe in smaller group meetings, it's hard to see how you, when you think about the political avenue, you almost feel like you get to a same place, maybe through a different path with regardless of what happens with the administration here in the go forward. Meaning you had, if you're going to further bolster the grid, electrify what we do here in the lower 48. If you're talking about data centers and AI, you have to see natural gas playing a more prominent role in that conversation for low-cost, reliable power. Generation. So when we look at, and that then follows with a real serious conversation about permit reform.

Speaker Change: You know, we've said in maybe in smaller group meetings, it's hard to see how you, when you think about the political avenue, you almost feel like you get to a same place, maybe through a different path with, regardless of what happens with the administration.

Speaker Change: here in the go forward. Meaning, if you're going to further bolster the grid, electrify what we do here in the lower 48, if you're talking about data centers and AI, you have to see natural gas playing a more prominent role in that conversation for low-cost, reliable power generation.

Speaker Change: So, when we look at, and that then follows with a real serious conversation about permit reform.

Dennis L. Degner: So I think it was encouraging to see, just within the last day or two here, the announcement from Senator Manchin and Barrasso over some permit reform language that's being moved forward, and we think those are the right signals. And we would look at that as there are others clearly, both in D.C. and also on the home front here, companies like Range that see that there's a real need for us to play an expanded role.

Michael Scialla: So I think it was encouraging to see just within the last day or two here the announcement from Senator Manchin and Buraso over some permit reform language that's being moved forward. And we think those are the right signals, and we would look at that as there are others clearly both in DC and also on the home front here, like companies like Range that see that. There's a real need for us to play an expanded role when you look at our inventory. We have the ability to do that, especially with our asset, the asset base, having the ability to feed supply gas into the PJ and market, which serves around 65 million people.

Speaker Change: So, I think it was encouraging to see, just within the last day or two here, the announcement from Senator Manchin and Barrasso over some permit reform language that's being moved forward, and we think those are the right signals, and we would look at that as there are others clearly, both in D.C. and also on the home front here, like companies like Range that see that

Dennis L. Degner: When you look at our inventory, we have the ability to do that, especially with our asset base, having the ability to feed supply gas into the PJM market, which serves around 65 million people. So we see a lot of positive outlook, but it's going to really need to be supported by some permit reform for sure. Great. Thanks, Dennis. Thank you, Michael.

Speaker Change: There's a real need for us to play an expanded role. When you look at our inventory, we have the ability to do that, especially with our asset base having the ability to feed supply gas into the PJM market, which serves around 65 million people. So

Michael Stephen Scialla: So, we see a lot of positive outlook, but it's going to really need to be supported by some permit reform for sure.

Speaker Change: We see a lot of positive outlook, but it's going to really need to be supported by some permit reform for sure.

Michael Stephen Scialla: Great.

Michael Scialla: Thanks, Dennis.

Michael Scialla: Thank you, Michael.

Michael Scialla: Thank you.

Speaker Change: Great. Thanks, Dennis.

Speaker Change: Thank you, Michael. Thank you.

Doug Leggate: Our next question comes from Doug Leggate of Wolf Research. Hey, good morning, guys. Thanks for having me on. How's everybody doing? Good. Good morning, guys.

Operator: Thank you. Our next question comes from Doug Leggett of Wolf Research. Hey, good morning guys. Thanks for having me on. How's everybody doing?

Speaker Change: Thank you.

Speaker Change: Our next question comes from Doug Leggett of Wolf Research.

Douglas George Blyth Leggate: Good morning, Doug. So, I guess, Mark, my first question might be for you, or whoever wants to take this, it's relating to takeaway capacity. Our understanding is that both some of the publics and the privates are not renewing a term takeaway or fixed takeaway as things kind of roll around for renewal, and I'm wondering how that opportunity sits for a company like yourself, given your inventory depth and why you think that might be the case, Any kind of magnitude you can offer and timing would be really helpful, and I've got a follow-up. Yeah, good morning, Doug.

Douglas George Blyth Leggate: Hey, good morning guys. Thanks for having me on. How's everybody doing?

Doug Leggate: So I guess Mark, my first question might be for you or whoever wants to take this is relating to take away capacity. Our understanding is that both some of the public and the private are not renewing a term takeaway or fix that takeaway as things kind of roll around for renewal. And I'm wondering how that opportunity sits for a thumbnail yourself, giving your inventory depth and why you think that might be the case. In other words, why those folks are not taking the takeaway any kind of magnitude you can offer on timing would be really helpful, and I've got to follow up with.

Speaker Change: Good. Good morning, Doug.

Douglas George Blyth Leggate: So I guess Mark my first question might be for you or whoever wants to take this it's relating to take away capacity

Speaker Change: Our understanding is that both some of the public's and the private's are not renewing a term takeaway or fixed takeaway.

Speaker Change: as things kind of roll around for renewal and I'm wondering how that opportunity sits for a company like yourself given your inventory depth and why you think that might be the case in other words why those folks are not taking the takeaway any kind of magnitude you can offer and timing would be really helpful and I've got a follow-up

Mark Scucchi: Yeah, good morning, Doug. That's, that's a good question because the, the most common understanding, which is accurate, is in aggregate. The pipelines coming out of Appalachia are largely full. We're focused on what range can access and over time what range can utilize. So today, we have a great portfolio, but we think there's a lot of opportunities for range to use, even existing in capacity coming out of the basin. Even before we think about what eventually will be Brownfield expansions and eventually even perhaps some new pipelines, but just to start out, you know, there's, there's capacity that either underutilized was not signed up for firm transport.

Mark S. Scucchi: That's a good question, because the most common understanding, which is accurate, is that in aggregate, the pipelines coming out of Appalachia are largely We're focused on what range, and over time, what Range can utilize. So today we have a great portfolio, but we think there's a lot of opportunities for Range to use existing capacity coming out of the basin, even before we think about what will eventually be brownfield expansions and eventually, perhaps, some new pipelines.

Speaker Change: Yeah, good morning. Doug, that's a good question because the most common understanding, which is accurate, is that in aggregate, the pipelines coming out of Appalachia are largely full.

Speaker Change: We're focused on what Range can access.

Speaker Change: and over time what Range can utilize. So today we have a great portfolio, but we think there's...

Speaker Change: A lot of opportunities for range to use, even existing capacity coming out of the basin, even before we think about what eventually will be brownfield expansions, and eventually even perhaps some new pipelines. But just to start out, there's capacity that's either underutilized,

Mark S. Scucchi: But just to start out, there's capacity that's either underutilized um, was not signed up for firm transport, so it's just used on a shorter term nature. There's capacity that some companies did sign up under firm and, through various proceedings, have rejected those contracts or re-marketed them, and laid them off, so the pipeline exists, so it really comes down to a market share question. And then that leads you down the road of who has the inventory to use it for the next 5, 10, 15 plus years to be able to stand behind it, underwrite that capacity, and fully use it for an extended term.

Mark Scucchi: So it's just used on short-term nature. There's capacity that some companies did sign up under firm and, through various proceedings, have rejected those contracts or remarked at them and laid it off. So the pipelines exist. So it really comes down to a market share question. And then that leads you down the road of who has the inventory to use it for the next 5, 10, 15 plus years to be able to stand behind it under right that capacity and fully use it for an extended term. So that's, that's clearly an opportunity for range at the appropriate time to grow and utilize capacity.

Speaker Change: um, was not signed up for firm transport, so it's just used on shorter term nature. There's capacity that, um, some companies did sign up under a firm and through various proceedings have rejected those contracts or re-marketed them and laid it off.

Speaker Change: So the pipeline exists, so it really comes down to a market share question.

Speaker Change: And then that leads you down the road of who has the inventory to use it for the next 5, 10, 15 plus years to be able to stand behind it, underwrite that capacity and fully use it for an extended term.

Mark S. Scucchi: So that's clearly an opportunity for Range at the appropriate time to grow and utilize capacity. It's not only a question of what capacity Range has to take on or chooses to take on itself, but our end customers have their own capacity. So you can sell to the end market, anywhere across the lower 48, essentially, to those customers that have their own, be it utilities or marketers or you name it.

Speaker Change: So that's clearly an opportunity for Range at the appropriate time to grow and utilize capacity. It's not only a question of what capacity Range has to take on or chooses to take on itself, but our end customers have their own capacity. So you can sell to end markets.

Mark S. Scucchi: It's not only a question of what capacity range has to take on or chooses to take on itself, but our end customers have their own capacity. So you can sell to you and market. and we're across lower 48, essentially, to those customers that have their own, be it utilities or marketers or you name it. So MVP, while we don't have capacity on it, holders of MVP capacity and number of them are existing customers via other paths, so we can expand those relationships and sell to them. And like I said, eventually to Dennis's point earlier, the simple needs of the population of industry, of reindustrialization in the lower 40s.

Speaker Change: and we're across lower 48 essentially.

Mark S. Scucchi: So MVP, while we don't have capacity on it, holders of MVP capacity, a number of them are existing customers via other paths, so we can expand those relationships and sell. And like I said, eventually, to Dennis's point earlier, the simple needs of the population, of industry, of reindustrialization in the lower 48, increased power demand, electrification across industries, there's going to have to be, on the electric side, whether you're talking distribution, power generation, and pipelines to get there.

Speaker Change: to those customers that have their own, be it utilities, or marketers, or you name it. So, MVP, while we don't have capacity on it, holders of MVP capacity, a number of them, are existing customers via other paths, so we can expand those relationships and sell to them.

Speaker Change: And like I said, eventually, to Dennis' point earlier, the simple needs of the population, of industry, of re-industrialization in the lower 48, increased power demand, electrification across industries, there's going to have to be expansions.

Mark Scucchi: 48 increased power demand electrification across industries, there's going to have to be expansions, both on the electric side with your talking distribution, power generation, and pipelines to get there. So Brownfield expansion's potentially new pipeline at some point. And then bringing it closer to home for range, the in base and the near base in this, as we term it sometimes, is significant demand. Again, to the power side of the equation or industrial that that represents a tremendous opportunity, even leveraging our existing portfolio, where a third of our gas goes to Midwest, for example, to areas where there's significant construction of industrial demand and plants of various types in nearby states.

Dennis L. Degner: Both on the electric side, whether you're talking distribution, power generation, and pipelines to get there. So brownfield expansions, potentially new pipeline at some point.

Mark S. Scucchi: So brownfield expansion is a potentially new pipeline. And then bringing it closer to home for range, the in-basin and near-basin, as we term it sometimes, is significant, um, again to the power side of the equation or industrial, and that represents a tremendous opportunity, even leveraging our existing portfolio where a third of our gas goes to the Midwest, to areas where there's significant construction of industrial demand and plants of various types in nearby states.

Dennis L. Degner: And then bringing it closer to home for range, the in-basin and near-basin, as we term it sometimes, is significant demand.

Dennis L. Degner: Again, to the power side of the equation, or industrial, that represents a tremendous opportunity, even leveraging our existing portfolio, where a third of our gas goes to the Midwest, for example.

Dennis L. Degner: to areas where there's significant construction of industrial demand and plants of various types in nearby states. So, great opportunity here, really underpinned by inventory and duration of range of story.

Mark S. Scucchi: So great opportunity here really underpinned by inventory and duration of range of story.

Mark S. Scucchi: So great opportunity here, really underpinned by inventory and duration of the range of story. Mark, forgive me for asking for a quick clarification, this is not my second question, but can you offer any kind of magnitude and timing? This is a very quick, you know, here's the number, here's the timing, how it impacts range.

Mark Scucchi: Mark, forgive me for asking for clarification. This is not my second question, but can you offer any kind of magnitude and timing. This is a very, you know, very quick. You know, here's the number, here's the timing, how it impacts range. I think perhaps it's a little bit early as we get a little closer to 2025 and think about and refine what that capital budget may look like. As we've said, growth is an option. It's a question of when, not if, so coordinating infrastructure, be it gathering, processing, compression, and longer-term transport, layered in with marketing to the customers in this relationship, you know, is all part of the process.

Speaker Change: Mark, forgive me for asking for a quick clarification, this is not my second question, but can you offer any kind of magnitude and timing? This is a very quick, you know, here's the number, here's the timing, how it impacts range.

Douglas George Blyth Leggate: I think perhaps it's a little bit early as we get a little closer to 2025 and think about and refine what that capital budget may look like. As we've said, growth is an option. It's a question of when, not if, so coordinating infrastructure, be it gathering, processing, compression, and longer-term transport, layered in with marketing to the end customers in this relationship, you know, is all part of the process, and it has done a tremendous job right-sizing the balance sheet, but I think the one certainty that we can all see with the forward curve and the demand-supply situation for gas is significantly higher volatility, Will you refinance those, or will you pay them down?

Speaker Change: I think perhaps it's a little bit early as we get a little closer to 2025 and think about and refine what that capital budget may look like. As we've said, growth is

Speaker Change: is an option. It's a question of when, not if.

Speaker Change: So coordinating infrastructure, be it gathering, processing, compression, and longer-term transport layered in with marketing to the end customers in this relationship, you know, is all part of the process.

Mark Scucchi: Okay, thank you for that.

Mark Scucchi: My follow up is really a balance sheet, a debt question. You've obviously done a tremendous job right sizing the balance sheet, but I think the one certainty that we can all see with the forward curve and the demand supply situation for gas is significantly higher volatility, which means break even and balance sheet capital structure becomes a big part of your equity volatility. So my question is, you have a couple of, you know, fairly sizable bond maturities over the next three to five years. Will you refinance those, or will you pay them down? How do you see the light capital structure and an extraordinarily volatile environment for for range?

Speaker Change: Okay, thank you for that. My follow-up is really a balance sheet, a debt question. You've obviously done a tremendous job right-sizing the balance sheet, but

Speaker Change: I think the one certainty that we can all...

Speaker Change: see with the forward curve and the demand supply situation for gas is significantly higher volatility.

Speaker Change: which means breakeven and balance sheet capital structure becomes a big part of your equity volatility. So my question is, you have a couple of, you know, fairly sizable bond maturities over the next three to five years.

Speaker Change: Will you refinance those or will you pay them down? How do you see the right capital structure in an extraordinarily volatile environment for Range?

Mark Scucchi: Well, I'll start with the target debt ranges: net debt of one to one and a half billion, which we are within, giving us a lot of options both in terms of capital and further deleverging. So we certainly plan to stay within that and optimize the balance sheet, to your point. It reduces cost of capital, hopefully, brings out some of the risking, if you will, and rings out some of the volatility. So, to that point, the 25s, as I mentioned, are in the opening comments. We've got ample liquidity to take care of those. We have the revolver, lots of cash on balance sheet and cash flow to be generated in come in quarters. Further deleverging is likely; will balance that with returns of capital, and capital markets are open as well.

Mark S. Scucchi: How do you see the right capital structure in an extraordinarily volatile environment for rent? Well, I'll start with the target debt ranges, net debt of $1 to $1.5 billion, which we are within, giving us a lot of options, both in terms of returns on capital and further deleveraging. So we certainly plan to stay within that and optimize the balance sheet, which, to your point, reduces the cost of capital, hopefully brings out some of the risk, if you will, and brings out some of the volatility.

Speaker Change: Well, I'll start with the target debt ranges, net debt of $1 to $1.5 billion, which we are within, giving us a lot of options, both in terms of returns of capital and further deleveraging. So, we certainly plan to stay within that and optimize the balance sheet. To your point, it's

Speaker Change: reduces cost of capital hopefully brings out some of the

Mark S. Scucchi: So to that point, the 25s, as I mentioned during the opening comments, we've got ample liquidity to take care of those. We have the revolver, lots of cash on the balance sheet, and cash flow to be generated in the coming quarters. Further deleveraging is likely.

Speaker Change: The risking, if you will.

Speaker Change: and brings out some of the volatility.

Speaker Change: So to that point, the 25s, as I mentioned during the opening comments, we've got ample liquidity to take care of those.

Speaker Change: We have the revolver. Lots of cash on the balance sheet and cash flow to be generated in coming quarters. Further deleveraging is likely. We'll balance that with returns of capital. And capital markets are open as well. So there's clearly options there as we roll forward through the next few quarters.

Mark S. Scucchi: So there's clearly options there as we roll forward through the next few quarters. There's a step down in the call price on the 2029, the quarter notes early next year. So that presents a possible time to consider after that passes of what a reef anything might look like. So, at the highest level, I'll say, fortunately, we have a lot of good options ahead of us to optimize the balance sheet, further deleverage, while also achieving our return.

Speaker Change: There's a step down in the call.

Speaker Change: Price on the 2029, the eight and a quarter notes, early next year. So that presents a possible time to consider after that passes of what a refinancing might look like. So, at the highest level, I'll say, fortunately, we have a lot of good options ahead of us to optimize the balance sheet.

Mark S. Scucchi: We'll balance that with returns on capital, and capital markets are open as well. So there are clearly options there as we roll forward through the next few quarters. There's a step down in the call price on the 2029, the eight and a quarter notes early next year. So that presents a possible time to consider after that passes what a refinancing might look like. So at the highest level, I'll say fortunately, we have a lot of good options ahead of us to optimize the balance sheet, further deleverage, while also achieving our return on capital. Thanks for taking my questions, guys. Thank you. Thank you. The next question comes from Jake Roberts of TPH and Company. Morning. Good morning, Jake.

Mark Scucchi: Thank you very much.

Mark S. Scucchi: Jackis. Thanks for taking my questions, guys. Thank you.

Speaker Change: further deleverage while also achieving arbitrary capital objectives.

Speaker Change: Thanks for taking my questions, guys. Thank you.

Speaker Change: Thank you.

Jake Roberts: Our next question comes from Jake Roberts of TPH and Company. Morning. Morning Jake. I was curious on the getting some more granularity on the till cadence in the second quarter and being aware of that the current mix is at 32%.

Speaker Change: Our next question comes from Jake Roberts of TPH and Company.

Jacob Phillip Roberts: Good morning.

Jacob Phillip Roberts: Curious about getting some more granularity on the till cadence in the second quarter and being aware of that the current mix is at 32%, but just wondering if that liquid's weighting is going to push that number higher in Q3, and then ultimately, how it may shake out in Q4 with the dry wells coming online just to get to that more than 30% for the year. Yeah, good morning, Jake. If I take a step back, the way we're looking at our turn-in line cadence for the year, I mean, right now, we have approximately 50% of our turn-in lines having been sent to the sales line, but over the bulk of those, clearly, we're in Q2.

Speaker Change: [inaudible]

Jacob Phillip Roberts: I was curious on getting some more granularity on the till cadence in the second quarter

Jake Roberts: But just wondering if that liquid's waiting is going to push that number higher in Q3, and then ultimately what it may shake out in Q4 with the dry wells coming on a line, just to get to that more than 30% for the year. Yeah, good morning, Jake. If I take a step back, the way we're looking at our turn in line cadence for the year, I mean right now we're approximately 50% of our turn in lines having been sent to the sales line. But over the bulk of those clearly were in Q2. By nature, that's going to then, you know, carry a lot of weight as you start to think about that modest, but radical production and the increase that we'll see between Q3 and Q4, very much similar to the profiles that we've seen over the last several years.

Speaker Change: Being aware that the current mix is at 32%, but just wondering if that liquid's weighting is going to push that number higher in Q3, and then ultimately what it may shake out in Q4 with the dry wells coming online, just to get to that more than 30% for the year.

Speaker Change: Yeah, good morning, Jacob.

Speaker Change: If I take a step back, the way we're looking at our turn-in line cadence for the year, I mean, right now we're approximately 50% of our turn-in lines having been sent to the sales line, but over the bulk of those, clearly we're in Q2.

Jacob Phillip Roberts: By nature, that's going to then, you know, carry a lot of weight as you start to think about that modest but ratable production increase that we'll see between Q3 and Q4, very much similar to the profiles that we've seen over the last several years. But because the turn-in lines have all been 100% on the wet side, and a lot of that's going to also be consistent in Q3 as well, we would expect to see a similar liquids contribution and percentage weighting factor in the back half of the year to what we've seen here through the first half as well. The dry gas tills, you know, clearly, we're still keeping those under evaluation.

Speaker Change: By nature, that's going to then, you know, carry a lot of weight as you start to think about that.

Speaker Change: modest but ratable production increase that we'll see between Q3 and Q4, very much similar to the profiles that we've seen over the last several years.

Jake Roberts: But because the turn in lines have all been 100% on the wet side, and a lot of that's going to also be consistent in Q3 as well. We would expect to see a similar liquids contribution in percentage weighting factor in the back half of the year to what we've seen here through the first half as well. The dry gas fuels, you know, clearly we're still keeping those, we'll say, under evaluation. When you look at how the gathering system has really performed with some of the optimization efforts that have been ongoing over the last six to nine months, it's still a little early, but we're really seeing that pay dividends in a way where it's allowing us to think in a very flexible way about how deep into the year do we want to push those dry gas tails.

Speaker Change: Because the turning lines have all been 100% on the wet side, and a lot of that's going to also be consistent in Q3 as well, we would expect to see a similar liquids contribution and percentage weighting factor in the back half of the year to what we've seen here through the first half as well.

Dennis L. Degner: When you look at how the gathering system has really performed with some of the optimization efforts that have been ongoing over the last, you know, six to nine months, it's still a little early, but we're really seeing that pay dividends in a way where it's allowing us to think in a very flexible way about how deep into the year we want to push those dry gas fields. So, ultimately, between the flexibility there, the way the liquids turn-in line cadence is shaping up, and on top of it, just the production profile and the base decline being low, we're really seeing that we should have a consistent liquids contribution through the balance.

Speaker Change: The dry gas tills, you know, clearly we're still keeping those, we'll say, under evaluation. When you look at how the gathering system has really performed with some of the optimization efforts that have been ongoing over the last, you know, six to nine months.

Speaker Change: It's still a little early, but we're really seeing that pay dividends in a way where it's allowing us to think in a very flexible way about how deep into the year do we want to push those dry gas tills. So, ultimately, between the flexibility there, the way the liquids turn in line cadence is shaping up, and on top of it, just the production profile and the base decline being low, we're really seeing that we should have a consistent liquids contribution through the balance of the year.

Jake Roberts: So ultimately, between the flexibility there, the way the liquids turn in line cadence is shaping up, and on top of it, just the production profile and the base decline being low, we're really seeing that we should have a consistent liquid contribution through the balance of the year.

Jake Roberts: Okay, then my second question, I know you spoke earlier about some of the flexibility as we look at 2025, particularly around natural gas pricing, but I'm wondering if the forecasted tightness and the export LPG export capacity in 2025 is also factoring into that conversation and how we should we might think about that side of the program. And then I'm also curious if you could offer any thoughts on the potential for that export capacity utilization to remain closer to 200 percent following the additional capacity in late 2025 and 2026. Yeah, I think the export utilization has been really a great story in a lot of ways for the past, probably 12 months plus now, but you're spot on.

Dennis L. Degner: Okay, and my second question, I know you spoke earlier about some of the flexibility as we look at 2025, particularly around natural gas pricing, but I'm wondering if the forecasted tightness and the export, LPG export capacity in 2025 are also factoring into that conversation and how we should think about that side of the program. And then I'm also curious if you could offer any thoughts on the potential for that export capacity utilization to remain closer to 100% following the additional capacity in late 2025 and 2026.

Speaker Change: Okay, and my second question, I know you spoke earlier about some of the flexibility as we look at 2025, particularly around

Speaker Change: Natural Gas Pricing

Speaker Change: But I'm wondering if the forecasted tightness in the LPG export capacity in 2025 is also factoring into that conversation, and how we should...

Speaker Change: we might think about that side of the program. And then I'm also curious if you could offer any thoughts on the potential for that export capacity utilization to remain closer to 100% following the additional capacity in late 2025 and 2026.

Dennis L. Degner: Yeah, I think the export utilization has been a really great story in a lot of ways for the past probably 12 months plus now, but you're spot on. I mean, we consistently see that it's running in the high 80%, almost bumping the 90% range on a, we'll just say, month in and month out basis out of the Gulf.

Speaker Change: Yeah, I think the export utilization has been really a great story in a lot of ways for the past probably 12 months plus now, but you're spot on. I mean, we consistently see that it's running in the high 80%, almost bumping 90% range on a, we'll just say a month in and month out basis out of the Gulf.

Jake Roberts: We consistently see that it's running in a high 80 percent, almost bumping 90 percent range on a, we'll just say, a month in and month out basis out of the Gulf. You know, for us, it really presents a unique advantage, and we've said this a number of times, but our ability to get our products to the water and not only to the water, but also in Philadelphia, out of the northeast, has really proven to be a differentiator for us. And so when you start to think about the go forward, we would expect to see some ongoing congestion from time to time in the Gulf.

Dennis L. Degner: You know, for us, it really presents a unique advantage, and we've said this a number of times, but our ability to get our products to the water and not only to the water but also in Philadelphia from the Northeast has really proven to be a differentiator for us. And so, when you start to think about the future, we would expect to see some ongoing congestion from time to time in the Gulf.

Speaker Change: You know, for us, it really presents a unique advantage, and we've said this a number of times, but our ability to get our products to the water, and not only to the water, but also in Philadelphia out of the Northeast, has really proven to be a differentiator for us.

Speaker Change: And so when you start to think about the go forward, we would expect to see some ongoing congestion from time to time in the Gulf.

Dennis L. Degner: And as that continues to persist and raise its head, our relative value that we harvest by getting out of Mont Belvieu versus Mont Belvieu will continue to really shine for us in the future. So, you're right that export capacity in 25 and beyond is going to continue to grow. But when you start to think about the demand component and the supply that probably follows with that out of other basins in the South, again, we expect to see our relative value versus Mont Belvieu to continue to shine in the going forward, being able to get our products to the water in the Northeast. Great. I appreciate the time.

Jake Roberts: And as that continues to persist and raise its head, our relative value that we harvest by getting out of versus Mont-Belvie will continue to really shine for us in the go forward. So you're right, the export capacity in 25 and beyond is going to continue to grow. But when you start to think about the demand component and the supply that probably follows with that out of other basins in the South, again, we expect to see our relative value versus Mont-Belvie to continue to shine in the go forward. Being able of the East. Great. Appreciate the time.

Speaker Change: And as that continues to persist and raise its head...

Speaker Change: Our relative value that we harvest by getting out of Mont Belvieu versus Mont Belvieu will continue to really shine for us in the go forward.

Speaker Change: You're right, that export capacity in 25 and beyond is going to continue to grow, but when you start to think about the demand component and the supply, that probably follows with that out of other basins in the south.

Speaker Change: Again, we expect to see our relative value versus Mount Bellevue to continue to shine as we go forward, being able to get our products to the water in the Northeast.

Jake Roberts: Thank you, Jake. Thank you.

Speaker Change: Great, appreciate the time.

Jacob Phillip Roberts: Thank you, Jake.

Scott Hanold: Our next question comes from Scott Hanold of RBC. Thanks. Good morning, all.

Jacob Phillip Roberts: Thank you.

Jacob Phillip Roberts: Our next question comes from Scott Hanold of RBC. Thanks, good morning all. Hey, just out of curiosity, you all talk about obviously delivering your maintenance kind of plus activity level and building a little bit of an optional duct backlog. Can you give some color around that?

Speaker Change: Our next question comes from Scott Hanold of RBC.

Scott Michael Hanold: When you look at that, are you doing it more for gassy type wells, or is there really an opportunity, given your constructive liquids outlook, to, you know, build that more as, you know, a liquids-oriented backlog? That, you know, gives you some better pricing optionality. Yeah, good morning, Scott.

Scott Hanold: Hey, just out of curiosity, you all talk about obviously delivering your, your maintenance kind of plus activity level and in building a little bit of an optional duck backlog. Can you give some color around when you look at that? Are you doing it more, you know, for gassy type wells, or is there really an opportunity to also give in your constructive liquids outlook to, you know, build that more as, you know, a liquids oriented backlog that, you know, gives you some better pricing optionality. Yeah, good morning, Scott. I think the best way to think about our inventory and the way that we'll just say what that looks like, it'll mirror a lot of what you see in our activity base, you know, on a program year, kind of year in and year out.

Scott Michael Hanold: Thanks, good morning all. Hey, just out of curiosity, you all talk about obviously delivering your maintenance kind of plus activity level and building a little bit of a...

Scott Michael Hanold: optional duck backlog. Can you give some color around, when you look at that, are you doing it more, you know, for gassy type wells or is there really an opportunity also given your constructive liquids outlook to

Speaker Change: You know, build that more as, you know, a liquids-oriented backlog that, you know, gives you some better pricing optionality.

Dennis L. Degner: I think the best way to think about our inventory and the way that we'll just say what that looks like is that it'll mirror a lot of what you see in our activity base, you know, on a program year, kind of year in and year out. But by nature, it's inherently going to lean more toward the liquids-rich side of our asset base. I mean, program year in and year out, we run around 65 to 70% on the liquid side.

Speaker Change: Yeah, good morning, Scott. I think the best way to think about our inventory and the way that, we'll just say, what that looks like, it'll mirror a lot of what you see in our activity base, you know, on a program year, kind of year in and year out, but by nature, it's inherently going to lean more toward the liquids-rich side of our asset base. I mean, program year in and year out, we run around

Scott Hanold: But by nature, it's inherently going to lean more toward the liquids-rich side of our asset base. We program year in and year out; we run around 65 to 70% on the liquid side. So between our wet and super rich inventory, and then the other will just say 30% is going to be more on the dry side. So I would expect on the go forward when we build some inventory, it's primarily going to be leaning toward the liquid side inherently, by the way we shape our program or our inventory lies where we see infrastructure capacity as well.

Dennis L. Degner: So between our wet and super rich inventory and then the other, we'll just say 30% is going to be more on the dry side. So I would expect, going forward, when we build some inventory, it's primarily going to be leaning toward the liquid side inherently by the way we shape our program or our inventory lies where we see infrastructure capacity as well. But we always leave some flexibility in how we look at our inventory and where we drill, based upon what we're seeing going on in the market.

Speaker Change: 65 to 70 percent on the liquid side so between our wet and super-rich.

Speaker Change: [inaudible]

Scott Michael Hanold: But we always leave some flexibility in how we look at our inventory and what we, where we drill, and based on what we're seeing going on in the market. And our ability, I know we touch on this a lot, but it's a real differentiator for us, but our ability to move back to paths with existing production allows us to just really be nimble and be able to react to what we're seeing and what we think is going to be most helpful for the go forward. So inventory balance and mix should look real similar to the rest of the program, but it'll lead toward the liquid side.

Speaker Change: But we always leave some flexibility in how we look at our inventory and where we drill based upon what we're seeing going on in the market.

Dennis L. Degner: And our ability, I know we touch on this a lot, but it's a real differentiator for us, but our ability to move back to pads with existing production allows us to just really be nimble and be able to react to what we're seeing and what we think is going to be most helpful for the future. Inventory balance and mix should look pretty similar to the rest of the program, but it'll lean toward the liquid side. So when I think about that, should I?

Speaker Change: Our ability, I know we touch on this a lot, but it's a real differentiator for us, but our ability to move back to past with existing production allows us to just really be nimble.

Speaker Change: and be able to react to what we're seeing and what we think is going to be most helpful for the go forward. So, inventory balance and mix should look real similar to the rest of the program, but it'll lean toward the liquid side. So, when I think about that, should I...

Scott Hanold: So when I think about that, should I, you know, when you think about like executing potential growth when it makes sense, is that more of, well, as much as, you know, improving dry gas prices, but also whether there's, you know, NGL capacity or, you know, just export capacity as well, is that is it sort of a balance of that? I think it's an all of the above. And, you know, clearly when you look at the realization uplift that comes with our NGL contribution inherently, we're going to lean toward over the course of time. Just like you're seeing the balance of this year, I would expect to see a small improvement in our, in our liquids contribution just over the course of time.

Scott Michael Hanold: You know, when you think about, like, executing potential growth, when it makes sense, is that more of, well, as much as... You know, improving dry gas prices, but also whether there's, you know, NGL capacitor, you know, just export capacity as well? Is that sort of a balance of that? I think it's all of the above.

Speaker Change: You know when you think about like executing potential growth when it makes sense is is that more of well as much as

Speaker Change: You know, improving dry gas prices, but also whether there's, you know, NGL capacity or, you know, just export capacity as well. Is that, is it sort of a balance of that?

Dennis L. Degner: And, you know, clearly, when you look at the realization uplift that comes with our NGL contribution, inherently, we're going to lean toward over the course of time, just like you're seeing the balance of this year. I would expect to see a small improvement in our liquids contribution over time. So, it could be a small number, but it's going to be inherently, because of the way our inventory is laid out. I would expect to see that to be a small, improving percentage factor over the course of time.

Speaker Change: I think it's an all of the above and you know clearly when you look at the the realization uplift that comes with our

Speaker Change: Our NGL contribution, inherently, we're going to lean toward over the course of time, just like you're seeing the balance of this year.

Speaker Change: I would expect to see a small improvement in our liquid's contribution just over the course of time, so it could be a small number, but it's going to be, inherently, because of the way our inventory is laid out, I would expect to see that to be a small improving percentage factor over the course of time.

Scott Hanold: So it could be a, you know, a small number, but it's going to be inherently because of the way our inventory is laid out. I would expect to see that to be a, a small improving percentage factor over the course of time. And going into that is our ability to get to the water. Again, what we see that's going on with the global markets and our ability to take advantage of that revenue uplift and how it impacts our free cash flow.

Dennis L. Degner: And going into that is our ability to get to the water. Again, what we see that's going on with the global markets and our ability to take advantage of that revenue uplift and how it impacts our free cash. Okay, that's clear.

Speaker Change: Mark Scucchi, The Geological Survey, www.geologicalsurvey.org

Scott Hanold: Okay, that's clear.

Scott Michael Hanold: And then my follow-up is, you know, probably for Mark, you obviously hit the buybacks on both the debt as well as the equity. Can you give us some sense of, how do you think about the balance in doing that? Like, what makes most sense?

Mark Scucchi: And then my follow-up is, you know, probably for Mark, you know, you obviously, you know, hit the buybacks on both the debt as well as the equity. Can you give us, you know, some sense of, like, how do you think about the balance in doing that? Like, what, what makes most sense to create, you know, incremental shareholder value at this point? Is it, is it the debtors at the buybacks or the combination? Just give us a sense of how you think about that. Yeah, it's a fair question and, you know, we've shied away from giving a purely formulaic approach to it because commodity prices change, costs in the field may change, demand may change, and that growth is a question again of when. So, first and foremost, our job is to have safe, efficient operations and provide energy, natural gas, and natural gas liquids to our customers and sell this profitably. So, that's the first thing.

Speaker Change: Okay, that's clear. And then my follow-up is, you know, probably for Mark, you know, you obviously, you know, hit the buybacks on both the debt as well as the equity. Can you give us, you know, some sense of, like, how do you think about the balance in doing that? Like, what makes most sense?

Scott Michael Hanold: to create, you know, incremental shareholder value at this point. Is it the debt or is it the buybacks, or is it a combination? Just give us a sense of how you think about that. Yeah, it's a fair question.

Speaker Change: To create, you know, incremental shareholder value at this point, is it the debt, or is it the buybacks, or is it a combination? Just give us a sense of how you think about that.

Mark S. Scucchi: And, you know, we've shied away from giving a purely formulaic approach to it because commodity prices change, the cost of the field may change, demand may change, and that growth is a question, again, of when. First and foremost, our job is to have safe, efficient operations and provide energy, natural gas, and natural gas liquids to our customers and sell those profitably. So that's, that's the first thing. Underpinning that is a strong balance sheet, which we have. We're within our target range. So, from here forward, we like the optionality of leaning in one direction or another.

Mark S. Scucchi: Yeah, it's a fair question. And, you know, we've shied away from giving a purely formulaic approach to it because commodity prices

Mark S. Scucchi: Change, cost of the field may change, demand may change, and that growth is a question, again, of when.

Speaker Change: First and foremost, our job is to have safe, efficient operations and provide energy, natural gas and natural gas liquids to our customers and sell those profitably. So that's the first thing. Underpinning that is the strong balance sheet, which we're there, we're within our target range. So from here forward, we like the

Mark Scucchi: Underpinning that's the strong balance sheet, which we're there, we're within our target range. So from here forward, we like the auctionality of leaning in one direction or another. So I'll just leave it as the balance sheet is within the target and continues to get stronger; we can kind of turn that reset. Up or down on the returns of capital as we see appropriate to provide the greatest returns, the strongest driver free cash oil and cash flow per share over time. So I can't I can't give you a specific number; we prefer the flexibility in executing the programs. But suffice it to say that our behavior will not be that dissimilar from what you've seen from us over the last few years. One year we've brought back $400 million in shares; commodity prices came in and we became a little bit more conservative.

Mark S. Scucchi: So, I'll just leave it as, as the balance sheet is within the target and continues to get stronger, we can kind of turn that rheostat up or down on the returns of capital as we see appropriate to provide the greatest returns, the strongest driver of free cash flow and cash flow per share over time. So I can't give you a specific number. We prefer the flexibility in executing the programs, but suffice it to say that our behavior will not be that dissimilar from what you've seen from us over the last few years.

Speaker Change: Optionality of leaning in one direction or another. So I'll just leave it as the balance sheet is within the target and continues to get stronger we can kind of turn that rheostat.

Speaker Change: Up or down on the returns of capital as we see appropriate to provide the greatest returns, the strongest driver of free cash flow and cash flow per share.

Speaker Change: over time. So I can't give you a specific number. We prefer the flexibility in executing the programs.

Speaker Change: But suffice it to say that our behavior will not be that dissimilar from what you've seen from us over the last few years. One year we bought back $400 million in shares, commodity prices came in, and we became a little bit more conservative.

Mark S. Scucchi: One year, we bought back $400 million in shares, commodity prices came in, and we became a little bit more conservative. So we're just responsive to cash flow prices and changes in relative value over it. But again, I'll just leave it with a punchline.

Mark S. Scucchi: So we're just responsive to cash low prices and changes in relative value over it, but again I'll just leave it with the punch line of, as we stay within and move further into our target that range, we've got greater flexibility. Thank you.

Speaker Change: So we're just responsive to cash flow prices and changes in relative value over it. But again, I'll just leave it with the punchline of, as we stay within and move further into our target debt range, we've got greater flexibility.

Neil Singhvi Mehta: As we stay within and move further into our target that range, we've got greater flexibility. Thank you. Thank you. Our next question comes from Neil Mehta of Goldman Sachs. Yeah, good morning.

Speaker Change: Thank you.

Speaker Change: Thank you.

Speaker Change: Thank you.

Neil Mehta: Our next question comes from Neil Mehta of Goldman Sachs. Good morning team. I had a couple questions on, you know, NGL macro, but also your price realization. So the first question on slide 35, your price calculation, you guys done a great job realizing above the equivalent Montbelview barrel. Just be your perspective on, you know, how do you continue to get towards the top end of the 75 cents to a buck 50? What are the headwinds, what are the tailwinds, and what are the tailwinds? What are you doing to get the best net back.

Speaker Change: Our next question comes from Neil Mehta of Goldman Sachs.

Alan Engberg: Good morning, team. I had a couple of questions on, you know, NGL macro, but also your price realization. So the first question on slide 35, your price calculation, you guys have done a great job realizing above the equivalent Mont Belvue barrel. Just your perspective on, you know, how do you continue to get towards the top end of the 75 cents to a buck 50? What are the headwinds?

Neil Mehta: Yeah, good morning. Good morning team. I had a couple questions on, you know, NGL macro, but also your price realization. So the first question on

Neil Mehta: Slide 35, your price calculation. You guys have done a great job realizing above the equivalent Mont Belvieu barrel. Just be your perspective on

Douglas George Blyth Leggate: You know, how do you continue to get towards the top end of the 75 cents to a buck 50? What are the headwinds? What are the tailwinds? And what are you doing to get the best net back?

Neil Singhvi Mehta: What are the tailwinds? And what are you doing to get the best net? Hey, good morning, Neil. This is Alan Engberg.

Alan Engberg: Good morning. NGL, this is Al Langberg. I manage the marking program at Range. I'll take a stab at answering your question. We you know it's not all that magical a lot of what we do is we've got diversity in the portfolio and we've managed to set up the portfolio such that we're not. Overly exposed to Montbelview; in fact, we've waited a lot of it, whether it's a thing propane or detain towards international markets, where we saw significant growth. So going forward I think the macro looks really good still. Internationally, we've got tremendous growth in ethane demand, particularly out of Asia but also to Europe.

Alan Engberg: I manage the marketing program at Range, so I'll take a stab at answering your question. (Inaudible) We, you know, it's not all that magical.

Douglas George Blyth Leggate: Hey, good morning, Neil. This is Alan Engberg. I manage the marketing program at Range, so I'll take a stab at answering your question.

Alan Engberg: A lot of what we do is we've got diversity in the portfolio, and we've managed to set up the portfolio such that we're not overly exposed to Mt. Bellevue. In fact, we've weighted a lot of it, whether it's ethane, propane, or butane, towards international markets, where we saw significant growth. So going forward, I think the macro looks really good internationally. We've got a tremendous growth in the ethane domain, particularly out of Asia, but also out of Europe, with ethane going into ethylene steam crackers.

Speaker Change: We, you know, it's not all that magical, a lot of what we do is we've got diversity in the portfolio and we've managed to set up the portfolio such that we're not overly exposed to Mt. Bellevue.

Speaker Change: In fact, we've weighted a lot of it, whether it's ethane, propane, or butane, towards international markets where we saw significant growth.

Speaker Change: So, going forward, I think,

Speaker Change: The macro looks really good still internationally.

Speaker Change: We've got tremendous growth in ethane demand.

Alan Engberg: I think going into as one steam crackers most of them are seeing that if they're operating using feed other than ethane, they're disadvantaged. Hitch, so they're shifting a lot of their feed capacity towards Epayne, and that is creating just continued Epayne demand growth. So we feel that for our contracts that are priced internationally on Epayne, given that demand growth, we're just going to continue to see good realization relative to the domestic benchmarks. Similarly, on LPG, you've heard the story, I'm sure quite a bit about just PDH growth, particularly in Asia, and that is still continuing to go on.

Speaker Change: particularly out of Asia, but also out of Europe . Ethane going into ethylene steam crackers, most of them are seeing that if they're operating using feed other than ethane, they're disadvantaged.

Alan Engberg: Most of them are seeing that if they're operating using feed other than ethane, they're disadvantaged, so they're shifting a lot of their feed capacity toward that. And that is creating just continued, I think demand growth. So we feel that for our contracts that are priced internationally on FAA, and given that demand growth, we're just going to continue to see good realization relative to the domestic venture. Similarly, on LPG, you've heard the story quite a bit about just PDH growth, particularly in Asia, and that is still continuing to go on. We're operating at relatively low capacity utilization internationally, which some people view as a negative, but really, I view that as a positive, because as that capacity growth slows down, we're going to start getting a tighter market, and the capacity utilization is actually going to be increasing.

Speaker Change: So they're shifting a lot of their feed capacity towards ethane, and that is creating just continued ethane demand growth. So we feel that for our contracts that are priced internationally on ethane, given that demand growth, we're just going to continue to see good realization relative to the domestic benchmarks.

Speaker Change: Similarly on LPG, you've heard the story I'm sure quite a bit about just PDH growth, particularly in Asia, and that is still continuing to go on.

Alan Engberg: We're operating at relatively low capacity utilization internationally, which some people view as a negative, but really have views as a positive, because as that capacity growth slows down, we're going to start getting a tighter market and the capacity utilization is actually going to be increasing, so we're going to see a runway of continued demand growth for multiple years on the international front for LPG. We've got exposure to that currently, and it's worked out really well, again, for range relative to the domestic market indices. So going forward, we like our position. We're very happy; 80% of our portfolio on the LPG side capable of getting to the export market, but also the very flexible portfolio that allows us to pivot when the time's right or when the seasonality is right between domestic and export markets.

Speaker Change: We're operating at relatively low capacity utilization internationally.

Speaker Change: which some people view as a negative, but really I view that as a positive.

Speaker Change: Because as that capacity growth slows down, we're going to start getting a tighter market and the capacity utilization is actually going to be increasing. So we're going to see a runway of continued demand growth for multiple years on the international front for LPG.

Alan Engberg: So we're gonna see a runway of continued demand growth for multiple years on the international front for LPG. We've got exposure to that currently, and it's worked out really well, again, for range relative to and Domestic Marketing. So going forward, we like our position. We're very happy having 80% of our portfolio on the LPG side, capable of getting to the export market but also being a very flexible portfolio that allows us to pivot when the time's right or when the seasonality is right between domestic and export. Yeah, thanks, Alan. That kind of builds into the follow-up, which is slide 24.

Speaker Change: We've got exposure to that currently, and...

Speaker Change: It's worked out really well, again, for range relative to the domestic market indices.

Speaker Change: So, going forward, we like our position.

Speaker Change: We're very happy to have an 80% of our portfolio on the LPG side, capable of getting to the export market, but also being a very flexible portfolio that allows us

Speaker Change: to pivot when the time's right or when the seasonality is right.

Speaker Change: between domestic and export markets.

Alan Engberg: Yeah, thanks, Alan. That kind of builds into the follow-up, which is 524. We share your constructive NGL view, but we get a lot of pushback on the propane side, particularly on China, given the challenge of the economy out there. So I'd love your perspective real time of what you're seeing on the ground in Asia from a demand perspective, and can propane perform in the face of what seems to be a soft eastern demand picture. Well, I so agree with you. Everything we're reading as far as the economy in China has been less than stellar, but it's massive, right?

Neil Singhvi Mehta: We share your constructive NGL view, but we get a lot of pushback on the propane side, particularly on China, given the challenge of the economy out there. So I'd love your perspective real time on what you're seeing on the ground in Asia from a demand perspective, and can propane perform in the face of what seems to be a soft eastern demand picture? Well, I agree with you that everything we're reading as far as the economy in China has been, you know, less than stellar. But it's still, it's massive, right?

al: Yeah, thanks, Alan. That kind of builds into the follow-up, which is slide 24. We share your constructive NGL view, but we

Speaker Change: Get a lot of pushback on the propane side, particularly on China, given the challenge of the economy out there. So I'd love your perspective real-time of what you're seeing on the ground in Asia from a demand perspective, and can propane perform in the face of what seems to be a soft eastern demand picture?

Speaker Change: Well, so I agree with you. Everything we're reading as far as the economy in China has been, you know, less than stellar.

Alan Engberg: And the demand growth has still been there. In fact, I think Dennis referenced it in his remarks, his prepared remarks, that during the second quarter, we actually hit U.S., that is, another record in terms of exports to China. I'm trying to see here what that number was. I don't have it in front of me, but let's suffice it to say that 843,000 barrels per day is what China imported during the second quarter from a propane standpoint.

Alan Engberg: And the demand growth has still been there. In fact, I think Dennis referenced it in his remarks, his prepared remarks that during the second quarter, we actually hit the U.S., that is, hit another record in terms of exports to China. We, I'm trying to see here what that number was. I don't have it in front of me, but let's suffice to say the, here it goes, 843,000 barrels per day is what China imported during the second quarter from a propane standpoint. So it's been massive. The operating rates that I was talking about for the PDH units, despite the economy not really performing as strongly as a lot of people were hoping it would, those operating rates have actually increased.

Speaker Change: But it's still, it's massive, right? And the demand growth has still been there. In fact, I think Dennis referenced it in his remarks, his prepared remarks, that during the second quarter, we actually hit U.S., that is, hit another record in terms of exports to China.

Speaker Change: We, I'm trying to see here what that number was. I don't have it in front of me, but let's suffice it to say the, here it is, 843,000 barrels per day is what China imported during the second quarter from a propane standpoint. So it's, it's been massive.

Alan Engberg: So it's, it's been massive. The operating rates that I was talking about for the PDH units, despite the economy not really performing as strongly as a lot of people were hoping it would, those operating rates have actually increased. During the second quarter, we got into the mid 70% utilization rate. And again, that's against a weak economic backdrop.

Speaker Change: The

Speaker Change: Operating rates that I was talking about for the PDH units, despite the economy not really performing as strongly as a lot of people were hoping it would,

Alan Engberg: During the second quarter, we got into the 70% utilization rate. And again, that's against a weak economic backdrop. So the feeling is, once if the economy starts improving, and the government is, you know, making efforts to simulate the economy, once that happens, those utilization rates are going to continue to grow, and that demand will continue to grow as well. And then I'll add further that international supply bill. P.G. has actually been relatively flat. OPEC actually, during the second quarter, was down a percent year on year from an export standpoint. So it just emphasizes that the U.S.

Speaker Change: Those operating rates have actually increased.

Speaker Change: During the second quarter, we got into the mid-70%.

Alan Engberg: So the feeling is, once the economy starts improving, and the government is, you know, making efforts to stimulate the economy, once that happens, those utilization rates are going to continue to grow, and that demand will continue to grow as well. And then I'll add further that, um, the international supply available has actually been relatively flat. OPEC actually during the second quarter was down 8% year on year from an export standpoint, So it just emphasizes that the U.S. is the source of supply for that, and that demand from our standpoint continues to look quite stable. Thanks, team. Thanks, Hal. Thank you. The next question comes from Arun Jayaram of J.P. Morgan. Yeah, good morning, gentlemen.

Speaker Change: Utilization Rate.

Speaker Change: And again, that's against a weak economic backdrop. So the feeling is...

Speaker Change: Once, if the economy starts improving, and the government is, you know, making efforts to stimulate the economy.

Speaker Change: Once that happens, those utilization rates are going to continue to grow, and that demand will continue to grow as well. And then I'll add further that international supply of LPG has actually been...

Speaker Change: relatively flat. OPEC actually, during the second quarter, was down 8% year-on-year from an export standpoint.

Alan Engberg: is the source of supply into that demand, and that demand from our standpoint continues to look quite strong.

Speaker Change: So it just emphasizes that the U.S. is the source of supply into that demand, and that demand from our standpoint continues to look quite strong.

Neil Mehta: Thank you.

Tim: Thanks, team. Thanks, Hal.

Hal: Thank you.

Arun Jayaram: Our next question comes from Arun Jayaram of J.P. Morgan. Yeah, good morning, gentlemen. I wanted to ask you around just how you're thinking about kind of 2025. I know you touched on this earlier in the call. So in the going into 2024, you had about 30 million of capital that you use kind of to build some well inventory. And in this year, I think the number is 45 million. So you have about 75 million of capital, which is called in well inventory.

Hal: Our next question comes from Arun Jayaram of J.P. Morgan.

Arun Jayaram: I wanted to ask you around just, you know, how you're thinking about, you know, kind of 2025. I know you touched on this earlier in the call. So, going into 2024, you had about $30 million of capital that you used to build some well inventory. And this year, I think the number is $45 million.

Arun Jayaram: Yeah, good morning, gentlemen. I wanted to ask you around just, you know, how you're thinking about, you know, kind of 2025. I know you touched on this earlier in the call. So in the, in the, in the, in the,

Speaker Change #103: Going into 2024, you had about $30 million of capital.

Speaker Change #103: that you used kind of to build some well inventory. And then this year, I think the number is 45 million, so you have about $75 million of capital, which is called in well inventory.

Dennis L. Degner: So, you have about $75 million of capital, which is called in well inventory. As you look at the macro picture today, is the plan to maybe move to a maintenance CapEx and deliver a lower CapEx number for 2025? Or, you know, with the strip, call it around $340, would you plan to maybe grow a little bit, you know, given your attractive returns at those types of gas prices? Yeah, good morning, Arun.

Arun Jayaram: As you look at the macro picture today, is the plan to maybe move to a maintenance cap ex and to deliver a lower cap ex number for 2025? Or, you know, with the strip, call it around 340, would you plan to maybe grow a little bit, um, you know, given your attractive returns at those, at those types of gas prices?

Speaker Change #104: As you look at the macro picture today...

Speaker Change #105: Is the plan to maybe move to a maintenance CapEx and to deliver a lower CapEx number for 2025? Or, you know, with the strip caught around $340, would you plan to maybe grow a little bit, you know, given your attractive returns at those types of gas prices?

Arun Jayaram: Yeah, good morning, Arun. I think when we start to think about the 2025 program, I mean, you know, I think where we see today is it's there. We wanted to set up the flexible options so that we have the ability to reshape our production profile for for 25, or we have the ability to stay at a maintenance plus level type activity until you get to the back of 25 or into 2026. If you have a scenario this year, as an example, where you're blowing down your inventory and you're running a program that doesn't set you up for flexibility, that presents a unique challenge then as you start to lean into the market improvements, whether it's early 25, the middle of 25, or if it's, you know, leading into 2026.

Dennis L. Degner: I think when we start to think about the 2025 program, I mean, you know, I think where we see today is that we wanted to set up the flexible option so that we have the ability to reshape our production profile for the for 25. Or we have the ability to stay at a maintenance plus level type activity until you get to the back of 25 or into 2020. If you have a scenario this year as an example where you're blowing down your inventory and you're running a program that doesn't set you up for flexibility, that presents a unique challenge then as you start to lean into the market improvements, whether it's early 25, the middle of 25, or if it's leading into 2026.

Speaker Change #106: Yeah, good morning, Arun. I think when we start to think about the 2025 program, I mean,

Speaker Change #107: You know, I think where we see today is we wanted to set up the flexible options so that we had the ability to reshape our production profile for 25.

Speaker Change #107: or we have the ability to stay at a maintenance plus level type activity until you get to the back of 25 or into 2026.

Speaker Change #107: If you have a scenario this year, as an example, where you're blowing down your inventory and you're running a program that doesn't set you up for flexibility, that presents a unique challenge then as you start to lean into the market improvements, whether it's early 25, middle of 25, or if it's leading into 2026.

Arun Jayaram: So we like the in process inventory that's been generated. It gives us that ability to either utilize it and think differently about our capital, maybe on the low end, or it allows us to then use that as a, we'll say a, again, a keeping it at a maintained level, or do you grow that from there based upon what kind of rig and frat crew program we have? Our lean one, one frat crew program, these two rigs really kick out just a little bit more inventory than the one frat crew consumes. And we feel like by the time you aggregate that impact, it has the ability to reshape the production for the first half of the year.

Dennis L. Degner: So we like the in-process inventory that's been generated. It gives us that ability to either utilize it and think differently about our capital, maybe on the low end, or it allows us to then use that as a, we'll say, again, keeping it at a maintained level, or do you grow that from there based upon what kind of rig and frat crew program we have. In our Lean One frat crew program, these two rigs really kick out just a little bit more inventory than the one frat crew consumes.

Speaker Change #107: So we like the in-process inventory that's been generated. It gives us that ability to either utilize it and think differently about our capital, maybe on the low end.

Speaker Change #107: or it allows us to then use that as a, we'll say, again, keeping it at a maintained level, or do you grow that from there based upon what kind of rig and frat crew program we have?

Speaker Change #107: Our lean one frat crew program, these two rigs really kick out just a little bit more inventory than the one frat crew consumes. And we feel like by the time you aggregate that impact, it has the ability to...

Dennis L. Degner: We feel like by the time you aggregate that impact, it has the ability to reshape production for the first half of the year. If you think about our maintenance program for the last several years, we've always had, you know, the production character has had a bit of a sine wave where, you know, the back half of the year sees a modest but rabble increase. And then when you get to the first half of that following year, you're going to see a bit of a dip until you then pick up your activity and turn in lines back up from the early half-year activity level.

Arun Jayaram: If you think about our maintenance program the last several years, we've always had, you know, the production character has had a bit of a sine wave where, you know, the back half of the year sees a modest but ravable increase. And then when you get to the first half of that following year, you're always going to see a bit of a death until you then pick your activity and turn in lines back, back up from the early on, half the year activity level. So we feel like we have the ability to reshape that and change the way we think about feeding into growing demand and the market and what it presents to us.

Speaker Change #107: reshaped the production for the first half of the year.

Speaker Change #107: If you think about our maintenance program the last several years, we've always had, you know, the production character has had a bit of a sine wave, where, you know, the back half of the year sees a modest but rabble increase. And then when you get to the first half of that following year, you're always going to see a bit of a dip until you then pick your activity and turning lines back up from the early on half the year activity level. So, we feel like we have the ability to reshape that and change the way we think about feeding into growing demand and the market and what it presents to us. So, a little early for us to define exactly what that looks like, but we like the options that we have at our disposal and the ability to utilize that inventory.

Dennis L. Degner: So we feel like we have the ability to reshape that and change the way we think about feeding into growing demand and the market and what it presents to us. So it's a little early for us to define exactly what that looks like, but we like the options that we have at our disposal and the ability to utilize that inventory, keep ourselves at the leading edge of a capital-efficient program. I got it.

Arun Jayaram: So, little early for us to define exactly what that looks like, but we like the options that we have at our disposal and the ability to utilize that inventory to keep ourselves and also the leading edge of a capital efficient program. Got it.

Speaker Change #107: to keep ourselves at also the leading edge of a capital-efficient program.

Arun Jayaram: And just my follow-up, Dennis, I was wondering if you could highlight where you think your leading-edge D&C costs per foot are in Appalachia, maybe relative to your initial guide. And you highlighted averaging nine stages per day, which is a very, very efficient kind of frontier there. And maybe comment on some of the efficiency gains you're seeing from the Zeus fleet, and how much do you see is there to go on the drilling versus the completion efficiency side of the equation? Yeah, really good question.

Arun Jayaram: And just my follow-up, Dennis, I was wondering if you could highlight where you think you're leading edge DNC cost per foot or in Appalachia, maybe relative to your, you know, initial guide. And you highlighted, you know, averaging nine stages per day, which is, you know, a very, very efficient kind of frontier there. And maybe comment on some of the efficiency gains you're seeing from the Zeus fleet. And how much do you see, is there to go on the drilling versus the completion efficiency side of the equation?

Speaker Change #107: Got it. And just my follow-up, Dennis, I was wondering if you could highlight where you think your leading-edge D&C costs per foot are in Appalachia.

Speaker Change #108: It may be relative to...

Speaker Change #109: Your, you know, initial guide.

Speaker Change #110: And you highlighted, you know, averaging nine stages per day, which is, you know, a very, very efficient kind of frontier there.

Speaker Change #111: And maybe comment on some of the efficiency gains you're seeing from the Zeus fleet, and how much do you see is there to go on the drilling versus the completion efficiency side of the equation?

Dennis Degner: Yeah, a really good question. When we look at our drilling performance, the drilling team's done a fantastic job. Last year we saw a little over a 40% improvement in our drilling efficiencies through basically utilization of some upgrades on our super spec drilling rigs that were some testing that we did last year. And there's always a, we'll just say, an ongoing testing type nature to the program, very KPI driven and looking back on performance. And so that's translated into an ongoing efficiency that we're seeing this year as well, so very consistent from year to year. You know, the frag side on completions team continues to see improvements when we return to pads with existing production.

Dennis L. Degner: When we look at our drilling performance, the drilling team's done a fantastic job. Last year, we saw a little over a 40% improvement in our drilling efficiencies through basically the utilization of some upgrades on our SuperSpec drilling rigs. There was some testing that we did last year.

Speaker Change #112: Yeah, really good question. When we look at our drilling performance, the drilling team's done a fantastic job. Last year we saw a little over a 40% improvement in our drilling efficiencies through

Speaker Change #112: basically utilization of some upgrades on our super spec drilling rigs. There was some testing that we did last year.

Dennis L. Degner: And there's always a, we'll just say, an ongoing testing type nature to the program, very KPI-driven, and looking back on performance. And so that's translated into ongoing efficiency that we're seeing this year as well. So very consistent from year to year.

Speaker Change #113: And there's always a, we'll just say, an ongoing.

Speaker Change #113: testing type nature to the program, very KPI driven.

Speaker Change #113: and looking back on performance. And so that's.

Speaker Change #113: translated into an ongoing efficiency that we're seeing this year as well, so very consistent from year to year.

Dennis L. Degner: You know, on the FRAC side on completions, the team continues to see improvements when we return to pads with existing production. I think we touched on it a few months ago, but ultimately, when we return to a pad with existing production, we see that it could be as much as a 30% improvement in efficiencies. You root out nonproductive time, you look for ways to more efficiently manage ingress, egress, et cetera, and it all translates into the numbers that you're seeing.

Speaker Change #113: You know, the FRAC side on completions, the team continues to see improvements when we return to pads with existing production. I think we touched on it a few months ago, but ultimately when we return to a pad with existing production, we see that it could be as much as a 30% improvement in efficiencies.

Dennis L. Degner: I think we touched on it a few months ago, but ultimately when we return to a pad with existing production, we see that it could be as much as a 30% improvement in efficiencies. You root out nonproductive time. You look for ways to more efficiently manage ingress, egress, et cetera. And it all translates into the numbers that you're seeing. So the Zeus fleet has really performed well for us. And I would say it's as good or better than where we've been in the past few years. So hard to imagine, but in 2010, when I joined the organization, you know, industry standard was around three stages a day for 24-hour frat crew.

Speaker Change #113: You root out non-productive time. You look for ways to more efficiently manage ingress, egress, etc.

Dennis L. Degner: So, the Zeus fleet has really performed well for us, and I would say it's as good or better than where we've been in the past few years. So, hard to imagine, but in 2010, when I joined the organization, the industry standard was around three stages a day for a 24-hour FRAC crew. And here we are doing three times that amount, and it's just unbelievable.

Speaker Change #113: It all translates into the numbers that you're seeing. So, the Zeus fleet has really performed well for us, and I would say it's as good or better than where we've been in the past few years.

Speaker Change #114: Hard to imagine, but in 2010, when I joined the organization, you know, industry standard was around three stages a day for a 24-hour frat crew, and here we are doing three times that amount.

Arun Jayaram: And here we are doing three times that amount. And it's just unbelievable. So pads off to everybody on the service side, plus our team there in South Point. I think when you translate that into the cost per foot side, Arun, what you did is something that, you know, would current cost you're probably seeing somewhere, you know, in the eight to nine hundred dollar per foot range. We have seen some deflation that's helped along with the efficiencies that start to kind of materialize, but very on a very limited basis, as you would imagine. Great. Thanks a lot, Donna.

Dennis L. Degner: So, hats off to everybody on the service side, plus our team there in South. I think when you translate that into the cost-per-foot side, Arun, what you get is something that, you know, with current costs, you're probably seeing somewhere in the $800 to $900 per foot range. We have seen some deflation that's helped along with the efficiencies that start to kind of materialize, but on a very, on a very limited basis, as you would imagine. Thanks a lot, Dennis. Thank you.

Speaker Change #113: and it's just unbelievable. So hats off to everybody on the service side, plus our team there in South Point.

Arun Jayaram: I think when you translate that into the cost per foot side, Arun, what you get is something that, you know, with current costs, you're probably seeing somewhere, you know, in the $800 to $900 per foot range, we have seen some deflation that's

Arun Jayaram: helped along with the efficiencies that start to kind of materialize, but on a very limited basis, as you would imagine.

Operator: Thank you.

Arun Jayaram: Great. Thanks a lot, Dennis. Thank you.

Operator: We're nearing the end of today's conference.

Operator: We're nearing the end of today's conference. We will go to Paul Diamond from Citi for our final question. Good morning, all.

Paul Michael Diamond: We will go to Paul Diamond from City for our final question.

Speaker Change #115: Thank you. We're nearing the end of today's conference. We will go to Paul Diamond from Citi for our final question.

Paul Diamond: Good morning. Thanks for taking my call. Just a quick one, kind of piggyback in a bit. I'm in the inflationary expectations into kind of tail end of this year and in 2025. I wonder if you could put up two numbers around the higher state in the market really playing out.

Paul Michael Diamond: Thanks for taking my call. Just a quick one kind of piggybacking a bit on the deflationary expectations into kind of the tail end of this year and into 2025. I was wondering if you could put a few numbers around how you're seeing the market really playing out. Yeah, good morning, Paul.

Paul Michael Diamond: Good morning, all. Thanks for taking my call. Just a quick one, kind of piggybacking a bit on the deflationary expectations into kind of the tail end of this year and end of 2025. Just wondering if you could put a few numbers around how you're seeing the market really playing out.

Mark Scucchi: Yeah, good morning, Paul. When I think about, you know, where we're seeing, you know, deflation play out, you know, it's kind of a, it's different than historically where maybe commodities up, service cost up, commodities down, service cost down. And what I mean by that is, you know, now you're seeing, in some regards, and then, you know, I'll use the electric fleet as an example. E-fleets on the completion side are at 100% type utilization level across the lower 48. And many of those are structured around multi-year contracts. And so, on one hand, that may not present a significant deflation exposure.

Dennis L. Degner: When I think about where we're seeing, you know, deflation play out, you know, it's kind of a, it's different than historically, where maybe commodities are up, service costs are up, commodities down, service costs down. And what I mean by that is, you know, now you're seeing in some regards, and I'll use the electric fleet as an example, E-fleets on the completion side are at 100% type utilization level across the lower 48. And many of those are structured around multi-year contracts.

Paul Michael Diamond: Yeah, good morning, Paul. When I think about, you know, where we're seeing, you know, deflation play out, you know, it's kind of a

Speaker Change #117: It's different than historically where maybe commodities up, service costs up, commodities down, service costs down. And what I mean by that is, you know, now you're seeing in some regards, and I'll use the electric fleet as an example, E-fleets on the completion side are at 100% type utilization level across the lower 48, and many of those

Speaker Change #117: are structured around multi-year contracts. And so on one hand, that may not present a significant deflation exposure, but in our case, what it does, it also has a natural protection against...

Mark Scucchi: But in our case, what it does, it also has a natural protection against prices going up in 25 and 26. Through the term of the contract, when you could see activity levels go the other way. Similar type storyline on some of our drilling rig exposures, where we are starting to see some opportunity is, you know, when you start to see relief in areas like oil prices, you start to see potential relief in diesel fuel, fraction sand, and some of your other consumables. It may not be, you know, by the time you look at an individual line item, maybe they may not have a lot of, I'll just say a large impact, but in aggregate, it starts to become meaningful dollars.

Speaker Change #117: Prices going up in 2025 and 2026 through the term of the contract when you could see activity levels go the other way. Similar type storyline on some of our drilling rig exposures. Where we are starting to see some opportunity is

Speaker Change #117: When you start to see relief in areas like oil prices, you start to see potential relief in diesel fuel, frac sand, and some of your other consumables. It may not be, you know, by the time you look at an individual line item, maybe they may not have a lot of

Mark Scucchi: So it's a little bit early. And I think part of, you know, we'll just say deflationary savings that could transform or be a part of our program, we're going to most likely be a part of our RFP process when we roll out in the fall, and then that'll translate into our DNC per flip for next.

Speaker Change #117: I'll just say a large impact, but in aggregate, it starts to become meaningful dollars. So it's a little bit early, and I think part of...

Speaker Change #117: You know, we'll just say deflationary savings that could transform or be a part of our program are going to most likely be a part of our RFP process we roll out in the fall, and then that'll translate into our DNC per foot for next year.

Mark Scucchi: Deer.

Mark Scucchi: Understood, Mr. One more quick follow-up. You talked about your water sharing program and kind of it being a bit more of a longer term. Opportunity set is one of you put some nuns around that. I mean, how big do you see that opportunity set over in the medium and the longer term?

Speaker Change #118: Understood. Next, one more quick follow-up. You talked about your water sharing program and kind of it being a bit more of a longer-term opportunity set. Just wondering if you could put some numbers around that. I mean, how big do you see that opportunity set over the medium and the longer term?

Mark Scucchi: Yeah, the water sharing program has been really a great story, and it all started with our team there in South Point and their creativity to reach out to other producers several years ago now. And look for the ability to utilize their produced water as a part of our operations space. So it's a, we think across the board, it's a win-win. Looking back, you know, we've routinely now for several years recycled approximately 140 to 150% of our annual produced water volume. So it's 100% of ours, plus the remainder coming from other producers in the area. When you look at water costs and what that could translate into, and again, we've seen a range of somewhere plus or minus $10 million in potential savings on an annual basis because of the ability to take low cost water.

Speaker Change #119: You know, the water sharing program has been really a great story and it all started with our team there in South Point and their creativity to reach out to other producers several years ago now.

Speaker Change #120: and look for the ability to utilize their produced water as a part of our operation space. So it's a, we think across the board, it's a win-win. Looking back, you know, we've

Speaker Change #120: routinely now for several years recycled approximately 140 to 150 percent of our annual produced water volume. So it's 100 percent of ours plus the remainder coming from other producers in the area.

Speaker Change #120: When you look at water costs and what that could translate into, and again, we've seen a range of somewhere plus or minus $10 million in potential savings on an annual basis because of the ability to take low-cost water. And also, it really complements our environmental stewardship efforts that you'll see in our CSR report kind of year after year.

Mark Scucchi: And also it really compliments our environmental stewardship efforts that you'll see in our CSR report, kind of year after year. When you look at the investments that we're making into our water infrastructure this year, that's to support long-term low capital efficiency and also that low water cost. So we think this is something that, for decades to come, we can continue to repeat. And again, with our development runway, with our inventory, it sets us up well to be able to capture those cost savings.

Speaker Change #120: When you look at the investments that we're making into our water infrastructure this year, that's to support long-term, low capital efficiency and also that low water cost. So we think this is something that, for decades to come, we can continue to repeat. And again, with our development runway, with our inventory, it sets us up well to be able to capture those cost savings.

Paul Diamond: Understood. Thanks for your time.

Paul Diamond: Thank you, Paul. Thank you.

Speaker Change #121: Understood. I'll leave it there. Thanks for your time.

Operator: This concludes today's question and answer session.

Paul Michael Diamond: Thank you, Paul.

Dennis Degner: I'd like to turn the call back over to Mr. Degner for his concluding remarks. I'd just like to thank everyone for joining us on the call, as always, and the healthy Q&A. If you have any follow-up questions, don't hesitate to reach out to our Investor Relations team.

Paul Michael Diamond: Thank you. This concludes today's question and answer session. I'd like to turn the call back over to Mr. Degner for his concluding remarks.

Dennis L. Degner: I'd just like to thank everyone for joining us on the call, as always, and the healthy Q&A. If you have any follow-up questions, don't hesitate to reach out to our investor relations team, and we'll see you on the next call in October . Thank you.

Dennis Degner: And we'll see you on the next call in October. Thank you.

Operator: Thank you for your participation in today's conference. You may disconnect. Thank you.

Speaker Change #122: Thank you for your participation in today's conference. You may disconnect.

Operator: Thanks for watching. See you next time.

Speaker Change #122: Guitar

Speaker Change #123: © The Ultimate Parody Site-Limited Company, LLC.

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Speaker Change #124: www.larryweaver.com www.larryweaver.com

Speaker Change #124: [inaudible]

Dennis L. Degner: And so, on the one hand, that may not present a significant deflation exposure. But in our case, what it does, it also has a natural protection against prices going up by 25 and 26 through the term of the contract when you could see activity levels go the other way. Similar type storyline on some of our drilling rig exposures.

Operator: Welcome to the Range Resources 2nd quarter, 2024 earnings conference call. All lines have been placed on mute to prevent any background noise.

Speaker Change #125: Welcome to the Range Resources Second Quarter 2024 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.

Operator: 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.

Speaker Change #125: Such statements are subject to risks and uncertainties, which could cause actual results to differ materially from those in the forward-looking statements.

Operator: After the speaker's remarks, there will be a question-and-answer period.

Dennis L. Degner: Where we are starting to see some opportunity is when you start to see relief in areas like oil prices, you start to see potential relief in diesel fuel, fracked sand, and some of your other consumables. It may not be, you know, by the time you look at an individual line item, maybe they may not have a lot of, I'll just say a large impact, but in aggregate, it starts to become meaningful dollars.

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

Laith Sando: After the speaker's remarks, there will be a question and answer period. At this time, I would like to turn the call over to Mr. Laith Sando, Vice President, Investor Relations at Range Resources. Please go ahead, sir. Thank you.

Dennis Degner: Thank you, operator.

Dennis L. Degner: So, it's a little bit early, and I think part of, you know, we'll just say deflationary savings that could transform or be a part of our program are going to most likely be a part of our RFP process we roll out in the fall. And then that'll translate into our DNC per foot for next year.

Dennis L. Degner: Good morning, everyone, and thank you for joining Range's 2nd quarter 2024 earnings call. The speakers on today's call are Dennis Degner, Chief Executive Officer, and Mark Skooky, Chief Financial Officer. Hopefully you've had a chance to review the press release and updated investor presentation that we've posted on our website. We may reference certain slides on the call this morning. You also find our 10-Q on Range's website under the Investors tab, or you can access it using the SEC's EDGAR system. Please note, we'll be referencing certain non-GAAP measures on today's call. Our press release provides reconciliations of these to the most comparable GAAP figures.

Laith Sando: Thank you, operator. Good morning, everyone, and thank you for joining RANGE's second quarter 2024 earnings call.

Speaker Change #126: The speakers on today's call are Dennis Degner, Chief Executive Officer, and Mark Scucchi, Chief Financial Officer.

Speaker Change #127: Hopefully you've had a chance to review the press release and updated investor presentation that we've posted on our website. We may reference certain slides on the call this morning.

Speaker Change #127: You will also find our 10-Q on Range's website under the Investors tab, or you can access it using the SEC's EDGAR system.

Speaker Change #127: Please note, we'll be referencing certain non-GAAP measures on today's call. Our press release provides reconciliations of these to the most comparable GAAP figures.

Dennis L. Degner: We've also posted supplemental tables on our website that include realized pricing details by product, along with calculations of Abidak's cash margins and other non-GAAP measures.

Speaker Change #127: We've also posted supplemental tables on our website that include realized pricing details by product, along with calculations of EBITDAX cash margins and other non-GAAP measures.

Dennis Degner: With that, let me turn the call over to Dennis. Thanks, late, and thanks to all of you for joining the call today. Range's 2nd quarter plan was executed successfully and consistent with our strategy for the year, which remains unchanged. Operating safely while driving continued operational improvements. Generating free cash flow with a peer-leading capital efficiency and prudent allocation of that free cash flow, balancing returns of capital to shareholders with further debt reduction and the long-term development of our world-class asset base. I believe our 2nd quarter results reflect the ongoing advancement of these objectives and demonstrate the resilience of range of business through cycles.

Paul Michael Diamond: Next, one more quick follow-up. You talked about your water sharing program and kind of it being a bit more of a longer-term opportunity set. I was just wondering if you could put some numbers around that.

Speaker Change #127: With that, let me turn the call over to Dennis.

Dennis L. Degner: Thanks, Laith, and thanks to all of you for joining the call today.

Dennis L. Degner: I mean, how big do you see that opportunity set over the medium and the longer term? The water sharing program has been a really great story, and it all started with our team here in South Point and their creativity to reach out to other producers several years ago now and look for the ability to utilize their produced water as a part of our operations space. So we think across the board it's a win-win. Looking back, we've routinely for several years recycled approximately 140-150% of our annual produced water volume.

Dennis L. Degner: So it's 100% of ours plus the remainder coming from other producers in the area. When you look at water costs and what that could translate into, and again, we've seen a range of somewhere plus or minus $10 million in potential savings on an annual basis because of the ability to take low-cost water. And also, it really complements our environmental stewardship efforts that you'll see in our CSR report kind of year after year.

Dennis L. Degner: Range's second quarter plan was executed successfully and consistent with our strategy for the year, which remains unchanged.

Dennis L. Degner: Operating safely while driving continued operational improvements.

Dennis L. Degner: Generating free cash flow with a peer-leading capital efficiency.

Dennis L. Degner: and prudent allocation of that free cash flow, balancing returns of capital to shareholders with further debt reduction and the long-term development of our world-class asset base.

Dennis L. Degner: I believe our second quarter results reflect the ongoing advancement of these objectives and demonstrate the resilience of Range's business through cycles.

Dennis Degner: Our operational and financial updates highlight ranges, high quality, low-break even inventory, and liquids optionality, which drove another successful quarter while generating free cash flow. Our low capital intensity continues to be on display in quarters like Q2 and is the result of Range's class-leading drilling and completion cost. Shallow based decline, large blocky core inventory, and talented team. These T attributes result in a required reinvestment rate that is among the best in the industry, providing range of solid foundation for consistently generating significant free cash flow and returns to shareholders, while positioning range to help meet future energy man through our diverse transportation portfolio.

Dennis L. Degner: Our operational and financial updates highlight Range's high quality, low break-even inventory and liquids optionality which drove another successful quarter while generating free cash flow.

Dennis L. Degner: Our low capital intensity continues to be on display in quarters like Q2, and is the result of Range's class-leading drilling and completion costs.

Dennis L. Degner: Shallow Base Decline, Large Blocky Core Inventory, and Talented Team.

Dennis L. Degner: These key attributes result in a required reinvestment rate that is among the best in the industry, providing Range a solid foundation for consistently generating significant free cash flow and returns to shareholders, while positioning Range to help meet future energy demand through a diverse transportation portfolio.

Dennis Degner: Volstering Range's profitability and durability is our liquid's contribution. As seen in the second quarter results, liquid's revenue provided an uplift in natural gas prices, with NGO price realizations providing a substantial premium relative to Henry Hub natural gas. When we roll all of that together, our liquid's revenue uplift, our low capital intensity, along with a thoughtful, right-sized hedging program, you get a unique story, generating the lowest breaking than among natural gas producers, and the most resilient organic free cash flow as evidenced by our second quarter results and 2024 projections. Importantly, with our vast inventory of de-risk, high-quality Marcellus wells, we have the ability to compound our per-shared growth and free cash flow for decades to come.

Dennis L. Degner: Bolstering Range's profitability and durability is our liquids contribution. As seen in the second quarter results, liquids revenue provided an uplift in natural gas prices, with NGL price realizations providing a substantial premium relative to Henry Hub natural gas.

Dennis L. Degner: When we roll all of that together, are liquids revenue uplift?

Dennis L. Degner: Our low capital intensity.

Dennis L. Degner: Along with a thoughtful, right-sized hedging program, you get a unique story, generating the lowest break-even among natural gas producers and the most resilient organic free cash flow as evidenced by our second quarter results and 2024 projections.

Dennis L. Degner: Importantly, with our vast inventory of de-risked, high-quality Marcellus Wells, we have the ability to compound our per-share growth and free cash flow for decades to come.

Dennis L. Degner: When you look at the investments that we're making into our water infrastructure this year, that's to support long-term, low capital efficiency and also that low water cost. So we think this is something that for decades to come, we can continue to repeat. And again, with our development runway, with our inventory, it sets us up well to be able to capture those costs. Okay. I'll leave it there. Thanks for your time.

Dennis L. Degner: As we look back on the second quarter, all in capital came in at $175 million, with a total capital for the first half of the year totaling $345 million. Capital spend for the quarter reflected our base level of activity, along with a spot rig and frat crew we had in early 2024. For the remainder of the year, we will be running two dedicated horizontal rigs and a single base frat crew, which will generate our planned $30 to $45 million of in-process well inventory, very similar to what Range did last year. Also consistent with prior years, we will see capital spending decrease across the second half of the year, while production is set to modestly increase, aligning with expected improvements in natural gas prices heading into 2025.

Dennis L. Degner: Thank you, Paul. Thank you. This concludes today's question and answer session. I'd like to turn the call back over to Mr. Degner for his concluding remarks.

Dennis L. Degner: As we look back on the second quarter, all-in capital came in at $175 million, with a total capital for the first half of the year totaling $345 million.

Dennis L. Degner: I'd just like to thank everyone for joining us on the call, as always, and for the healthy Q&A. If you have any follow-up questions, don't hesitate to reach out to our investor relations team, and we'll see you on the next call in October. Thank you.

Dennis L. Degner: Capital spend for the quarter reflected our base level of activity, along with a spot rig and frack crew we had in early 2024.

Dennis L. Degner: For the remainder of the year, we will be running two dedicated horizontal rigs and single base frack crew, which will generate our planned 30 to 45 million dollars of in-process well inventory, very similar to what Range did last year.

Dennis L. Degner: Also consistent with prior years, we will see capital spending decrease across the second half of the year, while production is set to modestly increase, aligning with expected improvements in natural gas prices heading into 2025.

Operator: Thank you for watching! ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Welcome to the Range Resources Second Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise.

Dennis Degner: Production for the second quarter came in at 2.15 BCF equivalent per day, driven by continued strong well performance from long laterals and ongoing optimization of gathering systems that enhanced performance. Ranges second quarter liquids were approximately 30% of production, slightly lower versus Q1 as a result of a propane cargo that was delayed into early July. Liquid's production is back up to 32% today, near recent highs, reflecting our increased focus on the liquid's rich activity in the first half of the year. We turn to sail 17 wells across our wet and super rich acreage, but seven of these wells on paths with existing production.

Dennis L. Degner: Production for the second quarter came in at 2.15 BCF equivalent per day, driven by continued strong well performance from long laterals and ongoing optimization of gathering systems that enhanced performance.

Dennis L. Degner: Range's second quarter liquids were approximately 30% of production, slightly lower versus Q1 as a result of a propane cargo that was delayed into early July .

Dennis L. Degner: Liquids production is back up to 32% today, near recent highs, reflecting our increased focus on liquids-rich activity in the first half of the year.

Laith Sando: 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 statement. After the speaker's remarks, there will be a question and answer period. At this time, I would like to turn the call over to Mr. Laith Sando, Vice President, Investor Relations, at Range Resources. Please go ahead, sir.

Dennis L. Degner: We turn to sale 17 wells across our wet and super-rich acreage, with 7 of these wells on paths with existing production.

Dennis L. Degner: As we've discussed for years, returning to existing paths is a durable, repeatable part of our program. Returning to paths allows us to minimize our operating surface footprint and re-utilize existing infrastructure while also supporting efficient, nimble operations. Combined, this results in a normalized well cost per foot for range that is differentiated versus peers. Year-to-date well performance and production has also been strong, aided by gathering system optimization efforts that have included compression expansions in Southwest PA. These type of expansions are a normal course of business, as the team continually works to optimize field-level performance and support production from our long-lateral development.

Dennis L. Degner: As we've discussed for years, returning to existing paths is a durable, repeatable part of our program.

Dennis L. Degner: Returning to PADS allows us to minimize our operating surface footprint and reutilize existing infrastructure while also supporting efficient, nimble operations.

Dennis L. Degner: Combined, this results in a normalized well cost per foot for range that is differentiated versus peers.

Laith Sando: Thank you, operator. Good morning, everyone, and thank you for joining Range's second quarter 2024 earnings call. Speakers on today's call are Dennis Degner, Chief Executive Officer, and Mark Scucchi, Chief Financial Officer. Hopefully, you've had a chance to review the press release and updated investor presentation that we've posted on our website. We may reference certain slides on the call this morning. You can also find our 10-Q on Range's website under the Investors tab, or you can access it using the SEC's Edgar system.

Dennis L. Degner: Year-to-date well performance and production has also been strong, aided by gathering system optimization efforts that have included compression expansions in Southwest PA.

Dennis L. Degner: These type of expansions are a normal course of business, as the team continually works to optimize field-level performance and support production from our long lateral development.

Dennis L. Degner: Department. Production for the second half of the year is expected to be approximately 2.2 BCF equivalent per day, placing us near the high end of our previously communicated production guidance. Starting to operations, drilling activity during the quarter added 10 laterals with an average horizontal length of just over 14,300 feet per well, but several over 15,000 feet. And we have now drilled nearly 90 wells in the program's history with lateral length greater than 15,000 feet. For completions, the team continued to successfully operate with the new build electric frack fleet that was onboarded at the start of the year.

Laith Sando: Please note, we'll be referencing certain non-GAAP measures on today's call. Our press release provides reconciliations of these to the most comparable GAAP figures. We've also posted supplemental tables on our website that include realized pricing details by product, along with calculations of EBITDAX cash margins and other non-GAAP measures. With that, I'll turn the call over to Dennis.

Dennis L. Degner: Production for the second half of the year is expected to be approximately 2.2 BCF equivalent per day, placing us near the high end of our previously communicated production guidance.

Dennis L. Degner: Thanks, Laith, and thanks to all of you for joining the call today. Range's second quarter plan was executed successfully and consistent with our strategy for the year, which remains unchanged, operating safely while driving continued operational improvement. Generating free cash flow with peer-leading capital efficiency and prudent allocation of that free cash flow, balancing returns of capital to shareholders with further debt reduction and the long-term development of our world-class assets. I believe our second quarter results reflect the ongoing advancement of these objectives and demonstrate the resilience of Range's business through the cycle.

Dennis L. Degner: Our operational and financial updates highlight Range's high-quality, low-break-even inventory and liquids optionality, which drove another successful quarter while generating free cash. Our low capital intensity continues to be on display in quarters like Q2 and is the result of Range's class-leading drilling and completion costs. Shallow Base Decline, Large Blocky Core Inventory, and Talented Teams.

Dennis L. Degner: According to Operations

Dennis L. Degner: Drilling activity during the quarter added 10 laterals with an average horizontal length of just over 14,300 feet per well, with several over 15,000 feet.

Dennis L. Degner: And, we have now drilled nearly 90 wells in the program's history with lateral lengths greater than 15,000 feet.

Dennis L. Degner: For completions, the team continued to successfully operate with the new-build electric frack fleet that was onboarded at the start of the year.

Dennis Degner: We saw continued strong performance from the equipment and personnel across three different pads in the second quarter. Frack efficiencies finished at just over nine stages per day, while completing approximately 800 stages for the quarter, showcasing the consistent, repeatable nature of our program and placing us on track for the activity plans we've communicated for the year. Supporting our frack efficiencies is Ranger's water sharing program, which contributes approximately $1 million in cost savings above levels a year ago. Looking forward, we believe we will see similar savings from third-party water utilization given our blocky acreage position and existing water infrastructure.

Dennis L. Degner: We saw continued strong performance from the equipment and personnel across three different pads in the second quarter.

Dennis L. Degner: BRAC efficiencies finished at just over nine stages per day, while completing approximately 800 stages for the quarter, showcasing the consistent, repeatable nature of our program and placing us on track for the activity plans we've communicated for the year.

Dennis L. Degner: Supporting our frac efficiencies is Range's water sharing program, which contributed approximately 1 million dollars in cost savings above levels a year ago.

Dennis L. Degner: Looking forward, we believe we will see similar savings from third-party water utilization given our blocky acreage position and existing water infrastructure.

Dennis Degner: Cash lease operating expenses finished the quarter better than anticipated at 11 cents per MCFE, shaped by strong well performance from optimized gathering and efficient water logistics. As we look forward to the second half of the year, we project a similar level of expense performance and are therefore improving our previous guidance for lease operating expenses down to 11 to 13 cents per MCFE.

Dennis L. Degner: Cash lease operating expenses finish the quarter better than anticipated at 11 cents per MCFE.

Dennis L. Degner: shaped by strong well performance from optimized gathering and efficient water logistics.

Dennis L. Degner: As we look forward to the second half of the year, we project a similar level of expense performance, and are therefore improving our previous guidance for lease operating expenses down to $0.11 to $0.13 per MCFE.

Dennis L. Degner: Starting to marketing and starting with NGOs. Ranges flexible transportation portfolio continue to access premium export markets during Q2. As one of the only U.S. Producers with access to international LPG upside, we generated another fantastic quarter in terms of range NGO price realizations. Looking at the NGO macro, international profane demand continues to grow. Chinese profane imports reach an all-time high in the second quarter as they continue to add PDH capacity to consume more propane. At the same time, limited growth in non-U.S. propane supply has led to tightened international fundamentals and it improved our for U.S. exporters.

Dennis L. Degner: These key attributes result in a required reinvestment rate that is among the best in the industry, providing Range a solid foundation for consistently generating significant free cash flow and returns to shareholders, while positioning Range to help meet future energy demand through our diverse transportation portfolio. Bolstering Range's profitability and durability is our liquids contribution. As seen in the second quarter results, liquids revenue provided an uplift in natural gas prices, with NGL Price Realizations providing a substantial premium relative to Henry Hub Natural Gas. When we roll all of that together, our Liquids Revenue Upload is a low-capital intentions.

Speaker Change #128: Turning to marketing and starting with NGLs.

Speaker Change #128: Range's flexible transportation portfolio continued to access premium export markets during Q2.

Speaker Change #128: As one of the only U.S. producers with access to international LPG upside, we generated another fantastic quarter in terms of range NGL price realizations.

Speaker Change #128: Looking at the NGL macro, international propane demand continues to grow.

Speaker Change #128: Chinese propane imports reached an all-time high in the second quarter as they continue to add PDH capacity to consume more propane.

Speaker Change #128: At the same time, limited growth in non-U.S. propane supply has led to tightened international fundamentals and an improved ARB for U.S. exporters.

Dennis Degner: Ranges flexible marketing and transportation portfolio allow us to take advantage of this international opportunity exporting the vast majority of propane produced during the second quarter. Simultaneously, range demonstrated its ability to optimize sales by pivoting butane volume into the domestic market to maximize margins. As a result, range NGOs received $24.35 per barrel in the second quarter. $1.26 per barrel premium to the Montbelview equival. Point. Looking ahead to the balance of 2024 and into early 2025, we expect domestic stock tightening to combine with export demand to support absolute and relative NGO pricing, and we expect ranges NGO price realizations will remain a positive differentiator.

Range: Range's flexible marketing and transportation portfolio allowed us to take advantage of this international opportunity, exporting the vast majority of propane produced during the second quarter.

Range: Simultaneously, Range demonstrated its ability to optimize sales by pivoting butane volume into the domestic market to maximize margins.

Range: As a result, Range AGLs received $24.35 per barrel in the second quarter, a $1.26 per barrel premium to the Montbellevue equivalent.

Range: Looking ahead to the balance of 2024 and into early 2025.

Range: We expect domestic stock tightening to combine with export demand to support absolute and relative NGL pricing.

Range: And we expect Range's NGO price realizations will remain a positive differentiator.

Dennis Degner: On the natural gas side, ranges pricing relative to 9x was right in line with our expectations, as we sold the vast majority of our gas into the Midwest and Gulf Coast regions. On the macro front, we have seen US natural gas production declining year-over-year, driven by maintenance or lower activity levels from industry, alongside durable demand for natural gas that can be observed in areas such as LG exports and increased gas power bird. So we believe the fundamentals continue to be in place for improving natural gas pricing going forward.

Range: On the natural gas side, Range's pricing relative to NYMEX was right in line with our expectations.

Range: as we sold the vast majority of our gas into the Midwest and Gulf Coast regions.

Range: On the macro front, we have seen U.S. natural gas production declining year over year, driven by maintenance or lower activity levels from industry.

Range: alongside durable demand for natural gas that can be observed in areas such as LNG exports and increased gas power burn.

Range: So we believe the fundamentals continue to be in place for improving natural gas pricing going forward.

Dennis Degner: Before handing it over to Mark, I wanted to quickly touch on our most recent corporate sustainability report that was published last week. This report continues to showcase the company's resilience as a safe, low-cost natural gas producer with an enviable emissions profile. Range had a great year for safety, with zero employee incidents for the year. Range also continued its strong environmental performance, driving a 67% reduction in methane emissions intensity over the past five years, reaching just under 0.02%, or more than 90% below the EPA's methane fee threshold. We look forward to discussing these and other results during future meetings.

Speaker Change #129: Before handing it over to Mark, I wanted to quickly touch on our most recent corporate sustainability report that was published last week.

Mark S. Scucchi: This report continues to showcase the company's resilience as a safe, low-cost natural gas producer with an enviable emissions profile.

Mark S. Scucchi: Range had a great year for safety with zero employee incidents for the year.

Mark S. Scucchi: Range also continued its strong environmental performance, driving a 67% reduction in methane emissions intensity over the past five years, reaching just under 0.02% or more than 90% below the EPA's methane fee threshold.

Mark S. Scucchi: We look forward to discussing these and other results during future meetings.

Dennis Degner: So where does that leave us is we're more than halfway through 2024. As stated, we remain constructive on the outlook for natural gas and NGOs. But importantly, even in the presence of relatively high natural gas storage levels and the current commodity backdrop, the resilience of Range's business is on full display. Our ability to generate free cash flow through the cycles is underpinned by our large, contiguous high quality acres position, operational efficiencies, NGL uplift, diverse marketing portfolio, and talented team. We believe the future of natural gas and NGOs remain strong, and we believe Range's position will degenerate substantial value for shareholders in the years ahead.

Mark S. Scucchi: So where does that leave us as we're more than halfway through 2024?

Mark S. Scucchi: As stated, we remain constructive on the outlook for natural gas and NGLs.

Dennis L. Degner: Along with a thoughtful, right-sized hedging program, you get a unique story, generating the lowest break-even among natural gas producers and the most resilient organic free cash flow, as evidenced by our second quarter results and 2024 projection. Importantly, with our vast inventory of de-risked, high-quality Marcellus wells, we have the ability to compound our per-share growth and free cash flow for decades to come. As we look back on the second quarter, all-in capital came in at $175 million, with total capital for the first half of the year totaling $345 million.

Mark S. Scucchi: But importantly, even in the presence of relatively high natural gas storage levels and the current commodity backdrop, the resilience of Range's business is on full display.

Mark S. Scucchi: Our ability to generate free cash flow through the cycles is underpinned by our large, contiguous, high-quality acreage position.

Mark S. Scucchi: Operational Efficiencies.

Mark S. Scucchi: and Geo Uplift.

Mark S. Scucchi: Diverse Marketing Portfolio, and Talented Team.

Mark S. Scucchi: We believe the future of natural gas and NGLs remains strong. And we believe Range is positioned well to generate substantial value for shareholders in the years ahead.

Mark Scucchi: I'll now turn it over to Mark to discuss the financials. Thanks, Dennis. With the first half of 2024 behind us, Range is making steady progress executing a disciplined investment program prudent for this year and forward thinking for next year.

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

Dennis L. Degner: Capital spend for the quarter reflected our base level of activity, along with a spot rig and frack crew we had in early 2024. For the remainder of the year, we will be running two dedicated horizontal rigs and a single base frack crew, which will generate our planned $30 to $45 million of in-process well inventory, very similar to what Range did last year. Also consistent with prior years, we will see capital spending decrease across the second half of the year, while production is set to modestly increase, aligning with expected improvements in natural gas prices heading into 2025.

Mark S. Scucchi: Thanks, Dennis.

Mark S. Scucchi: With the first half of 2024 behind us, Range is making steady progress executing a disciplined investment program prudent for this year and forward thinking for next year.

Mark Scucchi: Range's most fundamental objective is to safely and consistently generate cash flow for stakeholders. Our program for 2024 was designed to successfully navigate fluctuating commodity prices while continuing to generate free cash flow, pay dividends, buy back shares, and repurchase debt, while investing in the long-term development of our high quality assets. As mentioned during our last call, Range has an efficient plan to maintain steady production this year with the flexibility to adapt to near-term commodity prices and resulting economics while also positioning our long-term business for eventual growth as demand increases from domestic and international costs. customers. As incremental demand materializes in basin, near basin, and farther downstream, range has to cost structure, inventory, and infrastructure to remain a reliable long-term energy supplier.

Mark S. Scucchi: Range's most fundamental objective is to safely and consistently generate cash flow for its stakeholders.

Mark S. Scucchi: Our program for 2024 was designed to successfully navigate fluctuating commodity prices while continuing to generate pre-cash flow, pay dividends, buy back shares, and repurchase debt, while investing in the long-term development of our high-quality assets.

Mark S. Scucchi: As mentioned during our last call,

Mark S. Scucchi: Range has an efficient plan to maintain steady production this year with the flexibility to adapt to near-term commodity prices and resulting economics while also positioning our long-term business for eventual growth as demand increases from domestic and international customers.

Mark S. Scucchi: As incremental demand materializes in-basin, near-basin, and farther downstream, Range has to cost structure, inventory, and infrastructure to remain a reliable long-term energy supplier.

Mark S. Scucchi: Results of the second quarter continue to highlight the business strengths generated by ranges production mix and transportation portfolio. Realized price per unit of production before NIMEX hedging was 51 cents above NIMEX and REHUB. Crisis is a byproduct of our diversified mix and production and sales outlets. Including edges, range realized $3.10 per NCSE, or $1.22 cents above NIMEX and REHUB prices. Resilient pricing yielded second quarter cash margins per unit of production, the $1.22 cents, a healthy 37% margin, resulting in cash flow before working capital of approximately $237 million. Cash flow for the quarter was allocated to $175 million in capital investment, the repurchase of $48 million in senior notes, along with roughly $19 million in dividends, and $20 million in common shares repurchased.

Dennis L. Degner: Production for the second quarter came in at 2.15 BCF equivalent per day, driven by continued strong well performance from long laterals and ongoing optimization of gathering systems and enhanced performance. Range's second quarter liquids were approximately 30% of production. Although slightly lower versus Q1 as a result of a propane cargo that was delayed into early July, liquids production is back up to 32% today, near recent highs, reflecting our increased focus on liquids-rich activity in the first half of the year.

Dennis L. Degner: We turn to sale 17 wells across our wet and super-rich acreage, but seven of these wells are on paths with existing production. As we've discussed for years, returning to existing paths is a durable, repeatable part of our program.

Mark S. Scucchi: Results of the second quarter continue to highlight the business strengths generated by Range's production mix and transportation portfolio.

Dennis L. Degner: Returning to PADS allows us to minimize our operating surface footprint and reutilize existing infrastructure while also supporting efficient, nimble operations. Combined, this results in a normalized well cost per foot for range that is differentiated versus pure. Year-to-date well performance and production has also been strong, aided by gathering system optimization efforts that have included compression expansions in Southwest PA. These types of expansions are a normal course of business, as the team continually works to optimize field-level performance and support production from our long-lateral development.

Mark S. Scucchi: Realized price per unit of production before NYMEX hedging was 51 cents above NYMEX Henry Hub prices as a byproduct of our diversified mix and production and sales outlets.

Dennis L. Degner: Production for the second half of the year is expected to be approximately 2.2 BCF equivalent per day, placing us near the high end of our previously communicated production guide pertaining to operations. Drilling activity during the quarter added 10 laterals with an average horizontal length of just over 14,300 feet per well, several over 15,000 feet.

Mark S. Scucchi: Including hedges, Range realized $3.10 per MCFE or $1.22 above NYMEX and rehab prices.

Mark S. Scucchi: Resilient pricing yielded second quarter cash margins per unit of production of $1.22, a healthy 37% margin.

Dennis L. Degner: And we have now drilled nearly 90 wells in the program's history with lateral lengths greater than 15,000 feet. For completions, the team continued to successfully operate with the new-build electric frac fleet that was onboarded at the start of the year. We saw continued strong performance from the equipment and personnel across three different pads in the second quarter. Brach Efficiency finished at just over 9 stages per day while completing approximately 800 stages for the quarter, showcasing the consistent, repeatable nature of our program and placing us on track for the activity plans we've communicated for the year.

Mark S. Scucchi: resulting in cash flow before working capital of approximately $237 million.

Mark S. Scucchi: Cash flow for the quarter was allocated to $175 million in capital investments.

Mark S. Scucchi: The repurchase of $48 million in senior notes, along with roughly $19 million in dividends and $20 million in common shares repurchased.

Mark Scucchi: Cash margins were generated by diverse sales and a right-sized hedging program, but also by continued deliberate focus on unit costs. During the second quarter, total cash unit costs were $1.88, down 7 cents from the first quarter. Decreases in interest expense and G&A are a byproduct of reduced debt and thoughtful spending. Gathering processing and transport for the second quarter declined $5 cents from last quarter, and as a function of prevailing commodity prices and timing of NGL cargo. Second quarter, NGL market prices declined, reducing processing costs, and with lower natural gas prices we also experienced lower fuel and electricity costs, all right-way risk contract elements that maintain margins.

Dennis L. Degner: Supporting our frac efficiencies is Range's water sharing program, which contributed approximately $1 million in cost savings above levels a year ago. Looking forward, we believe we will see similar savings from third-party water utilization given our blocky acreage position and existing water infrastructure. Cash lease operating expenses finished the quarter better than anticipated at 11 cents per MCFE, shaped by strong well performance from optimized gathering and efficient water legislation.

Mark S. Scucchi: Cash margins were generated by diverse sales and a right-sized hedging program, but also by continued deliberate focus on unit costs.

Mark S. Scucchi: During the second quarter, total cash unit costs were $1.88.

Mark S. Scucchi: Down 7 cents from the first quarter.

Mark S. Scucchi: Decreases in interest expense and G&A are a byproduct of reduced debt and thoughtful spending.

Mark S. Scucchi: Gathering, processing, and transport for the second quarter declined 5 cents from last quarter and is a function of prevailing commodity prices and timing of NGL cargos.

Mark S. Scucchi: Second quarter, NGL market prices declined, reducing processing costs, and with lower natural gas prices, we also experienced lower fuel and electricity costs, all right-way risk contract elements that maintain margins.

Mark S. Scucchi: Ranges NGL sales benefit from direct access to international markets out of the East Coast. One cargo loading occurred in the first days of July, as such the volumes to be loaded were inventory at quarter end, with the GP&T costs and revenues in recognized in July, which should bring third quarter GP&T back towards midpointed guidance.

Dennis L. Degner: As we look forward to the second half of the year, we project a similar level of expense performance and are therefore improving our previous guidance for lease operating expenses down to $0.11 to $0.13 per MCFE. Turning to marketing, Range's flexible transportation portfolio continued to access premium export markets during Q2. As one of the only U.S. producers with access to international LPG upside, we generated another fantastic quarter in terms of range NGL price realism.

Mark S. Scucchi: Range's NGL sales benefit from direct access to international markets out of the East Coast.

Dennis L. Degner: Looking at the NGL macro, international propane demand continues to grow. Chinese propane imports reached an all-time high in the second quarter as they continue to add PDH capacity to consume more propane. At the same time, limited growth in non-U.S. propane supply has led to tightened international fundamentals and an improved ARB for U.S. exports. Range's flexible marketing and transportation portfolio allowed us to take advantage of this international opportunity, exporting the vast majority of propane produced during the second quarter.

Dennis L. Degner: Simultaneously, Range demonstrated its ability to optimize sales by pivoting butane volume into the domestic market to maximize margins. As a result, Range AGLs received $24.35 per barrel in the second quarter, a $1.26 per barrel premium to the Montbellevue equivalent.

Mark S. Scucchi: One cargo loading occurred in the first days of July . As such, the volumes to be loaded were inventory at quarter end, with the GP&T costs and revenues being recognized in July , which should bring third quarter GP&T back towards midpoint of guidance.

Mark S. Scucchi: Right after safety and sound environmental practices, capital allocation is among the most important corporate responsibilities. As you can see during the second quarter, we continue to carefully balance funding of prudent investments in the business with returns of capital while maintaining financial strength. Prudent investment to us is responsive to both the near-term realities of commodity prices while also investing in the future to be prepared for the approaching growth in natural gas demand. With low full cycle costs, range has been able to generate pre-cash flow while investing in modest inventory to enable efficient growth when the market calls for it.

Speaker Change #130: Right after safety and sound environmental practices, capital allocation is among the most important corporate responsibilities.

Speaker Change #131: As you can see during the second quarter, we continue to carefully balance funding of prudent investments in the business with returns of capital while maintaining financial strength.

Speaker Change #131: Prudent investment, to us, is responsive to both the near-term realities of commodity prices, while also investing in the future, to be prepared for the approaching growth in natural gas demand.

Dennis L. Degner: Looking ahead to the balance of 2024 and into early 2025, we expect domestic stock tightening to combine with export demand to support absolute and relative NGL prices. We expect Range's NGO price realizations will remain a positive differentiator; on the natural gas side, Range's pricing relative to NIMEX was right in line with our expectations. We sold the vast majority of our gas into the Midwest and Gulf Coast regions. On the macro front, we have seen U.S. natural gas production declining year over year, driven by maintenance or lower activity levels from the industry, alongside durable demand for natural gas that can be observed in areas such as LNG exports and increased gas power.

Speaker Change #131: With low full cycle costs, Range has been able to generate free cash flow while investing in modest inventory to enable efficient growth when the market calls for it.

Mark Scucchi: At the same time, we prioritize financial strength so that we can make opportunistic decisions. Management. That financial strength enables Range to execute what has been a very efficient share repurchase program. And it's a program we have greater flexibility to execute as we remain within our target debt levels. Looking at the ballot sheet briefly, the notes do 2025 mature in less than one year. Those notes are easily covered by cash on hand, cash to be generated in coming quarters, and an undrawn revolving credit facility. Suffice it to say that we believe there is ample liquidity to efficiently retire this debt as the maturity data approaches.

Speaker Change #131: At the same time, we prioritize financial strength so that we can make opportunistic decisions.

Speaker Change #131: That financial strength enables Range to execute what has been a very efficient share repurchase program. And it's a program we have greater flexibility to execute as we remain within our target debt levels.

Speaker Change #131: Looking at the ballot sheet briefly, the notes due 2025 mature in less than one year. Those notes are easily covered by cash on hand, cash to be generated in coming quarters, and an undrawn revolving credit facility.

Speaker Change #131: Suffice it to say that we believe there is ample liquidity to efficiently retire this debt as the maturity date approaches.

Mark S. Scucchi: With a ratings upgrade from S&P this quarter and a positive outlook for Moody's, we believe the strength of range business is being recognized. One significant element of our financial strategy that provides a stabilizing effect to better enable efficient funding of investments is our thoughtfully constructed and carefully executed hedging program. We believe added predictability from appropriately sized hedging provides exposure to improve long-term natural gas market dynamics while also increasing confidence in near-term forecast cash flow. A stable financial foundation enables better planned, more consistent, efficient operations while protecting the balance sheet and can also create opportunities for reinvestment and shareholder returns.

Speaker Change #131: With a ratings upgrade from S&P this quarter and a positive outlook for Moody's, we believe the strength of Range's business is being recognized.

Dennis L. Degner: So we believe the fundamentals continue to be in place for improving natural gas prices going forward. Before handing it over to Mark, I wanted to quickly touch on our most recent corporate sustainability report that was published last week. This report continues to showcase the company's resilience as a safe, low-cost natural gas producer with an enviable emissions profile. Range had a great year for safety, with zero employee incidents for the year.

Speaker Change #131: One significant element of our financial strategy that provides a stabilizing effect to better enable efficient funding of investments is our thoughtfully constructed and carefully executed hedging program.

Speaker Change #131: We believe added predictability from appropriately sized hedging provides exposure to improved long-term natural gas market dynamics, while also increasing confidence in near-term forecasted cash flow.

Speaker Change #131: A stable financial foundation enables better planned, more consistent, efficient operations.

Speaker Change #131: while protecting the balance sheet.

Speaker Change #131: and can also create opportunities for reinvestment and shareholder returns.

Mark Scucchi: Ranges hedging philosophy has produced successful results that have served the company well, and we expect will continue to do so in the future. Presently, range has approximately 55% of second half 2024 natural gas hedged with an average for price of $3.70. And in 2025, approximately 35% hedged with an average for price of $3.90, providing a range of stable base to consistently generate free cash flow through market cycles. Financial results rely on safe, efficient operations, and the range team executed another successful quarter, delivering planned production on budget.

Dennis L. Degner: Range also continued its strong environmental performance, driving a 67% reduction in methane emissions intensity over the past five years, reaching just under 0.02%, or more than 90% below the EPA's methane fee threshold. We look forward to discussing these and other results during future meetings.

Speaker Change #132: Range's hedging philosophy has produced successful results that have served the company well and we expect will continue to do so in the future.

Speaker Change #132: Presently, Range has approximately 55% of second half 2024 natural gas hedged with an average floor price of $3.70.

Speaker Change #132: And in 2025, approximately 35% hedged with an average floor price of $3.90.

Dennis L. Degner: As we're more than halfway through 2020, as stated, we remain constructive on the outlook for natural gas and NGLs. But importantly, even in the presence of relatively high natural gas storage levels and the current commodity backdrop, the resilience of Range's business is on full display. Our ability to generate free cash flow through the cycles is underpinned by our large, contiguous, high-quality acreage position, operational efficiency, and G.O. Lovelace.

Speaker Change #132: providing Range a stable base to consistently generate free cash flow through market cycles.

Dennis L. Degner: Diverse Marketing Portfolio and Talented Team. We believe the future of natural gas and NGLs remains strong, and we believe Range is positioned well to generate substantial value for shareholders in the years ahead. I'll now turn it over to Mark to discuss the financials. Thanks, Dennis.

Speaker Change #132: Financial results rely on safe, efficient operations, and the range team executed another successful quarter, delivering planned production on budget.

Mark S. Scucchi: As a reminder, the plan we announced for 2024 differs slightly from most others in the industry. And at our capital efficiency, low full cycle cost paired with advantage marketing of our production generates meaningful margin at current commodity prices, meaning range has options. Options on how we redeploy capital into the drill bit, infrastructure like water facilities that can provide durable cost reductions, or low-cost lateral extending inventory enhancing land, among other attractive alternatives. When comparing capital efficiency on a per unit of production basis or any similar metric, a year of depleting inventory can enhance optics in the short run for some.

Speaker Change #132: As a reminder, the plan we announced for 2024 differs slightly from most others in the industry, and at our capital efficiency,

Mark S. Scucchi: With the first half of 2024 behind us, Range is making steady progress executing a disciplined investment program prudent for this year and forward-thinking for next year. Range's most fundamental objective is to safely and consistently generate cash flow for its stakeholders. Our program for 2024 was designed to successfully navigate fluctuating commodity prices while continuing to generate free cash flow, pay dividends, buy back shares, and repurchase debt, while investing in the long-term development of our high-quality assets.

Speaker Change #132: Low full cycle costs paired with advantaged marketing of our production generates meaningful margin at current commodity prices.

Speaker Change #132: Meaning, Range has options.

Speaker Change #132: options on how we redeploy capital into the drill bit.

Speaker Change #132: infrastructure, like water facilities, that can provide durable cost reductions.

Speaker Change #132: or low-cost, lateral-extending, inventory-enhancing land, among other attractive alternatives.

Speaker Change #132: When comparing capital efficiency on a per unit of production basis or any similar metric, a year of depleting inventory can enhance optics in the short run for some.

Mark Scucchi: We believe lasting efficiency, particularly in the face of expected growing demand, provides range shareholders greater leverage to improving markets. Ranges business plans continue to be executed on what we believe is the largest per share exposure to core Appalachia inventory paired with the transport and sales portfolio delivering production across the U.S. and internationally, all underpinned by a strong financial foundation. Corporation.

Speaker Change #132: We believe lasting efficiency.

Speaker Change #132: particularly in the face of expected growing demand provides range shareholders greater leverage to improving markets.

Mark S. Scucchi: As mentioned during our last call, Range has an efficient plan to maintain steady production this year, with the flexibility to adapt to near-term commodity prices and resulting economics, while also positioning our long-term business for eventual growth as demand increases from domestic and international customers. As incremental demand materializes in-basin, near-basin, and farther downstream, Range has to cost structure, inventory, and infrastructure to remain a reliable long-term energy supplier. Results of the second quarter continue to highlight the business strengths generated by Range's production mix and transportation portfolio. The realized price per unit of production before NYMEX hedging was $0.51 above NYMEX.

Ranger: Range's business plan continues to be executed on what we believe is the largest per share exposure to core Appalachia inventory, paired with a transport and sales portfolio delivering production across the U.S. and internationally, all underpinned by a strong financial foundation.

Mark S. Scucchi: We have the team, assets, and balance sheet to succeed through price cycles, and we believe the range of business can and will continue to deliver significant value to investors.

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

Dennis Degner: Dennis, back to you. Thanks, Mark. The first half of the year results for range reflect a consistent theme communicated in past quarters. Execution of another Maintenance Plus operational program as planned. Consistent advancement in our overall efficiencies, generating free cash flow, and prudent allocation of that cash flow, bouncing returns of capital, further balance sheet improvements, and the optimal development of our world-class asset base.

Mark S. Scucchi: Henry Hub prices, as a byproduct of our diversified mix and production and sales outlook, including hedges, range realized $3.10 per MCFE or $1.22 above NYMEX and rehab prices. Resilient pricing yielded second quarter cash margins per unit of production of $1.22, a healthy 37% margin, resulting in cash flow before working capital of approximately $237 million. Cash flow for the quarter was allocated to $175 million in capital investment, the repurchase of $48 million in senior notes, along with roughly $19 million in dividends and $20 million in common share repurchase.

Dennis L. Degner: Dennis, back to you.

Dennis L. Degner: Thanks, Mark.

Dennis L. Degner: The first half of the year results for Range reflect a consistent theme communicated in past quarters.

Dennis L. Degner: Execution of another Maintenance Plus Operational Program, as planned.

Dennis L. Degner: Consistent advancement in our overall efficiencies.

Dennis L. Degner: Generating free cash flow.

Dennis L. Degner: and prudent allocation of that cash flow, balancing returns of capital, further balance sheet improvements, and the optimal development of our world-class asset base.

Dennis Degner: You've heard a state this before, but we continue to believe the results communicated today showcased that ranges businesses in the best place in company history, having de-risked a high-quality inventory measured in decades, and translated that into a business capable of generating free cash flow through these type of cycles.

Mark S. Scucchi: Cash margins were generated by diverse sales and a right-sized hedging program but also by continued deliberate focus on unit costs. During the second quarter, total cash unit costs were $1.88, down 7 cents from the first.

Mark S. Scucchi: Decreases in interest expense and GNA are a byproduct of reduced debt and thoughtful spending. Gathering, Processing, and Transport for the second quarter declined 5 cents from last quarter and is a function of prevailing commodity prices and timing of NGL cargo. In the second quarter, NGL market prices declined, reducing processing costs. And with lower natural gas prices, we also experience lower fuel and electricity costs, all right-way risk contract elements that maintain margin; ranges in jail sales benefit from direct access to international markets out of the East Coast. One cargo loading occurred in the first days of July.

Mark S. Scucchi: As such, the volumes to be loaded were inventory at quarter end, with the GP&T costs and revenues being recognized in July, which should bring third quarter GP&T back to the midpoint of guidance. Right after safety and sound environmental practices, capital allocation is among the most important corporate responsibilities. As you can see, during the second quarter, we continued to carefully balance funding of prudent investments in the business with returns of capital while maintaining financial. Prudent investment, to us, is responsive to both the near-term realities of commodity prices while also investing in the future to be prepared for the approaching growth in natural gas demand.

Dennis L. Degner: You've heard us state this before, but we continue to believe the results communicated today showcase that Range's business is in the best place in company history.

Dennis L. Degner: having de-risked a high-quality inventory measured in decades and translated that into a business capable of generating free cash flow through these type of cycles.

Dennis L. Degner: But that, let's open up the line for questions. Thank you, Mr. Degner.

Mark S. Scucchi: With low full cycle costs, Range has been able to generate free cash flow while investing in modest inventory to enable efficient growth when the market calls for it. At the same time, we prioritize financial strength so that we can make opportunistic decisions. That financial strength enables Range to execute what has been a very efficient share repurchase program. As a result, we have greater flexibility to execute as we remain within our target debt level. Looking at the ballot sheet briefly, the notes due 2025 mature in less than one year.

Mark S. Scucchi: Those notes are easily covered by cash on hand, cash to be generated in the coming quarters, and an undrawn revolving credit facility. Suffice it to say that we believe there is ample liquidity to efficiently retire this debt as the maturity date approaches. With a ratings upgrade from S&P this quarter and a positive outlook for Moody's, we believe the strength of Range's business is being recognized. One significant element of our financial strategy that provides a stabilizing effect to better enable efficient funding of investment is our thoughtfully constructed and carefully executed hedging program. We believe added predictability from appropriately sized hedging provides exposure to improved long-term natural gas market conditions while also increasing confidence in near-term

Mark S. Scucchi: A Stable Financial Foundation enables better planned, more consistent, efficient operations while protecting the balance and can also create opportunities for reinvestment and shareholder returns. Range's hedging philosophy has produced successful results that have served the company well, and we expect it will continue to do so in the future. Presently, Range has approximately 55% of second half 2024 natural gas hedged with an average floor price of $3.70, and in 2025, approximately 35% hedged with an average floor price of $3.90, providing Range with a stable base to consistently generate free cash flow through the market.

Speaker Change #134: With that, let's open up the line for questions.

Mark S. Scucchi: Financial results rely on safe, efficient operations, and the range team executed another successful quarter, delivering planned production on. As a reminder, the plan we announced for 2024 differs slightly from most others in the industry and at our capital official. Low full-cycle cost paired with advantaged marketing of our production generates meaningful margin at current commodity prices, meaning Range has off, options on how we redeploy capital into the drill bit, infrastructure like water facilities that can provide durable cost reduction for Low-Cost Lateral Extending Inventory Enhancing LAMP, among other attractive alternatives.

Operator: The question and answer session will now begin. If you would like to ask a question, please indicate by pressing the star key, then 1-1. If you are on a speaker phone, please pick up your handset before asking your question. If you would like to withdraw your question, you may do so by pressing star 1-1 again. One moment.

Mark S. Scucchi: When comparing capital efficiency on a per-unit of production basis or any similar metric, The Year of Depleting Inventory can enhance optics in the short run for some, but we believe laughter, particularly in the face of expected growing demand, provides range shareholders greater leverage to improve the market. Range's business plan continues to be executed on what we believe is the largest per share exposure to core Appalachian, paired with a transport and sales portfolio delivering production across the U.S. and internationally, all underpinned by a strong financial foundation.

Speaker Change #135: Thank you, Mr. Degner. The question and answer session will now begin.

Speaker Change #136: If you would like to ask a question, please indicate by pressing the star key, then 1-1.

Speaker Change #137: If you are on a speakerphone, please pick up your handset before asking your question. If you would like to withdraw your question, you may do so by pressing star 11 again.

Operator: The first question is from Roger Reed of Wells Fargo. Yeah, thank you. Good morning. Congratulations on the quarter.

Mark S. Scucchi: We have the team, assets, and balance sheet to succeed through price cycles, and we believe the Range business can and will continue to deliver significant value to investors. Thanks, Mark. The first half of the year results for Range reflect a consistent theme communicated in previous quarters.

Speaker Change #137: The first question is from Roger Read of Wells Fargo.

Dennis L. Degner: Execution of another Maintenance Plus Operational Program as planned, consistent advancement in our overall efficiency, generating free cash flow, and Pruden Allocation of that cash flow, balancing returns of capital, further balance sheet improvements, and the optimal development of our world-class asset base. You've heard us state this before, but we continue to believe the results communicated today showcase that Range's business is in the best place in company history, having de-risked a high-quality inventory measured in decades and translated that into a business capable of generating free cash flow through these types of cycles.

Dennis L. Degner: With that, let's open up the line for questions. Thank you, Mr. Degner. The question and answer session will now begin. If you would like to ask a question, please indicate by pressing the star key, then 1-1. If you are on a speakerphone, please pick up your handset before asking your question. If you would like to withdraw your question, you may do so by pressing star 11 again.

Roger David Read: Mark, I'd like to come back on some stuff you were saying at the very end. Some of the opportunities you listed to let's call it enhanced margins, improved returns, et cetera. If we were to think about those in terms of magnitude of what they can do for you, but also the timeline of achievability, how would that list of opportunities shake out? Yeah, good morning. It's a good question, and it's a broad question just because of the breadth of opportunity range has ahead of it. I think identified both have touched on various ways in which we can continue to drive down our cash unit costs structure as well as the capital efficiency.

Roger David Read: Yeah, thank you. Good morning.

Roger David Read: Congratulations on the quarter.

Roger David Read: Um, Mark, I'd like to come back on some stuff you were saying there at the very end, some of the, you know, opportunities you listed to, you know, let's call it enhance margins, improve returns, et cetera. If we were to think about those in terms of.

Speaker Change #138: You know, magnitude of what they can do for you, but also sort of the timeline of achievability. How would that, how would that list of opportunities shake out?

Operator: One moment. The first question is from Roger Read of Wells Fargo. Yeah, thank you. Good morning.

Speaker Change #139: Yeah, good morning. It's a good question and it's a broad question just because of the breadth of opportunity Range has ahead of it. I think Dennis and I both have touched on various ways in which we can continue to drive down our cash unit costs structure as well as the capital efficiency.

Roger David Read: Congratulations on the quarter. Mark, I'd like to come back on some stuff you were saying there at the very end, some of the, you know, opportunities you listed to, you know, enhance margins, improve returns, etc. If we were to think about those in terms of, you know, the magnitude of what they can do for you, but also sort of the timeline of achievability, how would that list of opportunities shake out? Yeah, good morning.

Mark Scucchi: You've seen the team be very efficient on direct operating costs, LOE, continued mindful execution out in the field. Water handling is a topic we consistently discuss, which touches on both improvements in LOE and our capital efficiency. That's a day-to-day exercise by the team in the field, but it's also some modest capital investments, as you know that was part of our capital allocation process for this year. Something we hadn't done in any size or consequence for roughly a decade. That blocked up nature of our acreage position is really a lot of patient handling and use of that infrastructure, and expanding that this year became timely.

Speaker Change #140: You've seen the team be very efficient on direct operating costs, LOE, you know, continued mindful execution out in the field. Water handling is a topic we consistently discuss, which touches on both

Mark S. Scucchi: It's a good question, and it's a broad question, just because of the breadth of opportunity Range has ahead of it. I think Dennis and I both touched on various ways in which we can continue to drive down our cash unit cost structure, as well as capital efficiency. You've seen the team be very efficient on direct operating costs, LOE, you know, continued mindful execution out in the field. Water handling is a topic we consistently discuss, which touches on both improvements in LOE and our capital efficiency.

Speaker Change #140: Improvements in LOE and our capital efficiency.

Speaker Change #140: So, that's a day-to-day exercise by the team in the field, but it's also some modest capital investments, as you know, that was part of our capital allocation process for this year, something we hadn't done in any size or consequence for roughly a decade. That blocked up nature of our acreage position has really allowed efficient handling and use of that infrastructure, and expanding that this year became timely.

Mark S. Scucchi: So that's a day-to-day exercise by the team in the field, but it's also some modest capital investments. As you know, that was part of our capital allocation process for this year, something we hadn't done in any size or consequence for roughly a decade. That blocked-up nature of our acreage position really requires a lot of efficient handling and use of that infrastructure, and expanding that this year became timely, and with what we expect to be about a year of better payback on that investment, it should pay back many years into the future.

Mark Scucchi: With what we expect to be about a one-year of better payback on that investment, it should pay back many years into the futures. Is your work the way down the cost structure? I think, GPMT, being a larger slide item, is clearly an area of focus. That's a focus for cost, but I think more importantly it's about margins. It's about maintaining and enhancing that portfolio of sales outlets we have. So today it's a great outlet moving 80% of our gas out of the basin, but over time we think that range will continue to have the opportunity to sell its molecules into strong end markets, be it today with our existing production profile or when the market calls for it and there's incremental production. We think that we will have the ability to move those molecules to strong end markets as well, be it after gas or an after gas.

Speaker Change #140: and with what we expect to be about a...

Mark S. Scucchi: As you work your way down the cost structure, I think, GPMT being a larger slide item, it's clearly an area of focus. That's a focus for cost, but I think more importantly, it's about margins. It's about maintaining and enhancing that portfolio of sales outlets we have. So today, it's a great outlet, moving 80% of our gas out of the basin.

Speaker Change #140: One year of better payback on that investment. It should pay back many years into the future. As you work your way down the cost structure, I think GPMT being the largest line item is clearly an area of focus. That's a focus for cost, but I think more importantly, it's about margins.

Speaker Change #140: It's about maintaining and enhancing that portfolio of sales outlets we have. So today it's a great outlet moving 80% of our gas out of the basin.

Mark S. Scucchi: But over time, we think that Range will continue to have the opportunity to sell its molecules into strong end markets, be it today with our existing production profile or when the market calls for it and there's incremental production. We think that we will have the ability to move those molecules to strong end markets as well, be it natural gas or natural gas. And then on the capital front, again, the topics that come to mind are extending lateral links, which, again, you've seen us allocate a little bit of capital to the land to be able to do that, as well as just efficiently running crews this year. Running two rigs and one frat crew, for example, is all it takes for Range to execute this program this year.

Speaker Change #140: But over time, we think that Range will continue to have the opportunity to sell its molecules into strong end markets.

Speaker Change #140: be it today with our existing production profile or when the market calls for it and there's incremental production, we think that we will have the ability to move those molecules to strong end markets as well, be it natural gas or natural gas liquids.

Mark S. Scucchi: liquids. Um, and then on the capital front, again, the common topics that come to mind are extending ladder links, which again, you've seen us allocate a little bit of capital to the land, um, to be able to do that as well as just efficiently running crews this year, running two rigs and one for our crew, for example, is all it takes for Range to execute this program this year, hold a steady, efficient maintenance program. And potentially running those for full 12 months, generate, you know, very, very modest growth into next year, given the inventory that we've built up of the last two years.

Speaker Change #140: And then on the capital front, again, the common...

Speaker Change #141: Topics that come to mind are extending lateral lengths, which again, you've seen us

Speaker Change #141: Allocate a little bit of capital to the land.

Speaker Change #141: to be able to do that, as well as just efficiently running crews this year. Running two rigs and one frat crew, for example, is all it takes for Range to execute this program this year. Hold a steady, efficient maintenance program.

Mark S. Scucchi: Hold a steady, efficient maintenance program and potentially run them for a full 12 months, generating very modest growth into next year, given the inventory that we've built up over the last few years. So, all those factors together play into not just one specific area of improvement but a whittling down across the cost structure and the capital. No, I appreciate that clarification. And then the other question I had more sort of a, you know, what is the tripwire or whatever it is you think about setting up your hedging for 2025?

Speaker Change #141: and potentially running those for a full 12 months generate, you know, very modest growth into next year given the inventory that we've built up over the last few years. So all those factors together play into not just one specific area of improvement, but whittling down across the cost structure and the capital efficiency.

Mark S. Scucchi: So all those factors together plan to not just one specific area of improvement, but whittling down across the cost structure and the capital efficiency.

Roger Reed: No, appreciate that clarification.

Mark S. Scucchi: And then the other question I had, more sort of a, you know, what is the tripwire, whatever, but did you think about setting up your hedging for 2025? Um, I mean, obviously you're 35% there, but if we think about getting kind of equivalent to this year, is there, is that something that's going to be episodic or, you know, is there a price level you'd feel more comfortable with or, you know, as you think about the macro potentially 25 on a little better supply-demand balance across the country. Do you want to be more patient on hedging?

Speaker Change #142: No, I appreciate that clarification. And then the other question I had more sort of a, you know, what, what is the, the tripwire or whatever, but as you think about setting up your hedging for 2025,

Mark S. Scucchi: I mean, obviously, you're 35% there. But if we think about getting kind of an equivalent to this year, is there, is that something that's going to be episodic? Or is there a price level you'd feel more comfortable with?

Speaker Change #143: I mean, obviously you're 35% there, but if we think about getting kind of equivalent to this year, is there...

Speaker Change #143: Is that something that's going to be episodic or, you know, is there a price level you'd feel more comfortable with or, you know, as you think about the macro, potentially $25 on a little better supply-demand balance across the country?

Mark S. Scucchi: Or, as you think about the macro, potentially 25 and a little better supply-demand balance across the country, do you want to be more patient on hedging? How are you thinking about that? Yeah, I'll start with we feel very good about where the 2025 book stands today. Just backing up to the philosophy, you know, we're running an enterprise, a going concern, with 30 plus years of drilling inventory. So, you know, this is about managing risk in the business prudently while not hedging away the upside in the cash flow. So to that end, the philosophy is to try to cover the fixed costs to maintain steady operations. Picking up and dropping crews and things is extremely inefficient and costly.

Mark Scucchi: How are you thinking about that? Yeah, I'll start with we feel very good about where the 2025 book stands today. Just backing up to the philosophy, and we're running an enterprise, are going concern 30 plus years of drilling inventory. So, you know, this is about managing risk in the business. Which is pretty well not hedging away the upside and the cash flow. So to that end, the philosophy is to try to cover the fixed costs, to maintain steady operations. Picking up and dropping crews and things is extremely inefficient and costly. So having more stable predictability of that cash flow, we think adds a lot of value.

Speaker Change #144: Do you want to be more patient on hedging? How are you thinking about that?

Speaker Change #145: Yeah, I'll start with we feel very good about where the 2025 book stands today.

Speaker Change #146: Just backing up to the philosophy, you know, we're running an enterprise, a going concern, 30-plus years of drilling inventory. So, you know, this is about managing risk in the business prudently while not hedging away the upside in the cash flow. So, to that end, the philosophy is to try to cover the fixed costs, to maintain

Speaker Change #146: steady operations. Picking up and dropping crews and things is extremely inefficient and costly. So having more stable predictability of that cash flow we think adds a lot of value.

Mark Scucchi: So, with that in mind, how do you shape 2025? Well, we feel like the book was designed to do that at the prices we were able to lock in. It's also shaped based on the fundamentals as we see them unfolding over the next 12 and 18 months. LNG and service is clearly a focus on the headlines. Some facilities are early, and some facilities may be delayed. So as we see those opportunities becoming reality late this year and early next year, the incremental positions that were added are really front-loaded the first half of 2025. And they're in the form of collars so that we can provide some downside protection while retaining positive exposure to improved gas prices in the first half of the year.

Mark S. Scucchi: So having more stable predictability of that cash flow, we think, adds a lot of value. So with that in mind, how do you shape 2025? Well, we feel like the book was designed to do that at the prices we were able to lock in. It's also shaped based on the fundamentals as we see them unfolding over the next 12 and 18 months. LNG in service is clearly a focus in the headlines. Some facilities are early, and some facilities may be delayed.

Speaker Change #146: So, with that in mind, how do you shape 2025? Well, we feel like the book was designed to do that at the prices we were able to lock in. It's also shaped based on the fundamentals as we see them unfolding over the next 12 and 18 months.

Speaker Change #146: LNG in service is clearly a focus in the headlines.

Mark S. Scucchi: So as we see those opportunities becoming reality late this year and early next year, the incremental positions that were added are really front and loaded for the first half of 2025. And they're in the form of collars so that we can provide some downside protection while retaining positive exposure to improved gas prices in the first half of the year. So that's really how we think about it. Appreciate that. Thank you. Thank you. Our next question comes from Michael Scialla of Stevens. Morning, everybody.

Speaker Change #146: Some facilities are early and some facilities may be delayed. So as we see those opportunities becoming reality late this year and early next year, the incremental positions that were added are really front and loaded the first half of 2025.

Speaker Change #146: and they're in the form of collars so that we can provide some downside protection while retaining positive exposure to improved gas prices in the first half of the year. So that's that's really how we think about next year.

Mark S. Scucchi: So that's really how we think about next year.

Roger David Read: Appreciate that. Thank you.

Speaker Change #146: Appreciate that. Thank you.

Michael Stephen Scialla: Our next question comes from Michael Skjala of Stevens.

Michael Stephen Scialla: Dennis and Mark, you both mentioned, you see the improving natural gas fundamentals moving forward, um, and your 24 production guidance is moving to the high end of the range. If that doesn't play out, I was curious what would change your plans you're contemplating? Or do you feel like, with the natural gas liquids revenues, that you're really not the company that would need to adjust your plans, be it curtailing production or delaying any more turn in line? Yeah, good morning, Michael.

Speaker Change #146: Our next question comes from Michael Scialla of Stevens.

Michael Scialla: Morning, everybody. Dennis and Mark, you both mentioned you know, you see the improving natural gas fundamentals moving forward. In your 24 production guidance is moving to the high end of the range. If that doesn't play out. I'm curious what would change to your plans, your contemplating, or do you feel like? With the natural gas liquids revenues that you're really not the company that would need to adjust your plants, be it curtailing production or delaying any more turning lines.

Michael Stephen Scialla: Morning, everybody.

Speaker Change #147: Dennis and Mark, you both mentioned, you know, you see the improving natural gas fundamentals moving forward.

Speaker Change #148: and your 24 production guidance is moving to the high end of the range. If that doesn't play out,

Michael Stephen Scialla: I'm just curious what change to your plans you're contemplating, or do you feel like...

Speaker Change #149: with the natural gas liquids revenues that you're really not the company that would need to adjust your plans, be it curtailing production or delaying any more turning lines.

Michael Scialla: Yeah, good morning, Michael. I'll start by, you know, really maybe reiterating a bit of the approach that we communicated for this year's program. And, you know, we're at a very lean, what we would call, you know, base level type, activity level and program for 24, which we think is a kind of a base level way of thinking about the business on the go forward there or what we'll call us somewhat maintenance plus. So the two rigs flat plus the one base frat crew. And so it's generating that, you know, 35 to 30 to 45 million dollars of in-process inventory this year, very similar to last year.

Dennis L. Degner: I'll start by, you know, really maybe reiterating a bit of the approach that we communicated for this year's program. And, you know, we're at a very lean, what we would call, you know, base level type activity level and program for 24, which we think is a kind of base level way of thinking about the business going forward. There, or what we'll call a somewhat maintenance plus, so the two rigs are flat plus the one base frac crew.

Speaker Change #150: Yeah, good morning, Michael. I'll start by, you know, really maybe reiterating a bit of the approach that we communicated for this year's program, and, you know, we're at a very lean, what we would call, you know, base level type activity level and program for 24, which

Speaker Change #150: We think it's a kind of a base level way of thinking about the business on the go forward there, or what we'll call a somewhat maintenance plus. So, it's the two rigs flat plus the one base frack crew, and so it's generating that.

Dennis L. Degner: And so it's generating that, you know, 35 to 30 to 45 million dollars of in-process inventory this year, very similar to last year. And so to answer your question, as we start to think about 2025, you know, we wanted to set ourselves up with flexible flexibility and really good options. And so, by setting it up that way, we have the ability to take some of that inventory and reshape our production profile for 2025.

Speaker Change #150: you know, $30 to $45 million of in-process inventory this year, very similar to last year. And so to answer your question, as we start to think about 2025, you know, we wanted to set ourselves up with flexibility and really good options.

Michael Scialla: And so to answer your question, is we start to think about 2025. You know, we wanted to set ourselves up with flexible flexibility and really good options. And so, by setting it up that way, we have the ability to take some of that inventory and reshape our production profile for 2025. And ultimately, we know that'll have an impact for 26 and the go forward. But if we also see, you know, further delays and energy facilities or anything else that puts commodities at risk, we could, you know, consider how to use that inventory differently. But I think when we, when we look at the capital program for this year, you know, at that 620 to 670 million dollar level.

Dennis L. Degner: And ultimately, we know that'll have an impact on 26 and the go forward. But if we also see, you know, further delays and LNG facilities or anything else that puts commodities at risk, we could consider how to use that inventory differently. But I think when we look at the capital program for this year, you know, at that 620 to 670 million dollars level, I mean, clearly, there are going to be some aspects like the water infrastructure that Mark touched on just a few moments ago that are going to be more 1, not 1 time.

Speaker Change #150: And so, by setting it up that way, we have the ability to take some of that inventory and reshape our production profile for 2025, and ultimately, we know that will have an impact for 2026 and to go forward.

Speaker Change #150: But if we also see, you know, further delays in LNG facilities or anything else that puts commodities at risk,

Speaker Change #151: We could, you know, consider how to use that inventory differently, but I think when we look at the capital program for this year, you know, at that $620 to $670 million level, I mean, clearly, there are going to be some aspects like the water infrastructure that Mark touched on.

Michael Scialla: I mean, clearly there're going to be some aspects like the water infrastructure that March touched on just a few moments ago that are going to be more one-time, one-off, you know, capital investments in nature, you know, once a decade, if you will. But really, that's a decent way of thinking about our program and then the ability to toggle and use that inventory based on what we see from a commodity standpoint. There's a lot of reasons to believe that this is going to look better. I think in 2025, though there's too many demand components that you can point to, and I think, you know, power is clearly one of them.

Michael Stephen Scialla: And even when you just look at the incremental being a half a day on the power burn side, that's played into natural gas's contribution just year to date. And so we think there's a lot of reasons to be excited about 2025. We've got the right inventory setup and program that's lean to allow us to reshape production in 25. Based on what we see from the market. Appreciate that.

Michael Scialla: I just want to get your thoughts on the political front. You know, the federal judge blocking the pause on LNG facilities and spring quarter return the Chevron doctor and that make any more optimistic on the regulatory environment, anything specific you might think to be done within Appalachia that would improve maybe take away capacity or anything along those lines. Well, I think when you look at the demand component, I'll maybe start with the way we ended maybe the prior question. But I think when you look at all of the variables that are playing into the demand conversation on the go forward.

Michael Scialla: You know, we've said in maybe in smaller group meetings, it's hard to see how you, when you think about the political avenue, you almost feel like you get to a same place maybe through a different path with, regardless of what happens with the administration here in the go forward. Meaning you had, if you're going to further bolster the grid, electrify what we do here in the lower 48. If you're talking about data centers and AI, you have to see natural gas playing a more prominent role in that conversation for low-cost, reliable power. and Generation. So when we look at, and that then follows with a real serious conversation about permit reform.

Michael Scialla: So I think it was encouraging to see, just within the last day or two here, the announcement from Senator Manchin and Barroso over some permit reform language that's being moved forward. And we think those are the right signals. And we, we would look at that as there are others clearly both in DC and also on the home front here like companies like Rage that see that. There's a real need for us to play an expanded role when you look at our inventory. We have the ability to do that, especially with our asset, the asset base, having the ability to feed supply gases and the PJM market, which serves around 65 million people.

Michael Scialla: So, we see a lot of positive outlook, but it's going to really need to be supported by some permit reform for sure.

Michael Stephen Scialla: Great. Thanks, Dennis.

Michael Scialla: Thank you, Michael. Thank you.

Doug Leggate: Our next question comes from Doug Leggate of Wolf Research. Hey, good morning, guys. Thanks for having me on. How's everybody doing? Good. Good morning, guys.

Doug Leggate: So I guess I'm mark my first question might be for you. Or whoever wants to take this is relating to take away capacity. Our understanding is that both some of the public and the private are not renewing our term takeaway or fix that takeaway as things kind of roll around for renewal. And I'm wondering how that opportunity sits for a thumbnail yourself giving your inventory depth and why you think that might be the case. And otherwise, why those folks are not taking the takeaway any kind of magnitude you can offer. I'm timing would be really helpful.

Mark Scucchi: And I'm going to follow up with. Yeah, good morning, Doug. That's a good question because the most common understanding, which is accurate, is this in aggregate. The pipelines coming out of Appalachia are largely full. We're focused on what range can access and over time what range can utilize. So today we have a great portfolio, but we think there's a lot of opportunities for range to use. There's even existing in capacity coming out of the basin, even before we think about what eventually will be brown field expansions and eventually even perhaps some new pipelines. But just to start out, you know, there's there's capacity that either underutilized was not signed up for firm transport.

Mark S. Scucchi: So it's just used on short-term nature. There's capacity that some companies did sign up under firm and, through various proceedings, have rejected those contracts or remarketed them and laid it off. So the pipeline exists. So it really comes down to a market share question. And then that leads you down the road of who has the inventory to use it for the next 5, 10, 15 plus years to be able to stand behind it underwrite that capacity and fully use it for an extended term. So that's clearly an opportunity for range at the appropriate time to grow and utilize capacity.

Mark Scucchi: It's not only a question of what capacity range has to take on or chooses to take on itself, but our end customers have their own capacity. So you can sell to and market. Yeah, it's a fair question, and you know, we've shied away from giving a purely formulaic approach to it because commodity prices change, cost of the field may change, demand may change, and that growth is a question, again, when. So, first and foremost, our job is to have safe, efficient operations and provide energy, natural gas, and natural gas liquids to our customers and sell this profitably.

Mark S. Scucchi: So that's the first thing, um, underpinning that, the strong balance sheet, which were there within our target range. So, from here forward, we like the optionality of leaning in one direction or another. So, I'll just leave it as, as the balance sheet is within the target and continues to get stronger, we can kind of turn that reassess that. We can offer down on the returns of capital as we see appropriate to provide the greatest returns, the strongest driver of free cash well and cash flow per share over time. So, I can't, I can't give you a specific number.

Mark S. Scucchi: We prefer the flexibility in executing the programs. But, suffice it to say that our behavior will not be that dissimilar from what you've seen from us over the last few years. One year, we bought back $400 million in shares; commodity prices came in and we became a little bit more conservative. So, we're just responsive to cash flow prices and changes in relative value over it. But, again, I'll just leave it with a punchline of, as we stay within and move further into our target debt range, we've got greater flexibility.

Mark S. Scucchi: Thank you.

Neil Singhvi Mehta: Our next question comes from Neil Mehta of Goldman Sachs. Good morning. Good morning, team. I had a couple questions on, you know, NGL macro, but also your price realization. So, the first question on slide 35, your price calculation, you guys have done a great job realizing above the equivalent month of the barrel. Just be your perspective on, you know, how do you continue to get towards the top end of the 75 cents to buck 50? What are the headwinds, what are the tailwinds, and what are you doing to get the best netback?

Alan Engberg: Good morning, Neil. This is L. M. Anberg. I managed the marketing program. I'm sorry. I'll take a step and answer your question. We, you know, it's not all that magical; a lot of what we do is we've got diversity in the portfolio, and we've managed to set up the portfolio such that we're not overly exposed to my value. In fact, we've waited a lot of it, whether it's ethane, propane, or detain towards international markets, where we saw significant growth. So going forward, I think the macro looks really good still internationally. We've got tremendous growth in ethane demand, particularly out of Asia, but also to Europe.

Alan Engberg: Ethane going into us when scene crackers, most of them are seen that if they're operating using feed others in ethane, they're disadvantaged.