Q3 2025 Range Resources Corp Earnings Call

Statements made during this conference call that are not historical facts are forward looking statements such statements are subject to risks and uncertainties, which could cause actual results to differ materially from those in the forward looking statements. After the Speakers' remarks, there will be a question and answer period at this time I would like to turn the call over to Mr. Laith Sando F V P.

Investor Relations at range resources. Please go ahead Sir.

Thank you operator, good morning, everyone and thank you for joining <unk> third quarter 2025 earnings call.

Laith Sando: Good day. Welcome to the Range Resources third quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. Statements made during this conference call that are not historical facts are forward-looking statements. Such statements are subject to risk and uncertainties, which could cause actual results to differ materially from those in the forward-looking statements. 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, Senior Vice President of Investor Relations at Range Resources. Please go ahead, sir.

Speaker #2: Good day . Welcome to the Range Resources . Third quarter 2021 Earnings Conference Call . All lines have been placed on mute to prevent any background noise .

With me on the call today are Dennis Degner, Chief Executive Officer.

Mark <unk> Chief Financial Officer.

Speaker #2: 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 .

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'll also find our 10-Q on ranges website under the investors tab.

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.

Mark Scucchi: Thank you, Operator. Good morning, everyone, and thank you for joining Range Resources' third quarter 2025 earnings call. With me on the call today 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'll also find our 10-Q on Range Resources' 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. We've also posted supplemental tables on our website that include realized pricing details by product, along with calculations of EBITDA, cash margins, and other non-GAAP measures. With that, I'll turn the call over to Dennis.

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.

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

As we report on the progress made during the third quarter and focus on the execution of the remainder of our 2025 program the.

The results remain consistent with what we've shared in prior cycles.

During the quarter range executed on our plants safely and efficiently delivering consistent well results.

Free cash flow.

Returns to shareholders and steady activity levels that support the growth plans, we've previously communicated.

All in capital came in at $190 million, while generating production of two two bcf equivalent per day for the quarter.

Operator: Thanks, Laith, and thanks to all of you for joining the call today. As we report on the progress made during the third quarter and focus on the execution of the remainder of our 2025 program, the results remain consistent with what we've shared in prior cycles. During the quarter, Range executed on our plans safely and efficiently, delivering consistent well results, free cash flow, returns to shareholders, and steady activity levels that support the growth plans we've previously communicated. All-in capital came in at $190 million, while generating production of 2.2 Bcfe/d for the quarter. Year to date, we've invested $491 million in capital, putting us right on track with the previously improved guidance of $650 to $680 million for the full year.

Year to date, we've invested $491 million in capital, putting us right on track with the previously improved guidance of $650 to $680 million for the full year.

Our year to date operational savings come from several differentiated aspects of our business which include.

Returning to pad sites for incremental development.

Utilization of existing infrastructure.

Extended reach horizontal development and.

And the team's dedication to continued operational improvements.

I'll touch on a few of our operational highlight strengthening this in just a moment.

As we look ahead, our previously announced growth plans, we will begin to gain visibility in Q4.

Strong field level performance is expected to deliver production of approximately two three bcf equivalent per day in the quarter.

Operator: Our year-to-date operational savings come from several differentiated aspects of our business, which include returning to pad sites for incremental development, utilization of existing infrastructure, extended reach horizontal development, and the team's dedication to continued operational improvements. I'll touch on a few of our operational highlights driving this in just a moment. As we look ahead, our previously announced growth plans will begin to gain visibility in Q4, as strong field-level performance is expected to deliver production of approximately 2.3 Bcfe/d in the quarter and growing towards 2.6 Bcfe/d in 2027, an increase of approximately 20% from current levels. Importantly, Range's incremental production will be transported to known end markets, as our depth and quality of inventory allowed Range to secure transportation capacity that was going underutilized by others.

And growing towards two six Bcf equivalent per day in 2027.

An increase of approximately 20% from current levels.

Importantly ranges incremental production will be transported to known in markets.

As our depth and quality of inventory allowed range to secure transportation capacity that was going under utilized by others.

We believe our plans align well with increasing demand in the Midwest Gulf Coast and global LNG markets in the years ahead.

While having the flexibility to meet future in basin demand as well.

And lastly, we will add our planned 400 million cubic feet equivalent per day of growth very efficiently with relatively flat annual capital over the next two years and supported by investments in additional work in progress inventory since late 2023.

This will keep ranges reinvestment rate at the low end of the peer group.

Operator: We believe our plans align well with increasing demand in the Midwest, Gulf Coast, and global LNG markets in the years ahead, while having the flexibility to meet future in-basin demand as well. Lastly, we will add our planned 400 million cubic feet equivalent per day of growth very efficiently, with relatively flat annual capital over the next two years, and supported by investments in additional work in progress inventory since late 2023. This will keep Range's reinvestment rate at the low end of the peer group, allowing significant capital returns to shareholders while growing. Diving into the quarter, consistent with prior quarters, Range operated two horizontal rigs, drilling approximately 262,000 lateral feet across 16 laterals, averaging 16,400 feet per well.

Allowing significant capital returns to shareholders while growing.

Diving into the quarter.

Consistent with prior quarters range operated two horizontal rigs drilling approximately 262000 lateral feet across 16 laterals, averaging 16400 feet per well.

This adds to range as planned drilled uncompleted inventory and places us on track to exit 2025 with more than 400000 lateral feet of growth focused inventory supporting our development plans through 2027.

Four completions the team ended the third quarter, completing just over 1000 frac stages utilizing a combination of our full time electric fracturing fleet and the spot Frac crew for a single pad in northeast PA.

We discussed during our prior call.

Completion efficiencies for the third quarter were at nearly 10 frac stages per day across all operations.

Operator: This adds to Range Resources' planned drilled but uncompleted inventory and places us on track to exit 2025 with more than 400,000 lateral feet of growth-focused inventory, supporting our development plans through 2027. For completions, the team ended the third quarter completing just over 1,000 frac stages, utilizing a combination of our full-time electric fracturing fleet and a spot frac crew for a single pad in Northeast Pennsylvania that we discussed during the prior call. Completion efficiencies for the third quarter were at nearly 10 frac stages per day across all operations. Supported by a strong KPI-driven focus, efficient logistics, and a look back from prior pad executions, our Northeast Pennsylvania operations continue to deliver incredibly efficient results and strong returns utilizing existing infrastructure on our occasional return trips to the area.

Supported by a strong API driven focus.

Efficient logistics and look back from prior pad executions, our northeast operations continue to deliver incredibly efficient results and strong returns utilizing existing infrastructure on our occasional return trips to the area.

Cash operating expenses for the third quarter finished at 11 per Mcf.

Firmly within our previously improved guidance for the year.

The team continues to see efficiencies within the field, especially when focusing on multi operational project scheduling to improve production downtime.

Reduced spending.

And maximizing field run time from the wellhead to burner tip.

Shifting over to marketing.

The third quarter of 2025 was an exciting time for U S energy marketing as we saw the commissioning of new NGL export capacity.

Operator: Cash operating expenses for the third quarter finished at $0.11 per Mcfe, firmly within our previously improved guidance for the year. The team continues to see efficiencies within the field, especially when focusing on multi-operational project scheduling to improve production downtime, reduce spending, and maximizing field runtime from the wellhead to the burner tip. Shifting over to marketing, the third quarter of 2025 was an exciting time for U.S. energy marketing, as we saw the commissioning of new NGL export capacity, the ramp-up of recently commissioned LNG export capacity, and strong interest in new natural gas supply for power generation within the Appalachian Basin. Highlighting some specifics, starting with natural gas, the U.S. exported record volumes of LNG in the third quarter, as new capacity continued to be commercialized and international demand for clean, reliable American energy remains strong.

The ramp up of recently commissioned LNG export capacity.

And strong interest in new natural gas supply for power generation within the Appalachian Basin.

Highlighting some specifics starting with natural gas.

The U S exported record volumes of LNG in the third quarter as new capacity continue to be commercialized and international demand for clean reliable American energy remains strong.

Three additional LNG projects reached in the third quarter with additional projects recently sanctioned bringing the year to date total to approximately nine Bcf per day of incremental feed gas demand, making this a record breaking year for <unk> in the U S.

Based on projects under construction.

LNG feed gas demand is expected to exceed 30 Bcf per day by 2031.

More than doubling the export capacity versus current levels.

We are confident of the world strong appetite for U S natural gas as long term global gas demand is underpinned by rising incomes and population growth.

Operator: Three additional LNG projects reached FID in the third quarter, with additional projects recently sanctioned bringing the year-to-date total to approximately 9 Bcf per day of incremental feed gas demand, making this a record-breaking year for FIDs in the U.S. Based on projects under construction, LNG feed gas demand is expected to exceed 30 Bcf per day by 2031, more than doubling the export capacity versus current levels. We are confident of the world's strong appetite for U.S. natural gas, as long-term global gas demand is underpinned by rising incomes and population growth. Looking at in-base opportunities, we continue to be encouraged by early-phase activity in Pennsylvania toward gas-fired power generation data center projects.

Looking at in basin opportunities, we continue to be encouraged by early phase activity in Pennsylvania toward gas fired power generation datacenter projects.

Numerous projects are progressing and the past few months have provided us with even more conviction that consensus estimates for approximately two five bcf per day of north eastern demand potential from data centers by the end of the decade is becoming more real.

We are continuing to make progress on the <unk> Cherry joint venture project with Liberty and Imperial announced earlier this year.

In addition ranges in conversations with multiple other potential projects that could benefit from rages asset location in southwest PA.

Our pipe access across the U S.

Operator: Numerous projects are progressing, and the past few months have provided us with even more conviction that consensus estimates for approximately 2.5 Bcf per day of northeastern demand potential from data centers by the end of the decade are becoming more real. We are continuing to make progress on the Fort Cherry joint venture project with Liberty and Imperial announced earlier this year. In addition, Range Resources is in conversations with multiple other potential projects that could benefit from Range Resources' asset location in Southwest Pennsylvania, our pipe access across the U.S., our marketing acumen, and, importantly, our depth of high-quality inventory and financial strength that can support long-term supply agreements that end users are looking for. As we look forward, we believe there will be a clear call for Appalachia to play a key role in supplying U.S. markets with affordable, reliable natural gas supply.

Our marketing acumen and.

And importantly, our depth of high quality inventory and financial strength that can support long term supply agreements that end users are looking for.

As we look forward, we believe there will be a clear call for Appalachia to play a key role in supplying us markets with affordable reliable natural gas supply.

And we believe that expanding infrastructure from Appalachia and sourcing more power demand within Appalachia is the most effective way for America to fuel its long term energy needs.

We remain very constructive on the set up for natural gas <unk>.

Storage levels at or below average and last year in terms of days of supply.

And as we move into 2026, a further four bcf per day of LNG export capacity is expected to come online.

Leading to tightening gas marketing fundamentals.

Turning to Ngls.

Operator: We believe that expanding infrastructure from Appalachia and sourcing more power demand within Appalachia is the most effective way for America to fuel its long-term energy needs. We remain very constructive on the setup for natural gas, with storage levels at or below average last year in terms of days of supply. As we move into 2026, a further 4 Bcf per day of LNG export capacity is expected to come online, leading to tightening gas marketing fundamentals. Turning to NGLs, similar to our outlook for natural gas, we're encouraged by the fundamental setup for ethane and LPG. Ethane and propane are both expected to see substantial increases in export capacity out of the Gulf Coast into continuing strong international demand. We expect this to improve NGL pricing relative to WATI in the coming quarters.

Similar to our outlook for natural gas, we are encouraged by the fundamental setup for ethane and LPG.

Ethane and propane are both expected to see substantial increases in export capacity out of the Gulf coast into continuing strong international demand.

And we expect this to improve NGL pricing relative to <unk> in the coming quarters.

Specific to range are geographically advantage access via exports to the European market continues to support a premium versus the Mont Belvieu index.

We see continued strong demand for northeastern U S. LPG as Europe continues to secure long term supply from reliable producers.

During the quarter range once again leveraged its flexible transportation and marketing portfolio to respond to market dynamics and enhanced margins.

These optimization efforts for range led to a strong seasonal natural gas price differential of minus <unk> 49 per Mcf versus the Nymex index, coupled with a continued premium on our Ngls.

Operator: Specific to Range Resources, our geographically advantaged access via exports to the European market continues to support a premium versus the Mont Belvieu index. We see continued strong demand for northeastern U.S. LPG as Europe continues to secure long-term supply from reliable producers. During the quarter, Range Resources once again leveraged its flexible transportation and marketing portfolio to respond to market dynamics and enhance margins. These optimization efforts for Range led to a strong seasonal natural gas price differential of minus $0.49 per MCF versus the NYMEX index, coupled with a continued premium on our NGLs. We've improved our full-year guidance accordingly. The future of natural gas and NGLs is strong, with significant demand continuing to materialize in the near and medium term, both globally and within Appalachia.

And we have improved our full year guidance accordingly.

The future of natural gas and Ngls is strong with.

With significant demand continuing to materialize in the near and medium term both globally and within Appalachia.

Range is poised to help meet this future demand, while creating outsized value for shareholders with the strongest financial position in company history.

A large contiguous inventory measured in decades.

And a proven track record of delivering through cycle returns of capital or investing in the long term success and the optionality of the business.

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

Thanks Dennis.

The first nine months of 2025, underscored the stability and profitability of ranges business.

During this period Nymex natural gas prices averaged $3 39.

Operator: Range is poised to help meet this future demand while creating outsized value for shareholders with the strongest financial position in company history, a large contiguous inventory measured in decades, and a proven track record of delivering through cycle returns of capital, all investing in the long-term success and the optionality of the business. I'll now turn it over to Mark to discuss the financials.

While range achieved an average realized price of $3 59 per unit of production.

<unk> premium created by our diversified commodity mix and sales strategy.

Strong pricing realizations combined with low full cycle costs that provided range the ability to continue progress along our three year growth plan, while returning capital to shareholders.

Dennis Degner: Thanks, Dennis. The first nine months of 2025 have underscored the stability and profitability of Range's business. During this period, NYMEX natural gas prices averaged $3.39, while Range achieved an average realized price of $3.59 per unit of production, a $0.20 premium created by our diversified commodity mix and sales strategy. Strong pricing realizations, combined with low full cycle costs, have provided Range the ability to continue progress along our three-year growth plan while returning capital to shareholders. Year to date, we have repurchased $177 million in shares, paid dividends of nearly $65 million, while reducing net debt $175 million since year-end. Each of these actions reinforces our commitment to delivering on our stated capital allocation priorities.

Year to date, we have repurchased $177 million in shares paid.

Pay dividends of nearly $65 million.

While reducing net debt $175 million since year end.

Each of these actions reinforcing our commitment to delivering on our stated capital allocation priorities.

While front month gas prices fluctuate or.

Our business model sitting atop a high quality resource base has consistently generated free cash flow, enabling capital allocation options of executing a market driven growth oriented operational plan alongside current capital returns to investors.

Range is proving the free cash flow resilience of its business and enhancing that resilience through targeted capital investment.

The specific attributes of ranges business that provide a stable base and enabled through cycle investments and returns include a high quality long duration inventory that enables a low reinvestment rate.

Dennis Degner: While front-month gas prices fluctuate, our business model, sitting atop a high-quality resource base, has consistently generated free cash flow, enabling capital allocation options of executing a market-driven, growth-oriented operational plan alongside current capital returns to investors. Range is proving the free cash flow resilience of its business and enhancing that resilience through targeted capital investments. The specific attributes of Range's business that provide a stable base and enable through cycle investments and returns include a high-quality, long-duration inventory that enables a low reinvestment rate, a strong balance sheet to allow value-capturing opportunistic investments, a diverse portfolio of natural gas and NGLs transportation that links Range to customers in key U.S. and global markets, delivering roughly 90% of revenue from outside Appalachia.

Our strong balance sheet to allow value capturing opportunistic investments.

A diverse portfolio of natural gas and natural gas liquids transportation that links range to customers in key U S and global markets delivering roughly 90% of revenue from outside Appalachia.

While building cost effective DUC inventory to meet future demand, our opportunistic investments and returns in 2025 have grown from prior years in the form of share buybacks and dividends given the strength of ranges balance sheet.

In other words, while investing at a maintenance plus level, we are generating healthy free cash flow and diligently redeploying that capital to harvest value from our ranges resource base.

As the U S and global natural gas markets continue to integrate with commissioning of new LNG facilities alongside substantial domestic demand growth primarily from electricity.

Dennis Degner: While building cost-effective dock inventory to meet future demand, our opportunistic investments and returns in 2025 have grown from prior years in the form of share buybacks and dividends, given the strength of Range's balance sheet. In other words, while investing at a maintenance plus level, we are generating healthy free cash flow and diligently redeploying that capital to harvest value from Range's resource base. As the U.S. and global natural gas markets continue to integrate with commissioning of new LNG facilities alongside substantial domestic demand growth, primarily from electricity, we believe Range's long-life, low-cost inventory creates enormous option value to play an integral role as a key supplier. Our durable free cash flow, evidenced through cycles in recent years, positions Range to consistently deliver value to its shareholders. Dennis, back to you.

We believe our ranges long life low cost inventory creates enormous option value to play an integral role as a key supplier.

Our durable free cash flow evidenced through cycles in recent years.

<unk> range to consistently deliver value to its shareholders.

Dennis back to you.

Thanks Mark.

Revenues year to date results reflect a consistent theme.

Strong operational performance against our stated multiyear plan.

Consistent free cash flow generation.

And prudent allocation of that cash flow balancing returns of capital.

Alex sheet strength.

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 it ranges business is in the best place in company history.

Having derisked, our high quality inventory measured in decades, and translated that into a business capable of generating significant free cash flow through cycles.

Operator: Thanks, Mark. Range's year-to-date results reflect a consistent theme: strong operational performance against our stated multi-year plan, consistent free cash flow generation, and prudent allocation of that cash flow, balancing returns of capital, balance sheet strength, 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 significant free cash flow through cycles. With that, let's open the line for questions.

With that let's open the line for questions.

Okay.

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 one one if you're 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 one again.

And our first question.

We will be coming from Jake Roberts at Tpa <unk> Company. Your line is open.

Good morning.

Good morning Jake.

I wanted to spend some time on the work in progress inventory. So can you speak to what you think that 400000 foot number it looks like at the end of 2026, and if you could I know it's early for 2026 discussions but is there any consideration on timing of that drawdown, we should be thinking about.

[Operator]: 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 11. 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. Our first question will be coming from Jacob Phillip Roberts at Pickering Energy Partners. Your line is open.

Yes, good morning, I'll try and help provide some color on what 26 looks like.

As you start to kind of think about from a capital I'll start there at a high level of capital is going to look really similar in 2026 to what you've seen us executing here in the program year for 2025 the differences between the two years is a allocation of the capital that will then start to lean more heavily on the completion of the.

Alan Engberg: Good morning.

Dennis Degner: Morning, Jake.

Alan Engberg: I wanted to spend some time on the work in progress inventory. Can you speak to what you think that 400,000-foot number looks like at the end of 2026? If you could, I know it's early for 2026 discussions, but is there any consideration on timing of that drawdown we should be thinking about?

Duck inventory that's been building over the last couple of years and through 2025, and our ability to start to work through that.

Coupled with some timing of some infrastructure that will come online that I'll touch on here and may be just a moment. So maybe more simply put where you've seen us have to drilling rigs over the last couple of years, we've talked about that as being kind of a maintenance plus kind of a program. So over three years, we will have added 400000 lateral feet.

Dennis Degner: Good morning. I'll try and help provide some color on what 2026 looks like. As you start to kind of think about from a capital, I'll start there at a high level. Capital is going to look really similar in 2026 to what you've seen us executing here in the program year for 2025. The difference between the two years is the allocation of the capital that will then start to lean more heavily on the completion of the drilled but uncompleted inventory that's been building over the last couple of years and through 2025 and our ability to start to work through that, coupled with some timing of some infrastructure that'll come online that I'll touch on here in maybe just a moment.

And roughly that translates into around 30 wells. So I'll put some context around the last three years.

Between 'twenty three 'twenty four 'twenty five from that perspective, then we can start to shift into 2026, and that's also with one completion crew so that maintenance plus inventory that gets built is clearly more than one frac crew can consume for.

26, we'll take that drilling activity down throughout the balance of the year, we will still maintain at least one rig for the for the balance of the year there will be portions of the year, where there may be a little bit more activity, but the completions activity will go on an uptick so youll see a single Frac crew for portions of the year and then instead of like what.

Dennis Degner: More simply put, where you've seen us have two drilling rigs over the last couple of years, we've talked about that as being kind of a maintenance plus kind of a program. Over three years, we will have added 400,000 lateral feet, and roughly that translates into around 30 wells. I'll put some context around the last three years, between 2023, 2024, and 2025 from that perspective. When you start to shift into 2026, and that's also with one completion crew. That maintenance plus inventory that gets built is clearly more than one frac crew can consume. For 2026, we'll take that drilling activity down throughout the balance of the year. We'll still maintain at least one rig for the balance of the year, and there will be portions of the year where there may be a little bit more activity, but the completions activity will go on an uptick.

<unk> seen in 'twenty, four and 'twenty, five where theres been a spot crew to come.

Complete maybe one or two pad sites youll see some continuous activity with a second crew that then starts to work through that inventory. So what does it look like at the end of 2026, we're still kind of working through the refinement of those numbers and we'll have some better guidance for you on what that lateral inventory looks likely expect it to be a very linear utilization.

Trend over the balance of 26% 27 that also translates into the production that we've talked about where we're roughly will be at two four Bcf a day and going to 262 points by 2027, so it'll be a fairly ratable increase over the balance of that time there'll be a portion of 2006, where youll see.

Dennis Degner: You'll see a single frac crew for portions of the year. Instead of what you've seen in 2024 and 2025, where there's been a spot crew to complete maybe one or two pad sites, you'll see some continuous activity with a second crew that then starts to work through that inventory. What does it look like at the end of 2026? We're still kind of working through the refinement of those numbers, and we'll have some better guidance for you on what that lateral inventory looks like. They expect it to be a fairly linear utilization trend over the balance of 2026 and 2027. That also translates into the production that we've talked about, where roughly we'll be at 2.4 Bcfe/d, then going to 2.6 and 2.0 by 2027. It'll be a fairly ratable increase over the balance of that time.

<unk> production at a high level of utilization into the existing infrastructure before we get to the meat. Your point and then you see another increase with Harmon Creek III processing and some also gathering support there so.

Lots to unpack with what I've shared with.

Shared with you this morning, but ultimately the 2026 program is going to have a fairly linear trend of that utilization of inventory over 2026 and into 2027.

Okay great.

Really helpful and staying on the same topic as we think about that shift or the balanced perhaps of.

Dennis Degner: There'll be a portion of 2026 where you'll see production at a high level of utilization into the existing infrastructure before we get to the mid-year point, and then you see another increase with the Harmon Creek III processing and some also gathering support there. There is a lot to unpack with what I've shared with you this morning. Ultimately, the 2026 program is going to have a fairly linear trend of that utilization of inventory over 2026 and into 2027.

D versus C capital here in 2026, you guys have spoken a lot about returning to pad sites and things like that as drivers of efficiencies over the past quarters and years I'm wondering if you.

You've already spoken to it you see capital with similar but I'm wondering if there's anything we should be thinking about maybe on the opex side of things that as we progress through the drawdown of inventory that they might move the needle in either direction on some of those line items.

When I think about the breakout of let's just say capital and operating expenses.

Alan Engberg: Great. That's really helpful. Staying on the same topic, as we think about that shift or the balance perhaps of D versus C capital here in 2026, you guys have spoken a lot about returning to pad sites and things like that as drivers of efficiencies over the past quarters and years. I'm wondering if you've already spoken that you see capital is similar, but I'm wondering if there's anything we could be thinking about maybe on the OpEx side of things that as we progress through the drawdown of this inventory that might move the needle in either direction on some of those line items.

I'll just say you have come to see us really remain at a very low level from a cash operating expense basis. So.

From an LOE perspective, we typically run somewhere between 10 to 12 cents, depending upon seasonality and winter in fluids I wouldn't expect that to move a whole lot because we're already starting from a really really low base, there's always an opportunity for a little more improvement there and then as you point to returning to pad sites with existing infrastructure.

<unk>.

That is something that we factor in year end and year out from a perspective of a represents of roughly about half of our activity on a year and a year out basis, you can expect to see that fluctuate a little bit but it is but again I would say all in all what youre seeing in our historical efficiency gains on completion of the drilling side drew.

Dennis Degner: When I think about the breakout of, let's just say, capital and operating expenses, we're, from a, I'll just say, you've come to see us really remain at a very low level from a cash operating expense basis. From an LOE perspective, we've typically run somewhere between $0.10 to $0.12, depending upon seasonality and winter influence. I wouldn't expect that to move a whole lot because we're already starting from a really, really low base. There's always an opportunity for a little more improvement there. As you point to returning to pad sites with existing infrastructure, that is something that we factor in year in and year out from a perspective of it represents roughly about half of our activity on a year in and year out basis. You can expect to see that fluctuate a little bit.

<unk> as you've heard us say, our fastest and longest laterals, all while staying within greater than 90% within a tight target window, we would expect that momentum to continue into 'twenty six 'twenty seven so we're refining those goals right now as we speak on what that could look like for for 26. So we will have more to share at the February call, but I would expect us.

<unk> to be on that leading edge of what cost per foot looks like with our ability to move back to these pads.

Sites drill really long laterals that continue to be very efficient with our operating capital.

Dennis Degner: All in all, what you're seeing in our historical efficiency gains on completion and the drilling side, drilling, as you've heard us say, our fastest and longest laterals, all while staying within greater than 90% within a tight target window, we would expect that momentum to continue into 2026 and 2027. We're refining those goals right now as we speak on what that could look like for 2026. We'll have more to share at the February call, but I would expect us to continue to be on that leading edge of what cost per foot looks like with our ability to move back to these pad sites, drill really long laterals, and continue to be very efficient with our operating capital.

Thank you appreciate the time.

Thanks Jake.

And our next question will be coming from <unk> Akamine of Bank of America. Your line is open.

Hey, good morning, guys and Dennis Mark.

I wanted to follow up on 2026 as well so this year, you're pretty much on track with plans and that's great. Because it's effectively you are one of three as you think about that ramp through 2027, but as you continue here given your strong execution. This year, where do you see upside to your plan is there opportunity to outperform on the capital or volume side in the next couple of years.

Hi.

Yes, good question and thanks for joining us.

Alan Engberg: Thank you. Appreciate the time.

When I think about 26, and 27 were but I really think we have I'll just say opportunities to performance, it's really what you've seen us talk about in many many cycles and that is the efficiencies from an operations perspective in the field and what we've seen in the ability to drill long laterals.

Dennis Degner: Thanks, Jake.

[Operator]: Our next question will be coming from Kalle Akamine of Bank of America. Your line is open.

[Analyst]: Good morning, guys. Dennis, Mark, I wanted to follow up on 2026 as well. This year, you're pretty much on track with your plans, and that's great because it's effectively year one of three as you think about that ramp through 2027. As you continue here, given your strong execution this year, where do you see upside to your plan? Is there opportunity to outperform on the capital or volume side in the next couple of years?

Say, we drill to give some of our fastest fastest wells and get staying in a tight target. Our completion efficiencies continue to show improvement. There. So I think that's a way that you could see some potential upside in the numbers and then I think the other part when I think about 26% 27 is as infrastructure utilization that comes online with.

Dennis Degner: Yeah, good question. Thanks for joining us, Kalle. When I think about 2026 and 2027, where I really think we have, I'll just say, opportunities to perform, it's really what you've seen us talk about in many, many cycles, and that is the efficiencies from an operations perspective in the field. What we've seen in the ability to drill long laterals, I'll just say we drilled against some of our fastest wells, again, staying in a tight target. Our completion efficiencies continue to show improvement there. I think that's a way that you could see some potential upside in the numbers. I think the other part when I think about 2026 and 2027 is infrastructure utilization that comes online with our midstream partners like MPLX.

Our midstream partners like MPLX, they've really done a good job working closely with us and they've demonstrated the ability to remain on schedule and also move pretty quickly to commissioning of that infrastructure. So I would say field run time performance, especially as it pertains to new infrastructure and then our ongoing operational efficiencies.

Thanks for that Dennis for my second question I wanted to I wanted to see if you guys could opine on the NGL macro you had a couple of interesting slides in your deck last night, so when maybe some green shoots in both the propane on the ethane side. So maybe I can simply cede the floor and maybe you can tell us what youre seeing in that market for 2026.

Yes, I'll start here, if we need to take a deeper dive than others may jump in but ultimately when we start to take a look at the macro for Ngls.

Dennis Degner: They've really done a good job working closely with us, and they've demonstrated the ability to remain on schedule and also move pretty quickly to commissioning of that infrastructure. I would say field runtime performance, especially as it pertains to new infrastructure and then our ongoing operational efficiencies.

We're as optimistic on that front as we are really from a net gas perspective, and I know you've heard us.

Really dive into the net gas side, a number of times and really it starts with the really two components. One the demand growth side. There continues to be increasing run rates on previously commissioned infrastructure that of course on the LPG side, you've got another 700000 barrels per day of demand growth by year end.

[Analyst]: Thanks for that, Dennis. For my second question, I want to see if you guys could opine on the NGL macro. You had a couple of interesting slides in your deck last night showing maybe some green shoots on both the propane and the ethane side. I can simply cede the floor and you can tell us what you're seeing in that market for 2026.

2026, so the demand side, we feel like there's still continuing to show really good strength in by the end of the decade. It looks like at least from what we can see and <unk>. It's a total of $1 4 million barrels per day of incremental demand that really in our mind points to a strong coal on LPG demand growth it really a supply.

Dennis Degner: I'll start here. If we need to take a deeper dive, others may jump in. Ultimately, when we start to take a look at the macro for NGLs, we're as optimistic on that front as we are really from a net gas perspective. I know you've heard us really dive into the net gas side a number of times. It starts with two components. One, the demand growth side. There continues to be increasing run rates on previously commissioned infrastructure. On the LPG side, you've got another 700,000 barrels per day of demand growth by year-end 2026. The demand side, we feel like, is still continuing to show really good strength. By the end of the decade, it looks like, at least from what we can see in Tally, it's a total of 1.4 million barrels per day of incremental demand.

Paul that is going to be important out of the U S. So how do you get there well there has been a lot of export capacity expansions that have been in progress of either being constructed in process of being commissioned and will also see an increase in their run rate over the balance of the next months ahead. So we're excited about the ability to see I'll just say.

The lower 48 move the barrels the demand growth side, continuing to materialize and we really think for range as an example.

Our ability to have access to.

Dennis Degner: That, in our mind, points to a strong call on LPG demand growth and a supply pull that's going to be important out of the U.S. How do you get it there? There have been a lot of export capacity expansions that have been in progress of either being constructed, in process of being commissioned, and we'll also see an increase in their run rate over the balance of the next months ahead. We're excited about the ability to see the lower 48 move the barrels, the demand growth side continuing to materialize. We really think for Range, as an example, our ability to have access to East Coast export capacity continues to be a differentiator for us. That will be not only in the next 12 to 24 months, but really as we're thinking about that 1.4 million in growth demand by the end of the decade as well.

East Coast export capacity continues to be a differentiator for us and so that will be not only in the next as we think about the next 12 months to 24 months, but really as we're thinking about that $1 4 million and growth demand by the end of the decade.

Well ethane a little bit different story, but it's very similar more export capacity growth and also more demand growth as you're starting to and a lot of way see in the next year.

Year end 2026, there's roughly another.

400000 barrels of growth there and by the end of the decade increments $2 60 on top of that so again continuing to show good positive signs for demand growth and also the ability to export those barrels and some of the counterparties that are actually representing that demand growth for counterparties that we currently do business with today. So we know that there are good calls coming in for <unk>.

We could potentially participate in that growth in the future if needed and warranted and we think thats exciting for range.

Dennis Degner: Ethane, a little bit different story, but it's very similar. More export capacity growth and also more demand growth as you're starting to, in a lot of ways, see in the next, by the end of year-end 2026, there's roughly another 400,000 barrels of growth there. By the end of the decade, an increment of 260,000 on top of that. Again, continuing to show good positive signs for demand growth and also the ability to export those barrels. Some of the counterparties that are actually representing that demand growth are counterparties that we currently do business with today. We know that there are good calls coming in for how we could potentially participate in that growth in the future if needed and warranted. We think that's exciting for Range.

On the demand side do you see that demand on the export side pulling volumes out of the Rockies and driving.

Cathay into natural gas parity in 2026.

I don't think I guess at a high level I don't know that I see that that is there is a need for that I'll, let alan kind of jump in.

That runs our marketing effort.

Yes, I would say, we see going forward, but that demand is it youre going to be pulling recovering as much ethane as you can out of the Permian mid continent, and it's going to be pulling out of evolution as well. So we see the ethane spreads in natural gas actually improving.

Fact month of September was interesting we set an all time record in terms of exports is over 600000 barrels per day of ethane exports supported by some of that new infrastructure that Dennis was talking about and with that we saw the spread between ethane and natural gas improved.

[Analyst]: On the demand side, do you see that demand on the export side pulling volumes out of the Rockies and driving ethane to natural gas parity in 2026?

Dennis Degner: I don't think, at a high level, I don't know that I see that there's a need for that. I'll let Alan jump in from that runs our marketing effort.

As a result of that demand pool, so with the ethane exports.

Alan Engberg: Yeah, I'd say what we see going forward with that demand is that you're going to be pulling, recovering as much ethane as you can out of the Permian, the Mid-Continent. It's going to be pulling out of Appalachia as well. We see the ethane spread to natural gas actually improving. In fact, the month of September was interesting. We set an all-time record in terms of exports. It was over 600,000 barrels per day of ethane exports, supported by some of that new infrastructure that Dennis was talking about. With that, we saw the spread between ethane and natural gas improve as a result of that demand pull. With the ethane exports pretty much doubling by the end of next year, the capacity of export, and that's, you know, you've got new crackers that are starting up in Europe, as well as in Asia, as well as in China.

Pretty much doubling by the end of next year the capacity to export.

<unk> got new crackers that are starting up in Europe, as well as in Asia as well as in China, and then you've actually got roughly 130000 barrels per day of new demand domestically that'll be starting up late 'twenty six early 2027 all of that combined.

Leads us to believe that ethane fundamentals are going to get stronger inventories are going to come down do supply going to come down.

The price will improve relative to natural gas.

Very helpful guys. Thank you.

Please go ahead.

Yes.

Our next question will be coming from Mike Lasalle Stephens. Your line is open Michael.

Hi, Good morning, I wanted to get an update on your conversations you've been having a core supply agreements.

Alan Engberg: You've actually got roughly 130,000 barrels per day of new demand domestically that'll be starting up late 2026, early 2027. All that combined leads us to believe that ethane fundamentals are going to get stronger, inventories are going to come down, day supply is going to come down, and the price will improve relative to natural gas.

Sure.

Are those limited to Pennsylvania or discussing anything outside the state.

Any of those with end users or more like the <unk>.

Imperial type of conversations that you've been having so far.

Yes, good morning, Michael I'll jump in here.

I think in <unk>.

[Analyst]: Very helpful, guys. Thank you.

Lot of ways, our update is going to feel similar to what we shared at the July call and it's still a very dynamic space. So I'll kind of start there where Alan and the team have seen a number of inbound phone calls and engagements with household names I think that a lot of us on the call would would know as end users.

Alan Engberg: Thanks, Kalle.

[Operator]: Our next question will be coming from Michael Seale of Stephens. Your line is open, Michael.

Mark Scucchi: Good morning. I want to see if I can get an update on your conversations you've been having for supply agreements. Are those limited to Pennsylvania, or are you discussing anything outside the state, and any of those with end users, or more like the Imperial type of conversations that you've been having so far?

For potential facility I think right now it's that it's that phase of trying to look at site selection.

Is the the best location to put one of these facilities to have I'll, just say access to long term supply and so thats part of the reason why we think we've been on the front.

Dennis Degner: Good morning, Michael. I'll jump in here. In a lot of ways, our update is going to feel similar to what we shared at the July call. It's still a very dynamic space. I'll start there, where Alan and the team have seen a number of inbound phone calls and engagements with household names that a lot of us on the call would know as end users for a potential facility. Right now it's that phase of trying to look at site selection—where is the best location to put one of these facilities to have access to long-term supply? That's part of the reason why we think we've been on the front end of many of these conversations.

Front end of many of these conversations again inventory is playing a huge role in this conversation and also the diversification of gathering and regional transport that will allow our ability to to help supply one of these facilities again with long term reliable supply.

It's still narrowing down on like in Liberty and Imperial as an example, we're seeing a lot of positive movement there in narrowing down to a final couple of potential.

In users so it's hard to see at this point in time, what that announcement timeframe could look like but know that thats being actively worked really hard I think once you see at that pointed in user truly get defined then we'll be able to move forward with more hardie conversations around what would a pricing structure could look like both from a term Ann.

Dennis Degner: Inventory is playing a huge role in this conversation, and also the diversification of gathering and regional transport that would allow our ability to help supply one of these facilities with long-term reliable supply. It's still narrowing down on, like in Liberty and Imperial as an example, we're seeing a lot of positive movement there in narrowing down to a final couple of potential end users. It's hard to see at this point in time what that announcement timeframe could look like, but know that that's being actively worked really hard.

And framework standpoint of Av.

Whether it's tied to something Thats, a normal index or is it something thats got a floor and ceiling type structure that allows us to have some long term support and then also provide some upside protection for those other end users striking that right balance so more to come on this we look forward to sharing more details as we get closer to announcement.

Timeframes, but know that it is a very diverse dynamic and busy space and Alan and the team at <unk> has been very active in a lot of that space.

Dennis Degner: Once you see at that point an end user truly get defined, then we'll be able to move forward with more hearty conversations around what a pricing structure could look like, both from a term and framework standpoint of whether it's tied to something that's a normal index, or is it something that's got a floor and ceiling type structure that allows us to have some long-term support and also provide some upside protection for those other end users, striking that right balance. More to come on this. We look forward to sharing more details as we get closer to announcement type timeframes, but know that it is a very dynamic and busy space. Alan and the team at Range have been very active in a lot of that space.

It does all of those are better than pretty much inside the Pennsylvania. At this point are you looking outside of Pennsylvania, though.

Yes, I would say the focus has been primarily within our producing region directly.

But we also have seen as you would imagine with many of these potential.

Potential offtake users the willingness to talk about expansions expansions could both be there in in the existing footprint that they would be planning on and it could be outside the area. So again, given the transport that we have in the areas of the U S that it gets too and reaches we've got some durability. There once we start to put a framework in place that.

Mark Scucchi: Dennis, all those are pretty much inside of Pennsylvania at this point, or are you looking outside of Pennsylvania at all?

<unk> supports against that again that five nines of reliability strong labor pool, all of the things that make the Pennsylvania region. Our Pittsburgh region are really advantaged area, we could see this.

Dennis Degner: I would say the focus has been primarily within our producing region directly. We also have seen, as you would imagine, with many of these potential offtake users, the willingness to talk about expansions. Expansions could both be there in the existing footprint that they would be planning on, and it could be outside the area. Given the transport that we have and the areas of the U.S. that it gets to and reaches, we've got some durability there once we start to put a framework in place that supports, I guess, that five nines of reliability, strong labor pool, all of the things that make the Pennsylvania region or Pittsburgh region a really advantaged area. We could see this starting to shift into other areas and regions of their business, given our transport diversification.

Starting to shift it to other areas of their in regions of their business again, given our transport diversification.

Wanted to on my second one to ask about.

Capacity out of the basin you mentioned you picked up some FTE that became available with that three year plan does that require you to take on any additional takeaway or you sit there and you.

You mentioned, the MPLX keeping up with your any other infrastructure that needs to be put in place for you to execute on that three year plan.

So as it stands today I'll start with the MPLX question, the infrastructure that we've disclosed and that capacity those capacity additions that we've disclosed over the balance of the last year that is what is needed to deliver on our on our three year plan. So we're I'll use your word we're set.

Mark Scucchi: Gotcha. I want to dive my second one to ask about capacity out of the basin. You mentioned you picked up some FT that became available. With that three-year plan, does that require you to take on any additional takeaway, or are you set there? You mentioned MPLX keeping up with you. Any other infrastructure that needs to be put in place for you to execute on that three-year plan?

Now, it's just moving forward with construction and also commissioning of that infrastructure. So we're feeling really good about the timelines we've communicated the production profile and again <unk>.

History have demonstrated they can execute and Rick these facilities. The transport is also.

Dennis Degner: As it stands today, I'll start with the MPLX question. The infrastructure that we've disclosed and that capacity, those capacity additions that we've disclosed over the balance of the last year, that is what is needed to deliver on our three-year plan. We're, I'll use your word, we're set. Now it's just moving forward with construction and also commissioning of that infrastructure. We're feeling really good about the timelines that we've communicated, the production profile, and again, MPLX's history of demonstrating they could execute and erect these facilities. The transport is also complementary to our growth profile. Nothing else is needed at this point to deliver on that.

Complementary to our growth profile and nothing else is needed at this point to deliver on that and as you've heard us say a number of times, Michael we can really be patient. Once we start to look beyond 2027 at either look to supply create more growth that's thoughtful to address demand thats in basin work.

There is other.

Transport that becomes available because it's underutilized we can be thoughtful about do we take on more transport or not so we love the optionality and the patience factor that we can execute because of the inventory that we have.

I appreciate the detail.

Thanks, Michael.

Sure.

And our next question will be coming from Arun Jairam of J P. Morgan Securities LLC. Your line is open.

Dennis Degner: As you've heard us say a number of times, Michael, we can really be patient once we start to look beyond 2027 and either look to supply, create more growth that's thoughtful to address demand that's in basin, or if there's other transport that becomes available because it's underutilized, we can be thoughtful about do we take on more transport or not. We love the optionality and the patience factor that we can execute because of the inventory that we have.

Good morning, gentlemen.

Dennis I was wondering if you could provide maybe a little bit more details on what's going on with Liberty in the Imperial land kind of project in Washington County.

You bet good morning, Arun Thanks for joining us.

Tried to touch on this a little bit here, just a few minutes ago, but I think at the end of the day, we're seeing that the conversations are very fruitful.

Mark Scucchi: Appreciate the detail, Dennis.

Dennis Degner: Thanks, Michael.

We're seeing that the counterparties are getting down to our partners. In this JV are getting down to what I would say is a a lightning bonus round of the the final few in users that could utilize the <unk>.

[Operator]: Thank you. Our next question will be coming from Arun Jayaram of JP Morgan Securities LLC. Your line is open.

Alan Engberg: Good morning, gentlemen. Dennis, I was wondering if you could provide maybe a little bit more details on what's going on with Liberty and the Imperial project in Washington County.

Facilities, there in that footprint, along with thoughts around how they would expand in the future. So really difficult to date to nail down a timeframe on when we think and announced that could further materialize, but ultimately we think that it's going to take a few months to still kind of grind through these details but.

Dennis Degner: You bet. Good morning, Arun. Thanks for joining us. I tried to touch on this a little bit here just a few minutes ago, but I think at the end of the day, we're seeing that the conversations are very fruitful. We're seeing that the counterparties are getting down to our partners in this JV are getting down to what I would say is a lightning bonus round of the final few end users that could utilize the facility there and that footprint, along with thoughts around how they would expand in the future. It is really difficult today to nail down a timeframe on when we think an announcement could further materialize. Ultimately, we think that it's going to take a few months to still kind of grind through these details. The good news is it's a great location where Imperial has their surface development opportunity.

But the good news is it's a great location, where imperial has their surface development opportunity and I think to maybe shed a small piece of light on the seriousness of this project we have heard us talk about in prior meetings about the the sites project at the state level and the regulatory.

Climate, the governors willingness to really put some dollars to work to help support some of these projects going from we will say concept and into reality.

Here over the last several weeks you saw Liberty announced that they were one of the early on an initial recipients of some of those funds to help support this project and so we think that's a great sign not just from a we'll call. It conceptual planning phase, but also the state's willingness to support this as well and ultimately our supply of gas being writers of the foot.

Dennis Degner: I think to maybe shed a small piece of light on the seriousness of this project, you've heard us talk about in prior meetings about the site's project at the state level and the regulatory climate, the governor's willingness to really put some dollars to work to help support some of these projects going from, we'll say, concept into reality. Just here over the last several weeks, you saw Liberty announce that they were one of the early on and initial recipients of some of those funds to help support this project. We think that's a great sign, not just from a, we'll call it, conceptual planning phase, but also the state's willingness to support this as well. Ultimately, our supply of gas being right under the footprint of this particular site is just really ideal.

Print.

This particular site is just really ideal. So we think this is going to translate into expansion into other projects as well because of all the complementary components we've talked about.

But it's a very busy space I'll, just say this Alan and the team continue to have a number of conversations and helping support this along so we're we're awfully optimistic.

Yes, we cover Liberty and they were pretty optimistic Dennis about.

Inking some some power deals relatively soon so would make sense, maybe one question for you guys what youre seeing.

And the global LPG market.

Dennis Degner: We think this is going to translate into expansion into other projects as well because of all the complementary components we've talked about. It's a very busy space. I'll just say this. Alan and the team continue to have a number of conversations in helping support this along. We're awfully optimistic.

Right now, we're seeing an environment, where far east propane and butane prices are below what we're seeing in Europe and the U S. So I was wondering if you could maybe give us some thoughts on how you see.

The international LPG market trending next year obviously.

Mark Scucchi: Yeah, we cover Liberty and they were pretty optimistic, Dennis, about inking some power deals, you know, relatively soon. It would make sense. Maybe one question for you guys, what you're seeing in the global LPG market. Right now we're seeing an environment where Far East propane and butane prices are below what we're seeing in Europe and the U.S. I was wondering if you could maybe give us some thoughts on how you see the international LPG market trending next year. Obviously, and perhaps implications of a Trump/Xi kind of trade deal, which could happen in the next few days or so. Thoughts, could that be something that opens back up U.S. exports to China?

Perhaps implications of a.

Trump.

Kind of a trade deal, which could happen in the next few days or so and thoughts could that be something that opens back up U S exports to China.

Arun This is Alan Engberg, I head up the marketing piece that range. So I'll take a stab at your question.

Sure.

Overall and as Dennis mentioned earlier, we're pretty optimistic on the set up for going into next year.

<unk>.

There has obviously been a lot of volatility in a lot of back and forth in terms of international dynamics.

On the political front and we can't.

We can't predict what's going to happen there.

<unk> news this morning.

Weak has been positive I think we're going to get too good place, but in the meantime, I think it's important to note that.

Dennis Degner: Arun, this is Alan Engberg. I head up the marketing piece at Range. I'll take a stab at your question. We're, as Dennis mentioned earlier, pretty optimistic on the setup for going into next year. There's obviously been a lot of volatility and a lot of back and forth in terms of international dynamics on the political front. We can't predict what's going to happen there. Recent news this morning, this week has been positive. I think we're going to get to a good place. In the meantime, I think it's important to note that from, let's say, an ethane side, exports are up year on year despite all the turbulence. From an LPG standpoint, September year to date, exports are actually up, not up that much, but it's a few percentage points.

From let's say an ethane side exports are up year on year. Despite all the turbulence and from an LPG endpoints September year to date exports are actually not up that much but it's a.

A few percentage points.

When we look forward going into.

This year next year as Denis had mentioned earlier, we see 700000 barrels a day of LPG demand growth.

And just to get into a little bit more granularity. That's 23, new <unk> units that are still coming up and granted those are primarily in China.

But it's also 127000 barrels a day for LPG demand going into ethylene steam crackers.

And then we've always got that Rezko piece, which is pretty inelastic and has grown at around two to two 5% a year. So you add all that up and Thats that is good strong demand and if we look back just over the past year year and a half out of the U S. Theres actually been constraints from an export capacity standpoint, we've been <unk>.

Dennis Degner: When we look forward going into just this year, next year, as Dennis had mentioned earlier, we see 700,000 barrels a day of LPG demand growth. To get into a little bit more granularity, that's 23 new PDH units that are still coming up. Granted, those are primarily in China. It's also 127,000 barrels a day for LPG demand going into ethylene steam crackers. We've always got that ResCom piece, which is pretty inelastic and has grown at around 2% to 2.5% a year. You add all that up, and that is good, strong demand. If we look back just over the past year, year and a half, out of the U.S., there's actually been constraints from an export capacity standpoint. We've been bumping up against the limit. What we're going through right now is major export capacity expansions.

<unk> been up against the limit.

And what we're going through right now is major.

Export capacity expansions, so we're adding between now and the end of the decade, 42%.

To the U S export capacity for LPG.

In numbers its a big number it's just under 1 million barrels per day of new capacity, we're confident again looking at.

The demand that we see set up.

For the rest of this decade in one four to $1 5 million barrels per day and that export capacities can be well utilized.

And as a result of that as we mentioned in our prior call. We've taken on additional export capacity out of our new terminal in the northeast. The <unk> terminal will have access to that probably starting late 'twenty six early 2027.

Dennis Degner: We're adding between now and the end of the decade, 42% to the U.S. export capacity for LPG. In numbers, it's a big number. It's just under a million barrels per day of new capacity. We're confident, again, looking at the demand that we see set up for the rest of this decade being 1.4 to 1.5 million barrels per day, that that export capacity is going to be well utilized. As a result of that, as we mentioned in a prior call, we've taken on additional export capacity.

So overall that lends itself to I think strong demand pull on U S Ngls ethane and LPG and for LPG in particular.

We see propane relative to crude continuing to gain strength as we go through the period right now we're at about 45% that's higher than where we were last year at this time.

Long term averages have been around 60% I think that's within the realm of possibility.

Alan Engberg: Out of a new terminal in the Northeast, the Rupano Terminal, and we'll have access to that probably starting late 2026, early 2027. Overall, that lends itself to just, I think, strong demand pull on U.S. NGLs, ethane, and LPG. For LPG in particular, we see propane relative to crude continuing to gain strength as we go through the period. Right now, we're at about 45%. That's higher than where we were last year at this time. Long-term averages have been around 60%. I think that's within the realm of possibility. Good overall for Range.

So good overall for range.

Great. Thanks, a lot.

Thank you Ian.

And our next question will be coming from Doug Leggate of Wolfe Research. Your line is open.

Thank you good morning, guys.

Gotcha.

There's a lot of moving parts in these.

Supply agreement, so I wonder if I could take two pieces of them.

The first is the prognosis for your <unk>.

Realizations, whether you want to benchmark avocado as a percentage of benchmark.

Sure.

And based on discounts or whatever and whats most kind of on my mind is you guys have got a lot of takeaway obviously out of the basin.

Laith Sando: Great, thanks a lot.

Mark Scucchi: Thanks, everyone.

But there was also I think a growing concern perhaps of the two lowest cost areas of the country.

Operator: Our next question will be coming from Doug Leggate of Wolfe Research. Your line is open, Doug.

We're going to be the primary sources of supply for a lot of the onshore so specifically the Permian and the Marcellus. So I guess my question for you is as you look to your growth story, how do you see your basis.

Dennis Degner: Thank you. Good morning, guys. There's a lot of moving parts in these supply agreements. I wonder if I could take two pieces of them. The first is the prognosis for your realizations, whether you want to benchmark it. I'll look at it as a percentage of benchmark or in-basin discounts, whatever. What's kind of on my mind is you guys have got a lot of takeaway, obviously, out of the basin. There's also, I think, a growing concern perhaps that the two lowest-cost areas of the country are going to be the primary sources of supply for a lot of the onshore stuff, specifically the Permian and the Marcellus. I guess my question for you is, as you look to your growth story, how do you see your basis changing? My follow-up is specifically for Mark.

Changing.

My follow up is specifically for Mark.

Some of your peers have suggested.

Range hasn't had any.

Very large long term supply agreement signed yet because you are not investment grade.

Question for you is your borrowings she is pretty pristine at this point.

What's the holdup, what's it going to take for you guys for the credit agencies to Moodys to investment grade and I. Appreciate you taking my questions.

Hey, good morning, Doug, It's Mark I'll start with both parts of those questions and no doubt.

While all chime in as well so as we think about the supply agreements I'd like to pull back and kind of highlight a couple of comments that Dennis and Alan have both made so far.

Dennis Degner: Some of your peers have suggested that Range Resources hasn't had any very large long-term supply agreements signed yet because you're not investment-grade. My question to you is, your balance sheet is pretty pristine at this point. What's the holdup? What's it going to take for you guys, for the credit agencies, to move you to investment-grade? I appreciate you taking my questions.

And as we look at even this morning's call and the amount of time spent appropriately on the hot topics of the day, which is data center and in basin demand and so forth I think it's important to put that in context of ranges overall current portfolio and our marketing strategy.

For everyone, New <unk> to the range story, it's important to remember that 90% of our revenue essentially comes from outside the basin half of our guests because the Gulf coast.

[Operator]: Hey, good morning, Doug. It's Mark. I'll start with both parts of those questions. No doubt, Dennis will chime in as well. As we think about these supply agreements, I'd like to pull back and highlight a couple of comments that Dennis and Alan have both made so far. As we look at even this morning's call and the amount of time spent appropriately on the hot topics of the day, which is data center and in-base and demand and so forth, I think it's important to put that in context of Range's overall current portfolio in our marketing strategy. For everyone newer to the Range story, it's important to remember that 90% of our revenue essentially comes from outside the basin. Half of our gas goes to the Gulf Coast. 30% goes to the Midwest.

30% goes to the Midwest, we've already entered into and completed two long term five year plus deals with Japanese utilities LNG exports out of the Gulf Coast, We've already done multiple 15 year plus term deals with petrochemical partners.

Canadian and European.

These use pricing structures that could be nymex linked to that could be northwest European naphtha links that could be linked to depending on the liquids components. So international marketing.

Term deals deals of size deals are duration spread.

The spread across the U S and global markets with.

[Operator]: We've already entered into and completed two long-term, five-year-plus deals with Japanese utilities, LNG exports out of the Gulf Coast. We've already done multiple 15-year-plus term deals with petrochemical partners, be it Canadian and European. These use pricing structures that could be NYMEX linked. It could be Northwest European NASA linked. It could be ARA or FEI linked, depending on the liquids components. International marketing, term deals, deals of size, deals of duration, spread across the U.S. and global markets with long-term customers is nothing new to Range. As we look at these deals and negotiate with customers for in-base and demand, be it industrial, be it data centers, be it power, with traditional customers like utilities, it's the same mindset. What is going to bring Range the best margin over the long haul?

Long term customers is nothing new to range.

So as we look at these deals and negotiate with customers for in basin demand.

Be it industrial bid datacenters via power with traditional customers like utilities.

It's the same mindset.

What is going to bring range the best margin over the long haul what is the best visible demand drove demand that underpins growth and profitability for range as we highlighted in our scripted comments earlier, so realizations pricing, that's clearly our priority and while we may not have announced the first deals out there.

The quality of discussions on a number of discussions that are ongoing and our marketing team are very encouraging with the liberty Imperial.

Marketing effort or be it our other discussions and project initiatives, we have underway. So these as we evaluate these deals it comes back to what is additive to our portfolio. They will clearly be positive additions.

[Operator]: What is the best visible demand, the durable demand that underpins growth and profitability for Range, as we highlighted in our script comments earlier? Realizations, pricing, that's clearly our priority. While we may not have announced the first deals out there, the quality of discussions and the number of discussions that are ongoing in our marketing team are very encouraging, be it with the Liberty Imperial joint marketing effort, or be it our other discussions and projects initiatives we have underway. As we evaluate these deals, it comes back to what is additive to our portfolio. They will clearly be positive additions, and we'll get there when the right deal comes along. As it relates to sources of supply, you were commenting on the lowest cost sources of supply, whether you know we want to talk in the lower 48, whether we're talking to Haynesville, whether we're talking to Permian.

And we will get there when the right deal comes along so as it relates to sources of supply you were commenting on the lowest cost sources of supply whether we want to talk in the lower 48, whether were talking to haynesville, whether we're talking in the Permian quite frankly, the market need all of it.

And at the end of the day.

As you fast forward just a couple of years and you look closer to 2030.

By 2008, we should be by.

By 2028, we should be at 28 Bcf exports.

The gas into LNG.

Quite a bit higher than that by 2030, So where is it all going to come from and how does the U S managed cluster supply specifically domestically for the consumer, but frankly, you need additional supply out of Appalachia and out of southwest, Pennsylvania, So that'll happen you're already seeing a lot of discussion around infrastructure expansions and demand pull.

[Operator]: Quite frankly, the market needs all of it. At the end of the day, as you fast forward just a couple of years and you look closer to 2030, by 2028, we should be at 28 Bcf exports, feed gas into LNG, and quite a bit higher than that by 2030. Where's it all going to come from? How does the U.S. manage cost of supply, specifically domestically for the consumer? Quite frankly, you need additional supply out of Appalachia and out of Southwest Pennsylvania. That'll happen. You're already seeing a lot of discussion around infrastructure expansions and demand pull. The dynamic is shifting. You've already seen that on some recent announcements of who's subscribing to midstream capacity. We are shifting that demand pull because of the recognized need for low-cost, long-duration gas in Southwest Pennsylvania.

The dynamic is shifting you've already seen nonsense.

Our recent announcements of who's subscribing to midstream capacity and we are shifting that demand pool because of the recognized the need for low cost long duration gap in southwest, Pennsylvania, So bringing that all way back to range. In your question of why haven't we announced the deal and does investment grade have anything to do with the.

The current state of announced deals I'd say it.

As best as we understand it has absolutely nothing to do with it our credit rating has not come up in a single conversation with customers. Our leverage is below that of investment grade peers, and our bonds trade at investment grade levels. As I mentioned earlier, we have already done long term deals multiple five year deals with Japanese utilities international deals at 15 <unk>.

Near term deals with international.

International Pet Chems.

Again marketing for US is about maybe getting the best deal not necessarily the fastest steel.

[Operator]: Bringing that all the way back to Range and your question of why haven't we announced a deal and does investment-grade have anything to do with the current state of announced deals, I'd say as best as we understand it, it has absolutely nothing to do with it. Our credit rating has not come up in a single conversation with customers. Our leverage is below that of investment-grade peers, and our bonds trade at investment-grade levels. As I mentioned earlier, we've already done long-term deals, multiple five-year deals with Japanese utilities, international deals, and 15-year term deals with international TEK-KEMs. Marketing for us is about maybe getting the best deal, not necessarily the fastest deal.

Yes, Doug real quick I'll, just maybe close out with a couple of comments on the on basis and the view there I mean look if you look at where basis is really landed every since MBP came into service in <unk>.

See now the conversation about growing demand really we see some durability and where where basis is as it stands today. We've got in basin. Our view is <unk> roughly 5% to eight Bcf a day of incremental demand thats going to materialize by the end of the decade, you've heard Mark and I would touch on this.

Different times unrealized, but as we think about the go forward in our mind really the demand is outstripping the supply from a standpoint of you need to have infrastructure, it's going to play a huge part and we think at the end of the day without incremental infrastructure. This could be I'll, just say you could continue to see demand.

Alan Engberg: Yeah, Doug, real quick, I'll just maybe close out with a couple of comments on basis and the view there. I mean, look, if you look at where basis has really landed ever since MVP came into service and you see now the conversation about growing demand, we see some durability in where basis is as it stands today. We've got in basin, our view is there's roughly 5 to 8 Bcf a day of incremental demand that's going to materialize by the end of the decade. You've heard Mark and I touch on this a few different times, I realize. As we think about the go-forward, in our mind, the demand is outstripping the supply. From a standpoint of you need to have infrastructure, it's going to play a huge part.

As best as we understand, it has absolutely nothing to do with it. Our credit rating has not come up at a single conversation with customers. Our Leverage is below that of investment grade peers and our bonds trade at investment grade levels. As I mentioned earlier, we've already done long-term deals. Multiple 5 year deals with Japanese utilities International deals and 15-year term deals with, uh, International pet cats. So, again, marketing for us is about maybe getting the best deal, not necessarily the fastest deal.

Outstrips supply and further adding some strength to basis.

However, we also know there is a willingness to with this current administration and at the state level to look at how you can support this in basin demand growth, we think that balances out over the course of time and again, what we're seeing at this 70 sit type level is something Thats got durability, you could start to see some further strengthening in the future we will that will.

Maybe to be seen though.

Hey, guys I appreciate the detailed answer I wonder if I could just take a bite mark very quickly to the second part of my question. What do you think is going to take for the.

Alan Engberg: We think at the end of the day, without incremental infrastructure, this could be a, I'll just say, you could continue to see demand outstrip supply and further adding some strength to basis. However, we also know there is a willingness to, with this current administration and at the state level, to look at how you can support this in-basin demand growth. We think that balances out over the course of time. Again, what we're seeing at this $0.70 type level is something that's got durability. You could start to see some further strengthening in the future. That will remain to be seen, though.

Credit agencies can move you to investment because even if it's not an issue clearly from what you've said, but but still your balance sheet is better than most of your peers on your still sub investment grade is a scale issue or what do you think is behind us.

Yeah, Doug real quick. I'll just maybe close out with a couple of comments on the on basis and and the view there. I mean, look, if you if you look at where basis has really landed every since MVP came into service and and you see now the conversation about growing demand really we see some durability in where uh where basis is as it stands today. We've got in Basin, our view is is there's roughly 5 to 8 BCF a day of of incremental demand, that's going to materialize by the end of the decade. You've heard Mark and I touch on this, uh, a few different times. I'd realize. But as we think about the go forward in our mind, really, the demand is outstripping, the supply. From the standpoint of, you need to have infrastructure. It's going to play a huge part. And we think at the end of the day without incremental infrastructure, um, this could be a, I'll just say you could continue to see demand outstrips Supply and further adding some strength to Bases. Um, however, we also know there is a willingness to

Yes, I think as you look at the publications from the rating agencies over the last several years. They have worked to keep up with the evolution of the industry and their targets have moved somewhat and you've touched on it scale just just shift production side.

Several years ago with a focus for them. If you look at their most recent commentary basically we're checking all the boxes I think with the growth plan, we've already laid out there just organically.

Dennis Degner: Guys, I appreciate the detailed answer. I wonder if I could just take it back, Mark, very quickly to the second part of my question. What do you think it's going to take for the credit agencies to move you to investment-grade, even if it's not an issue clearly from what you've said, but still, your balance sheet is better than most of your peers and you're still sub-investment-grade? Is that a scale issue or what do you think is behind that?

Uh, with this current Administration and at the state level to look at how you can support this Invasion, demand growth, we think that balances out over the course of time. And again, what we're seeing at this 70 Cent type level is something that's got durability. You could start to see some further strengthening in the future uh well that will remain to be seen though.

Hey guys, I appreciate the detailed answer. I wonder if I could just take it back more very quickly to the second part of my question. What do you think it's going to take for the...

We should be checking all the boxes in the not too distant future I'm not going to try to predict exactly.

When it may or may not happen, what I'll say is it will be a good byproduct of the quality of our assets are breakeven or full cycle, our recycle ratios and so forth.

[Operator]: Yeah, I think as you look at the publications from the rating agencies over the last several years, they have worked to keep up with the evolution of the industry and their targets have moved somewhat. You’ve touched on it. Scale, just your production size, several years ago was a focus for them. If you look at their most recent commentary, basically, we're checking all the boxes. I think with the growth plan we've already laid out there, just organically, we should be checking all the boxes in the not-too-distant future. I'm not going to try to predict exactly when it may or may not happen. What I'll say is it will be a good byproduct of the quality of our assets, our break-evens, our full cycle, our recycle ratios, and so forth.

Um, Credit Agencies to move you to investment grade, even if it's not an issue clearly from what you've said, but but still your balance sheet is better than most of your peers and you're still sub investment grade. Uh is that scale issue or what what do you think is behind that?

So when we clear that hurdle in investment grade I think we can.

Clear that are quite high and it will just come naturally from.

From our operations and growth in production that we've laid out so theres no theres nothing thats, an encumbrance or specific issue for them. So.

Said differently.

It'll be a nice to have but I don't think its a need to have for marketing or other purposes.

Yeah, I think as you look at the publications from the rating agencies over the last several years, they have worked to keep up with the evolution of the industry, and their targets have moved somewhat. And you've touched on it—scale. Just your production size. Several years ago, that was a focus for them. If you look at their most recent commentary, basically, we're checking all the boxes. I think with the growth plan we've already laid out there, just organically.

Great stuff guys I'm sure we'll get into this in more detail in a few weeks. Thanks. So much appreciate it thanks guys appreciate it.

And our next question will be coming from Paul Diamond City, Paul Your line is open.

Hi, Thank you good morning, Thanks for taking the call just wanted to quickly touch on your kind of thoughts on a couple of issues across the market. So curtailments in production modulation at scene.

[Operator]: When we clear that hurdle into investment-grade, I think we can clear that bar quite high, and it'll just come naturally from our operations and growth and production that we've laid out. There's nothing that's an encumbrance or a specific issue for them. Said differently, it'll be a nice-to-have, but I don't think it's a need-to-have for marketing or other purposes.

We should be checking all the boxes and then not to distribute future. I'm not going to try to predict exactly when it may or may not happen. What I'll say is, it will be a good byproduct of the quality of our assets, our break evens, our full cycle, our recycle ratios and so forth. Um, so when we clear that hurdle in investment grade, I think we can clear that bar quite high and it'll just come naturally from

Additional chatter as of late with some of your peers choosing that avenue to kind of address pricing volatility I guess, how should we think about range and just kind of overall strategy towards that type of modulation or whether it's plus or minus or curtailments or is it more of a steady state.

From our operations and growth and production. We've laid out. So there's no, there's nothing. That's an encumbrance or a specific issue for them. So

Dennis Degner: Great stuff, guys. I'm sure we'll get into this in a lot more detail in a few weeks. Thanks so much. Appreciate it.

Said differently. It's it'll be a nice to have but I don't think it's a need to have for marketing or other purposes.

Yes, good morning, Paul Thanks for joining us.

[Operator]: Thanks, Doug. Appreciate it, Doug.

If you were to look back over the balance of lets just say in the past.

Great stuff guys. I'm sure we'll get into this and then we'll a lot more detail in a few weeks. Thanks so much, appreciate it.

Operator: Our next question will be coming from Paul Diamond of Citi. Paul, your line is open.

Appreciate it.

Three to five years I think what you would see is a couple of different strategies that range has deployed and one has been we have actually looked at shut in economics, and we've curtailed some production when we felt like pricing warranted and there was also a a supportive reduction in cost.

And our next question.

Dennis Degner: Thank you. Good morning, Al. Thanks for taking the call. Just wanted to quickly touch on your thoughts on a couple of issues across the market. Curtailments and production modulation have seen some additional chatter as of late with some of your peers choosing that avenue to address pricing volatilities. I guess how should we think about Range's overall strategy towards that type of modulation, whether it's plus or minus or curtailments, or is it more of a steady state?

Will be coming from Paul Diamond of City. Paul, your line is open.

And with that production restriction or shut in that we basically deployed deployed several years ago.

The other strategy you have seen US utilizes what you saw last year in to some degree what you've seen in this year's numbers as well where last year you saw us reshape the program, where we had more of our liquids rich activity and turn in lines in the first six to nine months of the year you saw us push our dry gas hills deeper into the year as you started to see.

Alan Engberg: Yeah, good morning, Paul. Thanks for joining us. If you were to look back over the balance of, let's just say, the past, you know, three to five years, I think what you would see is a couple of different strategies that Range Resources has deployed. One has been we have actually looked at shut-in economics, and we've curtailed some production when we felt like pricing warranted. There was also a supportive reduction in cost associated with that production restriction or shut-in that we basically deployed several years ago. The other strategy you've seen us utilize is what you saw last year, and to some degree, what you've seen in this year's numbers as well, where last year you saw us reshape the program where we had more of our liquids-rich activity and turn-in lines in the first six to nine months of the year.

Uh, thank you. Good morning y'all. Thanks for taking the call. Just wanted to quickly touch on your kind of thoughts on a couple of issues across the market. So, curtailment, and production modulation have seen some of this additional chatter as of late with some of your peers, choosing that Avenue to kind of address pricing volatilities if that's, how should we think about ranges kind of overall strategy towards that type of modulation or whether it's plus or minus or curtailment stores? Is it more of a steady state

Fundamentals improved for the winter season, you see a little of that as well. This year in 2025, if you look at the first half of the year much of our focus has been more on the liquids rich side of our business, but again thats on the.

Being supported by the NGL uplift that you've come to see with the Nymex plus type realization type impact that we see really becomes a force multiplier in our in our cash flow in our numbers that we report and now what you've seen is US again shaped this year's program, where the dry gas chillers are going into the second half of the year now balance of those went in.

I think what you would see is a couple of different strategies that range has deployed and 1 has been, we have actually looked at shutting economics and we've curtailed some production when we felt like pricing warranted and there was also a a supportive, uh, reduction in cost associated with that production, uh, restriction or shut in that, we basically deploy deployed several years ago.

Alan Engberg: You saw us push our dry gas tills deeper into the year as you started to see fundamentals improve for the winter season. You see a little of that as well this year in 2025. If you look at the first half of the year, much of our focus has been more on the liquids-rich side of our business. Again, that's being supported by the NGL uplift that you've come to see with that NYMEX Plus type realization type impact that we see really becomes a force multiplier in our cash flow and our numbers that we report. Now what you've seen is us, again, shape this year's program where the dry gas tills are going into the second half of the year.

In Q3, but they were deep enough in Q3, you're really going to see more of the production effects show up in our Q4 numbers, which again.

I know we touched upon in our prepared remarks today as we start to look at finishing the quarter and the year really strong here. So I would say we have looked at some shut ins we've done those over years past.

That's been more a little bit on a limited basis. What you have seen US do is think about shaping of our program, where we think pricing signals would warrant the timing of that that production to turned to sales Q3 for us. This year was business as usual and so again because of that shaping effort that we put in place. We feel like we were able to continue to execute turned those wells in line.

Alan Engberg: Balance of those went in in Q3, but they were deep enough in Q3, you're really going to see more of the production effect show up in our Q4 numbers, which again, I know we touched upon in our prepared remarks today as we start to look at finishing the quarter and the year really strong here. I would say we have looked at some shut-ins. We've done those over years past. That's been more a little bit on a limited basis. What you have seen us do is think about shaping of our program where we think pricing signals would warrant the timing of that production to turn to sales. Q3 for us this year was business as usual.

And then get ready for the upcoming improving pricing markers, which we're already starting to see signs of that and Paul just to emphasize a couple of things that Dennis said I think there's two key points and differentiating factors of ranges business that makes that calculus of curtailments a bit different than our peers first 80% of our gasoline to the basin. So the curtail.

The other strategy you've seen us utilize is what you saw last year and to some degree. What you've seen in this year's numbers as well. Where last year you saw us reshape the program where we had more of our liquids reach activity and turn in lines. In the first 6 to 9 months of the year and you saw us push our dry gas, tills deeper into the year as you started to see fundamentals, improve for the winter season. You see a little of that as well. This year in 2025, if you look at the first half of the Year, much of our Focus has been more on the liquids rich side of our our business. And again that's on the uh being supported by the NGO uplift that you've come to see with that DMX plus type realization. Type impact that we see really becomes a force multiplier in our in our cash flow, in our numbers that we report. And now that you've seen is us again, shaped this year's program where the dry gas, tills are going into the second half of the year. Now balance of those went in in Q3 but they were deep enough. In Q3, you're really going to see more of the production affect

It's a dry gas in basin.

It would have otherwise been sold it in basin pricing.

That math is different than our math, when it's going out of basin to stronger markets second as Dennis said the NGL uplift.

Alan Engberg: Again, because of that shaping effort that we put in play, we feel like we were able to continue to execute, turn those wells in line, and then get ready for the upcoming improving pricing markers, which we're already starting to see signs of that.

You can see it in our realized price year to date ranges realized prices as <unk> greater than Henry hub, So are dynamic.

[Operator]: Paul, just to emphasize a couple of things that Dennis said, I think there are two key points and differentiating factors of Range Resources' business that make that calculus of curtailments a bit different than our peers. First, 80% of our gas leaves the basin. The curtailments of dry gas in basin that would have otherwise been sold at in-basin pricing, that math is different than our math when it's going out of basin to stronger markets. Second, as Dennis said, the NGL uplift. You can see it in our realized price year to date. Range Resources' realized price is $0.20 greater than Henry Hub. Our dynamic of marketing sales outlets combined with a mix of production changes that calculus for us.

Marketing sales outlets combined with a mix of production changes that calculus for us. So we certainly are very mindful and do the math just as Dennis said, but it's just the factors in that equation are somewhat different and give us a great setup.

Show up in our Q4 numbers, which again, I know we touched upon in our prepared remarks today. As we start to look at finishing the the quarter in the year, really strong here. So, I would say we have looked at some shut-ins, we've done those over years past um that's been more a little bit on the limited basis. What you have seen us do is think about shaping of our program where we think pricing signals would warrant the timing of that, that production to turn to sales Q3 for us, this year was business as usual. And so again because of that shaping effort that we put in place, we feel like we were able to continue to execute turn those wells in line and then get ready for the upcoming, improving pricing markers, which we're already starting to see signs of that.

Understood makes perfect sense and just one quick modeling follow up so keeping with the narrative that 400 K in excess inventory by year end works out to 30, or so wells linear fashion over the next or subsequent two years is the right way to think about that like true linearity four wells, a little under four wells per quarter and kind of trenching out.

And Paul just to emphasize a couple things that Dennis said, you know, I think there's 2 key points and differentiating factors of ranges business that make that calculus of curtailment a little bit different than our peers. First 80% of our gas leaves the Basin. So the curtailment is a dry gas in Basin.

That would have otherwise been sold at in Basin pricing. That math is different than our math when it's going out of basin to Stronger markets second, as Dennis said the NGL uplift.

And then just building that into the tool count or should there be more I guess.

You can see it in our realized price year to date. Ranges realized prices is 20 cents greater than Henry health. So our Dynamic of

Seasonality or any other any.

Any other lumpy issues.

[Operator]: We certainly are very mindful and do the math, just as Dennis said, but it's just the factors in that equation are somewhat different and give us a great setup.

Yes, good question I'm only chuckling at the lumpy comment because I think ultimately when you start to go from the model to reality there will be some some dynamics in one we tried to touch on a little bit earlier, but that is with some of the new processing and gathering infrastructure goes into service.

Dennis Degner: Understood. Makes perfect sense. Just one quick modeling follow-up. Keeping with the narrative of the 400K in excess inventory by year-end, it works out to 30 or so wells in any fashion over the next or subsequent two years. Is there a right way to think about that, like true linearity? Four wells, a little under four wells per quarter, and kind of tranching out, and then just building that into the till count? Should there be more seasonality or any other lumpy issues?

Uh, marketing, sales, outlet combined with a mix of production changes, that calculus for us. So we certainly are very mindful and do the math just as Dennis said. But the factors in that equation are somewhat different and give us a great setup.

Towards the midpoint of 2026, so activity wise when you think about activity cadence and you think about capital it will be a.

Really consistent program of execution and then when you start to see that mix step in production it will be.

More towards the midpoint when you see that Harmon Creek processing bolt on and start to go into service so activity wise youre going to see the utilization of that inventory look pretty linear.

Alan Engberg: Yeah, good question. I'm only chuckling at the lumpy comment because I think ultimately, when you start to go from the model to reality, there will be some dynamics. One we tried to touch on a little bit earlier, but that is when some of the new processing and gathering infrastructure goes into service, toward the midpoint of 2026. Activity-wise, when you think about activity cadence and you think about capital, it'll be a really consistent program of execution. When you start to see that next step in production, it will be more toward the midpoint when you see that Harmon Creek processing bolt-on start to go into service. Activity-wise, you're going to see the utilization of that inventory look pretty linear.

Understood makes perfect sense, and just 1, quick modeling follow-up. So, keeping with The Narrative of 400k in excess, inventory by year end, it works out to 30 or so, Wells, linear fashion over the next or subsequent 2 years is the right way to think about that. Like true linearity, you know, 4 Wells, a little under 4 Wells per quarter and kind of branching out and then it's building that into the till count or should there be more I guess seasonality or any other any other lump lumpy issues?

Yeah, good question. I'm only chuckling at the lumpy comment because I think ultimately.

What youre going to see on the production side is some slight increase in that youre going to see as you would expect a step up when you see the next wave of Harmon Creek processing come into place, but it's going to be influenced by the infrastructure expansions that we've announced and how they come into service in the balance of 'twenty six but think about 'twenty six 'twenty seven is a fairly linear.

There will be.

Your utilization of that of that inventory.

Some some Dynamics and 1, we tried to touch on a little bit earlier but that is when some of the new processing and Gathering uh infrastructure goes into Service uh toward the midpoint of 2026. So activity wise when you think about activity, Cadence and you think about Capital, it'll be a

Got it understood I appreciate the clarity.

And our next question will be coming from Greg Jeff <unk>.

Of Goldman Sachs. Your line is open.

Good morning, all and thank you for taking my questions I. Just first wanted to start on the fact that given you are now with that well within your target net debt range. How are you evaluating allocation of free cash flow between share repurchases further debt reduction or bookmark and cash for potential other investment opportunities.

Alan Engberg: What you're going to see on the production side is some slight increase, and then you're going to see, as you would expect, a step up when you see the next wave of Harmon Creek processing come into place. It's going to be influenced by the infrastructure expansions that we've announced and how they come into service in the balance of 2026. Think about 2026 and 2027 as a fairly linear utilization of that inventory.

Really consistent program of execution. And then when you start to see that next step in production, it will be, uh, you know, more toward the midpoint. When you see that Herman Creek Processing bolt-on start to go into service, so activity-wise you're going to see the utilization of that inventory look pretty linear.

Hi, Good morning, Brett I'll take that one so as we think about.

Future allocation of capital and how we will elect to reinvest in the business I think we can first look back at historical trends and what we have said, we will do and what's borne out in the numbers. So first priority a number of years ago was deleveraging to your point, we're quite comfortably within the target range.

Dennis Degner: Got it. Understood. Appreciate the clarity.

What you're going to see on the production side is, you know, some slight increase and then you're going to see, as you would expect a step up when you see the next wave of Harman Creek Processing coming into place. But it's, it's going to be in influenced by the infrastructure, expansions that we've announced and how they come into service in the balance of 26. But think about the 26, and 27 is a fairly linear utilization of that of, that inventory.

Operator: Our next question will be coming from Greta Drevki of Goldman Sachs. Your line is open.

Got it understood. Appreciate the clarity.

[Analyst]: Morning, Al. Thank you for taking my questions. I just first wanted to start on the fact that given you are now well within your target net debt range, how are you evaluating allocation of free cash flow between share repurchases, further debt reduction, or bookmarking cash for potential other investment opportunities?

And as you think about the cycles in the business.

Can likely expect us to fluctuate add delever at some points in a particularly strong point of the cycle you could expect some further deleveraging and then at other points in the cycle, we think about how best to use our balance sheet to create outsized value and opportunistic times. So again to look backwards as perhaps an analogue in 2022 price.

[Operator]: Good morning, Greta. I'll take that one. As we think about future allocation of capital and how we will elect to reinvest in the business, I think we can first look back at historical trends and what we have said we will do and what's borne out in the numbers. First, the priority a number of years ago was deleveraging. To your point, we're quite comfortably within the target range. As you think about the cycles in the business, you can likely expect us to fluctuate and delever at some points. In a particularly strong point of the cycle, you could expect some further deleveraging. At other points in the cycle, we think about how best to use that balance sheet to create outsized value in opportunistic times. Again, to look backwards as perhaps an analog, in 2022, prices ran and Range bought back in $400 million in shares.

That range. How are you? Evaluating allocation of free cash flow between Cherry purchases further, debt, reduction or bookmarking cash for potential other investment opportunities.

Good morning Greta, I'll take that 1. So as we think about,

<unk> ran in range bought back and $400 million in shares, but it was about 28% of free cash flow softer prices. While we were still working on the balance sheet 2023 about 19% of cash flow.

Free cash flow went to returns of capital in the form of both repurchases and dividends.

Future allocation of capital and how we will elect to reinvest in the business. I think we can first look back at historical trends and what we have said we will do and what's more, out of the numbers. So first, the priority a number of years ago was delegating to, your point, we were quite comfortably within the target range.

As we got within our targets and towards the mid or lower end of that you've seen us lean more into those share repurchases and increase our returns of capital.

While investing in the business building inventory and developing this growth plan.

So two.

<unk> 2023, 2024 and year to date this year <unk> seen returns of capital being 19%, 31% and about 50% year to date. This year. So those are just examples of the trends what the business is capable of expect us to continue to do.

[Operator]: It was about 28% of free cash flow. Softer prices, while we were still working on the balance sheet, 2023, about 19% of free cash flow went to returns of capital in the form of both repurchases and dividends. As we got within our targets and towards the mid and lower end of that, you've seen us lean more into those share repurchases and increase our returns of capital while investing in the business, building the inventory, and developing this growth plan. In 2023, 2024, and year to date this year, you've seen returns of capital be 19%, 31%, and about 50% year to date this year. Those are just examples of the trends, what the business is capable of. Expect us to continue to do all of the above and try to execute in an efficient, opportunistic manner.

All of the above and try to execute in an efficient opportunistic manner. When we see signs of weakness, we certainly have the willingness and capability of leaning in and buying shares.

But most fundamentally we have an extremely attractive inventory and highly profitable projects.

It's a really exciting growth plan, that's tied directly to market driven demand and we'll continue to focus on that as well.

And as you think about the Cycles in the business, um, you can likely expect us to fluctuate and deliberate some points in a particularly strong point of the cycle. You could expect some further deleveraging and then another Point that's in the cycle, we think about how best to use that balance sheet to create outsides value and opportunistic times. So, again, to Look Backwards, as perhaps an analog, you know, in 2022 prices ran and range bought back in 400 million, in shares that it was about 28% of free, cash flow software prices while we were still working on the balance sheet, 2023 about 19% of cash flow of uh, free cash flow. Went to returns of capital in the form of both repurchases and dividends as we got within our targets and and towards the mid and lower end of that. You've seen us lean more into those share repurchases and increase our returns of capital. While investing in the business, building the inventory and developing this growth plan.

Great. Thank you very much I appreciate it now so I just wanted to get your latest thoughts on M&A. At this also continues to be prevalent topical theme in the upstream space here acknowledging that you have significant low cost inventory depth as you've outlined so far and on slide five are there any acreage packages potentially available that you believe could be accretive during this portfolio.

[Operator]: When we see signs of weakness, we certainly have the willingness and capability of leaning in and buying shares. Most fundamentally, we have an extremely attractive inventory and highly profitable projects and a really exciting growth plan that's tied directly to market-driven demand. We'll continue to focus on that as well.

Yes, great I'll tackle that one I think when you look around the acreage position that we have really the efforts to block up all of the acreage is really limited some of that opportunity. However, we do see some opportunities to pick up some what I'll call white space acreage thats in and around our footprint. Some of that is in the capital numbers.

[Analyst]: Great. Thank you. Very much appreciate it. I also just wanted to get your latest thoughts on M&A as it's also continued to be a prevalent topical theme in the upstream space here. Acknowledging that you have significant low-cost inventory depth as you've outlined so far and on slide five, are there any acreage packages potentially available that you believe could be accretive to Range's portfolio?

Um, so 2023, 2024, and year-to-date this year, you've seen returns of capital be 19%, 31%, and about 50% year-to-date this year. So those are just examples of the trends, what the business is capable of, and expected to continue to do, all of the above, and try to execute in an efficient, opportunistic manner. When we see signs of weakness, we certainly have the willingness and capability of leaning in and buying shares. Um, but most fundamentally, we have an extremely attractive inventory and highly profitable projects and a really exciting growth plan that's tied directly to market-driven demand, and we'll continue to focus on that as well.

That you see us reporting on this year, where there is roughly up to $30 million in incremental spend.

Above maintenance type levels.

Major land program, where we have the ability to pick up some of that I'll say that open track leasing that allows us to very efficiently add some inventory and also extend lateral lengths and many of those cases, we think thats going to continue to exist for the next few years of course as you would imagine over the course of time that gets that opportunity to get smaller and smaller.

Alan Engberg: Yeah, Greta, I'll tackle that one. I think when you look around the acreage position that we have, really the efforts to block up all of the acreage have really limited some of that opportunity. However, we do see some opportunities to pick up some, what I'll call, white space acreage that's in and around our footprint. Some of that's in the capital numbers that you see us reported on this year where there's roughly up to $30 million in incremental spend above maintenance type levels to manage your land program where we have the ability to pick up some of that, I'll say, that open track leasing that allows us to very efficiently add some inventory and also extend lateral lengths in many of those cases. We think that's going to continue to exist for the next few years.

Great. Thank you very much, I appreciate it. I also wanted to get your latest thoughts on M&A, as it has continued to be a prevalent topical theme in the upstream space here. Acknowledging that you have significant low-cost inventory depth, as you've outlined so far and on Slide 5, are there any acreage packages potentially available that you believe could be accretive to Range's portfolio?

Theres a few other parcels that in areas that we've got our eyes on that are right in the I'll just say the operating window of our footprint some of them are state parks.

No doubt that could present, a little bit of a challenge to given where the state may be viewing leasing today.

Yeah, great. I'll I'll tackle that 1. Yeah. I think when you look around the the Acres position that we have really the efforts that to to block up all of the acreage has really limited some of that opportunity. However, we, we do see some opportunities to pick up some, what I'll call White space acreage that's in and around our footprint. Some of that's in the capital numbers that you see us reported on uh this year where there's you know roughly up to 30 million dollars in incremental spend.

But we.

<unk> seen a willingness from like Ohio, as an example to consider leasing under their state parks, we think Thats a good sign and then on top of it we have the surrounding operating footprint, where we would be able to drill entity, maybe those type of areas without having any surface access. So there are some further opportunities right in and around where we operate today.

Alan Engberg: Of course, as you would imagine, over the course of time, that opportunity gets smaller and smaller. There are a few other parcels and areas that we've got our eyes on that are right in the, I'll just say, the operating window of our footprint. Some of them are state parks, and no doubt that could present a little bit of a challenge, given where the state may be viewing leasing today. You've seen a willingness from Ohio, as an example, to consider leasing under their state parks. We think that's a good sign. On top of it, we have the surrounding operating footprint where we would be able to drill underneath maybe those type areas without having any surface access. There are some further opportunities right in and around where we operate today, high-quality inventory, and we think there will be those opportunities that surface in the future.

High quality inventory and we think there will be those opportunities that surface in the future.

Thank you.

Thank you.

And we are nearing the end of today's conference. We will go to David Deco bump of TD Cohen.

Final question. Your line is open David.

Above maintenance type levels uh to manage your land program where we have the ability to pick up some of that. I'll say that open track, leasing, that allows us to very efficiently. Add uh, some inventory and also extend lateral links. In many of those cases. We think that's going to continue to exist for the next few years. Of course, as you would imagine over the course of time, that gets that that opportunity to get smaller and smaller. Uh, there's a few, uh, other Parcels that in areas that we've got our eyes on that are right in the, I'll just say the operating window of our footprint, you know, some of them are state parks and, you know, no doubt that could present a little bit of a challenge to, uh, given where the state may be viewing leasing today.

Thanks for letting me be the caboose here guys.

I did just wanted to get your thoughts on you've commented a lot about your optimism or excuse me optimism around NGL markets and obviously in natural gas markets.

Just given the amount of international demand capacity, that's coming online, particularly for markets like ethane.

Should we expect to see that percentage of your portfolio that youre directing internationally to increase should we anticipate that we're going to see some commercial agreements.

[Analyst]: Thank you.

But, uh, we’ve seen a willingness from, like, Ohio as an example, to consider leasing under their state parks. We think that's a good sign. On top of it, we have the surrounding operating footprint where we would be able to drill underneath maybe those type areas without having any surface access. So there are some further opportunities right in and around where we operate today. High-quality inventory, and we think there will be those opportunities that surface in the future.

Alan Engberg: Thank you.

Thank you.

Operator: We are nearing the end of today's conference. We will go to David Adam Deckelbaum of TD Cowen for our final question. Your line is open, David.

Thank you.

26, and 27% as new volumes are commissions with 28 or.

Laith Sando: Thanks for letting me be the caboose here, guys. I did just want to get your thoughts on you've commented a lot about your optimism around NGL markets and obviously the natural gas markets. Given the amount of international demand capacity that's coming online, particularly for markets like ethane, should we expect to see that % of your portfolio that you're directing internationally to increase? Should we anticipate that we're going to see some commercial agreements into 2026 and 2027 as new volumes are commissioned for 2028? How do you think about that marketing strategy and perhaps outlook for premium relative to Bellevue in the next couple of years?

How do you think about I guess that marketing strategy, and hence perhaps outlook for premium relative to Bellevue on the next couple of years.

And we are nearing the end of today's conference. We will go to David Deco Bum of TD Cohen for our final question. Your line is open, David.

Hey, David This is Alan.

So yes I appreciate your comments.

I'm glad you see similar we do there is a tremendous amount of new demand coming on we're going to be growing our business at the same time, so we're going to be able to supply into that.

B.

The proportion of our business on the LPG side.

We're involved in international exports.

Uh, thanks for letting me be the caboose here, guys. Um, I I, I did just want to get your thoughts on. You've come into a lot about your optimism, or excuse me, optimism around NGL markets and obviously the natural gas markets, uh, just given the amount of international demand capacity that's coming online, particularly for markets like EMEA. Should we expect to see that percentage of your portfolio that you're directing internationally to increase? Should we anticipate that we're going to see some commercial agreements into?

Has been roughly around 80% of our production.

Puts us at the highest level relative to our peers and what's good about.

The additions to that capacity that.

New volumes are commissioned for 28. Or, you know, how do you think about, I guess, that marketing strategy and perhaps outlook for premium relative to build view in the next couple of years?

Alan Engberg: Hey, David. This is Alan. I appreciate your comments. I'm glad you see it similar to we do. There is a tremendous amount of new demand coming on. We're going to be growing our business at the same time, so we're going to be able to supply into that. The proportion of our business on the LPG side where we're involved in international exports has been roughly around 80% of our production, which puts us at the highest level relative to our peers. What's good about the additions to that capacity that we talked about that I referenced earlier is that that percentage is going to stay about the same. It'll be growing, but it'll be staying roughly 80%. It'll continue to have a fair amount of flexibility built into it so that we can optimize between domestic and export markets, depending on the highest overall return.

We talked about that I referenced earlier is that that percentage is going to stay about the same so it will be growing but it will be staying roughly 80% and it will continue to have a fair amount of flexibility built into it. So we can optimize between domestic and export markets.

Spending on the highest overall return.

Hey, uh, David. This is Alan. Um, so yeah. I appreciate, uh, your comments, and I'm glad you see similarly. There is a tremendous amount of new demand coming on. We're going to be growing our business at the same time, so we're going to be able to supply into that.

um, the

On the ethane side similar type thing.

As was mentioned previously I believe by Mark.

the proportion of our business on the LPG side. We're we're involved in international exports.

Some of the expansions that we're seeing internationally are with people that we already have relationships with.

So I wouldn't be surprised to see some more commitments in that space as we move forward.

I appreciate that and just I guess, the closeout as a follow up to that.

As we think about the balance between gas and liquids.

And anything just in terms of area or geologically that would otherwise target like a mix shift over.

Alan Engberg: On the ethane side, similar type thing. As was mentioned previously, I believe by Mark, some of the expansions that we're seeing internationally are with people that we already have relationships with. I wouldn't be surprised to see some more commitments in that space as we move forward.

Has been roughly around 80% of our production, which puts us at the highest level relative to, uh, our peers. What's good about, um, the additions to that capacity that we talked about, that I referenced earlier, is that that percentage is going to stay about the same. So, it'll be growing, but it'll be staying roughly 80%, and it will continue to have a fair amount of flexibility built into it so that we can optimize between domestic and export markets depending on the highest overall return.

Next couple of years.

Yes, I'll close this out for US today, David on that one yes, I think if you look at our program roughly our activity level should look very similar in the next few years to what you've seen on that allocation of a portion of the field to what you've seen over the last couple of years, but over the course of time, it's very reasonable to.

Laith Sando: I appreciate that. Just to close out as a follow-up to that, as we think about the balance between gas and liquids, anything in terms of area or geologically that would otherwise target a mix shift over the next couple of years?

On the ethane side similar type thing. Uh, there's is was mentioned previously. Uh, I Believe by Mark. Um, some of the expansions that we're seeing internationally are with people that we already have relationships with. Um so I wouldn't be surprised to see some more commitments in that space as we move forward.

Think that our production mix will continue to get slightly wetter.

Our inventory is more weighted on the on the liquid side, you can see where the processing capacity that we have getting commissioned and gathering. It's also focused on the website.

Coupled with the optimism that we've shared about the future of Ngls and what that demand growth looks like we think it's all kind of hand in glove complementary to each other.

Alan Engberg: Yeah, I'll close this out for us today, David, on that one. I think if you look at our program, roughly our activity level should look very similar in the next few years to what you've seen on that allocation of portion of the field to what you've seen over the last couple of years. Over the course of time, it's very reasonable to think that our production mix will continue to get slightly wetter. Our inventory is more weighted on the liquid side. You can see where the processing capacity that we have getting commissioned and gathering, it's also focused on the wet side. Coupled with the optimism that we've shared about the future of NGLs and what that demand growth looks like, we think it's all kind of hand-in-glove complementary to each other.

Appreciate that. And just, I guess to, to close out as a follow-up to that, um, you know, as we think about the balance between gas and, and liquids. Uh, any anything is just in terms of area or or geologically, that would otherwise Target like a a mixed shift over the, you know, the next couple of years.

So I would expect a similar production mix, where youre going to see somewhere in the neighborhood of probably 65% to 70%.

Say approximate range of wet or Super rich type activity, but then with an underlying.

Yeah, I'll close this out for us today. David, on that one, you know, I think if you look at our program, roughly our activity level should look very similar in the next few years to what you've seen on that allocation of portion of the field to what you've seen over the last couple of years.

30, roughly percent of dry activity that also continues to keep that gathering system at a high level of utilization very competitive returns very comparable and allows us to continue to grow our NGL business as well over time.

Thank you guys.

Thanks, David.

And.

Excuse me. This concludes our question and answer session I would like to turn the call back to Mr. Degner for concluding remarks.

Alan Engberg: I would expect a similar production mix where you're going to see somewhere in the neighborhood of probably 65% to 70%, let's just say, approximate range of wet to super rich type activity, with an underlying 30%, you know, roughly, of dry activity that also continues to keep that gathering system at a high level of utilization, very competitive returns, very comparable, and allows us to continue to grow our NGL business as well over time.

But over the course of time, it, it's very reasonable to think that our production mix will continue to get a slightly wetter. Um, our our inventory is more weighted on the, on the liquid side. You can see where the processing capacity, uh, that we have getting commissioned and Gathering. It's also focused on the website coupled with the optimism that we've shared about the future of ngos and what that demand growth looks like. We think it's, it's all kind of hand and glove complimentary to each other. Um, so I would expect a similar production

Yes, I'd just like to thank everybody for joining our call today, it's always exciting to share the results from our prior quarter and so really appreciate everyone. Joining the call as always if you have any follow up questions. Please don't hesitate to follow up with our Investor Relations team and we look forward to sharing our 2025 full year results and plans for 2026 at the next call.

Joining thanks, everyone.

Laith Sando: Thank you, guys.

Mix where you're going to see somewhere in the neighborhood of probably 65 to 70%. Uh, let's just say, approximate range of wet to Super Rich type activity. But then with an underlying 30, you know, roughly percent of dry activity. That also continues to keep that Gathering system at a high level of utilization. Very competitive returns very comparable and allows us to continue to grow our egl business as well over time.

And thank you for your participation in today's conference you may now disconnect.

Alan Engberg: Thanks, David.

Thank you guys.

Thanks David.

Operator: This concludes our question and answer session. I would like to turn the call back to Mr. Degner for concluding remarks.

and,

Alan Engberg: I'd just like to thank everybody for joining our call today. It's always exciting to share the results from our prior quarter, and really appreciate everyone joining the call. As always, if you have any follow-up questions, please don't hesitate to follow up with our Investor Relations team. We look forward to sharing our 2025 full-year results and plans for 2026 at the next call. We appreciate you joining. Thanks, everyone.

Excuse me, this concludes our question-and-answer session. I would like to turn the call back to Mr. Degner for concluding remarks.

Yeah, I'd just like to thank everybody for joining our call today. It's always exciting to share the results from our prior quarter and so really, appreciate everyone, joining the call. As always, if you have any follow-up questions, please don't hesitate to follow up with our investor relations team and we look forward to sharing our 2025 full year results and plans for 2026 at the next call. We appreciate you joining. Thanks everyone.

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

And thank you for your participation. In today's conference, you may now disconnect