Range Resources Corporation

Hello. Welcome to the Range Resources third quarter 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. Statements made during this conference call that are not hysterical facts or 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 speaker's remarks, There will be a question and answer period. Vice President and Best of Relations at Range Resources. Please go ahead, sir.

Thank you, operator. Good morning, everyone, and thank you for joining Range's third quarter 2024 earnings call. Speakers on today's call are Dennis Degner, Chief Executive Officer, and Mark Skuki, 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 will also find our 10Q on RANGE's website under the Investors tab, or you can access it using the SEC's EDGAR system. Please note we'll be referencing certain non-GAAP measures on today's call. Our press release provides reconciliations of these to the most comparable GAAP figures. 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, let me turn the call over to Dennis.

Thanks, Leith, and thanks to all of you for joining the call today. Consistent performance has been a key part of the range story this year, and our third quarter results reflect our repeatable execution in areas such as operating safely. Driving continued drilling, completion, and production improvements, generating free cash flow, and the prudent allocation of that free cash flow, balancing returns of capital to shareholders and the long-term development of our world-class asset base. I believe our third quarter results reflect the ongoing advancement of these objectives and the resilience of Range's business through cycles like we're experiencing today. Range's low capital intensity is a key component of our through-cycle profitability and is the result of Range's class-leading drilling and completion costs, shallow base decline, large blocky core inventory, and talented team. Another key component of Range's resilience is the diversity of our production stream, and the value of Range's liquids business was on full display in the third quarter. Our ability to market ethane, propane, and butane into the international market drove the highest NGL premium in company history, at over $4 per barrel above the Montville View Index. Looking at the entire production makeup, Rain saw an aggregate unhedged price realization of $2.61 per MCFE for the quarter, which is a 45-cent premium over Henry Hub natural gas and a clear differentiator versus purely dry gas producers. When you combine our efficient operations, low capital intensity, and liquids revenue uplift, along with a thoughtful right-size hedge program, the output is another quarter of positive free cash flow, despite challenging natural gas prices. During the third quarter, Range invested $156 million, running two rigs and one completion crew, and placing us on track with our full-year capital guidance we've communicated. Range's third quarter production came in at 2.2 BCF equivalent per day, and we expect fourth quarter production will be near a similar level, resulting in an annual 2024 production of approximately 2.17 BCFE per day. This is roughly 30 million cubic feet per day above the previous midpoint of guidance and is the result of strong well performance and continued optimization of gathering and compression infrastructure that was mentioned during our last call. Range can maintain this higher level of production with just one electric frac clue. I think this message is worth repeating. Range can hold nearly 2.2 BCFE per day of net production flat with one completion crew. This is a true testament to both the quality of our asset base and the quality of the team, reflecting two decades of innovation and collaboration in the Marcellus between range and its service providers. While we are still finalizing our capital and production plans for 2025, we expect that running one continuous completions crew is a reasonable baseline from which we will be fine tuning our plans over the next few months. As has been the case for the last two years, running at this one crew activity level is slightly more than required for maintaining production, which we would consider as maintenance plus. This counter-cyclical investment provides range and operational tailwind for future periods as takeaway capacity becomes available in Appalachia and in-basin natural gas demand increases in the years ahead. When there is a fundamental call for additional production in the future, range will be able to generate a very efficient wedge of modest growth. Turning to marketing and focusing on NGLs, international demand and pricing for NGLs remain robust in the third quarter. leading to near-maximum U.S. export capacity utilization. Simultaneously, improving Panama Canal throughput access and a growing global fleet of LPG ships improved waterborne freight rates. These factors combine to drive export price premiums to new levels relative to the Montbellevue Index. As in prior quarters, Range's portfolio of transportation and sales contracts provided reliable access to these premium markets. Looking ahead to 2025, many of these dynamics are expected to remain in place as international demand for MGL products continues to grow, while U.S. Gulf Coast export capacity does not increase materially until the second half of 2025 and into 2026. This provides a constructive setup for ranges go forward price realizations and margins. I believe the last couple of years are positive proof that range is a business capable of generating free cash flow and returns through cycles. Like many of the listeners today, we see the demand for natural gas and NGOs increasing substantially in the years ahead. As one of the lowest cost producers in North America, we believe range is well positioned for thoughtful growth in the years ahead when called upon. Whether that's in the year ahead or beyond, In the long run, we believe Range's competitive full cycle cost structure and through cycle profitability provide a unique investment opportunity for long-term investors given our multi-decade inventory runway. I'll now turn it over to Mark to discuss the financials.