Range Resources Corporation

Hello, welcome to the Range Resources second quarter 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. Statements made during this conference call that are not historical facts are forward-looking statements. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements. After the 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. Sir, please go ahead.

Thank you, operator. Good morning, everyone, and thank you for joining Range's second quarter 2026 earnings call. The speakers on today's call are Dennis Degner, Chief Executive Officer, and Mark Scucchi, Chief Financial Officer. Hopefully you've had a chance to review the press release and updated investor presentation that we've posted on our website. We may reference certain slides on the call this morning. You 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, Thanks, Laith, and thanks to all of you for joining the call today. Today marks a unique milestone as we reach the midpoint of our multi-year growth plan that was announced early last year.

Ray's results today continue to showcase the durability of the business as a leading full cycle cost structure, consistent well performance, and a differentiated marketing portfolio are delivering significant free cash flow while growing the business. At the same time, we are seeing operational efficiencies accruing to range as a result of our large blocky acreage position and talented technical teams. This quarter's record operational results support Range's peer leading drilling and completion costs that will benefit Range shareholders for decades to come. Looking at the results for the second quarter, efficient operations in the field and strong well performance drove production of 2.3 BCF equivalent per day. Consistent with our previous calls, Range expects production to continue to radically increase across the remainder of the year. underpinned by gas processing and related infrastructure that is in the early phases of commissioning. This will push production to 2.5 BCF equivalent per day by year end and is consistent with our previous guidance and setting us up well for 2027 and strengthening natural gas fundamentals. Capital for the quarter came in at $222 million. as we added a second completion crew to begin working through a portion of the drilled, uncompleted inventory we had built up over the previous 24 months. The second quarter also included a spot horizontal rig that was added for a single pad development that will turn to sales later this year. We expect to return to a single horizontal rig and single frac crew operation for the fourth quarter, putting our capital plans right on track with prior guidance. With the activity mentioned earlier, we drilled approximately 190,000 lateral feet during the second quarter. Continuing the operational momentum reported during the prior quarter, the team had 19 days where they drilled over a mile in the horizontal, with one of those 24-hour periods exceeding 10,500 feet. This level of operational efficiency advancement continues to reflect the team's ongoing hard work and DRIVE to deliver on peer leading drilling and completion cost per foot after over two decades of activity. Moving to completions, the team achieved the best quarterly performance in range history utilizing the two frac crews I mentioned previously. Combined, the two crews completed nearly 1,900 frac stages, including downtime for moving between pad sites This equates to completing over 10 stages per day per crew or an annualized rate of over 750,000 lateral feet for a single crew. And when looking at our base contracted electric frac fleet, efficiencies were nearly 14 stages per day. Additional completion records by the team for the second quarter included the most frac stages performed in one day for a single crew at 20, and the highest pumping hours in one day at 22 hours. To achieve these records, the logistics management team kept pace, ensuring execution remained on track. I'd like to congratulate our team on reaching these levels of operational efficiency while doing so safely. To accommodate this increased completion activity and efficiencies, We have moved a portion of our second half 2026 drilling activity into 2027. This sequencing keeps us right on line with the 2026 and 2027 capital spending and development plans we have discussed previously. Now shifting over to marketing. The ongoing disruption of global energy supply has showcased America's and range's ability to respond to ever changing global supply and demand balances. We believe this period has once again highlighted the United States' pivotal role in providing energy supply to the world. The ongoing build out of LNG and NGL infrastructure to supply export markets has positioned the country to continue to meet this demand going forward, all while providing abundant, affordable energy to American residents, as well as commercial and industrial customers. As we expected going into the second quarter, U.S. exports of LNG, ethane, and LPG delivered tremendous growth relative to the same time period last year. For natural gas, LNG feed gas in the second quarter averaged over 17 BCF per day, or 17% higher compared to the same time period in 2025. We expect this momentum to be carried forward into 2027 and beyond as additional construction is completed. For natural gas liquids, U.S. waterborne ethane exports were estimated at 658,000 barrels per day for the second quarter, which is up 40% year-on-year and set a record high in June of nearly 750,000 barrels per day. For propane and butane, waterborne exports reached over 2.6 million barrels per day, which is also up 19% versus the first quarter and 30% higher year-on-year. LPG exports are expected to grow further into 2027 as an additional 360,000 barrels per day of LPG capacity becomes available via two new terminals early in the new year. Looking ahead, we expect growing U.S. exports across natural gas, NGLs, and crude oil to strengthen domestic market fundamentals and support pricing across the products range produces. Through the first half of this year, our marketing team has successfully navigated this rapidly evolving global market and capitalized on opportunities to generate incremental cash flow. As we emphasized during our first quarter call, Range's access to international markets for ethane, propane, and butane continues to generate differentiated margins for Range's NGLs. Our marketing team capitalized on strong international prices through the flexibility built into our export program, supporting another strong NGL premium of $3.49 per barrel over the Mont Bellevue index for the second quarter. While international netbacks have normalized since June, Rain still expects to capture premiums to Mont Bellevue in the coming quarters, given our proximity to Europe and the price structures embedded within our physical sales agreements. As a result, we have improved our full-year NGL guidance to $2.50 per barrel over the Montbellevue Index. At the same time, we are improving our full-year natural gas guidance to $0.35 to $0.40 per MCF versus Henry Hub, reflecting a strong start to the year. As we enter the second half of our multi-year growth plan, we are excited about how the company is positioned. with financial and operational flexibility that allows us to efficiently align production growth with known demand while generating free cash flow and returning capital to shareholders. We believe our robust inventory and relatively low capital intensity provides range a differentiated foundation for generating through cycle returns for our investors. I'll now turn it over to Mark to discuss the financials.