Range Resources July 2025 presentation: Three-year growth plan targets 20% production increase

Introduction & Market Context

Range Resources Corp (NYSE:RRC) presented its corporate overview on July 23, 2025, outlining its strategic positioning as a pure-play Appalachian producer with substantial natural gas and natural gas liquids (NGLs) reserves. The presentation comes after the company reported strong Q1 2025 results, with earnings per share of $0.96 exceeding analyst expectations of $0.90, despite revenue falling short at $690.6 million versus forecasted $787.78 million.

The company positions itself as a top 10 U.S. producer of natural gas and NGLs, emphasizing its 30+ years of core Marcellus inventory and ability to generate durable free cash flow while maintaining a strong balance sheet. With natural gas prices currently trading around $35.30 per share, up 1.02% as of the presentation date, Range is highlighting its capacity to deliver value through commodity cycles.

As shown in the following overview of Range Resources’ key attributes:

Strategic Growth Plan

Range Resources detailed an ambitious three-year growth plan that aims to increase production by approximately 20% through 2027 while maintaining a reinvestment rate below 50% at $3.75 NYMEX natural gas prices. The company’s extensive Marcellus inventory serves as the foundation for this growth strategy, with over 28 million lateral feet of undrilled Marcellus inventory that breaks even under $2.50 per Mcf.

The following map illustrates Range’s extensive acreage position in the Appalachian Basin, highlighting its core operations in Southwest Pennsylvania (~440,000 net acres) and Northeast Pennsylvania (~70,000 net acres):

A key component of Range’s strategy is its diversified market access, which allows the company to optimize pricing for its natural gas and NGL production. The company has established transportation routes to multiple end markets, including the Midwest, Northeast, Gulf Coast, and export markets.

The following map shows Range’s global sales portfolio and market diversification:

Financial Performance and Outlook

Range Resources has demonstrated consistent free cash flow generation despite commodity price volatility. The company reported free cash flow of $656 million in 2021, $1,580 million in 2022, $513 million in 2023, and $453 million in 2024. For 2025, Range provided sensitivity analysis showing projected free cash flow at various natural gas price points.

The following chart illustrates Range’s historical free cash flow performance and 2025 projections:

Looking ahead to 2025-2027, Range expects to generate approximately $2.5 billion in cumulative free cash flow while growing production by about 400 MMcfe per day. The company plans annual capital expenditures of $650-700 million during this period, maintaining a reinvestment rate below 50% at $3.75 natural gas prices.

The three-year outlook is detailed in the following chart:

This growth strategy is expected to support increasing capital returns to shareholders through dividends and share repurchases. In Q1 2025, the company reported generating $183 million in free cash flow, enabling it to pay $22 million in dividends and invest $68 million in share repurchases while reducing net debt by $42 million.

The following chart shows Range’s projected capital allocation and shareholder returns:

Range Resources also highlighted its attractive valuation metrics compared to peers, emphasizing its compelling free cash flow yield at various natural gas price points.

The following chart illustrates Range’s valuation metrics:

Natural Gas Market Fundamentals

Range’s growth strategy is underpinned by strong natural gas demand fundamentals. The company projects significant natural gas demand growth through 2030, driven primarily by LNG exports, industrial demand, and power generation needs, particularly from data centers.

The following chart shows the projected natural gas demand growth drivers:

Specifically in the Appalachian region, Range expects demand to grow by approximately 5-8 Bcf/d through 2030, supported by data centers, industrial demand, and coal plant retirements.

The following chart details the improving Appalachian demand fundamentals:

ESG Initiatives

Range Resources emphasized its environmental leadership, highlighting its achievement of Net Zero for 2024 Scope 1 and 2 GHG emissions. The company has reduced methane emissions intensity by 83% since 2019 and received an "A" grade through MiQ certification for its Pennsylvania assets.

The following slide details Range’s environmental performance:

Forward-Looking Statements

Range Resources provided 2025 guidance of 2.2 Bcfe production per day with capital expenditures of $650-680 million. The company noted that its production is expected to dip slightly in Q2 2025 due to maintenance activities before increasing in the latter half of the year.

CEO Dennis Degner expressed optimism about the future, stating, "We think the future of natural gas in NGLs is strong," while CFO Mark Skuchy emphasized the company’s operational flexibility, noting that "Range can very efficiently add wedges of growth as the market calls for it."

With a strong balance sheet (leverage below 1x Debt/EBITDAX), extensive inventory of low-breakeven wells, and diversified market access, Range Resources appears well-positioned to execute its growth strategy while delivering returns to shareholders. However, investors should consider potential risks including production disruptions, natural gas price volatility, and competition from other energy producers when evaluating the company’s forward-looking projections.

Full presentation:

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