Range Resources July 2025 slides: 20% production growth targeted with $2.5B FCF

Introduction & Market Context

Range Resources Corp (NYSE:RRC) released its July 2025 investor presentation outlining the company’s strategic position as a pure-play Appalachian natural gas producer with significant growth potential. Currently trading at $35.99, down 2.65% in the latest session, Range is positioning itself to capitalize on increasing natural gas demand both domestically and internationally while maintaining financial discipline.

The presentation comes after Range reported steady Q2 2025 production of 2.2 billion cubic feet equivalent (Bcfe) per day, with expectations to reach 2.3 Bcfe per day by Q4 2025. The company’s strategic focus remains on its extensive Marcellus Shale position, which it believes provides a competitive advantage in the evolving natural gas market.

Strategic Position and Growth Plans

Range Resources identifies itself as a top 10 U.S. producer of natural gas and natural gas liquids (NGLs) with a pure-play focus on the Appalachian Basin. The company emphasizes its extensive inventory and operational efficiency as key differentiators in the market.

As shown in the following overview of Range’s strategic positioning:

The company’s core asset is its extensive Marcellus acreage, with approximately 70,000 net acres in Northeast Pennsylvania and 440,000 net acres in Southwest Pennsylvania. Range estimates it has over 30 years of high-quality Marcellus inventory, with 28 million lateral feet of undrilled Marcellus at year-end 2024. Notably, the company claims that more than 30 years of this inventory breaks even at natural gas prices below $2.50/MMBtu.

The following map and breakeven analysis illustrates Range’s core inventory position:

Range plans to grow production by approximately 20% through 2027 while maintaining a reinvestment rate below 50% at $3.75 NYMEX natural gas prices. This growth strategy is supported by the company’s peer-leading capital efficiency and large contiguous acreage position, which Range claims enables more efficient operations and lower well costs.

Financial Outlook and Capital Allocation

Range Resources highlights its history of generating free cash flow through commodity cycles, with historical free cash flow of $656 million in 2021, $1,580 million in 2022, $513 million in 2023, and $453 million in 2024. The company’s Q2 2025 earnings report confirmed capital expenditure of $154 million for the quarter and $300 million year-to-date, aligning with the company’s disciplined capital approach.

The following chart illustrates Range’s historical free cash flow generation:

Looking forward, Range projects cumulative free cash flow of approximately $2.5 billion from 2025 through 2027, based on annual capital expenditures of $650-$700 million. The company’s 2025 capital budget is set at $650-$680 million, which includes approximately $520 million for maintenance capital, $80-$100 million for future growth, $20-$30 million for pneumatic devices and other environmental initiatives, and approximately $30 million for incremental land acquisition.

The company’s three-year outlook shows increasing EBITDAX and free cash flow through 2027:

Range emphasizes its low reinvestment rate, which it expects to remain below 50% at $3.75 NYMEX natural gas prices while still growing production. This capital efficiency is intended to support increased shareholder returns through dividends and share repurchases. In Q2 2025, Range repurchased $53 million in shares and paid $21 million in dividends, bringing year-to-date returns to shareholders to $163 million.

The following chart shows Range’s projected cash flow allocation and reinvestment rate:

Competitive Industry Position

Range Resources positions itself as having compelling free cash flow generation and attractive valuation metrics compared to peers and other sectors. The company highlights its 2025 free cash flow yield and 2026 EV/EBITDA multiple as being favorable relative to sector medians.

The following comparative analysis illustrates Range’s valuation metrics:

Range’s market strategy involves diversifying its sales portfolio across multiple end markets for both natural gas and NGLs. Approximately 30% of the company’s natural gas is sold to the Midwest, 20% to local and Northeast markets, and 25% to the Gulf Coast. This diversification is designed to optimize pricing and reduce market risk.

The company’s sales diversification strategy is illustrated in the following map:

Market Fundamentals and Growth Drivers

Range Resources’ presentation emphasizes strong fundamentals for natural gas demand growth, particularly from LNG exports, power generation, and industrial uses. The company notes that the U.S. became the world’s largest LNG exporter in 2023, with exports growing from virtually zero in 2015 to approximately 15 Bcf/d in early 2025.

The following chart shows the growth in global LNG exports and the increasing role of U.S. LNG in European gas supply:

Range projects total U.S. natural gas demand growth of approximately 27 Bcf/d through 2030, driven by increased exports, electric power demand, and industrial consumption. The company highlights the role of natural gas in reducing emissions by displacing coal in power generation, with approximately 12 Bcf/d of coal generation remaining to be displaced in the U.S. and significant global potential.

The projected natural gas demand growth is illustrated in the following chart:

Range also emphasizes growing power demand, particularly from data centers, as a key driver for natural gas consumption. The company notes that PJM (the regional transmission organization that coordinates electricity in 13 states) has revised its load forecast higher, with approximately 50 GW of growth projected by 2030, which could support increased natural gas demand.

Environmental Leadership

Range Resources highlights its environmental achievements, including achieving net zero for Scope 1 and 2 greenhouse gas emissions in 2024, receiving an "A" grade through MiQ certification for its Pennsylvania assets, and reducing methane emissions intensity by 83% since 2019.

The company also emphasizes its water management practices, noting that it recycled more than 100% of produced water volume in 2024 through its water recycling and sharing program, with 56% of total water used for operations coming from reuse water.

The following chart illustrates Range’s environmental performance:

Forward-Looking Statements

Range Resources’ presentation outlines a positive outlook for both the company and the natural gas industry. The company projects production growth of approximately 20% through 2027 while generating approximately $2.5 billion in cumulative free cash flow during the same period. This aligns with the projection mentioned in the recent earnings call of generating $2-$2.5 billion in free cash flow over the next three years.

CEO Dennis Degner has emphasized the economic and environmental advantages of Pennsylvania natural gas, while CFO Mark Scucchi noted that Range is "among a small group of companies well positioned to provide the market’s required surety of supply."

However, investors should note potential risks, including volatility in natural gas prices, regulatory changes affecting operational costs, supply chain disruptions, and macroeconomic factors like inflation that could impact operational expenses.

With a current market capitalization of approximately $8.55 billion and trading at a P/E ratio of 18.11x, Range Resources is positioning itself as a disciplined growth company in the natural gas sector, with a focus on capital efficiency, environmental leadership, and shareholder returns.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.