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    1. 1. Hart Energy Energy Capital Investment Symposium Jeffrey L. Ventura President & Chief Operating Officer June 3, 2009 RANGE Resources
    2. 2. <ul><li>Natural Gas Outlook </li></ul><ul><li>Range Overview & Strategy </li></ul><ul><li>Range Operations </li></ul>RANGE Resources
    3. 3. Natural Gas Outlook – How did we get here? <ul><li>NYMEX Spot Price </li></ul><ul><li>Since mid-year 2008, the spot price has fallen ~$10 per mcf! </li></ul><ul><li>Question – How much of the ~$10 drop is due to too much supply and how much is due to the drop in demand? </li></ul>$13.58 $3.91 Jul-08 Jun-09
    4. 4. Natural Gas Outlook – Supply Side is Correcting Data retrieved from EIA website www.eia.doe.gov <ul><li>It took 6.5 years for the rig count to double </li></ul><ul><li>It has taken just 7 months for the rig count to drop in half </li></ul><ul><li>Looks like the rig count is headed for ~ 600 </li></ul>Hurricane Edward Hurricane Ivan & George Hurricane Ike Hurricanes Katrina & Rita U.S. Dry Natural Gas Production EIA Natural Gas Rig Count Projected Natural Gas Rig Count
    5. 5. Natural Gas Outlook – Where is Supply Headed? If Rig Count Drops To Year 2009 Y-O-Y Impact Dec. ’09 Y-O-Y Exit Rate Impact 600 -3% -13% 700 -2% -11% 800 -1% -9%
    6. 6. Natural Gas Outlook – Price Rebound $13.58 – July 2008 NYMEX Spot Price $8.00 $7.00 $3.63 – March 2009 As the supply side corrects, gas prices will increase to the “marginal cost” of development
    7. 7. Natural Gas Outlook – Price Support
    8. 8. Natural Gas Outlook – Short Term Considerations <ul><li>The U.S. base decline is ~ 30% per year , equating to a ~ 15 Bcf decline per year </li></ul><ul><li>The rig count will not rebound materially until natural gas prices rise to the “marginal cost” to develop (~$7 - $8 per mcf) </li></ul><ul><li>Once natural gas prices move up and the rig count moves back up, it will likely take at least a year for production to stop declining </li></ul><ul><li>2009 capital budgets will continue to come down throughout the year and 2010 capital budgets will likely not increase materially as most companies’ hedges roll off at year-end 2009 </li></ul>
    9. 9. Natural Gas Outlook – Longer Term Considerations <ul><li>“ Clean Coal” technology is not commercial yet, it will take years and billions of dollars </li></ul><ul><li>The average coal fired electric generation plant in the northeast is ~50 years old </li></ul><ul><li>Essentially all new electric generation under consideration is natural gas fired </li></ul><ul><li>“ Cap and Trade” legislation will enhance the economics of natural gas versus coal </li></ul>Natural Gas vs. Coal
    10. 10. Natural Gas Outlook – Longer Term Considerations <ul><li>Natural gas has “natural” advantages over oil (foreign controlled, environmental) and coal (environmental) </li></ul><ul><li>Renewable energy is very expensive and will take many, many years to have a material impact </li></ul><ul><li>Nuclear – very long construction time, high upfront cost and NIMBY factor (Not In My Backyard) </li></ul><ul><li>“ Natural Gas… is an important transition fuel.  It has fewer CO2 emissions than either coal or oil, especially coal.” </li></ul><ul><ul><li>Al Gore (Meet the Press July 20, 2008) </li></ul></ul>
    11. 11. (1) As of December 31, 2008 <ul><li>Market Cap ~ $6 billion </li></ul><ul><li>Reserve base (1) </li></ul><ul><ul><li>2.7 Tcfe </li></ul></ul><ul><ul><li>83% natural gas </li></ul></ul><ul><ul><li>18 year reserve life </li></ul></ul><ul><li>Operations </li></ul><ul><ul><li>2009E – 500 (315 net) wells </li></ul></ul><ul><ul><li>15 rigs drilling </li></ul></ul><ul><li>Large acreage and drilling inventory (1) </li></ul><ul><ul><li>3.4 million acres (2.8 million net) </li></ul></ul><ul><ul><li>12,000+ drilling projects in inventory </li></ul></ul>Gulf Coast Southwest Appalachia Midcontinent Range Resources Overview Gulf Coast Nora Field Virginia 2.3 Tcfe resource potential 6,000+ wells to drill Marcellus Shale 15 to 22 Tcfe resource potential Fort Worth Barnett 1.8 Tcfe resource potential 1,000+ wells to drill (core)
    12. 12. Range Strategies <ul><li>Grow production and reserves (on a per share basis/debt adjusted) by double-digit rates at low costs (top quartile) </li></ul><ul><li>Grow primarily through the drill bit, complemented with low cost acquisitions and occasional divestitures of lower-growth properties </li></ul><ul><li>Maintain a simple capital structure </li></ul><ul><li>Target a debt to capital ratio of 40% </li></ul><ul><li>Hire the best people available and reward them with equity participation </li></ul>
    13. 13. Mmcfe/day 2003 2004 2005 2006 2007 2008 25 Consecutive Quarters of Production Growth 10% Year-Over-Year Growth Targeted for 2009 Consistent Growth 1Q09 Actual Guidance
    14. 14. Range – Low-Cost Producer BANK OF AMERICA - 2008 NYMEX BREAKEVEN ANALYSIS Companies include (in alphabetical order): Atlas, Berry, Brigham, Chaparral, Chesapeake, Cimarex, Clayton Williams, Comstock, Delta, Denbury, El Paso, Encore, Energy XXI, Exco, Forest, Helix, Mariner, McMoran, Newfield, Petrohawk, Petroquest, Pioneer, Plains, Quicksilver, Range Resources, SandRidge, Southwestern, Stone, Swift, Venoco, W&T, Whiting (mcfe) Range – 2 nd in 2007 and 2008, 1 st in 2004, 2005 & 2006 Median $8.03 Range Resources
    15. 15. Not Just Growing Production and Reserves … Range is Growing Production and Reserves Per Share, Debt Adjusted at Better than a 10% CAGR Production/share – debt adjusted Reserves/share – debt adjusted <ul><li>Production/share = Annual production divided by debt adjusted average diluted shares outstanding </li></ul><ul><li>Reserves/share = Year-end proven reserves, excluding price revisions, divided by debt adjusted fourth quarter average diluted shares outstanding </li></ul>mcfe mcfe
    16. 16. Range’s Reserve Base and Upside are Growing ( 1) Net unrisked resource potential <ul><li>Low-risk, multi-year drilling inventory has potential to more than double proved reserves </li></ul><ul><li>Drilling inventory and emerging plays potential is 8 to 10 times existing proved reserves </li></ul>Reserve Growth Drivers (Tcfe) YE 2004 YE 2005 YE 2006 YE 2007 YE 2008 Proved Reserves 1.2 1.4 1.8 2.2 2.7 Drilling Inventory (1) 1.0 1.4 2.0 3.1 3.7 Emerging Plays (1) 1.0 2.0 to 3.2 4.7 to 7.2 13.1 to 18.8 16.8 to 24.5 Unbooked Potential (1) 2.0 3.4 to 4.6 6.7 to 9.2 16.2 to 21.9 20.5 to 28.2
    17. 17. Emerging Plays Upside 16.8 to 24.5 Tcfe Play Net Acreage Net Unrisked Resource Potential Activity Marcellus Shale ~ 900,000 acres 15 to 22 Tcfe Drilling and leasing Huron Shale 165,000 acres 0.8 to 1.5 Tcfe Drilling FW Barnett Shale – Extension Areas 42,000 acres 200 Bcfe Drilling Woodford Shale – Ardmore Basin 17,000 acres 400 Bcfe Drilling Permian – Barnett and Woodford Shales and Atoka 20,000 acres 400 Bcfe Testing
    18. 18. Barnett – 1.8 Tcf Unbooked Potential <ul><li>96,000 net acres of leasehold </li></ul><ul><li>Production increasing – now 125 Mmcfe/d net </li></ul><ul><li>3 rigs running </li></ul><ul><li>42,000 net acres in the Core –1,000+ locations to drill </li></ul>SE TARRANT / NE JOHNSON / NW ELLIS / SW DALLAS COUNTIES SOUTHERN TARRANT COUNTY SE PARKER / NE HOOD COUNTIES
    19. 19. <ul><li>4 Bcf for $2.4 million cost </li></ul><ul><li>3,100 acres </li></ul><ul><li>30 wells drilled </li></ul><ul><li>19 wells to be drilled on 500 foot spacing </li></ul><ul><li>48 wells to be drilled on 250 foot spacing </li></ul><ul><li>5 wells to be completed </li></ul><ul><li>Recent well completed approximately 3 miles south – IP averaged a record 30-day rate of 9.6 Mmcfpd </li></ul>Low F&D / High ROR
    20. 20. Numerous Locations with F&D <$1.00 mcfe – E. Parker / Hood County <ul><li>Reduced cost to drill – 10 days from spud to rig release </li></ul><ul><li>Completed well cost $1.6 million </li></ul><ul><li>Average EUR- 2.5 Bcfe </li></ul><ul><li>F&D cost of $0.80/mcfe </li></ul><ul><li>59 locations on 1,000 foot spacing </li></ul><ul><li>135 locations on 500 foot spacing </li></ul>Parker Hood MITCHELL RANCH AREA (3,150 ACRES) 18 GAS COMPLETIONS 5 GAS WAITING ON COMPLETION 2 DRILLING 14 LOCATIONS AT 1,000’ SPACING 42 LOCATIONS AT 500’ SPACING CROCKET’S BOUNTY AREA (3,500 ACRES) 5 GAS COMPLETIONS 2 DRILLING 22 LOCATIONS AT 1,000’ SPACING 49 LOCATIONS AT 500’ SPACING TEAL AREA (2,600 ACRES) 23 LOCATIONS AT 1,000’ SPACING 44 LOCATIONS AT 500’
    21. 21. Barnett Shale Well Economics <ul><li>Core area – Tarrant, Denton, Johnson and NW Ellis Counties </li></ul><ul><li>EUR – 3.0 Bcf </li></ul><ul><li>Capital – $2.6MM </li></ul><ul><li>F&D – $1.14/mcfe </li></ul><ul><li>At $5.00 flat NYMEX generates 32% rate of return </li></ul>Gas Price, $/mmbtu NYMEX IRR
    22. 22. Nora/Haysi Field in Virginia VA <ul><li>~300,000 acres </li></ul><ul><li>Over 2,150 producing CBM & tight gas wells </li></ul><ul><li>6,000 additional wells to drill </li></ul><ul><li>F&D ~$1.00/mcfe </li></ul><ul><li>LOE ~$0.60/mcfe </li></ul><ul><li>Significant unbooked resource potential </li></ul>Nora Field
    23. 23. Nora Field – Multiple Horizon Potential CBM Tight Gas Sands Huron Shale Silurian / Ordovician Unbooked Resource Potential (Tcfe) .4 – .6 .1 – .2 .8 – 1.5 Total 1.3 – 2.3
    24. 24. Nora CBM Well Economics <ul><li>Southwest Virginia </li></ul><ul><li>EUR – 350 Mmcf </li></ul><ul><li>Capital – $340K </li></ul><ul><li>F&D – $0.88/mcfe </li></ul><ul><li>At $5.00 flat NYMEX generates 33% rate of return </li></ul>Gas Price, $/mmbtu NYMEX IRR
    25. 25. Marcellus – Largest Potential of all the Shales ALL Consulting, 2008 – Estimated U.S. shale gas-in-place resources
    26. 26. Making the Marcellus Real – Score Card <ul><li>Drilled more horizontal wells in the play than any other operator </li></ul><ul><li>Recorded terrific well results </li></ul><ul><ul><li>Record IP for horizontal well- 24.5 Mmcfed </li></ul></ul><ul><ul><li>Record IP for vertical well- 6.3 Mmcfed </li></ul></ul><ul><li>Well results have improved </li></ul><ul><ul><li>Last 10 horizontal wells brought online in 2008 had an average IP of 7.3 Mmcfed </li></ul></ul>
    27. 27. Marcellus Shale Terrain – SW Pennsylvania <ul><li>Sparsely populated </li></ul><ul><li>Gently rolling hills </li></ul><ul><li>Good road access </li></ul><ul><li>Good water access </li></ul>Excellent Area for Development
    28. 28. Marcellus Shale Well Economics <ul><li>Southwestern Pennsylvania – wet gas case </li></ul><ul><li>EUR – 3.5 Bcfe </li></ul><ul><li>Capital $3.5MM </li></ul><ul><li>F&D – $1.16/mcfe </li></ul><ul><li>NYMEX Price/Rate of return (1) </li></ul>Gas Price, $/mmbtu NYMEX IRR (1) Includes gathering, pipeline and processing costs $4.00 - 34% $5.00 - 46% $6.00 - 60% $7.00 - 75%
    29. 29. Marcellus Economics are “Best of Class” <ul><li>Low Finding Costs </li></ul><ul><li>Best Wellhead Gas Price </li></ul><ul><li>Attractive Lease Terms </li></ul>$1.16 per Mcfe Positive basis differentials Low royalties and longer term leases
    30. 30. “ Pennsylvania looks like a hell of a play … it has tremendous potential” George Mitchell, Founder of the Barnett Shale “ The Marcellus Shale may ultimately become the largest natural gas field in the U.S.” Chesapeake Energy “…… Marcellus ends up being the best rate of return.” XTO Energy “ ..the Marcellus appears to have the lowest breakeven costs of any of the major U.S. Shale plays.” Simmons & Co. International Marcellus Shale – What Others are Saying
    31. 31. Making it Real for Range’s Shareholders <ul><li>We estimate our current Marcellus position has 22 Tcf of unrisked resource potential ( 8 times our current proved reserves) </li></ul><ul><li>Our goal for 2009 is to more than double Range’s net production from the Marcellus </li></ul><ul><li>Our goal for 2010 is to double production again </li></ul>As the leader in the Marcellus, we are extremely well-positioned to drive up production and reserves at low cost for many years to come
    32. 32. <ul><li>Proven Track Record </li></ul><ul><ul><li>Consistent in growing reserves and production </li></ul></ul><ul><ul><li>Disciplined low cost producer </li></ul></ul><ul><ul><li>Focused on growing per share value </li></ul></ul><ul><li>Transparent, Low Risk Growth Profile </li></ul><ul><ul><li>Stable, long life reserve base </li></ul></ul><ul><ul><li>Large drilling inventory of low cost projects </li></ul></ul><ul><li>Strong Financial Position </li></ul><ul><ul><li>Simple balance sheet with no debt maturities until 2012 </li></ul></ul><ul><ul><li>Significant liquidity and bank credit capacity </li></ul></ul><ul><li>Substantial Upside Potential </li></ul><ul><ul><li>Resource potential is 8 to 10 times current proved reserves </li></ul></ul><ul><ul><li>Multiple plays provide multiple ways to win </li></ul></ul><ul><ul><li>Economics work in a low price environment </li></ul></ul>Why Own Range in the Current Environment?
    33. 33. Forward-Looking Statements Statements concerning future capital expenditures, production volumes, reserve volumes, reserve values, resource potential, number of development and exploration projects, finding costs, operating costs, overhead costs, cash flow and earnings are forward-looking statements. These statements are based on assumptions concerning commodity prices, recompletions and drilling results, lease operating expenses, administrative expenses, interest and other financing costs that management believes are reasonable based on currently available information; however, management’s assumptions and the Company’s future performance are both subject to a wide range of business risks and there is no assurance that these results, goals and projections can or will be met. This presentation includes certain non-GAAP financial measures. Reconciliation and calculation schedules for the non-GAAP financial measures can be found on our website at www.rangeresources.com. The SEC has generally permitted oil and gas companies, in their filings made with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation test to be economically and legally producible under existing economic and operating conditions. We use the terms “resource”, “potential” or “upside” or other descriptions of volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SEC’s guidelines may prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized by the company.