GlobeNewswire Inc | Aug 3, 2020 05:00PM EDT

August 03, 2020

FORT WORTH, Texas, Aug. 03, 2020 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its second quarter 2020 financial results.

Second Quarter Highlights

-- Well costs averaged less than $600 per lateral foot, including facility costs, the lowest in Appalachia -- Transportation, gathering, processing and compression expense improved $0.15 per mcfe, or 10% versus prior year -- Direct operating expense improved $0.05 per mcfe, or 31% versus prior year -- G&A expense (before certain items) improved $0.05 per mcfe, or 28% versus prior year -- Production taxes improved $0.02 per mcfe, or 40% versus prior year -- Interest expense improved $0.02 per mcfe, or 8% versus prior year -- DD&A expense improved $0.19 per mcfe, or 28% versus prior year -- Total cash unit costs improved $0.29 per mcfe, or 14% versus prior year -- Production averaged 2,349 Mmcfe per day, approximately 71% natural gas -- Repurchased approximately$47 millionof outstanding notes principal at an average 20% discount to par -- In July, signed purchase and sale agreement to divest North Louisiana assets for gross proceeds of $245 million, plus an additional $90 million contingent on future commodity prices

Commenting on the quarter, Jeff Ventura, the Companys CEO said, Range continued to make steady progress in the second quarter - significantly improving our cost structure, operating safely, and methodically developing our core asset with peer-leading well costs and capital efficiency. After the sale of our North Louisiana assets, Ranges cost structure and capital productivity will take another meaningful step forward, driven by material improvements in our cash unit costs and a base decline solidly under 20%. Our shallow base decline and peer leading well costs provide Range a sustaining capital requirement per mcfe that we believe is the lowest amongst peers, providing us a solid foundation for generating corporate returns. In 2020, we expect Range to reduce total debt outstanding for the third consecutive year in a row, reflecting our commitment to disciplined capital allocation and a strong balance sheet. Range remains well-positioned to successfully navigate the current commodity environment and benefit from an improved outlook for natural gas and natural gas liquids, particularly given Ranges industry-leading inventory of core natural gas and liquids wells.

Financial Discussion

Except for generally accepted accounting principles (GAAP) reported amounts, specific expense categories exclude non-cash impairments, unrealized mark-to-market adjustment on derivatives, non-cash stock compensation and other items shown separately on the attached tables. Unit costs as used in this release are composed of direct operating, transportation, gathering, processing and compression, production and ad valorem taxes, general and administrative, interest and depletion, depreciation and amortization costs divided by production. See Non-GAAP Financial Measures for a definition of each of the non-GAAP financial measures and the tables that reconcile each of the non-GAAP measures to their most directly comparable GAAP financial measure.

GAAP revenues for second quarter 2020 totaled$377 million, GAAP net cash provided from operating activities (including changes in working capital) was$79 million, and GAAP earnings was a loss of $147 million ($0.61per diluted share).

Non-GAAP revenues for second quarter 2020 totaled$502 million, and cash flow from operations before changes in working capital, a non-GAAP measure, was$81 million. Adjusted earnings comparable to analysts estimates, a non-GAAP measure, was a loss of $25 million($0.10per diluted share) in second quarter 2020.

North Louisiana Asset Sale

Subsequent to June 30, Range signed a purchase and sale agreement to divest the Companys North Louisiana assets for gross proceeds of $245 million, with the potential for $90 million in additional proceeds contingent on future commodity prices. At the time of the sale, the assets were producing approximately 160 Mmcfe per day, and Range did not have any drilling and completion activity planned for the assets this year. Per the agreement, Range will retain certain commitments through their remaining term. Range intends to use $28.5 million of the sale proceeds to reduce a portion of the retained commitments. The transaction is expected to close in August with an effective date of February 1, 2020.

Capital Expenditures

Second quarter 2020 drilling and completion expenditures were $99 million. In addition, during the quarter, a combined $5 million was spent on acreage and gathering systems. Total year-to-date expenditures were $235 million at the end of the second quarter. Well costs, including all facilities, averaged less than $600 per foot in the second quarter, the lowest normalized well costs in Appalachia. Range remains on track to spend at or below its total capital budget of $430 million for 2020.

Financial Position and Buyback Activity

At the end of the second quarter, Range had $639 million drawn on its revolver and over $1.4 billion of additional borrowing capacity under the commitment amount. Range expects its $3.0 billion borrowing base to be unchanged following the sale of its North Louisiana assets. Following the planned closing on the Companys North Louisiana asset sale in August, Ranges liquidity is expected to exceed $1.6 billion.

Range repurchased and retired approximately$47 millionin principal amount of its senior and subordinated notes during the second quarter at a weighted average discount to par of 20%. Range also repurchased 200,000 shares of the Companys common stock during the second quarter at an average price of $2.22 per share. In total, Range has repurchased $360 million in debt principal at a discount and ten million shares since second half 2019.

Unit Costs and Pricing

The following table details Ranges unit costs per mcfe(a):

2Q 2QExpenses 2020 2019 Increase ($/ ($/ (Decrease) Mcfe) Mcfe) Direct operating^(a) $ 0.11 $ 0.16 (31%)Transportation, gathering, processing 1.30 1.45 (10%)and compressionProduction and ad valorem taxes 0.03 0.05 (40%)General and administrative (G&A)^(a) 0.13 0.18 (28%)Interest expense^(a) 0.22 0.24 (8%)Total cash unit costs^(b) 1.79 2.08 (14%)Depletion, depreciation and 0.49 0.68 (28%)amortization (DD&A)Total unit costs plus DD&A^(b) $ 2.28 $ 2.76 (17%)

(a) Excludes stock-based compensation, legal settlements and amortization of deferred financing costs.(b) May not add due to rounding.

The following table details Ranges average production and realized pricing for second quarter 2020:

2Q20 Production & Realized Pricing Natural Natural Gas NGLs Oil Gas (Mcf) (Bbl) (Bbl) Equivalent (Mcfe)Net Production per day 1,660,743 106,772 7,913 2,348,856 Average NYMEX price $1.72 $27.09 Differential, including basis (0.31) hedging (12.28)Realized prices before NYMEX 1.41 $12.80 14.81 hedgesSettled NYMEX hedges 0.61 0.71 30.21 Average realized prices after $ 2.02 $ 13.51 $ 45.03 $ 2.19hedges ^(a)

(a) May not add due to rounding.

Second quarter 2020 natural gas, NGLs and oil price realizations (including the impact of derivative settlements which correspond to analysts estimates) averaged $2.19 per mcfe. Additional detail on commodity price realizations can be found in the Supplemental Tables provided on the Companys website.

-- The average natural gas price, including the impact of basis hedging, was $1.41 per mcf, or a ($0.31) differential to NYMEX. In the second quarter, Range sold additional natural gas volume in Appalachia following a pipeline outage in May that affected a portion of Ranges transportation to the Gulf Coast. This minor impact to differentials was offset by lower gas transportation expense in the quarter. -- Pre-hedge NGL realizations were $12.80 per barrel, or a $0.37 per barrel premium to the Mont Belvieu weighted barrel and approximately 47% of WTI (West Texas Intermediate). Lower NGL prices in the second quarter were partially offset by lower processing costs. -- Crude oil and condensate price realizations, before realized hedges, averaged $14.81 per barrel, or $12.28 below WTI. Condensate pricing in the second quarter was impacted by weakness in regional demand. However, regional condensate demand has increased following the second quarter, and Range expects differentials and fundamentals to improve in second half 2020. As a result, Range deferred some liquids-rich activity into second half 2020 and its Appalachia condensate production is expected to increase versus the second quarter.

Operational Discussion

The table below summarizes estimated activity for 2020 regarding the number of wells to sales for each area.

Wells TIL Calendar 2020 Remaining 2Q 2020 Planned TIL 2020SW PA Super-Rich 0 3 3SW PA Wet 6 31 13SW PA Dry 15 33 10Total Wells 21 67 26

Production by Area

Total production for second quarter 2020 averaged approximately 2,349 net Mmcfe per day. The southwest Appalachia area averaged 2,083 net Mmcfe per day during the quarter, a 6% increase over second quarter 2019. The northeast Marcellus properties averaged 86 net Mmcf per day and North Louisiana production during second quarter 2020 averaged approximately 179 net Mmcfe per day. Second quarter 2020 North Louisiana production includes the benefit of one-time land and legal adjustments as part of the divestiture process.

Marketing and Transportation

During the quarter, Range sold additional natural gas volume in Appalachia following a third-party pipeline outage in early May affecting a portion of Ranges transportation that takes natural gas to the Gulf Coast. This had a minor impact to natural gas differentials during the quarter and was mostly offset by lower gas transportation expense. Range continues to benefit from its diverse set of natural gas transportation outlets as unexpected events in any one market do not materially impact the overall portfolio.

Domestic U.S. natural gas production declined significantly during the quarter, led by associated gas shut-ins and legacy basin declines in response to the price of both oil and natural gas. Range expects recently announced activity reductions for the industry to weigh on second half 2020 production levels, more than offsetting the return of shut-in production, while LNG export demand recovers from current levels. Evidenced by one of the lightest 2021 hedge positions among natural gas producers, Range anticipates that a sustained move higher in the forward curve for natural gas is needed to incentivize activity from dry gas producing basins to avoid extremely low storage levels next year.

As previously disclosed, entering second quarter, demand for gasoline and jet fuel were directly impacted by COVID-19 related reductions in vehicle and air travel. The abrupt change in demand put temporary pressure on condensate pricing during the quarter. Production and sales were unaffected as Ranges marketing team found domestic or international outlets for all products. The Northeast condensate market began to rebound in the months of June and July, with substantial improvements in pricing, pointing to a better second half of the year.

Range experienced healthy NGL demand during the second quarter as a result of its strong and diverse customer base as well as a flexible transportation portfolio that allows access to multiple domestic and international markets. The Company increased its access to waterborne exports via Mariner East and Marcus Hook during the second quarter, where LPG export premiums at Marcus Hook have remained stable at a few cents per gallon above Mont Belvieu index. Range expects NGL and condensate fundamentals to continue strengthening during the second half of 2020, as a lack of U.S. drilling and completions activity is expected to result in declining supply while demand continues to recover. Ranges liquids-weighted activity during the balance of 2020 is set to take advantage of this improving macro environment for both condensate and NGL pricing.

Guidance 2020

Production per day Guidance

Production for full-year 2020 is expected to average approximately 2.25 Bcfe per day, reflecting adjustments associated with the sale of North Louisiana assets. Full-year 2020 Appalachia production is expected to average approximately 2.15 Bcfe per day.

Full Year 2020 Expense Guidance

Prior Guidance Updated GuidanceDirect operating expense: $0.14 - $0.16 $0.11 - $0.13 per mcfe per mcfeTransportation, gathering, processing and $1.37 - $1.40 $1.32 - $1.36compression expense: per mcfe per mcfeProduction tax expense: $0.04 - $0.05 $0.03 - $0.04 per mcfe per mcfeExploration expense: $30 - $38 $28 - $34 million millionG&A expense: $0.14 - $0.16 $0.14 - $0.15 per mcfe per mcfeInterest expense: $0.22 - $0.24 $0.22 - $0.24 per mcfe per mcfeDD&A expense: $0.48 - $0.52 $0.48 - $0.52 per mcfe per mcfeNet brokered gas marketing expense: $10 - $16 $10 - $16 million million

Full Year 2020 Price Guidance

Based on current market indications and the anticipated sale of Ranges North Louisiana assets in August, Range expects to average the following price differentials for its production in 2020.

Prior Guidance Updated GuidanceNatural Gas:^(1) NYMEX minus $0.20 to $0.26 NYMEX minus $0.22 to $0.28Natural Gas Mont Belvieu plus $0.50 to Mont Belvieu plus $0.50 toLiquids:^(2) $1.50 per bbl $1.50 per bblOil/Condensate: WTI minus $8.00 to $9.00 per WTI minus $8.00 to $10.00 per bbl bbl

(1) Including basis hedging. (2) Weighting based on 53% ethane, 27% propane, 7% normal butane, 4% iso-butane and 9% natural gasoline.

Hedging Status

Range hedges portions of its expected future production to increase the predictability of cash flow and to help maintain a more flexible financial position. Range has over 70% of its remaining 2020 natural gas production hedged at a weighted average floor price of $2.57 per Mmbtu. Similarly, Range has hedged over 80% of its remaining 2020 projected crude oil production at an average floor price of $58.12. Please see Ranges detailed hedging schedule posted at the end of the financial tables below and on its website at www.rangeresources.com.

Range has also hedged Marcellus and other natural gas basis to limit volatility between NYMEX and regional prices. The fair value of basis hedges was a loss of $4.5 million as of June 30, 2020. The Company also has propane basis swap contracts and freight swaps which lock in the differential between Mont Belvieu and international propane indices. The combined fair value of these contracts was a loss of $4.0 million at June 30, 2020.

Conference Call InformationA conference call to review the financial results is scheduled on Tuesday, August 4 at 9:00 a.m. ET. A webcast of the call may be accessed at www.rangeresources.com. The webcast will be archived for replay on the Company's website until September 4, 2020.

To participate in the call, dial 877-928-8777 and provide conference code 1543996 about 15 minutes prior to the scheduled start time.

Non-GAAP Financial Measures

Adjusted net income comparable to analysts estimates as set forth in this release represents income or loss from operations before income taxes adjusted for certain non-cash items (detailed in the accompanying table) less income taxes. We believe adjusted net income comparable to analysts estimates is calculated on the same basis as analysts estimates and that many investors use this published research in making investment decisions and evaluating operational trends of the Company and its performance relative to other oil and gas producing companies. Diluted earnings per share (adjusted) as set forth in this release represents adjusted net income comparable to analysts estimates on a diluted per share basis. A table is included which reconciles income or loss from operations to adjusted net income comparable to analysts estimates and diluted earnings per share (adjusted). The Company provides additional comparative information on prior periods along with non-GAAP revenue disclosures on its website.

Cash flow from operations before changes in working capital (sometimes referred to as adjusted cash flow) as defined in this release represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items. Cash flow from operations before changes in working capital is widely accepted by the investment community as a financial indicator of an oil and gas companys ability to generate cash to internally fund exploration and development activities and to service debt. Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity. A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release. On its website, the Company provides additional comparative information on prior periods for cash flow, cash margins and non-GAAP earnings as used in this release.

The cash prices realized for oil and natural gas production, including the amounts realized on cash-settled derivatives and net of transportation, gathering, processing and compression expense, is a critical component in the Companys performance tracked by investors and professional research analysts in valuing, comparing, rating and providing investment recommendations and forecasts of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Due to the GAAP disclosures of various derivative transactions and third-party transportation, gathering, processing and compression expense, such information is now reported in various lines of the income statement. The Company believes that it is important to furnish a table reflecting the details of the various components of each line in the statement of operations to better inform the reader of the details of each amount and provide a summary of the realized cash-settled amounts and third-party transportation, gathering, processing and compression expense which were historically reported as natural gas, NGLs and oil sales. This information is intended to bridge the gap between various readers understanding and fully disclose the information needed.

The Company discloses in this release the detailed components of many of the single line items shown in the GAAP financial statements included in the Companys quarterly report on Form 10-Q. The Company believes that it is important to furnish this detail of the various components comprising each line of the Statements of Operations to better inform the reader of the details of each amount, the changes between periods and the effect on its financial results.

RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused instacked-pay projects in the AppalachianBasin. The Company pursues an organic development strategy targeting high return, low-cost projects within its large inventory of low risk development drilling opportunities. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com.

Included within this release are certain forward-looking statements within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not limited to historical facts, but reflect Ranges current beliefs, expectations or intentions regarding future events. Words such as may, will, could, should, expect, plan, project, intend, anticipate, believe, outlook, estimate, predict, potential, pursue, target, continue, and similar expressions are intended to identify such forward-looking statements.

All statements, except for statements of historical fact, made within regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as those regarding future well costs, expected asset sales, well productivity, future liquidity and financial resilience, anticipated exports and related financial impact, NGL market supply and demand, improving commodity fundamentals and pricing, future capital efficiencies, future shareholder value, emerging plays, capital spending, anticipated drilling and completion activity, acreage prospectivity, expected pipeline utilization and future guidance information, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and Range's future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements. Further information on risks and uncertainties is available in Range's filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K. Unless required by law, Range undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.

The SEC permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions as well as the option to disclose probable and possible reserves. Range has elected not to disclose its probable and possible reserves in its filings with the SEC. Range uses certain broader terms such as "resource potential, unrisked resource potential, "unproved resource potential" or "upside" or other descriptions of volumes of resources potentially recoverable through additional drilling or recovery techniques that may include probable and possible reserves as defined by the SEC's guidelines. Range has not attempted to distinguish probable and possible reserves from these broader classifications. The SECs rules prohibit us from including in filings with the SEC these broader classifications of reserves. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of actually being realized. Unproved resource potential refers to Range's internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques and have not been reviewed by independent engineers. Unproved resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer's Petroleum Resource Management System and does not include proved reserves. Area wide unproven resource potential has not been fully risked by Range's management. EUR, or estimated ultimate recovery, refers to our managements estimates of hydrocarbon quantities that may be recovered from a well completed as a producer in the area. These quantities may not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineers Petroleum Resource Management System or the SECs oil and natural gas disclosure rules. Actual quantities that may be recovered from Range's interests could differ substantially. Factors affecting ultimate recovery include the scope of Range's drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors. Estimates of resource potential may change significantly as development of our resource plays provides additional data.

In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price declines or drilling cost increases. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K on the SECs website at www.sec.gov or by calling the SEC at 1-800-SEC-0330.



2020-13

SOURCE: Range Resources Corporation

Investor Contacts: Laith Sando, Vice President ? Investor Relations 817-869-4267 lsando@rangeresources.com John Durham, Senior Financial Analyst 817-869-1538 jdurham@rangeresources.com Range Media Contacts: Mark Windle, Manager of Corporate Communications 724-873-3223 mwindle@rangeresources.com



RANGE RESOURCES CORPORATION

STATEMENTS OF OPERATIONSBased on GAAPreported earnings withadditionaldetails ofitems included in each line inForm 10-Q(Unaudited, inthousands, except pershare data) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 % 2020 2019 % Revenues and other income:Natural gas,NGLs and oil $ 349,258 $ 563,579 $ 781,354 $ 1,235,233 sales (a)Derivative fairvalue (loss)/ (6,303 ) 195,245 226,872 133,514 incomeBrokerednatural gas, 33,309 91,940 61,698 230,083 marketing andother (b)ARO settlement (12 ) ? (12 ) ? loss (b)Other (b) 294 665 554 736 Total revenuesand other 376,546 851,429 -56% 1,070,466 1,599,566 -33%income Costs and expenses:Direct 23,960 33,432 55,545 66,068 operatingDirectoperating ?non-cash 434 549 884 1,140 stock-basedcompensation(c)Transportation,gathering, 278,875 301,219 563,640 603,874 processing andcompressionProduction andad valorem 5,557 9,889 14,576 21,199 taxesBrokerednatural gas and 37,993 100,564 70,204 232,421 marketingBrokerednatural gas andmarketing ?non-cash 168 553 581 1,001 stock-basedcompensation(c)Exploration 7,655 7,721 14,402 15,444 Exploration ?non-cashstock-based 372 388 702 876 compensation(c)Abandonment andimpairment of 5,524 12,770 10,937 25,429 unprovedpropertiesGeneral and 28,333 38,505 61,343 74,799 administrativeGeneral andadministrative? non-cash 9,179 9,500 17,208 19,138 stock-basedcompensation(c)General andadministrative 776 1,190 1,591 1,896 ? lawsuitsettlementsGeneral andadministrative ? 1,436 ? 1,436 ? rig releasepenaltyGeneral andadministrative ? ? 400 ? ? bad debtexpenseExit andtermination 10,297 2,180 11,892 2,180 costsExit andterminationcosts ?non-cash ? 26 ? 26 stock-basedcompensation(c)Deferredcompensation 12,587 (11,142 ) 4,050 (7,561 ) plan (d)Interest 46,489 49,922 91,946 99,671 expenseInterestexpense ?amortization of 2,135 1,805 4,196 3,593 deferredfinancing costs(e)Gain on earlyextinguishment (8,991 ) ? (21,914 ) ? of debtDepletion,depreciation 104,626 141,505 207,612 280,223 andamortizationImpairment ofproved ? ? 77,000 ? propertiesLoss (gain) on 426 (5,867 ) (121,673 ) (5,678 ) sale of assetsTotal costs and 566,395 696,145 -19% 1,065,122 1,437,175 -26%expenses (Loss) incomebefore income (189,849 ) 155,284 -222% 5,344 162,391 -97%taxes Income tax(benefit) expense:Current (3 ? (366 ) ? Deferred (43,277 ) 40,099 7,304 45,787 (43,280 ) 40,099 6,938 45,787 Net (loss) $ (146,569 ) $ 115,185 -227% $ (1,594 ) $ 116,604 -101%income Net (Loss)Income Per Common Share:Basic $ (0.61 ) $ 0.46 $ (0.01 ) $ 0.46 Diluted $ (0.61 ) $ 0.46 $ (0.01 ) $ 0.46 Weightedaverage commonshares outstanding, asreported:Basic 239,472 247,770 -3% 242,717 247,773 -2%Diluted 239,472 248,436 -4% 242,717 249,042 -3%

(a) See separate natural gas, NGLs and oil sales information table.(b) Included in Brokered natural gas, marketing and other revenues in the 10-Q.(c) Costs associated with stock compensation and restricted stock amortization, which have been reflected in the categories associated with the direct personnel costs, which are combined with the cash costs in the 10-Q.(d) Reflects the change in market value of the vested Company stock held in the deferred compensation plan.(e) Included in interest expense in the 10-Q.

RANGE RESOURCES CORPORATION

BALANCE SHEETS (In thousands) June 30, December 31, 2020 2019 (Unaudited) (Audited) Assets Current assets $ 188,587 $ 290,954 Derivative assets 146,236 137,554 Natural gas and oil properties, successful 5,993,626 6,041,035 efforts methodTransportation and field assets 3,723 5,375 Operating lease right-of-use assets 52,367 62,053 Other 67,672 75,432 $ 6,452,211 $ 6,612,403 Liabilities and Stockholders? Equity Current liabilities $ 522,554 $ 551,032 Asset retirement obligations 2,393 2,393 Derivative liabilities 5,306 13,119 Bank debt 628,221 464,319 Senior notes 2,510,256 2,659,844 Senior subordinated notes 26,656 48,774 Total debt 3,165,133 3,172,937 Deferred tax liability 167,548 160,196 Derivative liabilities 10,001 949 Deferred compensation liability 58,676 64,070 Operating lease liabilities 35,104 41,068 Asset retirement obligations and other 149,680 259,151 liabilities Common stock and retained earnings 2,366,654 2,355,512 Other comprehensive loss (644 ) (788 )Common stock held in treasury stock (30,194 ) (7,236 )Total stockholders? equity 2,335,816 2,347,488 $ 6,452,211 $ 6,612,403

RECONCILIATIONOF TOTALREVENUES ANDOTHER INCOMETO TOTAL REVENUEEXCLUDINGCERTAIN ITEMS,a non-GAAPmeasure(Unaudited, in thousands) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 % 2020 2019 % Total revenuesand other $ 376,546 $ 851,429 -56 % $ 1,070,466 $ 1,599,566 -33 %income, asreportedAdjustment forcertain special items:Total changein fair valuerelated toderivatives 125,803 (161,738 ) (7,443 ) (75,173 ) prior tosettlement(gain) lossARO settlement 12 ? 12 ? lossTotalrevenues, as $ 502,361 $ 689,691 -27 % $ 1,063,035 $ 1,524,393 -30 %adjusted,non-GAAP

RANGE RESOURCES CORPORATION

CASH FLOWS FROM OPERATING ACTIVITIES(Unaudited in thousands) Three Months Ended June Six Months Ended June 30, 30, 2020 2019 2020 2019 Net (loss) income $ (146,569 ) $ 115,185 $ (1,594 ) $ 116,604 Adjustments toreconcile net cashprovided from continuingoperations:Deferred income tax (43,277 ) 40,099 7,304 45,787 (benefit) expenseDepletion,depreciation, 104,626 141,505 284,612 280,223 amortization andimpairmentAbandonment andimpairment of 5,524 12,770 10,937 25,429 unproved propertiesDerivative fair value 6,303 (195,245 ) (226,872 ) (133,514 )loss (income)Cash settlements onderivative financial 119,500 33,507 219,429 58,341 instrumentsAllowance for bad ? ? 400 ? debtsAmortization ofdeferred issuance 1,741 1,436 3,398 3,243 costs and otherDeferred andstock-based 22,637 (385 ) 23,113 13,727 compensationLoss (gain) on sale 426 (5,867 ) (121,673 ) (5,678 )of assets and otherGain on earlyextinguishment of (8,991 ) ? (21,914 ) ? debt Changes in working capital:Accounts receivable 19,045 67,422 103,390 201,428 Inventory and other 376 (272 ) (4,056 ) (5,035 )Accounts payable (46,013 ) 1,299 (27,353 ) (29,132 )Accrued liabilities 43,434 (26,632 ) (45,853 ) (125,907 )and otherNet changes in 16,842 41,817 26,128 41,354 working capitalNet cash providedfrom operating $ 78,762 $ 184,822 $ 203,268 $ 445,516 activities RECONCILIATION OF NETCASH PROVIDED FROMOPERATING ACTIVITIES,AS REPORTED, TO CASH FLOW FROM OPERATIONSBEFORE CHANGES INWORKING CAPITAL, anon-GAAP measure(Unaudited, in thousands) Three Months Ended June Six Months Ended June 30, 30, 2020 2019 2020 2019 Net cash providedfrom operating $ 78,762 $ 184,822 $ 203,268 $ 445,516 activities, asreportedNet changes in (16,842 ) (41,817 ) (26,128 ) (41,354 )working capitalExploration expense 7,655 7,721 14,402 15,444 Lawsuit settlements 776 1,190 1,591 1,896 Exit and termination 10,297 2,180 11,892 2,180 costsRig release penalty ? 1,436 ? 1,436 Non-cash compensation 509 628 1,122 1,243 adjustmentCash flow fromoperations beforechanges in working $ 81,157 $ 156,160 $ 206,147 $ 426,361 capital ? non-GAAPmeasure ADJUSTED WEIGHTEDAVERAGE SHARES OUTSTANDING(Unaudited, in thousands) Three Months Ended June Six Months Ended June 30, 30, 2020 2019 2020 2019 Basic: Weighted average 245,879 251,242 247,516 250,784 shares outstandingStock held bydeferred compensation (6,407 ) (3,472 ) (4,799 ) (3,011 )planAdjusted basic 239,472 247,770 242,717 247,773 Dilutive: Weighted average 245,879 251,242 247,516 250,784 shares outstandingDilutive stockoptions under (6,407 ) (2,806 ) (4,799 ) (1,742 )treasury methodAdjusted dilutive 239,472 248,436 242,717 249,042

RANGE RESOURCES CORPORATION

RECONCILIATIONOF NATURAL GAS,NGLs AND OILSALES ANDDERIVATIVE FAIRVALUE INCOME(LOSS) TOCALCULATED CASHREALIZEDNATURAL GAS, NGLs AND OILPRICES WITH ANDWITHOUT THIRDPARTYTRANSPORTATION,GATHERING ANDCOMPRESSIONFEES, anon-GAAPmeasure(Unaudited, inthousands, except per unitdata) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 % 2020 2019 %Natural gas,NGL and oil salescomponents:Natural gas $ 214,207 $ 343,623 $ 467,456 $ 778,343 salesNGL sales 124,383 167,027 267,622 364,840 Oil sales 10,668 52,929 46,276 92,050 Total oil andgas sales, as $ 349,258 $ 563,579 -38 % $ 781,354 $ 1,235,233 -37 %reported Derivative fairvalue (loss) $ (6,303 ) $ 195,245 $ 226,872 $ 133,514 income, asreported:Cashsettlements onderivative financialinstruments ?(gain) loss:Natural gas (90,837 ) (20,396 ) (171,009 ) (19,524 ) NGLs (6,905 ) (15,918 ) (16,948 ) (40,782 ) Crude Oil (21,758 ) 2,807 (31,472 ) 1,965 Total change infair valuerelated toderivatives $ (125,803 ) $ 161,738 $ 7,443 $ 75,173 prior tosettlement, anon-GAAPmeasure Transportation,gathering,processing and compressioncomponents:Natural gas $ 167,367 $ 185,353 $ 337,208 $ 374,435 NGLs 110,718 115,866 225,642 229,439 Oil 790 ? 790 ? Totaltransportation,gathering, $ 278,875 $ 301,219 $ 563,640 $ 603,874 processing andcompression, asreported Natural gas,NGL and oilsales,including cash-settledderivatives:(c)Natural gas $ 305,044 $ 364,019 $ 638,465 $ 797,867 salesNGL sales 131,288 182,945 284,570 405,622 Oil sales 32,426 50,122 77,748 90,085 Total $ 468,758 $ 597,086 -21 % 1,000,783 1,293,574 -23 % Production ofoil and gas during theperiods (a):Natural gas 151,127,582 143,163,003 6 % 296,888,174 283,684,666 5 %(mcf)NGL (bbl) 9,716,261 9,847,268 -1 % 19,349,296 19,459,815 -1 %Oil (bbl) 720,125 982,324 -27 % 1,588,422 1,787,874 -11 %Gas equivalent 213,745,898 208,140,555 3 % 422,514,482 411,170,800 3 %(mcfe) (b) Production ofoil and gas ? average per day(a):Natural gas 1,660,743 1,573,220 6 % 1,631,254 1,567,319 4 %(mcf)NGL (bbl) 106,772 108,212 -1 % 106,315 107,513 -1 %Oil (bbl) 7,913 10,795 -27 % 8,728 9,878 -12 %Gas equivalent 2,348,856 2,287,259 3 % 2,321,508 2,271,662 2 %(mcfe) (b) Average prices,excludingderivativesettlements and before thirdpartytransportationcosts:Natural gas $ 1.42 $ 2.40 -41 % $ 1.57 $ 2.74 -43 %(mcf)NGL (bbl) $ 12.80 $ 16.96 -25 % $ 13.83 $ 18.75 -26 %Oil (bbl) $ 14.81 $ 53.88 -73 % $ 29.13 $ 51.49 -43 %Gas equivalent $ 1.63 $ 2.71 -40 % $ 1.85 $ 3.00 -38 %(mcfe) (b) Average prices,includingderivativesettlements before thirdpartytransportationcosts: (c)Natural gas $ 2.02 $ 2.54 -21 % $ 2.15 $ 2.81 -24 %(mcf)NGL (bbl) $ 13.51 $ 18.58 -27 % $ 14.71 $ 20.84 -29 %Oil (bbl) $ 45.03 $ 51.02 -12 % $ 48.95 $ 50.39 -3 %Gas equivalent $ 2.19 $ 2.87 -24 % $ 2.37 $ 3.15 -25 %(mcfe) (b) Average prices,includingderivativesettlements andafter third party

transportationcosts: (d)Natural gas $ 0.91 $ 1.25 -27 % $ 1.01 $ 1.49 -32 %(mcf)NGL (bbl) $ 2.12 $ 6.81 -69 % $ 3.05 $ 9.05 -66 %Oil (bbl) $ 43.93 $ 51.02 -14 % $ 48.45 $ 50.39 -4 %Gas equivalent $ 0.89 $ 1.42 -38 % $ 1.03 $ 1.68 -38 %(mcfe) (b) Transportation,gathering andcompression $ 1.30 $ 1.45 -10 % $ 1.33 $ 1.47 -9 %expense permcfe

(a) Represents volumes sold regardless of when produced.(b) Oil and NGLs are converted at the rate of one barrel equals six mcfe based upon the approximate relative energy content of oil to natural gas, which is not necessarily indicative of the relationship of oil and natural gas prices.(c) Excluding third party transportation, gathering and compression costs.(d) Net of transportation, gathering and compression costs.

RANGE RESOURCES CORPORATION

RECONCILIATIONOF (LOSS)INCOME BEFOREINCOME TAXESAS REPORTED TOINCOME BEFORE INCOME TAXESEXCLUDINGCERTAIN ITEMS,a non-GAAPmeasure(Unaudited, inthousands, except pershare data) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 % 2020 2019 % (Loss) incomefromoperations $ (189,849 ) $ 155,284 (222 ) % $ 5,344 $ 162,391 (97 ) %before incometaxes, asreportedAdjustment forcertain special items:Loss (gain) on 426 (5,867 ) (121,673 ) (5,678 ) sale of assets(Gain) loss onARO 12 ? 12 ? settlementsChange in fairvalue relatedto derivatives 125,803 (161,738 ) (7,443 ) (75,173 ) prior tosettlementAbandonmentand impairment 5,524 12,770 10,937 25,429 of unprovedpropertiesRig release ? 1,436 ? 1,436 penaltyGain on earlyextinguishment (8,991 ) ? (21,914 ) ? of debtImpairment ofproved ? ? 77,000 ? propertyLawsuit 776 1,190 1,591 1,896 settlementsExit andtermination 10,297 2,180 11,892 2,180 costsExit andterminationcosts ? ? 26 ? 26 non-cashstock-basedcompensationBrokerednatural gasand marketing 168 553 581 1,001 ? non-cashstock-basedcompensationDirectoperating ?non-cash 434 549 884 1,140 stock-basedcompensationExplorationexpenses ?non-cash 372 388 702 876 stock-basedcompensationGeneral &administrative? non-cash 9,179 9,500 17,208 19,138 stock-basedcompensationDeferredcompensationplan ? 12,587 (11,142 ) 4,050 (7,561 ) non-cashadjustment (Loss) incomebefore income (33,262 ) 5,129 -749 % (20,829 ) 127,101 -116 %taxes, asadjusted Income taxexpense (benefit), asadjustedCurrent (3 ) ? (366 ) ? Deferred (a) (8,315 ) 1,282 (5,207 ) 31,792 Net (loss)incomeexcluding $ (24,944 ) $ 3,847 -748 % $ (15,256 ) $ 95,309 -116 %certain items,a non-GAAPmeasure Non-GAAP(loss) income per commonshareBasic $ (0.10 ) $ 0.02 -600 % $ (0.06 ) $ 0.38 -116 %Diluted $ (0.10 ) $ 0.02 -600 % $ (0.06 ) $ 0.38 -116 % Non-GAAPdiluted shares 239,472 248,436 242,717 249,042 outstanding,if dilutive

(a) Deferred taxes are estimated to be approximately 25% for 2020 and 2019.



RANGE RESOURCES CORPORATION

RECONCILIATION OF NETINCOME (LOSS),EXCLUDINGCERTAIN ITEMS AND ADJUSTMENT EARNINGSPER SHARE, non-GAAPmeasures(In thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net (loss) income, as $ (146,569 ) $ 115,185 $ (1,594 ) $ 116,604 reportedAdjustment for certain special items:Loss (gain) on sale of 426 (5,867 ) (121,673 ) (5,678 )assetsLoss (gain) on ARO 12 ? 12 ? settlementsGain on early (8,991 ) ? (21,914 ) ? extinguishment of debtChange in fair valuerelated to derivatives 125,803 (161,738 ) (7,443 ) (75,173 )prior to settlementImpairment of proved ? ? 77,000 ? propertyAbandonment andimpairment of unproved 5,524 12,770 10,937 25.429 propertiesLawsuit settlements 776 1,190 1,591 1,896 Rig release penalty ? 1,436 ? 1,436 Exit and termination 10,297 2,180 11,892 2,180 costsNon-cash stock-based 10,153 11,016 19,375 22,181 compensationDeferred compensation 12,587 (11,142 ) 4,050 (7,561 )planTax impact (34,962 ) 38,817 12,511 13,995 Net (loss) incomeexcluding certain $ (24,944 ) $ 3,847 $ (15,256 ) $ 95,309 items, a non-GAAPmeasure Net (loss) income perdiluted share, as $ (0.61 ) $ 0.46 $ (0.01 ) $ 0.46 reportedAdjustment for certainspecial items per diluted share:(Gain) loss on sale of 0.00 (0.02 ) (0.50 ) (0.02 )assetsLoss (gain) on ARO 0.00 ? 0.00 ? settlementsGain on early (0.04 ) ? (0.09 ) ? extinguishment of debtChange in fair valuerelated to derivatives 0.53 (0.65 ) (0.03 ) (0.30 )prior to settlementImpairment of proved ? ? 0.32 ? propertyAbandonment andimpairment of unproved 0.02 0.05 0.05 0.10 propertiesLawsuit settlements 0.00 0.00 0.01 0.01 Rig release penalty ? 0.01 ? 0.01 Exit and termination 0.04 0.01 0.05 0.01 costsNon-cash stock-based 0.04 0.04 0.08 0.09 compensationDeferred compensation 0.05 (0.04 ) 0.02 (0.03 )planAdjustment for 0.02 ? (0.01 ) (0.01 )rounding differencesTax impact (0.15 ) 0.16 0.05 0.06 Net (loss) income perdiluted share,excluding certain $ (0.10 ) $ 0.02 $ (0.06 ) $ 0.38 items, a non-GAAP measure Adjusted (loss)earnings per share, a non-GAAP measure:Basic $ (0.10 ) $ 0.02 $ (0.06 ) $ 0.38 Diluted $ (0.10 ) $ 0.02 $ (0.06 ) $ 0.38

RANGE RESOURCES CORPORATION

RECONCILIATION OFCASH MARGIN PER MCFE, a non-GAAPmeasure(Unaudited, inthousands, except per unit data) Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Revenues Natural gas, NGLand oil sales, as $ 349,258 $ 563,579 $ 781,354 $ 1,235,233 reportedDerivative fairvalue income (6,303 ) 195,245 226,872 133,514 (loss), as reported Less non-cashfair value (gain) 125,803 (161,738 ) (7,443 ) (75,173 )lossBrokered naturalgas and marketing 33,591 92,605 62,240 230,819 and other, asreported Less AROsettlement and (282 ) (665 ) (542 ) (736 )other (gains)losses Cash revenueapplicable to 502,067 689,026 1,062,481 1,523,657 production Expenses Direct operating, 24,394 33,981 56,429 67,208 as reported Less directoperating (434 ) (549 ) (884 ) (1,140 )stock-basedcompensationTransportation,gathering and 278,875 301,219 563,640 603,874 compression, asreportedProduction and advalorem taxes, as 5,557 9,889 14,576 21,199 reportedBrokered naturalgas and marketing, 38,161 101,117 70,785 233,422 as reported Less brokerednatural gas andmarketing (168 ) (553 ) (581 ) (1,001 )stock-basedcompensationGeneral andadministrative, as 38,288 49,195 80,542 95,833 reported Less G&Astock-based (9,179 ) (9,500 ) (17,208 ) (19,138 )compensation Less lawsuit (776 ) (1,190 ) (1,591 ) (1,896 )settlementsInterest expense, 48,624 51,727 96,142 103,264 as reported Less amortizationof deferred (2,135 ) (1,805 ) (4,196 ) (3,593 )financing costs Cash expenses 421,207 533,531 857,654 1,098,032 Cash margin, a $ 80,860 $ 155,495 $ 204,827 $ 425,625 non-GAAP measure Mmcfe produced 213,746 208,141 422,514 411,171 during period Cash margin per $ 0.38 $ 0.75 $ 0.48 $ 1.04 mcfe RECONCILIATION OF(LOSS) INCOME BEFORE INCOME TAXESTO CASH MARGIN(Unaudited, inthousands, except per unit data) Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Loss) incomebefore income $ (189,849 ) $ 155,284 $ 5,344 $ 162,391 taxes, as reportedAdjustments toreconcile (loss)income before income taxes tocash margin:ARO settlements and (282 ) (665 ) (542 ) (736 )other gainsDerivative fair 6,303 (195,245 ) (226,872 ) (133,514 )value loss (income)Net cash receiptson derivative 119,500 33,507 219,429 58,341 settlementsExploration expense 7,655 7,721 14,402 15,444 Lawsuit settlements 776 1,190 1,591 1,896 Rig release penalty ? 1,436 ? 1,436 Exit and 10,297 2,180 11,892 2,180 termination costsDeferred 12,587 (11,142 ) 4,050 (7,561 )compensation planStock-basedcompensation(direct operating,brokered natural 10,153 11,016 19,375 22,181 gas and marketing,general andadministrative andtermination costs)Interest ?amortization of 2,135 1,805 4,196 3,593 deferred financingcostsDepletion,depreciation and 104,626 141,505 207,612 280,223 amortizationLoss (gain) on sale 426 (5,867 ) (121,673 ) (5,678 )of assetsGain on earlyextinguishment of (8,991 ) ? (21,914 ) ? debtImpairment ofproved property and ? ? 77,000 ? other assetsAbandonment andimpairment of 5,524 12,770 10,937 25,429 unproved propertiesCash margin, a $ 80,860 $ 155,495 $ 204,827 $ 425,625 non-GAAP measure

RANGE RESOURCES CORPORATION

HEDGING POSITION AS OF June 30, 2020 (Unaudited)

Daily Volume Hedge Price Gas^ 1 Jul-Oct 2020 3-way Collar 60,000 Mmbtu $1.75 / $2.00 x $2.53 3Q 2020 Swaps 1,206,522 Mmbtu $2.58 4Q 2020 Swaps 1,087,147 Mmbtu $2.60 Apr-Oct 2021 Collars 60,000 Mmbtu $2.60 x $3.00 2021 3-way Collars 240,000 Mmbtu $1.99 / $2.33 x $2.60 2021 Swaps 70,000 Mmbtu $2.61 Oil ^2 3Q 2020 Swaps 8,000 bbls $58.19 4Q 2020 Swaps 6,000 bbls $58.02 2021 Swaps 1,000 bbls $55.00 C3 Propane 3Q 2020 Swaps 3,022 bbls $0.470/gallon nC4 Butane ^3 3Q 2020 Swaps 2,500 bbls $0.570/gallon C5 Natural Gasoline 3Q 2020 Swaps 1,674 bbls $0.732/gallon

(1) Range sold natural gas call swaptions of 180,000 Mmbtu/d for calendar 2021 at an average strike price of $2.825 per Mmbtu. Range also sold 60,000 Mmbtu/d of 3Q20 $2.50 strike calls.

(2) Range sold 500 bbls/d of 3Q20 $59.00 strike WTI calls, and call swaption of 1,000 bbls/d for calendar 2021 at an average strike price of $55.00.

(3) Range sold nC4 butane calls of 2,500 bbls/d for 3Q20 at an average strike price of $0.57 per gallon.

SEE WEBSITE FOR OTHER SUPPLEMENTAL INFORMATION FOR THE PERIODSAND ADDITIONAL HEDGING DETAILS