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RANGE ResourcesRange Resources Hart Energy: Energy Capital Investment Symposium | June 3, 2009 | 1

Hart EnergyEnergy Capital Investment Symposium

RANGE Resources

Jeffrey L. VenturaPresident & Chief Operating Officer

June 3, 2009


RANGE Resources

Natural Gas Outlook Range Overview & Strategy Range Operations


Natural Gas Outlook – How did we get here?

NYMEX Spot Price

$1.50

$3.50

$5.50

$7.50

$9.50

$11.50

$13.50

June Jul-08 Aug Sept Oct Nov Dec Jan Feb Mar-09

Since mid-year 2008, the spot price has fallen ~$10 per mcf!

Question – How much of the ~$10 drop is due to too much supply and how much is due to the drop in demand?

$13.58

$3.91

Jul-08 Jun-09


Natural Gas Outlook – Supply Side is Correcting

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U.S. Dry Natural Gas Production EIA Natural Gas Rig CountProjected Natural Gas Rig Count

Data retrieved from EIA website www.eia.doe.gov

It took 6.5 years for the rig count to double It has taken just 7 months for the rig count to drop in half Looks like the rig count is headed for ~600

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Natural Gas Outlook – Where is Supply Headed?

If Rig Count

Drops To

Year 2009 Y-O-Y Impact

Dec. ’09 Y-O-Y

Exit RateImpact

600 -3% -13%

700 -2% -11%

800 -1% -9%


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


Natural Gas Outlook – Price Support

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Data retrieved from EIA website www.eia.doe.gov


Natural Gas Outlook – Short Term Considerations

The U.S. base decline is ~30% per year, equating to a ~15 Bcf decline per year

The rig count will not rebound materially until natural gas prices rise to the “marginal cost” to develop (~$7 - $8 per mcf)

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

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


Natural Gas Outlook – Longer Term Considerations

“Clean Coal” technology is not commercial yet, it will take years and billions of dollars

The average coal fired electric generation plant in the northeast is ~50 years old

Essentially all new electric generation under consideration is natural gas fired

“Cap and Trade” legislation will enhance the economics of natural gas versus coal

Natural Gas vs. Coal


Natural Gas Outlook – Longer Term Considerations

Natural gas has “natural” advantages over oil (foreign controlled, environmental) and coal (environmental)

Renewable energy is very expensive and will take many, many years to have a material impact

Nuclear – very long construction time, high upfront cost and NIMBY factor (Not In My Backyard)

“Natural Gas… is an important transition fuel. It has fewer CO2

emissions than either coal or oil, especially coal.”

Al Gore (Meet the Press July 20, 2008)


(1) As of December 31, 2008

Market Cap ~ $6 billion Reserve base (1)

– 2.7 Tcfe – 83% natural gas– 18 year reserve life

Operations– 2009E – 500 (315 net) wells– 15 rigs drilling

Large acreage and drilling inventory (1) – 3.4 million acres (2.8 million net)– 12,000+ drilling projects in inventory

Gulf Coast

SouthwestSouthwest

Appalachia

Midcontinent

Range Resources Overview

Gulf Coast

Nora Field Virginia2.3 Tcfe resource potential

6,000+ wells to drill

Marcellus Shale15 to 22 Tcfe resource potential

Fort Worth Barnett1.8 Tcfe resource potential1,000+ wells to drill (core)


Range Strategies

Grow production and reserves (on a per share basis/debt adjusted) by double-digit rates at low costs (top quartile)

Grow primarily through the drill bit, complemented with low cost acquisitions and occasional divestitures of lower-growth properties

Maintain a simple capital structure

Target a debt to capital ratio of 40%

Hire the best people available and reward them with equity participation


130

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1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

Mmcfe/dayMmcfe/day

2003 2004 2005 2006 2007 2008

25 Consecutive Quarters of Production Growth25 Consecutive Quarters of Production Growth10% Year-Over-Year Growth Targeted for 200910% Year-Over-Year Growth Targeted for 2009

Consistent Growth

1Q09

Actual Guidance


Range – Low-Cost Producer

$3.00

$4.00

$5.00$6.00

$7.00

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$9.00$10.00

$11.00

$12.00

$13.00

$14.00$15.00

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$18.00$19.00

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BANK OF AMERICA - 2008 NYMEX BREAKEVEN ANALYSISBANK 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 – 2nd in 2007 and 2008, 1st in 2004, 2005 & 2006

Median $8.03

RangeResources


Not Just Growing Production and Reserves …

0.4

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2005 2006 2007 2008

Range is Growing Production and Reserves Per Share, Debt Adjusted at Better than a 10% CAGR

Production/share – debt adjusted Reserves/share – debt adjusted

Production/share = Annual production divided by debt adjusted average diluted shares outstanding

Reserves/share = Year-end proven reserves, excluding price revisions, divided by debt adjusted fourth quarter average diluted shares outstanding

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Range’s Reserve Base and Upside are Growing

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

((1) Net unrisked resource potential

Low-risk, multi-year drilling inventory has potential to more than double proved reserves

Drilling inventory and emerging plays potential is 8 to 10 times existing proved reserves


Emerging Plays Upside 16.8 to 24.5 Tcfe

PlayNet

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


96,000 net acres of leasehold

Production increasing – now 125 Mmcfe/d net

3 rigs running

42,000 net acres in the Core –1,000+ locations to drill

Barnett – 1.8 Tcf Unbooked Potential

SE TARRANT / NE JOHNSON / NW ELLIS / SW DALLAS

COUNTIES

SOUTHERN TARRANTCOUNTY

SE PARKER / NE HOODCOUNTIES


4 Bcf for $2.4 million cost 3,100 acres 30 wells drilled 19 wells to be drilled on 500 foot

spacing 48 wells to be drilled on 250 foot

spacing 5 wells to be completed Recent well completed

approximately 3 miles south – IP averaged a record 30-day rate of 9.6 Mmcfpd

Low F&D / High ROR


P ETRA 7/22/20 088:19:16 AM

Numerous Locations with F&D <$1.00 mcfe – E. Parker / Hood County

Reduced cost to drill – 10 days from spud to rig release

Completed well cost $1.6 million

Average EUR- 2.5 Bcfe

F&D cost of $0.80/mcfe

59 locations on 1,000 foot spacing

135 locations on 500 foot spacing

ParkerParker

HoodHood

MITCHELL RANCH AREA (3,150 ACRES)18 GAS COMPLETIONS5 GAS WAITING ON COMPLETION2 DRILLING14 LOCATIONS AT 1,000’ SPACING42 LOCATIONS AT 500’ SPACING

CROCKET’S BOUNTY AREA (3,500 ACRES)5 GAS COMPLETIONS2 DRILLING22 LOCATIONS AT 1,000’ SPACING49 LOCATIONS AT 500’ SPACING

TEAL AREA (2,600 ACRES)23 LOCATIONS AT 1,000’ SPACING44 LOCATIONS AT 500’


Barnett Shale Well Economics

Core area – Tarrant, Denton, Johnson and NW Ellis Counties

EUR – 3.0 Bcf

Capital – $2.6MM

F&D – $1.14/mcfe At $5.00 flat NYMEX

generates 32% rate of return0%

10%20%30%40%50%60%70%80%

$4.00 $5.00 $6.00 $7.00

Gas Price, $/mmbtu NYMEX

IRR


Nora/Haysi Field in Virginia

Nora Field

VAVA

~300,000 acres Over 2,150 producing CBM &

tight gas wells 6,000 additional wells to drill F&D ~$1.00/mcfe LOE ~$0.60/mcfe Significant unbooked

resource potential


Nora Field – Multiple Horizon Potential

1,100' - 2,500'

4,000' - 5,000'

5,000' - 6,000'

12,000'

EXPLORATIONPOTENTIAL

Depth in feet

CBM

TIGHT GASSANDS

DEVONIANSHALE

SILURIAN /ORDOVICIAN

CBM

Tight GasSands

HuronShale

Silurian /Ordovician

Unbooked ResourcePotential (Tcfe)

.4 – .6

.1 – .2

.8 – 1.5

Total 1.3 – 2.3


Nora CBM Well Economics

Southwest Virginia

EUR – 350 Mmcf

Capital – $340K

F&D – $0.88/mcfe At $5.00 flat NYMEX

generates 33% rate of return0%

10%20%30%40%50%60%70%80%

$4.00 $5.00 $6.00 $7.00


IRR


Marcellus – Largest Potential of all the Shales

ALL Consulting, 2008 – Estimated U.S. shale gas-in-place resources


Making the Marcellus Real – Score Card

Drilled more horizontal wells in the play than any other operator

Recorded terrific well results

– Record IP for horizontal well- 24.5 Mmcfed

– Record IP for vertical well- 6.3 Mmcfed

Well results have improved

– Last 10 horizontal wells brought online in 2008 had an average IP of 7.3 Mmcfed


Marcellus Shale Terrain – SW Pennsylvania

Sparsely populatedGently rolling hillsGood road accessGood water access

Excellent Area for Development


Marcellus Shale Well Economics

Southwestern Pennsylvania – wet gas case

EUR – 3.5 Bcfe

Capital $3.5MM

F&D – $1.16/mcfe NYMEX Price/Rate of return (1)

0%10%20%30%40%50%60%70%80%

$4.00 $5.00 $6.00 $7.00


IRR

$4.00 - 34%$5.00 - 46%$6.00 - 60%$7.00 - 75%

(1) Includes gathering, pipeline and processing costs


Marcellus Economics are “Best of Class”

Low Finding Costs

Best Wellhead Gas Price

Attractive Lease Terms

$1.16 per Mcfe

Positive basis differentials

Low royalties and longer term leases


“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


Making it Real for Range’s Shareholders

We estimate our current Marcellus position has 22 Tcf of unrisked resource potential (8 times our current proved reserves)

Our goal for 2009 is to more than double Range’s net production from the Marcellus

Our goal for 2010 is to double production again

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


Proven Track Record– Consistent in growing reserves and production– Disciplined low cost producer– Focused on growing per share value

Transparent, Low Risk Growth Profile– Stable, long life reserve base– Large drilling inventory of low cost projects

Strong Financial Position– Simple balance sheet with no debt maturities until 2012– Significant liquidity and bank credit capacity

Substantial Upside Potential– Resource potential is 8 to 10 times current proved reserves– Multiple plays provide multiple ways to win– Economics work in a low price environment

Why Own Range in the Current Environment?


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.

Forward-Looking Statements

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Business

marginal cost

rig count

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