Jake Roberts

Jake Roberts inquired about Range Resources' work-in-progress inventory, specifically the projected 400,000 lateral feet by the end of 2026, the timing of its drawdown, and potential OpEx implications from the shift in drilling versus completion capital.

Answer

CEO Dennis Degner explained that 2026 capital would be similar to 2025 but reallocated to focus more on completing DUC inventory. He detailed a reduction in drilling activity to one rig and an increase in completion activity with a second frac crew to linearly utilize the inventory through 2027. Degner also noted that cash operating expenses are expected to remain low, with continued efficiency gains from returning to pad sites and drilling long laterals.

Jake Roberts (TPH & Co.) inquired about Range Resources' work-in-progress inventory projections for 2026, including the expected 400,000 lateral feet, and the anticipated timing and capital allocation shift for drawing down this inventory.

Answer

CEO Dennis Degner detailed that 2026 capital would be similar to the current year but lean more heavily on completing DUC inventory, with drilling activity decreasing and completion activity increasing with a second frac crew. He also noted that cash operating expenses (LOE) are expected to remain low, with continued efficiency gains from returning to pad sites and drilling long laterals.

Jake Roberts inquired about the strategy of completing drilled but uncompleted (DUC) wells ahead of schedule to be better positioned for 2026 pricing. He also asked how Range weighs the opportunity of local demand against the potential need to supply the Gulf Coast market, given inventory concerns in other basins.

Answer

CEO Dennis Degner confirmed they are already accelerating some completions with spot crews to align with improving fundamentals and new midstream capacity. He explained that the decision between in-basin and Gulf Coast supply is driven by margins, and Range's portfolio is flexible enough to pursue both. The company has already secured additional long-haul transport to the Gulf Coast and will patiently evaluate new pipeline projects.

Jake Roberts of Tudor, Pickering, Holt & Co. questioned whether the focus on smaller-scale discretionary acreage acquisitions implies that more transformative, larger-scale M&A opportunities are unavailable or less likely. He also asked for a relative ranking of the SCOOP asset's returns against the Utica portfolio, particularly the 70% IRR threshold mentioned for the condensate area.

Answer

CEO John Reinhart clarified that the organic acquisition program does not signal a change in M&A outlook but is a continuation of their consistent strategy to protect the balance sheet and reinvest cash flow into high-return inventory. EVP & COO Matthew Rucker explained that the SCOOP asset's returns are robust and comparable to the Utica, but it is more capital-intensive per well, so its inclusion in the budget depends on the overall capital allocation strategy for a given year.

Jake Roberts of Tudor, Pickering, Holt & Co. asked about the company's 2026 capital philosophy, specifically whether they would outspend cash flow to accelerate growth in a higher price environment. He also inquired about the timeline required to analyze well data from different choke management strategies in the Western Haynesville.

Answer

President & CFO Roland Burns stated that while it is early to set the 2026 plan, he does not foresee a scenario where the company would outspend cash flow, preferring to maintain flexibility and adjust activity to market conditions. On choke management, COO Daniel Harrison explained that it is a long-term evaluation, requiring a minimum of a year and potentially 18-24 months of production data to definitively determine the optimal drawdown strategy.

Jake Roberts of Tudor, Pickering, Holt & Co. asked about the 2026 outlook, questioning if the company would outspend cash flow for growth in a higher price environment. He also inquired about the timeline required to get conclusive data from the choke management experiments in the Western Haynesville.

Answer

President & CFO Roland Burns indicated it is too early for a specific 2026 plan but stated he does not foresee a scenario where the company would outspend cash flow, preferring to adjust activity levels based on the price outlook. Regarding choke management, COO Daniel Harrison explained that it is a long-term evaluation, requiring a minimum of one year, and likely 18 to 24 months, to obtain a definitive answer on the optimal drawdown strategy, though they receive continuous feedback from pressure data.

Jake Roberts of Tudor, Pickering, Holt & Co. asked about the 2026 financial strategy, questioning if the company would outspend cash flow in a higher price environment or reduce activity in a lower one. He also inquired about the timeline for optimizing choke management in the Western Haynesville.

Answer

President and CFO Roland Burns indicated it was early for 2026 guidance but stated the company does not foresee outspending cash flow and maintains flexibility to adjust activity based on market conditions. On well management, COO Daniel Harrison explained that determining the optimal drawdown strategy is a long-term process, requiring a minimum of a year and potentially 18-24 months of production data to get a definitive answer, though they are gathering clues from pressure data in the interim.

Jake Roberts sought clarification on whether the $30 million 45Z credit is based on the Remediated Mine Gas (RMG) input or a downstream output. He also asked about the role of RMG in discussions with AI and tech counterparties and if it could achieve premium pricing through these channels.

Answer

CFO & President Alan Shepard explained the 45Z credit incentivizes collecting waste gas from coal mines and making it a saleable product. Regarding AI, Shepard highlighted RMG as a sustainable energy solution for data centers. CEO Nick DeIuliis added that AI represents another critical pathway to monetize RMG's value, alongside manufacturing, power generation, and transportation fuels.

Jake Roberts of TPH&Co asked if a pure reallocation scenario, where EQT meets new demand without growing production, would meaningfully shift the sales point percentages detailed in the company's investor presentation.

Answer

CFO Jeremy Knop responded that the sales mix would be an election based on relative pricing. He explained that if in-basin basis differentials tighten significantly, EQT would be open to increasing its in-basin exposure. He reiterated his view that a paradigm shift in the gas market is coming late in the decade, which positions EQT's future growth to be highly valuable, and confirmed the company has the flexibility to move its gas wherever it wants.