Greetings. Welcome to the Range Resources Second Quarter 2015 Earnings Conference Call. This call is being recorded. All lines have been placed on mute to prevent any background noise. Statements contained in this conference call that are not historical fact are forward-looking statements. Such statements are subject to risk and uncertainties which could cause actual results to differ materially from those in the forward-looking statements. After the speakers' remark, there will be a question-and-answer period. At this time, I would like to turn the call over to Mr. Rodney Waller, Senior Vice President of Range Resources. Please go ahead, sir. Rodney L. Waller - Senior Vice President & Head-Investor Relations: Thank you, operator. Good morning and welcome. Range reported results for second quarter 2015 with record production, a continuing decrease in unit costs, and some outstanding well results. The order of our speakers on the call today are Jeff Ventura, Chairman, President and CEO; Roger Manny, Executive Vice President and Chief Financial Officer; and Ray Walker, Executive Vice President, Chief Operating Officer. Range did file our 10-Q with the SEC yesterday. It should be available on our website under the Investor tab, or you can access it using the SEC's EDGAR system. In addition, we've posted to our website supplemental tables which will guide you in the calculation of the non-GAAP measures of cash flow, EBITDAX, cash margins, and the reconciliation of reported earnings to our adjusted non-GAAP earnings that are discussed on the call. Now, let me turn it over to Jeff. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Thank you, Rodney. The past several months have been a challenge. Appalachian natural gas differentials have widened as the basin awaits takeaway expansions and a more balanced regional supply and demand picture. In addition, NGL netbacks have…

Thank you, Mr. Ventura. The question-and-answer session will now begin. Our first question comes from Ron Mills with Johnson & Rice. Please proceed with your question. Ronald E. Mills - Johnson Rice & Co. LLC: Good morning, Jeff. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Hi. Ronald E. Mills - Johnson Rice & Co. LLC: I know it's still early, but do you have any preliminary thoughts on 2016, in particular, in light of your 3 times leverage ratio, how CapEx versus growth can look at either varying levels of CapEx, depending on how the cash flows look like they'll settle out? Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Yeah, that's a great question. And I'll start by saying it is early. Typically, we work that really hard, present it to our board in December, and then after their approval announce it in January. But let me give you a lot of thoughts around it that, hopefully, will put some sideboards around it and give you a lot of color. I'd like to start by talking about this year, 2015. In this year, we're getting a 20% growth with $870 million of CapEx. And we feel good about those numbers, and that's where we'll end up. And if you look at that, I think, versus any of our peers, I think we're at the head of the class. Our dollars go further than almost any operator. We're, I believe, one of the most, if not the most, capital efficient company out there. So, we'll start with 2015. If you look into 2016, I think our pricing gets better. The netbacks will get better. One, we'll have a full year of Mariner East in 2016 and we're – again, have the lion's share of Mariner…

Thank you. Our next question comes from Doug Leggate with Bank of America Merrill Lynch. Please proceed with your question.

Thank you. Good morning, Jeff. Good morning, everybody. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Good morning.

Jeff, I apologize for laboring the last question. Maybe I'm going to ask it slightly differently, or a different take on it. What would it take, in your view, to hold 2016 production flat? I know that's probably – with Range, that's probably a bit of an unrealistic scenario, but from a CapEx point of view, do you have a kind of ballpark? What do you think it would take to just hold the production flat from here? And I've got a follow-up, please. Roger S. Manny - Chief Financial Officer & Executive Vice President: Yeah, Doug. This is Roger. Let me take a swing at it. I'll answer some of that how we've answered this question before. When you take our anticipated 2015 production times our F&D costs – and you can pick any F&D costs. It's in the appendix of the book on any of our key plays. You end up with a maintenance capital to replace our reserves of around $200 million to $220 million. So, I think that's one bookend for you – for folks to think about. The other bookend, of course, is what Jeff just mentioned, that in 2015 we've gotten 20% growth at $870 million with anticipated additional efficiencies going into 2016 for a lot of the reasons that were just mentioned. So I think you can look at those as two bookends. Another thing I would add is just that something a lot of folks forget about is we really have, if not the highest R/P ratios, one of the highest R/P ratios out there, particularly of a shale producer and – especially if you look at just the proved developed producing reserves and that ratio. So, we have a much shallower decline, which means it's a lot easier to replace production. So I know I'm not getting to the exact number, but, like Jeff said, we don't have a micrometer for 2016 right now. But I think, hopefully, that will help you with bookending the answer.

It does, Roger. But it kind of begs another question, I guess, which is, I suppose, an issue facing all you guys right now is that if your assets are that good, which they clearly are and with the Utica, they're probably – the portfolio shift is probably going to see an even better aggregate for the whole high-grade portfolio, if you like. Why accelerate or push the growth in this environment when, historically, your shares have been given an equal recognition for debt-adjusted growth; in other words, the shoring of the balance sheet, the strength of the balance sheet and so on, as opposed to growing the top line? I'm just – from a strategy point of view, how are you guys reconciling that? Why not wait a year and then push the growth once things sort themselves out from a commodity standpoint? Roger S. Manny - Chief Financial Officer & Executive Vice President: Well, again, Doug, I mean, it's not like we have a growth number and we're just not telling you. I mean, we just don't have the facts to make that decision, yet. So, in answer to your question, we've never been about growth for growth's sake. And we're not going to start now. We're going to be mindful of the forward curve. We're going to be mindful of the supply and demand balance, our optionality to drill, where the best opportunities are and the balance sheet. So, we're going to triangulate on all of those variables to come up with the right growth percentage. But at this point, it's just too early to predict on what that might be. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Yeah, and I would add in a little bit. Historically – if you go back historically…

I appreciate the full answer, fellows. My follow-up is hopefully a little quicker, because we're only talking about six rigs at the end of the year. Given you're still, I guess, testing the Utica set of your portfolio mix, how should we think about allocation of those rigs as we roll into the end of the year? And I'll leave it at that. Thank you. Ray N. Walker - Chief Operating Officer & Executive Vice President: Well, the Utica, like I said earlier, I think we'll have both of the first two wells online here in the next month or so into the new infrastructure, and we'll be able to produce them consistently at that point. And we're going to need to watch them for a couple of three months or so to get an idea what those wells are going to look like on an ultimate performance standpoint. The third well will get completed sometime early in 2016. So, we'll have three wells. And one of the things I'll point out, when you couple that with some of the recent wells that have been announced around us, it really proves up our math that we've had in the book for over a year now. And I think it really helps delineate our 400,000-acre position, which is the biggest position out there. And it's going to give us a big, big lever going forward for some really capital efficient growth when the time's right. But like Jeff and Roger have pointed out really well, I think, at this point it's just too early to know how we're going to allocate those rigs to potential Utica wells in 2016 or not. I think we'll look at the economics. We'll look at the cost. We'll look at the markets and our new transportation deals and the customers that are coming online. We'll have to look at all of those things to see how that rolls out when we present our budget to the board in December. And then, like we've done every year, we'll continue to manage that budget as we go throughout the year and reallocate capital to the best returns. That's what we've always done and that's part of what's been able to drive our capital efficiency. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: And I would just point out, it's nice that the Utica stacked with the Marcellus and with the Upper Devonian. Really, the Marcellus that we're drilling will hold all of that acreage. So, in essence, it's kind of a free option on what may be the biggest and potentially the best Utica position out there, which could drive capital efficiencies in 2016 and beyond and continue to make us more capital efficient.

Appreciate the answer, guys. Thank you. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Thank you, Doug. Ray N. Walker - Chief Operating Officer & Executive Vice President: Thanks, Doug.

Thank you. Our next question comes from Jon Wolff. Please proceed with your question from Jefferies. Jon, your line is live.

Hello. It was on mute. Good morning. How are you? Ray N. Walker - Chief Operating Officer & Executive Vice President: Good morning, Jon. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Good morning.

Okay. Few things, since I'm getting a tremendous amount of questions, maybe we could just clear up. So, number one, on – a little bit of confusion out there on Marcellus versus Utica. And my response has been that there's quite a long inventory, a very differentiated inventory, in the Marcellus that is highly capital productive and people are thinking why does Range need Utica right now. I completely understand why you want to test the potential. I guess, so just thinking about that and the high rates of the wells and the added midstream infrastructure or the takeaway from the pads, how does that sort of color your view, or is it – I assume it's a low capital item that may kick in over time. And related to that, CONSOL reported a very strong well test in Westmoreland, which is kind of in around your acreage. Any reactions to that? But the bigger one is just the capital productivity returns at this point given your just huge Marcellus inventory. How do the two compete, and how do you think about that? Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Yeah. Let me start, and Ray or Roger might chime in. You know, we agree. I mean, the low-risk, high-quality, strong return is the Marcellus. That's where we're focused and that's where – 95% of our capital is going into that. It's important, we think, to drill a few wells, and we picked three to give us a feel for what the Utica could be; plus, like Ray said, it's encouraging with the well in Westmoreland County and the ETP well. Actually, you can see it on our website. I think they're still up there. Bill Zagorski did a presentation with SunTrust that's much more detailed in…

Right. Right. I'm just – just wanted (47:02) – yeah. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: (47:03) Okay, Jon.

Is the messaging really that – I mean, is this going to be potentially a 10% capital item next year? I would assume less than that. I mean... Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: It's too early to say. Ray N. Walker - Chief Operating Officer & Executive Vice President: Yeah. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: I know we're driving you guys crazy a little bit. We think about those things hard, but we actually try to factor in the most recent data as we go into the year and most prudently allocate capital to where it's best for the company.

Okay. That's fair. And on the Westmoreland results just on a closeology basis, or however you want to think about it, what does that tell you about some of your more eastern acreage? Ray N. Walker - Chief Operating Officer & Executive Vice President: Well, if you – like Jeff said, if you look at on our website, there's a presentation that Bill Zagorski made at a SunTrust conference. And on page five, there's a great map and has that well and the recent EQT well highlighted. And if you look at the map, it fits right in with what we've said all along. And if you see the outlines on the map, you'll see we've got a considerable amount of acreage offsetting both those wells. So, again, it helps just prove up what we've been saying for some amount of time. We've got 400,000 acres that we think is highly prospective. And as time is going forward, it's just getting better and better. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: We probably have the largest position, and the good news is it's stacked right underneath our high-quality Marcellus. And there's still good Upper Devonian on top of it. Yeah, it all helps.

Two more quick ones on – I think I get the concept around the weak NGL realization in the field, like you had to deal with other ways to evacuate, like rail, which we're hearing $0.25 to $0.30 cost. Obviously, it's transitory for Range, but is that – I know you got some sales into Marcus Hook, but I imagine it was a small number. As you – as the Mariner East gets commissioned, my guess is that that $0.25 falls to something less than $0.10. Is that fair? Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Well, I'd answer it this way. It's – again, we have – we're the only producer that has a position on Mariner East I, and we have 40,000 barrels per day, 20,000 barrels per day of propane, 20,000 barrels per day of ethane. The 20,000 barrels per day of propane covers basically all of our propane production. And we've said, and we still believe, when you consider – take Mariner East, Mariner West, and our whole portfolio, once that's up and running, and Sonoco is still saying end of the third quarter, a little commissioning, so call it early fourth quarter, on an annualized basis, it's about a $90 million uplift for us net of transportation; about half of that is savings on the transportation side on propane. So, hopefully, that's enough clarity into what that looks like.

Yeah. And last one on the – yeah. Go ahead. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Oh, and, again, don't forget Spectra. That's August 1 of this year. So, that's like next week, the 200 million cubic feet a day. That takes a huge portion of our production out of M2 into a better market and we've hedged that uplift, which is – it will be a nice uplift for us. And again, we have – we're an anchor shipper. We have a huge part of the volume on that project, 200 million cubic feet per day.

Right. Last one. When I saw you last time, you talked about there being at least a small arb between Mont Belvieu to Europe, or rather versus – Mont Belvieu to Europe versus Marcus Hook to Europe. Do you feel good about being able to at least market those propane barrels overseas?

Yeah. John, this is...

Just in terms of liquidity?

This is Chad Stephens. Yeah. One of things we're excited about is the ability to take advantage of any available arbs. To date, we've been selling the propane on what they call handy ships, very inefficient loading, less barrels. You've got to use more ships. Transportation costs are higher. Once Mariner East is in service, we'll be loading VLGC ships, about 500,000 barrels per ship, and we'll be taking advantage of the arb between Rotterdam, the ARA Rotterdam Index, South America, Mont Belvieu, and the FEI Index in Asia. And that's both – you can take advantage of either lower transportation costs and/or better index prices as you play those arbs around the world. And so, we're real excited about the ability to do that. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: And we think we'll get better pricing. The $90 million does not include any uplift on pricing. That's just counting the transportation savings and the other contracts. So it could be better than that, and we expect that it will be better than that.

Got it. I had one more, but I forgot it. So that was long enough. Thanks so much for the color. Ray N. Walker - Chief Operating Officer & Executive Vice President: Thanks, Jon.

We are nearing the end of today's conference. We will go to Blaise Angelico of IBERIA for our final question.

Hey. Good morning, guys. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Good morning.

Just one quick thing. Can you talk about well costs and where service prices are trending? Do you see any additional relief coming over the balance of the year? And then, second, I know you don't have long-term service contracts in place. Do you maybe step in now and lock in that lower service cost with long-term contracts? Just kind of curious as to how you guys are thinking about all of these given the macro environment. Ray N. Walker - Chief Operating Officer & Executive Vice President: Well, great question, Blaise. The service costs have clearly come down a lot this year. And like I said in my prepared remarks at the beginning of the call, on an apples-to-apples basis, when you look at what we've seen the first half of this year compared to the second half of last year, and you just pick Southwest PA, for instance – some areas are more, some are less, but just pick Southwest PA. We're 25% or more less total well cost. And that's a range of all sorts of things: less cost for the drilling rigs, frac costs coming down, directional drillers, all of that sort of thing. And we are still seeing some of those prices come down because, like Jeff said in his remarks at the beginning, the rig counts are down in the Utica by 66%. They're down in the Marcellus by, what, over 50%; I think close to 55% now. The other basins are seeing the same kind of thing. So there's a lot of competition out there. The service providers are having to really pick the people they want to work for and really having to hammer down on their suppliers. So, you're seeing this continual bump down of lower cost, going all the way…

Appreciate the color, guys. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Thank you. Ray N. Walker - Chief Operating Officer & Executive Vice President: Thank you.

Thank you. This concludes today's question-and-answer session. I'd like to turn the call back over to Mr. Ventura for his closing remarks. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: The first half of 2015 has been challenging for Range and our industry. The good news for Range is that we have two significant marketing events that are projected to commence in the second half of the year, which are Spectra's Uniontown to Gas City project and Mariner East I. Combined, they should result in a significant increase to our netback price we receive for our gas, ethane and propane. We're on track to spend approximately $700 million less in 2015 than 2014 and grow our production volumes 20%. We believe that we'll have the most capital efficient growth versus any of our Appalachian peers on a corporate basis. Importantly, with our 1.6 million acre of stacked pay potential in the Marcellus, Utica and Upper Devonian, we have the option to drill dry, wet gas or super-rich acreage since about 900,000 net acres are dry and the rest is split between wet and super-rich. In essence, this gives us a portfolio within our portfolio. Coupling this resource base with our capital discipline and diversified portfolio of marketing arrangements, which gives us multiple options that are our competitors do not have, Range is positioned to create value as we move forward into an expected better market that balances supply, demand and infrastructure. Thanks for participating on the call. If you have additional questions, please follow up with our IR team.

Thank you for your participation in today's conference. You may disconnect at this time.