Welcome to the Range Resources Second Quarter 2016 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 facts are forward-looking statements. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements. Additionally, nothing on this call will constitute an offer to buy or sell or a solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval in connection with the previously announced proposed business combination between Range and Memorial Resource Development Corp. After the speakers' remarks there will be a question-and-answer period. At this time, I would like to turn the call over to Mr. Laith Sando, Vice President, Investor Relations at Range Resources. Please go ahead, sir.

Thank you, operator. Good morning everyone, and thank you for joining Range's second quarter earnings call. The speakers on the today's call are Jeff Ventura, Chief Executive Officer; Ray Walker, Chief Operating Officer; and Roger Manny, Chief Financial Officer. Hopefully you've had a chance to review the press release and updated Investor Presentation that we've posted on our website. We'll be referencing some of the slides this morning. We also filed our 10-Q with the SEC yesterday. It's available on our website under the Investors tab, or you can access it using the SEC's EDGAR system. Before we begin, let me also point out that we'll be referencing certain non-GAAP measures on today's call. Our press release provides reconciliations of these to the most comparable GAAP figures. In addition, we've posted supplemental tables on our website to assist in the calculation of these non-GAAP measures and to provide more detail on both natural gas and NGL pricing. With that, let me turn the call over to Jeff. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Thank you, Laith. We remain very excited about our pending merger with Memorial, but since we don't expect to close the transaction until mid to late September, Ray and I will primarily focus our comments on the results, opportunities and plans for our Marcellus operations. In the next quarterly call we expect to be able to talk more about plans for the combined company. I'll begin by reviewing what Range accomplished during the second quarter, then I'll discuss some of the key attributes we have that set us up for continued success. Range's ability to consistently drill low-cost, high-return wells across our acreage in the Marcellus, as well as focus on driving down unit costs, resulted in strong operating results for the quarter.…

Thank you, Mr. Ventura. The question-and-answer session will now begin. And our first question comes from Doug Leggate with Bank of America Merrill Lynch. Please go ahead.

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

Jeff, it's interesting you described the quarter – or Roger described the quarter as lackluster. But the outlook is obviously still fairly – could be whatever you want it to be in terms of growth rates. And I know I ask this question a lot, but what's the expanded asset base? Can you just help guide us a little bit as to how you think about where the balance sheet ranks relative to the two major new areas that you're going to have in the expanded portfolio? And do we think about Range getting back to the sort of legacy 20%-plus growth rate that you used to talk about? Just if you could frame how management's thinking about a longer-term picture. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Yeah. Let me start shorter-term and then move out longer-term. But I think we've got, I think, two really high-quality assets and I would argue they're the two best gas assets in the U.S., with room to improve both marketing advantages, location, the whole thing – where the infrastructure is; differentials on Memorial, all those types of things, really positive. And the ability – not only are they good, but we think we can make them better. So we're in good shape this year. But I think when you look forward, I think a couple of things will happen. One, I think you'll see continued improvement as we go forward. And we've got a great track record of doing that. It's really early. And Doug, as you know, we don't set our 2017 capital budget until December. But when we look at current forecasts and current strip pricing, where things are today, with our current estimates, we think the combined company would have an organic growth rate of about…

Yeah, it's – spending within cash flow I think is the piece I was really trying to get at. So we should basically consider the balance sheet, the deleveraging of that obviously which occurs at the end of this year, are you then comfortable that the balance sheet is where you want it to be? I just kind of want to see how that ranks relative to your growth aspirations. Roger S. Manny - Chief Financial Officer & Executive Vice President: Yeah, Doug, this is Roger. I'll take that one. And first of all, I just want to mention that my comment was that from a revenue and profitability perspective, it was a lackluster quarter. I think from an operations and cost control standpoint, it was a terrific quarter. I just want to make that clarification.

Right. Roger S. Manny - Chief Financial Officer & Executive Vice President: But as for the balance sheet...

That's kind of what I was getting at. Right. Roger S. Manny - Chief Financial Officer & Executive Vice President: Okay. As for the balance sheet, I mean, we're real happy with where we sit right now. As I mentioned, debt is lower at the end of the quarter than the beginning, three consecutive quarters running. Aggregate debt lowest it's been in four years, even though production continues to grow healthily. I think you're looking at a balance sheet where, with the Memorial transaction, the leverage ratio, that's EBITDAX, will be well below four, and I think that's where it needs to be. And with positive recycle ratios of two times for both companies on an unhedged basis, what that's telling me is that we'll be able to grow within cash flow powerfully, and have the optionality to either bring the leverage down if that's what's called for, or expand growth if that's what's the better option.

Thanks, fellas. I'll let someone else jump on. Thank you. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Thanks, Doug.

Our next question comes from Pearce Hammond with Simmons Piper Jaffray. Please go ahead. Pearce Hammond - Piper Jaffray & Co. (Broker): Hi. Good morning, guys, and thanks for taking my questions. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Good morning. Roger S. Manny - Chief Financial Officer & Executive Vice President: Good morning. Pearce Hammond - Piper Jaffray & Co. (Broker): My first question is, it looks like you're completing eight more wells this year, just curious what's driving that? And I assume that's not going to have an impact on your 2016 production, but is going to certainly help your 2017 trajectory. Ray N. Walker - Chief Operating Officer & Executive Vice President: Yeah. It's a good question, Pearce. And a lot of it is the operational efficiency and the reductions in capital that we're seeing. What I talked about for the water: $18 million savings; $9 million worth of savings in facilities. It's what we do every year, is we take those improvements, and whether it's drilling more feet of lateral for less cost, or whether it's fracking more stages in a day, or combined with the fact that the wells continue to do better than we project and flatter declines and shifting more to dry. All of that stuff helps us optimize our capital allocation, if you want to look at it that way. And what we generally end up doing is we either drill more wells, complete more wells on the end of the schedule, which means we may turn those wells, those eight more wells in line, but they'll probably be really close to the end of the year, which really impacts our growth in 2017 and helps set that up much better. So that's typically what happens every year. Pearce…

Our next question comes from Subash Chandra with Guggenheim Partners. Please go ahead.

Yeah, hi. Slide 11, 2018 FT capacity, do you have a guide as to what that might look like? Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: I'm not sure exactly what the question is. Well, I'm on slide 11, but...

Yeah. So 2017 is an average of 1.375. Do you have an 2018? Early look? Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: No, we...

It'll be the same. This is – Subash, this is Chad. On slide 11, you see average for 2017 is 1.375 Bs a day. 2018 will be the same, because that number includes Rover at the end of the year. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: The...

It's average. So it would be higher, yes. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Yeah. It actually goes up some, because Rover comes on line right at the end of the year. So this is a yearly average. So our yearly average would be higher and going up. I think the other thing our marketing guys have done a good job of is, we have kind of right-sized firm transportation, plus we were a first mover, so we have right-sized transportation at a lower cost than our peers. And I think we still think ultimately, long-term, capacity tends to get overbuilt in the basin. So we didn't over-buy. So I think we're in good shape for our projection. It's a good match of transportation to our growth profile and what we have. Ray N. Walker - Chief Operating Officer & Executive Vice President: Yeah. And it's a very diverse set of take-away capacity, so that we're not dependent upon any one particular project, be it on time or not. I mean, we believe that all the projects we've got, looking at us going forward, are definitely on time, but we're not totally dependent upon any one of them. So I think our team has done an excellent job of spreading that out in that diverse portfolio. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: On slide 11, another key part of that bottom line. As transportation, as gas continues to move out of the basin, again, at the end of 2016, over 70% and at the end of 2017, over 80%, it's probably closer to 85% when Rover kicks on. You can see our – the estimated Marcellus differential to NYMEX improves. So we expect improving natural gas prices, better differentials, better net-backs going forward as we continue to move gas out of the basin. A lot of that incremental capacity goes to the Gulf Coast where the demand's going to be. And I think it's important to note as well on our NGLs, we only had a partial year, really; Mariner East started up May 1.

First quarter. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Yeah. Partial quarter. Partial year. So as you look into 2017, the pricing should get better for NGLs as well. We'll have a full year of Mariner East. We have a new condensate agreement, I think Ray mentioned, so we'll have a full year of that. The other thing is, again, we expect natural gas prices to get better going forward. But there's a good story brewing for NGLs as well. A lot of ethane demand coming on, Range being the first company to export ethane by ship with – in partnership with Sunoco and INEOS. But Enterprise is starting to export a lot of ethane later this year, coupled with all the petrochemical demand that comes on in 2017 and 2018. So the U.S. is the biggest propane exporter, will be a large ethane exporter. And increasing demand. So there's good story brewing, not just for natural gas but for NGLs and for, specifically, for Range because of the specific agreements we have. Then back to the macro as more ethane comes out of the gas stream, it helps a little bit on the supply side as you take the ethane out of the gas stream.

All right. If I could just ask you about Northeast Marcellus, the volumes were down. Understandably, there were no completions. I suspect that goes back into growth mode. And I guess what I'm getting at is, as you look at the optionality of your portfolio, should we read the increase in take-away as a desired growth rate over time? Or do you think of de-emphasizing Northeast Marcellus over time to where you really want more optionality instead of growth, if you have to rank one versus the other? Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Well I think if we rank anything it'd be returns. So we're not focused on growth as much as we're focused on returns. Growth just kind of falls out of that. Having a portfolio is good and having multiple choices is good, but it's a combination of where do we think we're going to get best returns with time. And we'll allocate capital that way. And when we close on Memorial, it will give us another good choice because there's high returns there. So we'll have the ability in the Marcellus Northeast, Southwest. We'll have the ability of what drives super-rich. We'll have the ability of Lower Cotton Valley. And I think having more high-quality choices ultimately will result in stronger returns with time.

Okay. Thank you. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Thank you.

Our next question comes from Jeoffrey Lambujon with Tudor, Pickering, Holt. Please go ahead. Jeoffrey Restituto Lambujon - Tudor, Pickering, Holt & Co. Securities, Inc.: Thanks. Good morning. Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Good morning. Jeoffrey Restituto Lambujon - Tudor, Pickering, Holt & Co. Securities, Inc.: Sorry. The three pads you highlighted with the EUR projections look to be around 20% to 30%-plus better versus your average curves in those areas. I think you mentioned two of them being near existing pads, and having permits to drill 42 more wells on existing pads. Is that the opportunity set for this type of high grade drilling in the near term? Or to what extent can you high-grade further in 2017 and 2018 to your best acreage where you'll find that kind of outperformance? Ray N. Walker - Chief Operating Officer & Executive Vice President: Well, that's a great question, Jeoffrey. And we're really doing that all the time. We're continuing to improve completion designs and targeting and reservoir modeling, and I think you've seen that quarter after quarter after quarter where we've continued to develop better and better well performance on a normalized basis, or however you want to look at it. We have lots of opportunities in all those areas mentioned. And remember, we have a huge position across southwest PA. And we talk about super-rich, wet and dry, and each one of those by their selves are larger than most of our peers' total position. And when you break those positions down internally, each one of those positions has lots of different unique designs and unique reservoir models and unique targets and all that. And so we're always trying to manage – trying to allocate our capital to the very highest return wells, but…

Our next question comes from Neal Dingmann with SunTrust. Please go ahead.

Good morning, guys. Say... Ray N. Walker - Chief Operating Officer & Executive Vice President: Good morning.

...Ray, you and Jeff and the guys seem to be highlighting a little bit more this time than in the past the return into some of the existing pads, like you mentioned on slide 42. I'm just wondering, how do you think about this just simply as far as improved potential well returns, and then versus the need to hold acres to drill? Because it certainly seems you have tremendous opportunity to come back and save costs and, obviously, improve returns here. So I'm just wondering, how do you balance this with the need to hold acreage? Ray N. Walker - Chief Operating Officer & Executive Vice President: Well, at the end of this year – we've talked about for the last several years how we had a pretty significant land budget. And I can't quote the numbers off the top of my head, but we've significantly reduced our land dollars over the last couple of years for sure. At the end of this year we finally reached that point where we're largely HBPed. There's always going to be a little bit of acreage out there, but it's largely done. We virtually have no acreage at risk at the end of this program this year. So going forward, that is much less of a factor than it's ever been. And so we will do what we've always done, is first look at returns and quality and room in the gathering system and all of those different things we need to look at. What – the point I'm trying to get across in talking about the existing pads is, we have an additional opportunity, and I believe a significant advantage over our peers in the area, in that we have all of that existing infrastructure that we can go back to. We, in fact, even have permits in hand, where we could almost instantly put rigs on those locations and in a couple of months have wells on-line. I think that's a very unique advantage. We're not saying that's exactly where we're going to go next year; I think you're just going to see a mix of that, plus new wells. We've also got some wells in brand new areas that are making four, four and a half Bcf per 1,000 foot, at $5 million in some cases. That's pretty impressive economics, and those wells will greatly compete with going back onto an existing pad. You can save up to $800,000 or $900,000 on a well on an existing pad. It still may not compete with some of these really prolific areas that we're able to develop today. So it's always a mix of allocating that capital amongst that. But the good news is, going forward, we don't have that anchor of needing to HBP acreage around our neck any further, now going forward.

Wow, that's great to hear. And then just a quick follow-up. Just on that slide 47 you guys talk about that third Utica well appearing to be not only one of your best, but obviously one of the best plays. Even with that said, you guys mentioned in your prepared remarks that these returns you don't think are still competing quite yet with some of these great Marcellus returns. So is it just simply a return question to decide when you start or if you start drilling more Utica wells, given you are holding that with Marcellus? I guess my question is, are you looking at just simply returns, or is there more to that? Ray N. Walker - Chief Operating Officer & Executive Vice President: It's basically that, returns. We think we could do an 8,500-foot lateral in the Utica today for about $14 million. But again, that's two and a half times more cost for essentially the same reserves as our dry Marcellus, some of the really prolific stuff we're developing in the very same area. So we have a huge inventory of Marcellus left to do. We have hundreds and hundreds, if not thousands, of wells to drill. And so I think that it really is going to be a matter of returns. We're going to continue to look at it. We may or may not drill a well next year. We haven't made those plans yet. But I think we'll continue to develop the reservoir models. And I think there will be a point in time where it will definitely be a complementary development. You'll see us kicking that in, whether it's a new contract to sell gas somewhere or whatever. But I think that for the current time, it's just simply, it can't compete with the Marcellus today for us. I think if you don't have Marcellus like we have and that's all you got, then that's what you do.

That makes sense. Great details. Thanks, Ray.

Our next question comes from Ron Mills with Johnson Rice. Please go ahead. Ronald E. Mills - Johnson Rice & Co. LLC: Good morning. Hey, just a quick follow-up on ... Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Good morning. Ronald E. Mills - Johnson Rice & Co. LLC: ... an earlier question about the improved productivity per lateral foot in each of those areas you highlighted. How does that compare with your comment, Jeff, about able to grow about 10% out of – while being internally funded? In other words, is that growth within your cash flows based on what your average 2016 program is? Or – and do those results point to even a better 2017 to 2019 growth profile because of that recoverability? Jeffrey L. Ventura - Chairman, President & Chief Executive Officer: Yeah. It's a good point. What I said in there is, I said based on our current forecasts and utilizing current strip pricing, we'd get growth of about 10%, spending at or near cash flow. As we continue to see improvements with time – and you're talking about going out there to 2018, 2019 and beyond – I expect – I agree with Ray. I think we're not at the end of our efficiency. So I think as we continue to extend laterals and optimize and hone in on better areas and infrastructure build-out, all those things, I think we can get better with time. All of that would allow for increased cash flow for the same dollars spent, which would allow us to either accelerate production and growth rate or balance sheet or whatever we choose to do with that. But again, we also expect gas markets and NGL markets to improve with time, so that would say that we've…

Due to technical difficulties on the part of their service provider, Range Resources has elected to end the call at this time. If you have additional questions, please follow up with the Range Resources IR team. Thank you.