# FELLOW SHAREHOLDERS

_Source: `DeepSeekOCR_Ardian_pruned_1k/energy-oil-gas-e-p/NYSE_RRC_2021/NYSE_RRC_2021.mmd` · pages 1-7_

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FELLOW SHAREHOLDERS

In 2021, Range continued its transformational progress toward corporate objectives through capital-efficient operations and disciplined spending, as we reduced financial leverage with record free cash flow. Our stated mission has been to realize the value of Range's world-class asset, paired with a world-class balance sheet, and consistently deliver shareholder returns over our multi-decade core inventory life. We believe Range is in the best position in the Company's history. Following the success of 2021 and the current multi-year outlook, Range has initiated additional returns of capital to shareholders that we expect to maintain and build upon in the coming years.

Range safely and efficiently delivered on our 2021 production plan, producing 2,130 Mmcfe per day during the year by investing $414 million in capital, or $11 million less than originally budgeted. 2021 marked the fourth consecutive year Range successfully executed operational plans with capital spending under budget, which reflects the team's commitment to disciplined capital spending and achieving cost leadership. As a result of the outstanding work from the Range team, we continue to be the most efficient natural gas producer in the country, as measured by total well costs per lateral foot and maintenance capital requirements per unit of production. We believe the latter of these metrics is the most useful and easily compared across commodity producers. Range's 2021 results show total capital spending of $0.53 per mcf, which was the lowest among natural gas producers, and Range expects to deliver the most capital-efficient program among natural gas peers once again in 2022. One of our distinct advantages has been a production base decline of less than 20%, requiring less production to be replaced each year compared to peers. A competitive base decline rate comes from having over a decade of Marcellus production, as well as thoughtful planning of both gathering and compression infrastructure. This translates to a low capital intensity that is unmatched amongst E&P companies, providing Range a solid foundation for generating significant free cash flow and returns to shareholders.

We continue to realize the environmental benefits of Range's consolidated acreage position. In 2021, we further optimized our sourcing and transporting of water, which resulted in increased efficiencies. New records were set for water trucked to location, total reuse water utilized, and the percentage of reuse water used in each completion stage. Range's utilization of third-party water increased by 15% in 2021 versus 2020, with recycled water accounting for over 60% of all water utilized in our operations. The savings associated with our water sharing program, which allows us to recycle water from nearby operators, exceeded $13 million while recycling approximately 150% of Range's produced water volume and significantly reducing the use of freshwater sources. The use of both an electric frac fleet and a dual fuel fleet continued to limit diesel consumption, as clean burning natural gas remained the main source of fuel for our completion operations. In total, we substituted over 4 million gallons of diesel fuel with a net cost savings of $7.8 million. As highlighted in last year's shareholder letter, a contiguous acreage position allows Range to take full advantage of this technology and continue utilizing this type of equipment for our go-forward operations.

During the year, Range announced a combination of our marketing, operational, and ESG efforts by selling responsibly sourced gas (RSG) from Range's assets. We continue to explore various third-party certification options to ensure our future steps align with our external stakeholders, our commercial partners, and our company culture. The RSG market is continuing to evolve, and we believe Range's assets and multi-year ESG enhancements position us well

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to capitalize on this growing demand. We continue to make meaningful progress towards our emissions reduction targets of net zero emissions for scope 1 and scope 2 by 2025. Since 2017, we've achieved a 69% reduction in greenhouse gas emissions intensity, which includes an 86% reduction in methane emissions intensity. In addition, our reported equipment emissions were reduced thanks to an increased frequency of leak detection inspections, commonly referred to as LDAR surveys, which locate and allow us to promptly address emissions in the field. In addition to emission reductions, these efforts have also improved the efficiency and safety of our production facilities.

Range benefited from the steady improvements in commodity prices throughout the year. Range's record free cash flow in 2021 not only speaks to improved commodity prices, but also the hedging decisions Range made through 2020 and early 2021 that allowed us to capture a significant portion of the improved prices for our production. Range finished the year with record free cash flow of approximately $656 million, led by a strong fourth quarter that included our highest quarterly pre-hedge price realizations since 2014.

Hedging results and strategy have understandably been a focus for the industry, as we all assess near-term opportunity cost while also shifting future strategies to retain participation in projected improved prices. Range made the decision in 2020 to pivot toward collar structures for the 2021 and 2022 natural gas hedge book relative to what were historically swap-heavy programs. Near-term, the strategy of reducing risk through hedging remains part of our plan but will evolve over time with Range's strengthening financial profile.

NATURAL GAS HEDGING STRUCTURE-2016 TO PRESENT

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and changing market supply and demand dynamics. When prices are attractive such that Range can protect returns that exceed most other industries, we may elect to hedge a portion of production to support the commitments of free cash flow, balance sheet improvement, and prudent returns of capital to shareholders. In 2022, we seek to deliver top tier returns on capital employed, to generate free cash flow directed to absolute debt reduction and shareholder returns, and to be balanced in risk management to retain the benefit of improved industry fundamentals.

With the significant debt reduction progress made to date, strong expected cash flow in 2022 and 2023, and a supportive hedge book that mitigates price risk while retaining attractive exposure to higher commodity prices, Range expects to reinstate its quarterly dividend in mid-2022 at \(0.08 per share, or \)0.32 annually. Our planned dividend is a two-fold message to stakeholders: first, it is a commitment to durable, tangible shareholder returns from business earnings, and second, it is a commitment to maintain a balance sheet that can sustain shareholder returns through commodity price cycles. Of perhaps greater importance is the approval for an expanded share repurchase program, now with aggregate capacity of $500 million. We believe this is a powerful tool to take advantage of what we see as an attractive investment opportunity, given the significant variance between the value of Range's inventory and production versus equity share price. For example, with year-end PV10 (using strip pricing) of $12.7 billion, which equates to roughly $40 per share net of debt, we believe share repurchases are a compelling investment. Notably, this comparison is to a PV10 value that ignores the significant value

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of decades of quality inventory beyond the five-year development window included in SEC proved reserves. Our commitment is to remain flexible and adapt to market conditions, project returns, and prudent reinvestment with the repurchase program. We believe this provides a compelling option for use of free cash flow.

Shareholder value creation through the generation of free cash flow, and its prudent re-deployment, is our primary focus. Our capital budget for 2022 is \(460 to \)480 million. We expect this program to maintain production in the range of 2.12 to 2.16 Bcf equivalent per day, and to materially reduce outstanding debt and lower our leverage ratio throughout the year, based on recent commodity pricing. We believe that an appropriate debt level for the Company is between \(1.0 and \)1.5 billion, which is an achievable target at current strip pricing over the coming quarters. This range of debt is consistent with the balance sheet targets described in last year's proxy and provides a financial foundation which will enable Range to be both resilient and opportunistic through commodity price cycles. We agree with the strategic approach that appears to have taken root in the energy sector: one of prioritizing safe operations and shareholder returns, and emphasizing sustainable performance. Our Board, management team, and employees understand that sustainability is about creating long-term value, which includes a commitment to environmental stewardship, positively contributing to the communities where we operate, and underpinned by strong corporate governance. Strong governance creates accountability, encourages transparency, guides strategic focus, and aligns interests with stakeholders.

As the world continues to move towards cleaner, more-efficient fuels, we are firmly convinced that natural gas and NGLs will be the affordable, reliable, and abundant supply that helps to power our everyday lives and provide feedstock for essential products that we all use. These resources will help billions of people improve their standard of living and reduce their reliance on coal, biomass, and other more carbon-intensive fuels. We believe Appalachia natural gas and natural gas liquids are well positioned to meet that current and future demand. Within Appalachia, Range will be among those leading the charge on emissions intensity, capital efficiency, and transparency, which are all core to generating sustainable long-term value for shareholders.

We want to acknowledge our great employees. Our commitment to safety, environmental protection, and efficient operations starts

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with the individuals we have on the Range team. Through pandemic-related challenges, our employees found creative ways to support and stay connected with the community both in-person and virtually. For example, Range hosted the second annual 2000 Turkeys Telethon in 2021. The telethon was successful in raising money for the Greater Pittsburgh Community Food Bank, which went directly to help feed families in Washington County during the holiday season. The hour-long live telethon featured music, cooking demonstrations, and interviews with elected officials, community leaders, and business owners, all while our employee volunteers worked the phone bank collecting donations and pledges. This event, while virtual, provided a unique opportunity to bring the community together to support each other.

Range's community partnerships also go beyond financial support. Over the years, we have taken a vested interest in hearing from our partners, and we know that lending a helping hand makes a significant difference to them. During the spring, employee volunteers partnered with six Washington County townships to focus on environmental improvement opportunities. These beautification and revitalization projects served to celebrate Earth Day with the communities at the core of our operating footprint. Our team's efforts span year-long projects, including planting 1,200 tree saplings near a producing well site, stream cleanups, and local park beautifications.

In closing, we will repeat our belief that Range is in the best position in the Company's history. The well-defined and achievable objective all of us at Range work toward daily is to sustain a business that will be resilient through cycles, return capital to shareholders, and responsibly create compelling value. We want to thank our fellow Directors for their guidance and commitment to long-term value creation for shareholders. Most importantly, we thank you, our shareholders, for your continued support.

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GREG G. MAXWELL
CHAIRMAN

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JEFFREY L. VENTURA
CHIEF EXECUTIVE OFFICER
& PRESIDENT