# FELLOW SHAREHOLDERS

_Source: `DeepSeekOCR_Ardian_pruned_1k/energy-oil-gas-e-p/NYSE_RRC_2020/NYSE_RRC_2020.mmd` · pages 1-7_

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FELLOW SHAREHOLDERS

2020 was a challenging year for all of us; however, despite unusual global events, Range successfully delivered on several key strategic objectives. The industry, and Range, overcame a historic shock to demand, driven by abrupt shutdowns across the world. As a result, the U.S. experienced the lowest average oil price since 2003 and the lowest average natural gas price since 1995. Even with these commodity price headwinds, Range made steady progress on financial and operational objectives that we believe will carry long-term benefits and position Range to generate sustainable free cash flow as natural gas and NGL markets come into balance. Looking ahead, our focus will remain on safe, efficient, and environmentally-sound operations, prudent capital allocation, and generating sustainable returns to shareholders.

Operationally, Range delivered a 2020 production plan at maintenance levels anchored by improvements in capital efficiency, and aligned annual capital spending with operational cash flow. The quality of our Marcellus Shale leasehold and low base decline from existing wells allowed Range to adapt its investment program throughout 2020. Range began the year with a capital investment program targeting flat production with a budget of \(520 million. However, reacting quickly to changing commodity prices, Range safely and efficiently completed a revised 2020 operational plan, investing \)411 million in capital, or 21% better than originally budgeted and over 40% less than 2019, while maintaining the original production plan. 2020 marked the third consecutive year Range successfully executed operational plans with capital spending under budget, which reflects the commitment our team has to achieving cost leadership and disciplined capital spending. As a result, Range continues to be among the most efficient natural gas producers in the country, as measured by both total well costs per lateral foot and maintenance capital requirements per unit of production.

Range realized the benefits of operational efficiencies for both drilling and completions, used innovative and emission-reducing technologies such as an electric powered fracturing fleet, and consistently focused on reducing costs throughout the year. In 2020, Range improved and expanded our water reuse program, resulting in reduced water logistics costs. Through creative initiatives, we achieved a record low cost per barrel of water and a 36% reduction compared to 2019. Range's water reuse program provides for lower operating cost and is an important component of our broader environmental efforts by reducing the volume needed from freshwater sources. Similar progress was captured by reducing the cost associated with water transportation, resulting in a 75% reduction in freshwater transported by truck. Reduced trucking not only lowers cost, but it also means less road maintenance, reduced emissions, and fewer trips by our service partner drivers.
Range continued to advance environmental efforts, becoming the first North American producer to set a goal of net zero direct emissions. To that end, we continue to harvest the benefits from having a large, contiguous acreage position in southwestern Pennsylvania. The efficient practice of moving back to pads with existing wells has become a fundamental and repeatable part of our program. In 2020, more than half of Range's drilling activity was located on sites with existing wells, allowing us to reduce land impacts, while reducing well costs and maximizing existing infrastructure utilization. It also complements the use of dual-fuel drilling rigs and electric fracturing fleets utilized in Range's operational program, as the energy source (natural gas) needed to run the equipment is easily accessible. Our contracted electric frac fleet pumped over 2,000 frac stages in 2020 and, in doing so, eliminated the use of more than 3.8 million gallons of diesel while running on 100% of Range's field gas, which is a significantly cleaner fuel source. Utilizing these technologies versus a conventional fleet results in a significant reduction in emissions and costs, while also reducing noise levels during the completion process.

Range's cash unit costs have also seen steady improvement over the past several years, and 2020 was a continuation of that multi-year trend. We ended 2020 achieving all-in cash costs of \(1.84 per unit of production, driven by lower gathering, processing, transportation (GP&T) and direct operating expenses. GP&T expenses have moved lower through the efficient use and full utilization of midstream infrastructure in southwestern Pennsylvania as well as contractual improvements that will improve further in the coming years. Direct operating expenses continue to benefit from efficient water handling and the sale of non-core legacy properties with higher cost operations. Total cash general and administrative expenses have been reduced by over \)25 million per year since 2018, driven by a 33% reduction in the number of employees following asset sales and workforce alignment with current activity levels. We expect the improvement in cash unit costs to continue

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over the long run, and we remain focused on identifying and executing on further margin enhancement opportunities. Our full-cycle unit cost improvement provides a sound, stable, and competitive base from which to generate material free cash flow. We believe total unit cost levels achieved over the last six months, including capital spending and fully loaded cash unit costs, combined with margin-enhancing liquids pricing, represent a leading breakeven cost among southwest Appalachia E&Ps.

Range took significant strides to further strengthen its financial foundation in 2020, while being cognizant of shareholder ownership and participation in improving commodity prices. In January and August of 2020, we successfully issued bonds, raising $850 million in capital to refinance near-term maturities and bolster liquidity. These bonds are also callable, such that we can redeem or re-finance these notes in the future when economic. In August, we divested our North Louisiana assets, solidifying a lower debt balance at year-end and improving our cost structure, as we focus on our high-return Marcellus assets. Through these steps we reshaped the debt maturity profile of the company and enhanced liquidity while avoiding higher cost forms of capital that would have diluted shareholders. As a reminder, in 2018 and 2019 we were decisive and early to monetize assets, as the first among public peers to sell royalty interests totaling 3.5% in southwestern Pennsylvania and non-core acreage totaling $1.1 billion. The commodity exposure related to royalty sales was retained for shareholders through the subsequent share repurchase program, under which we purchased 10 million shares to date, or approximately 4% of shares outstanding, at a cost of $30 million, or $2.99 per share. We view the sale of $1 billion in assets and subsequent

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repurchase of \(30 million in stock as a careful preservation of shareholder value that enabled substantial debt reduction in the process. Our strategic actions over the last three years have been focused on reducing risk while maintaining and enhancing the intrinsic value of our asset base. We are proud that exposure to our inventory of future development on a per-share basis has been preserved for our stockholders and enhanced by our strategic actions in 2020.

Shareholder value creation through the generation of free cash flow, and its prudent re-deployment, is our primary focus. As we look forward, improving the balance sheet through absolute debt reduction remains a key objective. Our capital budget for 2021 is \(425 million, and based on recent commodity pricing, we expect this program to both maintain current production levels, reduce outstanding debt, and lower our leverage ratio. Despite a challenging backdrop during 2020, Range's liquidity and debt maturity profile were materially improved. These initiatives were achieved while maintaining best-in-basin capital efficiency and doing so in a responsible and safe manner, a core value at Range. We agree with the healthy and more prudent message that appears to have taken root in the energy sector; one of prioritizing shareholder returns and emphasizing sustainable performance. Our Board understands 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. Our Board takes an active and engaged role in monitoring and evaluating the company's performance.

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To do so effectively, we believe a Board must be qualified, independent, and diverse. Range's directors bring a broad set of skills and experience to the Board, and we strive to maintain a diversity of backgrounds and perspectives. Range's Board has an independent chair and an average tenure of five years, indicating the value placed on proper independence, diversity, and effective oversight. Our Board actively engages directly with shareholders as we prioritize the alignment of interests with key stakeholders. An important topic in those direct conversations with stakeholders is Range's compensation framework, as we believe it is essential to align management incentives with evolving shareholder interests and long-term strategic initiatives. Range's incentives are focused on key financial and ESG framework targets, prioritizing returns, balance sheet strength, cost efficiencies, and environmental, health & safety measures.

We want to acknowledge our employees. 2020 challenged our workforce in ways we could not have predicted, but thanks to their ability to quickly adapt, we were able to achieve our goals and have a productive year, all while staying safe. Our commitment to safety, environmental protection, and efficient operations starts with the individuals we have on the Range team. Despite the limitations COVID-19 created, our employees found creative ways to both support and stay connected with the community. At the onset of the pandemic, Range launched our own Community Stimulus Package. This financial assistance program provided more than $100,000 to critical non-profits across our operating footprint. These funds addressed food needs, healthcare assistance, and education resources for local schools.

We continued the success of the Range Resources Good Neighbors Fund, which provided more than \(130,000 to thirty-five local first-responder organizations. Range increased the funds contributed to these groups over the prior year due to the immediate needs the pandemic presented. Range volunteers held the first-ever contactless 2000 Turkeys Telethon and came up with an alternative way to donate funds for the campaign. Over the course of one hour, Range was able to raise a total of \)68,000, which helped feed more than 18,000 people in the region for the Thanksgiving holiday. We are proud to see our employees continuing to positively impact both our company and our communities.

In closing, the well-defined and achievable objective all of us at Range work toward daily is to sustain a highly investible business that will be resilient through cycles, and responsibly create compelling shareholder value. We want to thank our fellow Directors for their leadership, guidance, and commitment to long-term value creation for shareholders. Most importantly, we thank you, our shareholders, for your continued feedback and support.

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GREG G. MAXWELL
CHAIRMAN

JEFFREY L. VENTURA
CHIEF EXECUTIVE OFFICER
& PRESIDENT

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