Range Resources Corp

Natural and catastrophic events · Natural disasters and extreme weather

Changes in weather patterns and events, including natural disasters such as hurricanes, floods, wildfires and tornadoes affect natural gas, NGLs and oil prices and our operations may be impacted by adverse weather conditions or natural disasters.

Economic and market conditions · Market volatility and financial crises

Disruptions or volatility in the global finance markets may lead to a contraction in credit availability impacting our ability to finance our operations. A significant reduction in cash flows from operations or the availability of credit could materially and adversely affect our ability to conduct our planned operations.

Geopolitical and trade · International conflicts and tensions

The continued operation of export facilities to supply foreign markets with natural gas and natural gas liquids and the ability to transport the product to markets due to shipping restrictions, armed conflict or terrorist threats and attacks affects commodity prices.

Natural and catastrophic events · Terrorism and security threats

Terrorist attacks and the threat of terrorist attacks, whether domestic or foreign attacks, as well as military or other actions taken in response to these acts, could cause instability in the global financial and energy markets and could materially and adversely affect our business and results of operations.

Tax and financial reporting · Tax compliance and changes in tax law

U.S. or state tax legislation may adversely affect our business, results of operations, financial condition and cash flow. Legislation is periodically proposed that could make significant changes to United States federal income tax laws and could include the elimination of certain United States federal income tax benefits currently available to oil and gas exploration and production companies.

Industry regulation · Regulatory compliance and changes

The natural gas industry is subject to extensive regulation. Natural gas, NGLs, oil and other hydrocarbons, as well as our operations to produce these products, are subject to extensive laws, regulations, and ordinances at the federal, state and local level.

Industry regulation · Safety and environmental regulations

Environmental regulations and pollution liability could expose us to significant costs and penalties. We may incur significant costs and liabilities in complying with existing or future environmental laws, regulations and enforcement policies or initiatives.

Capital structure and performance · Financial performance volatility

Our earnings and cash flow will fluctuate from year-to-year due to the variable nature of commodity prices. If our cash flow and capital resources are insufficient to fund our debt obligations, we may be forced to sell assets, seek equity sales or restructure our debt.

Credit and liquidity · Banking relationships and credit facilities

We are also exposed to some credit risk related to our bank credit facility to the extent that one or more of our lenders experiences liquidity problems and is unable to provide necessary funding to us under our existing revolving line of credit.

Credit and liquidity · Liquidity and cash flow constraints

If our access to capital were limited as a result of various factors, which could include a decrease in revenues due to lower natural gas, NGLs and oil prices or decreased production or deterioration of the credit and capital markets, we would have a reduced ability to fund our operations and replace our reserves resulting in reduced financial flexibility.

Credit and liquidity · Access to capital and financing

Financial risks exist for fossil fuel energy companies, including natural gas producers, as institutional lenders who provide financing to fossil fuel energy companies are at times under pressure from activists and are the subject of lobbying to not provide funding for fossil fuel production.

Market and investment · Asset valuation and impairment

Information concerning our reserves and future net cash flow are estimates and may not match our results. To the extent we experience a sustained period of reduced commodity prices, there is a risk that a portion of our proved reserves could be deemed uneconomic and no longer be classified as proved.

Reputation and brand · Esg environmental social governance performance

Companies which do not adapt to or comply with investor or stockholder ESG expectations and standards or which are perceived to have not responded appropriately to the growing concern for ESG issues may suffer from reputational damage and the financial condition, results of operations or cash flows of such a company could be materially and adversely affected.

Reputation and brand · Brand damage and negative publicity

Such activist efforts could result in negative publicity about our business or the oil and gas industry in general, increased costs of doing business, reduction in demand for our products and other adverse effects on our ability to develop our properties and expand production.

Supply chain and procurement · Transportation and logistics disruption

The disruption of third-party facilities due to maintenance, mechanical failures, accidents, weather and/or other reasons could negatively impact our ability to market and deliver our products. The disruption of certain third-party natural gas processing facilities could materially affect our ability to market and deliver natural gas production.

Supply chain and procurement · Raw material availability and cost volatility

We use a significant amount of water in our hydraulic fracturing operations. Our inability to locate sufficient amounts of water or dispose of or recycle water used in our operations may have a material adverse effect on our financial condition, results of operations and cash flows.

Core operations · Quality control and product defects

Risks that we face while drilling horizontal wells include landing the wellbore in the desired drilling zone, drilling the wellbore to the full planned length, staying in the desired drilling zone while drilling horizontally through the formation, running casing the entire length of the wellbore.

Core operations · Safety incidents and operational accidents

Our business is subject to operating hazards that could result in substantial losses or liabilities that may not be fully covered under our insurance policies. Natural gas, NGLs and oil operations are subject to many risks, including well blowouts, craterings, explosions, uncontrollable flows of oil, natural gas or well fluids, fires, pipe or cement failures, pipeline ruptures or spills.

Cybersecurity and data protection · Third party data security and vendors

A cyberattack on a vendor or a service provider could result in supply chain disruptions, which could delay or halt development projects.

Market position and competition · Competitive pressure and market share loss

Competition in the oil and gas industry is intense, making it more difficult for us to acquire properties, market products and secure and retain trained personnel. Many of our competitors possess and employ financial, technical and personnel resources substantially greater than ours.