RANGE RESOURCES CORP

We use commodity-based derivative contracts to manage exposures to commodity price fluctuations. We do not enter into these arrangements for speculative or trading purposes. These derivative instruments apply to a varying portion of our production and provide only partial price protection. While there is risk that the financial benefit of rising natural gas, NGLs and oil prices may not be captured, we believe the benefits of more predictable cash flow are important in the event of price declines. Among these benefits are more consistent returns on invested capital, better access to bank and other capital markets, more efficient utilization of existing personnel, the flexibility to enter into long-term projects requiring substantial committed capital, smoother and more efficient execution of our ongoing development drilling and production enhancement programs. If our counterparties defaulted, this protection might be limited as we might not receive the benefits of the derivatives. We are at risk for changes in the fair value of all of our derivative instruments; however, such risk should be mitigated by price changes related to the underlying commodity transaction. While the use of derivative instruments could materially affect our results of operations in a particular quarter or annual period, we believe that the use of these instruments will not have a material adverse effect on our financial position or liquidity.

All derivative instruments, other than those that meet the normal purchase and normal sale scope exception or other derivative scope exceptions, are recorded at fair market value in accordance with GAAP and are included in our consolidated balance sheets as assets or liabilities. At December 31, 2024, our derivatives program includes swaps, collars, three-way-collars and swaptions. These contracts expire monthly through December 2027. Their fair value, represented by the estimated amount that would be realized upon immediate liquidation as of December 31, 2024, approximated a net derivative asset of $96.1 million compared to a net derivative asset of $424.4 million at December 31, 2023. As of December 31, 2024 we have hedged over 30% of our projected total production for 2025 with more than 35% of our projected natural gas production hedged. For additional discussion and information over our derivative contracts, see Note 8 to our consolidated financial statements.