RANGE RESOURCES CORP

Overview of 2025 Results

For the year ended December 31, 2025, we experienced an increase in revenue from the sale of natural gas, NGLs and oil due to a 14% increase in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) compared to 2024. Daily production in 2025 averaged 2.24 Bcfe compared to 2.18 Bcfe in 2024.

During 2025, we recognized net income of $658.0 million, or $2.74 per diluted common share compared to $266.3 million, or $1.09 per diluted common share during 2024. The increase in net income for the year ended December 31, 2025 compared to 2024 is primarily due to higher realized prices combined with slightly higher production.

During 2025, our financial and operating performance included the following results:

•

revenue from the sale of natural gas, NGLs and oil increased 27% from the same period of 2024 with a 24% increase in average realized prices (before cash settlements on our derivatives) combined with a 2% increase in production volumes;

•

revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) increased 11% from the same period of 2024;

•

transportation, gathering, processing and compression expense per mcfe was $1.50 in 2025 compared to $1.48 in the same period of 2024 primarily due to the increase of electricity costs and FERC rates;

•

direct operating expense per mcfe increased to $0.13 in 2025 compared to $0.12 in the same period of 2024 due to an increase in workover costs;

•

general and administrative expense per mcfe for 2025 remained the same at $0.22 compared to the same period of 2024;

•

interest expense per mcfe for 2025 decreased 13% from the same period of 2024 due to lower debt balances;

•

our DD&A rate per mcfe for 2025 remained the same compared to the same period of 2024;

•

drilled and completed 53 net wells with a 100% success rate;

The year ended December 31, 2025 also included the following returns of capital and balance sheet highlights:

•

paid $85.7 million in dividends, increasing per share dividend by 12.5% to an annual $0.36 per common share compared to $0.32 per common share in 2024;

•

repurchased $230.6 million of our common stock compared to $65.3 million in 2024;

•

repurchased in the open market $2.2 million principal amount of our 4.875% senior notes due 2025 at a discount and repaid the remaining $606.5 million principal balance of our 4.875% senior notes due 2025 at par by utilizing cash on hand and borrowing on our credit facility;

•

maintained substantial liquidity with the accumulation of cash on hand of $204,000 along with $1.7 billion available under our credit facility;

•

enabled longer laterals and enhanced efficiency through continued selective acreage leasing and lease renewals to consolidate our acreage positions in the Marcellus Shale play in Pennsylvania by investing $51.8 million to acquire unproved acreage; and

•

our capital investment for 2025 was $673.8 million, which was within our announced range of $650.0 million to $690.0 million.

We generated $1.2 billion of cash from operating activities in 2025, which is $226.8 million higher compared to 2024 and reflects higher realized prices and higher production volumes.

The year ended December 31, 2025 also included the following highlights that emphasized our corporate sustainability initiatives:

•

expanded "A" grade MiQ certification to include all Pennsylvania production;

•

maintained net zero scope 1 and 2 GHG emissions through direct emissions reductions and verified carbon credits;

•

continued to recycle approximately 100% of our flowback and produced water generated from our operations; and

•

expanded the installation and use of compressed air pneumatic controllers.

Natural Gas, NGLs and Oil Sales, Production and Realized Price Calculations

Our revenues vary from year-to-year as a result of changes in realized commodity prices and production volumes. The following table illustrates the primary components of natural gas, NGLs and oil sales for the last two years (in thousands):

Production growth is generated through drilling success as we place new wells on production, which is partially offset by the natural decline of our natural gas, NGLs and oil reserves through production. Our production for the last two years is set forth in the following table:

(a)

Represents volumes sold regardless of when produced.

(b)

Oil and NGLs volumes are converted to mcfe at the rate of one barrel equals six mcf based upon the approximate relative energy content of oil and natural gas, which is not indicative of the relationship between oil and natural gas prices.

Our average realized price (including derivative settlements and third-party transportation costs paid by Range) received during 2025 was $2.10 per mcfe compared to $1.84 per mcfe in 2024. The majority of our production is sold at market-based prices. We believe computed final realized prices should include the impact of transportation, gathering, processing and compression expense. Average sales prices (excluding derivative settlements) do not include any derivative settlements or third-party transportation costs which are reported in transportation, gathering and compression expense on the accompanying consolidated statements of income. Average sales prices (excluding derivative settlements) do include transportation costs where we receive net proceeds from the purchaser. Our average realized price (including derivative settlements and third-party transportation costs paid by Range) calculation includes cash settlements for derivatives. Average realized price calculations for the last two years are shown below:

(a)

Oil and NGLs volumes are converted at the rate of one barrel equals six mcf based upon the approximate relative energy content of oil to natural gas, which is not indicative of the relationship between oil and natural gas prices.

Realized prices include the impact of basis differentials and gains or losses realized from our basis hedging. The prices we receive for our natural gas can be more or less than the NYMEX price because of adjustments for delivery location, relative quality and other factors. The following table provides this impact on a per mcf basis:

The following tables reflect our production and average realized commodity prices (excluding derivative settlements and third-party transportation costs paid by Range) (in thousands, except prices):

Transportation, gathering, processing and compression expense was approximately $1.2 billion in 2025 and 2024. As shown in the table below, these third-party costs are higher than the prior year due to an increase in electricity costs, FERC charges and an increase in NGLs volumes which increases processing cost. We have included these costs in the calculation of average realized prices (including all derivative settlements and third-party transportation expenses paid by Range). The following table summarizes transportation, gathering, processing and compression expense for the last two years (in thousands) and on a per mcf and per barrel basis:

Derivative fair value incomewas $121.5 million in 2025 compared to income of $56.7 million in 2024. All of our derivatives are accounted for using the mark-to-market accounting method. Mark-to-market accounting treatment can result in more volatility in our revenues as the change in fair value of our commodity derivative positions is included in total revenue. As commodity prices increase or decrease, such changes will have an opposite effect on the mark-to-market value of our derivatives. Gains on our derivatives generally indicate lower wellhead revenues in the future while losses indicate higher future wellhead revenues. The following table summarizes the impact of our commodity derivatives for the last two years (in thousands):

(a)

Non-cash fair value adjustments on commodity derivatives is a non-GAAP measure. Non-cash fair value adjustments on commodity derivatives only represent the net change between periods of the fair market values of commodity derivative positions and exclude the impact of settlements on commodity derivatives during the period. We believe that non-cash fair value adjustments on commodity derivatives is a useful supplemental disclosure to differentiate non-cash fair market value adjustments from settlements on commodity derivatives during the period. Non-cash fair value adjustments on commodity derivatives is not a measure of financial or operating performance under GAAP, nor should it be considered a substitute for derivative fair value income or loss as reported in our consolidated statements of income.

Brokered natural gas and marketing revenue was $172.6 million in 2025 compared to $133.0 million in 2024. We enter into purchase transactions with third parties and separate sale transactions with third parties at different times to utilize available pipeline capacity and to fulfill sales commitments in the event of operational upsets. These brokered revenues increased compared to 2024 due to higher sales prices partially offset by lower brokered volumes. See also Brokered natural gas and marketing expense below for more information on our net brokered margin.

Other income was $5.8 million in 2025 compared to $13.5 million in 2024. This includes $4.9 million of interest income and $261,000 of gain on sale of assets in 2025 compared to $12.7 million of interest income and $311,000 gain on sale of assets in 2024. Interest income is lower in the current year due to lower cash balances that earn interest in 2025 compared to 2024. In 2023 and prior, interest income was included within brokered natural gas and marketing revenue and other and gain on sale of assets was its own discrete line item within our annual report on Form 10-K for the year ended December 31, 2023. In 2024, and for the prior years presented in the accompanying consolidated statements of income, we reclassified both of these items into other income on the accompanying consolidated statements of income.

Costs and Expenses per mcfe

We believe some of our expense fluctuations are best analyzed on a unit-of-production, or per mcfe, basis. The following presents information about certain of our expenses on a per mcfe basis for the last two years:

Direct operating expense was $102.2 million in 2025 compared to $95.3 million in 2024. Direct operating expenses include normally recurring expenses to operate and produce our wells, workover and repair-related expenses. Our direct operating expenses for 2025 increased from the prior year primarily due to higher workover and water hauling costs. We incurred $6.0 million of workover costs in 2025 compared to $3.3 million of workover costs in 2024. Stock-based compensation expense represents the amortization of equity grants as part of the compensation of field employees. The following table summarizes direct operating expenses per mcfe for the last two years:

Taxes other than income expense was $32.8 million in 2025 compared to $21.6 million in 2024. This expense category is primarily the Pennsylvania impact fee. In 2012, Pennsylvania enacted an "impact fee" on unconventional natural gas, NGLs and oil production which includes the Marcellus Shale. The impact fee is based upon the year wells are drilled and the fee varies, like a severance tax, based upon natural gas prices. The year ended December 31, 2025 includes a $31.6 million impact fee compared to $21.2 million in the year ended December 31, 2024, with the increase primarily due to an increase in the average fee per well caused by higher natural gas prices in 2025 compared to 2024. This category also includes other taxes such as franchise, real estate and commercial activity taxes. The following table summarizes taxes other than income per mcfe for the last two years:

General and administrative expense was $178.3 million for 2025 compared to $172.1 million for 2024. The increase in 2025, compared to 2024, is primarily due to higher salary and benefit related costs and higher stock-based compensation. As of December 31, 2025, the number of general and administrative employees remained similar compared to December 31, 2024. Stock-based compensation expense represents the amortization of stock-based compensation awards granted to our employees and our non-employee directors as part of their compensation. The following table summarizes general and administrative expenses per mcfe for the last two years:

Interest expense was $104.9 million for 2025 compared to $118.8 million for 2024. The following table summarizes interest expense per mcfe for the last two years:

(a)

Includes commitment fees.

(b)

Excludes debt issuance costs.

The decrease in interest expense from 2024 to 2025 was primarily due to lower overall outstanding average debt balances. In May 2025, we repaid the remaining principal balance of $606.5 million of our 4.875% senior notes due 2025 by utilizing cash on hand and borrowing on our credit facility. We had $118.0 million outstanding on the bank credit facility as of December 31, 2025 compared to no bank debt outstanding for the same period of 2024. See Note 6 to our consolidated financial statements for additional information.

Depletion, depreciation and amortization ("DD&A") was $370.5 million in 2025 compared to $358.4 million in 2024. The increase in 2025 compared to 2024 is due to higher production volumes. Depletion expense, the largest component of DD&A, was $0.44 per mcfe in 2025 compared to $0.44 per mcfe in 2024. We have historically adjusted our depletion rates in the fourth quarter of each year based on our year-end reserve report and at other times during the year when circumstances indicate there has been a significant change in reserves or costs. The following table summarizes DD&A expenses per mcfe for the last two years:

Other Operating Expenses

Our total operating expenses also include other expenses that generally do not trend with production. These expenses include stock-based compensation (including the amortization of time-based stock awards and performance-based stock awards), brokered natural gas and marketing, exploration expense, abandonment and impairment of unproved properties, exit costs, deferred compensation plan and gain or loss on early extinguishment of debt. See Note 10 to our consolidated financial statements for more information on allocation of stock-based compensation to functional expense categories.

Brokered natural gas and marketing expense was $185.6 million in 2025 compared to $140.5 million in 2024. We enter into purchase transactions with third parties and separate sale transactions with third parties at different times to utilize available pipeline capacity and fulfill sales commitments in the event of operational upsets. The increase in these costs reflects higher purchase prices partially offset by lower purchased volumes. The following table details our brokered natural gas and marketing net margin which includes the net effect of these third-party transactions for the last two years (in thousands):

Exploration expense was $30.2 million in 2025 compared to $26.8 million in 2024. Exploration expense in 2025 was higher compared to the prior year due to higher delay rentals, seismic costs and personnel expense. Stock-based compensation represents the amortization of equity stock grants as part of the compensation of our exploration staff. The following table details our exploration related expenses for the last two years (in thousands):

Abandonment and impairment of unproved properties was $28.9 million in 2025 compared to $8.4 million in 2024. These costs increased compared to 2024 due to higher estimated lease expirations in Pennsylvania. Impairment of individually insignificant unproved properties is assessed and amortized on an aggregate basis based on our average holding period, expected forfeiture rate and anticipated drilling success. We assess individually significant unproved properties for impairment on a quarterly basis and recognize a loss where circumstances indicate impairment in value. In determining whether a significant unproved property is impaired we consider numerous factors including, but not limited to, current exploration plans, favorable or unfavorable activity on the property being evaluated and/or adjacent properties, our geologists’ evaluation of the property and the remaining months in the lease term for the property.

Exit costs were $25.7 million in 2025 compared to $37.2 million in 2024. In August 2020, we completed the sale of our North Louisiana operations in a transaction that included the retention of certain related gathering, transportation and processing obligations extending until 2030. In the year ended December 31, 2025, we recorded $33.1 million of accretion expense related to these retained liabilities, and during 2025, we recorded an adjustment of $7.4 million to decrease this obligation mainly due to a decrease in certain expected gathering and transportation costs. In the year ended December 31, 2024, we recorded $39.2 million of accretion expense related to these retained liabilities, and we recorded an adjustment of $2.1 million to decrease this obligation mainly due to a decrease in forecasted electricity costs. See Note 14 to our consolidated financial statements for further detail.

Deferred compensation plan expense was $1.4 million in 2025 compared to $9.6 million in 2024. Our stock price decreased to $35.26 at December 31, 2025 from $35.98 at December 31, 2024. This non-cash item relates to the increase or decrease in value of the liability associated with our common stock that is vested and held in our deferred compensation plan. The deferred compensation liability is adjusted to fair value by a charge or a credit to deferred compensation plan expense. The deferred compensation plan held 258,000 vested shares at December 31, 2025 compared to 724,000 shares at December 31, 2024. See Note 10 to our consolidated financial statements for further detail.

Gain on early extinguishment of debtwas a gain of $3,000 in 2025 compared to a gain of $257,000 in 2024. During 2025, we repurchased in the open market $2.2 million principal amount of our 4.875% senior notes due 2025 at a discount and recorded a gain of $3,000, net of transaction costs and the expensing of debt issuance costs on the repurchased debt. During 2024, we purchased on the open market $79.7 million principal amount of 4.875% senior notes due in May of 2025 at a discount and recognized a gain on early extinguishment of debt of $257,000 net of transaction costs and the expensing of debt issuance costs on the repurchased debt.

Income tax expense was $173.7 million in 2025 compared to a benefit of $15.7 million in 2024. Income tax expense was higher than prior year due to higher operating income in 2025 combined with the impact of prior year decreases in our valuation allowances and generation of tax credits in 2024. See Note 4 to our consolidated financial statements for further detail. The following is a summary of income tax expense (in thousands):