Most Appalachian natural gas producers pulled back or flattened production in 2024 as national prices remained low and the region’s takeaway capacity remained full.

After months of bullish projections in the natural gas market, thanks to LNG production increases and oncoming AI-driven power demand, Range Resources became one of the first major producers in Appalachia to project production increases.

The company’s production for 2024 averaged 2.18 Bcfe/d, approximately 68% natural gas. For 2025, the company plans a 20 MMcfe/d increase to 2.2 Bcfe/d, the company announced Feb. 25 in its fourth-quarter earnings report.

The company has secured extra takeaway capacity and feels secure enough to bump up production, Range Resources CFO Mark Scucchi said during the company’s earnings call on Feb. 26.

“Range is in a somewhat special and unique position, given the life span of our inventory,” Scucchi said. “We are able to underwrite the transport to reach these known growing-demand end markets. So, while aggregate takeaway capacity out of Appalachia has not changed materially and is not expected to change materially in the next several years, we have taken additional capacity on Range's book to move those molecules to known demand growth.”

The executive said the decision was rational, considering the large-scale predictions of a natural gas demand increase and Range Resources' current financial position with its production areas. The company has a 50% reinvestment rate of $3.75/MMBtu.

Some of the other basins expected to grow natural gas production have a reinvestment rate of 70% at $4/MMBtu, according to Range’s numbers.

“So, our concern is minimal about the industry being irrational and growing production for production's sake,” Scucchi said.

2024 results

Range reported cash flow from operating activities at $945 million for all of 2024. The company reduced net debt by $172 million, returned $77 million in dividends and invested $65 million in share repurchases.

For the quarter, Truist analysts said Range Resources beat market estimates, thanks to “higher gas pricing and lower costs,” the analysis said, adding that the company has positioned itself well for the next three years.

“Most importantly, Range now has line-of-sight on a three-year outlook with annual capex of $650-$700 million to drive volumes of 2.2/2.4/2.6 Bcfe/d, screening well versus the Street's approximately $660 million and 2.2/2.3/2.3 Bcfe/d, along with a strong post-'27 maintenance plan,” Truist said.  

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