Range Resources Midwest Power Plant Sales Agreement Details 2025 Q4

Analysis of Take-or-Pay or Minimum-Volume Terms in the Midwest Power Plant Sales Agreement

Based on the excerpts from Range Resources Corporation's 2025 Q4 earnings transcript, the following points address the user's question regarding specific take-or-pay or minimum-volume commitments in the Midwest power plant sales agreement and the timing of those terms:

1. Confidentiality of Contractual Details
   The company explicitly states that the detailed confidential terms of the Midwest power plant gas sales agreement cannot be disclosed publicly at this time, due to requests from the counterparties involved:

   "…difficult for us to share the confidential terms of that arrangement today just given some ask we have from the counterparties associated with it." ¹

2. Timing of Agreement and Plant Start-up

   • The new power plant in the Midwest is expected to start up in late 2027.
   • Gas volumes from planned processing expansions will flow to this facility starting at that time.

   "During the quarter, Range also executed a long-term sales agreement that will lead gas from our planned processing expansion to a new power plant in the Midwest. The plant is expected to start up in late 2027…" ²

3. Scalability and Volume Commitment

   • The initial commitment mentioned is approximately $75 million per day in gas feedstock, indicating a significant baseline supply volume to the plant.
   • The agreement is described as scalable, meaning the volumes can potentially grow as infrastructure expands both at this facility and within the region.

   "This is a facility that will require more than [ $75 million ] a day in gas feedstock to generate power. So this was a good starting point. There is scalability to the infrastructure, both at this site and in the region…" ³,¹

4. Relation to Infrastructure and Transportation Capacity

   • The deal leverages existing and planned midstream takeaway capacity, notably capacity Energy Transfer's Rover system, which comes into service in 2027 and supports multi-year growth plans.
   • There is an emphasis that the company can service additional volumes via this transport without needing new pipeline expansions.

   "So this is all in line with some of the transport that we've picked up that will start in service in 2027 as a part of our multiyear plan…" ³
   "There is some debottlenecking underway with one of our midstream partners… which gives us the option of growing production without having to consider a new processing plant…" ⁴

5. No Explicit Mention of Take-or-Pay or Minimum Volume Clauses

   • While the agreement is long-term and involves substantial volume and monetary commitments, no specific take-or-pay provisions or minimum volume obligations are confirmed or detailed in the disclosures.
   • The company references ongoing discussions about contractual structuring but refrains from disclosing binding minimum terms.

   "…we think it sets up a strong foundation for how deals could get structured that allow growth that's also margin enhancing going forward." ³,¹

6. Context of Long-Term Demand and Optionality

   • This agreement is positioned as part of a strategic shift toward contracting with end users who need surety of supply for multi-decade infrastructure investments.
   • Range anticipates many opportunities of a similar nature going forward, leveraging its inventory and transportation footprint.

   "…lots of discussions being held between Range and end users that are needing a surety of supply for a multi-decade investment…" ⁵
   "We think it's the first of many options we can consider more in-basin or regional that allows us to think about that next wage of growth…" ⁶

---

Summary:

• Start Date: The Midwest power plant gas supply agreement will begin delivering gas with the plant start-up expected in late 2027.
• Volume and Value: Initial supply volume underwriting approximately $75 million per day in gas feedstock, which is described as a scalable starting point.
• Contractual Terms: Specific take-or-pay or minimum volume commitments are not disclosed publicly, as confidentiality has been requested by counterparties.
• Strategic Importance: The deal anchors Range’s growth plan with scalable volume potential linked to existing and planned transportation capacity (not necessarily requiring new infrastructure).
• Forward-Looking: This agreement is considered the first of many such arrangements anticipated as part of Range's long-term strategy to secure durable demand for its production.

---

This analysis integrates all relevant disclosures from the transcript excerpts, explicitly noting the absence of detailed contractual take-or-pay or minimum-volume clause disclosures. The information provided is consistent with prudent confidentiality and reflects Range Resources’ strategic approach to growing in-basin and regional demand markets tied to power generation infrastructure.