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Range Resources reports record productionApril 11, 2013
A. Lee Graham
Range Resources Corp. of Fort Worth reports a record for its first-quarter 2013 production volumes as the Fort Worth company reached 876 million cubic feet of natural gas equivalent per day, 34 percent more than during the same period last year.
“We are off to a terrific start with our first-quarter production results,” said Range President and CEO Jeff Ventura, commenting in a news release.
“We are well on track to achieve our production growth target of 20 percent to 25 percent for 2013,” Ventura said, adding that he expected future growth to be led by the company’s approximate 1 million-net acre leasehold in Pennsylvania.
“The strong growth, coupled with high returns, low cost and low reinvestment risk will drive substantial per share value for years to come,” Ventura said.
First-quarter production breakdown was 79 percent natural gas, 14 percent natural gas liquids (NGLs) and 7 percent crude oil and condensate. Year-over-year oil and condensate production rose 52 percent, with natural gas liquids production 22 percent higher, while natural gas production increased 34 percent.
Driving the production record was the company’s drilling program, primarily in the Marcellus Shale, the company said.
Range also announced its preliminary first quarter 2013 natural gas, NGLs and oil price realizations that averaged $5.06 per 1,000 cubic feet equivalent, a 3 percent drop from the prior-year period. Those amounts include the impact of cash-settled hedges and derivative settlements corresponding to analysts’ estimates.
Production and preliminary realized prices by each commodity for the first quarter were natural gas, 689 million cubic feet per day; NGLs, 20,994 barrels per day; and crude oil and condensate, 10,141 barrels per day.
Third-party transportation, gathering and compression fees are expected to average about 80 cents per 1,000 cubic feet equivalent for the first quarter due to added transportation costs applicable to higher-than-expected production volumes from the Marcellus Shale, according to the company.
Range Resources Corp. is an independent oil and natural gas producer focusing its operations in Appalachia and the southwest portion of the United States. More information is available at www.rangeresources.com.