This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Range Resources' CEO Discusses Q4 2011 Results - Earnings Call Transcript

Jeffrey L. Ventura

Thank you, Rodney. I'll begin with an overview of the company. Ray will follow with an operations update. Roger will be next with a discussion of our financial position and John will follow with his perspective. Then we'll open it up for Q&A.

Let me begin with a review of where we've been as a company, where we are today and where the company can go in the future. Despite the current low gas price environment, Range is well positioned for 2012 and beyond. This is a result of our multiyear strategy of growth in reserves and production on a per share basis, debt adjusted, with one of the lowest cost structures in our peer group, coupled with building and high grading our inventory. It's also the result of long range planning, both operationally and financially.

Our organic growth rate from 2003 to 2011 ranged from less than 5% to 2011's top rate of 12%. During this timeframe, Range went from being one of the higher cost companies in our peer group to one of the lowest cost companies. This was the result of getting into plays that if successful, offered very repeatable high rate of return growth opportunities such as the Marcellus Shale and horizontal Mississippian plays. It's also the result of exiting relatively high cost low-growth plays with little repeatability, like the Gulf of Mexico and Deepwood Viner Chalk [ph]. As a result of our strategy, we sold about $1.8 billion of properties during this timeframe. This focused our technical resources on higher quality opportunities and lowered our cost structure. It also provided significant funding for better return projects.

Looking back, we were fortunate to have sold these properties in a higher commodity price environment. Carrying over a portion of the 2011 sale proceeds into 2012, coupled with our strong hedge position for the year puts us in a strong position to execute on our plan. We're currently hedged on the gas side with the floors of $4.45 per Mmbtu for approximately 75% of our estimated 2012 production. I believe 2012 will be an inflection point for Range.

2 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,031.14 +43.63 0.26%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs