In 2012, our organic growth target is expected to be 30% to 35% versus the past 9 years of less than 12%. Since 95% of our capital is planned to be directed into the Marcellus Shale and horizontal Mississippian plays, the growth should also come with higher returns and lower costs than before.Given our large acreage position in these plays, we'll have the opportunity to do this for years to come. Even at current strip pricing, all of our projects generate good to excellent rates of return. The rate of return in the liquids-rich portion of the Marcellus and horizontal Mississippian plays range from 73% to 99%. The rate of return in the dry gas drilling in the Marcellus Shale ranges from 27% to 32%. Even in our dry gas fields in Virginia, the rate of return of the wells that we had originally considered ranges from 20% to 27%. However, given that this acreage is either all held by production or we own the minerals, we're limiting the capital allocation for Virginia development to $30 million in favor of higher rate of return projects.
Range Resources' CEO Discusses Q4 2011 Results - Earnings Call Transcript
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