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Range Resources' CEO Discusses Q1 2012 Results - Earnings Call Transcript

Our speakers on today's call are Jeff Ventura, President and Chief Executive Officer; Ray Walker, Senior Vice President and Chief Operating Officer; and Roger Manny, Executive Vice President and Chief Financial Officer.

Range has filed our 10-Q with the SEC yesterday. It's now available on the homepage of our website or you can access it using the EDGAR system. In addition, we posted on our website supplemental tables, which will guide you in the calculation of non-GAAP measures of cash flow, EBITDAX, cash margins and the reconciliation of our adjusted non-GAAP earnings to reported earnings that are discussed on the call today. We've also added tables which will guide you in modeling our future realized prices for natural gas, crude oil and natural gas liquids. Detailed information of our current hedge position by quarter is also included on the website.

Now let me turn the call over to Jeff.

Jeffrey L. Ventura

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

Range is on track to achieve the targets that we've set for 2012. We're on track to grow production 30% to 35% year-over-year, exit the Marcellus at our goal of 600 million cubic feet per day net and to grow liquids production 40% year-over-year. We're also making good progress in all 5 of our enhancement areas, which are the super-rich Marcellus, super-rich Upper Devonian, wet Utica, horizontal Mississippian oil play and Cline Shale oil play. Ray will give more details on all 5 projects in his talk.

Financially, we're also in good shape and making good progress as well. During the quarter, Range continued to lower its cost structure. On the units of production basis, our company's 5 largest cost categories fell by 6% in aggregate compared to the prior-year period. Our natural gas hedge position is excellent for 2012. We're 75% hedged to the floor price of $4.45 per Mmbtu. We recently completed our bank redetermination and reaffirmed our borrowing base under the bank credit facility at $2 billion and increased our commitment amount to $1.75 billion. We have no debt maturities until 2016 under our bank facility and 2017 for our notes.

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