I want to highlight the great job that Roger and his team did on the recent $600 million bond offering, which resulted in the lowest interest rate ever by BB-rated company in any industry. We issued the notes at a fixed rate of 5% for 10.5 years.Most importantly, in today's environment of low natural gas pricing and high oil price, all of Range's key projects generate attractive rates of return. 75% of our 2012 capital is going into liquids-rich projects, almost all of which is wet or super-rich Marcellus or the horizontal Mississippian oil play. The rates of return on these projects range from about 70% to 100% at strip pricing. Almost all of the remaining drilling capital is going into the Northeast Marcellus, with a rate of return is in the mid-20% to low 30%. We'll be decreasing our rig count in the Northeast to roughly 1 rig by the end of this year and refocus more of our capital into the higher-return areas.
Range Resources' CEO Discusses Q1 2012 Results - Earnings Call Transcript
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