RANGE RESOURCES CORPORATION (NYSE: RRC)
today announced its second quarter 2012 production results, preliminary realized prices and an update on its hedging status. On an equivalent basis, production volumes exceeded guidance with second quarter production averaging 719.3 Mmcfe net per day, a 42% increase over the prior-year quarter and 10% greater than the first quarter 2012. Adjusting production for the sale of the Barnett properties in the prior year, production would have increased 51% year-over-year. The record production was driven by the continued success of the Company’s drilling program. Production was 80% natural gas, 14% natural gas liquids (NGLs) and 6% crude oil. Year-over-year oil production increased 23%, NGL production rose 20%, while natural gas production increased 48%. Natural gas volumes exceeded guidance by 6.7 Mmcf per day (1%), oil volumes were 846 barrels per day (14%) over guidance while NGL volumes were 1,241 barrels per day (7%) less than guidance. Oil and NGLs volumes varied from the amounts anticipated for the quarter due to the timing of when certain wells were brought on production. In the second half of 2012, oil and NGL production is anticipated to rise at an increasing rate due to a heavy emphasis on planned drilling in the liquids-rich portion of the Marcellus and the horizontal Mississippian oil play.
The Company also announced that its preliminary second quarter 2012 commodity price realizations (including the impact of cash-settled hedges and derivative settlements which would correspond to analysts’ estimates) averaged $4.74 per mcfe before deduction of third-party transportation, gathering and compression fees. This compares to $6.43 per mcfe for the prior year quarter and $5.19 for the first quarter of 2012. Preliminary second quarter average production and realized prices for each commodity were: natural gas – 574.7 Mmcf per day ($3.66 per mcf), natural gas liquids – 17,259 barrels per day ($42.30 per barrel) and crude oil – 6,846 barrels per day ($84.31).