RANGE RESOURCES CORPORATION (NYSE: RRC)
today announced its third quarter 2012 production results, preliminary realized prices and an update on its hedging status. On an equivalent basis, production volumes exceeded the upper range of guidance for the third quarter production averaging 790 Mmcfe net per day, a 47% increase over the prior-year quarter and 10% greater than second quarter 2012. The record production was driven by the continued success of the Company’s drilling program in the Marcellus and horizontal Mississippian oil plays. Production was 79% natural gas, 15% natural gas liquids (NGLs) and 6% crude oil. Year-over-year oil production increased 36%, NGL production rose 30%, while natural gas production increased 52%. Preliminary third quarter average net production volumes were: 623.3 Mmcf per day of natural gas, 20,040 barrels per day of NGLs and 7,748 barrels per day of crude oil.
The Company also announced that its preliminary third quarter 2012 commodity price realizations (including the impact of cash-settled hedges and derivative settlements which would correspond to analysts’ estimates) averaged $4.88 per mcfe before deduction of third-party transportation, gathering and compression fees. This compares to $6.41 per mcfe for the prior year quarter and $4.74 per mcfe for the second quarter of 2012. Preliminary third quarter realized prices for each commodity were: natural gas – $3.88 per mcf, natural gas liquids – $38.79 per barrel and crude oil – $84.86. NYMEX Henry Hub index natural gas price averaged $2.81 per mcf during the quarter and WTI crude oil index price averaged $92.58 per barrel. The Company also announced that it has elected not to drill the last remaining Barnett undeveloped leasehold which it had retained when the Barnett properties were sold in 2011. The Barnett undeveloped leasehold will increase the non-cash unproved property impairment provision by $20 million for the quarter.