Commenting on its 2013 capital budget, Jeff Ventura, the Company’s President and CEO, said, “Our 2013 capital program is designed to deliver outstanding results. The 2013 program is expected to deliver 20% – 25% production growth while strengthening our balance sheet. We have the flexibility to shift capital from dry gas drilling to our liquids-rich plays which generate exceptional returns for our shareholders. In addition, we expect to achieve double digit per share growth in production and reserves while continuing to focus on reducing expenses in our already low cost structure. As we finish up 2012 and look forward to 2013, Range is very well positioned as our high quality portfolio of low cost drilling projects covering over two million acres of leasehold should generate attractive returns for our shareholders for many years to come.”
Non-GAAP Financial Measures
Range has referred to a “total debt to EBITDAX ratio” in this release to measure relative leverage of the Company. This ratio is calculated by dividing last twelve months EBITDAX into the sum of the Company’s bank debt and subordinated notes shown on the consolidated balance sheets. The ratio is expressed in the number of annual EBITDAX amounts required to equal the outstanding debt amount, where the “X” refers to coverage “times.” EBITDAX is defined as earnings before interest, income taxes, depletion, depreciation and amortization and exploration expense. EBITDAX used by the Company for this calculation is found in “Supplemental Tables” posted for each respective quarter on its website under the tab “Investor Relations.” We believe that the presentation of the total debt to EBITDAX ratio is relevant to our investors because it presents a relative leverage metric which is commonly used by investors and the debt rating agencies to evaluate a company’s ability to service its current debt and/or take on more debt.