Year-end pre-tax discounted present value may be considered a non-GAAP financial measure as defined by the SEC. We believe that the presentation of pre-tax discounted present value is relevant and useful to our investors because it presents the discounted future net cash flows attributable to our proved reserves prior to taking into account corporate future income taxes and our current tax structure. We further believe investors and creditors use pre-tax discounted present value as a basis for comparison of the relative size and value of our reserves as compared with other companies. Range's pre-tax discounted present value as of December 31, 2012 may be reconciled to its standardized measure of discounted future net cash flows as of December 31, 2012 by reducing Range's pre-tax discounted present value by the discounted future income taxes associated with such reserves. This reconciliation will be included in the Company's Form 10-K.
RANGE RESOURCES CORPORATION (NYSE: RRC) is one of the leading independent oil and natural gas producers in the US. Its operations are primarily focused in the Marcellus Shale in Appalachia and liquids-rich areas of the Southwest. The Company is the largest natural gas liquid producer in Appalachia. The Company pursues an organic growth strategy at low finding costs by targeting the highest rate of return projects within its large inventory of low risk, development drilling opportunities. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com and www.myrangeresources.com.
Except for historical information, statements made in this release, including those relating to finding and development costs in 2012 that are still subject to audit, expected acreage to be reclassified to proved developed, expected timing and volumes of ethane reserves recognized as proved reserves, expected future growth in liquid reserves, expected future growth of production and reserves per share, expected rates of return and future expectation of costs are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and Range's future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the volatility of oil and gas prices, the results of our hedging transactions, the costs and results of drilling and operations, the timing of production, mechanical and other inherent risks associated with oil and gas production, weather, the availability of drilling equipment, changes in interest rates, litigation, uncertainties about reserve estimates, environmental risks and regulatory changes. Range undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in Range's filings with the Securities and Exchange Commission ("SEC"), which are incorporated by reference.
The SEC permits oil and gas companies, in filings made with the SEC,
to disclose proved reserves, which are estimates that geological and
engineering data demonstrate with reasonable certainty to be recoverable
in future years from known reservoirs under existing economic and
operating conditions as well as the option to disclose probable and
Range has elected not to disclose the
Company’s probable and possible reserves in its filings with the SEC.
Range uses certain broader terms such as "resource potential," or
"unproved resource potential" or "upside" or other descriptions of
volumes of resources potentially recoverable through additional drilling
or recovery techniques that may include probable and possible reserves
as defined by the SEC's guidelines.
Range has not attempted to
distinguish probable and possible reserves from these broader
classifications. The SEC’s rules prohibit us from including in filings
with the SEC these broader classifications of reserves.
estimates are by their nature more speculative than estimates of proved,
probable and possible reserves and accordingly are subject to
substantially greater risk of being actually realized.
resource potential refers to Range's internal estimates of hydrocarbon
quantities that may be potentially discovered through exploratory
drilling or recovered with additional drilling or recovery techniques
and have not been reviewed by independent engineers. Unproved resource
potential does not constitute reserves within the meaning of the Society
of Petroleum Engineer's Petroleum Resource Management System and does
not include proved reserves. Area wide unproven, unrisked resource
potential has not been fully risked by Range's management. Actual
quantities that may be ultimately recovered from Range's interests will
differ substantially. Factors affecting ultimate recovery include the
scope of Range's drilling program, which will be directly affected by
the availability of capital, drilling and production costs, commodity
prices, availability of drilling services and equipment, drilling
results, lease expirations, transportation constraints, regulatory
approvals, field spacing rules, recoveries of gas in place, length of
horizontal laterals, actual drilling results, including geological and
mechanical factors affecting recovery rates and other factors. Estimates
of resource potential may change significantly as development of our
resource plays provides additional data. Investors are urged to consider
closely the disclosure in our most recent Annual Report on Form 10-K,
available from our website at
or by written request to 100 Throckmorton Street, Suite 1200, Fort
Worth, Texas 76102. You can also obtain this Form 10-K by calling the
SEC at 1-800-SEC-0330.
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