RANGE RESOURCES CORPORATION (NYSE: RRC)
today announced that its second quarter 2013 production volumes reached a record high of 910 Mmcfe per day, a 27% increase over the prior year quarter.
- Production was 79% natural gas, 15% natural gas liquids (“NGLs”) and 6% crude oil and condensate.
- Compared to the prior year quarter, oil and condensate production increased 39%, NGL production rose 35%, while natural gas production increased 24%.
- Adjusting for the sale of the New Mexico properties which closed at the beginning of the second quarter of 2013 comprising production of approximately 18 Mmcfe per day with 30% being liquids, second quarter production would have increased 30% over the prior year quarter with oil and condensate production increasing 57%, NGL production increasing 35% and natural gas production increasing 27%.
The record production was primarily driven by the continued success of the Company’s drilling program in the Marcellus Shale. Second quarter production of 910 Mmcfe per day exceeded the high-end of Company guidance of 880 – 890 Mmcfe per day due to the timing of turning wells to production and continued positive performance of wells in the Marcellus Shale.
The Company also announced its preliminary second quarter 2013 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements which would correspond to analysts’ estimates) averaged $5.02 per mcfe, a 6% composite increase from the prior year quarter.
- Production and preliminary realized prices by each commodity for the second quarter of 2013 were: natural gas – 713 Mmcf per day ($4.20 per mcf), NGLs – 23,247 barrels per day ($32.92 per barrel) and crude oil and condensate – 9,500 barrels per day ($85.09 per barrel).
- The second quarter average natural gas pricing improved $0.63 per mcf, before hedging settlements, as compared to the first quarter of 2013 and increased $2.00 per mcf as compared to the prior year quarter. Financial hedges added $0.07 per mcf in the current quarter and added $1.54 per mcf in the prior year quarter.
- NGL pricing, before hedges, was 33% of the West Texas Intermediate index (“WTI”) for the second quarter compared to 38% of WTI for the first quarter of 2013 due to normal seasonality and a softer butane market. NGL realizations for the prior year quarter were 39% of WTI.
- Crude oil and condensate price realizations, before hedges, for the second quarter averaged 89% of WTI essentially flat with the first quarter of 2013 and the prior year quarter.
Commenting on the announcement, Jeff Ventura, Range’s President and CEO, said, “Second quarter production results were outstanding and reflect the continuing efforts of our operating and marketing teams. The success of our drilling program over the first half of the year puts us on track to achieve the high-end of our production growth target of 20% to 25% for 2013. More importantly, our sizable position in the Marcellus Shale gives us confidence that we can deliver similar line-of-sight growth of 20% to 25% for many years. We believe this strong growth, coupled with high returns, low cost and low reinvestment risk will allow Range to drive substantial growth per share for our shareholders for years to come.”