This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Range Third Quarter Production Reaches Record Level

Stocks in this article: RRC

RANGE RESOURCES CORPORATION (NYSE: RRC) today announced that its third quarter 2013 production volumes reached a record high of 960 Mmcfe per day, a 21% increase over the prior year quarter.

  • Production was 77% natural gas, 16% natural gas liquids (“NGLs”) and 7% crude oil and condensate.
  • Compared to the prior year quarter, oil and condensate production increased 43%, NGL production rose 28%, while natural gas production increased 19%.
  • Adjusting for the sale of the New Mexico properties which closed at the beginning of the second quarter of 2013, third quarter production would have increased 24% over the prior year quarter with oil and condensate production increasing 58%, NGL production increasing 29% and natural gas production increasing 21%.

The record production was primarily driven by the continued success of the Company’s drilling program in the Marcellus Shale. Third quarter production of 960 Mmcfe per day exceeded the high-end of Company guidance of 945 – 950 Mmcfe per day due to continued positive performance of wells in the Marcellus Shale and the timing of turning wells to production.

The Company also announced its preliminary third 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 $4.80 per mcfe, a 2% composite decrease from the prior year quarter.

  • Production and preliminary realized prices by each commodity for the third quarter of 2013 were: natural gas – 739 Mmcf per day ($3.88 per mcf), NGLs – 25,678 barrels per day ($31.08 per barrel) and crude oil and condensate – 11,065 barrels per day ($85.46 per barrel).
  • The third quarter average natural gas pricing improved $0.65 per mcf, before hedging settlements, as compared to the prior year quarter. Financial hedges added $0.45 per mcf in the current quarter and added $1.10 per mcf in the prior year quarter.
  • NGL pricing, before hedges, was 31% of the West Texas Intermediate index (“WTI”) for the third quarter compared to 33% of WTI for the second quarter of 2013. The change was primarily due to a disproportionate increase in WTI price compared to the NGL components during the quarter. Marcellus ethane sold on the Mariner West project contributed 876 barrels per day to the NGL mix. NGL realizations, excluding Marcellus ethane, would have been 32% of WTI.
  • Crude oil and condensate price realizations, before hedges, for the third quarter averaged 87% of WTI compared to 89% in the second quarter of 2013. Crude oil and condensate realizations for the prior year quarter were 90% of WTI before hedges.

Range estimates that during the third quarter it incurred a net expense of approximately $3.7 million related to purchasing and blending third party dry gas into its rich residue gas from the southwest portion of the Marcellus. The purchase and sale will be reported separately in “Brokered natural gas and marketing revenues and expenses” for the quarter. The Mariner West project, expected to be fully operational during November, will eliminate Range’s need for gas blending in the future.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,817.90 +7.84 0.04%
S&P 500 2,069.41 +5.91 0.29%
NASDAQ 4,754.8920 +41.9220 0.89%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs