RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its third quarter 2013 financial results.
Third Quarter Highlights –
- Record production of 960 Mmcfe per day, an increase of 21% over the prior-year quarter.
- Adjusted cash flow was $244 million, an increase of 29% as compared to the prior-year quarter.
- Unit costs were reduced 12% versus the prior-year quarter.
- Basin leading liquids-rich wells drilled in Pennsylvania continue to provide impressive results.
- Approximately 540,000 net acres of Range’s leasehold is in southwest Pennsylvania where the largest estimated gas in place (GIP) occurs when combining all three shale horizons.
- Range’s southwest and northeast Marcellus natural gas price realizations were $0.41 and $0.56 higher, respectively, than local pricing indices.
- Mariner West Project, exporting ethane to Sarnia, Canada, is expected to be fully operational in November.
- When all three ethane solutions are fully operational, based on today’s prices, Range’s average price for ethane would equate to a natural gas price of $4.13, net of transportation cost without considering the expected benefit of up to 8% additional propane recovery which could add a net $0.40 to $0.50 to an equivalent natural gas price.
Commenting on the announcement, Jeff Ventura, Range’s President and CEO, said, “Range continued to make significant progress during the third quarter, with record production results, lower unit costs, and materially higher cash flow. Our balance sheet, liquidity and cash flow growth positions us well to continue growing production 20% to 25% for many years. With the progress made during the first three quarters of 2013, we are focused on achieving the higher end of our production growth range for 2013 even with the sale of our New Mexico properties. The first delivery of ethane into the Mariner West pipeline to Sarnia, Canada commenced in July with intermittent deliveries and the project is expected to be fully operational in November. Once fully operational, Mariner West will allow us to continue our planned growth without concern for pipeline quality requirements for our residue gas. Our growth is led by our approximate one million acre leasehold position in Pennsylvania which essentially doubles when stacked pay reservoirs across most of our acreage in the Basin are considered. This acreage position is anchored by the Marcellus, the most prolific gas reservoir in North America. Based on the estimated gas in place (GIP) maps released by Range today, our southwest Pennsylvania acreage is strategically located at the nexus where the largest estimated gas in place exists when considering all three shale horizons. Range believes that this area also encompasses the core of the super-rich and wet areas of both the Marcellus and the Upper Devonian shales. We believe that our expected 20% to 25% production growth for many years, coupled with the high returns, low cost and low reinvestment risk will drive substantial per share value for our shareholders for years to come.”