Our speakers on the call today are Jeff Ventura, President, Chief Executive Officer; Ray Walker, Senior Vice President and Chief Operating Officer; and Roger Manny, Executive Vice President and Chief Financial Officer. Also, Mr. Pinkerton, our Executive Chairman, is on the call today.Range did file our 10-Q with the SEC this morning, now available on the homepage of our website, or you can access it using the SEC's EDGAR system. In addition we posted on our website supplemental tables, which will guide you in the calculation of the non-GAAP measures of cash flow, EBITDAX, cash margins and the reconciliation of our adjusted non-GAAP earnings to reported earnings that are discussed. We have also added tables, which will guide you in modeling our future realized prices for natural gas, crude oil and natural gas liquids. Detailed information of our current hedge positions by quarter is also available on the website. Now let me turn the call over to Jeff. Jeffrey L. Ventura Thank you, Rodney. I'll begin with an overview of the quarter. Ray will follow with an operations update, and Roger will be next with a discussion of our financial position. Then we'll open it up for Q&A. Range is on track to achieve the targets that were set for 2012 for overall production growth and capital spending. Our capital expenditure budget for 2012 was on track and remains unchanged. Our production growth target of 30% to 35% now has moved to the high side of the range and is 35%. Our exit rate for the Marcellus should be 600 million cubic feet equivalent per day or greater. Our liquids production growth target was delayed to permitting issues. However, we expect for the fourth quarter that liquids growth will be 40% versus the fourth quarter of 2011. On the costs side, our teams are doing an excellent job and costs are coming in better than expectations. LOE per Mcfe continues to decline dramatically from $0.60 per Mcfe in 2011 to $0.48 in the first quarter of 2012 and $0.40 in the second quarter of 2012. Our total cash cost per Mcfe is also following the same downward trend from $2.61 in 2011 to $2.50 in the first quarter of 2012 and finally, to $2.38 per Mcfe in the second quarter of 2012.
Our DD&A per Mcfe has also been reduced from $1.80 per Mcfe in 2011 to $1.67 in the first 6 months of 2012. These are both very impressive numbers and a very impressive trend. Our teams are also making important progress on the marketing side of our business. We continue to negotiate on the third ethane solution and we believe we are close to finalizing the deal. In addition, we're well-hedged for the remainder of 2012 and '13 for all 3 products, gas, oil and natural gas liquids. The details of our hedge position are listed on our website. This includes how we've hedged both the light and heavy end of the NGL barrel.As we continue to focus on optimizing our portfolio we have engaged RBC Richardson and Barr to market our Ardmore Basin Woodford properties. We have about 9,300 net acres of liquids-rich Woodford properties that are currently producing about 12.3 million cubic feet equivalent per day, of which about 54% is liquids. Our Ardmore Basin Woodford properties are high quality properties. However, our current focus in the midcontinent is on our horizontal Mississipian play where we are achieving outstanding results. The position we have in the horizontal Mississippian consists of 152,000 net acres and therefore has much greater upside per share. In addition, although the rate of return in the Ardmore Woodford is very good, the rate of return in our horizontal Mississippian play is even better. The decision to market the Ardmore Woodford properties, assuming we find a buyer that recognizes the value in these properties, both increases our focus and fast-forwards the value we would have received from these properties. The results we're achieving in the horizontal Mississippian play continue to improve and impress. The average result of our 2012 drilling program is significantly better than our first 8 wells. You can view the 2012 curve as compared to the first 8 wells on a slide included in our current IR presentation on our website.
Also during the second quarter, we drilled our first horizontal Mississippian well in excess of 1,000 barrels of oil equivalent per day. Its peak 24 hour rate was 1,363 barrels of oil equivalent per day. The liquids portion of this rate was 1,122 barrels per day comprised of 782 barrels of oil per day and 340 barrels of natural gas liquids per day.We're also making good progress in the super-rich and wet areas in the Southwest portion of the Marcellus along with the dry gas portion of Northeast Pennsylvania. In particular, we just recently completed a new well in the super-rich area that flowed at a rate of 5.7 million cubic feet of gas per day and 1,000 barrels of liquids per day, of which 55% is condensate. Ray will discuss these areas in more detail and he'll also update you on our first 2 Upper Devonian wells in the superrich area in Southwest Pennsylvania. In addition, we're currently drilling our first Utica well in Northwest Pennsylvania and started drilling our next series of Cline Shale and Wolfberry wells in West Texas. Read the rest of this transcript for free on seekingalpha.com