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.

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