Range Resources 2012: Production & Revenue Up, Profit Down
Range Resources, the first company to drill a horizontal Marcellus Shale well (in 2004) released it’s fourth quarter and entire year results for 2012 yesterday. Among the highlights: Range reported producing an average 753 million cubic feet per day of natural gas over the entire year—36% more than 2011. By the end of 4Q12, Range was producing 844 Mmcf/d. Much of their production comes in the oil and wet gas rich area of the Marcellus play in southwestern Pennsylvania.
Range’s CEO Jeff Ventura pointed out Range has over one million Marcellus Shale acres and the Marcellus is largely what fueled its growth in 2012. Revenues were up 18% in 2012 over 2011, but profits were down 78% (from $58 million to $13 million) largely due to the low commodity price for natural gas and NGLs. Range spent $234 million to drill 64 wells in 4Q12 and $1.36 billion to drill 298 wells for the year.
Below are select portions from the Range update impacting and reporting on the Marcellus Shale: