Range Resources 2Q15: Record High Production, Net Inc. Drops 168%

Range Resources Corporation, the very first Marcellus driller and one of the largest, continues to focus primarily on the Marcellus/Utica region. They also drill in the Midcontinent region, but most of their effort and time is spent in the Appalachian Basin. Yesterday Range released their operating and financial update for second quarter 2015. Among the highlights: Production averaged 1.373 billion cubic feet per day equivalent (Bcfe/d), a 24% increase over 2Q14 and a new record high for the company. Range reduced drilling costs by 11% year over year. However, the company is clearly scaling back in 2015. Range drilled and completed 89 wells in the Marcellus/Utica region during the first half of 2015, but they plan to cut that in half for the second half of 2015–planning to drill and complete an additional 44 wells. Low prices have affected Range like all of the other E&Ps we’ve covered thus far. Quarterly revenues dropped 68% year over year–from $765.5 million in 2Q14 to $247.5 million in 2Q15. Adding in expenses, Range’s net income for 2Q14 was $171.4 million in 2Q14 and dropped to minus $118.6 million in 2Q15–a 169% drop. But help on the price front for Range is on the way according to the update, in the form of two pipeline projects Range expects to go online soon…

Please Login to view this content. (Not a member? Join Today!)
Password Reset
Please enter your e-mail address. You will receive a new password via e-mail.