Range Resources today issued an update stating the company’s natural gas production for the fourth quarter of 2012 was an average 844 million cubic feet per day—an increase of 35% over the same period in 2011 and 7% higher than the third quarter of 2012. Natural gas liquids production rose an astonishing 41% over the same period in 2011.
Range is one of the largest drillers in the Marcellus Shale and much of their production comes from the Marcellus—particularly southwestern PA. Today’s Range announcement:
Range Resources Corporation today announced that its fourth quarter 2012 production volumes reached a record high of 844 Mmcfe per day. Fourth quarter 2012 production increased 35% over the prior-year quarter and was 7% higher than third quarter 2012. While total production rose 35%, oil and NGL production increased 41% during the fourth quarter reflecting the Company’s focus on its high return, liquids-rich plays. Production for full-year 2012 averaged 753 Mmcfe per day, a 36% increase over 2011. This represents Range’s ninth consecutive year of double-digit production growth and posting record production each year.
The Company also announced its preliminary fourth quarter 2012 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements which would correspond to analysts’ estimates) averaged $5.35 per mcfe, representing a 10% increase from the third quarter 2012 and an 11% decrease from the prior-year period. Production and preliminary realized prices by each commodity for the fourth quarter were: natural gas – 655 Mmcf per day ($4.22 per mcf), natural gas liquids – 21,652 barrels per day ($43.56 per barrel) and crude oil – 9,863 barrels per day ($82.30 per barrel).
Commenting on the announcement, Jeff L. Ventura, Range’s President and CEO, said, “We are pleased that fourth quarter and full year production exceeded expectations and that we achieved our ninth consecutive year of double-digit production growth. This is a significant accomplishment for the entire Range team. The 41% increase in fourth quarter oil and NGL production reflects the high-quality nature of our large drilling inventory and positions us very well in the current commodity price environment. We expect increasing liquids production, coupled with our strong hedge position, to drive substantial cash flow growth in 2013 and longer term, our high-return inventory and low-cost structure to continue to drive shareholder value.”
During the fourth quarter, Range increased its commodity hedge position. The Company currently has approximately 75% of its anticipated natural gas and crude oil production for 2013 hedged at a weighted average floor of $4.18 per Mmbtu and $94.36 per barrel, respectively. In addition, Range has 11,500 barrels of NGLs hedged above current market prices. Range’s updated hedge position is shown in the table below.
*Range Resources Corporation (Jan 16, 2013) – Range Reports 36% Full-Year 2012 Production Growth