Range Resources announced first quarter production numbers yesterday and its very good news. Production volume is up 34% over the first quarter of 2012–to a new high of 876 million cubic feeet per day (Mmcfe/d). According to Range, the increase is mostly due to the Marcellus Shale.
The Range announcement:
Range Resources Corporation today announced that its first quarter 2013 production volumes reached a record high of 876 Mmcfe per day, a 34% increase over the prior-year quarter. Production was 79% natural gas, 14% natural gas liquids (“NGLs”) and 7% crude oil and condensate. Year-over-year oil and condensate production increased 52%, NGL production rose 22%, while natural gas production increased 34%. The record production was driven by the continued success of the Company’s drilling program primarily in the Marcellus Shale. First quarter production of 876 Mmcfe per day exceeded the high end of guidance of 845 – 850 Mmcfe per day due to the timing of turning wells to production.
The Company also announced its preliminary first quarter 2013 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements which would correspond to analysts’ estimates) averaged $5.06 per mcfe, a 3% decrease from the prior-year period. Production and preliminary realized prices by each commodity for the first quarter were: natural gas – 689 Mmcf per day ($4.09 per mcf), NGLs – 20,994 barrels per day ($35.29 per barrel) and crude oil and condensate – 10,141 barrels per day ($85.46 per barrel). Third-party transportation, gathering and compression fees are expected to average approximately $0.80 per mcfe for the first quarter due to added transportation costs applicable to higher than expected production volumes from the Marcellus Shale.
Commenting on the announcement, Jeff Ventura, Range’s President and CEO, said, “We are off to a terrific start with our first quarter production results. We are well on track to achieve our production growth target of 20% to 25% for 2013. More importantly, we believe that we have line-of-sight production growth of 20% to 25% for many years. This growth will be led by our approximately one million net acre leasehold position in Pennsylvania. The strong growth, coupled with high returns, low cost and low reinvestment risk will drive substantial per share value for years to come.”
The information in this release is unaudited. Final results, including final first quarter 2013 product price realizations (including the impact of cash-settled hedges and derivative settlements) and costs will be provided in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 currently planned to be filed with Securities and Exchange Commission by the end of April 2013.*
*Range Resources Corporation (Apr 11, 2013) – Range Announces First Quarter Production Results