Range Resources released its 2016 update on Wednesday and held an earnings call yesterday to discuss it. In what should be a big red warning flag for Pennsylvania Gov. Tom Wolf, Range CEO Jeff Ventura said, “2016 was a significant year for Range, as we completed the acquisition of Memorial Resource Development in September, providing Range operational and geographic diversity with wells that rival our prolific Marcellus wells.” The Memorial purchase provides Range with 220,000 acres on which to drill–in Louisiana (see Range Resources Buys Louisiana Driller in Deal Worth $4.4B). No, Range isn’t leaving the Marcellus–yet. But if Wolf persists with an idiotic plan to enact the highest severance tax in the country, Range now has options–and they won’t hesitate to use those options. In 2016, Range reported natural gas production of 375.81 billion cubic feet (Bcf), which works out to 1.03 Bcf/d. That’s up 3.6% versus 362.69 Bcf, or 994 MMcf/d, in 2015. For 2017, Range will split its drilling budget. The company is spending $1.15 billion on drilling this year: two-thirds will be spent in the Marcellus and one-third (disappointingly) will be spent in Louisiana. Pay attention Gov. Wolf–already we’re seeing a shift! As for top line numbers, Range lost $521 million in 2016, vs. losing $714 million in 2015. Losses in 4Q16 were down a lot from the previous year: Range lost $161 million in 4Q16 vs. losing $322 million in 4Q15. Below is the Range update, along with a portion of the earnings call (interesting comments by Range’s COO Ray Walker), the latest PowerPoint slide deck and Range’s SEC 10-K report…
