Exploration & Production | Quarterly / Earnings Reports
Range Reports Impressive Marcellus Shale Results
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Range Resources Corp. has reported its first quarter 2013 financial results.
First Quarter Highlights:
- Record daily production of 876 Mmcfe per day, an increase of 34% over prior-year quarter
- Cash flow was $219 million, an increase of 34% as compared to the prior-year quarter, despite lower prices
- Liquids-rich Marcellus in southwest Pennsylvania continues to provide impressive results
- Refinanced higher cost debt with completion of a $750 million senior subordinated notes offering at 5%
- Asset sale for $275 million closed April 1st
Southern Marcellus Shale Division -
During the first quarter, the division brought online 25 wells in southwest Pennsylvania, with 20 wells in the super-rich area and five wells in the dry area. The initial production rates of the new wells averaged 11.5 (9.2 net) Mmcfe per day with 65% liquids. During the quarter, the division completed a two-well pad in the super-rich area at an average 24-hour rate per well of 3,371 (2,805 net) boe per day that was 59% liquids (397 barrels condensate, 1,607 barrels NGLs and 8.2 Mmcf gas). A six-well pad completed in the super-rich area had an average 24-hour rate per well of 2,340 (1,955 net) boe per day that was 65% liquids (513 barrels condensate, 1,010 barrels NGLs and 4.9 Mmcf gas).
Subsequent to the end of the quarter, another six-well pad in the same super-rich area is now producing to sales under constrained facility limitations at an average 24-hour rate per well of 1,860 (1,577 net) boe per day composed of 64% liquids (502 barrels condensate, 688 barrels NGLs and 4.0 Mmcf gas).
Infrastructure and capacity additions remain on track as Range continues to work closely with the midstream companies transporting and processing its production. At quarter-end the backlog of wells waiting on completion or pipeline connection increased to 64 wells. Range expects to turn to sales a total of 102 wells in the southern Marcellus during 2013.
Northern Marcellus Shale Division -
In northeast Pennsylvania, Range drilled seven wells in the first quarter. Two significant wells were drilled in Lycoming County that produced at an average 24-hour rate per well of 14.7 (12.5 net) Mmcf per day from an average lateral length of 4,184 feet with 13 frac stages. In total, 10 wells in this division were turned to sales in the first quarter. As a result, the Company’s backlog of uncompleted wells and wells waiting on pipeline connection declined to 25 at quarter-end. Range anticipates drilling another 15 wells and working off some of its backlog in northeast Pennsylvania during the remainder of 2013.
At the end of the first quarter, in the Bradford County area operated by Talisman, there were a total of 17 (4.5 net) wells producing, 44 (11.6 net) wells waiting on completion or pipeline connection.
In northwest Pennsylvania, Range continues to monitor offset Utica Shale activity where the Company has approximately 181,000 net acres of leasehold.