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Range Touts Longest Marcellus Lateral Ever; Cuts Planned TILs Due to Longer Laterals

Share Print Bookmark    |    Monday,October 29,2018

Range Resources reported its Q3 2018 results.

Asset Sale

• Following third quarter 2018, Range signed and closed the sale of a proportionately reduced 1% overriding royalty in its Washington County, Pennsylvania leases for gross proceeds of $300 million.

Record Marcellus Lateral; TIL Plans Cut Due to Longer Laterals

In southwest Pennsylvania, Range recently drilled a lateral length of 18,566 feet, making it the longest lateral Marcellus well in the basin to date. 

As a result of drilling longer laterals, Range has reduced the number of wells being turned to sales in the Marcellus from 100 down to 92. 

The total lateral feet and number of stages expected to be completed in 2018 remains approximately the same.

Production Highlights

- Production averaged a record 2,267 Mmcfe per day, an increase of 14% YOY

• Southwest Pennsylvania production increased 29% over the prior-year period to 1,872 Mmcfe per day

• Liquids production averaged a record 122,783 barrels per day, an 11% increase over the prior-year period, and contributed 47% of total product revenues before hedging

2019 - Focus on Liquids

For 2019, Range plans to focus more on liquids drilling:

• In the Q3 call, Dennis Degner commented: "The additional processing and compression capacity complements our plans for shifting towards more liquids-focused drilling in 2019, which takes advantage of improved NGL fundamentals and Range's differentiated access to NGL markets. We expect that next year's well mix of wet and super-rich wells could increase to as much as 75% of our Marcellus well count, up from 60% in 2018 and the highest percentage in recent years."

Ops Update by Area

Appalachia Division

Production for third quarter 2018 averaged approximately 1,988 net Mmcfe per day from the Appalachia division, a 24% increase over the prior-year third quarter.  The southwest area of the division averaged 1,872 net Mmcfe per day during third quarter 2018, a 29% increase over third quarter 2017.  This was achieved through continued operational improvements, exceptional well results across Range’s acreage position and additional outlets for ethane during the quarter.  The northeast Marcellus properties averaged 98 net Mmcf per day and legacy acreage produced approximately 18 net Mmcf per day during the third quarter 2018.

In southwest Pennsylvania, Range recently drilled a lateral length of 18,566 feet, making it the longest lateral Marcellus well in the basin to date.  Additionally, Range recently completed two 18,000 foot laterals that were drilled earlier this year and expects to announce results from these wells with year-end earnings.

North Louisiana

Production for the division in third quarter 2018 averaged approximately 278 net Mmcfe per day.  The division brought on line two wells during the quarter, and expects to bring on line one additional well during the remainder of the year for a total of 11 wells in 2018.