On Oct. 29, Range Resources Corp. (NYSE: RRC) detailed its financial results for this year’s third quarter.
Revenues totaled $617 million, 39% higher than in third-quarter 2013. There was $213 million in net cash from operations, lower than third-quarter 2013’s $223 million. Total earnings were $146 million, higher by 663% percent than third-quarter 2013’s $19 million net income.
The quarter was impacted by a $125 million non-cash gain on derivatives $13.4 million for unproved properties’ abandonment and impairment, a $4.9 million fine for water handling and storage issues and $14 million of non-cash stock compensation expenses, Range said.
Year-over-year, gas production increased 11%, NGL production rose 109% and oil and condensate production declined 3%, the company noted. Prices for natural gas, oil and NGL averaged $4.16 per million cubic feet equivalent (MMcfe), 13% lower than third-quarter 2013’s average prices.
After hedging, 822 MMcf/d of natural gas was priced at $3.63/Mcf. About 53,640 bbl/d of NGL was priced at $22.53/bbl, and 10,710 bbl/d of oil and condensate was priced at $78.66/bbl.
Regarding liquidity, Range said its revolving credit facility was amended and restated under a new five-year agreement. The $4 billion facility’s initial borrowing base ranges between $3 billion and $2 billion, the company added. It now matures Oct. 16, 2019.
Standard and Poor’s upgraded the corporate credit rating to BB+, the company noted.
Regarding capex, $341 funded the drilling of 71 gross (68 net) wells, and completion of older wells, during the quarter. A total of $36 million was spent on acreage, $6 million was spent on gas gathering systems and $10 million was spent on exploration.
The capex budget for the rest of the year is “on track,” Range said, at $1.52 billion.
For the remainder of the year, more than 80% of its natural gas has been hedged at a weighted average floor of $3.96 per million British thermal units (MMbtu) and a weighted average ceiling of $4.38/MMbtu. More than 90% of its oil has been hedged at a floor of $92.82/bbl, as has about 50% of NGL.
Looking ahead to 2015, 452 MMbtu/d of natural gas has been hedged at a weighted average floor of $4.16/MMbtu and a weighted average ceiling of $4.32/MMbtu. Also, 9,600 bbl/d of oil was hedged a floor of $90.57/bbl.
Fort Worth, Texas-based Range Resources Corp. produces and develops domestic oil and natural gas.
Recommended Reading
Analyst: Exxon Mobil, Pioneer Deal Close Likely ‘Imminent’
2024-05-01 - With approval from the Federal Trade Commission, Exxon Mobil could close its $59.5 million acquisition of Pioneer Natural Resources after more than six months of review.
Oil, Gas Production Fee Set to Hit Colorado Producers
2024-05-01 - The deal reached this week will eliminate several proposed ballot measures targeting the fossil fuel industry ahead of this year's election, including one that would have halted drilling in summer months.
Guyana’s Stabroek Boosts Production as Chevron Watches, Waits
2024-04-25 - Chevron Corp.’s planned $53 billion acquisition of Hess Corp. could potentially close in 2025, but in the meantime, the California-based energy giant is in a “read only” mode as an Exxon Mobil-led consortium boosts Guyana production.
US Interior Department Releases Offshore Wind Lease Schedule
2024-04-24 - The U.S. Interior Department’s schedule includes up to a dozen lease sales through 2028 for offshore wind, compared to three for oil and gas lease sales through 2029.
Utah’s Ute Tribe Demands FTC Allow XCL-Altamont Deal
2024-04-24 - More than 90% of the Utah Ute tribe’s income is from energy development on its 4.5-million-acre reservation and the tribe says XCL Resources’ bid to buy Altamont Energy shouldn’t be blocked.