The company announced today large increases to its reserves
Range Resources (ticker: RRC) announced today that the company’s proved reserves have increased to 10.3 trillion cubic feet equivalent (Tcfe), an increase of 26%. In its press release, RRC also said it replaced 581% of production in 2014 from drilling. In EnerCom’s E&P Weekly for the week ended January 9, 2015, the median three-year production replacement for 87 peer companies is 354%.
The company also announced that proved developed producing reserves increased 876 billion cubic feet equivalent (Bcfe), or 22% year-over-year, while proved developed reserves increased 1,157 Bcfe, or 28% year-over-year. Year-end 2014 proved reserves by volume were 67% natural gas, 30% natural gas liquids and 3% crude oil and condensate.
Commenting on Range’s 2014 proved reserves, Jeff Ventura, Range’s Chairman and CEO said, “In 2014 we achieved per share, debt-adjusted growth in both production and reserves of 20% or more. This is the eighth consecutive year to have double-digit growth in these two key metrics.”
Capitalizing on a Record Year
In the company’s Q3’14, Range reported $616.62 million in total revenue and other income, representing a 39% year-over-year increase from $442.04 million in Q3’13. Range also reported total costs and expenses of $376.66 million, down 8% from $410.99 million in Q3’13. “[Our] capital efficiency improvement coupled with our favorable hedge position and strong balance sheet gives us confidence that we can deliver substantial shareholder value in 2015 despite the challenging commodity price environment,” said Ventura. Total costs and expenses declined by 2% despite increased production.
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