Range Resources Corporation (ticker: RRC) will be presenting at EnerCom’s The Oil & Gas Conference in Denver on Monday, August 15, 2016

Range Resources is an independent oil and natural gas producer with operations focused in stacked-pay projects in the Appalachian and Southwestern regions of the United States. Range is credited with the discovery of the Marcellus shale play.

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The company’s growth strategy draws on a large inventory of legacy drilling opportunities to realize low finding costs. Most drilling inventory is located in shale gas reservoirs in unconventional resource plays. As of December 31, 2015, the company had 9.89 Tcfe of total proved reserves.

Highlights of the company’s first quarter 2016 financial results released April 28 include declining unit costs and operational efficiency gains. Combined with best-in-class well costs and geology, these factors were cited as providing resiliency amidst low commodity prices. The start of the company’s Mariner East project will provide relief in periods of oversupply as well as access to more favorable international pricing.

The company drilled 24 wells in first quarter 2016 with drilling expenditures of $130 million and a 100% success rate. The company expects to average three rigs running throughout 2016. First quarter production averaged 1,330 net MMcfe per day from Marcellus assets, a 17% increase year-over-year. Expected production for 2016 is projected to fall at the high-end of previous guidance, averaging 1410 to 1420 MMcfe per day after all announced asset sales.

Year-over-year operational efficiency gains included a 9% increase in stages completed per crew and a 50% increase in lateral feet per day per rig that lowered drilling costs per foot by 20%. As a result of these efficiencies, the company’s normalized well costs are the lowest among its Marcellus peers.

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As of March 31st, the company has hedged 80% of its expected 2016 natural gas production at a weighted average floor price of $3.24 per Mcf, 60% of its 2016 crude oil production at a floor price of $59.92 per bbl, and 50% of its composite NGL production. The company has also started to hedge portions of its 2017 and 2018 production.

The company’s Mariner East project, intended to expand its international marketing opportunities, was finalized in the first quarter. Facility upgrades at Marcus Hook, Penn. will allow utilization of larger LPG carriers, lowering international shipping costs. The company is currently selling ethane to INEOS, a Norwegian chemical firm, under a long-term contract. The first ethane and LPG shipments were loaded in March, making Range the first company in North America to export ethane to Europe.

In 2016, Range has secured $190 million in proceeds from completed and contracted asset sales in the Marcellus and central Oklahoma regions. The company has 400,000 acres prospective for development in the Utica, with high-quality data from three preliminary dry gas wells. In the immediate future, the company will continue focusing capital in its highly developed, lower-risk Marcellus acreage.

Announced Acquisition of Memorial Resource Development

On May 16, 2016, Range and Memorial Resource Development (“MRD”) announced a definitive merger agreement under which Range would acquire all outstanding shares of MRD’s common stock in an all-stock transaction valued $4.4 billion. The transaction is expected to close in the second half of 2016. This acquisition and existing infrastructure links to the Marcellus will allow Range to access the Terryville natural gas complex of northern Louisiana. Boards of Directors of both companies have approved the terms of the agreement and completion is subject to approval from the companies’ shareholders.

Range Resources recent company presentations may be found here. Range will present at EnerCom’s The Oil & Gas Conference® 21 in Denver, Colorado, on Monday Aug. 15. Register for the EnerCom conference here.


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