For many of the independents, first-quarter 2005 was marked by impressive increases in revenues. And, at a time when many producers are merely strategizing about increased production, 28 out of the 35 producers on the Oil and Gas Investor This Week scoreboard made it happen via strategic acquisitions and renewed commitments to drillbit growth. Some companies were exceptional in both increased revenues and production. In first-quarter revenue increases-compared with the same period in 2004- companies such as Plains E&P, Ultra Petroleum Corp., Range Resources Corp. and XTO Energy Inc. led the pack at 104%, 83%, 70% and 59%, respectively. EnCana Corp. was the only revenue loser, dipping 3% on hedging losses. In production gains, Plains E&P, Ultra, Range and XTO remain in the top five, joined by Chesapeake Energy. First-quarter production losers included active asset sellers, such as Denbury Resources Inc. at -19% and Anadarko Petroleum Corp. at -15%. "The year to date has been eventful for Plains...," says Jim Flores, chairman, president and chief executive officer. The Houston-based company made purchases in southern California, divested properties in East Texas and improved its hedge positions. The California acquisitions brought 17.4 million barrels of oil equivalent (BOE). The sale of the East Texas assets shed 27 million BOE for $350 million. Meanwhile, Denver-based Ultra Petroleum continues to outperform expectations, says Sterne, Agee & Leach analyst Michael Bodino. The company plans to drill more than 100 wells this year in the Pinedale Anticline in Wyoming. "Production grew 61% over the same quarter last year despite having one less day of production," Bodino says. The company is requesting drilling down-spacing approval from the Wyoming Oil and Gas Conservation Commission. If approved, the company may have more than 6 trillion cubic feet equivalent (Tcfe) of additional reserves, he says. In other basins, Fort Worth-based Range Resources is an example of a strong story that keeps getting stronger, according to Deutsche Bank equity analyst Jay Saunders. The company anticipates drilling more than 800 wells this year, most of these in the Appalachian Basin. "[Range is] keeping busy beating its production forecasts, buying and operating acreage, exploiting last year's acquisitions, and drilling more wells than earlier expected," Saunders says. The company has also kept unit costs under control, he adds. "Activity in the Appalachia has been brisk but so have often-overlooked areas of Texas, where Range has been moving ahead with drilling programs and building its position on the Gulf shelf." Brad Beago, an analyst with Calyon Securities (USA) Inc., expects upside stock-price appreciation as Range moves its project inventory from paper to production and accelerates operations. "In addition, other potentially high-impact plays, such as the Trenton Black River Deep exploration, add sizzle." As for XTO Energy, it has plenty of drillbit work ahead, Saunders says. The company has made nearly $3 billion in acquisitions during the past 18 months, of which $1 billion worth occurred in the first few months of 2005. "XTO is raising its capital budget 10% to $930 million, which is likely going toward both increasing activity and absorbing increased costs," Saunders adds. Steady performer Chesapeake Energy managed to increase its proved reserves to 5.4 Tcfe in the first quarter, up 532 billion cubic feet equivalent (Bcfe) from year-end 2004. Some 333 Bcfe of the additional proved reserves came from the drillbit; the rest, from acquisitions. Saunders says, "While [the company's] total reserve-replacement rate of 609% in the first quarter is eye-popping, we were more interested in the 246% drillbit replacement...We believe these results should garner some attention and highlight what Chesapeake is able to do post-deal-closing." As for the independents as a group, JP Morgan analyst Shannon Nome reports that while production volumes were in line or slightly better than expected for her E&P universe, pricing was about 2% weaker due to wider crude oil differentials, and costs were 2% higher than anticipated across the group. And while earnings finally surpassed the group's record set in first-quarter 2001, she points out that it took 29% higher commodity prices to get there.