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.
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