Range Resources Share Discussion Threads

[sagem] 02/5/2010 14:19

Sorry folks wrong Range Resources its all very confusing this company that I posted is apparently Range Resources RRC and not RRL MY APOLOGIES

[alistair4444] 02/5/2010 13:48

Fairdeal2008 - ASX has not yet reflected this sentiment you speak of has it. LSE on the other hand has been more positive. This is reflected in the difference between Aussie / UK boards, just observation.

[fairdeal2008] 02/5/2010 13:25

Depends what the Texas report says. It is not a foregone conclusion despite many people suggesting such.

If this is really positive it could hugely increase the market cap - I am sure the asx will reflect the value in positive news.

imho

[alistair4444] 02/5/2010 12:32

BearHug2 - I have every confidence PL and his team after all we are in the same boat so to speak re investment.- Just glad we have Texas the producer now

[bearhug2] 02/5/2010 12:17

Alistair, i hope they do..im sure they know what they are doing. My observation was merely my negative side coming out i think its good to see both sides..As stated before many times on here Texas is the start and i to will be holding on to see what Puntland brings..

[alistair4444] 02/5/2010 12:14

BearHug2 - Well if you think this why do Range not now wait now until Tuesday morning when London opens for any news release, its where the volume is now.

[fairdeal2008] 02/5/2010 12:11

PWhite73 - 2 May'10 - 12:09 - 9666 of 9666 (Filtered)

Good to see you back.

[pwhite73] 02/5/2010 12:09

sparty1 - 30 Apr'10 - 14:01 - 9629 of 9662

"I notice a certain whiter than white poster has been quiet? back at school then?"

My services helping other small private investors save money have been required elsewhere. However I am keeping an eye on this stock. The latest bout of buying has been due to the CEO advising select shareholders a reserve report will be out next week. Such actions in the UK would be deemed unlawful and anybody who bought or sold on this news is guilty of trading with with insider information.

As for the report itself (assuming it ever comes out) I suspect it to be spruced up to give the impression a Rajasthan Field has been found in America's backyard. The reality is the quantities of oil and gas produced from Texas are uncommercial.

Just remember I have recently won a six month battle with over a 100 posters on the Solo Oil thread. The battle was over whether Likonde-1 would be a commercial find or a dry hole. It proved to be a dry hole. Solo Oil's shareprice has since plunged 60%.

Lets see who's eventually proven right PWhite73 or you guys.

[bearhug2] 02/5/2010 12:09

Dane,Alistair, i have to agree it seems like a territorial tax for resource production on aussy land or waters..It could of been made clearer i think but as its breaking news hopefully they will clarify..I just worry that this will overshadow the relaease if it comes tonight/tomorrow in oz or here...GL all

[dane1606] 02/5/2010 12:01

Bearhug- i spotted that to and i think that the new tax is on mining projects in Australia for what i can make out.I know it seems to be causing a bit of alarm with BHP and RIO shareholders.

[fairdeal2008] 02/5/2010 11:43

Yes but it is a very good announcement from "Range" none the less...

[bearhug2] 02/5/2010 11:30

Hi All read a lot of stuff on here from very informed posters..Glad to be along for the ride..

Does anyone think this will have any effect..Not clear if its the company registration ie austrailian companies or the actually location of the resource that will be hit..

Australia's government has angered its booming resources

sector by unveiling a new tax on mining projects from July 2012

under a sweeping pre-election tax overhaul which will also boost

pension savings for workers..

BHP seem not to happy about it...

[someuwin] 02/5/2010 10:41

...Yes I do actually - lol

[linslader] 02/5/2010 10:40

someuwin ..... do you still giggle at cartoons, grow up.

[1jessica] 02/5/2010 10:10

Any news release due this week must surely take into account that London has taken over as the driving force behind Ranges share price lately - scepticism still persists with Skippy. So why not wait until LSE open before any RNS ?

[someuwin] 02/5/2010 10:04

LOL @ SAGEM

[shrule] 02/5/2010 09:05

Sagem

Keep up the good work we are all here to make a few bob, thats what it is all about.

[phil4711] 02/5/2010 08:57

Hoorah Henry - 2 May'10 - 07:55 - 9652 of 9652


Wrong Range Sagem

D'oh!

[romeoandjuliet] 02/5/2010 08:51

Sagem shows his ramping credibility!

[hoorah henry] 02/5/2010 07:55

Wrong Range Sagem that announcement is not RRL

[sagem] 02/5/2010 07:45

Let us not forget that this was a first class report by Range Resources ;-

Range Resources Announces First Quarter 2010 Results
28 April 2010

Range Resources Corporation announces its first quarter 2010 results. For the quarter, Range achieved three key objectives; consistent double-digit production growth, lower unit costs in nearly all categories and a stronger financial position through asset sales and capital discipline. Production averaged 465 Mmcfe per day, a record high for the Company and a 12% increase over the prior-year quarter. This represents the 29th consecutive quarter of sequential production growth. On a unit of production basis, direct operating costs, exploration expense, general and administrative expense and depletion, depreciation and amortization expense (excluding non-recurring items) all decreased over the prior-year quarter. At quarter end, Range completed the initial closing of the sale of its tight sand properties in Ohio, collecting approximately $300 million of proceeds. As a result, Range's financial position strengthened as its net debt-to-book capitalization ratio was reduced to 36%, versus 43% for the prior-year quarter.

Reported GAAP net income increased to $77.6 million compared to $32.6 million for the prior-year quarter. Diluted earnings per share more than doubled to $0.48. Net cash provided from operating activities increased 2% from the prior-year quarter to $153 million. Adjusted net income comparable to analysts' estimates, a non-GAAP measure, was $25.9 million or $0.16 per share. Due to lower realized prices, cash flow from operations before changes in working capital, a non-GAAP measure, declined 7% to $147 million. On the same basis as analysts' estimates, earnings per share and cash flow from operations both exceeded average analysts' estimates for the first quarter.

Commenting on the announcement, John Pinkerton, Range's Chairman and CEO, said:
"The first quarter was an outstanding quarter for Range. Several years ago, we began to transform the Company by proactively high-grading our asset base. We targeted our capital into higher return, lower cost plays and began a program of selling our more mature, higher cost properties. Including the initial closing of the Ohio property sale, over the past three years, we have reduced our well count by 57%, while increasing our production by 52%. Today, we are a far more efficient company, doing more with less. In the first quarter, we achieved double-digit production growth while reducing unit costs in nearly all categories. As the impact of this transformation continues, we expect unit costs to decline further in 2010 and 2011. Currently, we have 77% of our expected 2010 natural gas production for the balance of the year hedged at a floor of $5.54 per mcf and recently increased our 2011 natural gas hedge position to 51% at a floor of $5.73 per mcf. With our large inventory of high-return projects, low cost structure, attractive hedge position and strong financial position, we are exceedingly well positioned to continue to drive up per share value in the quarters ahead."

Financial
(Excludes non-cash mark-to-market and non-cash stock-based compensation items shown separately on attached tables)
For the quarter, production averaged 465 Mmcfe per day, comprised of 375 Mmcf per day of gas (81%) and 14,954 barrels per day of oil and natural gas liquids. Compared to the prior-year quarter, oil production declined 29% due to the sale of our West Texas oil properties last year, natural gas liquids production rose 96% as a result of sharply rising production in the "wet" area of the Marcellus Shale play. Wellhead prices, including cash-settled derivatives, averaged $5.57 per mcfe, a 16% decrease versus the prior-year quarter. The average gas price was $4.77 per mcf, a 26% decrease, and the average oil price rose 17% to $69.72 a barrel. Oil and gas sales (including cash settled derivatives) declined 6% compared to the prior-year quarter to $233 million.

Direct operating expenses for the quarter were $0.73 per mcfe, a 22% decrease versus the prior-year quarter of $0.93. Production taxes were $0.19 per mcfe, a 14% decline versus the prior-year quarter of $0.22 per mcfe due to lower commodity prices. Exploration expense in the first quarter totaled $13.5 million, up from $12.3 million in the prior year due primarily to higher delay rental payments. General and administrative expenses were $0.49 per mcfe, a one cent decrease from the prior-year quarter. Interest expense rose to $30.3 million ($0.72 per mcfe) compared to $26.6 million ($0.71 per mcfe) in the prior-year quarter for a one cent per mcfe change, due to terming out short-term floating rate bank debt with longer term fixed rate notes. Depreciation, depletion and amortization decreased 6% to $2.12 per mcfe, versus $2.25 per mcfe in the prior-year quarter.

At quarter end, Range completed the initial closing of its Ohio property sale which generated approximately $300 million of proceeds. The sale resulted in the recording of a pre-tax gain of $69 million in the first quarter. Range anticipates receiving an additional $23 million of sale proceeds in the second quarter once additional third-party consents are received. The Ohio properties, which consisted of roughly 3,300 wells, were producing approximately 25 Mmcfe per day.

Operational Highlights
First quarter drilling expenditures totaled $163 million, funding the drilling of 72 (57.9 net) wells. A 100% success rate was achieved with all wells productive. At quarter end, 49 (39.9 net) wells were in various stages of completion or waiting on pipeline connection. In addition, $19.8 million was expended on acreage and $4.7 million on expanding gas gathering systems and $13.5 million for exploration expense.

During the quarter, the Marcellus Shale Division continued its evaluation of Range's horizontal Upper Devonian and Utica test wells in Pennsylvania. Initial results of both wells are encouraging and both wells are currently awaiting pipeline connection. To date, Range has drilled 120 horizontal Marcellus wells, of which 31 are awaiting completion and eight are awaiting pipeline hook up. In the southwest portion of the play, where we have drilled the majority of our wells and have been accumulating data for over three years, the average estimated ultimate recovery ("EUR") for a Marcellus horizontal well with an average lateral length of 3,056 feet and completed with 10 stages is 5.0 Bcfe gross versus our prior completion which resulted in an average estimate of 4.4 Bcfe per well. The zero time plots for all those wells are now on our website. We are increasing our range of EURs for the entirety of our "high-graded" acreage in Pennsylvania to 4.0 to 5.0 Bcfe up from 3.0 to 4.0 Bcfe per well. As has been demonstrated in other shale plays, it appears that the longer laterals and additional frac stages result in higher initial production rates, higher EURs and improved economics. Currently, we are running 13 drilling rigs in the Marcellus play. Plans are to exit 2010 with up to 16 rigs. Range is still on track to exit 2010 at 180 to 200 Mmcfe net per day. For 2011, we plan to increase our rig count in the Marcellus and exit the year with up to 24 rigs running. Finally, the contracted build out of the Marcellus midstream infrastructure is progressing as scheduled. During the first quarter Range entered into a multi-phase gathering and compression agreement with a third-party to initially build the dry gas pipeline and compression capacity to meet our needs in the Lycoming County area. The first phase volumes are expected to come on line by year end 2010 in Lycoming County.

Range's Southwest Division had a strong quarter, despite reducing from six to eight rigs a year ago to one to two currently. Drilling activity was highlighted by the completion of five excellent wells in the Barnett Shale. One of the new wells in eastern Hood County was put on production at a rate of 4.6 (3.5 net) Mmcfe per day, representing our highest rate well to date in this portion of the play. In Parker County, a new well was put online at a gross rate of 6.0 (4.5 net) Mmcfe per day. Additionally, on the Tarrant/Dallas county line, we recently put three wells online at a combined gross rate of 12.0 (9.0 net) Mmcfe per day.

In the Permian Basin, our team continued its success in exploiting the Strawn formation. Range deepened five wells with resulting production of 226 (170 net), 534 (400 net), 673 (504 net), 727 (545 net) and 778 (584 net) barrels of oil per day. These deepenings have excellent economics of greater than 100% rate of return and less than $1.00/mcfe finding and development costs. Range also drilled one new well resulting in a rate of 740 (555 net) barrels of oil per day. New well economics are also exceptional with 95% rate of return and finding and development costs of $1.75/mcfe.

During the first quarter 2010, Range's Appalachian Division continued to focus on its key coal bed methane, shale and tight gas sand drilling projects in Virginia drilling a total of 25 (12.5 net) wells. During the quarter, Range drilled 14 vertical and one horizontal coal bed methane well. Range also drilled nine vertical tight gas sand wells and one horizontal Big Lime well in the Nora field. One of the vertical tight gas sand wells was an exploratory step-out that was drilled three miles from the nearest production and tested 1.4 Mmcf per day. We have reduced our coal bed methane drilling by about 50% in 2010, since we own the mineral rights in the Nora field and are not required to drill in order to hold acreage.

Approximately 7% of our capital budget is being directed to the Midcontinent Division, where we are primarily targeting the St. Louis play. In the St. Louis play, drilling and completion costs are approximately $1.3 million and reserves are estimated to be approximately 2.0 Bcfe per well. During the quarter, the division added a Granite Wash discovery in the Texas Panhandle with initial production rates of 2.4 (1.9 net) Mmcfe per day. At a depth of 9,500 feet and well costs of $1.2 million with a reserve potential of 1 Bcfe to 2 Bcfe, this discovery increases our inventory of Granite Wash locations in the area to almost 100 vertical well opportunities. Importantly, both of these plays have an oil component, which adds to already strong economics. Currently, Range has one rig active in the Texas Panhandle, drilling Granite Wash and St. Louis objectives. In the northern Oklahoma shallow oil play, two additional horizontal wells were spud during the quarter, with completions anticipated in May. Range drilled its first horizontal well in the fourth quarter of 2009 which yielded initial production rates of 517 (417 net) barrels of oil per day. This rate was 13 times the initial vertical well rate at just three times the vertical well cost.

[davethechef] 01/5/2010 23:40

Remember a week from bank hol mon & RRL & AOI are invoved in the E.Africa Energy event in Kenya, who knows maybe some news on Puntland to coincide?