Range ropes in profits on solid production

by on July 24, 2012 10:48 pm BST

The Fort Worth-based company also said it was planning to sell its holdings
in the Ardmore basin, located in the heart of the Woodford shale in southern Oklahoma.

Range posted revenues of $442 million for the three months that ended in
June, a 32% increase over the same period last year.

This led to an adjusted income of $18.1 million, or 11 cents per share. That
was down from $43.2 million a year ago.

The drop came as a result of a 32% decrease in natural gas prices compared
to a year earlier and an 18% decrease in natural gas liquids.

The blow to realised prices was dampened by a 42% increase in production. Range
said it expects production for the full year to come in 35% higher than last
year, as the company hits the higher end of its annual production guidance.

Range reported average quarterly production of 719.3 million cubic feet
equivalent per day, 80% of which was gas. Gas production grew by 48% in the
quarter while oil production increased by 23% to 6846 barrels per day.

The company also said it is planning to sell all of its Woodford shale
properties in the Ardmore basin.

“With higher returns in the Marcellus and horizontal Mississippian projects,
Range has determined to market the Woodford properties and focus its efforts on
these two projects which also have greater scale and potential upside,” the
company said in a statement.

The Woodford properties include 9300 net acres currently producing 1100
barrels of liquids per day and 5.7 MMcfpd, with multiple infill drilling
opportunities at “very good rates of return”.

For full financial and production results, as well as detailed operational
updates, click here.