Range announces Q2 2014 results

Range Resources Corp. has announced its results for Q2 2014. The company reports a 19% rise in net income to US$ 171 million, while its estimated production for the year increased to 25%.

Range Resources also noted that it had continued to expand its marketing efforts towards new customers outside the Appalachian Basin during Q2 2014. The company announced several marketing arrangements to support its future natural gas and natural gas liquids production growth. Specifically, the company signed its first two LNG supply agreements, two additional ethane sales contracts and an agreement to transport up to 400 000 million Btu/d per day on Energy Transfer's Rover pipeline. The Rover system will provide Range the flexibility to move Marcellus natural gas north to Dawn, Ontario and south to the Gulf Coast. Being a foundation shipper on the planned Rover system, residue natural gas will be picked up at the tailgate of a new processing plant to be built, thus eliminating any gathering cost to move residue gas from the plant to a large diameter take away pipeline. 

Commenting on the announcement, Jeff Ventura, Range’s President and CEO, said: “We have confidence in our ability to grow our net production to 3 Bcfe per day, nearly three times where we are today. The wells have been identified, the compression and plants have been scheduled, and the takeaway capacity to multiple markets has been secured. Our long range plan, based on current strip pricing, estimates our operations to be cash flow positive in 2016. We believe our growth should coincide with the increased demand for natural gas, which will further accelerate our cash flow growth as prices improve. In addition, we expect continued improvements in our operating cost structure, more efficient capital spending, greater cost efficiency on gathering as we drill in areas of existing infrastructure and better well results as we continue to drill longer laterals with enhanced completion designs.”

Adapted from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/liquefaction/29072014/range-announces-q2-2014-results-1086/