Range Resources sees 2014 net income, production soar
Despite significantly lower commodity prices, Range Resources on Tuesday reported strong fourth quarter 2014 results, particularly in net income and record annual production.
Range, which is headquartered in Fort Worth, Texas, but has its Appalachian Basin headquarters in Southpointe, saw a profit of $284 million, or $1.68 per share for the quarter ended Dec. 31, compared to $28 million, or 17 cents per share for the comparable quarter of 2013.
The company, which does nearly 95 percent of its drilling in the Marcellus Shale, also reported in a news release after the close of Tuesday’s stock market it had record annual average daily production of 1,162 million cubic feet per day, an increase of 24 percent over 2103.
It also reported its total proved reserves increased by 26 percent to 10.3 trillion cubic feet, with reserves replacement of 581 percent at 64 cents per thousand cubic feet with all-in finding and development costs.
Range reported its net income for 2014 was $634 million versus $116 million in 2013.
Its 1,162 Mmcfe per day production last year included 32 percent liquids, a 24 percent increase over 2013. It said fourth quarter 2014 production increased 26 percent over the prior-year period to 1,277 Mmcfe per day with 31 percent liquids, another record high.
Oil and natural gas production increased 53 percent over the prior-year fourth quarter.
Chief Executive Officer Jeff Ventura said despite starting the new year with lower commodity prices, the company is well positioned.
Noting that the company began 2015 with lower debt, with its credit facility providing more than $1 billion of liquidity, “we also expect to continue to lower our cost structure and achieve further capital efficiency gains from longer laterals, technical improvements and by drilling in areas of existing infrastructure.”
Range, which earlier announced a 46 percent reduction in its 2015 capital expenditures, still sees substantial production growth of 20 percent.
Late last week, the company announced it will close its 100-employee Oklahoma City office and consolidate its operations with the Fort Worth headquarters. The company said about one-third of the Oklahoma office employees were offered transfer positions at other offices.