Range sees 17 pct. increase in 3Q revenue
FORT WORTH, Texas – Range Resources said Tuesday it ended its third quarter with revenue of $482.2 million, a 17 percent increase from $413.2 million realized in the prior-year quarter.
The Ft. Worth, Texas-based company reported earnings after the close of Tuesday’s stock market. It has its Marcellus Shale drilling operations in the Appalachian Basin based in Southpointe.
The company’s financial performace was backed by an increase in oil and gas production and higher price realizations, which were partially offset by higher expenses.
Range said its year-to-date GAAP net income was $112 million, or 45 cents per share, compared to a net loss of $361 million, or $2.10 per share for the comparable quarter of last year.
The company had record third-quarter production of 1.99 billion cubic feet per day, a 32 percent increase compared to the third quarter of 2016. It said third-quarter natural gas liquids pre-hedge realized prices improved 52 percent to $16.93 per barrel versus $11.17 per barrel for the third quarter of 2016.
In reporting its Appalachian Division activities, Range said production in the third quarter averaged 1.60 billion cubic feet per day, a 15 percent increase over the prior-year quarter. Overall production and realized prices by each commodity for the third quarter were natural gas (1,322 MMcf perday at $2.48 per mcf); natural gas liquids (96,661 barrels at $16.93 per barrel); and crude oil and condensate (14,003 barrels per day at $43.34 per barrel).
Range said its expenses for the third quarter were $681.9 million, a year-over-year increase of 45 percent.
“This is an exciting time for Range as we are nearing an inflection point in our Marcellus development and continue to improve well results in North Louisiana,” said Range CEO Jeff Ventura. “In the Marcellus, the last of our natural gas transportation projects are coming on line over the next few months” which he said enables the company “to develop our Marcellus position over the long-term while having access to better priced markets.”
For the fourth quarter, the company’s production guidance stands pat at 2.2 billion cubic feet equivalent per day. Range also reiterated its 2017 capital budget of $1.5 billion.