Range Resources’ earnings jump to $144 million in second quarter

Posted Thursday, Jul. 25, 2013  comments  Print Reprints
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Fort Worth-based Range Resources earned $144 million on revenue of $673 million in the second quarter, the oil and gas producer said Wednesday.

After adjusting for the accounting of hedging activities, asset sales and other nonoperating items, Range earned $55 million, or 34 cents a share. That compared with Wall Street’s consensus estimate of 32 cents.

The company released its earnings after the close of stock trading. Its shares (ticker: RRC) were down slightly in after-hours trading after falling a little less than 1 percent in regular trading to close at $76.05.

Among the unusual items during the quarter were a gain of $159.5 million on hedges and an $83.3 million gain on the sale of New Mexico properties April 1.

It also booked a previously disclosed $53 million charge for lawsuit settlements.

In June, Range said it settled a class-action lawsuit concerning royalty payments in Oklahoma for $87.5 million. It had booked $35 million to cover the case and said at the time that it would book the rest in the second quarter.

Range said it averaged record daily production equivalent to 910 million cubic feet of gas during the quarter, up 27 percent from a year earlier.

It said it reduced its unit costs by 7 percent. After the effect of hedges, Range averaged $5.02 per 1,000 cubic feet equivalent on its sales of gas, natural gas liquids and oil.

CEO Jeff Ventura said in a statement that Range expects to reach the high end of its production forecast for 2013, which calls for a 20 to 25 percent gain over 2012.

Ventura noted that the company, which has long focused on the Marcellus Shale in Pennsylvania and West Virginia, began deliveries Sunday of Marcellus ethane to the Mariner West pipeline, which “will allow us to continue our planned growth without concern for pipeline quality requirements.” Range also significantly boosted its estimated ultimate recovery averages for its southwest Pennsylvania wells.

Range said it spent $262 million on drilling during the quarter, including money for eight test wells in the busy Wolfberry formation of West Texas.

It said it expects $1.3 billion in capital spending for the year.

Jim Fuquay, 817-390-7552 Twitter: @jimfuquay

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