Business

April 30, 2014

Range Resources swaps West Texas assets for Virginia wells, pipelines

The Fort Worth producer reports net income of $32.5 million in the first quarter, but its revenue falls short of estimates.

Fort Worth-based Range Resources said Wednesday that it will receive $145 million in cash as part of a swap in production it owns in West Texas for an increased stake in wells and pipelines in Virginia.

Range said it will give EQT Corp. 73,000 net acres producing about 28 million cubic feet of natural gas equivalent in Glasscock and Sterling counties. EQT will give Range its 50 percent interest in 138,000 net acres and 1,200 miles of gathering pipelines in the Nora Field in Virginia, plus the cash.

Range already held the other 50 percent of the Nora Field properties, which produce 41 million cubic feet of gas a day. It said its 2014 capital budget is unchanged at $1.52 billion.

On Monday, Range released its first-quarter earnings, reporting a $32.5 million net profit on $457 million in revenue.

After adjusting for unusual items, the independent producer said it earned $74.1 million, or 46 cents a share, topping financial analysts’ consensus estimate of 38 cents but falling short of Wall Street’s revenue projection of $502 million.

Range said its production averaged a record 1.056 billion cubic feet equivalent a day during the quarter, up 21 percent from a year earlier.

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