Range Resources trims jobs, reduces drilling to deal with low commodity prices

Fort Worth-based Range Resources has scaled back its drilling operations and workforce as it adjusts to low commodity prices, the company’s chief executive said today.

Jeff Ventura said the company recently trimmed jobs in Pittsburgh and Fort Worth as it remains focused on reducing costs. He made his comments on a conference call after the company reported a fourth-quarter loss of $321.8 million late Thursday, impacted by a big charge on the sale of assets.

After adjusting for nonrecurring costs and stock option expenses, the natural gas producer which operates in the Marcellus Shale in the northeastern U.S. earned 25 cents per share, well above Wall Street expectations. The average estimate of 15 analysts surveyed by Zacks Investment Research was for earnings of 8 cents per share.

Revenue for the quarter totaled of $410.7 million, down 53 percent from the fourth quarter of 2014.

Range has set its 2016 capital budget at $495 million, a 45 percent reduction from last year. On the conference call, Ventura said the company will reduce its drilling activity this year to three rigs in southwest Pennsylvania, compared to 15 rigs at the start of 2015.

He said Range has signed an agreement to sell its Bradford County assets for $112 million, including about 11,000 net acres.

“Given the sale of our Virginia assets last year coupled with the closing of our Oklahoma City office, staff reductions in our field offices last year and a recent workforce reduction in our Pittsburgh area offices and Fort Worth office, our head count today is 31 percent lower than it was this time last year,” he said.

This story was originally published February 25, 2016 at 5:47 PM with the headline "Range Resources trims jobs, reduces drilling to deal with low commodity prices."