Range reports record production
  by: OilOnline
  Monday, October 13, 2008

Range Resources Corporation reported that third quarter 2008 production volumes rose to 387 Mmcfe per day, a 19% increase over the prior-year period.  Range has now posted 23 consecutive quarters of sequential production growth. Approximately 80% of the Company’s production in the quarter was natural gas.

The Company also reiterated that it has hedged 69% of its estimated fourth quarter 2008 gas production at a floor price of $8.84 per mcf and 60% of its 2009 estimated gas production at a floor of $8.31 per mcf. As of the close of business yesterday, Range’s natural gas hedges were in the money by $97 million. Its oil hedges were out of the money by $55 million. Range’s hedge counterparties include 14 financial institutions, 12 of which are in the Company’s bank group. Mitsui & Co. and J. Aron & Company (Goldman Sachs) are the two counterparties not in Range’s bank group. As of the close of business yesterday, Range’s mark to market position was an unrealized loss of $4.0 million with Mitsui & Co. and an unrealized gain of $0.7 million with J. Aron & Co.

Commenting on the announcement, John Pinkerton, Range’s Chairman and CEO, said, “The third quarter production exceeded the high end of our guidance and once again reflects the high quality of our operating teams. The production results were achieved despite production being shut-in due to the impact of the hurricanes on third party pipelines and gas processing plants. We are confident that full year 2008 production will meet or exceed our 19% growth target. We are also confident that production will reach the 400 Mmcfe per day benchmark during the fourth quarter. This will put us in a terrific position as we enter 2009. Steadily growing production coupled with our low cost structure and our well constructed hedge position will drive cash flow higher in 2009. As a result, we are in a solid position to execute our business strategy and continue to build stockholder value.”

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