Range Announces Second Quarter Capital Expenditures, Production & Pricing
July 27 2020 - 6:00AM
RANGE RESOURCES CORPORATION (NYSE: RRC)
today announced that second quarter 2020 drilling and completion
expenditures were $99 million, and second quarter production
averaged 2,349 Mmcfe per day.
Capital Expenditures
Second quarter 2020 drilling and completion
expenditures were $99 million. In addition, during the
quarter, $5.0 million was used to fund acreage
acquisitions and gathering systems. Year-to-date capital
spending of $235 million puts Range on track to spend at or below
its capital budget of $430 million as 2020 spending was weighted
towards the first six months.
Production and Pricing
Range’s second quarter production averaged 2,349
Mmcfe per day. Range expects full-year 2020 production to be at or
slightly above 2.3 Bcfe per day, including an expected exit rate at
or above 2.3 Bcfe per day, excluding the impact of potential asset
sales.
The following table details Range’s average
production and realized pricing for second quarter 2020:
|
2Q20 Production & Realized Pricing |
|
|
Natural Gas(Mcf) |
|
NGLs (Bbl) |
|
Oil(Bbl) |
|
Natural GasEquivalent (Mcfe) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Production
per day |
|
|
1,660,743 |
|
|
|
106,772 |
|
|
7,913 |
|
|
|
2,348,856 |
|
|
|
|
|
|
|
|
|
Average NYMEX
price |
|
|
$ 1.72 |
|
|
|
|
|
$ 27.09 |
|
|
|
Differential,
including basis hedging |
|
|
(0.31) |
|
|
|
|
|
(12.28) |
|
|
|
Realized prices
before NYMEX hedges |
|
|
1.41 |
|
|
|
$ 12.80 |
|
|
14.81 |
|
|
|
Settled NYMEX
hedges |
|
|
0.61 |
|
|
|
0.71 |
|
|
30.21 |
|
|
|
Average realized
prices after hedges (a) |
|
|
$ 2.02 |
|
|
|
$ 13.51 |
|
|
$ 45.03 |
|
|
|
$ 2.19 |
(a) Numbers may not add due to rounding.
Second quarter 2020 natural gas, NGLs and oil
price realizations (including the impact of derivative settlements
which correspond to analysts’ estimates) averaged $2.19 per
mcfe.
- The average natural gas price,
including the impact of basis hedging, was $1.41 per mcf, or a
($0.31) differential to NYMEX. In the second quarter, Range
sold additional natural gas volume in Appalachia following a
pipeline outage in May that affected a portion of Range’s
transportation to the Gulf Coast. This minor impact to
differentials was offset by lower gas transportation expense in the
quarter. Range reiterates its full year 2020 natural gas
differential guidance of $0.20 to $0.26 per mcf below
NYMEX.
- Pre-hedge NGL realizations were
$12.80 per barrel, or a $0.37 per barrel premium to the Mont
Belvieu weighted barrel and approximately 47% of WTI. Lower NGL
prices in the second quarter were partially offset by lower
processing costs. Range reiterates its full year 2020 NGL
differential guidance of $0.50 to $1.50 per barrel above the Mont
Belvieu equivalent barrel.
- Crude oil and condensate price
realizations, before realized hedges, averaged $14.81 per barrel,
or $12.28 below WTI (West Texas Intermediate). Condensate
pricing in the second quarter was impacted by weakness in regional
demand. However, regional condensate demand has increased
following the second quarter, and Range expects differentials and
fundamentals to improve in second half 2020. As a result, Range
deferred some liquids-rich activity into second half 2020 and its
Appalachia condensate production is, therefore, expected to
increase versus second quarter. Due to the pricing
weakness experienced recently, Range is revising its full year 2020
condensate differential guide to $8 to $9 per barrel below WTI, an
impact of approximately $3 million in cash flow for the year versus
prior guidance.
RANGE RESOURCES CORPORATION (NYSE:
RRC) is a leading U.S. independent natural gas and NGL
producer with operations focused on stacked-pay projects in the
Appalachian Basin. The Company pursues an organic development
strategy targeting high return, low-cost projects within its large
inventory of low risk drilling opportunities. The Company is
headquartered in Fort Worth, Texas. More information about
Range can be found at www.rangeresources.com.
Range Investor Contacts:
Laith Sando, Vice President – Investor
Relations817-869-4267lsando@rangeresources.com
Range Media Contacts:
Mark Windle, Manager of Corporate Communications
724-873-3223 mwindle@rangeresources.com
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