Range Exceeds Record Production by 17%
Range Resources reported that fourth quarter 2007 production volumes rose to 343 Mmcfe per day, a 17% increase over the prior-year period. On a sequential basis, fourth quarter 2007 production rose 5% compared to the prior quarter. Approximately 80% of the Company's production in the quarter was natural gas. Production for the year averaged 322 Mmcfe per day, a 17% increase over 2006. Range has now posted 20 consecutive quarters of sequential production growth.
The Company also announced that its anticipated fourth quarter 2007 oil and gas price realizations (including the impact of derivative settlements) are expected to average $8.25 per mcfe. This represents a 26% increase over the prior-year period and a 6% increase over third quarter 2007. For 2008, approximately 80% of anticipated gas production is hedged at an average floor price of $8.67 per mcf. For the fourth quarter, the Company expects to recognize exploration expense of approximately $14 million.
Commenting on the announcement, John Pinkerton, Range's President and CEO, said, "Fourth quarter production exceeded expectations due to better than anticipated drilling results. For the year, production rose 17%, exceeding our beginning of the year target despite production lost from property sales. With 20 consecutive quarters of sequential production growth, we have now grown production consistently for five consecutive years. Consistently driving up quarterly production for five straight years is a testament to our operating teams and the quality and dedication of all those on the Range team. Higher production will be the catalyst for our 2007 financial results as we anticipate achieving record results with regard to revenues, cash flow and earnings."
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