Range Increases 4Q10 Production by 8%
Range provided information on fourth quarter 2010 production volumes and price realizations. Fourth quarter 2010 production volumes averaged 541.0 Mmcfe per day, a record high for Range. Fourth quarter 2010 production increased 18% over the prior-year period and was 8% higher than third quarter 2010. Range has now achieved 32 consecutive quarters of sequential production growth. Production for full-year 2010 averaged 495.3 Mmcfe per day, a 14% increase over 2009. This represents Range’s seventh consecutive year of double-digit production growth. Adjusting for asset sales, the 14% production growth in 2010 would have been 19%.
The Company also announced that its preliminary fourth quarter 2010 oil and gas price realizations (including the impact of cash-settled hedges and derivative settlements which would correspond to analysts' estimates) averaged $5.33 per mcfe. This represents a 19% decrease from the prior-year period, but a 7% increase as compared to the third quarter 2010. Production and realized prices by each commodity for the fourth quarter were: natural gas – 409.9 Mmcfe per day ($4.38), natural gas liquids – 16,316 barrels per day ($42.09) and crude oil – 5,527 barrels per day ($72.41).
For 2011, the Company has hedged 408,200 Mmbtu per day of anticipated natural gas production. The volumes are hedged at an average floor price of $5.56 per Mmbtu and an average cap price of $6.48 which the Company paid an average premium of $0.33 per Mmbtu.
Commenting on the announcement, John Pinkerton, Range's Chairman and CEO, said, "Achieving our seventh year of quarter-over-quarter production growth is a remarkable milestone. Most importantly, production per share, on a debt-adjusted basis, rose nearly 13% in 2010, representing our fifth consecutive year of per-share production growth. Coupling consistent production and reserve growth per share with our low-cost structure is the formula for driving up shareholder value. With our large inventory of low-cost, high-return drilling projects, we are well-positioned to continue to create value for our shareholders."