Range Announces $254 Million Capital Budget for 2005

Range Resources announced that a $254 million capital budget has been set for 2005. The budget, which excludes acquisitions, represents a 44% increase over 2004 expenditures. Roughly 60% of the increase relates to developing the properties acquired in 2004. The budget includes $212 million for drilling and recompletions, $30 million for land and seismic and $12 million for the expansion and enhancement of gathering systems and facilities. Of the drilling and recompletion capital, 85% is attributable to lower risk development and exploitation activities and 15% is attributable to higher risk exploration. Acquisitions, particularly those in proximity to existing properties, will continue to be pursued but are considered too unpredictable to be specifically budgeted. Based on the current futures prices and existing hedges, 2005 capital spending is projected to be funded with approximately 80% of internal cash flow. Excess cash flow may be used to fund acquisitions, increase capital expenditures, reduce debt or repurchase stock.

In 2005, the Company expects to drill 787 gross (586 net) wells and to undertake 75 gross (53 net) recompletions. Approximately 46% of the budget is attributable to the Appalachian region, with 43% allocated to the Southwest region, which includes the Permian Basin, the Midcontinent and East Texas. The remaining 11% is attributable to onshore Gulf Coast and the Gulf of Mexico.

Commenting, John H. Pinkerton, Range's President, said, "Last year proved extremely rewarding for Range and its shareholders. While year-end engineering is not complete, the 2004 drilling program was clearly successful and our acquisition effort yielded extraordinary results. In total, we expect that reserves will nearly double to over 1.1 Tcfe. The increase in the 2005 capital budget reflects opportunities generated by last year's drilling and acquisitions, an attractive project inventory and the Company's enhanced financial strength. The 2005 budget reflects owning the Great Lakes and Pine Mountain assets for a full year for our own account. We have invested in a larger organization over the past several years to prudently manage the expanding capital programs being generated from our Company's larger asset base and multi-year drilling inventory. We expect the 2005 drilling program will generate exceptional rates of return further increasing reserves and production. For 2005, we have set a year-over-year production growth target of 20%."