RANGE RESOURCES CORPORATION (NYSE:
RRC) today provided an
update of its financial position including its year-end debt balance,
liquidity and current hedge position.
At December 31, 2009, Range had $1.71 billion of total debt, $83 million
less than at year-end 2008. Debt at year-end 2009 included $1.38 billion
of 10-year subordinated notes and $324 million of bank debt. Range has a
current revolving bank credit facility borrowing base of $1.50 billion
and a binding credit facility commitment of $1.25 billion. At year-end
2009, Range had $926 million of liquidity under the bank credit
facility. The first maturity of the subordinated notes occurs in 2013,
while Range’s bank credit facility matures in late 2012.
For 2010, Range currently has 69% of its anticipated natural gas
production hedged at an average floor price of $5.53 per mbtu and
average cap price of $7.33 per mbtu. For 2011, Range currently has 12%
of its anticipated natural gas production hedged at an average floor of
$6.00 per mbtu and an average cap of $7.50 per mbtu. All of Range’s
hedges are simple collars and contain no knockout provisions.
John Pinkerton, Chairman and CEO of Range Resources, commented "In 2009,
many companies inside and outside of our industry were forced to
restructure by issuing significant amounts of equity or by selling all
or part of their highest quality assets. At Range, 2009 was a banner
year as we decreased our debt outstanding, substantially increased our
liquidity and issued only a minimal amount of equity, primarily for
additional acreage in the Marcellus Shale play. We strengthened our
financial position, while at the same time we achieved double-digit
production growth and drove down both finding cost and operating cost
per unit. Most importantly, in 2009, we materially increased the
resource potential per share by de-risking more of our acreage position
and by maintaining our ownership percentage in our key projects.
Entering 2010, we are well-positioned to continue to deliver per share
value for our shareholders.”
RANGE RESOURCES CORPORATION (NYSE: RRC) is an independent oil and
gas company operating in the Southwestern and Appalachian regions of the
United States.
Except for historical information, statements made in this release,
including those relating to anticipated future production, production
growth and financial position are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. These statements are based on
assumptions and estimates that management believes are reasonable based
on currently available information; however, management’s assumptions
and Range’s future performance are subject to a wide range of business
risks and uncertainties and there is no assurance that these goals and
projections can or will be met. Any number of factors could cause actual
results to differ materially from those in the forward-looking
statements, including, but not limited to, the volatility of oil and gas
prices, the results of our hedging transactions, the costs and results
of drilling and operations, the timing of production, mechanical and
other inherent risks associated with oil and gas production, weather,
the availability of drilling equipment, changes in interest rates,
litigation, uncertainties about reserve estimates and environmental
risks. Range undertakes no obligation to publicly update or revise any
forward-looking statements. Further information on risks and
uncertainties is available in Range’s filings with the Securities and
Exchange Commission, which are incorporated by reference.
The Securities and Exchange Commission permits oil and gas companies,
in filings made with the SEC, to disclose only proved reserves, which
are estimates that geological and engineering data demonstrate with
reasonable certainty to be recoverable in future years from known
reservoirs under existing economic and operating conditions. Range uses
the terms "probable" and "possible" reserves, "unproven" or "unrisked
resource potential" or "upside" or other descriptions of volumes of
reserves or resources potentially recoverable through additional
drilling or recovery techniques that the SEC's guidelines strictly
prohibit us from including in filings with the SEC. These estimates are
by their nature more speculative than estimates of proved reserves and
accordingly are subject to substantially greater risk of being actually
realized by Range. Resource potential refers to Range's internal
estimates of hydrocarbon quantities that may be potentially discovered
through exploratory drilling or recovered with additional drilling or
recovery techniques. Resource potential does not constitute reserves
within the meaning of the Society of Petroleum Engineer's Petroleum
Resource Management System and does not include any proved reserves.
Area wide unproven, unrisked resource potential has not been risked by
Range's management. Actual quantities that may be ultimately recovered
from Range's interests will differ substantially. Factors affecting
ultimate recovery include the scope of Range's drilling program, which
will be directly affected by the availability of capital, drilling and
production costs, availability of drilling services and equipment,
drilling results, lease expirations, transportation constraints,
regulatory approvals and other factors; and actual drilling results,
including geological and mechanical factors affecting recovery rates.
Estimates of resource potential may change significantly as development
of our resource plays provides additional data. Investors are urged to
consider closely the disclosure in our most recent Annual Report on Form
10-K, available from our website at www.rangeresources.com or by written
request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102.
You can also obtain this form by calling the SEC at 1-800-SEC-0330.
