SEC Filings

8-K
RANGE RESOURCES CORP filed this Form 8-K on 02/23/2017
Entire Document
 

mcfe, a 14% decrease from the prior year.  Additional detail on commodity price realizations can be found in the Supplemental Tables provided on the Company’s website.  

 

 

Production and realized prices by each commodity for 2016 were:  natural gas – 1,027 Mmcf per day ($2.68 per mcf), NGLs – 76,026 barrels per day ($13.16 per barrel) and crude oil and condensate – 9,861 barrels per day ($47.82 per barrel).  

 

 

The 2016 average Company natural gas price differential including the impact of basis hedging improved to ($0.45) per mcf compared to ($0.52) per mcf in the prior year.  The 2016 average natural gas price, before all hedging settlements, decreased to $2.06 per mcf as compared to $2.13 per mcf in the prior year.  NYMEX natural gas financial hedges increased realizations $0.61 per mcf for 2016.  

 

 

Pre-hedge NGL realizations improved to 26% of WTI in 2016, compared to 18% of WTI in 2015.  Total NGL pricing per barrel including ethane and processing expenses after realized cash-settled hedging was $13.15 per barrel compared to $10.73 in the prior year.  Hedging increased NGL prices by $1.71 per barrel in 2016 compared to $2.06 in the prior year.  

 

 

Crude oil and condensate price realizations, before hedges, for the year averaged $34.60 per barrel, or $9.09 below WTI, compared to $14.93 below WTI in the prior year.   Hedging added $13.22 per barrel in 2016, compared to hedge gains of $37.00 per barrel in the prior year.

 

 

Operational Discussion

 

Range has updated its investor presentation with new economic calculations and type curves for the Marcellus and North Louisiana. Please see www.rangeresources.com under the Investors tab, “Company Presentations” area, for the presentation entitled, “Company Presentation – February 22, 2017”

 

The table below summarizes the 2016 activity and estimates for 2017 regarding the number of wells to sales, average lateral lengths, well costs, EURs by area and Range’s current net acreage for each area.  Consistent with the prior year, updated type curves reflect expected flow restrictions that result from infrastructure and facility design constraints.  As a result, early production from prolific wells is often constrained, resulting in flatter decline curves, and is reflected in the type curves.  As seen in the presentation slides, Marcellus wells turned in line (“TIL”) over the past three years continue to perform in line with type curve expectations.  These results demonstrate the quality of acreage as the Company continues development across its core position in southwest Pennsylvania.  Similar data is expected to be provided for North Louisiana drilling results going forward.

 

 

 

 

Wells TIL

in 2016

 

Average 2016 Lateral Length

 

Planned Wells TIL

in 2017

 

Expected Average 2017 Lateral Length

 

 

 

 

 

SW PA Super-Rich

 

14

 

5,100 ft.

 

35

 

8,500 ft.

SW PA Wet

 

30

 

6,400 ft.

 

56

 

8,300 ft.

SW PA Dry

 

46

 

6,900 ft.

 

25

 

8,850 ft.

NE PA Dry

 

19

 

5,700 ft.

 

2

 

6,400 ft.

Total Marcellus

 

109

 

 

 

118

 

 

Upper Red

 

 

 

 

34

 

7,500 ft.

Lower Red

 

 

 

 

13

 

7,500 ft.

Pink

 

 

 

 

6

 

 

Expansion area

 

3

 

 

 

3

 

 

Total N. LA

 

3

 

 

 

56

 

 

         Total

 

112

 

 

 

174

 

 

 

 

 

 

 

 

 

 

 

 

4