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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported):
July 11, 2003
RANGE RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 0-9592 34-1312571
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(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) Identification No.)
777 MAIN STREET
FT. WORTH, TEXAS 76102
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(Address of principal executive (Zip Code)
offices)
Registrant's telephone number, including area code: (817) 870-2601
(Former name or former address, if changed since last report): Not applicable
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ITEM 9. REGULATION FD DISCLOSURE
On July 11, 2003, Range Resources Corporation issued a press release
announcing its second quarter of 2003 production volumes, debt status, hedging
and other operational information. A copy of this press release is attached
hereto as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits:
99.1 Press Release dated July 11, 2003
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
RANGE RESOURCES CORPORATION
By: /s/ Rodney L. Waller
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Rodney L. Waller
Senior Vice President
Date: July 11, 2003
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EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
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99.1 Press Release dated July 11, 2003
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EXHIBIT 99.1
NEWS RELEASE
RANGE PROVIDES UPDATE
FORT WORTH, TEXAS, JULY 11, 2003...RANGE RESOURCES CORPORATION (NYSE: RRC) today
provided updated information as to its debt status, hedging position, production
and operations. During the second quarter, debt was reduced by $16.7 million,
declining to $358.1 million at June 30. The debt reduction was the result of
applying excess cash. At quarter-end, availability under the Company's parent
credit facility was approximately $60 million.
During the quarter, the Company added modestly to its oil and gas hedging
position. New hedges added during the quarter included a combination of swaps
and collars. Historically, the Company's hedging program was based on fixed
price swaps. In the second quarter, the Company modified its hedging program to
include collars whereby the Company will be assured a minimum floor price and
will benefit from price increases up to a predetermined ceiling price. A summary
of the Company's current hedge position is provided in the table below.
Based on drilling results through June 30, the Company is on track to meet its
production and reserve growth targets for 2003. As previously disclosed, the
Company's second quarter production target was 155 to 156 Mmcfe per day. Based
on preliminary information, the Company currently expects second quarter
production to exceed 158 Mmcfe per day, compared to 154 Mmcfe per day in first
quarter 2003 and 151 Mmcfe per day in second quarter 2002.
Increasing production in 2003 is attributable to the Company's drilling program.
In the second quarter, approximately $35 million of its $105 million capital
budget was expended, funding the drilling of 103 (59.4 net) wells. Only 3 (2.0
net) of the wells proved unproductive. The Company will record dry hole expense
of approximately $1.1 million for the quarter. In the first half of 2003, 156
(91.5 net) wells were successfully drilled. By June 30, 116 (71.8 net) of the
wells had been placed on production. The remaining 40 (19.7 net) wells were in
various stages of completion or waiting on pipeline connection. Drilling
activity in the third quarter is expected to remain high as the Company
currently has 11 rigs running.
Wells materially impacting second quarter production include the Faulk #1, a
discovery well located in South Louisiana, which is currently producing 16.1
(5.1 net) Mmcfe per day. In the Gulf of Mexico, West Cameron 45 #20 was returned
to production in June after undergoing mechanical repairs and is currently
producing 20.7 (4.1 net) Mmcfe per day, while the Ship Shoal 28 #40 discovery
continues to produce 15.5 (3.0 net) Mmcfe per day. In the Texas Panhandle and
western Oklahoma, five new wells are currently producing 8.9 (5.5 net) Mmcfe per
day.
Commenting on the announcement, John Pinkerton, Range's President, said, "In the
first half of 2003, we achieved our two primary goals of increasing production
while continuing to reduce debt with excess cash flow. The success of our
drilling program included the exploitation of our development inventory as well
as several exploratory discoveries. For the second half of 2003, we are focused
on building upon the progress made in the first half by executing our drilling
program, continuing to expand our prospect inventory and evaluating
complementary acquisitions."
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Debt and Convertible Securities As of June 30, 2003
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(000s)
Parent Credit Facility $110,600
Great Lakes Credit Facility 73,500
8.75% Senior Subordinated Notes 68,781
6% Convertible Subordinated Debentures 20,740
5.75% Trust Preferred 84,440
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$358,061
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HEDGING POSITION
Gas Oil
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Volume Average Volume Average
Hedged Hedge Hedged Hedged
(MMBtu/d) Prices (Bbl/d) Prices
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3rd Qtr 2003 Swaps 94,652 $3.90 4,359 $25.63
4th Qtr 2003 Swaps 95,929 $4.06 4,033 $24.97
Calendar 2004 Swaps 89,440 $4.05 2,276 $24.86
Calendar 2004 Collars -- -- 627 $24.00-$26.66
Calendar 2005 Swaps 48,945 $4.19 250 $24.10
Calendar 2005 Collars 1,644 $4.00-$6.75 -- --
Calendar 2006 Swaps 1,644 $4.80 -- --
RANGE RESOURCES CORPORATION (NYSE: RRC) is an independent oil and gas company
operating in the Permian, Midcontinent, Gulf Coast and Appalachian regions of
the United States.
Except for historical information, statements made in this release, including
those relating to anticipated debt reduction, capital expenditures, production
rates, well costs and the number of wells to be drilled are forward-looking
statements as defined by the Securities and Exchange Commission. These
statements are based on assumptions and estimates that management believes are
reasonable based on currently available information; however, management's
assumptions and the Company'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 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. The Company undertakes no
obligation to publicly update or revise any forward-looking statements. Further
information on risks and uncertainties is available in the Company's filings
with the Securities and Exchange Commission, which are incorporated by
reference.
Contact: Rodney Waller, Senior Vice President
Karen Giles
(817) 870-2601
www.rangeresources.com
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2003-13
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