UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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 28, 2005 (July 27, 2005)

(Exact name of registrant as specified in its charter)

Delaware		0-9592		34-1312571
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

777 Main Street, Suite 800 Ft. Worth, Texas		76102
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (817) 870-2601

(Former name or former address, if changed since last report): Not applicable

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2. below):

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

ITEM 2.02 Results of Operations and Financial Condition

     On July 27, 2005, Range Resources Corporation issued a press release announcing its second quarter results. A copy of this press release is being furnished as an exhibit to this report on Form 8-K.

ITEM 9.01 Financial Statements and Exhibits

     (c) Exhibits:

          99.1 Press Release dated July 27, 2005

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.

Date: July 27, 2005

EXHIBIT INDEX

Exhibit Number		Description
99.1		Press Release dated July 27, 2005

EXHIBIT 99.1

NEWS RELEASE

FORT WORTH, TEXAS, JULY 27, 2005...RANGE RESOURCES CORPORATION (NYSE: RRC) today announced second quarter results. Record highs were achieved in production, revenues and cash flow. Production reached 232.8 Mmcfe per day, a 28% increase over the prior year period. Revenues totaled $119.7 million, a 74% increase over the prior year. Cash flow from operations before changes in working capital, a non-GAAP measure, increased 83% to $80.1 million. Net income to common jumped 191% to $21.7 million, while diluted earnings per share rose 117% to $0.26. Excluding a $5.3 million non-cash deferred compensation expense, second quarter net income would have been $25.0 million or $0.31 per share ($0.30 fully diluted). (See accompanying table for calculation of these non-GAAP measures.)

Oil and gas revenues totaled $118.7 million, 76% higher than the prior year due to a 28% increase in production coupled with a 37% increase in realized prices. Production totaled 232.8 Mmcfe per day, comprised of 168.8 Mmcf of gas (73%) and 10,668 barrels of oil and liquids. Wellhead prices, after adjustment for hedging, averaged $5.60 per mcfe, a $1.51 increase over the prior-year period. The average gas price rose 39% to $5.63 per mcf, as the average oil price rose 33% to $35.94 a barrel. Operating expenses per mcfe increased to $0.82 per mcfe due to higher than normal workover expense primarily due to three large workovers in the Gulf of Mexico. Exploration expense rose due to $5.7 million of seismic expenditures. General and administrative expense decreased two cents per mcfe. Interest expense increased as a result of higher debt balances due to acquisitions. Depletion, depreciation and amortization per mcfe increased eight cents to $1.44 per mcfe.

Second quarter development and exploration expenditures totaled $80.1 million, funding the drilling of 209 (159 net) wells and 31 (27 net) recompletions. All but five of the wells proved productive for a 97% success rate. By quarter end, 118 (82 net) of the wells had been placed on production, with the remainder in various stages of completion or waiting on pipeline connection. The expenditures included $6.3 million of leasehold additions and $5.7 million of seismic purchases. In addition, $127.0 million was spent during the quarter on property acquisitions.

Drilling activity in the third quarter remains high with 27 rigs currently running. For the year, Range anticipates drilling 820 (609 net) wells and undertaking 75 (53 net) recompletions. During the quarter, Range also continued to expand several of its key drilling areas and emerging plays. In Appalachia, the first of three deep horizontal Trenton Black River wells in Bradford County, Pennsylvania was initiated. In the Appalachian shale play, a second test well offsetting our initial test has spud, and two additional vertical wells and a horizontal well are scheduled before year-end. Range is also expanding its leasehold position in both the Appalachian shale play as well as its Texas shale play. With regard to the coal bed methane plays, drilling at the Nora Field is continuing to drive up production while step-out drilling in the Haysi Field has been encouraging. The first five CBM wells at Haysi are on production with initial results indicating high-quality commercial coals comparable to those found in the Nora Field. As a result, a follow on ten-well program has been initiated at Haysi. Also, at the 77,000 acre Widen Field in West Virginia, Range has initiated coring operations to determine gas content of the coals that exist across the field. In the Midcontinent, production is up 18% for the first half of the year due to increased drilling activity primarily on properties acquired last year. A deep Mountain Front exploratory test in the Anadarko Basin has spud and is expected to reach total depth in late 2005. In the Permian Basin, drilling and refracs continue to increase production. At the West Furhman Mascho Field in Andrews County, Texas production is up 25% since year-end. On our newly acquired properties in southeastern New Mexico, plans are to drill 41 wells over the next 12 months. A two-rig program is scheduled to

commence in August. In the Gulf Coast region, the Monceaux #1, our fourth consecutive successful well in our onshore South Louisiana program, came online at an initial rate of 6.4 (2.2 net) Mmcfe per day. Offshore, Range has a 15% working interest in the West Cameron 295 #2 well which recently reached total depth and encountered 150 feet of pay in two intervals. First production is anticipated later this year.

Commenting, John H. Pinkerton, the Company’s President, said, “Range made great progress in the first half of 2005. Our 800+ well drilling program is on schedule and the emerging plays are making solid headway. Our recent acquisition of Permian Basin properties in southeast New Mexico added production and reserves at an attractive cost and expands our inventory of low-risk drilling opportunities. Importantly, our realized oil and gas prices are increasing rapidly as lower price swaps continue to roll off. Higher realized prices, combined with the success of our drilling and acquisition programs is driving record levels of production, revenue, cash flow and earnings. We anticipate this trend to continue throughout the remainder of 2005. Looking further ahead, driven by our large, multi-year drilling inventory and 2.6 million acre leasehold position, Range is well positioned to continue to profitably grow production and reserves for many years to come.”

The Company will host a conference call on Thursday, July 28 at 2:00 p.m. ET to review these results. To participate in the call, please dial 877-207-5526 and ask for the Range Resources second quarter financial results conference call. A replay of the call will be available through August 4 at 800-642-1687. The conference ID for the replay is 7930809.

A simultaneous webcast of the call may be accessed over the Internet at www.rangeresources.com or www.vcall.com. To listen, please go to either website in time to register and install any necessary software. The webcast will be archived for replay on the Company’s website for 15 days.

Non-GAAP Financial Measures:

Earnings for second quarter 2005 include a non-cash deferred compensation expense of $5.3 million and net ineffective hedging losses of $14,000. Excluding such items, income before income taxes would have been $39.9 million, a 148% increase from the prior year. Adjusting for the after-tax effect of these items, the Company’s earnings would have been $25.0 million or $0.31 per share ($0.30 fully diluted). If similar items were excluded, 2004 earnings would have been $10.1 million or $0.16 per share ($0.16 per diluted share). In 2004, results were impacted by $1.3 million in ineffective hedging gains and a $4.3 million deferred compensation expense. (See reconciliation of non-GAAP earnings in the accompanying table.) The Company believes results excluding these items are more comparable to estimates provided by security analysts and, therefore, are useful in evaluating operational trends of the Company and its performance relative to other oil and gas producing companies.

Cash flow from operations before changes in working capital as defined in this release represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items. Cash flow from operations before changes in working capital is widely accepted by the investment community as a financial indicator of an oil and gas company’s ability to generate cash to internally fund exploration and development activities and to service debt. Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity. A table is included which reconciles net cash provided by operations to Cash flow from operations before changes in working capital as used in this release. On its website, the Company provides additional comparative information on prior periods.

RANGE RESOURCES CORPORATION (NYSE: RRC) is an independent oil and gas company operating in the Southwestern, Appalachian and Gulf Coast regions of the United States.

Except for historical information, statements made in this release, including those relating to attractive acquisition costs, future earnings, cash flow, capital expenditures and profitably growing production 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 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.

						2005-23
Contacts:				Rodney Waller, Senior Vice President
		Karen Giles
				(817) 870-2601
				www.rangeresources.com

RANGE RESOURCES CORPORATION

STATEMENTS OF INCOME
 (Unaudited, in thousands, except per share data)

		Three Months Ended June 30,												Six Months Ended June 30,
		2005				2004								2005				2004
Revenues
Oil and gas sales		$	118,723			$	67,553							$	226,138			$	132,921
Transportation and gathering			631				344								1,159				811
Ineffective hedging gain (loss) (a)			123				971								248				(583	)
Other (b)			207				(172	)							99				(920	)
			119,684				68,696				74	%			227,644				132,229				72	%
Expenses
Direct operating			17,419				10,406								32,227				20,401
Production and ad valorem taxes			7,034				4,801								12,789				9,051
Exploration			9,124				4,200								12,395				7,767
General and administrative			6,241				5,052								12,844				9,488
Non-cash deferred compensation adjustment (c)			5,276				4,303								9,343				8,688
Interest			9,547				4,422								18,131				8,567
Depletion, depreciation and amortization			30,436				22,444								60,198				44,692
			85,077				55,628				53	%			157,927				108,654				45	%
Income before income taxes			34,607				13,068				165	%			69,717				23,575				196	%
Income taxes
Current			—				44								—				44
Deferred			12,946				4,835								26,053				8,722
			12,946				4,879								26,053				8,766
Net income		$	21,661			$	8,189				165	%		$	43,664			$	14,809				195	%
Preferred dividends			—				(737	)							—				(1,475	)
Net income available to common shareholders		$	21,661			$	7,452				191	%		$	43,664			$	13,334				227	%
Net income per common share — basic		$	0.27			$	0.13				108	%		$	0.54			$	0.24				125	%
Net income per common share — diluted		$	0.26			$	0.12				117	%		$	0.52			$	0.23				126	%
Weighted average shares outstanding, as reported
Basic			81,117				57,315				42	%			80,518				56,145				43	%
Diluted			84,173				60,245				40	%			83,571				58,948				42	%

RANGE RESOURCES CORPORATION

OPERATING HIGHLIGHTS
 (unaudited)

		Three Months Ended June 30,												Six Months Ended June 30,
		2005				2004								2005				2004
Average Daily Production Oil (bbl)			7,950				6,440				23	%			7,926				6,224				27	%
Natural gas liquids (bbl)			2,718				2,619				4	%			2,742				2,579				6	%
Gas (mcf)			168,834				127,308				33	%			166,840				126,712				32	%
Equivalents (mcfe) (a)			232,842				181,665				28	%			230,846				179,534				29	%
Prices Realized
Oil (bbl)		$	35.94			$	27.11				33	%		$	36.08			$	25.79				40	%
Natural gas liquids (bbl)		$	25.33			$	19.71				29	%		$	23.88			$	19.36				23	%
Gas (mcf)		$	5.63			$	4.05				39	%		$	5.38			$	4.10				31	%
Equivalents (mcfe) (a)		$	5.60			$	4.09				37	%		$	5.41			$	4.07				33	%
Operating Costs per mcfe
Field expenses		$	0.69			$	0.61				13	%		$	0.68			$	0.59				13	%
Workovers		$	0.13			$	0.02				550	%		$	0.09			$	0.03				200	%
Total Operating Costs		$	0.82			$	0.63				30	%		$	0.77			$	0.62				22	%

BALANCE SHEETS
(In thousands)

		June 30,				December 31,
		2005				2004
		(Unaudited)
Assets
Current assets		$	86,347			$	110,026
Current deferred tax asset			36,249				26,310
Oil and gas properties			1,617,790				1,402,359
Transportation and field assets			37,872				37,282
Other			24,420				19,429
		$	1,802,678			$	1,595,406
Liabilities and Stockholders’ Equity
Current liabilities		$	101,820			$	109,335
Current asset retirement obligation			5,706				6,822
Current unrealized hedging loss			92,831				61,005
Bank debt			265,700				423,900
Subordinated notes			346,799				196,656
Total long-term debt			612,499				620,556
Deferred taxes			151,050				117,713
Unrealized hedging loss			40,528				10,926
Deferred compensation liability			49,535				38,799
Long-term asset retirement obligation			66,093				63,910
Common stock and retained deficit			777,154				619,084
Stock in deferred compensation plan and treasury			(12,480	)			(9,443	)
Other comprehensive loss			(82,058	)			(43,301	)
Total stockholders’ equity			682,616				566,340
		$	1,802,678			$	1,595,406

CASH FLOWS FROM OPERATIONS
 (Unaudited, in thousands)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2005				2004				2005				2004
Net income		$	21,661			$	8,189			$	43,664			$	14,809
Adjustments to reconcile Net income to net cash provided by operations:
Deferred income tax expense			12,946				4,835				26,053				8,722
Depletion, depreciation and amortization			30,436				22,444				60,198				44,692
Exploration expense			1,330				2,210				1,813				3,429
Unrealized hedging (gain) loss			15				(1,291	)			(293	)			(536	)
Adjustment to IPF valuation allowance and allowance for bad debts			225				757				450				1,286
Amortization of deferred issuance costs			416				268				853				472
Deferred compensation adjustment			5,491				4,450				9,960				9,008
(Gain) loss on sale of assets and other			(4	)			(302	)			4				(109	)
Changes in working capital:
Accounts receivable			328				(7,420	)			18,056				(4,456	)
Inventory and other			(7,557	)			1,405				(8,074	)			(5,039	)
Accounts payable			(1,498	)			8,902				(15,166	)			6,660
Accrued liabilities			14,276				4,681				5,889				2,412
Net changes in working capital			5,549				7,568				705				(423	)
Net cash provided by operations		$	78,065			$	49,128			$	143,407			$	81,350

RECONCILIATION OF CASH FLOWS
 (In thousands)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2005				2004				2005				2004
Net cash provided by operations		$	78,065			$	49,128			$	143,407			$	81,350
Net change in working capital			(5,549	)			(7,568	)			(705	)			423
Exploration expense			7,794				1,990				10,582				4,338
Other			(237	)			178				(638	)			(187	)
Cash flow from operations before changes in working capital, non-GAAP measure		$	80,073			$	43,728			$	152,646			$	85,924

ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING

 (Unaudited, in thousands)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2005				2004				2005				2004
Basic:
Weighted average shares outstanding			82,492				58,988				81,926				57,817
Stock held by deferred compensation plan			(1,375	)			(1,673	)			(1,408	)			(1,672	)
			81,117				57,315				80,518				56,145
Dilutive:
Weighted average shares outstanding			82,492				58,988				81,926				57,817
Dilutive stock options under treasury method			1,681				1,257				1,645				1,131
			84,173				60,245				83,571				58,948

RANGE RESOURCES CORPORATION

RECONCILATION OF NET INCOME BEFORE INCOME TAXES
AS REPORTED TO NET INCOME BEFORE INCOME TAXES
EXCLUDING CERTAIN NON-CASH ITEMS
 (Unaudited, in thousands, except per share data)

		Three Months Ended												Six Months Ended
		June 30,												June 30,
		2005				2004								2005				2004
Income before income taxes as reported		$	34,607			$	13,068				165	%		$	69,717			$	23,575				196	%
Adjustment for certain non-cash items
(Gain) loss on sale of properties			(25	)			(11	)							(16	)			(10	)
(Gain) loss on retirement of securities			—				34								—				34
Ineffective commodity hedging (gain) loss			(123	)			(971	)							(248	)			583
Amortization of ineffective interest hedges (gain) loss			137				(320	)							(46	)			(1,119	)
Deferred compensation adjustment			5,276				4,303								9,343				8,688
Income before income taxes as adjusted			39,872				16,103				148	%			78,750				31,751				148	%
Income taxes, adjusted
Current			—				44								—				44
Deferred			14,916				5,958								29,430				11,747
Net income excluding certain items		$	24,956			$	10,101				147	%		$	49,320			$	19,960				147	%
Non-GAAP earnings per share
Basic .		$	0.31			$	0.16				94	%		$	0.61			$	0.33				85	%
Diluted		$	0.30			$	0.16				88	%		$	0.59			$	0.31				90	%

HEDGING POSITION
 As of July 27, 2005 (unaudited)

						Gas								Oil								NGLs
						Volume				Average				Volume				Average				Volume				Average
						Hedged				Hedged				Hedged				Hedged				Hedged				Hedged
						(MMBtu/d)				Prices				(Bbl/d)				Prices				(Bbl/d)				Prices
3Q – 4Q 2005		Swaps					44,793			$	4.17				1,144			$	26.83				652			$	19.20
3Q – 4Q 2005		Collars					69,397			$	5.22 - $6.99				4,414			$	29.84 - $37.05				—				—
Calendar 2006		Swaps					10,788			$	6.43				400			$	35.00				—				—
Calendar 2006		Collars					87,363			$	5.99 - $8.10				6,864			$	39.83 - $49.05				—				—
Calendar 2007		Swaps					7,500			$	6.86				—				—				—				—
Calendar 2007		Collars					42,500			$	6.37 - $8.59				3,200			$	48.71 - $58.44				—				—