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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):
December 15, 2005 (December 14, 2005)
RANGE RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware
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001-12209
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34-1312571 |
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(State or other jurisdiction of
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(Commission
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(IRS Employer |
incorporation)
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File Number)
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Identification No.) |
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777 Main Street, Suite 800 |
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Ft. Worth, Texas
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76102 |
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(Address of principal executive offices)
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(Zip Code) |
Registrants 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):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 8.01 Other Events
On December 14, 2005 Range Resources Corporation issued a press release announcing that its
2006 capital budget. 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:
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99.1 |
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Press Release dated December 14, 2005 |
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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.
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RANGE RESOURCES CORPORATION
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By: |
/s/ ROGER S. MANNY
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Roger S. Manny |
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Chief Financial Officer |
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Date: December 15, 2005
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EXHIBIT INDEX
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Exhibit Number |
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Description |
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99.1
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Press Release dated December 14, 2005 |
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exv99w1
EXHIBIT 99.1
NEWS RELEASE
RANGE ANNOUNCES $429 MILLION CAPITAL BUDGET FOR 2006
FORT WORTH, TEXAS, DECEMBER 14, 2005...RANGE RESOURCES CORPORATION (NYSE: RRC) announced today
that a $429 million capital budget has been set for 2006. The budget, which excludes acquisitions,
represents a 32% increase over expected 2005 expenditures. Expenditures for 2005 are estimated to
total $324 million, excluding acquisitions. The 2006 budget includes $358 million for drilling and
recompletions, $38 million for land, $18 million for seismic and $15 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 projects. 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, 2006 capital spending is
projected to be funded with approximately 75% of internal cash flow. Excess cash flow may be used
to fund acquisitions, increase capital expenditures, reduce debt or repurchase stock.
In 2006, the Company expects to drill 1,096 gross (802 net) wells and to undertake 63 gross (44
net) recompletions. Approximately 46% of the budget is attributable to each of the Appalachian
region and the Southwest region, which includes the Permian Basin, the Midcontinent and East Texas.
The remaining 8% is attributable to the Gulf Coast region.
Commenting, John H. Pinkerton, Ranges President, said, 2005 has proved extremely rewarding for
Range and its shareholders. While year-end engineering is not yet complete, the 2005 drilling
program is clearly successful. The increase in the 2006 capital budget reflects our large,
multi-year drilling inventory including opportunities generated from the success we have had so far
this year. We have invested in a larger organization over the past several years to prudently
manage the expanding capital programs being generated from our Companys larger asset base and
growing drilling inventory. We expect the 2006 drilling program will generate exceptional rates of
return, further increasing our reserves and production. For 2006, we are targeting another year of
double digit production growth.
RANGE RESOURCES CORPORATION 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 expected capital expenditures, acquisitions, production growth, reserve additions and rates of
return 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, managements assumptions and the Companys 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 Companys filings with the Securities and Exchange Commission, which are
incorporated by reference.
2005-33
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Contact:
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Rodney Waller, Senior Vice President |
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Karen Giles |
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(817) 870-2601 |
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www.rangeresources.com |