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

RANGE RESOURCES CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		001-12209		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 Operation

     On April 26, 2006 Range Resources Corporation issued a press release announcing its first quarter of 2006 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 April 26, 2006

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: April 27, 2006

EXHIBIT INDEX

Exhibit Number		Description
99.1		Press Release dated April 26, 2006

EXHIBIT 99.1

NEWS RELEASE

RANGE REPORTS RECORD PRODUCTION, REVENUES, CASH FLOW AND EARNINGS

FORT WORTH, TEXAS, APRIL 26, 2006...RANGE RESOURCES CORPORATION (NYSE: RRC) today announced first quarter results. Record highs were achieved in production, revenues, cash flow and net income. Results were driven by a 46% increase in realized prices and a 12% increase in production, which reached 257.1 Mmcfe per day. Revenues totaled $189.2 million, a 75% increase over the prior year. Cash flow from operations before changes in working capital, a non-GAAP measure, increased 76% to $127.6 million. Net income jumped 152% to $55.4 million, while diluted earnings per share rose 128% to $0.41. First quarter 2006 net income included $12.7 million of non-cash hedging gains and a $7.3 million non-cash stock compensation expense. Excluding these items, net income would have been $52.5 million or $0.41 per share ($0.39 fully diluted). (See accompanying table for calculation of these non-GAAP measures.)

Oil and gas revenues totaled $176 million, 64% higher than the prior year due to higher production and realized prices. Production totaled 257.1 Mmcfe per day, comprised of 188 Mmcf per day of gas (73%) and 11,519 barrels per day of oil and liquids. Wellhead prices, after adjustment for hedging, averaged $7.62 per mcfe, a $2.40 increase over the prior-year period. The average realized gas price rose 53% to $7.83 per mcf, as the average realized oil price rose 29% to $46.59 a barrel. Operating expenses per mcfe increased $0.12 to $0.84 per mcfe primarily due to higher oilfield service costs and offshore damage repairs. Production taxes per mcfe rose $0.14 due to higher prices. Exploration expense was $9.5 million due to higher seismic and dry hole costs. General and administrative expense per mcfe increased $0.09 due to higher personnel and legal costs. Interest expense increased $0.04 per mcfe as a result of higher interest rates. Depletion, depreciation and amortization per mcfe increased $0.04 to $1.49 per mcfe.

First quarter development and exploration expenditures totaled $89 million, funding the drilling of 206 (149 net) wells and 21 (20 net) recompletions. A 99% success rate was achieved with 205 (148 net) wells productive. By quarter end, 96 (66 net) of the wells had been placed on production, with the remainder in various stages of completion or waiting on pipeline connection. In addition, $10 million was expended on acreage purchases and $5 million on expanding gas gathering systems.

Drilling activity in the second quarter remains high with 27 rigs currently running. For the year, Range anticipates drilling 1,065 (789 net) wells and undertaking 63 (44 net) recompletions. During the first quarter, Range also continued to expand several of its key drilling areas and emerging plays.

The Appalachian division drilled 149 (106 net) wells in its tight sandstone and coal bed methane properties, achieving a 100% success rate. In the Nora and Haysi fields, our coal bed methane play in Virginia, production has increased to 23.2 Mmcfe per day, a 57% increase since the properties were acquired in late 2004. This acquisition, which covers 287,000 acres, is yielding long-lived, low-decline reserves at excellent finding costs of less than $1.00 per mcf. Drilling continues to ramp up, with 260 wells planned in 2006, versus 175 in 2005. Assuming 60-acre spacing, as many as 2,700 locations remain to be drilled in the area. Testing continues on our emerging CBM plays in the Widen field of West Virginia and four separate project areas in Pennsylvania. Assuming success, as many as 1,300 locations on currently held acreage could be generated by these emerging plays. In the Company’s shale play in Pennsylvania, three vertical wells have now been fraced and placed online. Although very early, average reserves per well are estimated in the 600 to 900 Mmcf range. Recently, the Company drilled, completed and began testing its first horizontal shale well in Pennsylvania. Nearby, a second horizontal

shale test has just reached total depth. By early fourth quarter, we expect to have initial production results from 10 vertical and three horizontal shale wells. To date, the Company has acquired 248,000 net acres in the play, and we are pursuing additional leasehold. In the Trenton Black River play, Range plans to spud its first test well in southwestern Pennsylvania during the second quarter with partner Fortuna Energy, Inc. a wholly owned subsidiary of Talisman Energy, Inc.

The Permian division drilled 32 wells during the first quarter. In New Mexico, a two-rig program drilled 11 wells on our Eunice properties, all of which were successful. Since initiating development operations in mid-2005, net production has more than doubled to 16 Mmcfe per day. At West Fuhrman Mascho in West Texas we plan to test five-acre downspacing, versus our current program of 10-acre downspacing, which could potentially double our recovery through a combination of infill drilling and waterflood activity. At the Conger field in West Texas, drilling is extending the limits of the field, and several recompletions to the Wolfcamp formation have proven successful. On our Barnett shale acreage in the Fort Worth basin, plans are to shoot a 3-D seismic program this summer and spud a well late third quarter. A 3-D seismic shoot of our Reeves/Culbertson County acreage is planned for the second quarter, with the initial test scheduled late this year or early next year. In East Texas, two wells have been completed in the Austin Chalk and are currently producing at a combined rate of 11 (3.6 net) Mmcfe per day. A third well is being drilled to the Chalk and is expected to be placed on production this quarter.

First quarter results for the Midcontinent division included the drilling of 18 (11 net) wells. A Watonga-Chickasha test encountered pay in the Springer, producing 1.7 (1.3 net) Mmcfe per day. The offset to the Company’s Hunton well in the Texas Panhandle tested 1.8 (1.1 net) Mmcfe per day. In southern Oklahoma, the Company’s 23,000 foot exploratory well has reached total depth and was logged. This well logged over 150 feet of pay in Mississippian and Pennsylvanian age intervals. Range owns a 16% working interest in the initial test well. We plan to spud a 20,500 foot operated well (72% working interest) in the play during the second quarter. To date, Range has accumulated 12,000 acres in the play with an average working interest of 37%.

The Gulf Coast division successfully drilled one shallow onshore well during the first quarter. The first Norphlet test (25% working interest) in Mississippi is expected to spud late in the second quarter. Offshore, one well at West Cameron 295 and one at High Island 73 were turned to sales within the last several days. A third well should be placed on production later in the second quarter. The three wells are anticipated to add approximately 5 Mmcf per day net.

Commenting on the announcement, John Pinkerton, Range’s President and CEO, said, “We are pleased to again announce record results and our 13^th consecutive quarter of production growth. The depth of our drilling inventory and the quality of our technical and operating teams drove production 12% higher than last year. With the rolling off of our lower price hedges at year-end 2005, realized prices jumped 46% in the first quarter. Higher production and higher realized prices were the drivers for achieving record financial results. Our first quarter results provide a solid picture of the operating and financial potential of Range. These results represent the start to what we anticipate will be an outstanding year. Looking forward, given the quality of our technical team, multi-year drilling inventory, emerging plays and large acreage position, we are extremely well positioned to continue to build shareholder value for many years to come.”

The Company will host a conference call on Thursday, April 27 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 first quarter financial results conference call. A replay of the call will be available through May 4 at 800-642-1687. The conference ID for the replay is 8283673.

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 first quarter 2006 include ineffective hedging gains of $1.4 million, $11.3 million of gains related to mark-to-market on derivatives, a non-cash stock compensation expense of $7.3 million, a loss of $195,000 on sale of assets and amortization expense of $168,000 on ineffective interest hedges. Excluding such items, income before income taxes would have been $83.7 million, a 115% increase from the prior year. Adjusting for the after-tax effect of these items the Company’s earnings would have been $52.5 million or $0.41 per share ($0.39 fully diluted). If similar items were excluded, 2005 earnings would have been $24.4 million or $0.20 per share ($0.20 per diluted share). In 2005, results were impacted by a net $308,000 ineffective hedging gain on commodities and interest and a $4.1 million stock 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 significant potential, future earnings, cash flow, capital expenditures and production growth 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.

Contacts:				Rodney Waller, Senior Vice President		2006-10
				David Amend, IR Manager
		Karen Giles, Sr. IR Specialist
				(817) 870-2601
				www.rangeresources.com

RANGE RESOURCES CORPORATION

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

		Three Months Ended March 31,
		2006				2005
Revenues
Oil and gas sales		$	176,338			$	107,415
Transportation and gathering			142				528
Mark-to-market derivative gain			11,281				—
Ineffective hedging gain (loss) (a)			1,420				125
Gain (loss) on sale of properties (a)			(195	)			(9	)
Other			207				(99	)
			189,193				107,960				75	%
Expenses
Direct operating			19,377				14,808
Production and ad valorem taxes			9,727				5,755
Exploration			9,518				3,271
General and administrative			9,399				6,603
Non-cash stock compensation (b)			7,319				4,067
Interest			10,551				8,584
Depletion, depreciation and amortization			34,567				29,762
			100,458				72,850				38	%
Income before income taxes			88,735				35,110				153	%
Income taxes
Current			578				—
Deferred			32,482				13,107
			33,060				13,107
Net income before cumulative effect of changes in accounting principle		$	55,675			$	22,003				153	%
Cumulative effect of changes in accounting principle			(279	)			—
Net income		$	55,396			$	22,003				152	%
Net income available to common stockholders		$	0.43			$	0.18
Cumulative effect of changes in accounting principle			—				—
Net income per common share		$	0.43			$	0.18				139	%
Net income per common share — diluted		$	0.41			$	0.18
Cumulative effect of changes in accounting principle			—				—
Net income per common share — assuming dilution		$	0.41			$	0.18				128	%
Weighted average shares outstanding, as reported
Basic			129,092				119,868				8	%
Diluted			134,549				124,601				8	%

(a)		Included in Other revenues in 10-Q.
(b)		Includes non-cash stock compensation mark-to-market adjustments due to increases in Company’s common stock of $4.5 million and $4.1 million for the three months ended March 31, 2006 and 2005; and non-cash expense for equity compensation upon the adoption of FASB Statement No. 123(R) of $2.8 million for the three months ended March 31, 2006.

RANGE RESOURCES CORPORATION

OPERATING HIGHLIGHTS
 (Unaudited)

		Three Months Ended March 31,
		2006				2005
Average Daily Production
Oil (bbl)			8,552				7,901				8	%
Natural gas liquids (bbl)			2,967				2,766				7	%
Gas (mcf)			188,001				164,825				14	%
Equivalents (mcfe) (a)			257,118				228,827				12	%
Prices Realized
Oil (bbl)		$	46.59			$	36.23				29	%
Natural gas liquids (bbl)		$	29.77			$	22.45				33	%
Gas (mcf)		$	7.83			$	5.13				53	%
Equivalents (mcfe) (a)		$	7.62			$	5.22				46	%
Operating Costs per mcfe
Field expenses		$	0.79			$	0.67				18	%
Workovers		$	0.05				0.05				0	%
Total Operating Costs		$	0.84			$	0.72				17	%

(a)		Oil and natural gas liquids are converted to gas equivalents on a basis of six mcf per barrel.

BALANCE SHEETS
(In thousands)

		March 31,				December 31,
		2006				2005
		(unaudited)
Assets
Current assets		$	108,312			$	146,300
Current deferred tax asset			36,969				61,677
Oil and gas properties			1,804,438				1,741,182
Transportation and field assets			40,864				39,244
Other			44,370				30,582
		$	2,034,953			$	2,018,985
Liabilities and Stockholders’ Equity
Current liabilities		$	121,209			$	158,493
Current asset retirement obligation			3,168				3,166
Current unrealized derivative loss			84,007				160,101
Bank debt			246,100				269,200
Subordinated notes			347,025				346,948
Total long-term debt			593,125				616,148
Deferred taxes			213,071				174,817
Unrealized hedging loss			50,927				70,948
Deferred compensation liability			88,245				73,492
Long-term asset retirement obligation			66,558				64,897
Common stock and retained earnings			927,417				860,618
Stock in deferred compensation plan and treasury			(19,283	)			(16,568	)
Other comprehensive loss			(93,491	)			(147,127	)
Total stockholders’ equity			814,643				696,923
		$	2,034,953			$	2,018,985

RANGE RESOURCES CORPORATION

CASH FLOWS FROM OPERATIONS
 (Unaudited, in thousands)

		Three Months Ended
		March 31,
		2006				2005
Net income		$	55,396			$	22,003
Adjustments to reconcile net income to net cash provided by operations:
Cumulative effect of change in accounting principle			279				—
Deferred income tax expense			32,482				13,107
Depletion, depreciation and amortization			34,567				29,762
Exploration expense			2,718				483
Mark-to-market derivative (gain)			(11,281	)			—
Unrealized hedging (gain) loss			(1,252	)			(308	)
Adjustment to IPF valuation allowance and allowance for bad debts			—				225
Amortization of deferred issuance costs			406				437
Deferred compensation adjustment			8,056				4,469
(Gain) loss on sale of assets and other			418				8
Changes in working capital:
Accounts receivable			34,369				17,728
Inventory and other			(1,630	)			(517	)
Accounts payable			(15,270	)			(13,668	)
Accrued liabilities			(13,749	)			(10,208	)
Net changes in working capital			3,720				(6,665	)
Net cash provided by operations		$	125,509			$	63,521

RECONCILIATION OF CASH FLOWS
(In thousands)

		Three Months Ended
		March 31,
		2006				2005
Net cash provided by operations		$	125,509			$	63,521
Net change in working capital			(3,720	)			6,665
Exploration expense			6,800				2,788
Other			(960	)			(401	)
Cash flow from operations before changes in working capital, non-GAAP measure		$	127,629			$	72,573

ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING
(Unaudited, in thousands)

		Three Months Ended
		March 31,
		2006				2005
Basic:
Weighted average shares outstanding			130,742				122,030
Stock held by deferred compensation plan			(1,650	)			(2,162	)
			129,092				119,868
Dilutive:
Weighted average shares outstanding			130,742				122,030
Dilutive stock options under treasury method			3,807				2,571
			134,549				124,601

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
		March 31,
		2006				2005
As reported		$	88,735			$	35,110				153	%
Adjustment for certain non-cash items
Loss on sale of properties			195				9
Mark-to-market on derivative (gain)			(11,281	)			—
Ineffective commodity hedging (gain) loss			(1,420	)			(125	)
Amortization of ineffective interest hedges (gain) loss			168				(183	)
Deferred compensation adjustment			7,319				4,067
As adjusted			83,716				38,878				115	%
Income taxes, adjusted
Current			578				—
Deferred			30,645				14,514
Net income excluding certain items		$	52,493			$	24,364				115	%
Non-GAAP earnings per share
Basic		$	0.41			$	0.20				105	%
Diluted		$	0.39			$	0.20				95	%

HEDGING POSITION
As of April 26, 2006
(Unaudited)

				Gas								Oil
				Volume				Average				Volume				Average
				Hedged				Hedge				Hedged				Hedge
				(MMBtu/d)				Prices				(Bbl/d)				Prices
2Q 2006		Swaps			10,797			$	6.19				400			$	35.00
2Q 2006		Collars			113,390			$	6.09 - $8.19				6,865			$	39.83 - $49.05
3Q 2006		Swaps			10,761			$	6.20				400			$	35.00
3Q 2006		Collars			113,283			$	6.09 - $8.19				6,863			$	39.83 - $49.05
4Q 2006		Swaps			10,761			$	6.48				400			$	35.00
4Q 2006		Collars			113,283			$	6.36 - $8.67				6,863			$	39.83 - $49.05
Calendar 2007		Swaps			7,500			$	6.86				—				—
Calendar 2007		Collars			98,500			$	7.13 - $9.99				5,800			$	52.90 - $64.58
Calendar 2008		Collars			55,000			$	7.93 - $11.39				4,000			$	56.89 - $74.78

Note: Details as to the Company’s hedges are posted on its website and are updated periodically.