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.)

100 Throckmorton, Suite 1200 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 23, 2008 Range Resources Corporation issued a press release announcing its second quarter 2008 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 23, 2008

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 24, 2008

EXHIBIT INDEX

Exhibit Number		Description
99.1		Press Release dated July 23, 2008

EXHIBIT 99.1

NEWS RELEASE

RANGE ANNOUNCES SECOND QUARTER RESULTS

FORT WORTH, TEXAS, JULY 23, 2008...RANGE RESOURCES CORPORATION (NYSE: RRC) today announced second quarter results. Range reported its 22^nd consecutive quarter of sequential production growth with 381 Mmcfe per day reported for the second quarter. Production increased 22% versus the prior year and 3% over first quarter results. The increase was driven by exceptional drilling results across the Company’s core properties, which more than offset significant gas curtailments. Oil and gas sales, including cash-settled derivatives, a non-GAAP measure, reached $313 million, a 42% increase over the prior year. Cash flow from operations before changes in working capital, a non-GAAP measure, rose 41% to $221 million. The reported net loss of $35 million included non-cash charges of $164 million for the mark-to-market accounting on open commodity derivatives, $16 million of non-cash stock expense and a $1 million loss on property sales. Adjusting for these items, net income comparable to analyst estimates was $75 million, or diluted earnings per share of $0.48, 17% greater than the prior year (see the accompanying tables reconciling these non-GAAP measures). The Company’s cash flow for the quarter equaled the average of analyst estimates. The adjusted earnings per share of $0.48 were less than the $0.54 average analyst estimate due to the reduction in leasehold value from expiring acreage.

Commenting on the announcement, John Pinkerton, Range’s President and CEO, said, “Despite pipeline curtailments that averaged 18.5 Mmcfe per day for the quarter in the Barnett Shale play, our operations teams did a tremendous job driving up production to achieve our 22^nd consecutive quarter of sequential production growth. We continue to be on track to achieve our 19% production growth target for the year. Our diversified portfolio of quality drilling projects and our highly focused operating teams are the keys to our success. Importantly, we continue to make solid progress with our emerging plays, building infrastructure, drilling successful delineation wells and increasing our acreage positions. Looking forward, we are extremely well positioned, as our multi-year drilling program is generating excellent returns and our emerging plays provide the opportunity for sustained double digit growth for many years to come.”

For the quarter, production totaled 381 Mmcfe per day, comprised of 304 Mmcf per day of gas (80%) and 12,795 barrels per day of oil and liquids. Wellhead prices, including cash-settled derivatives, averaged $9.03 per mcfe, a 17% increase over the prior-year period. The average gas price was $8.46 per mcf, a 16% increase, and the average oil price rose 21% to $72.34 a barrel. If the mark-to-market of the Company’s open commodity derivatives were valued as of the close of the market today, the $164 million mark-to-market loss would be completely eliminated.

Direct operating expenses for the quarter were $1.05 per mcfe, $0.20 per mcfe higher than the prior-year quarter and $0.09 greater than the first quarter of 2008. Second quarter direct operating costs were $0.09 higher due to workovers and other activities focused on overcoming the shut-in production. Exploration expense in the second quarter totaled $18 million, up from $11 million in the prior-year quarter due primarily to higher seismic expenditures. General and administrative expenses were $0.49 per mcfe, an increase of $0.05 from the prior-year quarter and $0.11 higher than the first quarter of 2008 due to higher personnel costs, in particular, those incurred in anticipation of the ramp up of Marcellus Shale drilling and production which will not be realized until early 2009. Interest expense rose to $24 million compared to $18 million in the prior-year quarter, due to higher debt outstanding and the refinancing of floating bank debt to longer term fixed rate debt. Depreciation, depletion and amortization rose to $2.24 per mcfe, versus $1.81 in the prior-year quarter due to higher depletion rates and valuation adjustments to the Company’s growing leasehold inventory. Depreciation, depletion and amortization was $0.12 higher than the Company’s guidance for the quarter due to $0.15 of leasehold amortization, due primarily to expiring acreage.

Second quarter development and exploration expenditures totaled $218 million, funding the drilling of 180 (136 net) wells and 18 (11 net) recompletions.  A 99% success rate was achieved with 178 (135 net) wells productive.  In the first six months, 264 (200 net) of the newly drilled wells had been placed on production, with the remainder in various stages of completion or waiting on pipeline connection.  In addition, $45 million was spent on acreage,

$11 million on expanding gas gathering systems and $23 million on property acquisitions.  Drilling activity in the third quarter remains high with 30 rigs currently running. During the second quarter, Range also continued to expand several of its key drilling areas and emerging plays as 150,000 acres of new leasehold were acquired or under contract.

During the second quarter 2008, Range’s Appalachian division continued to focus on its key coal bed methane and shale drilling projects in Virginia with 64 wells drilled.  In the Nora field in Virginia, the division drilled 37 coal bed methane wells on 60-acre spacing and eight infill wells on 30-acre spacing.  In addition, Range drilled 17 tight gas sand wells in Nora during the quarter, achieving higher than expected initial production results. The initial horizontal Huron Shale well drilled in late 2007 continues to produce in line with expectations, and the first two horizontal shale wells drilled in 2008 of a 10-well program planned had initial in-line production rates of 1.2 and 0.5 Mmcfe per day. Due to mechanical problems, the lower-rate well had a shorter lateral, but given the length, the rate appears to be proportional. If the Huron program is successful, it will de-risk about 1.5 Tcf of net gas reserves to Range by year-end. The Nora area is one of the largest coal bed methane accumulations in the Appalachian Basin with more than 1,800 producing CBM wells and more than 2,400 remaining locations to be drilled based on 60-acre spacing. If downspacing of coal bed methane and tight gas sand wells are included, the number of remaining locations could exceed 6,000 excluding the shale development.

In the Appalachian Basin Marcellus Shale play, the Company continues its delineation drilling and leasing efforts.  At the May update, our acreage position in the Marcellus trend totaled 1.15 million net acres with 700,000 net acres considered very prospective.  This position has since expanded to 1.4 million net acres, of which approximately 850,000 acres have been high-graded for further evaluation.  Currently, we have three rigs drilling Marcellus Shale wells with plans to add two fit-for-purpose rigs in 2009. Preliminary planning for 2009 includes increasing to eight rigs. To date, 25 horizontal shale wells have been drilled, of which 22 have been completed. During the second quarter, Range completed seven horizontal shale wells in the Marcellus which had initial production rates averaging 4.9 Mmcfe per day. Three of these horizontal wells were significant “step-outs” which have proven up additional acreage. The 4.9 Mmcfe per day average test rate for the most recent seven wells compares to 4.1 Mmcfe per day for the 10 previously announced horizontal wells. Based on the results to date, Range estimates that the gross average reserves per horizontal well are in the range of 3 to 4 Bcfe. In a development mode, Range anticipates that a typical Marcellus horizontal well will cost $3 to $4 million. Based on results to date, estimated finding and development costs range from $0.90 to $1.60 per mcfe. Range has revised upward its estimate of the unrisked reserve potential of its leasehold position to 15 to 22 Tcfe. The Company also recently announced a midstream and infrastructure agreement with MarkWest Energy Partners, L.P. to construct and operate pipelines and processing facilities. Range has secured firm transportation capacity on interstate carriers totaling 150 Mmcf per day and expects to expand this capacity as the play develops. Production will be phased in, but is expected to reach 30 Mmcfe per day in the first quarter of 2009. Parties wishing to lease their property should call Range’s land department in Pittsburgh at 724-743-6700.

In the North Texas Fort Worth Basin, the second quarter was highlighted by the completion of four new wells with combined test rates of 33 (25 net) Mmcfe per day. While production for the quarter was severely impacted by pipeline curtailments, two pipeline expansion projects by third parties are anticipated to be completed late in the third and fourth quarters. In Hood County, we have significantly reduced our drilling and completion costs. Our most recent three wells took 10 days from spud to rig release and will be completed for approximately $1.6 million per well, providing excellent finding and development costs of about $0.80 per mcfe. Additional testing in Ellis and Hill counties is continuing. Production from the Moore #2 in Ellis County is nearly identical to the Moore #1 well (approximately 1.5 Mmcfe per day) but was drilled in significantly less time. A third well is planned using a different completion technique in an attempt to improve well economics. In Hill County, we continue to devise and test different completion techniques. Encouragingly, our most recent well is producing 2.4 Mmcfe per day.

Second quarter activity for the Midcontinent division included the drilling of 24 (21 net) wells with a 96% success rate. Texas Panhandle Granite Wash drilling resulted in three completions with combined rates of 5.9 (4.0 net) Mmcfe per day. One additional well is awaiting pipeline connection, and two wells are flowing back fracture stimulations prior to connection. The Ardmore Basin Woodford play also encountered positive results. A horizontal Woodford well was turned to sales flowing 3.0 (1.2 net) Mmcfe per day. Three additional Woodford

completions are expected to commence sales within the next few weeks. Drilling activity also continues in the deep Anadarko Basin, Watonga/Chickasha Trend, and the northern Oklahoma shallow play with one rig remaining active in each area. Over 98 (80 net) wells are planned for the Midcontinent region in 2008. In the Gulf Coast division, the Thornhill #3, located in Mississippi, targeting a Hosston sand recently came online and is producing 5.0 (3.6 net) Mmcfe per day.

Conference Call Information

The Company will host a conference call on Thursday, July 24 at 1:00 p.m. ET to review these results. To participate in the call, please dial 877-407-8035 and ask for the Range Resources second quarter financial results conference call. A replay of the call will be available through July 31 at 877-660-6853. The account number is 286 and the conference ID for the replay is 291380. Additional financial and statistical information about the period not included in this release but to be presented in the conference call will be available on our home page at www.rangeresources.com.

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 and Supplemental Tables:

Second quarter 2008 results included several non-cash items. A $164 million non-cash mark-to-market loss on unrealized derivatives, a $7 million expense recorded for the mark-to-market in the deferred compensation plan, a $1 million loss from property sales and $9 million of non-cash stock compensation expense were recorded. Excluding these items, net income would have been $75 million or $0.50 per share ($0.48 fully diluted). Excluding similar non-cash items from the prior-year quarter, net income would have been $61 million or $0.42 per share ($0.41 fully diluted). By excluding these non-cash items from our earnings, we believe we present our earnings in a manner consistent with the presentation used by analysts in their projection of the Company’s earnings (see accompanying table for calculation of these non-GAAP measures).

Range has reclassified within total revenues its financial reporting of the cash settlement of its commodity derivatives. Under this presentation those hedges considered “effective” under SFAS No. 133 (Appalachia oil and gas hedges and Southwest oil hedges) are included in “Oil and gas sales” when settled. For those hedges designated to regions where the historical correlation between NYMEX and regional prices is “non-highly effective” (Southwest gas) or is “volumetric ineffective” due to sale of the underlying reserves (Gulf Coast oil and gas), they are deemed to be “derivatives” and the cash settlements are included in a separate line item shown as “Derivative fair value income (loss)” in Form 10-Q along with the change in mark-to-market valuations of such unrealized derivatives. The Company has provided additional information regarding oil and gas sales in a supplemental table included with this release, which would correspond to amounts shown by analysts for oil and gas sales realized, including cash-settled derivatives.

Under GAAP, due to the sale of all the Company’s Gulf of Mexico properties at the end of the first quarter of 2007, all Gulf of Mexico operations during the first quarter 2007 were reclassified to “Discontinued operations” in the reported GAAP financial statements. The Company has presented a supplemental table which reconciles these reported GAAP financial amounts to the amounts if the operations of the Gulf of Mexico properties for the 2007 period were combined with the amounts from the continuing operations. The Company believes that the combined results, by including the Gulf of Mexico properties, corresponds to the methodology used by professional research analysts and, therefore, are useful in evaluating operational trends of the Company and its actual historical performance relative to other oil and gas producing companies by investors in making investment decisions (see the reconciliation of reported continuing operations under GAAP to the combined operations, a non-GAAP presentation in the accompanying table).

“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 anticipated reserve potential, production, drilling results, capital expenditures, the number of wells to be drilled, future realized prices and financial results 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 herein by reference.

Range’s internal estimates of reserves may be subject to revision and may be different from estimates by our external reservoir engineers at year-end. Although we believe the expectations and forecasts reflected in these and other forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. The Securities and Exchange Commission permits oil and gas companies, in filings made with the Securities and Exchange Commission, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms, such as “probable,” “possible,” “potential” or “unproven,” that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized by the Company. While we believe our calculations of unproven drill sites and estimation of unproven or potential reserves are reasonable, such calculations and estimates have not been reviewed by third-party engineers. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at www.rangersources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

2008-23

Contacts:		Rodney Waller, Sr. Vice President		817-869-4258
		David Amend, IR Manager		817-869-4266

     Karen Giles, Corporate Communications Manager 817-869-4238

		Main number:		817-870-2601
		www.rangeresources.com.

RANGE RESOURCES CORPORATION

STATEMENTS OF INCOME
Based on GAAP reported earnings with additional
details of items included in each line in Form 10-Q
     (Unaudited, in thousands, except per share data)

		Three Months Ended June 30,												Six Months Ended June 30,
		2008				2007								2008				2007
Revenues
Oil and gas sales (a)		$	347,622			$	213,896							$	655,006			$	407,212
Cash-settled derivative gain (a)(c)			(34,962	)			7,695								(20,259	)			31,405
Transportation and gathering			1,335				612								2,591				889
Transportation and gathering — non-cash stock compensation (b)			(111	)			(101	)							(238	)			(194	)
Change in mark-to-market on unrealized derivatives (c)			(164,006	)			20,322								(299,227	)			(45,789	)
Ineffective hedging gain (loss) (c)			558				749								(2,691	)			530
Gain (loss) on sale of properties (d)			(633	)			17								20,047				20
Other (d)			274				324								186				2,282
		$	150,077			$	243,514				-38	%		$	355,415			$	396,355				-10	%
Expenses
Direct operating			36,517				24,345								68,889				49,362
Direct operating – non-cash stock compensation (b)			711				471								1,289				868
Production and ad valorem taxes			16,056				11,230								29,896				21,642
Exploration			18,443				10,806								33,947				21,777
Exploration – non-cash stock compensation (b)			1,019				919								2,108				1,658
General and administrative			16,973				12,468								29,774				23,512
General and administrative – non-cash stock compensation (b)			6,965				5,370								11,576				9,004
Deferred compensation plan (e)			7,539				9,334								28,150				20,581
Interest			23,842				17,573								46,988				36,421
Depletion, depreciation and amortization			77,463				51,465								149,033				98,797
			205,528				143,981				43	%			401,650				283,622				42	%
Income from continuing operations before income taxes			(55,451	)			99,533				-156	%			(46,235	)			112,733				-141	%
Income taxes
Current			949				(101	)							1,835				283
Deferred			(21,818	)			34,449								(15,228	)			38,896
			(20,869	)			34,348								(13,393	)			39,179
Income from continuing operations			(34,582	)			65,185				-153	%			(32,842	)			73,554				-145	%
Discontinued operations, net of taxes			—				(979	)							—				63,789
Net income		$	(34,582	)		$	64,206				-154	%		$	(32,842	)		$	137,343				-124	%
Basic
Income from continuing operations		$	(0.23	)		$	0.45							$	(0.22	)		$	0.52
Discontinued operations			—				(0.01	)							—				0.45
Net income		$	(0.23	)		$	0.44				-152	%		$	(0.22	)		$	0.97				-121	%
Diluted
Income from continuing operations		$	(0.23	)		$	0.43							$	(0.22	)		$	0.50
Discontinued operations			—				—								—				0.44
Net income		$	(0.23	)		$	0.43				-154	%		$	(0.22	)		$	0.94				-121	%
Weighted average shares outstanding, as reported
Basic			150,772				145,169				4	%			149,215				141,644				5	%
Diluted			150,772				150,182				0	%			149,215				146,616				2	%

RANGE RESOURCES CORPORATION

STATEMENTS OF INCOME
Restated for Gulf of Mexico Discontinued
Operations, a non-GAAP Presentation
(Unaudited, in thousands)

		Three
		Months				Three Months Ended June 30,
		Ended				2007				GOM				2007
		June 30,				As				Discontinued				Including
		2008				reported				Operations				GOM
Revenues
Oil and gas sales (a)		$	347,622			$	213,896			$	(932	)		$	212,964
Cash-settled derivative gain (a)			(34,962	)			7,695				—				7,695
Transportation and gathering			1,335				612				(58	)			554
Transportation and gathering – stock based compensation			(111	)			(101	)			—				(101	)
Change in mark-to-market on unrealized derivatives			(164,006	)			20,322				—				20,322
Ineffective hedging gain (loss)			558				749				—				749
Equity method investment			294				385				—				385
Gain (loss) on sale of properties			(633	)			17				—				17
Interest and other			(20	)			(61	)			(1	)			(62	)
			150,077				243,514				(991	)			242,523
Expenses
Direct operating			36,517				24,345				108				24,453
Direct operating – stock based compensation			711				471				—				471
Production and ad valorem taxes			16,056				11,230				—				11,230
Exploration			18,443				10,806				—				10,806
Exploration – stock based compensation			1,019				919				—				919
General and administrative			16,973				12,468				47				12,515
General and administrative – stock based compensation			6,965				5,370				—				5,370
Non-cash compensation deferred compensation plan			7,539				9,334				—				9,334
Interest expense			23,842				17,573				—				17,573
Depletion, depreciation and amortization			77,463				51,465				—				51,465
			205,528				143,981				155				144,136
Income from continuing operations before income taxes			(55,451	)			99,533				(1,146	)			98,387
Income taxes provision
Current			949				(101	)			—				(101	)
Deferred			(21,818	)			34,449				(401	)			34,048
			(20,869	)			34,348				(401	)			33,947
Income from continuing operations			(34,582	)			65,185				(745	)			64,440
Discontinued operations – Austin Chalk, net of tax			—				(234	)			—				(234	)
Discontinued operations – Gulf of Mexico, net of tax			—				(745	)			745				—
Net income		$	(34,582	)		$	64,206			$	—			$	64,206

OPERATING HIGHLIGHTS
(Unaudited)

Average Daily Production
Oil (bbl)			9,111				9,688				—				9,688
Natural gas liquids (bbl)			3,684				3,081				—				3,081
Gas (mcf)			303,879				236,418				—				236,418
Equivalents (mcfe) (b)			380,651				313,036				—				313,036
Average Prices Realized (c)
Oil (bbl)		$	72.34			$	60.01			$	—			$	60.01
Natural gas liquids (bbl)		$	8.46			$	40.31			$	—			$	40.31
Gas (mcf)		$	56.12			$	7.32			$	—			$	7.32
Equivalents (mcfe) (b)		$	9.03			$	7.78			$	—			$	7.78

Direct Operating Costs per mcfe (d)
Field expenses		$	0.95			$	0.78			$	—			$	0.79
Workovers		$	0.10			$	0.07			$	—			$	0.07
Total operating costs		$	1.05			$	0.85			$	—			$	0.86

RANGE RESOURCES CORPORATION

STATEMENTS OF INCOME
Restated for Gulf of Mexico Discontinued
Operations, a non-GAAP Presentation
(Unaudited, in thousands)

		Six
		Months				Six Months Ended June 30,
		Ended								GOM				2007
		June 30,				2007				Discontinued				Including
		2008				As reported				Operations				GOM
Revenues
Oil and gas sales (a)		$	655,006			$	407,212			$	9,938			$	417,150
Cash-settled derivative gain (a)			(20,259	)			31,405				—				31,405
Transportation and gathering			2,591				889				10				899
Transportation and gathering – stock based compensation			(238	)			(194	)			—				(194	)
Change in mark-to-market on unrealized derivatives			(299,227	)			(45,789	)			—				(45,789	)
Ineffective hedging gain (loss)			(2,691	)			530				—				530
Equity method investment			19				796				—				796
Gain (loss) on sale of properties			20,047				20				—				20
Interest and other			167				1,486				(1	)			1,485
			355,415				396,355				9,947				406,302
Expenses
Direct operating			68,889				49,362				2,477				51,839
Direct operating – stock based compensation			1,289				868				—				868
Production and ad valorem taxes			29,896				21,642				105				21,747
Exploration			33,947				21,777				—				21,777
Exploration – stock based compensation			2,108				1,658				—				1,658
General and administrative			29,774				23,512				47				23,559
General and administrative – stock based compensation			11,576				9,004				—				9,004
Non-cash compensation deferred compensation plan			28,150				20,581				—				20,581
Interest expense			46,988				36,421				594				37,015
Depletion, depreciation and amortization			149,033				98,797				3,325				102,122
			401,650				283,622				6,548				290,170
Income from continuing operations before income taxes			(46,235	)			112,733				3,399				116,132
Income taxes provision
Current			1,835				283				—				283
Deferred			(15,228	)			38,896				1,190				40,086
			(13,393	)			39,179				1,190				40,369
Income from continuing operations			(32,842	)			73,554				2,209				75,763
Discontinued operations – Austin Chalk, net of tax			—				(539	)			—				(539	)
Discontinued operations – Gulf of Mexico, net of tax			—				64,328				(2,209	)			62,119
Net income		$	(32,842	)		$	137,343			$	—			$	137,343
OPERATING HIGHLIGHTS
(Unaudited)
Average Daily Production
Oil (bbl)			8,702				9,503				214				9,717
Natural gas liquids (bbl)			3,559				3,058				—				3,058
Gas (mcf)			302,065				227,669				5,267				232,936
Equivalents (mcfe) (b)			375,628				303,039				6,555				309,594
Average Prices Realized (c)
Oil (bbl)		$	71.34			$	58.05			$	58.17			$	58.07
Natural gas liquids (bbl)		$	54.16			$	35.29			$	—			$	35.29
Gas (mcf)		$	8.85			$	7.75			$	9.03			$	7.75
Equivalents (mcfe) (b)		$	9.28			$	8.00			$	9.16			$	8.00
Direct Operating Costs per mcfe (d)
Field expenses		$	0.93			$	0.84			$	2.01			$	0.87

Workovers		$	0.08			$	0.06			$	0.35			$	0.06
Total operating costs		$	1.01			$	0.90			$	2.36			$	0.93

RANGE RESOURCES CORPORATION

BALANCE SHEETS
(Audited, in thousands)

		June 30,				December 31,
		2008				2007
		Unaudited
Assets
Current assets		$	436,508			$	208,796
Current unrealized derivative gain			1,603				53,018
Oil and gas properties			4,162,448				3,503,808
Transportation and field assets			71,263				61,126
Unrealized derivative gain			3,218				1,082
Other			204,616				188,678
		$	4,879,656			$	4,016,508
Liabilities and Stockholders’ Equity
Current liabilities		$	346,413			$	273,073
Current asset retirement obligation			1,609				1,903
Current unrealized derivative loss			524,354				30,457
Bank debt			206,000				303,500
Subordinated notes			1,097,356				847,158
Total long-term debt			1,303,356				1,150,658
Deferred taxes			535,575				590,786
Unrealized derivative loss			214,111				45,819
Deferred compensation liability			149,537				120,223
Long-term asset retirement obligation and other			80,846				75,567
Common stock and retained earnings			2,008,617				1,760,181
Treasury stock			(5,334	)			(5,334	)
Other comprehensive loss			(279,428	)			(26,825	)
Total stockholders’ equity			1,723,855				1,728,022
		$	4,879,656			$	4,016,508

RANGE RESOURCES CORPORATION

CASH FLOWS FROM OPERATIONS
     (Unaudited, in thousands)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2008				2007				2008				2007
Net income		$	(34,582	)		$	64,206			$	(32,842	)		$	137,343
Adjustments to reconcile net income to net cash provided by operations:
Income from discontinued operations			—				979				—				(63,789	)
Gain from equity investment			(294	)			(385	)			(19	)			(796	)
Deferred income tax expense (benefit)			(21,818	)			34,449				(15,228	)			38,896
Depletion, depreciation and amortization			77,463				51,465				149,033				98,797
Exploration dry hole costs			4,288				4,490				9,256				8,898
Mark-to-market losses on oil and gas derivatives not designated as hedges			164,006				(20,322	)			299,227				45,789
Ineffective hedging (gain) loss			(558	)			(749	)			2,691				(530	)
Amortization of deferred financing costs and other			859				550				1,488				1,076
Deferred and stock-based compensation			16,390				16,252				43,601				32,689
(Gain) loss on sale of assets and other			496				67				(19,972	)			119
Changes in working capital:
Accounts receivable			(63,301	)			(19,786	)			(94,657	)			(27,179	)
Inventory and other			(31,117	)			2,520				(29,839	)			260
Accounts payable			20,927				40,427				22,384				(8,484	)
Accrued liabilities			5,800				8,249				9,739				3,385
Net changes in working capital			(67,691	)			31,410				(92,373	)			(32,018	)
Net cash provided from continuing operations		$	138,559			$	182,412			$	344,862			$	266,474

RECONCILIATION OF CASH FLOWS, a non-GAAP measure
     (Unaudited, in thousands)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2008				2007				2008				2007
Net cash provided from continuing operations, as reported		$	138,559			$	182,412			$	344,862			$	266,474
Net change in working capital			67,691				(31,410	)			92,373				32,018
Exploration expense			14,155				6,316				24,691				12,879
Cash flow from Gulf of Mexico properties			—				(1,134	)			—				6,724
Other			277				244				(405	)			273
Cash flow from operations before changes in working capital, non-GAAP measure		$	220,682			$	156,428			$	461,521			$	318,368

ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING
     (Unaudited, in thousands)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2008				2007				2008				2007
Basic:
Weighted average shares outstanding			153,203				146,214				151,565				142,733
Stock held by deferred compensation plan			(2,431	)			(1,045	)			(2,350	)			(1,089	)
			150,772				145,169				149,215				141,644
Dilutive:
Weighted average shares outstanding			153,203				146,214				151,565				142,733
Dilutive stock options under treasury method			(2,431	)			3,968				(2,350	)			3,883
			150,772				150,182				149,215				146,616

RANGE RESOURCES CORPORATION

OIL AND GAS SALES INFORMATION
A Non-GAAP Measure Including Gulf of Mexico
Discontinued Operations
(Unaudited, in thousands, except per unit data)

		Three Months Ended												Six Months Ended
		June 30,												June 30,
		2008				2007								2008				2007
Oil and gas sales components:
Oil sales		$	99,715			$	54,840							$	171,134			$	104,062
NGL sales			18,812				11,303								35,079				19,532
Gas sales			279,054				148,670								493,570				283,603
Cash-settled hedges (effective):
Crude oil			(33,033	)			(1,936	)							(48,425	)			(1,948	)
Natural gas			(16,926	)			87								3,648				11,901
Total oil and gas sales, as reported		$	347,622			$	212,964				63	%		$	655,006			$	417,150				57	%
Derivative fair value income (loss) components:
Cash-settled derivatives (ineffective):
Crude oil		$	(6,705	)		$	4							$	(9,725	)		$	4
Natural gas			(28,257	)			7,691								(10,534	)			31,401
Change in mark-to-market on unrealized derivatives			(164,006	)			20,322								(299,227	)			(45,789	)
Unrealized ineffectiveness			558				749								(2,691	)			530
Total derivative fair value income (loss), as reported		$	(198,410	)		$	28,766							$	(322,177	)		$	(13,854	)
Oil and gas sales, including cash-settled derivatives:
Oil sales		$	59,977			$	52,908							$	112,984			$	102,118
Natural gas liquid sales			18,812				11,303								35,079				19,532
Gas sales			233,871				156,448								486,684				326,905
Total		$	312,660			$	220,659				42	%		$	634,747			$	448,555				42	%
Production during the period:
Oil (bbl)			829,144				881,641				-6	%			1,583,689				1,758,995				-10	%
Natural gas liquid (bbl)			335,231				280,407				20	%			647,731				553,537				17	%
Gas (mcf)			27,653,005				21,514,007				29	%			54,975,779				42,161,397				30	%
Equivalent (mcfe) (a)			34,639,255				28,486,295				22	%			68,364,299				56,036,589				22	%
Production — average per day:
Oil (bbl)			9,111				9,688				-6	%			8,702				9,717				-10	%
Natural gas liquid (bbl)			3,684				3,081				20	%			3,559				3,058				16	%
Gas (mcf)			303,879				236,418				29	%			302,065				232,936				30	%
Equivalent (mcfe) (a)			380,651				313,036				22	%			375,628				309,594				21	%
Average prices realized, including cash-settled hedges and derivatives:
Crude oil (per bbl)		$	72.34			$	60.01				21	%		$	71.34			$	58.07				23	%
Natural gas liquid (per bbl)		$	56.12			$	40.31				39	%		$	54.16			$	35.29				53	%
Gas (per mcf)		$	8.46			$	7.27				16	%		$	8.85			$	7.75				14	%
Equivalent (per mcfe) (a)		$	9.03			$	7.75				17	%		$	9.28			$	8.00				16	%

RANGE RESOURCES CORPORATION

RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
AS REPORTED TO INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
EXCLUDING CERTAIN NON-CASH ITEMS, a non-GAAP measure
(Unaudited, in thousands, except per share data)

		Three Months Ended												Six Months Ended
		June 30,												June 30,
		2008				2007								2008				2007
As reported		$	(55,451	)		$	99,533				-156	%		$	(46,235	)		$	112,733				-141	%
Adjustment for certain non-cash items
(Gain) loss on sale of properties			633				(17	)							(20,047	)			(20	)
Gulf of Mexico — discontinued operations			—				(1,133	)							—				3,399
Change in mark-to-market on unrealized derivatives			164,006				(20,322	)							299,227				45,789
Ineffective hedging (gain) loss			(558	)			(749	)							2,691				(530	)
Transportation and gathering — non-cash stock compensation			111				101								238				194
Direct operating — non-cash stock compensation			711				471								1,289				868
Exploration expenses — non-cash stock compensation			1,019				919								2,108				1,658
General & administrative — non-cash stock compensation			6,965				5,370								11,576				9,004
Deferred compensation plan — non-cash stock compensation			7,539				9,334								28,150				20,581
As adjusted			124,975				93,507				34	%			278,997				193,676				44	%
Income taxes, adjusted
Current			949				(101	)							1,835				283
Deferred			49,180				32,360								106,822				66,174
Net income excluding certain items, a non-GAAP measure		$	74,846			$	61,248				22	%		$	170,340			$	127,219				34	%
Non-GAAP earnings per share
Basic		$	0.50			$	0.42				19	%		$	1.14			$	0.90				27	%
Diluted		$	0.48			$	0.41				17	%		$	1.10			$	0.87				26	%
Non-GAAP diluted shares outstanding			156,911				150,182				4	%			155,333				146,616				6	%