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 February 24, 2009 Range Resources Corporation issued a press release announcing its 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 February 24, 2009

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: February 25, 2009

EXHIBIT INDEX

Exhibit Number		Description
99.1		Press Release dated February 24, 2009

EXHIBIT 99.1

NEWS RELEASE

RANGE ANNOUNCES RECORD 2008 RESULTS

FORT WORTH, TEXAS, FEBRUARY 24, 2009...RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its 2008 results. Production, reserves, revenues, oil and gas sales, cash flow and earnings all reached record high levels for the year. Reported revenues were $1.32 billion up 53%, oil and gas sales were $1.23 billion up 42%, net cash provided from operating activities was $825 million up 30% and reported GAAP net income was $346 million or $2.22 diluted earnings per share, up 50% over the prior year. The following measures are non-GAAP financial measures that we believe are most comparable to analysts’ estimates for the same amounts for the year. Please see the accompanying definitions and tables for the reconciliation of each of these non-GAAP measures. Oil and gas sales including cash-settled derivatives totaled $1.21 billion, a 28% increase over the prior year. Cash flow from operations before changes in working capital increased 27% to $853 million. Adjusted net income comparable to analysts’ estimates was $309 million, increasing 22% from the prior comparable year. Diluted earnings per share (adjusted) were $1.98, a 16% increase. On the same basis as analysts’ estimates, earnings per share and cash flow from operations per share for the fourth quarter and for the full-year 2008 exceeded the average First Call estimates. A 20% increase in production coupled with a 7% rise in realized prices drove the record results. Proved reserves increased 19% to 2.7 Tcfe at year-end 2008. Range replaced 405% of production during the year at an all-in cost of $3.10 per mcfe. During 2008, Range invested approximately $600 million to acquire roughly 400,000 net acres of leasehold. Drill bit only finding cost was $1.70 per mcfe.

Commenting, John H. Pinkerton, the Company’s Chairman and CEO, said, “Record highs were achieved in 2008 for all key metrics both on an absolute and per share basis. Operationally, production rose 20% and proved reserves increased 19%. Additionally, we added 400,000 net acres to our leasehold inventory at an attractive cost averaging $1,500 per acre. The majority of this acreage was added in our Marcellus Shale play. Looking ahead, we are well-positioned to continue to add value in the current lower commodity price environment. Our drilling plans for 2009 have been scaled back to focus on the Barnett Shale, the Nora Field and the Marcellus Shale. Each of these areas provides attractive rates of return at current price levels. Our balance sheet is strong, and we have substantial liquidity under our bank facility. We have 81% of our 2009 natural gas production hedged at an average floor price of $7.62 per mcf. Importantly, we continue to make solid progress with regard to delineating and expanding our emerging plays. The unrisked resource potential of the drilling inventory and emerging plays is 8 to 10 times larger than our current proven reserves and will serve as the catalyst for our future growth for many years to come. We look at 2009 as being a year where we may be able to capture unique opportunities in our core operating areas.”

Production for the year totaled 141 Bcfe, comprised of 114 Bcf of gas and 4.5 million barrels of oil and liquids. Production rose in each quarter of the year and averaged 386 Mmcfe per day. Range has now achieved sequential production growth for 24 consecutive quarters. Wellhead prices, after adjustment for all cash-settled hedges and derivatives, rose 7% to $8.58 per mcfe. The average gas price rose 6% to $8.15 per mcf, as the average oil price rose 13% to $68.20 per barrel. The cash margin per mcfe for 2008 rose to a record $6.04 per mcfe, 7% higher than 2007.

Reported revenues for the fourth quarter were $345 million up 54%, net cash provided from operating activities was $224 million up 20% and net income was $94 million or $0.60 per diluted share, up 173% over the prior year. The amounts corresponding to analysts’ estimates for the same measures, which are non-GAAP measures for the fourth quarter of 2008, are as follows (see the accompanying tables for the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure): Oil and gas revenues, including all cash-settled derivatives, declined 3% to $255 million, production increased by 17% to 403 Mmcfe per day, realized prices decreased 17% to $6.86 per mcfe, and cash flow from operations before changes in working capital decreased 13% to $165 million and diluted earnings per share (adjusted) decreased 21% to $0.33.

As previously noted, Range replaced 405% of production in 2008. Drilling alone replaced 367% of production. Proved reserves at December 31, 2008 totaled 2.7 Tcfe, including 2.2 Tcf of natural gas and 73 million barrels of crude oil and liquids. Reserves increased 421 Bcfe or 19% compared to the prior year. At year-end, reserves were 83% natural gas by volume, and the reserve life index stood at 18 years based on fourth quarter production rates. The percentage of proved undeveloped reserves increased to 38% versus 36% in 2007. Independent petroleum consultants reviewed 87% of the reserves by volume. At year- end, the pretax present value of proved reserves, based on constant prices and costs, discounted at 10% totaled $3.4 billion, and the after

tax standardized measure was $2.6 billion. The reserve value was based on year-end benchmark prices of $5.71 per Mmbtu and $44.60 per barrel NYMEX. The Company’s all-in finding and development cost averaged $3.10 per mcfe. Drill bit only finding cost was $1.70 per mcfe.

2009 Capital Spending —

Range’s 2009 capital spending budget is currently $700 million which is expected to approximate cash flow based upon current commodity prices. We will monitor commodity prices and oil field service costs throughout the year and remain flexible to adjust our capital spending. Range is targeting 10% year-over-year production growth for 2009 with the current capital budget. The production growth target is entirely attributable to the Company’s drilling program. We currently anticipate spending $540 million to drill 500 wells (315 net) wells, $100 million for leasehold, $20 million for seismic and $40 million for pipelines and facilities. Nearly 90% of the drilling capital is attributable to Barnett Shale, Nora Field and Marcellus Shale, where well economics are attractive even at current service costs and natural gas prices. Range is considering the sale of a few properties in 2009. Proceeds from any asset sales will be used to seize opportunities that add per share value, such as drilling more wells at lower service costs, adding leasehold in key areas, making opportunistic acquisitions in our existing core operating areas or paying down debt.

Operational Highlights—

During the fourth quarter, the Marcellus Shale division continued to make outstanding progress in completion design and efficiencies and has brought to sales another significant producer. Our most recent horizontal well brought online had a maximum 24-hour rate to sales of 10.3 Mmcfe per day. This rate was achieved after being produced under compressor-constrained conditions for 14 days. Of the last eleven Marcellus wells announced, four had initial rates of 9.9 Mmcfe per day or more. The best well had an initial rate of 24.5 Mmcfe per day. We are also announcing results from two vertical delineation wells in the northeast part of the Marcellus play. These two vertical wells achieved 24-hour initial production rates of 6.3 Mmcfe per day and 2.3 Mmcfe per day. The 6.3 Mmcfe per day is the highest reported 24-hour initial rate from a vertical well in the Marcellus play to date. These initial vertical well results are very encouraging, and Range intends to analyze further opportunities including horizontal development in the northeast portion of the play. Since late October 2008, 13 new Marcellus horizontal wells have been brought online to the new gas processing facility. The 24-hour maximum production rate for those 13 wells averaged 6.9 Mmcfe per day. Again, several of those wells have been produced under constrained conditions. Currently there are 14 wells, including seven horizontals that have been fraced and are waiting on processing capacity expansion before they are turned to sales. In early April 2009, processing capacity is expected to expand from 30 to 60 Mmcf per day. Additional expansions are planned that would bring processing capacity to 180 Mmcf per day by late 2009 or early 2010. Plans are to drill more than 60 wells in the Marcellus Shale play in 2009. The targeted production exit rate for 2009 is 80 — 100 Mmcfe per day net. On the regulatory front, progress has been made in the permitting process for Marcellus Shale wells, and Range has a majority of its 2009 drilling permits already in hand. Range has also secured water withdrawal and disposal capacity for several years of activity in the Marcellus Shale.

During the quarter, four horizontal Huron Shale wells were drilled at the Nora Field in Virginia. To date, nine horizontals have been completed to the Huron Shale and one horizontal Berea well has been completed. Of the seven horizontal Huron Shale wells that are currently on production, the initial production rates have averaged 1.1 Mmcf per day. The initial production rate on the Berea horizontal well was 1.5 Mmcf per day. For 2009, Range plans 220 coal bed, 60 tight gas sand and 20 horizontal Huron Shale wells in the Nora field where Range has a 50% working interest. In West Virginia, Range completed a horizontal Big Lime well on its 77,000 acre Widen property in late 2008 with encouraging results and plans two additional horizontal wells in 2009 to continue testing this horizon.

In the Fort Worth Basin’s Barnett Shale play, Range completed what it believes to be the best well in Hill County to date, for both the Company and the industry. The initial production rate from the Ellig #1-H was 9.0 Mmcfe per day, and it has averaged 4.8 Mmcfe per day over the first 30 days of production. Additional activity in the Fort Worth Basin included the completion of a pilot project to test 250-foot well spacing in southern Tarrant County. The first two pilot wells had a combined initial production rate of 14.0 Mmcfe per day. Range has more than 1,000 additional locations to drill in the core of the Barnett Shale play. The division plans 64 (61 net) new wells for 2009 in the North Texas Barnett Shale play.

Activity for the Midcontinent division in the fourth quarter included the drilling of 16 (6.2 net) wells with an 88% success rate. In the Texas Panhandle, Range’s initial offset to its St. Louis discovery yielded production from the St. Louis Lime at a rate of 2.3 (0.9 net) Mmcfe per day. A second offset completed for 3.0 ( 1.1 net) Mmcfe per day, with a third well currently being completed. Two additional wells in the Watonga-Chickasha Trend commenced production during the quarter at rates of 2.0 ( 1.5 net) Mmcfe per day and 1.5 ( 1.2 net) Mmcfe per day. A deep Anadarko Basin well encountered significant Springer production, commencing sales at a rate of 10.9 (3.5 net) Mmcfe per day. Drilling has also continued in the Ardmore Basin Woodford Play, where three wells are currently being completed. The division plans 44 (25 net) new wells for 2009.

The Company will host a conference call on Wednesday, February 25 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 2008 financial results conference call. A replay of the call will be available through March 4 at 877-660-6853. The conference ID for the replay is 312118 and the Account number is 286.

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 2008 included $83.9 million in mark-to-market gains on certain derivative transactions, derivative ineffective hedging gains of $1.7 million, $20.2 million gain on sale of properties, non-cash stock compensation expense of $6.5 million and an abandonment and impairment expense related to unproved properties of $47.9 million. Excluding such items, income before income taxes would have been $491 million, a 20% increase over the prior year. Adjusting for the after-tax effect of these items, the Company’s earnings would have been $309 million in 2008 or $2.05 per share ($1.98 per diluted share). If similar items were excluded, 2007 earnings would have been $254 million or $1.77 per share ($1.70 per diluted share). Earnings for 2007 included a mark-to-market derivative loss of $78.8 million, ineffective hedging losses of $0.8 million, $52.3 million of non-cash stock compensation and an abandonment and impairment expense related to unproved properties of $6.8 million. (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 for cash flow, cash margins and non-GAAP earnings as used in this release.

The cash prices realized for oil and natural gas production including the amounts realized on cash settled derivatives is a critical component in the Company’s performance tracked by investors and professional research analysts in valuing, comparing, rating and providing investment recommendations and forecasts of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Due to the GAAP disclosures of various hedging and derivative transactions, such information is now reported in various lines of the income statement. The Company believes that it is important to furnish a table reflecting the details of the various components of each income statement line to better inform the reader the details of each amount and provide a summary of the realized cash-settled amounts which historically were reported as oil and gas sales revenues. This information will serve to bridge the gap between various readers’ understanding and fully disclose the information needed.

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 expected reserves quantities, targeted capital expenditures, number of wells to be drilled, assessments of financial condition and liquidity, drilling inventory, unrisked resource potential and emerging plays resource potential 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. 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.

Finding costs from all sources is calculated by taking all cash expenditures for drilling, development, acreage and acquisitions divided by the sum of extensions, discoveries, additions, purchases and all pricing and performance revisions to reserve volumes. Drill bit finding costs is calculated by taking all cash expenditures for drilling and development costs divided by the sum of extensions, discoveries, additions and performance revisions to reserves volumes.

The Securities and Exchange Commission permits oil and gas companies, in filings made with the SEC, to disclose only proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Range uses the terms “probable” and “possible” reserves, “unproven” or “unrisked resource potential” or “upside” or other descriptions of volumes of reserves or resources potentially recoverable through additional drilling or recovery techniques 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 Range. Resource potential refers to Range’s internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques. Resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System and does not include any proved reserves. Area wide unproven, unrisked resource potential has not been risked by Range’s management. Actual quantities that may be ultimately recovered from Range’s interests will differ substantially. Factors affecting ultimate recovery include the scope of Range’s drilling program, which will be directly affected by the availability of capital, drilling and production costs, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals and other factors; and actual drilling results, including geological and mechanical factors affecting recovery rates. Estimates of resource potential may change significantly as development of our resource plays provides additional data. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this form by calling the SEC at 1-800-SEC-0330.

		2009-6
Contacts:		Rodney Waller, Senior Vice President
		David Amend, Investor Relations Manager

     Karen Giles, Manager of Corporate Communications
(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-K

		Three Months Ended December 31,												Twelve Months Ended December 31,
(Unaudited, in thousands, except per share data)		2008				2007								2008				2007
Revenues
Oil and gas sales (a)		$	223,834			$	240,901							$	1,226,560			$	862,537
Cash-settled derivative gain (a)(c)			30,832				21,033								(15,428	)			71,822
Transportation and gathering			826				1,184								5,060				2,684
Transportation and gathering — non-cash stock compensation (b)			(139	)			(97	)							(483	)			(394	)
Change in mark-to-market on unrealized derivatives (c)			88,777				(38,598	)							83,867				(78,769	)
Ineffective hedging gain (loss) (c)			(166	)			(1,322	)							1,696				(820	)
Gain (loss) on sale of properties (d)			116				(2	)							20,166				20
Other (d)			782				284								1,509				5,011
		$	344,862			$	223,383				54	%		$	1,322,947			$	862,091				53	%
Expenses
Direct operating			34,959				28,779								139,618				105,659
Direct operating – non-cash stock compensation (b)			718				487								2,769				1,840
Production and ad valorem taxes			10,066				9,485								55,172				42,443
Exploration			11,484				12,793								63,560				39,872
Exploration – non-cash stock compensation (b)			1,002				884								4,130				3,473
Abandonment and impairment of unproved properties			36,638				4,887								47,906				6,750
General and administrative			19,580				14,561								68,464				51,422
General and administrative – non-cash stock compensation (b)			6,728				4,535								23,844				18,248
Deferred compensation plan (e)			(15,324	)			(10	)							(24,689	)			28,332
Interest			27,387				21,381								99,748				77,737
Depletion, depreciation and amortization			80,893				66,643								299,831				220,578
			214,131				164,425				30	%			780,353				596,354				31	%
Income from continuing operations before income taxes			130,731				58,958				122	%			542,594				265,737				104	%
Income taxes
Current			59				(96	)							4,268				320
Deferred			36,996				24,743								192,168				98,441
			37,055				24,647								196,436				98,761
Income from continuing operations			93,676				34,311				173	%			346,158				166,976				107	%
Discontinued operations, net of taxes			—				—								—				63,593
Net income		$	93,676			$	34,311				173	%		$	346,158			$	230,569				50	%
Basic
Income from continuing operations		$	0.61			$	0.23							$	2.29			$	1.16
Discontinued operations			—				—								—				0.44
Net income		$	0.61			$	0.23				165	%		$	2.29			$	1.60				43	%
Diluted
Income from continuing operations		$	0.60			$	0.22							$	2.22			$	1.11
Discontinued operations			—				—								—				0.43
Net income		$	0.60			$	0.22				173	%		$	2.22			$	1.54				44	%
Weighted average shares outstanding, as reported
Basic			152,989				146,982				4	%			151,116				143,791				5	%
Diluted			157,118				153,032				3	%			155,943				149,911				4	%

RANGE RESOURCES CORPORATION

STATEMENTS OF INCOME
Restated for Gulf of Mexico Discontinued
Operations, a non-GAAP Presentation

		Twelve
		Months				Twelve Months Ended December 31,
		Ended								GOM				2007
		December 31,				2007				Discontinued				Including
(Unaudited, in thousands)		2008				As Reported				Operations				GOM
Revenues
Oil and gas sales (a)		$	1,226,560			$	862,537			$	9,938			$	872,475
Cash-settled derivative gain (a)			(15,428	)			71,822				—				71,822
Transportation and gathering			5,060				2,684				10				2,694
Transportation and gathering – stock based compensation			(483	)			(394	)			—				(394	)
Change in mark-to-market on unrealized derivatives			83,867				(78,769	)			—				(78,769	)
Ineffective hedging gain (loss)			1,696				(820	)			—				(820	)
Equity method investment			(218	)			974				—				974
Gain (loss) on sale of properties			20,166				20				—				20
Interest and other			1,727				4,037				(1	)			4,036
			1,322,947				862,091				9,947				872,038
Expenses
Direct operating			139,618				105,659				2,477				108,136
Direct operating – stock based compensation			2,769				1,840				—				1,840
Production and ad valorem taxes			55,172				42,443				105				42,548
Exploration			63,560				39,872				—				39,872
Exploration – stock based compensation			4,130				3,473				—				3,473
Abandonment and impairment of unproved properties			47,906				6,750				—				6,750
General and administrative			68,464				51,422				47				51,469
General and administrative – stock based compensation			23,844				18,248				—				18,248
Non-cash compensation deferred compensation plan			(24,689	)			28,332				—				28,332
Interest expense			99,748				77,737				594				78,331
Depletion, depreciation and amortization			299,831				220,578				3,325				223,903
			780,353				596,354				6,548				602,902
Income from continuing operations before income taxes			542,594				265,737				3,399				269,136
Income taxes provision
Current			4,268				320				—				320
Deferred			192,168				98,441				1,190				99,631
			196,436				98,761				1,190				99,951
Income from continuing operations			346,158				166,976				2,209				169,185
Discontinued operations – Austin Chalk, net of tax			—				(411	)			—				(411	)
Discontinued operations – Gulf of Mexico, net of tax			—				64,004				(2,209	)			61,795
Net income		$	346,158			$	230,569			$	—			$	230,569
OPERATING HIGHLIGHTS
(Unaudited)
Average Daily Production
Oil (bbl)			8,428				9,205				106				9,311
Natural gas liquids (bbl)			3,786				3,054				—				3,054
Gas (mcf)			312,359				245,465				2,612				248,077
Equivalents (mcfe) (b)			385,642				319,016				3,251				322,267
Average Prices Realized (c)
Oil (bbl)		$	68.20			$	60.16			$	58.17			$	60.13
Natural gas liquids (bbl)		$	49.43			$	41.40			$	—			$	41.40
Gas (mcf)		$	8.15			$	7.66			$	8.06			$	7.66
Equivalents (mcfe) (b)		$	8.58			$	8.02			$	7.56			$	8.03
Direct Operating Costs per mcfe (d)
Field expenses		$	0.92			$	0.85			$	1.78			$	0.86
Workovers		$	0.07			$	0.06			$	0.31			$	0.06
Total operating costs		$	0.99			$	0.91			$	2.09			$	0.92

RANGE RESOURCES CORPORATION

BALANCE SHEETS
(In thousands)

		December 31,				December 31,
		2008				2007
		Unaudited				Audited
Assets
Current assets		$	182,881			$	208,796
Current unrealized derivative gain			221,430				53,018
Oil and gas properties			4,852,710				3,503,808
Transportation and field assets			86,228				61,126
Unrealized derivative gain 61,			5,231				1,082
Other			214,063				188,678
		$	5,562,543			$	4,016,508
Liabilities and Stockholders’ Equity
Current liabilities		$	351,449			$	273,073
Current asset retirement obligation			2,055				1,903
Current unrealized derivative loss			10				30,457
Bank debt			693,000				303,500
Subordinated notes			1,097,668				847,158
Total long-term debt			1,790,668				1,150,658
Deferred taxes			783,391				590,786
Unrealized derivative loss			—				45,819
Deferred compensation liability			93,247				120,223
Long-term asset retirement obligation and other			83,890				75,567
Common stock and retained earnings			2,388,883				1,760,181
Treasury stock			(8,557	)			(5,334	)
Other comprehensive loss			77,507				(26,825	)
Total stockholders’ equity			2,457,833				1,728,022
		$	5,562,543			$	4,016,508

RANGE RESOURCES CORPORATION

CASH FLOWS FROM OPERATIONS
(Unaudited, in thousands)

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2008				2007				2008				2007
Net income		$	93,676			$	34,311			$	346,158			$	230,569
Adjustments to reconcile net income to net cash provided by operations:
Income from discontinued operations			—				—				—				(63,593	)
Gain from equity investment			388				306				218				(974	)
Deferred income tax expense (benefit)			36,996				24,743				192,168				98,441
Depletion, depreciation and amortization			80,893				66,643				299,831				220,578
Exploration dry hole costs			4,034				6,077				13,371				15,149
Abandonment and impairment of unproved properties			36,638				4,887				47,906				6,750
Mark-to-market losses on oil and gas derivatives not designated as hedges			(88,778	)			38,598				(83,868	)			78,769
Ineffective hedging (gain) loss			167				1,322				(1,695	)			820
Allowance for bad debt			—				—				450				—
Amortization of deferred financing costs and other			763				610				2,900				2,277
Deferred and stock-based compensation			(6,792	)			7,382				6,621				54,152
(Gain) loss on sale of assets and other			358				(35	)			(19,507	)			2,212
Changes in working capital:
Accounts receivable			71,169				(20,975	)			6,701				(50,570	)
Inventory and other			(3,983	)			632				(9,246	)			(1,040	)
Accounts payable			7,736				17,043				10,663				28,640
Accrued liabilities			(8,886	)			5,028				12,096				9,922
Net changes in working capital			66,036				1,728				20,214				(13,048	)
Net cash provided from continuing operations		$	224,379			$	186,572			$	824,767			$	632,102

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

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2008				2007				2008				2007
Net cash provided from continuing operations, as reported		$	224,379			$	186,572			$	824,767			$	632,102
Net change in working capital			(66,036	)			(1,728	)			(20,214	)			13,048
Exploration expense			7,450				6,716				50,189				24,723
Cash flow from Gulf of Mexico properties			—				—				—				6,829
Other			(807	)			(1,658	)			(1,411	)			(3,123	)
Cash flow from operations before changes in working capital, non-GAAP measure		$	164,986			$	189,902			$	853,331			$	673,579

ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING
(Unaudited, in thousands)

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2008				2007				2008				2007
Basic:
Weighted average shares outstanding			155,398				149,323				153,435				145,869
Stock held by deferred compensation plan			(2,409	)			(2,341	)			(2,319	)			(2,078	)
			152,989				146,982				151,116				143,791
Dilutive:
Weighted average shares outstanding			155,398				149,323				153,435				145,869
Dilutive stock options under treasury method			1,720				3,709				2,508				4,042
			157,118				153,032				155,943				149,911

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												Twelve Months Ended
		December 31,												December 31,
		2008				2007								2008				2007
Oil and gas sales components:
Oil sales		$	40,842			$	65,667							$	298,482			$	228,944
NGL sales			13,250				14,361								68,491				46,152
Gas sales			147,348				170,780								923,161				591,402
Cash-settled hedges (effective):
Crude oil			4,292				(16,687	)							(72,135	)			(23,752	)
Natural gas			18,102				6,780								8,561				29,729
Total oil and gas sales, as reported		$	223,834			$	240,901				-7	%		$	1,226,560			$	872,475				41	%
Derivative fair value income (loss) components:
Cash-settled derivatives (ineffective):
Crude oil		$	1,052			$	(799	)						$	(15,991	)		$	(844	)
Natural gas			29,780				21,832								563				72,666
Change in mark-to-market on unrealized derivatives			88,777				(39,920	)							83,867				(78,769	)
Unrealized ineffectiveness			(166	)			—								1,696				(820	)
Total derivative fair value income (loss), as reported		$	119,443			$	(18,887	)						$	70,135			$	(7,767	)
Oil and gas sales, including cash-settled derivatives:
Oil sales		$	46,186			$	48,181							$	210,356			$	204,348
Natural gas liquid sales			13,250				14,361								68,491				46,152
Gas sales			195,230				199,392								932,285				693,797
Total		$	254,666			$	261,934				-3	%		$	1,211,132			$	944,297				28	%
Production during the period:
Oil (bbl)			741,391				799,676				-7	%			3,084,529				3,398,534				-9	%
Natural gas liquid (bbl)			392,335				277,105				42	%			1,385,701				1,114,730				24	%
Gas (mcf)			30,293,825				25,124,892				21	%			114,323,436				90,547,993				26	%
Equivalent (mcfe) (a)			37,096,181				31,585,578				17	%			141,144,816				117,627,577				20	%
Production – average per day:
Oil (bbl)			8,059				8,692				-7	%			8,428				9,311				-9	%
Natural gas liquid (bbl)			4,264				3,012				42	%			3,786				3,054				24	%
Gas (mcf)			329,281				273,097				21	%			312,359				248,077				26	%
Equivalent (mcfe) (a)			403,219				343,322				17	%			385,642				322,267				20	%
Average prices realized, including cash-settled hedges and derivatives:
Crude oil (per bbl)		$	62.30			$	60.25				3	%		$	68.20			$	60.13				13	%
Natural gas liquid (per bbl)		$	33.77			$	51.83				-35	%		$	49.43			$	41.40				19	%
Gas (per mcf)		$	6.44			$	7.94				-19	%		$	8.15			$	7.66				6	%
Equivalent (per mcfe) (a)		$	6.86			$	8.29				-17	%		$	8.58			$	8.03				7	%

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												Twelve Months Ended
		December 31,												December 31,
		2008				2007								2008				2007
As reported		$	130,731			$	58,958				122	%		$	542,594			$	265,737				104	%
Adjustment for certain non-cash items
(Gain) loss on sale of properties			(116	)			2								(20,166	)			(20	)
Gulf of Mexico – discontinued operations			—				—								—				3,399
Change in mark-to-market on unrealized derivatives			(88,777	)			38,598								(83,867	)			78,769
Ineffective hedging (gain) loss			166				1,322								(1,696	)			820
Abandonment and impairment of unproved properties			36,638				4,887								47,906				6,750
Transportation and gathering – non-cash stock compensation			139				97								483				394
Direct operating – non-cash stock compensation			718				487								2,769				1,840
Exploration expenses – non-cash stock compensation			1,002				884								4,130				3,473
General & administrative – non-cash stock compensation			6,728				4,535								23,844				18,248
Deferred compensation plan – non-cash stock compensation			(15,324	)			(10	)							(24,689	)			28,332
As adjusted			71,905				109,760				-34	%			491,308				407,742				20	%
Income taxes, adjusted
Current			59				(96	)							4,268				320
Deferred			19,933				46,065								177,807				153,001
Net income excluding items listed above, a non-GAAP measure		$	51,913			$	63,791				-19	%		$	309,233			$	254,421				22	%
Non-GAAP earnings per share
Basic		$	0.34			$	0.43				-21	%		$	2.05			$	1.77				16	%
Diluted		$	0.33			$	0.42				-21	%		$	1.98			$	1.70				16	%
GAAP diluted shares outstanding			157,118				153,032				3	%			155,943				149,911				4	%

HEDGING POSITION
As of February 24, 2009
(Unaudited)

Gas

Oil

Volume

Average

Volume

Average

Hedged

Hedge

Hedged

Hedge

(Mmbtu/d)

Prices

(Bbl/d)

Prices

Calendar 2009

Swaps

86,342

$

7.73

—

—

Calendar 2009

Collars

191,027

$

7.57 - $8.39

8,000

$

64.01 - $76.00

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