UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
January 16, 2013 (January 16, 2013)
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):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | 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 January 16, 2013 Range Resources Corporation issued a press release providing information regarding its fourth quarter 2012 production volumes, realized prices and derivative position. 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 |
| (d) | Exhibits: |
| 99.1 | Press Release dated January 16, 2013 |
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.
| RANGE RESOURCES CORPORATION | ||
| By: | /s/ Roger S. Manny | |
| Roger S. Manny | ||
| Chief Financial Officer | ||
Date: January 16, 2013
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EXHIBIT INDEX
| Exhibit Number |
Description | |
| 99.1 | Press Release dated January 16, 2013 | |
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EXHIBIT 99.1
NEWS RELEASE
RANGE REPORTS 36% FULL-YEAR 2012 PRODUCTION GROWTH
Liquid Production Grows 41% Quarter Over Quarter
FORT WORTH, TEXAS, JANUARY 16, 2013…RANGE RESOURCES CORPORATION (NYSE: RRC) today announced that its fourth quarter 2012 production volumes reached a record high of 844 Mmcfe per day. Fourth quarter 2012 production increased 35% over the prior-year quarter and was 7% higher than third quarter 2012. While total production rose 35%, oil and NGL production increased 41% during the fourth quarter reflecting the Company’s focus on its high return, liquids-rich plays. Production for full-year 2012 averaged 753 Mmcfe per day, a 36% increase over 2011. This represents Range’s ninth consecutive year of double-digit production growth and posting record production each year.
The Company also announced its preliminary fourth quarter 2012 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements which would correspond to analysts’ estimates) averaged $5.35 per mcfe, representing a 10% increase from the third quarter 2012 and an 11% decrease from the prior-year period. Production and preliminary realized prices by each commodity for the fourth quarter were: natural gas – 655 Mmcf per day ($4.22 per mcf), natural gas liquids – 21,652 barrels per day ($43.56 per barrel) and crude oil – 9,863 barrels per day ($82.30 per barrel).
Commenting on the announcement, Jeff L. Ventura, Range’s President and CEO, said, “We are pleased that fourth quarter and full year production exceeded expectations and that we achieved our ninth consecutive year of double-digit production growth. This is a significant accomplishment for the entire Range team. The 41% increase in fourth quarter oil and NGL production reflects the high-quality nature of our large drilling inventory and positions us very well in the current commodity price environment. We expect increasing liquids production, coupled with our strong hedge position, to drive substantial cash flow growth in 2013 and longer term, our high-return inventory and low-cost structure to continue to drive shareholder value.”
During the fourth quarter, Range increased its commodity hedge position. The Company currently has approximately 75% of its anticipated natural gas and crude oil production for 2013 hedged at a weighted average floor of $4.18 per Mmbtu and $94.36 per barrel, respectively. In addition, Range has 11,500 barrels of NGLs hedged above current market prices. Range’s updated hedge position is shown in the table below.
| Volumes Hedged |
Average Floor Price |
Average Cap Price |
||||||||||
| Natural Gas — |
Mmbtu/day | |||||||||||
| 2013 Gas Collars |
280,000 | $ | 4.59 | $ | 5.05 | |||||||
| 2013 Gas Swaps |
213,384 | $ | 3.65 | — | ||||||||
| 2014 Gas Collars |
385,000 | $ | 3.80 | $ | 4.48 | |||||||
| Crude Oil — |
Bbls/day | |||||||||||
| 2013 Oil Collars |
3,000 | $ | 90.60 | $ | 100.00 | |||||||
| 2013 Oil Swaps |
5,081 | $ | 96.59 | — | ||||||||
| 2014 Oil Collars |
2,000 | $ | 85.55 | $ | 100.00 | |||||||
| 2014 Oil Swaps |
4,000 | $ | 94.56 | — | ||||||||
| C5 Natural Gasoline — |
Bbls/day | |||||||||||
| 2013 Swaps |
6,500 | $ | 2.13 | — | ||||||||
| C3 Propane — |
Bbls/day | |||||||||||
| 2013 Swaps |
5,000 | $ | 0.94 | — | ||||||||
The information in this release is unaudited. Audited and final results, including final fourth quarter 2012 product price realizations (including the impact of cash-settled hedges and derivative settlements) will be provided in our Annual Report on Form 10-K for the year ended December 31, 2012 currently planned to be filed with Securities and Exchange Commission by the end of February 2013.
RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading independent oil and natural gas producer with operations focused in Appalachia and the southwest region of the United States. The Company pursues an organic growth strategy targeting high return, low-cost projects within its large inventory of low risk, development drilling opportunities. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com and www.myrangeresources.com.
Except for historical information, statements made in this release such as expected increasing liquids production, expected high rates of return, expected future cash flow growth, expected future low cost structure, expected high-return drilling inventory and expected future 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 Range’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
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in the forward-looking statements, including, but not limited to, the volatility of oil and gas prices, the results of hedging transactions, 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. Range undertakes no obligation to publicly update or revise any forward-looking statements.
Further information on risks and uncertainties is available in Range’s filings with the Securities and Exchange Commission (“SEC”), which are incorporated by reference. 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 10-K by calling the SEC at 1-800-SEC-0330.
SOURCE: Range Resources Corporation
Investor Contacts:
Rodney Waller, Senior Vice President
817-869-4258
David Amend, Investor Relations Manager
817-869-4266
Laith Sando, Senior Financial Analyst
817-869-4267
Michael Freeman, Financial Analyst
817-869-4264
or
Media Contact:
Matt Pitzarella, Director of Corporate Communications
724-873-3224
www.rangeresources.com
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