What Is Range Resources’ Production Guidance for 4Q15?



Range Resources’ production guidance

For 4Q15, Range Resources (RRC) expects total production of ~1.4 Bcfe (billion cubic feet equivalent) per day, which is ~11% higher when compared with 4Q14 production of ~1.3 Bcfe per day. Sequentially, RRC’s 4Q15 production guidance is lower by ~2% when compared with 3Q15.

For 4Q15, RRC is expecting ~26% liquids in its production mix. For 2015, RRC is expecting 20% year-over-year production growth. RRC is expecting 2015 production to come mainly from the Marcellus Shale. The company expected to bring 18 wells online in 4Q15, which would bring the total number of producing wells to 169 for 2015. RRC started 2015 with 15 rigs and plans to end the year with five rigs.

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Other upstream players

Other upstream companies like Occidental Petroleum (OXY) and EQT (EQT) have reported ~10% and ~13% year-over-year increases in their 4Q15 total production, respectively, whereas Murphy Oil (MUR) reported a ~23% year-over-year decrease in its 4Q15 total production. The SPDR S&P Oil and Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies.

RRC’s capex guidance

For 2015, RRC expects total capex of ~$870 million, which is ~42% lower when compared with 2014. RRC plans to direct its capital budget towards more dry gas drilling to maximize its expected rate of return.

RRC’s cost guidance

  • For 2015, RRC expects total production costs of $1.72 per Mcfe (thousand cubic feet equivalent), which is ~12% lower when compared with 2014.
  • For 2015, RRC expects LOE (lease operating expense) of $0.28 per Mcfe, which is ~20% lower when compared with 2014.

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