uploads///RRC Productions

Understanding Range Resources’ Production Volumes

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Range Resources’ production in 3Q15

For 3Q15, Range Resources’ (RRC) total production of ~1.45 Bcfe (billion cubic feet equivalent) per day is higher by ~20% when compared with its 3Q14 production level of ~1.21 Bcfe per day.

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RRC’s production trend

As seen in the above chart, RRC’s total quarter-over-quarter production volumes are increasing steadily since 2Q14 at an average rate of ~5% per quarter. In 3Q15, RRC’s total production is higher by ~73 MMcfe (million cubic feet equivalent) per day, or ~5.3% quarter-over-quarter. RRC attributed this quarter-over-quarter production increase to a higher production rate in the Marcellus Shale.

RRC’s production guidance

For 4Q15, Range Resources (RRC) expects total production of 1.42 Bcfe (billion cubic feet equivalent) per day, which is ~11% higher when compared with its 4Q14 production of ~1.28 Bcfe per day.

For 2015, Range Resources is expecting 20% year-over-year production growth. RRC is expecting 2015 production to come mainly from the Marcellus Shale. RRC is expected to bring 18 wells online in 4Q15, bringing 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.

Other upstream companies that are also active in Marcellus Shale and expecting strong production growth in natural gas volumes include Southwestern Energy (SWN), Consol Energy (CNX), and EQT Corporation (EQT). 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.

In the next part, we will look into RRC’s production mix and realized prices for 3Q15.

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