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Range Resources’ Production: Where Did It Come From?

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Nov. 20 2020, Updated 4:48 p.m. ET

Range Resources’ production in 4Q15

For 4Q15, Range Resources’ (RRC) total production of ~1.4 Bcfe (billions of cubic feet equivalent) per day was ~12% higher than the ~1.3 Bcfe per day from 4Q14. S&P 500 (SPY) upstream peers EQT Corporation (EQT), Occidental Petroleum (OXY), and Pioneer Natural Resources (PXD) have reported ~13%, ~10% and ~2% year-over-year increases in their 4Q15 total production, respectively.

Range Resources' Production: Where Did It Come From?

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RRC’s production trend

As seen in the above chart, RRC’s total quarter-over-quarter production volumes have been increasing steadily since 2Q14, at an average rate of ~5.4% per quarter. In 4Q15, RRC’s total production was ~10 MMcfe (million cubic feet equivalent) per day lower, or ~1% lower, quarter-over-quarter.

Range Resources’ 2015 production

For 2015, RRC reported a total production of ~1.4 Bcfe per day, which is ~21% higher than the 2014 production of ~1.2 Bcfe per day. RRC’s 2015 production growth mainly came from the Marcellus shale formation. Other upstream companies that are also active in the Marcellus shale formation and expecting strong production growth in natural gas volumes are Southwestern Energy (SWN), Consol Energy (CNX), and EQT Corporation (EQT). The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies.

RRC’s 1Q16 and 2016 production guidance

  • For 1Q16, RRC expects a total production of ~1.35 Bcfe per day.
  • For 2016, RRC expects a total production of 1.39–1.42 Bcfe per day.

In the next part, we’ll look into RRC’s production mix and realized prices for 4Q15.

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