Production in 1Q16
For 1Q16, Range Resources (RRC) reported total production of 1.38 Bcfe (billion cubic feet equivalent) per day, which was above its 1Q16 production guidance of 1.35 Bcfe. Range Resources’ 1Q16 production is higher by ~4% than its 1Q15 production of ~1.33 Bcfe per day.
RRC’s total QoQ (quarter-over-quarter) production volumes have been increasing steadily since 2Q14 at an average rate of ~5.4% per quarter. But in 1Q16, Range Resources’ total QoQ production growth flattened out, whereas in 1Q16, RRC reported a ~4% sequential decline.
Notably, Range Resources’ 1Q16 production mainly came from the Marcellus Shale, where production averaged around 1.33 Bcfe per day. In 1Q16, the Southern Marcellus Shale Division produced ~1.1 Bcfe per day, which represents a 24% increase over 1Q15.
By comparison, for 1Q16, the Northern Marcellus Shale division produced ~0.23 Bcfe per day, an 8% decrease over 1Q15. Overall, Marcellus Shale contributed ~96% of Range Resources’ 1Q16 production.
Production guidance, competitors, and ETFs
For 2Q16, Range Resources expects a total production of ~1.41 Bcfe per day. For 2016, Range Resources expects total production in the range of 1.41 Bcfe–1.42 Bcfe per day.
Upstream companies Southwestern Energy (SWN), CONSOL Energy (CNX), Exco Resources (XCO), and Chesapeake Energy (CHK) also operate in the Marcellus Shale. Notably, the ISE-Revere Nat Gas Index Fund (FCG) invests in natural gas producers, whereas the Vanguard Energy ETF (VDE) invests into the broader energy market.
In the next part, we’ll look into Range Resources’ production mix and realized prices for 1Q16.