Range Resources’s production guidance
For 3Q16, Range Resources (RRC) expects total production of 1.43 Bcfepd (billion cubic feet equivalent per day), which is ~1% lower than Range Resources’s production volumes in 3Q15. Sequentially, Range Resources’s production guidance is ~1% higher when compared with 2Q16.
For 3Q16, Range Resources (RRC) is expecting liquids percentage in its production mix to range from 32%–35%. For 2016, Range Resources expects total production to range from 1.41–1.42 Bcfepd, which is higher by 9%–10% when compared with 2015 on its pro forma Nora assets sale.
RRC expects its 2016 production to come mainly from the Marcellus Shale. Range Resources expects to run an average of three rigs throughout 2016.
Range Resources’s divestitures and acquisition
In 4Q15, RRC completed the Nora asset sale for cash proceeds of $865 million. In 2Q16, Range Resources closed its previously announced sale of assets located in central Oklahoma for $77.7 million. The proceeds from divestitures were used to reduce its debt.
In 3Q16, Range Resources closed its previously announced $4.4 billion merger with Memorial Resource Development (MRD). To learn more about the RRC-MRD merger, please read Analyzing the Range Resources-Memorial Resource Development Merger.
Range Resources’s capital expenditure guidance
For 3Q16, Wall Street analysts expect Range Resources (RRC) to spend ~$120 million in capital expenditure. In 2Q16, Range Resources spent ~$120 million in drilling capital to drill 28 wells, and it achieved a 100% success rate.
For 2016, RRC expects total capex of ~$495 million, which is ~45% lower when compared with 2015. The capital budget includes ~$470 million for drilling and recompletions, $20 million for leasehold and renewals, and $5 million for seismic, facilities, and other. RRC plans to direct its capital budget for more dry gas drilling to maximize expected rate of return.
Other upstream players
Southwestern Energy (SWN), CONSOL Energy (CNX), Exco Resources (XCO), and Chesapeake Energy (CHK) also operate in the Marcellus Shale. In 2Q16, Southwestern Energy reported production of ~225 Bcfe, which is a sequential decrease of ~5%. CONSOL Energy (CNX) reported production of ~99 Bcfe, which is a sequential increase of ~2%, in 2Q16.