Fort Worth-based Range Resources earned $144 million on revenues of $673 million in the year's second quarter, the oil and gas producer said Wednesday. After adjusting for accounting impacts of hedging activities, asset sales and other non-operating items, Range earned $55 million, or 34 cents a share. That compared to Wall Street's consensus estimate of 32 cents for the quarter. The company's shares (ticker: RRC) were down slightly in after-hours trading after falling a little less than 1 percent in regular trading Wednesday. Among the unusual items was a $159.5 million gain on hedges, an $83.3 million gain on the sale of New Mexico properties on April 1, and a $53 million charge for lawsuit settlements.
Range said it averaged a record daily production equivalent to 910 million cubic feet of gas during the quarter, up 27 percent from a year earlier. It said it reduced its unit cost of production by 7 percent. After the effect of hedges, Range averaged $5.02 per 1,000 cubic feet equivalent on product sales.
CEO Jeff Ventura in a prepared statement said Range is looking at coming in at the high end of its production forecast for 2013. He noted that the company, which has focused on the Marcellus Shale in Pennsylvania and West Virginia, on July 21 began deliveries of Marcellus ethane to the Mariner West pipeline, which "will allow us to continue our planned growth without concern for pipeline quality requirements." Range also significantly boosted its estimated ultimate recovery (EUR) averages for its southwest Pennsylvania wells.
-- Jim Fuquay