Fort Worth-based Range Resources lost $41.8 million on revenues of $247 million in the year’s first quarter as several one-time write-downs more than offset gains from higher revenues and lower unit costs. After adjusting for unusual items, the largest being a $53 million non-cash charge against the value of its future hedges on oil and natural gas, Range earned $24.4 million, or 15 cents a share. That compared to an average 13 cents expected by investment analysts, who had steadily reduced their estimates as the quarter progressed. Range’s shares (ticker: RRC) rose 2.8 percent Wednesday to $60.16. The company released its earnings after the close of market, and its shares were up another 4 cents in after-hours trading.
Range sold its Barnett Shale operations in April 2011 and now has its largest presence in the Marcellus Shale in Pennsylvania and West Virginia, where it holds more than 1 million acres and gets about 70 percent of its production. Even with the sale of the Barnett holdings, Range showed higher production and revenues as it increasingly focuses on crude oil and natural gas liquids, which command much higher prices than natural gas. CEO Jeff Ventura said in a prepared statement that Range got 71 percent of its total production from areas that have oil or natural gas liquids, but natural gas still accounts for the bulk of its output. Range averaged the equivalent of 655.5 million cubic feet of gas a day for the quarter, including 512.5 million cubic feet of gas, 17,152 barrels of natural gas liquids and 6,682 barrels of oil. After settling its hedges, it averaged $5.19 per 1,000 cubic feet equivalent for the quarter, down 14 percent from a year earlier. Range got $4.01 per 1,000 cubic feet for gas, $46.20 a barrel for liquids and $83.54 for oil.
-- Jim Fuquay

