Range Resources reports year-over-year production loss

Aug. 16, 2021

Range Resources Corp. averaged daily production of 2.1 bcfe (31% liquids) in second-quarter 2021 compared to 2.3 bcfe in the same period a year ago as a result of the sale of its North Louisiana properties in third-quarter 2020 (OGJ Online, Aug. 3, 2020).

By area, southwest Marcellus production averaged 2.0 bcfed while the northeast Marcellus assets averaged 77 net MMcfd during the quarter.

Production for full-year 2021 is expected to average 2.15 bcfed, with about 30% attributed to liquids production.

During second-quarter 2021, the operator recognized a net loss of $156.5 million, compared to a net loss of $167.6 million during second-quarter 2020. The improvement includes higher realized prices, lower net operating costs, and a favorable divestiture contract obligation adjustment offset by reduced derivative fair value income due to higher commodity prices and higher deferred compensation expense.

For second-quarter 2021, Range experienced an increase in revenue from the sale of natural gas, NGLs, and oil due to a 75% increase in net realized prices somewhat offset by lower production volumes when compared to the same quarter of 2020.

Cash flow from operating activities in the quarter was $174.2 million, an increase of $95.4 million from second-quarter 2020. Second-quarter 2021 cash flow from operating activities included significantly higher realized prices and lower net operating costs..

All-in second quarter capital spending was $120 million, about 28% of the annual budget. Second-quarter 2021 drilling and completion expenditures were $115.7 million. Additionally, $4.5 million was invested on acreage leasehold, gathering systems, and other. Total capital expenditures year-to-date were $226 million at the end of the second quarter. Range remains on track to spend at or below the total capital budget of $425 million in 2021.

In April 2021, Range redeemed outstanding principal amounts of senior notes due in 2021 and 2022 totaling about $26.0 million and senior subordinated notes due in 2021, 2022, and 2023 totaling about $37.3 million.

As of June 30, 2021, Range had total debt outstanding of $3.1 billion, consisting of $121 million in bank debt and $2.95 billion in senior notes. The company has about $750 million in senior notes that mature through 2023, which are expected to be retired with projected free cash flow at current strip pricing. Range had over $1.9 billion of borrowing capacity under the bank credit facility commitment amount at the end of the second quarter.