Range Resources posts $32.5M 1Q profit
Big production from more Marcellus gas wells helped Range Resources Corp. reverse its fortunes from a year ago and post $32.5 million in profit for the first three months of 2014.
The Fort Worth-based company said on Monday it reached a record in production during the January-March quarter with a 21 percent increase over the same period last year. Its biggest gains were in natural gas liquids and oil and condensate production.
“During the first quarter, we drilled our two highest rate wells ever in the Marcellus shale and Mississippian Chat plays, costs are continuing to decline, and two of our three major ethane projects became fully operational,” CEO Jeff Ventura said in a written statement.
Company officials plan to discuss the results on Tuesday morning.
Range reported $457 million in revenue for the quarter, a 43 percent increase from the $319 million it reported in the first quarter of 2013, when it posted a $75.6 million loss. That loss included $96.8 million in losses tied to hedging strategies in the commodities market and putting aside $35 million for a lawsuit.
The recent quarter's earnings resulted in profit of 20 cents per share and compared with a loss of 47 cents per share during the same period a year ago.
Range said it expects production to continue growing 20 to 25 percent year-over-year while it focuses on high-producing wells in the Marcellus and in the Midwest. Production from wells around Western Pennsylvania increased by 34 percent over the same period last year with 13 new wells.
The company has been able to ship ethane — a liquid extract from the gas — to customers in Canada and the Gulf Coast at a time of uncertainty for the liquid market. Tulsa-based Williams shelved its plan for a pipeline to the Gulf Coast because of a lack of commitments from producers.
Last week, partner MarkWest shut down two processing complexes in Washington County and West Virginia for scheduled maintenance of connections to several pipeline projects. Range said the project went smoothly and production restarted.
Also last week, Range received a citation from the state Department of Environmental Protection for allowing a leak from a fracking water impoundment to contaminate hundreds of tons of soil in Washington County. The company is removing and replacing soil contaminated with salts from drilling water while workers and the DEP try to determine a cause of the leak at the John Day facility in Amwell.
“We have to figure out how it was not discovered for quite a few months, considering the fact they have leak detection,” department spokesman John Poister said.
Inspectors don't know how much leaked or whether it tainted water supplies. It's to early to determine how much of a fine the company will receive, Poister said.
David Conti is a staff writer for Trib Total Media. He can be reached at 412-388-5802 or firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Overhaul possible for West Mifflin’s Century III Mall
- Chevron settles fatal shale well fire lawsuit, state claims for nearly $6M
- UPMC offering buyouts to 3,500 employees in cost-cutting move
- No end in sight for casino market saturation in northeastern U.S.
- Google adds HBO access, mobile payment to next version of Android
- Task force to plot ways of easing gas glut in Pennsylvania via pipelines
- IRS cybersecurity breach touches lives of homebuyers, others
- Weak first-quarter economic report anticipated
- Asian sell-off, Greece uncertainty rattle Wall Street
- Avago Technologies to pay $37 billion for chipmaker rival Broadcom
- Automakers do U-turn on infotainment systems