A natural gas drilling rig contracted by Range Resources in Washington County. The large energy company announced its 2012 productions results today.
As the gas boom stemming from the Marcellus Shale continues, so do Range Resources’ profits, the large Texas-based oil company announced this afternoon. Range Resources has focused much of its resources on Pennsylvania’s shale hotbed, making them a staple in the development of the state’s shale gas and oil.
Range Resources saw its total fourth quarter oil and NGL volumes increase by 41 percent. The annual production of 753 Mmcfe per day showed a 36 percent increase over the previous year. Some of this can be attributed to declining lease operating costs which dropped by 32 percent compared to 2011.
“Range continued to make significant progress in the Marcellus Shale during 2012 as we continued to grow production and reserves and delineate our sizable acreage position while expanding our current and future marketing and transportation capabilities for natural gas and NGLs,” said the company in a statement issued earlier today.
During the fourth quarter, the Southern Marcellus Shale Division brought 30 horizontal wells online alone, taking advantage of the liquid-rich area of southwest Pennsylvania. An additional eight wells were drilled and cased in the northeast Marcellus during the fourth quarter. The company met its year-end production target of 600 Mmcfe per day.
Range Resources had a total of $1.5 billion in revenue for the year, marking an 18 percent increase over 2011.
Range Resources also signed two additional ethane transportation agreements, ATEX and Mariner East. The Mariner East pipeline will transport propane to the northeast U.S. for both domestic consumption and export to international markets and is slated to be finished in 2014. ATEX will export ethane to Canada starting mid-2013.
“Range had outstanding operational results for 2012. The Marcellus Shale play that Range discovered in 2004 became the largest producing field in the U.S. in 2012. Our million acre position in Pennsylvania provides for future growth with low reinvestment risk and strong rates of return,” said Jeff Ventura, President and CEO of Range Resources, in a statement.