Oct 25, 2012 2 min read

Range Resources Corp. Wednesday reported a third-quarter loss of $53.8 million or 34 cents per share, compared to a net gain of $34.8. million or 21 cents per share for the third quarter of 2011. The Fort Worth, Texas-based oil and gas exploration company, which reported results following the close of Wednesday’s stock market, noted that the most recent quarter saw record high production, which was 47 percent higher than the prior-year quarter, a 12 percent decrease in unit costs, offset by a 24 percent decline in commodity prices. The company, which has its Southern Marcellus Shale operations headquartered in Southpointe, said its production during the third quarter averaged 790 million cubic feet per day, comprised of 623.3 Mmcf of natural gas, or 79 percent of total output; 20,040 barrels per day of natural gas liquids; and 7,748 barrels per day of oil. For the quarter, natural gas production grew by 52 percent, NGL production was up 30 percent, and crude oil output rose 36 percent over the prior-year quarter. However, realized prices, including all cash-settled derivatives, averaged $4.88 per thousand cubic feet, a 24 percent decrease over the prior-year quarter of $6.41 and a 3 percent increase as compared to the second quarter 2012 of $4.74 per mcfe. The average realized natural gas price was $3.88 per mcf, 27 percent lower than the prior-year quarter. NGL prices decreased 24 percent to $38.79 per barrel versus the prior-year quarter, while the average oil price was up 4 percent to $84.86 per barrel. Range said its reported natural gas, NGL and oil sale revenues for the quarter were $337 million, an increase of 11 percent as compared to the prior-year quarter. Total natural gas, NGL and oil sales of $355 million increased 12 percent compared to the prior year quarter due to higher volumes partially offsetting lower prices. The company said that during the third quarter, it continued to lower its cost structure, seeing a 13 percent decrease among its five largest cash-cost categories. During the third quarter, it drilled 24 wells in the super-rich area of the Marcellus Shale, 40 in its wet region, and four in the dry gas area. Range said it recently has signed agreements to sell non-core assets with estimated total sales proceeds of $170 million.