Range Resources (RRC) - Production

[dan_s]

We will publish an updated profile on RRC late this week.

For 1Q16, Range Resources (RRC) reported total production of ~1.38 Bcfe (billion cubic feet equivalent) per day. Memorial Resource Development (MRD) reported total production of ~0.42 Bcfe per day during the same quarter. This means that on a pro forma basis, Range Resources’ enlarged 1Q16 production will be ~1.80 Bcfe per day—an increase of ~29% compared to its 1Q16 production.

Pro forma production estimates for 2016
For 2016, Range Resources expected its total production to be 1.41–1.42 Bcfe per day. Memorial Resource Development was expecting its production to be 0.4–0.425 Bcfe per day. On a pro forma basis, Range Resources’ enlarged 2016 estimated production will be 1.81–1.85 Bcfe per day—a mid-point increase of ~29% compared to its stand alone 2016 estimated production. Memorial Resource Development has 100% hedge protection for its 2016 production.

Pro forma production mix
In 1Q16, Range Resources reported a production mix of ~67% natural gas, ~29% natural gas liquids, and only ~4% crude oil. Memorial Resource Development also reported a similar production mix for 1Q16. It contained ~73% natural gas, ~21% natural gas liquids, and only ~6% crude oil. This means on pro forma basis, Range Resources’ enlarged 1Q16 production mix will be ~69% natural gas, ~27% natural gas liquids, and only ~4% crude oil.

After the merger with Memorial Resources Development, Range Resources will remain as primarily a natural gas producer with substantial acreage positions in the Appalachia (Marcellus Shale-existing Range Resources) and northern Louisiana (existing Memorial Resource Development). Memorial Resource Development’s existing acreage location in Terryville, Louisiana, has the advantage of being near to the expanding Gulf Coast natural gas and natural gas liquids markets.