Range Resources (RRC) Update - April 27

[dan_s]

FORT WORTH, Texas, April 27, 2020 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (RRC) today announced that first quarter 2020 production averaged approximately 2,294 Mmcfe per day. Range continues to expect 2020 production to average approximately 2.3 Bcfe per day, including an expected exit rate of approximately 2.3 Bcfe per day.

Q1 production was slightly lower than my forecast of 2,316 Mmcfe per day, but their realized commodity prices were higher.
Realized prices:
> $2.29/mcf for natural gas compared to my forecast of $2.10.
> $52.20/bbl for oil compared to my forecast of $45.00 < Over 90% of Range's oil is now hedged at $58.40/bbl
> $15.91/bbl for NGLs compares to my forecast of $15.00.

As a result of the higher realized prices, Range's Q1 revenues (including cash settlements on their hedges) were $532.4 million compared to my forecast of $495.2 million.

Range’s first quarter 2020 realized NGL price, before hedges, was $14.87 per barrel. This represents a $1.30 per barrel premium to the Mont Belvieu-equivalent barrel, which is at the upper end of Range’s 2020 guidance of $0.50 to $1.50 per barrel premium. Range continues to see positive premiums to Mont Belvieu from NGL exports out of Marcus Hook, as lower international prices since the start of 2020 have been largely offset by lower freight rates. Additionally, some of Range’s long-term NGL marketing arrangements are structured to insulate Range from lower prices, including physical price floors within certain sales contracts. As a result, Range is reiterating its 2020 NGL premium differential guidance of $0.50 to $1.50 per barrel versus the Mont Belvieu-equivalent barrel. NGL prices have also significantly outperformed oil prices in recent weeks, leading to material improvements in pricing as a percent of WTI. Lastly, Range is reiterating its differential guidance for both natural gas and condensate. Additional detailed guidance updates will be provided with Range’s first quarter earnings release.