RRC reports higher production

[dan_s]

2nd quarter production came in above my forecast by more than 5%. RRC is still heavily weighted to natural gas. I was hoping for more liquids production. I will update the forecast model and post it under the Sweet 16 Tab. RRC is in the Sweet 16 to give us max exposure to the Marcellus Shale. RRC has the best acreage in the play making them a prime takeover target. They are heavily weighted to natural gas. - Dan

FORT WORTH, Texas (AP) -- Independent oil and natural gas producer Range Resources Corp. said Thursday that natural gas, natural gas liquids and oil production rose 42 percent in the second quarter, while its average price fell.

Overall volumes averaged 719.3 million cubic feet equivalent net per day for the April-through-June quarter, based on the Fort Worth, Texas, energy company's preliminary data. That was 42 percent more than the year-ago quarter and 10 percent above the first quarter.

Production was 80 percent natural gas, 14 percent natural gas liquids and 6 percent crude oil.

Prices averaged $4.74 per 1,000 cubic feet equivalent, which compared with $6.43 per 1,000 cubic feet equivalent in the second quarter of 2011 and $5.19 per 1,000 cubic feet equivalent in the first quarter.

During the second half of the year, Range Resources expects oil and natural gas liquids production to increase because of a shift to drilling in liquids-rich projects. It also said it is on track to meet a 2012 growth target of 30 to 35 percent.