Energy Prospectus

2012 Highlights –
•Reports record annual production of 753 Mmcfe per day, an increase of 36% over 2011, with fourth quarter oil and NGL volumes increasing 41%
• Reports 29% increase in total proved reserves to 6.5 Tcfe, with oil and NGL reserves increasing 64%
• Drill bit reserve replacement of 773% at $0.86 per mcfe all-in finding and development cost
• Fourth quarter adjusted non-GAAP cash flow of $1.54 per share exceeds average First Call consensus estimates by 18 cents
• Fourth quarter adjusted non-GAAP earnings of $0.46 per share exceeds average First Call consensus estimates by 17 cents
• Unit costs continue to decline, highlighted by 32% reduction in lease operating costs compared to 2011
• Innovative marketing arrangements increased price realizations from propane exports
• Unrisked resource potential increases to 48 - 68 Tcfe, including 2.3 – 3.5 billion barrels of oil and NGLs
• Asset sale agreement recently executed for $275 million (Permian Basin assets to VNR, one of our favorite upstream MLPs)

I am working on the RRC model now but Fair Value is sure to go up on their big increase in proven liquids reserves and strong cash flow. RRC is the "Big Dog" in the Marcellus, so it stays in the Sweet 16. The improving outlook for natural gas is a big plus for this world class gasser. - Dan

“Looking ahead, 2013 should be even better than 2012. We expect to grow production in the 20% to 25% range utilizing our existing low-cost, high rate of return inventory. Range’s liquids production is expected to grow disproportionately greater than overall production in 2013 as we continue to focus the majority of our capital in our liquids-rich areas. With the continued ramp up in production volumes, we expect our cost structure to improve further as volumes grow faster than our absolute costs. Importantly, with our access to the growing global markets for NGLs through our innovative Mariner West and East projects we are increasing our price realizations and improving our profit margins. In addition to the Marcellus, our Horizontal Mississippian oil play is gaining substantial momentum and should add to our liquids production and reserves, while the Cline Shale, Wolfberry and Utica plays have exciting liquids potential. We are looking for 2013 to be a year of increasing production, reserves, cash flow and earnings which should translate into higher per share value for all Range shareholders.”

Range Resources (RRC): an updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab.

RRC is a rock solid growth company with 20% or more production growth locked in for many years to come. It is the major player in the Marcellus Shale. It gives your exposure excellent exposure to the improving natural gas market. Marcellus gas sells at a premium to NYMEX and RRC has a very good hedging program that protects downside commodity price risk.

It does trade at a healthy multiple but it should. RRC has HUGE potential reserves.