Unconventional play-focused Range Resources Corp. charted record quarterly production in 4Q2010 with an average of 541 MMcfe/d, an 18% jump from the year-ago period and an 8% increase from the previous quarter, the company said.
The company said it has achieved 32 consecutive quarters of sequential production growth. Production for full-year 2010 averaged 495.3 MMcfe/d, a 14% increase over 2009 and representing the company's seventh consecutive year of double-digit production growth. Adjusting for asset sales, the 14% production growth in 2010 would have been 19%.
"Achieving our seventh year of quarter-over-quarter production growth is a remarkable milestone," said CEO John Pinkerton. "Most importantly, production per share, on a debt-adjusted basis, rose nearly 13% in 2010, representing our fifth consecutive year of per-share production growth."
Preliminary 4Q2010 oil and gas price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $5.33/Mcfe, representing a 19% decrease from the prior-year period but a 7% increase compared to 3Q2010. Production and realized prices by each commodity for the fourth quarter were:
For 2011 Range said it has hedged 408,200 MMBtu/d of anticipated gas production. The volumes are hedged at an average floor price of $5.56/MMBtu and an average cap price of $6.48/MMBtu, for which the company paid an average premium of 33 cents/MMBtu.
Much of Range's drilling inventory is in unconventional resource plays targeting shales, coalbed methane and tight gas sand reservoirs. The company has said it believes its four divisions -- Marcellus, Southwest, Appalachia and Midcontinent -- represent 24-31.7 Tcfe in unrisked resource potential, or up to 10 times its existing proved reserve base. Recently the company said it had doubled its production from the Marcellus Shale last year (see Shale Daily, Dec. 16, 2010).