Range Resources Corp. last week said production volumes in 4Q2012 hit a record 844 MMcfe/d, 35% higher year/year, which came in large part to oil and natural gas liquids (NGL) growth in unconventional plays, presumably the Marcellus Shale and the Mississippian Lime.

The Fort Worth, TX-based company said oil and NGL production together increased 41% in the final quarter from a year earlier and rose 7% sequentially. Full-year production for 2012 averaged 753 MMcfe/d, a 36% increase from 2011. For the ninth consecutive year, Range said it realized double-digit production growth.

Although the company didn’t break down its 4Q2012 production by shale play, the Marcellus comprised the lion’s share of net production — 557 MMcfe/d — during 3Q2012. By comparison, net production in its Midcontinent division, which includes the Mississippian Lime, was 77 MMcfe/d in 3Q2012. The Southern Appalachian and Southwest divisions produced 80 and 51 MMcfe/d, respectively, during the third quarter.

Preliminary price realizations for natural gas, oil and NGLs — including hedges and derivatives — in 4Q2012 averaged $5.35/Mcfe, a 10% increase sequentially and 11% higher than in 4Q2011. Production and preliminary realized prices totaled 655 MMcf/d ($4.22/Mcf) for natural gas, 21,652 b/d ($43.56/bbl) for NGL and 9,863 b/d ($82.30/bbl) for crude oil.

The company also increased its hedge position during 4Q2012, with about 75% of the natural gas and crude oil it plans to produce hedged for 2013 at a weighted average floor price of $4.18/MMBtu and $94.36/bbl, respectively. Range said it has also hedged 11,500 bbl of NGL above current market prices.

According to Range, natural gas hedging in 2013 includes collars of 280,000 MMBtu/d (at an average floor price of $4.59/MMbBtu and an average cap price of $5.05/MMBtu), and swaps totaling 213,384 MMBtu/d ($3.65/MMBtu average floor price). Crude oil hedges in place this year total 3,000 b/d in collars ($90.60/bbl average floor price, $100/bbl cap price), and swaps of 5,081 b/d ($96.59 average floor price). Range also has hedged 6,500 b/d of C5 natural gasoline in swaps at an average floor price of $2.13/bbl, and 5,000 b/d of C3 propane at an average floor price of 94 cents/bbl.

Last month Range said it planned to spend most of its 2013 $1.3 billion capital budget, about 85%, on liquids-rich and oil projects, predominately in wet areas of the Marcellus and through horizontal drilling in the Mississippian Lime (see NGI, Dec. 17, 2012).

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