Range Resources Corp. said Wednesday its production volumes in 4Q2012 hit a record 844 MMcfe/d, 35% higher year/year, which it attributed in large part to oil and natural gas liquids (NGL) growth in liquids-rich shale 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 was up 7% sequentially (see Shale Daily, Oct. 12, 2012). 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.

“This is a significant accomplishment for the entire Range team,” CEO Jeff Ventura said, adding that the increase in oil and NGL production “reflects the high-quality nature of our large drilling inventory and positions us very well in the current commodity price environment.

“We expect increasing liquids production, coupled with our strong hedge position, to drive substantial cash flow growth in 2013 and longer term, our high-return inventory and low-cost structure to continue to drive shareholder value.”

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).

Also for 2013, the company 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 Shale Daily, Dec. 13, 2012).