FORT WORTH, Texas, Feb. 06, 2024 (GLOBE NEWSWIRE) — RANGE RESOURCES CORPORATION (NYSE: RRC) today announced year-end 2023 proved reserves of 18.1 Tcfe and SEC PV10 of $7.9 billion.
Commenting, Dennis Degner, the Company’s CEO said. “This year’s reserve report is consistent with last year’s report, reflecting the quality, scale and repeatability of Range’s asset base and continued positive performance revisions. Year-end 2023 reserves include approximately 3.1 million lateral feet from proved undeveloped locations that are part of our five-year plan. In addition to proved reserves, Range has approximately 25 million lateral feet of undeveloped high-quality Marcellus inventory, which is supported by continued strong performance of existing production. With our unmatched inventory depth, competitive full-cycle cost structure, and strong financial position we believe Range is very well-positioned to drive sustainable, long-term value and capital returns to shareholders for years to come.”
2023 Proved Reserves
Year-end 2023 proved reserves were 18.1 Tcfe, up slightly from last year. By volume, proved reserves were 64.1% natural gas, 34.5% natural gas liquids and 1.4% crude oil and condensate. Proved developed reserves represent 64% of the Company’s reserves.
Summary of Changes in Proved Reserves(in Bcfe) Balance at December 31, 2022 18,078 Extensions, discoveries and additions 207Performance revisions 611Price revisions (2)
Balance at December 31, 2023 18,113
During 2023, Range realized positive performance revisions of 611 Bcfe. This marked the 16th consecutive year of positive performance revisions driven by continued strong results from existing Marcellus producing wells. As shown in the table below, the present value (PV10) of proved reserves under SEC methodology was $7.9 billion at December 31, 2023. For comparison, the PV10 using December 31, 2023 strip prices equates to $11.7 billion using the same proved reserve volumes.
Average(b) Natural Gas Price ($/MMBtu)$2.62$3.57 WTI Oil Price ($/Bbl)$78.10$63.49 NGL Price ($/Bbl)$24.91$24.64 Proved Reserves PV10 ($ billions)$7.9$11.7
(a)SEC benchmark prices adjusted for energy content, quality and basis differentials were $2.20 per mcf and $68.32 per barrel of crude oil.(b)NYMEX 10-year strip prices adjusted for energy content, quality and basis differentials realized an average gas price differential of ($0.44) and an average realized oil differential of ($10.67) per barrel, which equate to $3.17 per mcf and $52.82 per barrel over the life of the reserves.
Year-end 2023 reserves included 6.6 Tcfe of proved undeveloped reserves from approximately 3.1 million lateral feet scheduled to be developed within the next five years with an expected development cost of $0.40 per mcfe. Future development costs included in the year-end 2023 reserve report utilized estimates consistent with 2024 expected drilling and completion costs. Beyond the five-year reserve calculation window, Range has approximately 25 million undrilled lateral feet of high-quality Marcellus and millions of undrilled lateral feet in the Utica and Upper Devonian horizons. Range also has a network of more than 250 existing well pads that provide the opportunity to develop future wells while utilizing existing roads, pads and infrastructure.
Non-GAAP Financial Measures
We believe that the presentation of PV10 is relevant and useful to our investors as supplemental disclosure to the standardized measure, or after-tax amount, because it presents the discounted future net cash flows attributable to our proved reserves before taking into account future corporate income taxes and our current tax structure. While the standardized measure is dependent on the unique tax situation of each company, PV10 is based on prices and discount factors that are consistent for all companies. Because of this, PV10 can be used within the industry and by creditors and security analysts to evaluate estimated net cash flows from proved reserves on a more comparable basis.
RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused in the Appalachian Basin. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com.
Included within this release are certain “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not limited to historical facts, but reflect Range’s current beliefs, expectations or intentions regarding future events. Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “outlook”, “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements.
All statements, except for statements of historical fact, made within this release regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as those regarding future well costs and productivity, future commodity fundamentals and pricing, anticipated drilling and completion activity, anticipated wells to be turned to sales and expected development costs, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management’s assumptions and Range’s future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements. Further information on risks and uncertainties is available in Range’s filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K. Unless required by law, Range undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.
The SEC permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions as well as the option to disclose probable and possible reserves. Range has elected not to disclose its probable and possible reserves in its filings with the SEC. Range uses certain broader terms such as “resource potential,” “unrisked resource potential,” “unproved resource potential” or “upside” or other descriptions of volumes of resources potentially recoverable through additional drilling or recovery techniques that may include probable and possible reserves as defined by the SEC’s guidelines. Range has not attempted to distinguish probable and possible reserves from these broader classifications. The SEC’s rules prohibit us from including in filings with the SEC these broader classifications of reserves. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of actually being realized. Unproved resource potential refers to Range’s internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques and have not been reviewed by independent engineers. Unproved resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System and does not include proved reserves. Area wide unproven resource potential has not been fully risked by Range’s management. “EUR”, or estimated ultimate recovery, refers to our management’s estimates of hydrocarbon quantities that may be recovered from a well completed as a producer in the area. These quantities may not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System or the SEC’s oil and natural gas disclosure rules. Actual quantities that may be recovered from Range’s interests could differ substantially. Factors affecting ultimate recovery include the scope of Range’s drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors. Estimates of resource potential may change significantly as development of our resource plays provides additional data.
In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price declines or drilling cost increases. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K on the SEC’s website at www.sec.gov or by calling the SEC at 1-800-SEC-0330.
SOURCE: Range Resources Corporation
Range Investor Contact:
Laith Sando, Vice President – Investor Relations
Range Media Contact:
Mark Windle, Director of Corporate Communications