Range Announces Third Quarter 2012 Results

  Range Announces Third Quarter 2012 Results

Business Wire

FORT WORTH, Texas -- October 24, 2012

RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its third quarter 2012
results. Third quarter results were driven by record high production, which
was 47% higher than the prior-year quarter, a 12% decrease in unit costs,
offset by a 24% decline in commodity prices. Reported natural gas, NGL and oil
revenues totaled $337 million, an 11% increase versus the prior year quarter.
Net cash provided from operating activities including changes in working
capital was $178 million, a 28% increase over the prior-year quarter. Reported
net loss for the third quarter was $53.8 million ($0.34 loss per diluted
share), versus net income of $34.8 million ($0.21 per diluted share) for the
third quarter of 2011. Earnings in the current quarter included a $58.4
million non-cash derivative mark-to-market reduction in value as compared to a
$55.0 million non-cash derivative mark-to-market increase in value in the
prior-year quarter.

Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was
$32.0 million ($0.20 per diluted share) versus $44.7 million ($0.28 per
diluted share) in the prior-year quarter. Cash flow from operations before
changes in working capital, a non-GAAP measure, decreased less than 1% from
the prior-year quarter to $189.2 million. Comparing these amounts to analysts’
average First Call consensus estimates, the Company’s earnings per share
($0.20 per diluted share) were three cents higher than the consensus of
analysts’ estimates of $0.17 per diluted share. Cash flow per share ($1.18 per
diluted share) for the quarter was also three cents higher than the consensus
analysts’ estimates of $1.15 per diluted share. See “Non-GAAP Financial
Measures” for a definition of each of these non-GAAP financial measures and
tables that reconcile each of these non-GAAP measures to their most directly
comparable GAAP financial measure.

Commenting on the announcement, Jeff Ventura, Range’s President and CEO, said,
“We accomplished much in the third quarter. Our record 47% production increase
coupled with the 12% reduction in unit costs reflects the high quality of our
asset base and exceptional operational performance by the entire Range team.
We continue to fine-tune our drilling and completion process in our core plays
seeing improved well performance and greater capital efficiency. Of particular
importance were two wells, each producing in excess of 1,000 barrels of
liquids per day – one in the super-rich Marcellus and one in the Horizontal
Mississippian oil play. Substantial progress was also made on the
infrastructure and marketing front, as we executed a historical agreement to
become the anchor shipper on the Mariner East project which will allow us to
store and sell propane and ethane along the east coast and to the
international markets. Our $190 million of non-core asset sales so far this
year reflects our long-standing strategy of high grading our assets and
protecting our financial position. With three quarters of the year behind us,
2012 is shaping up to being the 'inflection point' year we had anticipated.”

Financial Discussion –

(Except for generally accepted accounting principles (“GAAP”) reported
amounts, specific expense categories exclude non-cash impairments, unrealized
mark-to-market on derivatives, non-cash stock compensation and other items
shown separately on the attached tables. Effective with 2011 year-end
reporting, the Company reclassified third party transportation, gathering and
compression costs as a separate component of operating expenses which
previously was included as a reduction of natural gas, natural gas liquids and
oil sales. Prior reported results have been similarly reclassified to conform
to the current year presentation. We sold substantially all of our Barnett
Shale properties in April 2011. Under GAAP, activity in 2011 for our Barnett
Shale properties was reclassified as “Discontinued operations.” As a result,
production, revenue and expenses associated with these properties were removed
from continuing operations and reclassified as discontinued operations. In
this release, supplemental Statements of Operations are presented to reconcile
the changes to the prior-year periods for the reclassification of our Barnett
Shale properties to discontinued operations. These supplemental non-GAAP
tables present the reported GAAP amounts and the amounts that would have been
reported if the Barnett Shale operations were included in continuing
operations. All variances discussed in this release include the Barnett Shale
operations as continuing operations in all prior year periods. )

For the third quarter, production averaged 790 Mmcfe per day, comprised of
623.3 Mmcf per day of natural gas (79%), 20,040 barrels per day of natural gas
liquids (15%) and 7,748 barrels per day of oil (6%). Natural gas production
grew 52%, NGL production increased 30% and crude oil production rose 36% over
the prior-year quarter due to outstanding drilling results. Realized prices,
including all cash-settled derivatives, averaged $4.88 per mcfe, a 24%
decrease over the prior-year quarter of $6.41 and a 3% increase as compared to
the second quarter 2012 of $4.74 per mcfe. The average realized natural gas
price was $3.88 per mcf, 27% lower than the prior-year quarter. NGL prices
decreased 24% to $38.79 per barrel versus the prior-year quarter, while the
average oil price rose 4% to $84.86 per barrel.

Reported natural gas, NGL and oil sale revenues for the quarter were $337
million, an increase of 11% as compared to the prior-year quarter. Total
natural gas, NGL and oil sales of $355 million (including all cash settled
derivatives) increased 12% compared to the prior-year quarter due to higher
volumes partially offsetting lower prices. Cash settled hedging gains of $79
million were realized during the quarter. As of September 30, 2012, Range had
future hedging position value gains of approximately $145 million with
approximately 40% expected to be recognized in the fourth quarter of 2012, 56%
in 2013 and 4% in 2014, assuming prices remained the same.

During the third quarter of 2012, Range continued to lower its cost structure.
On a unit of production basis, the Company’s five largest cash-cost categories
decreased an average of 13% versus the prior-year quarter, even with the
Pennsylvania impact fee affecting only the current year quarter. Per unit cash
costs including non-cash DD&A declined 12% for the quarter compared to the
prior-year quarter. The unit cash cost declines in the third quarter were
lease operating unit expenses down 31%, production and ad valorem taxes down
18%, interest expense down 12% and general and administrative costs down 14%
while transportation, gathering and compression costs increased 5%. Gathering
and compression costs rose due to additional upfront facility construction
costs necessary for the planned increases in volumes in the Marcellus Shale.

Capital Expenditures –

Third quarter drilling expenditures of $400 million funded the drilling of 81
(74 net) wells and the completion of previously drilled wells. A 100% drilling
success rate was achieved. Year-to-date drilling expenditures for 2012 totaled
$1.1 billion. For the first nine months of 2012, Range has drilled 234 (200
net) wells. At September 30, 172 (155 net) wells drilled during the year had
been placed on production. The remaining 62 (45 net) wells are in various
stages of completion or waiting on pipeline connection. In addition, during
the first nine months of 2012, $174 million was expended on acreage, $33
million on gas gathering systems and $49 million for exploration expense
(including $27 million for seismic and $11 million for delay rentals). The
Company is on plan with its capital expenditure budget for 2012 of $1.6
billion. In the plan, capital spending was heavily weighted to the first half
of the year.

Asset Sales –

Recently, Range has signed agreements to sell assets with estimated total
sales proceeds of approximately $170 million. In the first half of the year,
Range sold an additional $20 million of assets or $190 million to date. These
assets consist primarily of our Ardmore Basin Woodford properties, scattered
miscellaneous Marcellus acreage and other non-core assets. These recent
transactions are expected to close during the fourth quarter and are subject
to customary closing conditions and purchase price adjustments. The Ardmore
Woodford properties are comprised of 9,341 net acres located in southern
Oklahoma. Net production from the properties is approximately 12 Mmcfe per day
which includes approximately 1,000 barrels per day of liquids.

Hedging Status –

Range hedges portions of its expected future production volumes to increase
the predictability of its cash flow and to help maintain a strong, flexible
financial position. At September 30, 2012, Range had approximately 85% of its
expected fourth quarter 2012 natural gas production hedged at a weighted
average floor price of $4.17 per mcf. Similarly, Range has hedged or committed
for the fourth quarter 2012 approximately 80% of its projected crude oil
production at a floor price of $90.82 and approximately 60% of its composite
NGL production at above current market prices. Please see Range’s detailed
hedging schedule posted at the end of the financial tables below and on its
website at http://www.rangeresources.com.

Operational Discussion –

Southern Marcellus Shale Division-

During the third quarter, the division brought online 68 horizontal wells in
southwest Pennsylvania, with 24 wells in the super-rich area, 40 wells in the
wet area and four wells in the dry area utilizing generally five rigs. The
initial 24-hour production rates of the new 68 wells averaged 5.3 Mmcf per day
of gas and 412 barrels per day of liquids (160 barrels of condensate and 252
barrels of NGLs), or 7.8 (6.4 net) Mmcfe per day. The majority of these wells
are producing under constrained conditions since the facilities are designed
for cost efficiencies and are intentionally designed not to cover the initial
peak production rates of the wells. The initial 24-hour production rates by
area are:

                             Gas          Condensate       NGL         Total
Area          # of                                      Liquids
                 Wells       Mmcf/d       bbl/d            bbl/d
                                                                       bbl/d
Super-Rich    24       3.1       289           263      552
Wet           40       6.0       99            270      369
Dry           4        11.0                           

In the southwest Marcellus, the Company drilled and cased 25 wells in the
third quarter as compared to 39 wells drilled and cased in the second quarter.
Sixty-eight wells were turned to sales in the third quarter which was more
than double the 33 wells turned to sales in the second quarter. The Company’s
backlog of 106 uncompleted wells and wells waiting on pipeline connection at
the end of the second quarter in southwest Marcellus declined to 63 wells at
the end of the third quarter. At September 30, 2012, there were 36 wells
waiting on completion and 27 wells waiting on pipeline tie-ins to sales. The
division expects to utilize six rigs in the fourth quarter 2012.

In the super-rich area, we had a significant step-out well from our core area
that tested at 1,044 barrels per day of liquids (267 barrels of condensate and
777 barrels of NGLs) and 10.3 Mmcf per day of gas, or 16.5 (14.0 net) Mmcfe
per day. With ethane recovery, the well would have tested at 2,053 barrels per
day of liquids (267 barrels of condensate and 1,786 barrels of NGLs) and 8.7
Mmcf per day of gas, or 21.1 (17.9 net) Mmcfe per day. The lateral length on
this test was 3,797 feet and was completed using a 20-stage reduced cluster
spacing (“RCS”) completion. We expect to bring this well online in late 2013
or early 2014 and drill additional wells in the area starting in 2013. Range’s
second Upper Devonian super-rich well continued to clean-up following our
August announcement and ultimately had a peak 24-hour rate of 552 barrels per
day of liquids (172 barrels of condensate and 380 barrels of NGLs) and 4.7
Mmcf per day of gas, or 8.0 (6.8 net) Mmcfe per day. With ethane recovery, the
well would have tested at 998 barrels per day of liquids (172 barrels of
condensate and 826 barrels of NGLs) and 4.0 Mmcf per day of gas, or 10.0 (8.5
net) Mmcfe per day.

Northern Marcellus Shale Division-

In the northeast Marcellus, Range drilled and cased 13 wells in the third
quarter as compared to 22 wells in second quarter while running five rigs. We
expect to exit the year at one rig and plan to have one rig running most of
next year to maintain the continuous drilling commitments under the leases.
Sixteen wells were turned to sales in the third quarter which was the same as
the second quarter. The Company’s backlog of 35 uncompleted and wells waiting
on pipeline connection at the end of the second quarter in the northeast
Marcellus declined to 31 wells at the end of the third quarter. At September
30, 2012 there were 12 wells waiting on pipeline and 19 wells waiting on
completion.

Significant production results included three wells with initial 24-hour rates
of 17.9 (15.3 net) Mmcf per day, 11.3 (9.7 net) Mmcf per day and 9.9 (8.5 net)
Mmcf per day. The average lateral length for these three wells was 4,100 feet
with an average of 14 frac stages per well.

The third phase of the Lycoming 30-inch trunkline and associated gathering
system began late in the second quarter and is scheduled to be ready for sales
in fourth quarter 2012. The trunkline will provide 350 Mmcf per day of
capacity, net to Range, flowing into the Transco system moving gas into and
out of the Leidy storage complex. Range expects to tie-in an additional 18
wells by year-end 2012 in Lycoming County.

In addition to Marcellus drilling, the division drilled and successfully
completed the industry’s first wet Utica test in northwestern Pennsylvania
where the Company has 190,000 net acres of leasehold. The well is currently
shut in waiting testing. A second wet Utica test is scheduled to spud in the
fourth quarter.

In the Bradford County participating area with Talisman, there were a total of
15 (2.8 net) wells producing, 12 (2.3 net) wells waiting on completion and 24
(4.5 net) wells waiting on pipeline.

Marcellus Shale Infrastructure-

Mariner East

As the anchor shipper under the 15-year Mariner East Project, Range has firm
transportation of 40,000 barrels per day (20,000 barrels of ethane and 20,000
barrels of propane) of liquids transport from the MarkWest Houston processing
plant to the Sunoco Marcus Hook terminal and dock facilities. Under the
agreements, Range has access to a very significant pro rata share of the 1
million barrels of propane storage at the facility and could utilize its full
capacity commitment for propane deliveries until the ethane facilities are in
place. The Mariner East Project is expected to commence pipeline deliveries of
propane in the second half of 2014. Ethane deliveries are forecasted to start
in the first half of 2015 after additional ethane facilities are constructed
at Marcus Hook. In the interim, MarkWest is transporting on behalf of Range a
portion of its propane sourced from the Houston plant to the Marcus Hook
facilities by rail for sales to domestic and international customers.

Ethane Contracts

Range also executed a 15-year ethane sales agreement with INEOS Europe AG for
delivery at Sunoco’s Marcus Hook dock facilities. The agreement is effective
upon FERC formal approval of the Mariner East Project. INEOS is a global
manufacturer of petrochemicals, specialty chemicals and oil products and
currently plans to utilize its own ship fleet to take delivery of the ethane
at the Marcus Hook dock facilities. Contracted sales volumes will start at
10,000 barrels per day in the first half of 2015 and increase over time to
20,000 barrels per day.

Range’s three liquids transportation (Mariner East, Mariner West and ATEX) and
sales agreements are expected to provide the Company substantial operational
and marketing flexibility. If the full contractual volumes under these three
contracts were currently being delivered using current prices with a portion
of its propane being exported, Range estimates these projects would add $0.35
to $0.45 per mcf of incremental value in the liquids-rich area.

Range expects these agreements will provide long-term assurance of meeting
pipeline gas quality standards by removing ethane from the gas stream and
allowing for potential increased development in the liquids-rich, stacked pay
area of southwest Pennsylvania. With minimum ethane extraction to meet
pipeline quality specifications, Range estimates that it has the potential to
grow its Marcellus natural gas production, solely from the liquids-rich area
in southwest Pennsylvania, to approximately 1.8 Bcf per day. With typical
ethane extraction, the Company estimates that these contracts would require
approximately 800 Mmcf per day inlet gross production by 2016. Currently,
Range estimates the Company would be capable of producing approximately 24,000
barrels per day of ethane and 10,000 barrels per day of propane under normal
recovery. Having multiple transportation and marketing outlets, including
international export, combined with the ethane and propane storage is expected
to increase Range’s flexibility and reduce future development risk.

Midcontinent Division-

Midcontinent operations for the third quarter focused on infrastructure
buildout and commencement of pad drilling operations in the Horizontal
Mississippian oil play. Six wells were completed and turned to sales with the
majority of the activity during the quarter focused on drilling and completion
of salt water disposal facilities. Current plans are to begin 2013 with a five
rig drilling program.

Of the six Horizontal Mississippian wells placed on production late in the
third quarter, the 24-hour peak rate to sales averaged 445 (312 net) boe per
day (254 barrels oil, 111 barrels NGLs and 475 mcf gas). The wells came on
production late in the quarter and many have not yet reached 30-days of
production with volumes continuing to show improvement with time. Of the six
wells, the lateral lengths averaged 3,700 feet with 17 to 20 frac stages.
Range has increased its acreage position in the play to approximately 156,000
net acres.

During the third quarter, Range brought on the Nancy Ann #1-1S at a peak
24-hour rate to sales of 1,227 (742 net) barrels of oil equivalent per day
(834 barrels of oil, 230 barrels NGLs, and 980 mcf gas). This represents the
second Range Horizontal Mississippian well to exceed 1,000 barrels of oil
equivalent per day. The lateral length on the well totaled 3,985 feet with a
20 stage frac. Range owns a 74.9% working interest. Range’s Balder #1-30N
which was turned to sales in the second quarter of 2012 has achieved a 90-day
average of 1,049 (724 net) barrels of oil equivalent per day (479 barrels of
oil, 333 barrels of NGLs, and 1,421 mcf of gas). The Nancy Ann and Balder
wells are approximately eight miles apart, being on the western and eastern
sides of the Nehama Ridge, helping to de-risk the Nehama Ridge in this area.

One additional St. Louis well commenced production late in the third quarter
at 11.2 (6.7 net) Mmcfe per day (8.0 mcf gas, 213 barrels oil, and 323 barrels
NGLs). Range has an 85% working interest and 60% net revenue interest in the
well. Two to three additional St. Louis wells are scheduled to be drilled in
the fourth quarter.

Permian Division-

Range completed its third Wolfberry well with an initial 24-hour production
rate to sales of 505 boe per day (243 barrels of oil, 126 barrels NGLs, and
814 mcf gas) or 397 boe per day net. This is substantially better than Range’s
first two Wolfberry wells which are projected to recover 216 Mboe (EUR) each.
The cost to drill and complete the third well was $2.5 million, a substantial
reduction versus the first two wells. Range also drilled, completed and is
testing its third Cline Shale horizontal well. The well is located on the far
eastern side of Range’s acre block at Conger. This well is approximately 12
miles east of Range’s first Cline Shale horizontal well, which is projected to
recover 360 Mboe. Range plans to drill and complete three additional Wolfberry
wells at Conger in the fourth quarter in addition to recompleting an existing
Strawn producer.

Southern Appalachia Division-

The Southern Appalachia Division continued development of multi-pay horizons
on its 350,000 (235,000 net) acre position in Virginia during the third
quarter. The division had one drillingrig and two completion rigs running in
the quarter and drilled 12 (12 net) tight gas sand wells. The division turned
online 21 (21 net) wellsincluding 17 (17 net) tight gas sand, and 4 (4 net)
horizontal Huron wells. Initial production results of the horizontal Huron
wells indicate that the 2012 wells are the best to date while at the same time
continuing to achieve significant cost reductions. Despite spending only $27
million in capital to date, (down approximately 50% versus last year), the
division’s production rate for the first nine months of 2012 is up 4% compared
to the production rate for 2011.

Guidance – Fourth Quarter 2012

Production per day Guidance:

Production growth for 2012 is targeted at 35% year-over-year, the high-end of
our previous full-year guidance. Our original guidance included the Ardmore
Woodford properties for the entire year. Due to sale of these properties,
coupled with curtailed production in portions of the wet and super-rich
Marcellus due to bottlenecks and equipment limitations in the gathering
systems which we expect to continue during the fourth quarter, we are revising
our fourth quarter liquids growth as compared to the fourth quarter of 2011 to
33% to 36% versus our previous guidance of 40%.

Expense per mcfe Guidance:

Direct operating expense:                              $0.43 - $0.45 per mcfe
Transportation, gathering and compression expense       $0.75 - $0.79 per mcfe
(a):
Production tax expense (b):                             $0.15 per mcfe
Exploration expense:                                    $19 million
Unproved property impairment expense:                   $19 - $21 million
G&A expense:                                            $0.44 - $0.46 per mcfe
Interest expense:                                       $0.59 - $0.60 per mcfe
DD&A expense:                                           $1.65 - $1.68 per mcfe

(a) Prior to year-end 2011 this expense was netted against revenue. Please
refer to Table 6 of the 3Q 2012 Supplement Tables for historical detail of
this expense by product.

(b) Production tax expense in fourth quarter should equal approximately $0.08
per mcfe plus an estimated $5 million for the Pennsylvania impact fee. Total
production tax expense including the impact fee is expected to be $0.15 per
mcfe.

Differential Pricing History (c)

                      3Q 2011   4Q 2011   1Q 2012   2Q 2012   3Q 2012
Natural Gas            $ 0.26     $ 0.07     ($0.02 )   ($0.13 )   ($0.03 )
NGL (% of WTI NYMEX)     54   %     54   %   48     %   39     %   33     %
Oil (% of WTI NYMEX)     91   %     92   %   88     %   91     %   90     %

(c) Differentials based on pre-hedge pricing, excluding transportation,
gathering and compression expense.

Conference Call Information –

The Company will host a conference call on Thursday, October 25 at 12:00 p.m.
ET. To participate in the call, please dial 877-407-0778 and ask for the Range
Resources third quarter 2012 earnings conference call. A replay of the call
will be available through November 30, 2012. To access the phone replay dial
877-660-6853. The conference ID is 401263. Additional financial and
statistical information about the period not included in this release but
discussed on the conference call will be available on our home page at
http://www.rangeresources.com.

A simultaneous webcast of the call may be accessed over the internet at
http://www.rangeresources.com or http://www.vcall.com. The webcast will be
archived for replay on the Company's website until November 30, 2012.

Non-GAAP Financial Measures and Supplemental Tables –

Adjusted net income comparable to analysts’ estimates as used in this release
represents income from continuing operations before income taxes adjusted for
certain items (detailed below and in the accompanying table) less income
taxes. We believe adjusted net income comparable to analysts’ estimates is
calculated on the same basis as analysts’ estimates and that many investors
use this published research in making investment decisions useful in
evaluating operational trends of the Company and its performance relative to
other oil and gas producing companies. Adjusted diluted earnings per share as
set forth in this release represents adjusted net income comparable to
analysts’ estimates on a diluted per share basis. A table is included which
reconciles income or loss from continuing operations to adjusted net income
comparable to analysts’ estimates and adjusted diluted earnings per share. On
its website, the Company provides additional comparative information on prior
periods.

Third quarter 2012 earnings included a reduction in value of $58 million for
the non-cash unrealized mark-to-market decrease in value of the Company’s
commodity derivatives, a $20 million expense associated with the deferred
compensation plan for the increase in the Company’s common stock during the
period, a non-cash stock compensation expense of $12 million, a non-cash
unproved property impairment expense of $40 million, a $1 million expense in
connection with certain litigation, a $1 million impairment on surface acreage
and $1 million gain on sale of certain properties. Excluding these items, net
income would have been $32 million or $0.20 per diluted share. Excluding
similar non-cash items from the prior-year quarter, net income would have been
$45 million or $0.28 per diluted share. By excluding these non-cash items from
our reported earnings, we believe we present our earnings in a manner
consistent with the presentation used by analysts in their projection of the
Company’s earnings. (See the reconciliation of non-GAAP earnings to GAAP
earnings in the accompanying table.)

“Cash flow from operations before changes in working capital” as used in this
release represents net cash provided by operations before changes in working
capital and exploration expense adjusted for certain non-cash compensation
items. Cash flow from operations before changes in working capital is widely
accepted by the investment community as a financial indicator of an oil and
gas company’s ability to generate cash to internally fund exploration and
development activities and to service debt. Cash flow from operations before
changes in working capital is also useful because it is widely used by
professional research analysts in valuing, comparing, rating and providing
investment recommendations of companies in the oil and gas exploration and
production industry. In turn, many investors use this published research in
making investment decisions. Cash flow from operations before changes in
working capital is not a measure of financial performance under GAAP and
should not be considered as an alternative to “Cash flows from operating,
investing, or financing activities” as an indicator of cash flows, or as a
measure of liquidity. A table is included which reconciles “Net cash provided
from operating activities” to “Cash flow from operations before changes in
working capital” as used in this release. On its website, the Company provides
additional comparative information on prior periods for cash flow, cash
margins and non-GAAP earnings as used in this release.

The cash prices realized for natural gas, NGLs and oil production including
the amounts realized on cash-settled derivatives is a critical component in
the Company’s performance tracked by investors and professional research
analysts in valuing, comparing, rating and providing investment
recommendations and forecasts of companies in the oil and gas exploration and
production industry. In turn, many investors use this published research in
making investment decisions. Due to the GAAP disclosures of various hedging
and derivative transactions and transportation, gathering and compression
costs, such information is now reported in various lines of the Statements of
Operations. The Company believes that it is important to furnish a table
reflecting the details of the various components of each line in the
Statements of Operations to better inform the reader of the details of each
amount and provide a summary of the realized cash-settled amounts which
historically were reported as natural gas, NGLs and oil sales. This
information will serve to bridge the gap between various readers’
understanding and fully disclose the information needed.

The Company discloses in this release the detailed components of many of the
single line items shown in the GAAP financial statements included in the
Company’s Quarterly Report on Form 10-Q. The Company believes that it is
important to furnish this detail of the various components comprising each
line of the Statements of Operations to better inform the reader of the
details of each amount, the changes between periods and the effect on its
financial results.

Hedging and Derivatives –

In this release, Range has reclassified within total revenues its reporting of
the cash settlement of its commodity derivatives. Under this presentation
those hedges considered “effective” under ASC 815 are included in “Natural
gas, NGLs and oil sales” when settled. For those hedges designated to regions
where the historical correlation between NYMEX and regional prices is
“non-highly effective” or there is “volumetric ineffectiveness” due to the
sale of the underlying reserves, they are deemed to be “derivatives” and the
cash settlements are included in a separate line item shown as “Derivative
fair value (loss) income” in the Company’s Form 10-Q along with the change in
mark-to-market valuations of such unrealized derivatives. The Company has
provided additional information regarding natural gas, NGLs and oil sales in a
supplemental table included with this release which would correspond to
amounts shown by analysts for natural gas, NGLs and oil sales realized,
including all cash-settled derivatives.

RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading independent oil and
natural gas producer with operations focused in Appalachia and the southwest
region of the United States. The Company pursues an organic growth strategy
targeting high return, low-cost projects within its large inventory of low
risk, development drilling opportunities. The Company is headquartered in Fort
Worth, Texas. More information about Range can be found at
http://www.rangeresources.com/ and http://www.myrangeresources.com/.

Except for historical information, statements made in this release such as
expected improvement in well performance, expected greater capital efficiency,
protecting our financial position, the expected continued reduction in units
costs, expected timing and amounts of proceeds from asset sales, expected
addition of future value for shareholders, expected amount of future capital
spending, expected timing, methods utilized and number of rigs related to
drilling operations, expected timing of infrastructure improvements and future
production and unit cost guidance information are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. 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, including, but not
limited to, the volatility of oil and gas prices, the results of hedging
transactions, the costs and results of drilling and operations, the timing of
production, mechanical and other inherent risks associated with oil and gas
production, weather, the availability of drilling equipment, changes in
interest rates, litigation, uncertainties about reserve estimates and
environmental risks. Range undertakes no obligation to publicly update or
revise any forward-looking statements.

Estimated ultimate recovery, or “EUR,” refers to our management’s internal
estimates of per well hydrocarbon quantities that may be potentially recovered
from a hypothetical future well completed as a producer in the area. These
quantities do 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. Our management
estimated these ultimate recoveries based on our previous operating experience
in the given area and publicly available information relating to the
operations of producers who are conducting operating in these areas. Actual
quantities that may be ultimately recovered from Range's interests may 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 ultimate recoveries 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.

Further information on risks and uncertainties is available in Range’s filings
with the Securities and Exchange Commission (“SEC”), which are incorporated by
reference. 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 by calling
the SEC at 1-800-SEC-0330.

                                                                                
RANGE RESOURCES CORPORATION
                                                                                       
STATEMENTS OF
OPERATIONS
Based on GAAP
reported earnings
with additional
details of items
included in each
line in Form 10-Q
(Unaudited, in
thousands, except   Three Months Ended September 30,     Nine Months Ended September 30,
per share data)
                    2012        2011                 2012          2011    
Revenues and
other income:
  Natural gas,
  NGLs and oil      $ 337,040     $ 304,230              $ 953,006       $ 841,546
  sales (a)
  Derivative cash
  settlements         17,625        10,742                 21,994          8,342
  gain (loss) (a)
  (b)
  Change in
  mark-to-market
  on unrealized       (53,646 )     58,990
  derivatives
  gain (loss) (b)                                          30,075          67,093
  Ineffective
  hedging (loss)      (4,707  )     (3,971  )              (5,061    )     2,531
  gain (b)
  Gain (loss) on
  sale of             949           203                    (12,704   )     (1,280  )
  properties
  Equity method       (1,012  )     (640    )              (195      )     (1,399  )
  investment (c)
  Transportation
  and gathering       (986    )     1,191                  (1,997    )     1,195
  (c)
  Transportation
  and gathering –
  non-cash stock      (452    )     (375    )
  -based
  compensation                                             (1,313    )     (1,107  )
  (c) (d)
  Other (c)          82          266                  421           1,668   
  Total revenues
  and other          294,893     370,636    -20  %    984,226       918,589    7    %
  income
Costs and
expenses:
  Direct              29,030        29,365                 84,044          85,638
  operating
  Direct
  operating –
  non-cash stock      598           463                    1,647           1,416
  compensation
  (d)
  Transportation,
  gathering and       51,600        32,431                 137,164         86,179
  compression
  Production and
  ad valorem          8,819         7,317                  32,532          21,746
  taxes
  Pennsylvania
  impact fee -        -             -                      24,707          -
  prior year
  Exploration         13,626        16,704                 48,737          53,217
  Exploration –
  non-cash stock      1,126         902                    3,048           3,168
  compensation
  (d)
  Abandonment and
  impairment of       40,118        16,627                 104,048         52,064
  unproved
  properties
  General and         33,333        26,398                 93,953          80,814
  administrative
  General and
  administrative
  – non-cash          10,057        8,491
  stock
  compensation                                             30,755          27,488
  (d)
  General and
  administrative      1,107         168                    2,523           238
  – lawsuit
  settlements
  General and
  administrative      -             850                    -               446
  – bad debt
  expense
  Deferred
  compensation        20,052        8,717                  21,555          33,569
  plan (e)
  Interest            43,997        34,181                 124,090         90,343
  expense
  Loss on early
  extinguishment      -             (4      )              -               18,576
  of debt
  Depletion,
  depreciation        123,059       93,619                 332,012         244,129
  and
  amortization
  Impairment of
  proved             1,281       38,681               1,281         38,681  
  properties
  Total costs and    377,803     314,910    20   %    1,042,096     837,712    24   %
  expenses
                                                                                       
Income (loss)
from continuing       (82,910 )     55,726      -249 %     (57,870   )     80,877      -172 %
operations before
income taxes
                                                                                       
Income tax
expense:
  Current             -             (7      )              -               1
  Deferred           (29,074 )    22,547               (17,910   )    35,345  
                     (29,074 )    22,540               (17,910   )    35,346  
                                                                                       
Income from
continuing            (53,836 )     33,186      -262 %     (39,960   )     45,531      -188 %
operations
                                                                                       
Discontinued
operations, net      -           1,569                -             15,484  
of tax
                                                                                       
Net income (loss)   $ (53,836 )   $ 34,755     -255 %   $ (39,960   )   $ 61,015     -165 %
                                                                                       
Income Per Common
Share:
                                                                                       
Basic-Income
(loss) from         $ (0.34   )   $ 0.21                 $ (0.25     )   $ 0.28
continuing
operations
  Discontinued       -           0.01                 -             0.10    
  operations
  Net income        $ (0.34   )   $ 0.22       -255 %   $ (0.25     )   $ 0.38       -166 %
  (loss)
                                                                                       
Diluted-Income
(loss) from         $ (0.34   )   $ 0.20                 $ (0.25     )   $ 0.28
continuing
operations
  Discontinued       -           0.01                 -             0.10    
  operations
  Net income        $ (0.34   )   $ 0.21       -262 %   $ (0.25     )   $ 0.38       -166 %
  (loss)
                                                                                       
Weighted average
common shares
outstanding, as
reported:
  Basic               159,563       158,154     1    %     159,297         157,901     1    %
  Diluted             159,563       159,322     0    %     159,297         158,939     0    %

(a) See separate natural gas, NGLs and oil sales information table.
(b) Included in Derivative fair value (loss) income in the 10-Q.
(c) Included in Other revenues in the 10-Q.
(d) Costs associated with stock compensation and restricted stock
amortization, which have been reflected in the categories associated with the
direct personnel costs, which are combined with the cash costs in the 10-Q.
(e) Reflects the change in market value of the vested Company stock held in
the deferred compensation plan.

                                                                                      
RANGE RESOURCES CORPORATION
                                                                                             
STATEMENTS OF
OPERATIONS
Restated for
Barnett
discontinued
operations,
  a non-GAAP        Three Months Ended September 30, 2012      Three Months Ended September 30, 2011
   presentation
   (Unaudited, in                  Barnett        Including                   Barnett        Including
   thousands,        As            Discontinued   Barnett       As            Discontinued   Barnett
   except per        reported     Operations    Ops           reported     Operations    Ops
   share data)
Revenues and other
income:
   Natural gas,
   NGLs and oil      $ 337,040     -              $ 337,040     $ 304,230     $  1,673       $ 305,903
   sales
   Derivative cash
   settlements         17,625      -                17,625        10,742         -             10,742
   gain (loss)
   Change in
   mark-to-market
   on unrealized       (53,646 )   -                (53,646 )     58,990         -             58,990
   derivatives

   gain (loss)
   Ineffective
   hedging gain        (4,707  )   -                (4,707  )     (3,971  )      -             (3,971  )
   (loss)
   Gain (loss) on
   sale of             949         -                949           203            1,032         1,235
   properties
   Equity method       (1,012  )   -                (1,012  )     (640    )      -             (640    )
   investment
   Transportation      (986    )   -                (986    )     1,191          -             1,191
   and gathering
   Transportation
   and gathering –
   non-cash            (452    )   -                (452    )     (375    )      -             (375    )
   stock-based

   compensation
   Interest and       82        -              82          266         -          266     
   other
                      294,893   -              294,893     370,636     2,705      373,341 
Costs and
expenses:
   Direct              29,030      -                29,030        29,365         (611    )     28,754
   operating
   Direct
   operating –
   non-cash            598         -                598           463            -             463
   stock-based
   compensation
   Transportation,
   gathering and       51,600      -                51,600        32,431         950           33,381
   compression
   Production and
   ad valorem          8,819       -                8,819         7,317          (44     )     7,273
   taxes
   Pennsylvania
   impact fee –        -           -                -             -              -             -
   prior year
   Exploration         13,626      -                13,626        16,704         -             16,704
   Exploration –
   non-cash            1,126       -                1,126         902            -             902
   stock-based
   compensation
   Abandonment and
   impairment of       40,118      -                40,118        16,627         -             16,627
   unproved
   properties
   General and         33,333      -                33,333        26,398         -             26,398
   administrative
   General and
   administrative
   – non-cash          10,057      -                10,057        8,491          -             8,491
   stock-based

   compensation
   General and
   administrative      1,107       -                1,107         168            -             168
   – lawsuit
   settlements
   General and
   administrative      -           -                -             850            -             850
   – bad debt
   expense
   Deferred
   compensation        20,052      -                20,052        8,717          -             8,717
   plan
   Interest            43,997      -                43,997        34,181         -             34,181
   expense
   Loss on early
   extinguishment      -           -                -             (4      )      -             (4      )
   of debt
   Depletion,
   depreciation        123,059     -                123,059       93,619         -             93,619
   and
   amortization
   Impairment of
   proved             1,281     -              1,281       38,681      -          38,681  
   properties
                      377,803   -              377,803     314,910     295        315,205 
                                                                                             
Income (loss) from
continuing             (82,910 )   -                (82,910 )     55,726         2,410         58,136
operations before
income taxes
                                                                                             
Income tax
expense:
   Current             -           -                -             (7      )      -             (7      )
   Deferred           (29,074 )  -              (29,074 )    22,547      841        23,388  
                      (29,074 )  -              (29,074 )    22,540      841        23,381  
                                                                                             
Income (loss) from
continuing             (53,836 )   -                (53,836 )     33,186         1,569         34,755
operations
Discontinued
operations-Barnett    -         -              -           1,569       (1,569  )   -       
Shale, net of tax
Net income (loss)    $ (53,836 )  -             $ (53,836 )   $ 34,755      -         $ 34,755  
                                                                                             
OPERATING
HIGHLIGHTS
                                                                                             
Average daily
production:
   Natural gas         623,344     -                623,344       406,977        3,525         410,502
   (mcf)
   NGLs (bbl)          20,040      -                20,040        15,550         (120    )     15,430
   Oil (bbl)           7,748       -                7,748         5,686          (6      )     5,680
   Gas equivalents     790,074     -                790,074       534,388        2,769         537,157
   (mcfe)
                                                                                             
Average prices
realized before
transportation,
gathering and
compression:
   Natural gas       $ 3.88        -              $ 3.88        $ 5.33           -           $ 5.34
   (mcf)
   NGLs (bbl)        $ 38.79       -              $ 38.79       $ 50.69          -           $ 50.92
   Oil (bbl)         $ 84.86       -              $ 84.86       $ 81.72          -           $ 81.71
   Gas equivalents   $ 4.88        -              $ 4.88        $ 6.41           -           $ 6.41
   (mcfe)
                                                                                             
Direct operating
cash costs per
mcfe:
   Field expenses    $ 0.38        -              $ 0.38        $ 0.57           -           $ 0.55
   Workovers          0.02      -              0.02        0.03        -          0.03    
   Total operating   $ 0.40      -             $ 0.40       $ 0.60        -         $ 0.58    
   costs
                                                                                             
Transportation,
gathering and        $ 0.71      -             $ 0.71       $ 0.66        -         $ 0.68    
compression cost
per mcf:

                                                                                          
RANGE RESOURCES CORPORATION
                                                                                                 
STATEMENTS OF
OPERATIONS
Restated for
Barnett
discontinued
operations,
  a non-GAAP        Nine Months Ended September 30, 2012           Nine Months Ended September 30, 2011
   presentation
   (Unaudited, in                    Barnett        Including                     Barnett        Including
   thousands,        As              Discontinued   Barnett         As            Discontinued   Barnett
   except per        reported       Operations    Ops             reported     Operations    Ops
   share data)
Revenues and other
income:
   Natural gas,
   NGLs and oil      $ 953,006       -              $ 953,006       $ 841,546     $  58,997      $ 900,543
   sales
   Derivative cash
   settlements         21,994        -                21,994          8,342          -             8,342
   gain (loss)
   Change in
   mark-to-market
   on unrealized       30,075        -                30,075          67,093         -             67,093
   derivatives

   gain (loss)
   Ineffective
   hedging gain        (5,061    )   -                (5,061    )     2,531          -             2,531
   (loss)
   Gain (loss) on
   sale of             (12,704   )   -                (12,704   )     (1,280  )      4,852         3,572
   properties
   Equity method       (195      )   -                (195      )     (1,399  )      -             (1,399  )
   investment
   Transportation      (1,997    )   -                (1,997    )     1,195          6             1,201
   and gathering
   Transportation
   and gathering –
   non-cash            (1,313    )   -                (1,313    )     (1,107  )      -             (1,107  )
   stock-based

   compensation
   Interest and       421         -              421           1,668       4          1,672   
   other
                      984,226     -              984,226       918,589     63,859     982,448 
Costs and
expenses:
   Direct              84,044        -                84,044          85,638         9,790         95,428
   operating
   Direct
   operating –
   non-cash            1,647         -                1,647           1,416          45            1,461
   stock-based
   compensation
   Transportation,
   gathering and       137,164       -                137,164         86,179         5,240         91,419
   compression
   Production and
   ad valorem          32,532        -                32,532          21,746         1,206         22,952
   taxes
   Pennsylvania
   impact fee –        24,707        -                24,707          -              -             -
   prior year
   Exploration         48,737        -                48,737          53,217         37            53,254
   Exploration –
   non-cash            3,048         -                3,048           3,168          -             3,168
   stock-based
   compensation
   Abandonment and
   impairment of       104,048       -                104,048         52,064         -             52,064
   unproved
   properties
   General and         93,953        -                93,953          80,814         -             80,814
   administrative
   General and
   administrative
   – non-cash          30,755        -                30,755          27,488         -             27,488
   stock-based

   compensation
   General and
   administrative      2,523         -                2,523           238            -             238
   – lawsuit
   settlements
   General and
   administrative      -             -                -               446            -             446
   – bad debt
   expense
   Deferred
   compensation        21,555        -                21,555          33,569         -             33,569
   plan
   Interest            124,090       -                124,090         90,343         14,791        105,134
   expense
   Loss on early
   extinguishment      -             -                -               18,576         -             18,576
   of debt
   Depletion,
   depreciation        332,012       -                332,012         244,129        8,894         253,023
   and
   amortization
   Impairment of
   proved             1,281       -              1,281         38,681      -          38,681  
   properties
                      1,042,096   -              1,042,096     837,712     40,003     877,715 
                                                                                                 
Income (loss) from
continuing             (57,870   )   -                (57,870   )     80,877         23,856        104,733
operations before
income taxes
                                                                                                 
Income tax
expense:
   Current             -             -                -               1              -             1
   Deferred           (17,910   )  -              (17,910   )    35,345      8,372      43,717  
                      (17,910   )  -              (17,910   )    35,346      8,372      43,718  
                                                                                                 
Income (loss) from
continuing             (39,960   )   -                (39,960   )     45,531         15,484        61,015
operations
Discontinued
operations-Barnett    -           -              -             15,484      (15,484 )   -       
Shale, net of tax
Net income (loss)    $ (39,960   )  -             $ (39,960   )   $ 61,015      -         $ 61,015  
                                                                                                 
OPERATING
HIGHLIGHTS
                                                                                                 
Average daily
production:
   Natural gas         570,343       -                570,343         366,516        43,109        409,625
   (mcf)
   NGLs (bbl)          18,157        -                18,157          13,914         793           14,707
   Oil (bbl)           7,095         -                7,095           5,356          30            5,386
   Gas equivalents     721,855       -                721,855         482,138        48,046        530,184
   (mcfe)
                                                                                                 
Average prices
realized before
transportation,
gathering and
compression:
   Natural gas       $ 3.85          -              $ 3.85          $ 5.40           -           $ 5.26
   (mcf)
   NGLs (bbl)        $ 42.22         -              $ 42.22         $ 50.53       $  45.86       $ 50.28
   Oil (bbl)         $ 84.27         -              $ 84.27         $ 80.53       $  92.00       $ 80.59
   Gas equivalents   $ 4.93          -              $ 4.93          $ 6.46           -           $ 6.28
   (mcfe)
                                                                                                 
Direct operating
cash costs per
mcfe:
   Field expenses    $ 0.40          -              $ 0.40          $ 0.63        $  0.73        $ 0.64
   Workovers          0.02        -              0.02          0.02        0.02       0.02    
   Total operating   $ 0.42        -             $ 0.42         $ 0.65      $  0.75      $ 0.66    
   costs
                                                                                                 
Transportation,
gathering and        $ 0.69        -             $ 0.69         $ 0.65      $  0.40      $ 0.63    
compression cost
per mcf:

                                               
RANGE RESOURCES CORPORATION
                                                 
BALANCE SHEETS
(In thousands)                                   September 30   December 31
                                                  2012          2011      
                                                 (Unaudited)     (Audited)
Assets
Current assets                                   $ 138,694       $ 141,342
Current unrealized derivative gain                 131,841         173,921
Natural gas and oil properties                     6,058,147       5,157,566
Transportation and field assets                    44,222          52,678
Other                                             284,816       319,963   
                                                 $ 6,657,720    $ 5,845,470 
                                                                 
Liabilities and Stockholders’ Equity
Current liabilities                              $ 536,445       $ 506,274
Current asset retirement obligation                5,005           5,005
Current unrealized derivative loss                 4,294           -
Current liabilities of discontinued operations     -               653
                                                                 
Bank debt                                          461,000         187,000
Subordinated notes                                2,388,869     1,787,967 
Total long-term debt                              2,849,869     1,974,967 
                                                                 
Deferred tax liability                             656,849         710,490
Unrealized derivative loss                         8,939           173
Deferred compensation liability                    198,082         169,188
Long-term asset retirement obligation and          116,410         86,300
other
                                                                 
Common stock and retained earnings                 2,219,409       2,242,136
Treasury stock                                     (4,879    )     (6,343    )
Accumulated other comprehensive income            67,297        156,627   
Total stockholders’ equity                        2,281,827     2,392,420 
                                                 $ 6,657,720    $ 5,845,470 

                                                               


RANGE RESOURCES CORPORATION
                                                                   
CASH FLOWS FROM
OPERATING ACTIVITIES
(Unaudited, in           Three Months Ended          Nine Months Ended
thousands)
                         September 30,               September 30,
                          2012       2011        2012        2011    
                                                                   
Net income (loss)        $ (53,836 )   $ 34,755      $ (39,960 )   $ 61,015
Adjustments to
reconcile net income
to net cash provided
from operating
activities:
(Income) loss
discontinued               -             (1,569  )     -             (15,484 )
operations
(Gain) loss from
equity investment, net     (41     )     3,675         2,252         18,777
of distributions
Deferred income tax        (29,074 )     22,547        (17,910 )     35,345
expense
Depletion,
depreciation,
amortization and           124,340       132,300       333,293       282,810
proved property
impairment
Exploration dry hole       15            2,510         832           2,516
costs
Abandonment and
impairment of unproved     40,118        16,627        104,048       52,064
properties
Mark-to-market (gain)
loss on oil and gas        53,645        (58,990 )     (30,076 )     (67,093 )
derivatives not
designated as hedges
Unrealized derivatives     4,707         3,971         5,061         (2,531  )
(gain) loss
Allowance for bad          -             850           -             446
debts
Amortization of
deferred financing
costs, loss on             2,077         2,075         5,970         23,753
extinguishment of
debt, and other
Deferred and
stock-based                32,232        18,598        58,573        66,759
compensation
Gain (loss) on sale of     (949    )     (203    )     12,704        1,280
assets and other
                                                                   
Changes in working
capital:
Accounts receivable        (21,090 )     (24,357 )     (9,479  )     (34,356 )
Inventory and other        (2,570  )     (1,894  )     (5,394  )     875
Accounts payable           32,996        (12,277 )     11,074        (7,262  )
Accrued liabilities       (4,393  )    2,298       30,135      9,953   
and other
Net changes in working    4,943       (36,230 )    26,336      (30,790 )
capital
Net cash provided from     178,177       140,916       461,123       428,867
continuing operations
Net cash (used in)
provided from             -           (2,076  )    -           19,478  
discontinued
operations
Net cash provided from   $ 178,177    $ 138,840    $ 461,123    $ 448,345 
operating activities

                                                  
RECONCILIATION OF NET
CASH PROVIDED FROM
OPERATING
ACTIVITIES, AS
REPORTED, TO CASH FLOW
FROM OPERATIONS
BEFORE CHANGES IN
WORKING CAPITAL, a
non-GAAP measure
(Unaudited, in           Three Months Ended          Nine Months Ended
thousands)
                         September 30,               September 30,
                          2012       2011        2012       2011    
                                                                   
Net cash provided from
operating activities,    $ 178,177     $ 138,840     $ 461,123     $ 448,345
as reported
Net changes in working
capital from               (4,943  )     36,230        (26,336 )     30,790
continuing operations
Exploration expense        13,611        14,194        47,905        50,701
Lawsuit settlements        1,107         168           2,523         238
Equity method
investment
distribution /             1,053         (3,034  )     (2,057  )     (17,378 )
intercompany
elimination
Prior year
Pennsylvania impact        -             -             24,707        -
fee
Non-cash compensation      146           122           3             185
adjustment
Net changes in working
capital from              -           3,454       -           8,502   
discontinued
operations and other
Cash flow from
operations before
changes in working       $ 189,151    $ 189,974    $ 507,868    $ 521,383 
capital, a non-GAAP
measure
                                                                   
ADJUSTED WEIGHTED
AVERAGE SHARES
OUTSTANDING
(Unaudited, in           Three Months Ended          Nine Months Ended
thousands)
                         September 30,               September 30,
                          2012        2011        2012        2011    
Basic:
Weighted average           162,527       161,085       162,198       160,789
shares outstanding
Stock held by deferred    (2,964  )    (2,931  )    (2,901  )    (2,888  )
compensation plan
Adjusted basic            159,563     158,154     159,297     157,901 
                                                                   
Dilutive:
Weighted average           162,527       161,085       162,198       160,789
shares outstanding
Anti-dilutive or
dilutive stock options    (2,964  )    (1,763  )    (2,901  )    (1,850  )
under treasury method
Adjusted dilutive         159,563     159,322     159,297     158,939 

                                                         
RANGE RESOURCES CORPORATION
                                                            
RECONCILIATION
OF NATURAL GAS,
NGLs AND OIL
SALES AND
DERIVATIVE FAIR
VALUE INCOME
(LOSS) TO
CALCULATED CASH
REALIZED
NATURAL
GAS, NGLs AND
OIL PRICES WITH
AND WITHOUT
THIRD PARTY
TRANSPORTATION,
GATHERING AND
COMPRESSION
FEES
non-GAAP
measures
                  As Reported, GAAP                         Non-GAAP
                  Excludes Barnett Operations               Includes Barnett Operations
(Unaudited, in
thousands,        Three Months Ended September 30,          Three Months Ended September 30,
except per unit
data)
                   2012          2011         %       2012          2011         %   
Natural gas,
NGLs and oil                                                                               
sales
components:
Natural gas       $ 159,525        $ 165,581                $ 159,525        $ 167,544
sales
NGLs sales          56,826           69,430                   56,826           69,189
Oil sales           59,221           42,461                   59,221           42,412
                                                                                              
Cash-settled
hedges
(effective):
Natural gas         62,150           26,758                   62,150           26,758
Crude oil          (682       )    -                      (682       )    -          
Total natural
gas, NGLs and     $ 337,040       $ 304,230       11  %   $ 337,040       $ 305,903       10  %
oil sales, as
reported
                                                                                              
Derivative fair
value income
(loss)
components:
Cash-settled
derivatives
(ineffective):
Natural gas       $ 988            $ 7,370                  $ 988            $ 7,370
NGLs                14,682           3,087                    14,682           3,087
Crude Oil           1,955            285                      1,955            285
Change in
mark-to-market      (53,646    )     58,990                   (53,646    )     58,990
on unrealized
derivatives
Unrealized         (4,707     )    (3,971     )            (4,707     )    (3,971     )
ineffectiveness
Total
derivative fair
value income      $ (40,728    )   $ 65,761                $ (40,728    )   $ 65,761     
(loss), as
reported
                                                                                              
Natural gas,
NGLs and oil
sales,
including all
cash-settled
derivatives
(c):
Natural gas       $ 222,663        $ 199,709                $ 222,663        $ 201,672
sales
NGL sales           71,508           72,517                   71,508           72,276
Oil sales          60,494         42,746                 60,494         42,697     
Total             $ 354,665       $ 314,972       13  %   $ 354,665       $ 316,645       12  %
                                                                                              
Third party
transportation,
gathering and
compression fee
components:
Natural gas       $ 48,737         $ 30,448                 $ 48,737         $ 31,398
NGLs               2,863          1,983                  2,863          1,983      
Total
transportation,
gathering and     $ 51,600        $ 32,431                $ 51,600        $ 33,381     
compression, as
reported
                                                                                              
Production
during the
period (a):
Natural gas         57,347,638       37,441,857     53  %     57,347,638       37,766,122     52  %
(mcf)
NGLs (bbl)          1,843,667        1,430,568      29  %     1,843,667        1,419,485      30  %
Oil (bbl)           712,858          523,074        36  %     712,858          522,572        36  %
Gas equivalent      72,686,788       49,163,709     48  %     72,686,788       49,418,463     47  %
(mcfe) (b)
                                                                                              
Production –
average per day
(a):
Natural gas         623,344          406,977        53  %     623,344          410,501        52  %
(mcf)
NGLs (bbl)          20,040           15,550         29  %     20,040           15,429         30  %
Oil (bbl)           7,748            5,686          36  %     7,748            5,680          36  %
Gas equivalent      790,074          534,388        48  %     790,074          537,157        47  %
(mcfe) (b)
                                                                                              
Average prices,
including
cash-settled
hedges and
derivatives
before third
party
transportation
costs:
Natural gas       $ 3.88           $ 5.33           -27 %   $ 3.88           $ 5.34           -27 %
(mcf)
NGLs (bbl)        $ 38.79          $ 50.69          -23 %   $ 38.79          $ 50.92          -24 %
Oil (bbl)         $ 84.86          $ 81.72          4   %   $ 84.86          $ 81.71          4   %
Gas equivalent    $ 4.88           $ 6.41           -24 %   $ 4.88           $ 6.41           -24 %
(mcfe) (b)
                                                                                              
Average prices,
including
cash-settled
hedges and
derivatives
(d):
Natural gas       $ 3.03           $ 4.52           -33 %   $ 3.03           $ 4.51           -33 %
(mcf)
NGLs (bbl)        $ 37.23          $ 49.30          -24 %   $ 37.23          $ 49.52          -25 %
Oil (bbl)         $ 84.86          $ 81.72          4   %   $ 84.86          $ 81.71          4   %
Gas equivalent    $ 4.17           $ 5.75           -27 %   $ 4.17           $ 5.73           -27 %
(mcfe) (b)
                                                                                              

(a) Represents volumes sold regardless of when produced.
(b) Oil and NGLs are converted to mcfe at a rate of one barrel equals six mcf
based upon the approximate relative energy content of oil and natural gas,
which is not necessarily indicative of the relationship of oil and natural gas
prices.
(c) Excluding third party transportation, gathering and compression costs.
(d) Net of transportation, gathering and compression costs.

                                                           
RANGE RESOURCES CORPORATION
                                                              
RECONCILIATION
OF NATURAL GAS,
NGLs AND
OIL SALES AND
DERIVATIVE FAIR
VALUE
INCOME (LOSS)
TO CALCULATED
CASH REALIZED
NATURAL GAS,
NGLs AND OIL
PRICES WITH AND
WITHOUT THIRD
PARTY
TRANSPORTATION,
GATHERING AND
COMPRESSION
FEES
non-GAAP
measures
                  As Reported, GAAP                           Non-GAAP
                  Excludes Barnett Operations                 Includes Barnett Operations
(Unaudited, in
thousands,        Nine Months Ended September 30,             Nine Months Ended September 30,
except per unit
data)
                   2012           2011          %       2012           2011          %   
Natural gas,
NGLs and oil
sales
components:
Natural gas       $ 399,006         $ 446,564                 $ 399,006         $ 486,277
sales
NGLs sales          189,604           188,851                   189,604           198,780
Oil sales           166,718           125,472                   166,718           126,220
                                                                                                  
Cash-settled
hedges
(effective):
Natural gas         198,675           80,659                    198,675           89,266
Crude oil          (997        )    -                       (997        )    -           
Total natural
gas, NGLs and     $ 953,006        $ 841,546        13  %   $ 953,006        $ 900,543        6   %
oil sales, as
reported
                                                                                                  
Derivative fair
value income
(loss)
components:
Cash-settled
derivatives
(ineffective):
Natural gas       $ 3,451           $ 12,982                  $ 3,451           $ 12,982
NGLs                20,442            3,087                     20,442            3,087
Crude Oil           (1,899      )     (7,727      )             (1,899      )     (7,727      )
Change in
mark-to-market      30,075            67,093                    30,075            67,093
on unrealized
derivatives
Unrealized         (5,061      )    2,531                   (5,061      )    2,531       
ineffectiveness
Total
derivative fair
value income      $ 47,008         $ 77,966                 $ 47,008         $ 77,966      
(loss), as
reported
                                                                                                  
Natural gas,
NGLs and oil
sales,
including all
cash-settled
derivatives
(c):
Natural gas       $ 601,132         $ 540,205                 $ 601,132         $ 588,525
sales
NGLs sales          210,046           191,938                   210,046           201,867
Oil sales          163,822         117,745                 163,822         118,493     
Total             $ 975,000        $ 849,888        15  %   $ 975,000        $ 908,885        7   %
                                                                                                  
Third party
transportation,
gathering and
compression fee
components:
Natural gas       $ 129,411         $ 81,848                  $ 129,411         $ 87,088
NGLs               7,753           4,331                   7,753           4,331       
Total
transportation,
gathering and     $ 137,164        $ 86,179                 $ 137,164        $ 91,419      
compression, as
reported
                                                                                                  
Production
during the
period (a):
Natural gas         156,274,072       100,058,851     56  %     156,274,072       111,827,546     40  %
(mcf)
NGLs (bbl)          4,975,086         3,798,635       31  %     4,975,086         4,015,156       24  %
Oil (bbl)           1,943,961         1,462,168       33  %     1,943,961         1,470,296       32  %
Gas equivalent      197,788,354       131,623,670     50  %     197,788,354       144,740,258     37  %
(mcfe) (b)
                                                                                                  
Production –
average per day
(a):
Natural gas         570,343           366,516         56  %     570,343           409,625         39  %
(mcf)
NGLs (bbl)          18,157            13,914          30  %     18,157            14,708          23  %
Oil (bbl)           7,095             5,356           32  %     7,095             5,386           32  %
Gas equivalent      721,855           482,138         50  %     721,855           530,184         36  %
(mcfe) (b)
                                                                                                  
Average prices,
including
cash-settled
hedges and
derivatives
before third
party
transportation
costs:
Natural gas       $ 3.85            $ 5.40            -29 %   $ 3.85            $ 5.26            -27 %
(mcf)
NGLs (bbl)        $ 42.22           $ 50.53           -16 %   $ 42.22           $ 50.28           -16 %
Oil (bbl)         $ 84.27           $ 80.53           5   %   $ 84.27           $ 80.59           5   %
Gas equivalent    $ 4.93            $ 6.46            -24 %   $ 4.93            $ 6.28            -21 %
(mcfe) (b)
                                                                                                  
Average prices,
including
cash-settled
hedges and
derivatives
(d):
Natural gas       $ 3.02            $ 4.58            -34 %   $ 3.02            $ 4.48            -33 %
(mcf)
NGLs (bbl)        $ 40.66           $ 49.39           -18 %   $ 40.66           $ 49.20           -17 %
Oil (bbl)         $ 84.27           $ 80.53           5   %   $ 84.27           $ 80.59           5   %
Gas equivalent    $ 4.24            $ 5.80            -27 %   $ 4.24            $ 5.65            -25 %
(mcfe) (b)
                                                                                                  

(a) Represents volumes sold regardless of when produced.
(b) Oil and NGLs are converted to mcfe at a rate of one barrel equals six mcf
based upon the approximate relative energy content of oil and natural gas,
which is not necessarily indicative of the relationship of oil and natural gas
prices.
(c) Excluding third party transportation, gathering and compression costs.
(d) Net of transportation, gathering and compression costs.

                                                                             
RANGE RESOURCES CORPORATION
                                                                                  
RECONCILIATION
OF INCOME
(LOSS) FROM
CONTINUING
OPERATIONS
BEFORE INCOME
TAXES
AS REPORTED TO
INCOME FROM
OPERATIONS
BEFORE INCOME
TAXES
EXCLUDING
CERTAIN ITEMS,
a non-GAAP
measure
(Unaudited, in
thousands,       Three Months Ended September 30,     Nine Months Ended September 30,
except per
share data)
                  2012       2011      %        2012        2011       %    
                                                                                  
(Loss) income
from
continuing
operations       $ (82,910 )   $ 55,726      -249 %   $ (57,870 )   $ 80,877      -172 %
before income
taxes, as
reported
Adjustment for
certain items:
Gain (loss) on
sale of            (949    )     (203    )              12,704        1,280
properties
Barnett
discontinued
operations         -             1,378                  -             19,004
less gain on
sale
Change in
mark-to-market
on unrealized      53,646        (58,990 )              (30,075 )     (67,093 )
derivatives
(gain) loss
Unrealized
derivative         4,707         3,971                  5,061         (2,531  )
(gain) loss
Abandonment
and impairment     40,118        16,627                 104,048       52,064
of unproved
properties
Loss on early
extinguishment     -             (4      )              -             18,576
of debt
Prior year
Pennsylvania       -             -                      24,707        -
impact fee
Proved
property and       1,281         38,681                 1,281         38,681
other asset
impairment
Lawsuit            1,107         168                    2,523         238
settlements
Transportation
and gathering
– non-cash         452           375                    1,313         1,107
stock-based
compensation
Direct
operating –
non-cash           598           463                    1,647         1,416
stock-based
compensation
Exploration
expenses –
non-cash           1,126         902                    3,048         3,168
stock-based
compensation
General &
administrative
– non-cash         10,057        8,491                  30,755        27,488
stock-based
compensation
Deferred
compensation
plan –            20,052      8,717                21,555      33,569  
non-cash
adjustment
                                                                                  
Income from
operations
before income      49,285        76,302      -35  %     120,697       207,844     -42  %
taxes, as
adjusted
                                                                                  
Income tax
expense, as
adjusted
Current            -             (7      )              -             1
Deferred          17,287      31,650               45,749      84,725  
Net income
excluding
certain items,   $ 31,998     $ 44,659     -28  %   $ 74,948     $ 123,118    -39  %
a non-GAAP
measure
                                                                                  
Non-GAAP
income per
common share
Basic.           $ 0.20       $ 0.28       -29  %   $ 0.47       $ 0.78       -40  %
Diluted          $ 0.20       $ 0.28       -29  %   $ 0.47       $ 0.77       -39  %
                                                                                  
Non-GAAP
diluted shares    160,222     159,322              160,130     158,939 
outstanding,
if dilutive

*Story too large*
                                                        
HEDGING POSITION AS OF OCTOBER 24, 2012
(Unaudited)
                                                              
                        Daily Volume       Hedge Price        Premium (Paid) /
                                                              Received
Gas (Mmbtu)
3Q 2012 Swaps           220,000            $3.73              ($0.02)
3Q 2012 Collars         279,641            $4.76 - $5.22      ($0.19)
4Q 2012 Swaps           270,000            $3.77              ($0.02)
4Q 2012 Collars         279,641            $4.76 - $5.22      ($0.19)
                                                              
2013 Swaps              213,384            $3.65              --
2013 Collars            280,000            $4.59 - $5.05      --
                                                              
2014 Collars            385,000            $3.80 - $4.48      --
                                                              
Oil (Bbls)
3Q 2012 Calls           2,200              $85.00             $13.71
3Q 2012 Collars         4,500              $75.56 - $82.78    $9.30
4Q 2012 Calls           2,200              $85.00             $13.71
4Q 2012 Collars         4,500              $75.56 - $82.78    $8.56
                                                              
2013 Swaps              5,081              $96.59             --
2013 Collars            3,000              $90.60 - $100.00   --
                                                              
2014 Swaps              4,000              $94.56             --
2014 Collars            2,000              $85.55 - $100.00   --
                                                              
C5 Natural Gasoline
(Bbls)
3Q 2012 Swaps           6,500              $2.2923            --
4Q 2012 Swaps           6,500              $2.2923            --
                                                              
2013 Swaps              6,500              $2.1343            --
                                                              
C3 Propane (Bbls)
3Q 2012 Swaps           6,000

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