Range Proved Reserves Increase 29% to 6.5 Tcfe

  Range Proved Reserves Increase 29% to 6.5 Tcfe

Business Wire

FORT WORTH, Texas -- January 30, 2013

RANGE RESOURCES CORPORATION (NYSE: RRC) announced today that its proved
reserves as of December 31, 2012 increased 29% to a record high of 6.5 Tcfe.
Range replaced 773% of production in 2012 from drilling (including proved
performance revisions). Finding and development costs from all sources
(including acreage and price and performance revisions) are expected to
average $0.87 per mcfe, based on preliminary unaudited results for 2012. Drill
bit development costs are expected to average $0.68 per mcfe.

For 2012, Range added 1,767 Bcfe of proved reserves through the drill bit.
Positive performance revisions added 366 Bcfe despite the Company removing 67
Bcfe of proved undeveloped dry gas reserves that are no longer expected to be
drilled within the next five years under current development plans as the
Company continues to redirect capital to the Marcellus Shale, the Horizontal
Mississippian oil play and other liquids-rich areas of the Company’s
portfolio. Price revisions reduced proved reserves by 257 Bcfe. During the
year, the Company sold 149 Bcfe of proved reserves. No reserves were added
through purchases as the Company did not have any proved property acquisitions
in 2012. Production for 2012 totaled 276 Bcfe.

Year-end 2012 proved reserves by volume were 74% natural gas, 22% natural gas
liquids and 4% crude oil. Crude oil and NGL reserve volumes increased 64%,
while natural gas reserve volumes increased 20%. The percentage of reserves in
the proved undeveloped category declined to 47% at year-end 2012, as compared
to 52% at year-end 2011. At year-end 2012, Range recorded, on average, a
modest 1.2 offset Marcellus drilling locations to its proved undeveloped
reserves for each of its proved developed wells in the play. As of year-end
2012, approximately 10% of Range's Marcellus acreage was classified as proved
reserves. Given the results to date of Range and other operators with over
2,000 wells drilled around Range’s acreage, Range believes that substantially
all of its Marcellus acreage is highly prospective. In regard to the Utica and
Upper Devonian Shales, Range has drilled successful wells in both horizons and
will continue to drill additional wells and monitor industry activity. However
at year-end 2012 as in 2011 and 2010, Range did not include any Utica or Upper
Devonian locations as proved undeveloped reserves.

At year-end 2012, the Company recognized 307 Bcfe of incremental ethane
reserves as NGL proved reserves in the Marcellus Shale associated with initial
ethane deliveries under contracts commencing in 2013. The remaining Marcellus
ethane reserves continue to be included as natural gas reserves until
additional ethane contracts commence in 2014 and 2015. As a result, the
majority of its ethane volumes are currently left in the natural gas stream
and sold on an energy equivalent basis. If ethane recovery were occurring at
year-end 2012 for all the ethane deliveries under currently executed
contracts, the Company’s estimated proved reserves by volume would have been
7.0 Tcfe, composed of 66% natural gas, 30% NGLs and 4% crude oil. In all
geographical areas other than the Marcellus, ethane is normally included in
the NGL reserves under customary reporting practices.

As noted above, Range replaced 773% of production from drilling in 2012
including performance revisions. The Company's estimate of drilling and
development costs incurred during 2012 including acreage, exploration and
seismic expenses is approximately $1.65 billion which is subject to year-end
audit. Included in the $1.65 billion capital spending amount is approximately
$190 million for acreage. Finding and development cost from all sources
averaged $0.87 per mcfe including price and performance revisions. Drill bit
development cost (which excludes price revisions and acreage cost) averaged
$0.68 per mcfe.

The Securities and Exchange Commission ("SEC") rules require that proved
reserve calculations be based on the prompt month average prices over the
preceding twelve months. For the year-end 2012 reserve evaluation, the
benchmark prices were $2.76 per Mmbtu for natural gas and $95.05 per barrel
for crude oil (Cushing), representing the simple average of the prices for the
first day for each month of 2012. Comparative prices for year-end 2011 were
$4.12 per Mmbtu for natural gas and $95.61 per barrel for crude oil (Cushing).
Based on these prices adjusted for energy content, quality and basis
differentials ($2.75 per Mmbtu, $32.23 per barrel of natural gas liquids and
$86.91 per barrel of crude oil, respectively), the pre-tax discounted (10%)
present value (“PV10”) of the Company's proved reserves was $4.0 billion for
year-end 2012 compared to $6.1 billion at year-end 2011. The Company’s PV10
value of its proved reserves includes estimated future development costs to
develop the proved undeveloped reserves of $3.5 billion. Using the 10-year
future strip benchmark prices as of December 31, 2012, the Company’s PV10
value would have been $8.2 billion. The 10-year future strip benchmark prices
were $4.84 per Mmbtu and $87.90 per barrel. The comparative prior year PV10
value using 10-year future strip benchmark prices as of December 31, 2011 of
$4.90 per Mmbtu and $92.66 per barrel, was $7.4 billion.

SUMMARY OF CHANGES IN PROVED RESERVES
(in Bcfe)
Balance at December 31, 2011           5,054
Extensions, discoveries and additions   1,767
Purchases                               -
Performance revisions                   366
Price revisions                         (257  )
Sales                                   (149  )
Production                              (276  )
Balance at December 31, 2012            6,505 
                                              

Commenting, Jeff Ventura, Range's President and CEO, said, "Our 29% increase
in proved reserves, 773% drill bit replacement and $0.87 all-in finding cost
are outstanding results. Importantly, we achieved double-digit per share,
debt-adjusted production and reserve growth for the seventh consecutive year.
These results are a reflection of our large inventory of low cost, high return
projects. Given the commodity price environment in 2012, and to a greater
extent in 2013, we are focusing our capital on our liquids-rich plays. The 64%
increase in crude oil and NGL reserves versus the 20% rise in natural gas
reserves is a reflection of the solid execution of our capital program. Again
for 2013, we expect our growth in liquid reserves will materially outpace the
growth in our natural gas reserves. The fact that only 10% of our Marcellus
acreage is classified as proved reserves along with our growing oil production
from the Horizontal Mississippian play, demonstrates that Range is very well
positioned to continue to achieve double-digit production and reserve growth
per share at low cost for many years to come."

Disclosure Statements:

The information in this release is unaudited and subject to revision. Audited
and final results will be provided in our Annual Report on Form 10-K for the
year ended December 31, 2012 currently planned to be filed with Securities and
Exchange Commission by the end of February 2013.

Range has disclosed two primary metrics in this release to measure our ability
to establish a long-term trend of adding reserves at a reasonable cost - a
reserve replacement ratio and finding and development cost per unit. The
reserve replacement ratio is an indicator of our ability to replace annual
production volumes and grow our reserves. It is important to economically find
and develop new reserves that will offset produced volumes and provide for
future production given the inherent decline of hydrocarbon reserves as they
are produced. We believe the ability to develop a competitive advantage over
other natural gas and oil companies is dependent on adding reserves in our
core areas at lower costs than our competition. The reserve replacement ratio
is calculated by dividing production for the year into the total of proved
extensions, discoveries and additions and proved reserves added by performance
as shown in the table.

Finding and development cost per unit is a non-GAAP metric used in the
exploration and production industry by companies, investors and analysts. The
calculations presented by the Company are based on estimated and unaudited
costs incurred excluding asset retirement obligations and divided by proved
reserve additions (extensions, discoveries and additions shown in the table)
adjusted for the changes in proved reserves for acreage, acquisitions,
performance revisions and/or price revisions as stated in each instance in the
release. This calculation does not include the future development costs
required for the development of proved undeveloped reserves.

The reserve replacement ratio and finding and development cost per unit are
statistical indicators that have limitations, including their predictive and
comparative value. As an annual measure, the reserve replacement ratio can be
limited because it may vary widely based on the extent and timing of new
discoveries and the varying effects of changes in prices and well performance.
In addition, since the reserve replacement ratio and finding and development
cost per unit do not consider the cost or timing of future production of new
reserves, such measures may not be an adequate measure of value creation.
These reserves metrics may not be comparable to similarly titled measurements
used by other companies.

Year-end pre-tax discounted present value may be considered a non-GAAP
financial measure as defined by the SEC. We believe that the presentation of
pre-tax discounted present value is relevant and useful to our investors
because it presents the discounted future net cash flows attributable to our
proved reserves prior to taking into account corporate future income taxes and
our current tax structure. We further believe investors and creditors use
pre-tax discounted present value as a basis for comparison of the relative
size and value of our reserves as compared with other companies. Range's
pre-tax discounted present value as of December 31, 2012 may be reconciled to
its standardized measure of discounted future net cash flows as of December
31, 2012 by reducing Range's pre-tax discounted present value by the
discounted future income taxes associated with such reserves. This
reconciliation will be included in the Company's Form 10-K.

RANGE RESOURCES CORPORATION (NYSE: RRC) is one of the leading independent oil
and natural gas producers in the US. Its operations are primarily focused in
the Marcellus Shale in Appalachia and liquids-rich areas of the Southwest. The
Company is the largest natural gas liquid producer in Appalachia. The Company
pursues an organic growth strategy at low finding costs by targeting the
highest rate of return 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
www.rangeresources.com and www.myrangeresources.com.

Except for historical information, statements made in this release, including
those relating to finding and development costs in 2012 that are still subject
to audit, expected acreage to be reclassified to proved developed, expected
timing and volumes of ethane reserves recognized as proved reserves, expected
future growth in liquid reserves, expected future growth of production and
reserves per share, expected rates of return and future expectation of costs
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 our 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, environmental risks and regulatory
changes. Range undertakes no obligation to publicly update or revise any
forward-looking statements. Further information on risks and uncertainties is
available in Range's filings with the Securities and Exchange Commission
("SEC"), which are incorporated by reference.

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 the Company’s probable and possible reserves in its filings
with the SEC. Range uses certain broader terms such as "resource potential,"
or "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 being actually 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, unrisked resource
potential has not been fully risked by Range's management. Actual quantities
that may be ultimately recovered from Range's interests will 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. 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.

Contact:

Range Resources Corporation
Investor Contacts:
Rodney Waller, 817-869-4258
Senior Vice President
or
David Amend, 817-869-4266
Investor Relations Manager
or
Laith Sando, 817-869-4267
Senior Financial Analyst
or
Michael Freeman, 817-869-4264
Financial Analyst
or
Media Contact:
Matt Pitzarella, 724-873-3224
Director of Corporate Communications
 
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