Range Announces First Quarter 2013 Results

  Range Announces First Quarter 2013 Results

Business Wire

FORT WORTH, Texas -- April 25, 2013

RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its first quarter 2013
financial results.

First Quarter Highlights –

  *Record daily production of 876 Mmcfe per day, an increase of 34% over
    prior-year quarter
  *Cash flow was $219 million, an increase of 34% as compared to the
    prior-year quarter, despite lower prices
  *Adjusted non-GAAP cash flow of $1.36 per share exceeds average First Call
    consensus estimates by 3 cents
  *Adjusted non-GAAP earnings of $0.33 per share exceeds average First Call
    consensus estimates by 4 cents
  *Unit costs decline 10% as compared to the prior-year quarter
  *Liquids-rich Marcellus in southwest Pennsylvania continues to provide
    impressive results
  *Refinanced higher cost debt with completion of a $750 million senior
    subordinated notes offering at 5%
  *Asset sale for $275 million closed April 1^st

Commenting on the announcement, Jeff Ventura, Range’s President and CEO, said,
“We accomplished a great deal so far in 2013. Our 34% production increase
coupled with the 10% reduction in unit costs reflects the high quality of our
asset base and exceptional performance by the entire Range team. The $750
million note offering and the $275 million asset sale strengthened our
financial position and lowers our borrowing cost. We continue to fine tune our
drilling and completion process in our core plays and we are seeing improved
well performance and greater capital efficiency. We are well on track to
achieve our production growth target of 20% to 25% for 2013. More importantly,
we believe that we have line-of-sight production growth of 20% to 25% for many
years. This growth will be led by our approximately one million net acre
leasehold position in Pennsylvania. The strong growth, coupled with high
returns, low cost and low reinvestment risk position us well to drive
substantial per share value for years to come.”

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.)

GAAP revenues for the first quarter of 2013 totaled $319 million (27% increase
as compared to first quarter 2012), GAAP net cash provided from operating
activities including changes in working capital reached $201 million (29%
increase as compared to first quarter 2012) and GAAP earnings were a net loss
of $76 million ($0.47 loss per diluted share) versus a net loss of $42 million
($0.26 loss per diluted share) in the first quarter 2012.

Non-GAAP revenues for first quarter 2013 totaled $420 million (34% increase as
compared to first quarter 2012), cash flow from operations before changes in
working capital, a non-GAAP measure, reached $219 million ($1.36 per diluted
share, and a 33% increase as compared to first quarter 2012). Adjusted net
income, a non-GAAP measure, was $53 million ($0.33 per diluted share, and a
120% increase as compared to first quarter 2012) for the first quarter 2013.

Several non-cash or non-recurring items impacted first quarter results. A
$96.8 million mark-to-market commodity hedge loss was recorded. A $35.0
million provision for a lawsuit was recorded. A $42.4 million expense for
mark-to-market for the increase in the Company’s common stock held in the
Company deferred compensation plan (which was fully funded on the date of
grant), and $12.3 million of non-cash stock compensation expenses were
recorded.

Total unit costs decreased by $0.42 per mcfe or 10% compared to the prior-year
quarter led by decreases in operating expenses and depreciation, depletion and
amortization expenses. These reductions more than offset the increase in
transportation cost related to Range’s increased Marcellus activity, moving
natural gas to markets with higher natural gas prices. Direct operating
expense for the quarter was $0.37 per mcfe, a 23% decrease compared to the
prior-year quarter. DD&A expense decreased 13% to $1.46 per mcfe.

As previously reported, first quarter production volumes reached a record
high, averaging 876 Mmcfe per day, a 34% increase over the prior-year quarter.
Year-over-year oil and condensate production increased 52%, NGL production
rose 22%, while natural gas production increased 34%. The record production
was driven by the continued success of the Company’s drilling program
primarily in the Marcellus Shale. Wellhead prices, after adjustment for all
cash-settled hedges, averaged $5.06 per mcfe, a 3% decrease from the
prior-year period. Production and realized prices by each commodity for the
first quarter were: natural gas – 689 Mmcf per day ($4.09 per mcf), NGLs –
20,994 barrels per day ($35.29 per barrel) and crude oil and condensate –
10,141 barrels per day ($85.46 per barrel).

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.

Capital Expenditures

First quarter drilling expenditures of $380 million funded the drilling of 53
(51 net) wells and the completion of previously drilled wells. A 100% drilling
success rate was achieved. In addition, during the first quarter, $9 million
was expended on acreage, $7 million on gas gathering systems and $17 million
for exploration expense. The Company is on track with its 2013 capital
expenditure budget of $1.3 billion. In the plan, capital spending will be
weighted to the first three quarters of the year.

Balance Sheet

During the first quarter, Range completed an offering of $750 million senior
subordinated notes due 2023 that carries an interest rate of 5.0%. The net
proceeds of $737.8 million were used to repay the outstanding balance on the
Company’s bank credit facility. At the end of the first quarter, the Company
had approximately $1.6 billion of liquidity available under its credit
facility. Increasing cash flow and the proceeds from asset sales are expected
to further strengthen the balance sheet in 2013. On May 2, 2013, Range will
redeem all $250 million in outstanding principal of its 7.25% senior
subordinated notes due 2018. As a result, Range will have no note maturities
until 2019.

Permian Basin Asset Sale

On April 1, 2013, Range closed the sale for $275 million of certain Permian
Basin properties located in southeast New Mexico and West Texas. The
properties sold consisted of approximately 7,000 net acres and production of
approximately 18 Mmcfe per day. Including this sale, the Company has sold $2.3
billion in assets since 2004 to focus its resources and personnel on the
highest rate of return projects in the portfolio.

Hedging Status

Range hedges portions of its expected future production volumes to increase
the predictability of cash flow and to help maintain a strong, flexible
financial position. Range currently has over 70% of its expected remaining
2013 (second quarter through fourth quarter) natural gas production hedged at
a weighted average floor price of $4.15 per mcf. Similarly, Range has hedged
more than 80% of its projected remaining crude oil production at a floor price
of $94.63 and more than 50% of its composite NGL production near current
market prices. Please see Range’s detailed hedging schedule posted at the end
of the financial tables below and on its website at www.rangeresources.com.

Effective March 1, 2013, Range elected to discontinue hedge accounting for
derivative contracts and moved completely to mark-to-market accounting for its
derivative contracts. With the full derivative portfolio now subject to
mark-to-market accounting, the Company recognized an $81.4 million reduction
in value of its hedge portfolio during the month of March with the improvement
of natural gas prices during the month. This amount would have been deferred
if the Company had continued using hedge accounting. The mark-to-market
accounting treatment may create fluctuations in earnings as commodity prices
change both positively and negatively, however, such mark-to-market
adjustments have no cash flow impact. The impact to cash flow will occur as
the underlying contracts are settled. As of April 1, 2013, the Company expects
to reclassify into earnings $80.9 million of unrealized net gains in the
remaining nine months of 2013 and $10.9 million of unrealized net gains in
2014 which were the previously deferred gains in accumulated other
comprehensive income at the de-designation date on March 1, 2013.

Operational Discussion

Range has updated its investor presentation with economic sensitivity analysis
and other financial and operational information. Please see
www.rangeresources.com under the Investor Relations tab, “Presentations and
Webcasts” area, for the presentation entitled, “Company Presentation - April
25, 2013.”

Southern Marcellus Shale Division -

During the first quarter, the division brought online 25 wells in southwest
Pennsylvania, with 20 wells in the super-rich area and five wells in the dry
area. The initial production rates of the new wells averaged 11.5 (9.2 net)
Mmcfe per day with 65% liquids. During the quarter, the division completed a
two-well pad in the super-rich area at an average 24-hour rate per well of
3,371 (2,805 net) boe per day that was 59% liquids (397 barrels condensate,
1,607 barrels NGLs and 8.2 Mmcf gas). A six-well pad completed in the
super-rich area had an average 24-hour rate per well of 2,340 (1,955 net) boe
per day that was 65% liquids (513 barrels condensate, 1,010 barrels NGLs and
4.9 Mmcf gas).

Subsequent to the end of the quarter, another six-well pad in the same
super-rich area is now producing to sales under constrained facility
limitations at an average 24-hour rate per well of 1,860 (1,577 net) boe per
day composed of 64% liquids (502 barrels condensate, 688 barrels NGLs and 4.0
Mmcf gas).

Infrastructure and capacity additions remain on track as Range continues to
work closely with the midstream companies transporting and processing its
production. At quarter-end the backlog of wells waiting on completion or
pipeline connection increased to 64 wells. Range expects to turn to sales a
total of 102 wells in the southern Marcellus during 2013.

Northern Marcellus Shale Division -

In northeast Pennsylvania, Range drilled seven wells in the first quarter. Two
significant wells were drilled in Lycoming County that produced at an average
24-hour rate per well of 14.7 (12.5 net) Mmcf per day from an average lateral
length of 4,184 feet with 13 frac stages. In total, 10 wells in this division
were turned to sales in the first quarter. As a result, the Company’s backlog
of uncompleted wells and wells waiting on pipeline connection declined to 25
at quarter-end. Range anticipates drilling another 15 wells and working off
some of its backlog in northeast Pennsylvania during the remainder of 2013.

At the end of the first quarter, in the Bradford County area operated by
Talisman, there were a total of 17 (4.5 net) wells producing, 44 (11.6 net)
wells waiting on completion or pipeline connection.

In northwest Pennsylvania, Range continues to monitor offset Utica Shale
activity where the Company has approximately 181,000 net acres of leasehold.

Midcontinent Division –

During the first quarter, the Midcontinent division continued to focus on
Range’s Horizontal Mississippian acreage along the Nemaha Ridge. A total of 17
(16.7 net) wells were turned to sales with average lateral lengths of 3,616
feet with 19 frac stages. Average 7-day rates for the completions were 480
(382 net) boe per day with 78% liquids. Notably, the division drilled the Tyr
24-3N with a 24-hour initial production rate of 1,024 (827 net) boe per day
that was 80% liquids, from a lateral of 3,403 feet with 20 frac stages. The
Balder #1-30N, previously announced in 2012, has now produced a over 68,000
barrels of oil during its first 11 months of production, the average rate
during this time period was 562 (388 net) boe per day with 74% liquids and a
payback period of less than six months.

At the beginning of the year, Range anticipated drilling 51 (42 net) wells
during 2013. As a higher than expected working interest has been realized
during the first quarter, Range now expects to turn to sales a total of 41 to
43 (40 to 42 net) producing wells in 2013; therefore, although the gross
planned producing well count has decreased, the net producing well count is
approximately the same. During the past year, Range has seen over a 30%
reduction in spud to spud cycle times for the Horizontal Mississippian, and is
now averaging less than 25 days. Due to the increased drilling efficiencies
along with fewer gross wells being drilled, Range will complete its 2013
development plan by using fewer rigs and drilling fewer salt water disposal
wells than originally estimated.

In addition, continued activity in the Texas Panhandle is anticipated for most
of 2013 where Range has had success drilling Horizontal St. Louis wells. Range
completed two St. Louis wells in the first quarter and expects to drill
another three to five wells in that area by the end of 2013.

Permian Division –

Range’s Permian division is targeting the Wolfberry and Cline Shale oil plays
in West Texas. Last year, Range drilled six Wolfberry wells that are
continuing to produce above initial forecasts. The average 90-day production
rate for these six wells was 247 (185 net) boe per day with 66% liquids (90
barrels oil, 73 barrels NGLs and 500 mcf gas). In addition to higher
production rates in the Wolfberry, the Company has seen efficiencies in days
to drill, which now average less than 16 days. Range drilled three vertical
Wolfberry wells in the first quarter, and expects to continue activity
throughout the remainder of the 2013. In the Cline Shale, Range will continue
to monitor industry activity in an area where the Company has approximately
100,000 net acre position that is over 90% held by production.

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 first
quarter. The division turned to sales three wells during the quarter. A total
of eight horizontal Huron Shale wells are planned to be drilled in 2013.

Guidance – Second Quarter 2013

Production Guidance:

Production growth for 2013 is targeted at 20% to 25% year-over-year.
Production for the second quarter of 2013 is expected to range between 880 to
890 Mmcfe per day. Liquids are expected to be approximately 20% of second
quarter production. Range expects completions and wells being turned to sales
will be weighted towards the liquids-rich areas. As a result, Range is
expecting liquids production growth during 2013 to be greater than the 20% to
25% year-over-year overall production growth target. Range anticipates that
its first ethane sales contract will become operational during the third
quarter of 2013. The initial volumes are still being coordinated among Range,
the customer and the third-party transportation provider. Currently, the
Company expects to deliver 5,000 barrels per day of ethane over the last six
months of the year. Under the current contract arrangements, Range is
scheduled to increase ethane deliveries under this first ethane arrangement to
15,000 barrels per day at the beginning of 2014. Since ethane deliveries are
FOB the Houston processing plant, the Company is not expected to incur any
additional costs associated with the contract.

Guidance for 2013 Activity:

Under the current plan, which will be subject to change during the year, Range
expects to turn to sales approximately 178 wells in the Marcellus and
Horizontal Mississippian during 2013, as shown below:

                                               Planned Total
                   Wells in First   Remaining    Wells to Sales
                   Quarter 2013    2013 Wells  in 2013
Super-Rich area    20               33           53
Wet area           0                33           33
Dry area (NE & SW) 15              35          50
Total Marcellus    35               101          136
Hz. Mississippian  17              25          42
Total              52               126          178
                                                 

Expense per mcfe Guidance:

Direct operating expense:                           $0.38 - $0.40 per mcfe
Transportation, gathering and compression expense:   $0.82 - $0.84 per mcfe
Production tax expense (a):                          $0.15 - $0.16 per mcfe
Exploration expense:                                 $18 - $20 million
Unproved property impairment expense:                $15 - $17 million
G&A expense:                                         $0.40 - $0.42 per mcfe
Interest expense:                                    $0.58 - $0.59 per mcfe
DD&A expense:                                        $1.46 - $1.48 per mcfe
                                                     

(a) Total production tax expense, including an estimated Pennsylvania impact
fee of $7 million, is expected to be $0.15 - $0.16 per mcfe.

Differential Pricing History (b)

                    4Q 2011  1Q 2012  2Q 2012  3Q 2012  4Q 2012  1Q 2013
Natural Gas          $0.07     ($0.02)   ($0.13)   ($0.03)   $0.18     $0.15
NGL (% of WTI        54%       48%       39%       33%       43%       38%
NYMEX)
Oil (% of WTI        92%       88%       91%       90%       89%       90%
NYMEX)
                                                                       

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

Conference Call Information

A conference call to review the financial results is scheduled on Friday,
April 26 at 9:00 a.m. ET. To participate in the call, please dial 877-407-0778
and ask for the Range Resources first quarter 2013 financial results
conference call. A replay of the call will be available through May 27. To
access the phone replay dial 877-660-6853. The conference ID is 412214.

A simultaneous webcast of the call may be accessed over the Internet at
http://www.rangeresources.com. The webcast will be archived for replay on the
Company's website until May 27.

Non-GAAP Financial Measures:

Adjusted net income comparable to analysts’ estimates as set forth in this
release represents income or loss from operations before income taxes adjusted
for certain non-cash 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. Diluted earnings per share (adjusted)
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 operations to adjusted net income comparable to
analysts’ estimates and diluted earnings per share (adjusted). On its website,
the Company provides additional comparative information on prior periods along
with non-GAAP revenue disclosures.

First quarter 2013 earnings included a loss of $100.3 million for the non-cash
unrealized mark-to-market reduction in value of the Company’s derivatives,
unproved property impairment expense of $15.2 million, a $42.4 million expense
recorded for the mark-to-market in the deferred compensation plan, a $35.0
million provision for possible settlement of a class action lawsuit concerning
post production costs charged to Oklahoma royalty owners in prior years, and
$12.3 million of non-cash stock compensation expenses. Excluding these items,
net income would have been $52.9 million or $0.33 per diluted share. Excluding
similar non-cash items from the prior-year quarter, net income would have been
$24.4 million or $0.15 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 in the
accompanying table.)

Cash flow from operations before changes in working capital as defined 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 operations,
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
by operations 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 oil and natural gas production including the
amounts realized on cash-settled derivatives and net of transportation,
gathering and compression expense 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 derivative transactions and
third party transportation, gathering and compression expense, such
information is now reported in various lines of the income statement. The
Company believes that it is important to furnish a table reflecting the
details of the various components of each income statement line to better
inform the reader of the details of each amount and provide a summary of the
realized cash-settled amounts and third party transportation, gathering and
compression expense 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 unaudited 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

As discussed in this news release, Range has reclassified within total
revenues its financial 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 undesignated hedges and those hedges designated to regions where the
historical correlation between NYMEX and regional prices is “non-highly
effective” or is “volumetric ineffective” due to 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 income
(loss)” in the consolidated statements of operations included in the Company’s
Form 10-Q along with the change in mark-to-market valuations of such
unrealized derivatives. Effective March 1, 2013 the Company de-designated all
commodity contracts and elected to discontinue hedge accounting prospectively.
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 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
future growth in production, low-reinvestment risk, earnings and per-share
value, improved well performance, expected greater capital efficiency, future
rates of return, continued drilling improvements, capital spending plans,
disproportionate growth in liquids production, cost structure improvements,
planned exports, expected drilling and development plans and future 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 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 and environmental risks. 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.

In addition, our production forecasts and expectations for future periods are
dependent upon many assumptions, including estimates of production decline
rates from existing wells and the undertaking and outcome of future drilling
activity, which may be affected by significant commodity price declines or
drilling cost increases. Investors are urged to consider closely the
disclosure in our most recent Annual Report on Form 10-K, available from our
website at www.rangeresources.com or by written request to 100 Throckmorton
Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form
10-K 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 per                           
share data)
                                           Three Months Ended March 31,
                                            2013           2012          %
Revenues and other income:
    Natural gas, NGLs and oil sales (a)     $ 398,239      $317,617
    Derivative cash settlements gain          382          (7,829    )
    (loss) (a) (b)
    Change in mark-to-market on
    unrealized derivatives                    (96,802  )   (52,056   )
    gain (loss) (b)
    Ineffective hedging (loss) gain (b)       (3,455   )   (948      )
    Gain (loss) on sale of properties         (166     )   (10,426   )
    Brokered natural gas and marketing        21,058       3,275
    Equity method investment (c)              (80      )   316
    Other (c)                                63          1,006     
    Total revenues and other income          319,239     250,955      27  %
Costs and expenses:
    Direct operating                          29,527       28,665
    Direct operating – non-cash stock         661          357
    compensation (d)
    Transportation, gathering and             62,416       40,820
    compression
    Production and ad valorem taxes           11,383       12,634
    Pennsylvania impact fee - prior year      -            24,000
    Brokered natural gas and marketing        22,066       3,609
    Brokered natural gas and marketing –
    non-cash stock-
    based compensation (d)                    249          453
    Exploration                               15,710       20,588
    Exploration – non-cash stock              1,070        928
    compensation (d)
    Abandonment and impairment of             15,218       20,289
    unproved properties
    General and administrative                35,354       30,055
    General and administrative – non-cash
    stock                                     10,306       8,158
    compensation (d)
    General and administrative – lawsuit      38,398       516
    settlements
    Deferred compensation plan (e)            42,360       (7,830    )
    Interest expense                          42,210       37,205
    Loss on early extinguishment of debt      -            -
    Depletion, depreciation and               115,101      100,151
    amortization
    Impairment of proved properties and      -           -         
    other assets
    Total costs and expenses                 442,029     320,598      38  %
                                                                         
Income (loss) from continuing operations      (122,790 )   (69,643   )   -76 %
before income taxes
                                                                         
Income tax expense (benefit):
    Current                                   25           -
    Deferred                                 (47,205  )   (27,843   )
                                             (47,180  )   (27,843   )
                                                                         
Net income (loss)                           $ (75,610  )   $ (41,800 )   -81 %
                                                                         
Income (Loss) Per Common Share:
                                                                         
    Basic                                   $ (0.47    )   $ (0.26   )
    Diluted                                 $ (0.47    )   $ (0.26   )
                                                                         
Weighted average common shares
outstanding, as reported:
    Basic                                     160,125      158,913       1   %
    Diluted                                   160,125      158,913       1   %
                                                                             

(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 Brokered natural gas, marketing and other revenues in the
        10-Q.
        Costs associated with stock compensation and restricted stock
(d)     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
                                                              
                                                                 
BALANCE SHEETS
(In thousands)                                   March 31,       December 31,
                                                 2013            2012
                                                 (Unaudited)     (Audited)
Assets
Current assets                                   $ 169,464       $ 190,062
Current unrealized derivative gain                 23,052          137,552
Assets held for sale                               165,478         -
Deferred tax asset                                 12,646          -
Natural gas and oil properties                     6,183,948       6,096,184
Transportation and field assets                    38,299          41,567
Other                                             273,644       263,370   
                                                 $ 6,866,531    $ 6,728,735 
                                                                 
Liabilities and Stockholders’ Equity
Current liabilities                              $ 577,289       $ 448,202
Current asset retirement obligation                2,366           2,470
Current unrealized derivative loss                 19,662          4,471
Current liabilities held for sale                  8,346           -
Bank debt                                          47,000          739,000
Subordinated notes                                2,889,505     2,139,185 
                                                  2,936,505     2,878,185 
                                                                 
Deferred tax liability                             683,857         698,302
Unrealized derivative loss                         8,370           3,463
Deferred compensation liability                    222,700         187,604
Long-term asset retirement obligation and         150,044       148,646   
other
                                                   1,064,971       1,038,015
                                                                 
Common stock and retained earnings                 2,205,108       2,278,243
Treasury stock                                     (3,767    )     (4,760    )
Accumulated other comprehensive income            56,051        83,909    
Total stockholders’ equity                        2,257,392     2,357,392 
                                                 $ 6,866,531    $ 6,728,735 
                                                                             
                                                                             

RANGE RESOURCES CORPORATION
                                                                
                                                                   
CASH FLOWS FROM OPERATING ACTIVITIES
                                                     Three Months Ended
(Unaudited, in thousands)
                                                     March 31,
                                                     2013          2012
                                                                   
Net income (loss)                                    $ (75,610 )   $ (41,800 )
Adjustments to reconcile net cash provided from
continuing operations:
(Gain) loss from equity investment, net of             610           251
distributions
Deferred income tax expense (benefit)                  (47,205 )     (27,843 )
Depletion, depreciation, amortization and proved       115,101       100,151
property impairment
Exploration dry hole costs                             (159    )     709
Abandonment and impairment of unproved properties      15,218        20,289
Mark-to-market (gain) loss on oil and gas              96,802        52,056
derivatives not designated as hedges
Unrealized derivatives (gain) loss                     3,455         948
Amortization of deferred issuance costs, loss on       2,080         1,848
extinguishment of debt, and other
Deferred and stock-based compensation                  54,991        2,508
Gain (loss) on sale of assets and other                166           10,426
                                                                   
Changes in working capital:
Accounts receivable                                    1,292         11,947
Inventory and other                                    166           (897    )
Accounts payable                                       5,775         8,962
Accrued liabilities and other                         28,567      16,422  
Net changes in working capital                        35,800      36,434  
Net cash provided from operating activities          $ 201,249    $ 155,977 
                                                                             
                                                                             
RECONCILIATION OF NET CASH PROVIDED FROM OPERATING
ACTIVITIES, AS
REPORTED, TO CASH FLOW FROM OPERATIONS BEFORE
CHANGES IN
WORKING CAPITAL, a non-GAAP measure
                                                     Three Months Ended
(Unaudited, in thousands)
                                                     March 31,
                                                     2013          2012
                                                                   
Net cash provided from operating activities, as      $ 201,249     $ 155,977
reported
Net changes in working capital from continuing         (35,800 )     (36,434 )
operations
Exploration expense                                    15,869        19,879
Lawsuit settlements                                    38,398        516
Equity method investment distribution /                (531    )     (566    )
intercompany elimination
Prior year Pennsylvania impact fee                     -             24,000
Non-cash compensation adjustment                      (206    )    (388    )
Cash flow from operations before changes in          $ 218,979    $ 162,984 
working capital, a non-GAAP measure
                                                                   
                                                                   
                                                                   
ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING
                                                     Three Months Ended
(Unaudited, in thousands)
                                                     March 31,
                                                     2013          2012
Basic:
Weighted average shares outstanding                    162,840       161,739
Stock held by deferred compensation plan              (2,715  )    (2,826  )
Adjusted basic                                        160,125     158,913 
                                                                   
Dilutive:
Weighted average shares outstanding                    162,840       161,739
Dilutive stock options under treasury method          (2,715  )    (2,826  )
Adjusted dilutive                                     160,125     158,913 
                                                                             
                                                                             





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
(Unaudited, in thousands, except per   Three Months Ended March 31,
unit data)
                                       2013             2012             %
Natural gas, NGLs and oil sales
components:
Natural gas sales                      $ 253,945        $ 128,068
NGLs sales                               67,571           76,498
Oil and condensate sales                 78,000           55,422
                                                                         
Cash-settled hedges (effective):
Natural gas                              (1,379     )     57,629
Crude oil                               102            -          
Total natural gas, NGLs and oil        $ 398,239       $ 317,617       25  %
sales, as reported
                                                                         
Derivative fair value income (loss)
components:
Cash-settled derivatives
(ineffective):
Natural gas                            $ 1,379          $ 1,185
NGLs                                     (895       )     (4,392     )
Crude Oil                                (102       )     (4,622     )
Change in mark-to-market on              (96,802    )     (52,056    )
unrealized derivatives
Unrealized ineffectiveness              (3,455     )    (948       )
Total derivative fair value income     $ (99,875    )   $ (60,833    )
(loss), as reported
                                                                         
Natural gas, NGLs and oil sales,
including all cash-settled
derivatives (c):
Natural gas sales                      $ 253,945        $ 186,882
NGL sales                                66,676           72,106
Oil and condensate sales                78,000         50,800     
Total                                  $ 398,621       $ 309,788       29  %
                                                                         
Third party transportation,
gathering and compression fee
components:
Natural gas                            $ 59,241         $ 38,506
NGLs                                    3,175          2,314      
Total transportation, gathering and    $ 62,416        $ 40,820     
compression, as reported
                                                                         
Production during the period (a):
Natural gas (mcf)                        62,023,956       46,633,207     33  %
NGLs (bbl)                               1,889,424        1,560,826      21  %
Oil and condensate (bbl)                 912,662          608,077        50  %
Gas equivalent (mcfe) (b)                78,836,472       59,646,625     32  %
                                                                         
Production – average per day (a):
Natural gas (mcf)                        689,155          512,453        34  %
NGLs (bbl)                               20,994           17,152         22  %
Oil and condensate (bbl)                 10,141           6,682          52  %
Gas equivalent (mcfe) (b)                875,961          655,457        34  %
                                                                         
Average prices, including
cash-settled hedges and derivatives
before third party transportation
costs (c):
Natural gas (mcf)                      $ 4.09           $ 4.01           2   %
NGLs (bbl)                             $ 35.29          $ 46.20          -24 %
Oil and condensate (bbl)               $ 85.46          $ 83.54          2   %
Gas equivalent (mcfe) (b)              $ 5.06           $ 5.19           -3  %
                                                                         
Average prices, including
cash-settled hedges and derivatives
(d):
Natural gas (mcf)                      $ 3.14           $ 3.18           -1  %
NGLs (bbl)                             $ 33.61          $ 44.71          -25 %
Oil and condensate (bbl)               $ 85.46          $ 83.54          2   %
Gas equivalent (mcfe) (b)              $ 4.26           $ 4.51           -5  %
                                                                         
Transportation, gathering and          $ 0.79           $ 0.68           16  %
compression expense per mcfe
                                                                             

(a)   Represents volumes sold regardless of when produced.
        Oil and NGLs are converted at the rate of one barrel equals six mcfe
(b)     based upon the approximate relative energy content of oil to 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, except per        Three Months Ended March 31,
share data)
                                            2013           2012          %
                                                                         
(Loss) income from continuing operations    $ (122,790 )   $ (69,643 )   76  %
before income taxes, as reported
Adjustment for certain special items:
Gain (loss) on sale of properties             166            10,426
Change in mark-to-market on unrealized        96,802         52,056
derivatives (gain) loss
Unrealized derivative (gain) loss             3,455          948
Abandonment and impairment of unproved        15,218         20,289
properties
Prior year Pennsylvania impact fee            -              24,000
Lawsuit settlements                           38,398         516
Brokered natural gas and marketing – non
cash stock-based
compensation                                  249            453
Direct operating – non-cash stock-based       661            357
compensation
Exploration expenses – non-cash               1,070          928
stock-based compensation
General & administrative – non-cash           10,306         8,158
stock-based compensation
Deferred compensation plan – non-cash        42,360       (7,830  )
adjustment
Income from operations before income          85,895         40,658      111 %
taxes, as adjusted
                                                                         
Income tax expense, as adjusted
Current                                       25             -
Deferred                                     32,993       16,244  
Net income excluding certain items, a       $ 52,877      $ 24,414     117 %
non-GAAP measure
                                                                         
Non-GAAP income per common share
Basic                                       $ 0.33        $ 0.15       120 %
Diluted                                     $ 0.33        $ 0.15       120 %
                                                                         
Non-GAAP diluted shares outstanding, if      160,996      159,858 
dilutive
                                                                         
                                                                         

HEDGING POSITION AS OF APRIL 23, 2013 –

(Unaudited)
                                         
                             Daily Volume   Hedge Price
Gas (Mmbtu)
2Q 2013 Swaps                255,000        $3.63
2Q 2013 Collars              280,000        $4.59 - $5.05
3Q 2013 Swaps                270,000        $3.68
3Q 2013 Collars              280,000        $4.59 - $5.05
4Q 2013 Swaps                263,370        $3.74
4Q 2013 Collars              280,000        $4.59 - $5.05
                                            
2014 Swaps                   20,000         $4.08
2014 Collars                 417,500        $3.82 - $4.47
                                            
2015 Collars                 115,000        $4.05 - $4.54
                                            
Oil (Bbls)
2Q 2013 Swaps                4,825          $96.64
2Q 2013 Collars              3,000          $90.60 - $100.00
3Q 2013 Swaps                5,825          $96.74
3Q 2013 Collars              3,000          $90.60 - $100.00
4Q 2013 Swaps                6,825          $96.79
4Q 2013 Collars              3,000          $90.60 - $100.00
                                            
2014 Swaps                   6,000          $94.54
2014 Collars                 2,000          $85.55 - $100.00
                                            
2015 Swaps                   2,000          $90.20
                                            
C5 Natural Gasoline (Bbls)
2Q 2013 Swaps                6,500          $2.134
3Q 2013 Swaps                6,500          $2.134
4Q 2013 Swaps                6,500          $2.134
                                            
C3 Propane (Bbls)
2Q 2013 Swaps                7,000          $0.934
3Q 2013 Swaps                7,000          $0.934
4Q 2013 Swaps                7,000          $0.934
                                            
2014 Swaps                   1,000          $0.96
                                            

     NOTE: SEE WEBSITE FOR OTHER SUPPLEMENTAL INFORMATION FOR THE PERIODS

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
Research Manager
or
Michael Freeman, 817-869-4264
Financial Analyst
or
Media Contact:
Matt Pitzarella, 724-873-3224
Director of Corporate Communications
www.rangeresources.com
 
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