Range Signs Asset Exchange Agreement
FORT WORTH, TX -- (Marketwired) -- 04/30/14 -- Range Resources
Corporation (NYSE: RRC) today announced the execution of an agreement
to exchange producing properties and other assets with EQT
Corporation (NYSE: EQT).
Range will transfer to EQT ownership of approximately 73,000 net
acres and related assets in Glasscock and Sterling Counties, Texas
comprising all of Range's Conger properties, which are largely held
by production. The Conger properties are currently producing
approximately 28 Mmcfe per day with 62% being liquids primarily from
the Cisco/Canyon. These Permian Basin properties have multiple
horizontal and vertical stacked pay drilling opportunities in the
Wolfcamp, Cline and Wolfberry horizons.
EQT will transfer to Range ownership of EQT's operated interest
covering 138,000 net acres and their 50% interest in 1,200 miles of
gathering pipelines and compression in the Nora Field of Virginia,
giving Range 100% ownership of that asset. In addition, Range will
receive $145 million in cash. The Nora properties Range will receive
are currently producing approximately 41 Mmcf per day. These
properties have multiple vertical and horizontal stacked pay drilling
opportunities in the coalbed methane, conventional tight gas
intervals and Devonian shale horizons. Range's 2014 capital
expenditure budget will remain unchanged at $1.52 billion.
The exchange is subject to satisfaction of customary closing
conditions, final due diligence and customary post closing
adjustments. The transaction is anticipated to be completed in the
second quarter of 2014.
Range has posted on its website a presentation describing the assets
it is receiving in this exchange and the size and scale implications
of owning 100% of the working interest and the royalty interest in
the Virginia properties now owned by Range. Highlights of the slides
-- Moves Range's net Virginia production from 70 Mmcf per day to 111 Mmcf
per day at closing from the new combined 385,000 gross and net acres
owned by Range in Virginia.
-- Range will now have full ownership and operation of the approximately
1,530 miles of gathering and 83,000 hp of compression in the
Nora/Haysi combined fields.
-- Multiple stacked pay opportunities include coalbed meth
ane, tight gas
intervals and Devonian shales.
-- All property is held by production with Range owning the majority of
the minerals across the area.
-- The property is significantly under-developed compared to the
surrounding fields in Kentucky, West Virginia and Virginia.
-- Range estimates that the exchanged property comprises a net unproved
resource potential of 2 Tcfe increasing Range's net unproved resource
potential in the Virginia properties to 5 Tcfe which is largely
de-risked from the historical drilling.
-- The Nora/Haysi combined properties are strategically located along the
East Tennessee pipeline which interconnects with the Atlantic coastal
Transco pipeline segment through the Patriot pipeline system to
Transco Zone 5.
-- 3 Bcf per day of new natural gas demand is expected in the southeast
area of the United States in the next four to five years.
-- The Commonwealth of Virginia alone is expected to add 1 Bcf per day of
demand from new natural gas generated power plants in the near future.
-- Nora is strategically positioned to provide natural gas to these
growing markets while allowing Range to market Marcellus natural gas
through additional market contacts, exchange gas agreements and having
access to two additional direct market pipelines.
RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading independent oil
and natural gas producer with operations focused in Appalachia and
the Midcontinent 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
About EQT Corporation:
EQT Corporation is an integrated energy company with emphasis on
Appalachian area natural gas production, gathering, and transmission.
EQT is the general partner and significant equity owner of EQT
Midstream Partners, LP. With more than 125 years of experience, EQT
continues to be a leader in the use of advanced horizontal drilling
technology -- designed to minimize the potential impact of
drilling-related activities and reduce the overall environmental
footprint. Through safe and responsible operations, the Company is
committed to meeting the country's growing demand for clean-burning
energy, while continuing to provide a rewarding workplace and enrich
the communities where its employees live and work. Company shares are
traded on the New York Stock Exchange as EQT. Visit EQT Corporation
All statements, except for statements of historical fact, made in
this release regarding activities, events or developments the Company
expects, believes or anticipates will or may occur in the future,
such as those regarding the final consummation of the transactions,
satisfaction of the required conditions to closing, expected future
strategic marketing position, expected future demand growth,
estimated unproved resource potential 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
r classifications. The SEC's rules prohibit us from including
in filings with the SEC these broader classifications of reserves.
These estimates are by their nature more speculative than estimates
of proved, probable and possible reserves and accordingly are subject
to substantially greater risk of actually being realized. Unproved
resource potential refers to Range's internal estimates of
hydrocarbon quantities that may be potentially discovered through
exploratory drilling or recovered with additional drilling or
recovery techniques and have not been reviewed by independent
engineers. Unproved resource potential does not constitute reserves
within the meaning of the Society of Petroleum Engineer's Petroleum
Resource Management System and does not include proved reserves. Area
wide unproven resource potential has not been fully risked by Range's
management. "EUR," or estimated ultimate recovery, refers to our
management's estimates of hydrocarbon quantities that may be
recovered from a well completed as a producer in the area. These
quantities may not necessarily constitute or represent reserves
within the meaning of the Society of Petroleum Engineer's Petroleum
Resource Management System or the SEC's oil and natural gas
disclosure rules. Actual quantities that may be recovered from
Range's interests could differ substantially. Factors affecting
ultimate recovery include the scope of Range's drilling program,
which will be directly affected by the availability of capital,
drilling and production costs, commodity prices, availability of
drilling services and equipment, drilling results, lease expirations,
transportation constraints, regulatory approvals, field spacing
rules, recoveries of gas in place, length of horizontal laterals,
actual drilling results, including geological and mechanical factors
affecting recovery rates and other factors. Estimates of resource
potential may change significantly as development of our resource
plays provides additional data. 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
Range Investor Contacts:
Senior Vice President
Investor Relations Manager
Range Media Contact:
Director of Corporate Communications
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