[after the bell]
Range Resources Corp.'s (RRC) first-quarter net income soared more than 11-fold on noncash hedging gains.
"While our financial results reflect the decline in oil and gas prices, our operating results were strong, reflecting excellent first-quarter drilling results," said Chief Executive John H. Pinkerton.
He added that the oil and gas company's unit-operating and service costs fell, and Range used its capital budget to tie up key leases on attractive terms, especially in the Marcellus Shale area.
The company expects to reduce debt during the rest of the year with lower capital spending and asset sales. Range predicted Marcellus production of 80 million to 100 million of cubic feet equivalent per day by the end of 2009 and double that in 2010.
Oil-and-gas producers, such as Range, have been hurt by the plunge in energy commodity prices as well as lower demand amid the recession. Range is focusing on drilling in the Barnett Shale, Nora Field and Marcellus Shale, which it believes provide attractive rates of return at current prices.
Range reported net income of $32.6 million, or 21 cents a share, up from $1.7 million, or 1 cents a share, a year earlier.
Excluding items, earnings fell to 24 cents a share from 63 cents.
Revenue climbed 35% to $276.4 million.
Analysts' estimates were for per-share earnings of 21 cents on revenue of $252.9 million, according to a poll by Thomson Reuters.
Oil and gas sales fell 34% to $203.2 million.
Production grew 12% to an average of 416 million of cubic feet equivalent per day.
Realized prices fell 31% to an average of $6.62 per thousand cubic feet equivalent. The average gas price fell 30% to $6.47 per per thousand cubic feet, and the average oil price decreased 15% to $59.64 a barrel.
Earlier this month, Range said first-quarter production was higher than expected - it rose sequentially for the 25th straight quarter - though the number of operating rigs was less than half of the prior-year level.
Range's shares were at $41.20, up 0.2%, in after-hours trading. The stock price is up 19% this year. |
