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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (61849)	3/9/2000 10:53:00 AM
From: SliderOnTheBlack	Read Replies (1) \| Respond to of 95453

Buy RRC into this retrace... a gift ! Stops getting run here... biz.yahoo.com The key is RRC's hedging going forward - they did the right thing locking in postive commodity prices here. <<Production rose 9% during the year to an average of 183 Mmcfe per day. Gas production rose 12% to 139 Mmcf per day as oil and liquids production remained level at approximately 7,300 barrels per day. Realized oil prices increased 23% to $14.72 per barrel and natural gas prices decreased 9% to $2.13 per Mcf. The Company's average price per Mcfe for the year fell 2% to $2.18>> ...* RRC just made a very savy hedging move locking in prices on 70% of their gas at prices over 27% higher than they just realized ! re: <<. At present, the Company has approximately 70% of its anticipated 2000 production hedged or being sold under fixed price contracts. These arrangements are at average prices of $22.43 per barrel and $2.70 per Mcf. These prices represent increases of 52% and 27%, respectively, over those realized in 1999. >> Production - proved reserve declines are due to property sales re: <<Proved reserves at year-end totaled 616.7 Bcfe, a 23% decrease during the year. The decline was due primarily to property sales. The pretax present value of the reserves remained virtually unchanged at $555.6 million as a 129% increase in oil prices offset the decline in reserve volumes. Gas prices were level between the periods. Wellhead prices utilized at year-end to calculate the present value of the reserves averaged $23.49 per barrel and $2.34 per Mcf. Reserves declined 177.2 Bcfe due to property sales, 66.8 Bcfe due to production and 31.5 Bcfe as a result of downward revisions. The revisions resulted from the completion of in-depth field studies on the performance of certain major fields acquired in 1997 and 1998. Reserves were increased by 83.2 Bcfe due to property purchases and by 12.9 Bcfe of additions, extensions and discoveries. Despite the overall decline in reserves, the Company retained an 11.3 year reserve life ratio at year-end. >> ...* I like the 11.3 year reserve life <<The Company has established a capital budget for the year of approximately $45 million. From a beginning of the year rate of roughly 150 Mmcfe per day, the Company anticipates modestly increasing production in each quarter of the year. By continuing to hedge and selling additional non-strategic assets, Range anticipates that internal cash flow will fully fund its capital budget while continuing to reduce debt. The portion of the 2000 capital program allocated to drilling activities is $40 million and currently includes the drilling of 199 wells and 56 recompletions. Approximately 60% of the capital is associated with moving undeveloped reserves to the producing status, while the remaining 40% is attributable to projects which, if successful, will add reserves. The remaining budget is targeted for purchasing incremental interests in existing properties and for leasehold acquisition. >> ...* the debt reduction story continues - sticking to the gameplan <<Cash flow rose 22% to $60.9 million, or $1.59 per share excluding non-recurring items>> Stock is on sale again today at near 1.5 x cfps and they just hedged a 27% increase in Gas prices for 70% of production - do the math... <<. By year-end, parent company bank debt had been cut over 60% to $140 million from $367 million one year earlier. Total bank debt, including the non-recourse debt of subsidiaries, was reduced by $145 million to $282 million. The Company also completed a shelf registration statement to facilitate the exchange or retirement of convertible debt and preferred securities. In 1999, 700,000 shares of common stock were issued in exchange for $6.0 million face amount of convertible securities at a discount. Subsequent to year-end, a further 1.8 million shares have been issued to retire $9.6 million of convertible securities. The Company expects to pursue additional exchanges to help accelerate the reduction of its debt and fixed charges.>> ...* retiring these "hedged" convertibles will lift the pressure on the common stock. Average in and chase this one all the way down - shakeout this am is to buy into... chase it - buy it imho !