Range looks to sell Permian basin assets; focus on Marcellus
BY SAABIRA CHAUDHURI
HOUSTON -- Range Resources Corp. said it has hired Bank of America Corp. to market some of its Permian Basin properties in southeast New Mexico and West Texas as the company looks to fund projects in 2013 like drilling and recompletions, and focus on the Marcellus liquids-rich area and its Horizontal Mississippian play.
Range said its $1.3 billion capital spending budget includes about $1.1 billion for drilling and recompletions, $100 million for leasehold and renewals, $75 million for pipelines and facilities and $25 million for seismic.
The company noted that about 85% of the budget will be targeted toward liquids-rich and oil projects predominately in the Marcellus Shale and Horizontal Mississippian plays.
Range said the Marcellus liquids-rich area and its Horizontal Mississippian play have the highest estimated rates of return in its portfolio. Range has a combined acreage position in these two areas of about 500,000 acres providing a multi-year growth platform.
It said it will reduce dry gas drilling activity, primarily in northeastern Pennsylvania where it will reduce its activity from four to five rigs in 2012 to one rig in 2013.
In October, Range said its third-quarter production jumped 47% from a year earlier, due to success of the company' s drilling program in the Marcellus and horizontal Mississippian oil plays.
That same month, the independent producer reported that it had swung to a third-quarter loss as hedging losses weighed on bottom-line results, though production volumes increased.
Shares closed Tuesday at $64.67 and were inactive in recent premarket trading. The stock has fallen 8.6% in the past three months.
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