(1888PressRelease)
May 05, 2009 - The Fort Worth-based energy company also announced that production increased 12 percent compard to the previous year’s quarter to hit 415.8 million cubic feet equivalent (Mmcfe). Revenue for the company increased 35 percent to $276.4 million, up from $205.3 million a year earlier.
“While our financial results reflect the decline in oil and gas prices, our operating results were strong, reflecting excellent first-quarter drilling results,” said John Pinkerton, Range Resources’ chairman and CEO, in a press release. “On the cost side of our business, unit operating costs continued to decline, and we are seeing significant decreases in service costs. In regard to our capital budget, we expended the majority of our leasehold budget in the first quarter to tie up key leases on attractive terms, especially as it relates to the Marcellus Shale play.”
Range officials said they have ordered six custom-designed drilling rigs for the Marcellus Shale area, which is located primarily in West Virginia, Pennsylvania and New York. The company announced it plans to drill more than 60 horizontal wells in the play during 2009.
But the company also is seeing encouraging signs in the Barnett Shale. Despite the deployment of only three rigs – down from six – in the area, production continues to increase. For March, Barnett Shale production averaged 125 Mmcfe per day. One new well in southern Tarrant County has averaged 9.6 Mmcfe per day for
its first 30 days of production and is believed to be the highest 30-day average for a Barnett Shale well, according to the company.
The company also announced five new Barnett Shale wells — in southeast Tarrant County and northwest Ellis County — tested at a combined rate of 19 Mmcfe per day. Range Resources plans to continue with a three-rig program for the remainder of 2009 in the Barnett Shale.
Encore’s first-quarter profit falls
Encore Acquisition Co. reported a quarterly profit April 22 of $12.2 million, or 23 cents a share, down from $58.3 million, or $1.08 a share, for the same period last year.
The Fort Worth-based company reported a net loss of $7.6 million, or 15 cents a share. Oil and natural gas revenue dropped 58 percent to $113.5 million.
In a press release, the company said it was hurt by falling oil and gas revenue and higher expenses. Encore also will offer notes to repay borrowings under its outstanding credit facility.
“We are pleased with our first quarter results,” said Jon S. Brumley, Encore’s CEO and president, in the press release. “We beat guidance by 1,900 barrels of oil equivalent per day and were under budget on capital expenditures. The main reasons for the production beat were better performance from our largest field, the Cedar Creek Anticline, and the drill wells coming in higher than expectations. We are focused on reducing debt in 2009 and our shallow declining properties allow us to approximately match our capital expenditures to cash flow for the remainder of the year. In this market, having an oil-weighted property base gives us an advantage over our gas weighted peers. Oil is higher margin and longer lived than gas. Encore’s resilient properties and quality is starting to shine through.”
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