Range posts loss for quarter, despite increased production
Range Resources Corp. continues to increase production but isn’t immune to low natural gas prices, having posted a $29.8 million loss for the third quarter as compared to a $285 million gain for the same time last year.
The Fort Worth-based company currently employs 15 rigs, down from 23 rigs last year, and continues to increase its production; natural gas and oil production averaged 437 million cubic feet per day during the quarter, a 13 percent increase compared to the third quarter 2008.
Its Marcellus Shale assets are a focus, with 54 wells in production, 77 horizontal wells drilled in total and six operating rigs in the area. Production is expected to reach at least 90 MMcfe by the end of the year and its gross gas processing capacity is expected to increase to 155 MMcfe per day by January 2010 as midstream infrastructure is built.
Despite the quarterly loss, the company’s board of directors increased its 2009 budget from $700 million to $740 million and its production growth target from 10 percent to 13 percent.
Barnett Shale production averaged 123 MMcfe per day during the quarter. Eight wells in southern Tarrant County were completed, as were another eight wells in Hood County.
“While our financial results suffered from lower commodity prices, our operating results were the best in our company’s history,” said John H. Pinkerton, chairman and CEO, in a statement.
Texas still breezing by other states in wind energy construction
Texas continues to lead the nation in wind project installations with about 8,800 megawatts of capacity, more than the second, third and fourth states’ combined capacity, according to the latest American Wind Energy Association report.
The AWEA, which tracks wind energy trends nationwide and abroad, reported that Texas led the nation in most capacity added during the third quarter, with 18 projects completed throughout 2009 and another three projects on the way, according to the Oct. 20 report.
Following Texas in most capacity installed to date are Iowa, California, Minnesota and Oregon. During the most recent quarter, Arizona launched its first large-scale project, bringing wind projects to 36 states. States lacking wind projects are Nevada and the entire southeastern United States, from Louisiana to Florida and up to Virginia.
More than 1,600 MW of new wind power capacity was brought online in the third quarter of 2009. The industry has installed more than 5,800 MW of new wind power in 2009, ahead of the same time last year. More than 1,700 MW of new construction starts have been initiated since the beginning of the third quarter, bringing the total amount under construction to more 5,000 MW. Fourth quarter 2009 isn’t expected to be as robust.
jtronche@bizpress.net
