NEWS RELEASE
RANGE INCREASES CAPITAL SPENDING
FORT WORTH,
TEXAS, January 21, 2003…RANGE RESOURCES CORPORATION (NYSE: RRC) today
announced today that it had set a $105 million capital budget for 2003, a 17%
increase over the prior year's expenditures.
The budget includes $89 million of drilling and recompletions, $12
million for land and seismic and $4 million to be spent on gathering systems
and facilities. Minor acquisitions will
continue to be pursued but are considered too unpredictable to be budgeted. With hedges in place covering almost 75% of
forecast 2003 production, 2003 capital is expected to be funded with less than
80% of internal cash flow. Excess cash
flow may be used to retire debt, to fund acquisitions or to increase
the capital budget.
In 2002, approximately $90
million was spent on capital projects and an additional $14 million on
acquisitions. In the course of the
year, the Company participated in the drilling of 328 gross (180.7 net) wells
and 36 gross (28.1 net) recompletions.
Production for the year approximated 54.9 Bcfe or an average of 150
Mmcfe per day. By year-end, production
had risen to a rate of 156 Mmcfe a day.
During 2003, the Company expects to drill 326 gross (173.4 net) wells
and to undertake 37 gross (26.9 net) recompletions. Approximately half of the budgeted spending
has been allocated to the Southwest (including the
Commenting, John H.
Pinkerton, Range’s President, said, “While our year-end engineering is not yet
complete, last year's drilling was clearly very successful. On a preliminary basis, we believe we have
more than replaced production with the drill bit. The increase in the 2003 capital budget
reflects that success, rising energy prices and our growing inventory of
attractive drilling projects. We expect
2003 drilling to again comfortably replace production and, at current oil and
gas prices, to generate exceptional rates of return."
RANGE
RESOURCES CORPORATION is an independent oil and gas company operating in the Permian,
Midcontinent,
2003-1
Contact: Rodney Waller, Senior Vice President
Karen Giles
(817) 870-2601
Except
for historical information, statements made in this release, including those
relating to expected capital expenditures, acquisitions, production growth,
reserve additions and rates of return are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These statements are based on assumptions and
estimates that management believes are reasonable based on currently available
information; however, management’s assumptions and the Company’s future
performance are subject to a wide range of business risks and uncertainties and
there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual
results to differ materially from those in the forward-looking statements,
including, but not limited to, the volatility of oil and gas prices, the costs
and results of drilling and operations, the timing of production, mechanical
and other inherent risks associated with oil and gas production, weather, the
availability of drilling equipment, changes in interest rates, litigation,
uncertainties about reserve estimates, and environmental risks. The Company undertakes no obligation to
publicly update or revise any forward-looking statements. Further information on
risks and uncertainties is available in the Company’s filings with the
Securities and Exchange Commission, which are incorporated by reference.