Range Resources expects benefits from NGL exports
Range Resources, a US-based shale company, said April 26 it expected to see long-term benefits from the growing international demand for natural gas liquids.
Range said its total production during the first quarter averaged 2.1bn ft3 equivalent/day, with 70% coming from natural gas. Full-year guidance was forecast at 2.15bn ft3 equivalent/day. Nearly all of its production comes from the Marcellus basin, situated within the broader Appalachia shale.
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For end-users, Range said it expects to see strength internationally.
“Range expects near-term and long-term benefits of natural gas liquids (NGL) exports out of the Northeast as international demand for NGL products continues to grow,” the company said. “NGL exports out of Marcus Hook provide Range a unique supply option for that demand.”
Operated by Energy Transfer, the Marcus Hook export facility is based in Pennsylvania and is among the first to export NGLs out of the US.
Based in Texas, but focused on the Appalachia shale basin spread out over the Ohio River valley and the Great Lakes states, Range reported first quarter net income of $27mn, down from $166mn in the same period last year.
Total sales of oil and natural gas in Q1 2021 increased to $603mn from $432mn in Q1 2020. On spending, Range said it set a capital budget for 2021 at $425mn. Capital spending in Q1 was $105mn.
“There were sizeable improvements in pricing quarter-over-quarter leading to Range’s $193mn in cash flow from operations before changes in working capital,” CEO Jeff Ventura said. “The corresponding capital spending of $105mn generated solid free cash flow for the quarter.”