Range Resources Sets 2015 Capital Spending Budget At $1.3 Bl

(RTTNews) - Range Resources Corp. (RRC) announced its 2015 capital budget and the initial results from its Utica/Point Pleasant well located in Washington County, Pennsylvania.

The firm has set its 2015 capital spending budget at $1.3 billion, down 18% compared with its 2014 capital budget. Owing to improving capital efficiencies from its Marcellus activities, Range expects to continue to deliver year-on-year production growth in the 20% to 25% range despite the reduction in its capital budget. The 2015 capital budget includes nearly $1.065 billion for drilling and recompletions, $155 million for leasehold and renewals, $55 million for pipeline tie-ins and facilities and $25 million for seismic and other. By division, the 2015 capital budget is approximately 92% directed to the Marcellus, Southern Appalachia 4% and Midcontinent 4%.

Range would increase the lateral lengths and the number of frac stages for its 2015 Marcellus wells to average 6,200 feet with 31 frac stages, or approximately 200 feet between stages. The laterals for a third of the 2015 wells are expected to be over 7,000 feet as the firm continues to optimize its well designs.

Also, the company said its Utica/Point Pleasant well located in Washington County, Pennsylvania achieved an average 24-hour test rate of 59.0 Mmcf per day against simulated pipeline pressure and conditions during the initial flow back.

Separately, the company announced the appointment of Jeff Ventura as Chairman of the Board, effective January 1, 2015. He would replace John Pinkerton, who has served as the company's Chairman since 2008. Ventura would continue to serve as the firm's President and Chief Executive. Pinkerton would continue to serve as a director, while Richard Eales would stay as the lead independent director.