Range Resources To Cuts Capital Spending, Names CEO Ventura As Chairman

(RTTNews) - Oil and gas company Range Resources Corp. (RRC) said Monday that it has lowered its capital spending budget for 2015 by 18 percent from last year. However, the company maintained its production growth forecast for the year.

The company also said that it has appointed President and CEO Jeff Ventura to the added role of chairman of the board, effective January 1, 2015.

Range Resources has set its 2015 capital spending budget at $1.3 billion, down 18 percent from the 2014 capital budget. However, due to improving capital efficiencies from its Marcellus activities, Range Resources continues to expect year-over-year production growth in a range of 20 percent to 25 percent range despite the reduction in its capital budget.

Range Resources said that its 2015 capital budget includes about $1.07 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, about 92 percent of the 2015 capital budget directed to the Marcellus, while 4 percent each will be directed to Southern Appalachia and Midcontinent.

Range Resources also said that 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.

Jeff Ventura, President and CEO of Range Resources, said, "Given our 400,000 net acre acreage position in the area, coupled with existing well control and 3-D seismic, we believe this translates into significant potential. Being able to drill additional Utica wells on the same locations as our Marcellus wells should further enhance our capital efficiency for many years to come."

In a separate statement, Range Resources said its board of directors has appointed Jeff Ventura as chairman of the board effective January 1, 2015.

Ventura will replace John Pinkerton, who has served as the company's chairman since 2008. He will also continue to serve as the company's President and CEO.

Pinkerton will continue to serve as a director, while Richard Eales will continue to serve as the company's lead independent director.

Pinkerton said, "Jeff has been instrumental in leading Range since becoming CEO in 2012. Jeff's strong technical and business skills, coupled with his commitment and integrity, make him an excellent choice to become Range's next Chairman."

RRC closed Friday's trading at $54.18, up $1.20 or 2.27 percent on a volume of 3.64 million shares.