Range Resources Corp. expects to sell some assets outside the Marcellus shale as it battles low natural gas prices that pummeled its revenue.
“We are continuing to work on potential noncore asset sales for areas in our portfolio that cannot compete against the Marcellus for capital,” CEO Jeff Ventura said Wednesday in announcing third-quarter financial results.
The Fort Worth-based company swung to a net loss of $301 million, or $1.81 per share, during the quarter, which compares to a profit of $146 million, or 86 cents per share, during the same period last year.
The loss included a $502 million write-down on oil and gas properties in Oklahoma and northwest Pennsylvania. Without that charge and other one-time financial items, Range reported adjusted net income of $5.5 million or 3 cents per share.
Range, Pennsylvania’s fourth largest shale producer, increased its production by 20 percent during the quarter and brought online 23 wells, including a second Utica shale well in Washington County.
But the company said it got 30 percent less for that gas. Revenue from gas, oil and liquids fell 43 percent to $252 million.
Like competitors, Range has cut costs and slowed its drilling program because an oversupply of shale gas in the region and moderate weather have pushed prices to a three-year low. Range expects to benefit in coming months as Sunoco Logistics’ Mariner East pipeline starts carrying its ethane to Marcus Hook for export overseas in the next month.
Company officials planned to discuss the results Thursday morning.
This article was written by DAVID CONTI from The Pittsburgh Tribune-Review and was legally licensed through the NewsCred publisher network.