http://www.morningstar.com/earnings/49113451-range-resources-corp-rrc-q4-2012.aspx

Range Resources Corp RRC
Q4 2012 Earnings Call Transcript

Transcript Call Date 02/27/2013

Operator: Hello and welcome to the Range Resources' Fourth Quarter and Full Year 2012 Earnings Conference Call. This call is being recorded. All lines have been placed on mute to prevent any background noise.

Statements contained in this conference call that are not historical facts are forward-looking statements. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements. After the speakers' remarks, there will be a question-and-answer period.

At this time, I would like to turn the call over to Mr. Rodney Waller, Senior Vice President of Range Resources. Please go ahead, sir.

Rodney L. Waller - SVP and Assistant Secretary: Thank you, operator. Good morning and welcome. Range reported outstanding results for the fourth quarter with record production and a continuing decrease in unit cost. Both earnings and cash flow per share results were greater than first call consensus.

The order of our speakers on the call today are Jeff Ventura, President and Chief Executive Officer; Ray Walker, Senior Vice President and Chief Operating Officer; and Roger Manny, Executive Vice President and Chief Financial Officer. Also, Mr. Pinkerton, our Executive Chairman is on the call today.

After the speakers, we will conduct a question-and-answer session. Range did file our 10-K with the SEC and is available this morning. It should be available on the home page of our website or you can access it using the SEC's EDGAR system.

In addition, we posted on our website supplemental tables, which will guide you in the calculation of the non-GAAP measures of cash flow, EBITDAX, cash margins, and the reconciliation of our adjusted non-GAAP earnings to reported earnings that are discussed. Detailed information of our current hedge position by quarter is also included on the website.

Now, let me turn the call over to Jeff.

Jeffrey L. Ventura - President and CEO: Thank you, Rodney. We accomplished a lot in 2012 that really helps to set up 2013 and beyond for Range. We continue making progress with our plan of driving up production and reserves on a per share basis while driving down costs. This is beginning to significantly flow through to our bottom line and we'll do so in an even more impactful way in 2013.

Looking back at 2012, we sold $600 million of 5% senior subordinated 10-year notes. We also entered into an agreement with Sunoco and INEOS on Mariner East. To the best of my knowledge Range will become the first company to export ethane from the U.S. by shift to international markets. This project also enabled us to export propane or to sell propane into the East Coast and Northeast U.S. markets. Importantly, Mariner East along with our first two ethane projects, Mariner West and ATEX enables Range to grow our Marcellus volumes in the wet portion of the play.

In 2012, we sold our Ardmore Basin assets and some other miscellaneous assets for approximately $170 million. Last evening we announced that we entered into an agreement to sell our New Mexico assets plus the (indiscernible) property for $275 million.

Read our Earnings Call Transcript disclaimer.
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