Range Resources's Business Segments

Range was incorporated in early 1980 under the name Lomak Petroleum, Inc. and, later that year, we completed an initial public offering and began trading on the NASDAQ. In 1996, our common stock was listed on the New York Stock Exchange. In 1998, we changed our name to Range Resources Corporation. In 1999, we implemented a strategy of internally generated drillbit growth coupled with complementary acquisitions. We are engaged in the exploration, development and acquisition of oil and gas properties, primarily in the Southwestern, Appalachian and Gulf Coast regions of the United States. We seek to increase reserves and production through internally generated drilling projects, coupled with complementary acquisitions

Range Resources Corporation is an independent natural gas and oil company primarily engaged in the exploration, development, and acquisition of oil and gas properties across various regions in the United States. The company focuses on deriving revenues from the sale of natural gas and oil produced from its holdings, with revenues influenced by production volume and prevailing market prices for these resources. This pricing dynamic is pivotal, as fluctuations can significantly impact revenue streams. To mitigate risks associated with price volatility and to achieve more predictable cash flows, Range Resources employs derivative instruments to hedge future sales prices concerning a substantial portion of its production.

Overview of Operations

Single Operating Segment:
Range Resources operates within a single segment, underpinned by a unified management structure that oversees all properties collectively, rather than through distinct operating segments. This integrated approach allows for streamlined decision-making, cost efficiencies, and the maximization of resource management.

Divisional Structures

Range Resources has established operational divisions that encompass various geographical areas, each with unique characteristics, formations, and production capabilities.

1. Southwest Division

The Southwest Division is pivotal in Ranges production strategy, encompassing vast regions that include:

- Barnett Shale (North Central Texas)
- Permian Basin (West Texas and Eastern New Mexico)
- East Texas Basin
- Texas Panhandle
- Anadarko Basin (Western Oklahoma)

In this division, the company manages 2,057 net producing wells, with an impressive 96% operational control. The average working interest across these properties is 73%, and Range Resources holds approximately 687,000 gross acres (480,000 net) under lease, reflecting a robust presence in the region.

Appalachia Division

The Appalachia Division showcases Ranges significant footprint in the northeastern U.S. primarily across states such as:

- Ohio
- Pennsylvania
- New York
- West Virginia
- Virginia

Properties in this division tap into various geologic formations, including:

- Pennsylvanian (coalbed formation)
- Upper Devonian
- Marcellus Shale
- Niagaran Reef
- Trenton Black River formations

These formations vary in depth from 2,500 to 12,500 feet, and the company operates 9,306 net wells, of which 69% are operated by Range Resources. The company also boasts approximately 4,900 miles of gas gathering lines and controls about3 million gross acres (1.9 million net) under lease, with over 70,000 acres linked to royalty interests. The properties typically see a gradual decline in production over 10 to 35 years, showcasing the long-term potential of these assets.

Gulf Coast Division

The Gulf Coast Division focuses on oil and gas production in:

- Onshore Texas, Louisiana, and Mississippi
- Shallow waters of the Gulf of Mexico

This divisions wells are known for high initial production rates, often with shorter reserve lives. In a strategic shift, Range Resources has moved focus from offshore to predominantly onshore properties, enhancing operational control and reducing costs. Major geologic formations producing in this division include:

- Hartburg formations
- Upper Oligocene (South Louisiana)
- Sligo and Hosston formations (Oakvale field, Mississippi)

The division operates 33 net producing wells, with a 42% operational control rate. The average working interest here is relatively lower at 23%. Range Resources oversees around 102,000 gross (56,000 net) acres onshore while also maintaining interests in 37 offshore platforms situated in varying water depths (11 to 240 feet). Additionally, the company holds licenses for a 3-D seismic database covering over 800 contiguous blocks in the Gulf of Mexico, particularly offshore Louisiana.

Conclusion

Range Resources Corporation has positioned itself as a significant player in the oil and natural gas industry through strategic operation segments focused on specific geological basins. Utilizing hedging strategies to mitigate market volatility, the company continually strives for operational efficiency and maximizing output across its extensive land holdings. The combination of advanced geological assessments, a well-distributed operational footprint, and a proactive management approach allows Range Resources to remain competitive within an ever-evolving energy landscape.