Range Resources Corporation
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.
Our objective is to build stockholder value through consistent growth in reserves
and production on a cost-efficient basis. Our strategy is to employ internally
generated drillbit growth coupled with complementary acquisitions to achieve
such growth. Our strategy requires us to make significant investments in technical
staff, acreage and seismic data and technology to build drilling inventory.
We market nearly all of our oil and gas production from the properties we
operate for both our interest and that of the other working interest owners
and royalty owners. Gas sales are made pursuant to a variety of contractual
arrangements; generally month-to-month and one to five-year contracts. Less
than 10% of our production is subject to contracts longer than five years. Pricing
on the month-to-month and short-term contracts is based largely on the New York
Mercantile Exchange (“NYMEX”) pricing, with fixed or floating basis.
For one to five-year contracts, gas is sold on NYMEX pricing, published regional
index pricing or percentage of proceeds sales based on local indices. Less than
500 mcf per day is sold under long-term fixed price contracts. Many contracts
contain provisions for periodic price adjustment, termination and other terms
customary in the industry. Gas is sold to utilities, marketing companies and
industrial users. Oil is sold under contracts ranging in terms from month-to-month,
up to as long as one year. The pricing for oil is based upon the posted prices
set by major purchasers in the production area or upon NYMEX pricing or fixed
pricing. All oil pricing is adjusted for quality and transportation. Oil and
gas purchasers are selected on the basis of price, credit quality and service.
Competition
We encounter substantial competition in developing and acquiring oil and gas
properties, securing and retaining personnel, conducting drilling and field
operations and marketing production. Competitors in exploration, development,
acquisitions and production include the major oil companies as well as numerous
independent oil companies, individual proprietors and others. Although our sizable
acreage position and core area concentration provide some competitive advantages,
many competitors have financial and other resources substantially exceeding
ours. Therefore, competitors may be able to pay more for desirable leases and
to evaluate, bid for and purchase a greater number of properties or prospects
than our financial or personnel resources allow. Our ability to replace and
expand our reserve base depends on our ability to attract and retain quality
personnel and identify and acquire suitable producing properties and prospects
for future drilling.