Range Reports Record First Quarter Results

RANGE RESOURCES CORPORATION (NYSE: RRC) today announced first quarter results. Record highs were achieved in production, oil and gas revenues and cash flow from operations before changes in working capital. Including its Gulf of Mexico operations, oil and gas revenues increased 29% to $227.9 million. Results were driven by a 19% increase in production and a 9% increase in realized prices. Cash flow from operations before changes in working capital, a non-GAAP measure, rose 26% to $161.9 million, beating the previous record high of $128.1 million. Net income totaled $73.1 million. Earnings per share (diluted) increased 23% to $0.51.

As previously announced, at the end of the first quarter, Range sold all of its Gulf of Mexico properties for $155 million, recognizing a $95.6 million gain ($62.2 million after deferred taxes.) These properties represented 2% of Range’s 2006 year-end total proved reserves or 38 Bcfe. Despite owning the properties for the first quarter 2007, under generally accepted accounting principles (“GAAP”), the Gulf of Mexico properties have been reclassified as “Discontinued operations” for the entire quarter and for the prior-year period. As a result, production, revenues and expenses associated with the properties have been removed from continuing operations and reclassified to discontinued operations. (Supplemental non-GAAP tables are presented that reconcile the reported GAAP amounts to the amounts that would have been reported if the Gulf of Mexico operations were included in continuing operations.)

In addition to reclassification of the Gulf of Mexico properties and the gain on the sale, first quarter 2007 results included several non-cash items. A $66.3 million non-cash mark-to-market loss on commodity derivatives and $16.1 million on non-cash compensation expense were recorded. Excluding these items, net income would have been $66.0 million or $0.48 per share ($0.46 fully diluted). (See accompanying table for calculation of these non-GAAP measures.) On a reported GAAP basis, excluding the Gulf of Mexico properties, oil and gas revenues were $217.0 million and net income was $73.1 million.

Including the Gulf of Mexico properties, for the quarter, production totaled 306.1 Mmcfe per day, comprised of 229.4 Mmcf per day of gas (75%) and 12,783 barrels per day of oil and liquids. Wellhead prices, after adjustment for hedging, averaged $8.27 per mcfe, a 9% increase over the prior-year period. The average realized gas price rose 5% to $8.26 per mcf, as the average realized oil price rose 20% to $56.09 a barrel. Direct operating expenses for the quarter were $0.96 per mcfe for continuing operations and $2.00 per mcfe for the Gulf of Mexico properties. The fourth quarter 2006 combined direct operating expenses were $0.99 per mcfe. Direct operating expense increases are primarily due to higher oilfield service, personnel costs, water hauling, utilities and compression costs. Production taxes per mcfe declined 9% to $0.38 per mcfe on lower market prices. Exploration expense totaled $11.0 million, including $4.4 million dry hole expense and $3.5 million of seismic purchases.

First quarter development and exploration expenditures totaled $183.7 million, funding the drilling of 214 (165 net) wells and 18 (17 net) recompletions. A 99% success rate was achieved with 211 (163 net) wells productive. By quarter end, 121 (90 net) of the wells had been placed on production, with the remainder in various stages of completion or waiting on pipeline connection. In addition, $17.6 million was spent on acreage purchases and $3.3 million on expanding gas gathering systems and $30.9 million on acquisitions.

Drilling activity in the second quarter remains high with 41 rigs currently running. For the year, Range anticipates drilling 1,003 (757 net) wells and undertaking 84 (64 net) recompletions as part of the Company’s $822 million capital budget. During the first quarter, Range also continued to expand several of its key drilling areas and emerging plays.

The Appalachian division drilled 147 (106 net) wells in its core coal bed methane, shale gas and tight gas sand properties in Pennsylvania, West Virginia and Virginia. The division presently has 16 rigs operating in various project areas. The Appalachian division plans to drill 735 (526 net) wells in 2007. Focus areas for the division in the first quarter 2007 included the continued expansion of the Nora area coal bed methane play. In 2007, plans are to continue to expand operations in the Nora area by drilling approximately 290 coal bed methane wells and 65 tight gas sand wells. Subsequent to quarter-end, Range announced a transaction with Equitable Resources in which Range has agreed to pay Equitable $315 million to acquire additional interests in the Nora field. The transaction is anticipated to close in May. Along with a 50% interest in the gathering system, this transaction provides Range a 50% working interest in all existing and future wells, including coal bed methane, tight gas sands, shale and deeper exploratory wells. Range will retain its mineral and royalty interest over roughly 80% of the 300,000 acre field.

In Range’s Pennsylvania Devonian shale play, where acreage now totals more than 420,000 net acres, leasing efforts continue and drilling is accelerating. To date, 30 vertical and three horizontal shale wells have been drilled in the play, and 22 vertical wells and two horizontal wells are on production. Early results indicate an estimated reserve potential of between 0.6 Bcf to 1.0 Bcf per vertical well. Plans are to significantly expand shale gas drilling in this area in 2007 with 68 vertical and horizontal wells budgeted. To support this effort, Range has opened a regional office in Pittsburgh, Pennsylvania to focus on the Devonian shale drilling and production operations.

First quarter drilling activity in the Midcontinent division resulted in 16 (13.4 net) wells with a 94% success rate. An offset to a recent Upper Morrow discovery has been turned to sales with initial production of 4.3 (2.2 net) Mmcfe per day. The discovery well continues to produce at a rate of 7 (3.7 net) Mmcfe per day. Drilling success also continues at our northern Oklahoma shallow oil rejuvenation project. Field production achieved a record 11 (8.3 net) Mmcfe per day with 10 (10 net) wells completed for a 100% success rate. With Range’s acquisition of the minority working interest owner in the play, the Company plans to drill 60 (60 net) wells in the project during 2007. In the Watonga-Chickasha area, 4 (2.7 net) wells were drilled. Three (1.7 net) wells were completed for a combined rate of 4.5 (1.8 net) Mmcfe per day, with one dry hole reported for the quarter. Two (0.5 net) wells are currently drilling in the deep Anadarko basin and both are expected to reach total depth late in the second quarter.

The Permian division drilled 54 (51.0 net) wells in the first quarter. In West Texas, at the Furhman Mascho field, 21 wells were drilled on 10-acre spacing. In addition, 16 wells have been drilled in our five-acre infill program with encouraging results. The five-acre wells are producing on par with the existing 10-acre wells. A 70-well program is planned in 2007, of which 29 will be five-acre infill wells. At our Eunice field in New Mexico five wells were drilled and completed. Production in this play has more than tripled since 2005. In the North Texas Barnett Shale play, 21 wells were drilled in the first quarter and eight rigs are currently running. Production from the Fort Worth Basin averaged 58.3 (41.9 net) Mmcfe per day for the quarter. By year-end 2007, Range expects its net Barnett production to be 70 Mmcfe per day with the drilling of 74 total wells. Importantly, the test well of our Barnett shale eastern extension in Ellis County spud on April 9. Range has a leasehold in this area that totals approximately 20,000 acres.

Commenting on the announcement, John Pinkerton, Range’s President and CEO, said, “So far in 2007, we have accomplished a great deal. Our drilling program is off to a terrific start with first quarter production increasing 19% to another record high. We also completed the sale of higher cost, more mature properties for $237 million, which will help us maintain our low cost structure. Conversely, we agreed to acquire additional interests for $374 million in three fields where we have had continuing success and where we see significant future growth. Additionally, our recently completed equity offering was extremely well received and closes the chapter on Range reaching its long-term debt-to-capitalization target. While we are still in the early stages of the year, it is clear that these accomplishments result in a better, more valuable Range. Looking to the remainder of the year, we are focused on the execution of our 1,000+ well drilling program and the continued expansion and development of our emerging plays. From both a financial and operational perspective, 2007 shapes up to be the best year in our history.”

The Company will host a conference call on Thursday, April 26 at 2:00 p.m. ET to review these results. To participate in the call, please dial 877-407-8035 and ask for the Range Resources first quarter financial results conference call. A replay of the call will be available through May 3 at 877-660-6853. The account number is 286 and the conference ID for the replay is 239479.

A simultaneous webcast of the call may be accessed over the Internet at www.rangeresources.com or www.vcall.com. To listen, please go to either website in time to register and install any necessary software. The webcast will be archived for replay on the Company’s website for 15 days.

Non-GAAP Financial Measures:

Under GAAP, due to the sale of all the Company’s Gulf of Mexico properties at the end of the first quarter of 2007, all Gulf of Mexico operations during the first quarter 2007 and in prior-years have been reclassified to “Discontinued operations” in the reported GAAP financial statements. The Company has presented a supplemental table which reconciles these reported GAAP financial amounts to the amounts if the operations of the Gulf of Mexico properties for both the 2007 and 2006 periods were combined with the amounts from the continuing operations. The Company believes that the combined results, by including the Gulf of Mexico properties, corresponds to the methodology used by professional research analysts and, therefore, are useful in evaluating operational trends of the Company and its performance relative to other oil and gas producing companies by investors in making investment decisions. (See the reconciliation of reported continuing operations under GAAP to the combined operations, a non-GAAP presentation in the accompanying table.)

Earnings for first quarter 2007 include non-cash ineffective and mark-to-market derivatives of $66.3 million, a non-cash stock compensation expense of $16.1 million, and a gain of $95.6 million ($62.2 million after deferred taxes.) Excluding such items, income before income taxes would have been $100.2 million, a 19% increase from the prior year. Adjusting for the after-tax effect of these items the Company’s earnings would have been $66.0 million or $0.48 per share ($0.46 fully diluted). If similar items were excluded, 2006 earnings would have been $52.8 million or $0.41 per share ($0.39 per diluted share). In 2006 results were impacted by a net $12.5 ineffective mark-to-market derivatives on commodities and interest and a $7.8 million stock compensation expense. (See reconciliation of non-GAAP earnings in the accompanying table.) The Company believes results excluding these items are more comparable to estimates provided by professional research analysts and, therefore, are useful in evaluating operational trends of the Company and its performance relative to other oil and gas producing companies by investors in making investment decisions.

Cash flow from operations before changes in working capital as defined in this release represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items. Cash flow from operations before changes in working capital is widely accepted by the investment community as a financial indicator of an oil and gas company’s ability to generate cash to internally fund exploration and development activities and to service debt. Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity. A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release. On its website, the Company provides additional comparative information on prior periods.

RANGE RESOURCES CORPORATION (NYSE: RRC) is an independent oil and gas company operating in the Southwestern, Appalachian and Gulf Coast regions of the United States.

Except for historical information, statements made in this release, including those relating to significant potential, future earnings, cash flow, capital expenditures, production growth and planned number of wells are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management’s assumptions and the Company’s future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the volatility of oil and gas prices, the costs and results of drilling and operations, the timing of production, mechanical and other inherent risks associated with oil and gas production, weather, the availability of drilling equipment, changes in interest rates, litigation, uncertainties about reserve estimates and environmental risks. The Company undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in the Company’s filings with the Securities and Exchange Commission, which are incorporated by reference.

Range’s internal estimates of reserves may be subject to revision and may be different from estimates by our external reservoir engineers at year-end. Although we believe the expectations and forecasts reflected in these and other forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.