Range Reports Record Second Quarter Results

RANGE RESOURCES CORPORATION (NYSE: RRC) today announced second quarter results. Record highs were achieved in production and oil and gas revenues. Oil and gas revenues reached $221 million, a 40% increase over the prior year. Results were driven by a 19% increase in production and an 18% increase in realized prices. Cash flow from operations before changes in working capital, a non-GAAP measure, rose 44% to $156 million. Reported net income totaled $64 million. Earnings per share (diluted) increased 13% to $0.43.

Commenting on the announcement, John Pinkerton, Range’s President and CEO, said, “The second quarter results reflect the best operational performance in our Company’s history. Overcoming the loss of production from the sale of the Gulf of Mexico properties and posting our 18th consecutive quarter of sequential production growth was an extraordinary accomplishment by our operating teams. The record production results were achieved while also reducing operating costs by more than 10% versus the first quarter. The combination of record production, low costs and higher realized prices fueled 44% and 25% increases, respectively, in cash flow and earnings. Looking forward, we have 81% of anticipated second half 2007 gas production hedged at $8.00 per mcf, so we are in excellent shape to post superior results for the third and fourth quarters of 2007. Importantly, we continue to execute our drilling program of nearly 1,000 wells and are realizing high returns on invested capital. With our lower post-Gulf of Mexico sale decline curve, large transparent drilling inventory and low cost structure, we are superbly positioned to continue to add substantial per share value in the future.”

For the quarter, production totaled 313 Mmcfe per day, comprised of 236 Mmcf per day of gas (76%) and 12,769 barrels per day of oil and liquids. Wellhead prices, after adjustment for hedging, averaged $7.75 per mcfe, an 18% increase over the prior-year period. The average realized gas price rose 17% to $7.32 per mcf, and the average realized oil price rose 27% to $60.00 a barrel. Hedging increased the average realized price by $0.21 per mcfe. Currently, 81% of anticipated second half 2007 gas production is hedged at a weighted average gas floor of $8.00 per mcf, while 58% of 2008 gas production is hedged at a weighted average gas floor of $8.91 per mcf.

Second quarter development and exploration expenditures totaled $232 million, funding the drilling of 302 (228 net) wells and 14 (14 net) recompletions. A 99% success rate was achieved with 299 (226 net) wells productive. In the first half of the year, 337 (268 net) of the newly drilled wells had been placed on production, with the remainder in various stages of completion or waiting on pipeline connection. In addition, $15.1 million was spent on acreage purchases and $4.8 million on expanding gas gathering systems.

Drilling activity in the third quarter remains high with 37 rigs currently running. For the year, Range anticipates drilling 971 (704.3 net) wells and undertaking 84 (64 net) recompletions as part of the Company’s $834 million capital budget. During the second quarter, Range also continued to expand several of its key drilling areas and emerging plays.

In the Permian division, 55 (51 net) wells were drilled. In the North Texas Barnett Shale play, production reached 85 (60 net) Mmcfe per day, a three-fold increase versus a year ago. The Barnett test well in southern Ellis County has reached total depth and completion operations are scheduled for August. Throughout the play, approximately 20,000 acres were added during the second quarter, bringing our total net acreage position to 86,250. In addition, our field redevelopment efforts in West Texas and New Mexico made steady headway due to continued drilling success.

In the Appalachia division, 210 (148 net) wells were drilled. The Nora field in Virginia continues to be a key area of focus. The recent transaction in which Range acquired additional interests in the field coupled with continued drilling success raised production from the Nora area to 45 Mmcfe per day, up from 25 Mmcfe at the end of the first quarter. To date, two pilot projects have been drilled to test tighter coal bed methane spacing. So far, results are encouraging. Later this year, Range plans to test reduced spacing of the tight gas sands in the Nora field. Lastly, a horizontal shale well is planned for the fourth quarter to test the potential of shale gas development in the field, which encompasses approximately 300,000 acres. Range continues to expand its leasehold position in the Appalachia Basin Devonian Shale play with 470,000 net acres currently under contract. The Company expects to drill an additional 10 to 12 vertical wells and 15 to 18 horizontal wells in the play during the remainder of the year.

As previously reported on March 31, 2007, Range sold its Gulf of Mexico properties for $155 million, recognizing a $95.6 million first quarter gain ($62.2 million net of deferred taxes). These properties represented 2% of Range’s 2006 year-end total proved reserves. Despite closing the sale on March 31, under generally accepted accounting principles (“GAAP”), the Gulf of Mexico properties have been reclassified as “Discontinued operations” for 2007 and all the prior-year periods. 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 prior periods.) All variances discussed in this release include the Gulf of Mexico operations with respect to prior periods.

Second quarter 2007 results included several non-cash items. A $21.1 million non-cash mark-to-market gain on commodity derivatives and $16.2 million of non-cash compensation expense were recorded. Excluding these items, net income would have been $61.2 million or $0.42 per share ($0.41 fully diluted). Excluding similar non-cash items from the prior-year quarter, net income would have been $40.6 million or $0.31 per share ($0.30 fully diluted). (See accompanying table for calculation of these non-GAAP measures.)

Direct operating expenses for the quarter were $0.86 per mcfe, a $0.02 increase over the prior-year period. However, second quarter direct operating expenses were 13% lower than first quarter 2007. The reduction from first quarter to second quarter was due to the sale of the higher cost Gulf of Mexico properties and higher volumes from two of our lowest cost operating areas, the Nora field in Virginia and the North Texas Barnett shale play. Production taxes per mcfe increased $0.03 to $0.39 per mcfe on higher market prices. Exploration expense totaled $10.8 million, including $4.5 million of dry hole expense and $2.9 million of seismic purchases.

The Company will host a conference call on Thursday, July 26 at 1:00 p.m. ET to review these results. To participate in the call, please dial 877-407-8035 and ask for the Range Resources second quarter financial results conference call. A replay of the call will be available through August 2 at 877-660-6853. The account number is 286 and the conference ID for the replay is 249357.

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 actual historical 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 second quarter 2007 include non-cash ineffective and mark-to-market derivatives of $21.1 million and a non-cash stock compensation expense of $16.2 million. Excluding such items, income before income taxes would have been $93.5 million, a 43% increase from the prior year. Adjusting for the after-tax effect of these items the Company’s earnings would have been $61.2 million or $0.42 per share ($0.41 fully diluted). If similar items were excluded, 2006 earnings would have been $40.6 million or $0.31 per share ($0.30 per diluted share). In 2006, results were impacted by a net $19.2 million ineffective and mark-to-market derivatives on commodities and interest and a $3.2 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.

Contacts:

Range Resources Corporation
Rodney Waller, Sr. Vice President
817-869-4268
or
David Amend, IR Manager
817-869-4266
or
Karen Giles, Sr. IR Specialist
817-869-4238
or
Main number: 817-870-2601
www.rangeresources.com