Range Announces Record Results

RANGE RESOURCES CORPORATION (NYSE: RRC) today announced first quarter results. Record highs were achieved in production, oil and gas sales and cash flow. Production increased 21% versus the prior year to 371 Mmcfe per day. The increase was driven by exceptional drilling results across the Company’s core properties. Oil and gas sales, including cash-settled derivatives, reached $322 million, a 41% increase over the prior year. Cash flow from operations before changes in working capital, a non-GAAP measure, rose 49% to $241 million. Reported net income of $1.7 million included non-cash charges of $138 million for the mark-to-market accounting on open commodity derivatives, $27 million of non-cash stock expense and a $21 million gain on property sales. Adjusting for these items, net income comparable to analyst estimates was $95.5 million, or diluted earnings per share of $0.62, 35% greater than the prior year. (See the accompanying tables reconciling these non-GAAP measures.) This compares to the average analyst estimate for earnings of $0.54 per share for the quarter.

Commenting on the announcement, John Pinkerton, Range’s President and CEO, said, “The first quarter results reflect the best quarterly performance in our Company’s history as production, oil and gas sales, and cash flow once again achieved record levels. Drilling success across all our divisions drove production to a record level. Underscoring our consistent performance, we posted our 21st consecutive quarter of sequential production growth. We are similarly pleased on the cost side of our business as we were able to hold the line on cost increases, and as a consequence our cash margins increased 23% to $7.15 per mcfe. Importantly, we continue to make solid progress with our emerging plays, increasing our acreage positions, drilling successful delineation wells and building infrastructure. Looking forward, we are extremely well positioned, as our multi-year drilling program is generating excellent returns and our emerging plays provide the opportunity for sustained growth for many years to come.”

For the quarter, production totaled 371 Mmcfe per day, comprised of 300 Mmcf per day of gas (81%) and 11,726 barrels per day of oil and liquids. Wellhead prices, including cash-settled derivatives, averaged $9.55 per mcfe, a 15% increase over the prior-year period. The average gas price was $9.25 per mcf, a 12% increase, and the average oil price rose 25% to $70.25 a barrel.

Direct operating expenses for the quarter were $0.96 per mcfe, a 3% decrease versus the prior-year quarter of $0.99 due to the sale of our Gulf of Mexico properties and a 1% increase over the fourth quarter of 2007. The increase in direct operating expenses is due to higher personnel cost, fuel and electricity. Production taxes were $0.41 per mcfe, an 8% increase versus the prior-year quarter and $0.11 higher compared to the fourth quarter of 2007 due to higher commodity prices. Exploration expense in the first quarter totaled $15.5 million, up from $11.0 million in the prior year due primarily to higher seismic expenditures. General and administrative expenses were $0.38 per mcfe, a decrease of $0.02 from the prior year quarter and $0.04 lower than the fourth quarter of 2007. Interest expense rose to $23.1 million compared to $18.8 million in the prior-year quarter, due to higher debt outstanding and the refinancing of floating bank debt to longer tenure fixed rate debt. Interest expense was $0.69 per mcfe as compared to $0.71 per mcfe for the prior year quarter and $0.68 per mcfe for the fourth quarter of 2007. Depreciation, depletion and amortization rose to $2.12 per mcfe, versus $1.84 in the prior year due to higher depletion rates and the amortization of the Company’s growing leasehold inventory.

First quarter development and exploration expenditures totaled $249 million, funding the drilling of 189 (142.7 net) wells and 7 (5.7 net) recompletions. A 99% success rate was achieved with 187 (140.9 net) wells productive. At quarter-end, 108 (81.9 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, $22 million was spent on acreage, $8 million on expanding gas gathering systems and $311 million on property acquisitions. Drilling activity in the second quarter remains high with 33 rigs currently running. During the first quarter, Range also continued to expand several of its key drilling areas and emerging plays.

During the first quarter 2008, Range’s Appalachian division continued to focus on its key coal bed methane and shale drilling projects. In the Nora field in Virginia, the division drilled 49 coal bed methane wells on 60-acre spacing and three infill wells on 30-acre spacing. In addition, Range drilled 13 tight gas sand wells in Nora during the quarter, achieving higher than expected initial production results. The Company also spud its second horizontal shale well in Virginia and plans to drill a total of 10 horizontal shale wells in 2008 to test the Huron shale. The initial horizontal Huron shale well drilled in late 2007 continues to produce in line with expectations. The Nora area is one of the largest coal bed methane accumulations in the Appalachian Basin and has more than 2,500 remaining locations to be drilled based on 60-acre spacing. If downspacing of coal bed methane and tight gas sand wells are included, the number of remaining locations could exceed 6,000 excluding the shale development.

In the Appalachian Basin Marcellus Shale play, the Company continues its delineation drilling and leasing efforts. At the February update, our acreage position in the Marcellus trend totaled 1.1 million net acres with 650,000 net acres considered prospective. This position has since expanded to 1.15 million net acres, of which approximately 700,000 acres are high-graded for further evaluation. Currently, we have three rigs drilling Marcellus Shale wells. To date, 19 horizontal shale wells have been drilled, of which 15 have been completed. During the quarter, Range completed the next three horizontal shale wells in the Marcellus with 24-hour IP rates of 4.6, 2.6 and 5.8 Mmcfe per day, respectively. In the last nine months, Range has drilled 10 successful horizontal shale wells in the play with initial production rates ranging between 2.6 to 5.8 Mmcfe per day.

In the Fort Worth Basin Barnett Shale play, the first quarter exit rate totaled 140 (95 net) Mmcfe per day. In 2008, we anticipate drilling approximately 100 Barnett wells. Drilling is also underway at our Conger, Fuhrman Mascho and Eunice development projects in West Texas and New Mexico. The Midcontinent division drilled 31 (25 net) wells during the quarter with a 94% success rate. Granite Wash activity continues strong in the Texas Panhandle for both the horizontal and vertical plays, where one rig is running in each area. During the quarter, a vertical Granite Wash completion and a recompletion combined for rates of 4.3 (3.2 net) Mmcfe per day. Three rigs are drilling in additional areas: one in the deep Anadarko Basin, one in the Watonga/Chickasha area in western Oklahoma and another in the Woodford Shale play in southern Oklahoma. With two rigs active, Range’s northern Oklahoma shallow redevelopment play continues to gain traction as the field reached a record high production of 16.9 (13.0 net) Mmcfe per day. For 2008, the Midcontinent division plans 98 (80 net) wells.

The Gulf Coast division continues to achieve success with its onshore drilling program. In early March, the Brett Powell 21-3 #1 came online at 2.7 (1.9 net) Mmcfe per day. Also the Jerry Thornhill #3 reached total depth of 16,953 feet and completion operations are scheduled to begin shortly. Both wells are located in Mississippi and targeted the Hosston interval.

Conference Call Information

The Company will host a conference call on Thursday, April 24 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 first quarter financial results conference call. A replay of the call will be available through May 1 at 877-660-6853. The account number is 286 and the conference ID for the replay is 282437. Additional financial and statistical information about the period not included in this release but to be presented in the conference call will be available on our home page at www.rangeresources.com.

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 and Supplemental Tables:

First quarter 2008 results included several non-cash items. A $138 million non-cash mark-to-market loss on unrealized derivatives, a $21 million expense recorded for the mark-to-market in the deferred compensation plan, a $21 million gain from property sales and $6 million of non-cash stock compensation expense were recorded. Excluding these items, net income would have been $95.5 million or $0.65 per share ($0.62 fully diluted). Excluding similar non-cash items from the prior-year quarter, net income would have been $66.0 million or $0.48 per share ($0.46 fully diluted). By excluding these non-cash items from our earnings, we believe we present our earnings in a manner consistent with the presentation used by analysts in their projection of the Company’s earnings. (See accompanying table for calculation of these non-GAAP measures.)

Range has reclassified within total revenues its financial reporting of the cash settlement of its commodity derivatives. Under this presentation those hedges considered “effective” under SFAS No. 133 (Appalachia oil and gas hedges and Southwest oil hedges) are included in “Oil and gas sales” when settled. For those hedges designated to regions where the historical correlation between NYMEX and regional prices is “non-highly effective” (Southwest gas) or is “volumetric ineffective” due to sale of the underlying reserves (Gulf Coast oil and gas), they are deemed to be “derivatives” and the cash settlements are included in a separate line item shown as “Derivative fair value income (loss)” in Form 10-Q along with the change in mark-to-market valuations of such unrealized derivatives. The Company has provided additional information regarding oil and gas sales in a supplemental table included with this release, which would correspond to amounts shown by analysts for oil and gas sales realized, including cash-settled derivatives.

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 were 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 the 2007 period 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.)

“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, expected rates of return, 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 results of our hedging transactions, 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.

(a) See separate oil and gas sales information table.

(b) Costs associated with FASB 123R which have been reflected in the categories associated with the direct personnel costs.

(c) Included in Derivative fair value income in 10-Q.

(d) Included in Other revenues in the 10-Q.

(e) Reflects the change in the market value of the vested Company stock and other investments during the period held in the deferred compensation plan.

(a) See separate oil and gas sales information table.

(b) Oil and natural gas liquids are converted to gas equivalents on a basis of six mcf per barrel.

(c) Average prices, including all cash-settled derivatives.

(d) Excludes non-cash stock compensation.

(a) Oil and natural gas liquids are converted to gas equivalents on a basis of six mcf per barrel.

Contacts:

Range Resources Corporation
Rodney Waller, 817-869-4258
Sr. Vice President
or
David Amend, 817-869-4266
IR Manager
or
Karen Giles, 817-869-4238
Corporate Communications Manager
Main number: 817-870-2601
www.rangeresources.com