When it comes to the Marcellus shale in Pennsylvania and West Virginia, no one plays it better than natural gas producer Range Resources (RRC).
That’s surely evident from its latest earnings report. Overall, RRC managed to pump out record production for the third quarter at some pretty high prices. All told, total production increased by 21% vs. a year ago.
However, the real key was the production mix. RRC continues to focus on some of the best “wet” gas fields in the Marcellus and has seen its natural gas liquids and shale oil production surge. That’s important considering the recent rise and high price of West Texas Intermediate crude oil.
The independent E&P firm saw daily production improvements of 28% for NGLs, 43% in oil and 19% in traditional dry natural gas. Translation for Range Resources stock holders: Yippee!
NGLs and WTI crude oil continue be in demand from a variety of chemical producers and refining end-users. That will help the profits keep coming into Range Resources.