Range Announces Marketing and Transportation Agreements
June 26 2014 - 7:35AM
Marketwired
Range Announces Marketing and Transportation Agreements
FORT WORTH, TX--(Marketwired - Jun 26, 2014) - RANGE RESOURCES
CORPORATION (NYSE: RRC) announced today that it has signed
additional transportation and marketing agreements to support its
future natural gas and ethane production growth.
Range has signed an agreement to act as a foundation shipper on
the ET Rover pipeline, a natural gas pipeline project of ET Rover
Pipeline, LLC, a subsidiary of Energy Transfer Partners (NYSE:
ETP). The project will provide Range the flexibility to move
Pennsylvania natural gas to Dawn, Ontario and south to the Gulf
Coast. Range has agreed to transport up to 400,000 Mmbtu per
day for 20 years starting in October 2017. The natural gas
will be supplied directly from a regional processing plant so there
will be no additional transportation charge to move this gas to
these potentially premium markets.
Range has also signed its first two LNG supply agreements
subject to commencement of the projects. The Company entered
into an agreement with an affiliate of Cheniere Energy, Inc (NYSE:
LNG) to supply gas to the Sabine Pass LNG terminal on the Gulf
Coast. The Sabine Pass facility is expected to commence
service in late 2015. Range is expected to supply gas to the
facility for five years starting in 2017. Range also signed an
agreement with another company to supply natural gas to another LNG
terminal for a term of ten years. Further, Range is in active
discussions with several major international companies to supply
natural gas to other LNG facilities. The Company has existing
firm capacity agreements to supply gas to these LNG customers.
Range has also executed two additional fixed term ethane sales
agreements that are subject to successful project
completion. The first contract will potentially supply an
affiliate of Sasol Ltd. (NYSE: SSL) with 10,000 barrels of ethane
per day for a multi-year term. Range expects to utilize its
ATEX transportation capacity to supply the contract. Sasol
anticipates reaching final investment decision later this year on
its proposed 1.5 million ton per annum ethane cracker and
derivatives complex near Lake Charles, Louisiana. The second
ethane agreement would supply ASCENT, the petrochemical complex
planned by the Odebrecht Organization in Parkersburg, West
Virginia. The ethane agreement commits Range to 5,000 barrels
per day for a term of 15 years. The ASCENT ethane will be
supplied directly from a regional processing plant, thus resulting
in no additional transportation fee to Range. These two deals
combined provide Range a revenue uplift as compared to leaving the
ethane in the gas stream. The agreement with ASCENT/Odebrecht
Organization confirms Range's commitment to the downstream economic
development within the Appalachian region where Range is a leader
in the growth of this region.
Commenting, Jeff Ventura, Range's President and CEO, said
"Range's marketing team continues to expand our marketing
capabilities for natural gas and ethane. The Rover pipeline
provides Range flexibility in selling natural gas to high demand
markets in Canada and the Gulf Coast, while the LNG and ethane
supply agreements further diversify and strengthen our customer
base with industry leading companies. Importantly, these
various contracts support our plan to grow production by 20% to 25%
for many years giving us base contracts in place with leading
companies in key areas that allow for possible future
expansion."
RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading independent
oil and natural gas producer with operations focused in Appalachia
and the Midcontinent region of the United States. The Company
pursues an organic growth strategy targeting high return, low-cost
projects within its large inventory of low risk, development
drilling opportunities. The Company is headquartered in Fort
Worth, Texas. More information about Range can be found at
rangeresources.com.
All statements, except for statements of historical fact,
made in this release such as expected premium markets, expected
marketing capabilities, expected high demand markets, expected
customer base, expected industry leading customers, expected
production growth and expected future expansion 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
Range'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, environmental risks and
regulatory changes. Range undertakes no obligation to publicly
update or revise any forward-looking statements. Further
information on risks and uncertainties is available in Range's
filings with the Securities and Exchange Commission ("SEC"), which
are incorporated by reference. Investors are urged to consider
closely the disclosure in our most recent Annual Report on Form
10-K, available from our website at www.rangeresources.com or by
written request to 100 Throckmorton Street, Suite 1200, Fort Worth,
Texas 76102. You can also obtain this Form 10-K by calling the
SEC at 1-800-SEC-0330.
Range Investor Contacts: Rodney Waller Senior Vice President
817-869-4258 rwaller@rangeresources.com David Amend Investor
Relations Manager 817-869-4266 damend@rangeresources.com Laith
Sando Research Manager 817-869-4267 lsando@rangeresources.com
Michael Freeman Financial Analyst 817-869-4264
mfreeman@rangeresources.com or Range Media Contact: Matt Pitzarella
Director of Corporate Communications 724-873-3224
mpitzarella@rangeresources.com www.rangeresources.com
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