Range Resources Corporation has announced a 2019 capital budget of approximately $756 million. At strip pricing, cash flow is projected to exceed spending for the year. Excess cash flow is expected to be used to reduce debt. In addition, asset sales are being pursued to further strengthen the balance sheet.

The Company expects production to average between 2,325 to 2,345 Mmcfe per day in 2019, with 30% attributed to liquids production. Approximately 90% of the capital budget is expected to be allocated to the Appalachia division and the remainder to the North Louisiana division. In Appalachia, over 60% of activity is planned to be directed towards liquids-rich drilling, where Range’s acreage has an extensive inventory of existing pads that reduce capital costs and gathering expenses. The liquids-rich acreage is also in close proximity to recently built infrastructure for both natural gas takeaway and natural gas liquids (“NGL”) processing. 

The 2019 capital budget includes approximately $685 million for drilling and recompletions (91% of the total), $51 million for leasehold, and $20 million for pipelines, facilities and other capital expenditures. The budget includes 88 wells expected to be brought on line during the year in the Marcellus and eight wells in North Louisiana.  Similar to the 2018 program, approximately half of the 2019 Marcellus wells are planned to be drilled from existing pads.

Total capital expenditures in 2018 were approximately $910 million, which was $31 million under budget for the year.

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