FORT WORTH, TX -- (Marketwired) -- 06/26/14 --
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:
Senior Vice President
Investor Relations Manager
Range Media Contact:
Director of Corporate Communications
Source: Range Resources Corporation