Range Announces Sharply Higher Third Quarter Results

Business Wire, Oct 22, 2008

Third quarter activity for the Midcontinent division included the drilling of 23 (18 net) wells with a 100% success rate. In the Texas Panhandle, an exploratory test yielded production from the St. Louis Lime at a rate of 2.7 (1.9 net) Mmcfe per day. Several offsets are planned for this discovery in addition to continued development of the Granite Wash play.

Conference Call Information

The Company will host a conference call on Thursday, October 23 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 third quarter financial results conference call. A replay of the call will be available through October 30 at 877-660-6853. The account number is 286 and the conference ID for the replay is 300174. 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.

In concert with the opening of Pennsylvania's first large-scale natural gas processing plant for the Marcellus Shale play, Range Resources and MarkWest Energy are co-sponsoring an investor tour of the new facility on Tuesday, October 28, 2008. For further information about the event or to register to attend, please visit the Range Resources website at www.rangeresources.com or call Ronda Palmer at (817) 869-4268. The companies will conduct a pre-tour question and answer presentation covering all previously released information.

Non-GAAP Financial Measures and Supplemental Tables:

Third quarter 2008 results included several non-cash items. A $299 million non-cash mark-to-market gain on unrealized derivatives, a $38 million gain for mark-to-market in the deferred compensation plan and $7 million of non-cash stock compensation expense were recorded. Excluding these items, net income would have been $80 million or $0.52 per share ($0.51 fully diluted). Excluding similar non-cash items from the prior-year quarter, net income would have been $64 million or $0.44 per share ($0.42 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 most of 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.