Citi Comments On RRC 4Q Beat

Range Resources Corporation (NYSE: RRC) reported adjusted, recurring Q4'10 EPS/CFPS of $0.19/$1.00, “beating our $0.14/$0.97 forecast and Street consensus of $0.14/$0.96 largely due to lower-than-expected DD&A and exploration expenses,” Citi reports.

“As also previously reported, year-end 2010 proven reserves stood at 4.4 Tcfe, up 42% from they prior year,” Citi writes. “Reserve replacement came in at 931% (840% through the drill bit and performance revisions).

“Range posted a lean all-in F&D tab (excluding price revisions) of $0.74/Mcfe for 2010 vs. the threeyear average or ~$1.50/Mcfe. Reserve growth was largely driven by aggressive PUD bookings, with the PUD ratio increasing to 51% from 42% a year ago. Holding the PUD ratio flat, we estimate that reserves would have increased by just 15%.”

Range Resources Corporation closed Monday at $54.30.