Range Resources RRC reported first-quarter results Thursday. Quarterly production came in at 876 MMcfe per day, up 4% sequentially and 34% year over year and above both the company’s guidance and our forecast of 839 MMcfe/d. Growth was led by Range’s Marcellus acreage, where the firm continued to deliver impressive results across both its liquids-rich and dry-gas areas.
Range maintained its 2013 guidance of 20%-25% production growth, to between 904-941 MMcfe/d, on capital spending of $1.3 billion. We’re currently modeling 20% growth on spending of $1.2 billion. Range also announced the completion of its Permian asset sale process, which generated $275 million. Range will apply sale proceeds toward debt pay-down.
We will update our model to reflect Range’s most recent results, but at this time we don’t anticipate any change to our narrow moat rating or our fair value estimate of $75 per share.