Range Resources announced it has reduced its 2020 capital budget from $520 million to $430 million. The company still expects to maintain production at approximately 2.3 billion cu-ft/d this year.
“This announcement is a continuation of Range’s prior actions and commitment to prioritizing the balance sheet and aligning capital with projected cash flow,” said Range CEO Jeff Ventura. “Having met our firm transportation commitments in the Marcellus, we have flexibility in our development program. Given near-term challenges in commodity pricing, having a sustainably low maintenance capital budget is paramount.”
Mr Ventura said that, in the longer term, he sees the potential for “meaningful improvements” in natural gas and natural gas liquids pricing as significant reductions in energy investment across US shale occur.
“As the market regains balance, Range will be well positioned to create long-term value for shareholders given our multi-decade inventory of high-quality Marcellus locations,” Mr Ventura said.