Earnings Labs

Range Resources Corporation (RRC)

Q3 2008 Earnings Call· Thu, Oct 23, 2008

$43.26

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Transcript

Operator

Operator

Welcome to the Range Resources third quarter 2008 earnings conference call. This call is being recorded. All lines have been placed on mute to prevent any background noise. Statements contained in this conference call that are not historical facts are forward-looking statements. Such statements are subject to risks and uncertainties, which could cause actual results to differ materially from those in the forward-looking statements. After the speakers’ remarks, there will be a question-and-answer period. At this time, I would like to turn the call over to Mr. Rodney Waller, Senior Vice President of Range Resources. Please go ahead, sir.

Rodney Waller

Management

Thank you, operator. Good afternoon and welcome. Range reported results for the third quarter of 2008 posting our 23rd consecutive quarter of sequential production growth, with a dramatic swing in the reported mark-to-market of our hedge position from the second quarter. We posted on our website supplemental tables to assist you in understanding many of the numbers in the press release. In the press release, we’ve furnished some non-GAAP statements, which allow you to compare our results to our historically reported numbers, which include the Gulf of Mexico operations that we sold during 2007. And in table five of the supplemental tables, we have presented a summary of reported numbers, which corresponds to the analysts' models taking out certain non-cash items. On the call with me today are John Pinkerton, our Chairman and Chief Executive Officer; Jeff Ventura, our President and Chief Operating Officer; and Roger Manny, our Executive Vice President and Chief Financial Officer. Before turning the call over to John, I’d like to cover a few administrative items. First, we did file our 10-Q with the SEC this morning. It is now available on the home page of our website or you can access it using the SEC's EDGAR system. In addition, we have posted on our website supplemental tables which will guide you in the calculation of non-GAAP measures of cash flow, EBITDAX, cash margins and the reconciliations of our non-GAAP earnings to reported earnings that are discussed on the call today. Tables are also posted on the website that will give you detailed information of our current hedge position by quarter. Second, as we mentioned in the press release yesterday covering the announcement on the launching of the first phase of the first natural gas processing facility in the State of Pennsylvania in Washington County, Range…

John Pinkerton

Chairman

Thanks, Rodney. Before I review the key accomplishments that we’ve made so far in 2008, I want to address a couple of comments I’ve heard from several analysts or investors this morning. First, like every other publicly traded security, our stock price has fallen materially. We believe that the current trading level is well below net asset value even at low commodity prices. All of us at Range are affected as all of us are shareholders. That being said, we’re not deterred. During the past 30 days, no senior level officer at Range has sold one share of the Range stock. In addition, I recently acquired 78,088 additional Range shares by exercising stock options and holding all our [ph] shares. I spent considerable time with our team and I can assure you that all of us at Range are focused on executing our capital budget and our business plan. I think this comes out loud and clear with the third quarter results we issued last night. Over the next several months, we are hopeful that the market will come back around with our stock price increasing accordingly. Second, several investors have asked why we didn’t provide specific well results with our latest – regarding our latest Marcellus wells. A year or so ago, we discussed that once we move from the R&D phase to the development phase in the Marcellus, we would cease providing well results and turn to discussing production rates. The good news is that we are now at that stage and that we’re in the development phase and we have disclosed in the press release extra rates for 2008 as well as 2009. With regards to our recent Marcellus wells, the initial rates are in line with the wells we drilled earlier this year, meaning we believe…

Roger Manny

Management

Thank you, John. The third quarter of 2008 was in many ways similar to the second quarter of this year as Range posted its second highest quarterly oil and gas sales, second highest quarterly EBITDAX and second highest quarterly cash flow in our history. Set against the backdrop of highly volatile oil and gas prices, equity prices and credit markets, our solid third quarter operating and financial performance is a welcome achievement. And because of the state of the current credit markets and investor concerns over liquidity and capital resources, I would like to spend some time walking you through the state of our balance sheet and liquidity position before taking you through the third quarter financial numbers. Let’s start with our hedging position and our hedging counterparties. Range has approximately 69% of its remaining 2008 gas production hedged at a floor price of $8.84 per MMBtu. And as John said, approximately 60% of its 2009 gas production hedged at a floor price of $8.31 per MMBtu. These hedges are spread across 14 different counterparties, 12 of which are secured lenders in the Range bank credit facility and the 12 bank counterparties enjoye the benefit of our loan collateral which is cross collateralized with the hedges. Because of this, none of our agreements with these banks require Range to post margin when they are exposed to our risk. Likewise, our funded bank credit facility with these banks helps offset exposure when Range is exposed to them. Our two non-bank group counterparties are J. Aron and Mitsui & Company. As of quarter end, J. Aron holds mark-to-market basis swap exposure to Range of $618,000 and Range owes Mitsui $14.3 million on some of our out of the money oil hedges. Range hedges its production using simple price swaps and colors. We…

John Pinkerton

Chairman

Thanks Roger. With that I'll turn the call over to Jeff Ventura to talk about our operations.

Jeff Ventura

President

Thanks John. I'll begin by reviewing production. For the third quarter, production averaged 388 million per day, a 19% increase over the third quarter of 2007. This represents the highest quarterly production rate in the company's history, and the 23rd consecutive quarter of sequential production growth. Let's now review three of our key projects. First, I'll start with the Marcellus Shale play in the northern part of the Appalachian Basin. The good news is that the processing plant came online this week. As with all new plants, we are currently going through system stabilization and optimization. Prior to starting up this new facility, all of our Marcellus production was going through a temporary facility that had a maximum capacity of 13 million per day. This temporary facility will be decommissioned. Our oldest vertical well has now been online for almost four years, and our oldest horizontal well has been online for almost a year and a half. We have many wells shut in which will be coming online as the new facility allows. We'll be ramping up and anticipate exiting this year at a rate of about 30 million per day net to Range. We are currently working through our budget process for 2009, but at this time, we are estimating running up to six horizontal rigs in the Marcellus Shale and our expectation is that we will exit 2009 at 80 million to 100 million per day net to Range. The fact that we believe that we can reach 80 million to 100 million cubic feet per day net, and only have to run five or six rigs, speaks to the excellent quality of the wells that we are drilling and anticipate to drill next year. This is on par with the better areas in the Barnett Shale. We…

John Pinkerton

Chairman

Thanks Jeff. Terrific report. Now let's look a little ahead here and we'll look at what we see for the fourth quarter of 2008. Bottom line is we continue to see strong operating and financial results. We are looking for fourth quarter production to come in at 400 million to 405 million a day. So obviously, we'll break through the 400 million a day benchmark sometime this quarter, which is a big deal. If quarterly production comes in at that level, we will exceed our 19% growth target for the year, and we will record our 24th consecutive quarter of sequential production growth. No other E&P company in our peer group has achieved this level of consistent results. Turning to prices, assuming current futures prices and hedges in place, we anticipate fourth quarter price realizations after hedging to be in the $7.80 per Mcfe range. This is $0.49 or 6% lower than the $8.29 per Mcfe that we realized in the fourth quarter of 2007. Because production volumes are anticipated to increase by approximately 19% versus 6% decline in prices, we again anticipate fourth quarter revenues, cash flow and earnings will be substantially higher than the prior year period. Due to higher volumes and prices, and stable cost, cash flow from operations for 2008 is anticipated to increase by roughly 30% over 2007. For the year, we anticipate record production revenues, cash flow and earnings, while ending the year with a strong balance sheet and substantial liquidity. As you can see, 2008 is shaping up to be Range's best year ever with regard to financial and operating results. While focused on getting our wells drilled and hitting our quarterly production targets, we also continue to expand our drilling inventory and make tremendous progress within our emerging plays. In particular in…

Operator

Operator

(Operator instructions) Our first question comes from David Kistler with Simmons & Company. Please state your question. David Kistler – Simmons & Company: Good afternoon guys. Real quickly on your decision to live within cash flow, what portion of CapEx is going to be used to hold by production some of the acreage that you have out there and what portion is just going to be used purely on a developmental basis?

John Pinkerton

Chairman

That’s a great question. The good news is we have less than 20 commitment wells that we have to drill next in 2009 to hold acreage. So the good news is we’re going to drill most of the wells. The prepondence of the wells in areas that we think we can hook up quick and we would do in respect with that. So again, not many commitment wells in that regard. And the good news is that the second step further is now with the Marcellus. First phase of Marcellus pipeline on -- essentially all the wells we’ll be drilling and there’ll be some we continue to delineate. Essentially all the wells will be -- when we drill them we’ll get to hook them up and get to see the production pronto. So, we’re in good shape and that’s one of the things that I’m so happy about in terms of getting the Marcellus on three months early. It really does make an enormous difference. As you enter 2009, it gives us just really tremendous momentum. David Kistler – Simmons & Company: Great. As we look at 2009, you put a range out of about 15% to 20% on a production gross basis and I was curious what the major driver of that variation is? Obviously, very early on to be thinking about tightening that but I’m kind of curious what you guys are watching, which would take it to high-end or the low-end?

John Pinkerton

Chairman

Well, obviously, let’s start from the basis. We’re staying in line with cash flow. One of the things that we’ve always done at Range is that we dialed up and dialed down capital based on what we’re seeing and we transferred capital between projects during the year. We don’t set a capital budget and everybody just runs off and does it. For example, every AFP [ph] range over $200,000, even if the project’s been in the budget gets approved by Jeff and I and Roger during the year. So we see firsthand the returns based on what we -- or flat $6 price case plus what we see in terms of the other price case we use. So we change capital from time to time. And we’ll continue to do that in 2009, 2010, and beyond. If gas prices -- if it gets cold outside and gas prices go up and we see -- and we can lock in some higher prices, we’ll tweak up our capital budgets slightly and we may tweak it down slightly. Until that, I think that’s really the range that you get to. The other thing is obviously we’re turning on a lot of Marcellus production and so in that number we’re obviously not going to be away on the wild side of what we expect. So we’re going to be more -- I wouldn’t say ultra conservative, but clearly we’re going to be fairly conservative in terms of what we expect out of that and make sure that we meet what we tell you we’re going to meet. But I think the good thing is if you followed Range for anytime at all, typically what we do every single year is come out with a double-digit growth target in the 10% to 12% each…

Jeff Ventura

President

Well, one, and I think we’ve talked about it a little bit, we'll exit the year at 30 and I think Rodney’s described in pretty much detail a lot of these conferences why we’ll be ramping up and installing new capacity to bring on -- to produce more and more gas next year and it’s in our last press release as well when the cryoplant will finally be up and running in the rate. So, the pipeline and facilities job, we’re doing it -- our team is doing a great job of ahead of the drilling and completing things. So we’ll have the ability in most of these areas to literally produce a well and put it into a pipeline immediately. Like John said, there will be some delineations except that well, but a lot of the wells are going go right into the pipeline. And in terms of the -- does that help a well or hurt a well? I think it’s early on and we’re studying all those types of things and we’ll see as we go into next year what that does for each particular well. What I can tall you about is -- the good news is the way we’re drilling and completing what we’re doing right we’re drilling a lot of great wells. Like I said, there are three to four Bs up per well and what the IPs that we've announced and our new wells are in line with the old ones. Those wells would be great wells in Tarrant County in the Barnett. So strong initial rates, strong reserves, doing what we’re doing, hopefully the team will continue to improve on how we drill and complete wells at the same time driving down the cost of drilling complete and I have confidence we’ll be able to do that. David Kistler – Simmons & Company: Great guys. Thanks so much for that clarity. I’ll let somebody else hop on.

John Pinkerton

Chairman

Thanks David.

Operator

Operator

Our next question comes from Marshall Carver with Capital One Southcoast. Please state your question. Marshall Carver – Capital One Southcoast: Yes. In Equitable’s press release this morning, they talked about some positive results with air drilling which lowered cost per well in the Marcellus. Have you all done any of that or do you plan to, any thoughts on that?

Jeff Ventura

President

Yes. We think that’s a great idea and I applaud Equitable for that. And early next year, we’ll be trying air drilling as well. I feel confident even drilling on flood like we are now that -- and we said our well cost will be $3 million to $4 million per well. I think in the Southwest part of the state where our new plant is, where we’re coming on, where the Marcellus is around 6,500 feet. Even without that, I feel comfortable we’ll be at the low end of that range $3 million. And I feel in time that our team even has a good chance of beating that and I can get into the detail on the why air drilling is just another upside. It's a good idea, we'll try it. The other good part about the play now where Range came up with the idea initially and started it back in 2004. Now, you have good companies like Equitable and Atlas and Chesapeake and other people experimenting and doing other things and that’s just going to help accelerate technology and all that other stuff as well. Marshall Carver – Capital One Southcoast: Okay. That’s very helpful. And in the decrease in rig count between last year at this time and now, where are the -- what areas are you running fewer rigs and do you see production in non-Barnett, non-Nora, non-Marcellus areas sort of trending down over '09 or do you see that holding flat?

Jeff Ventura

President

A lot of the areas -- what we’ve done is we’re gone with time. Just like John said, we set a budget for the year, we continually look at it, and over the last couple of years or if you go back a year, we used to do a lot of drilling in the tight gas sands and Appalachian. I’m talking about in the Northern part of the basin, Clinton and Dyna [ph] wells. That would be one area where -- that’s HBP. The wells are good wells and have strong economics, but as we've continued to have success in the Marcellus and Nora in the Barnett, those projects were even better. They have lower cost to find and development. You can grow rates quicker. Stronger rates of return and -- so we’ve focused our capital dollars in those areas. We're getting better capital efficiency and better rate efficiency. At the same time, there's other opportunities for HBP. The good news in some of those old fields is they’re fairly stable production. They have relatively low base decline rates. So we're able to still grow the company significantly and actually better and more efficiently by reallocating capital like we are. Marshall Carver – Capital One Southcoast: Okay, thank you.

Operator

Operator

Our next question comes from Ron Mills with Johnson Rice. Please state your question. Ron Mills – Johnson Rice: Good afternoon. Marshall just asked one question on the activity levels in terms of rigs. As you look out to 2009, should we expect at least on the Marcellus and the Barnett that kind of the 12 -- plus or minus 12 horizontal rigs is about the amount that you plan on running notwithstanding some sort of event that causes you to tweak like the storms or the Barnett downtime during the second quarter?

Jeff Ventura

President

Yes. It would be roughly the same. We ran about six rigs in the Barnett this year. We’ll run about six next year in the Marcellus. We were at about three horizontal rigs this year and then we’ll ramp up to six next year. So in combined that would be 12 horizontal rigs. Then in addition, the Nora horizontal drilling we’ll be doing some of that as well there. But between those two places that you asked, it’ll be 12 rigs. Ron Mills – Johnson Rice: And in the Marcellus, it sounds like in the Barnett you can drill roughly 100 wells with those six rigs in the Marcellus. Is it -- the drill time is roughly similar so you could drill a similar amount of net wells or --?

Jeff Ventura

President

Let me say we’ll be ramping up to six rigs and we’re putting that together. What I can tell you, the good news is we continually drive down based on the well in Marcellus. Our last well, I believe, was 16 days. So we drilled a handful of wells now under 20 days. So we’re making a lot of headway in terms of the time it takes to drill our horizontal wells in the Marcellus. Ron Mills – Johnson Rice: Okay. And then on the Huron, you had talked about the initial production rates and cost and you’ve mentioned that they were tracking your expectations. At what point if you end up to de-risking kind of that one and a half piece of opportunity set, is that also an area that in 2009 you could end up seeing a ramp up?

Jeff Ventura

President

Yes. We’ll be ramping up drilling in 2009 and ramping up production. Nora has been a great area for us in terms of reserve growth and rate growth and should get even better next year. Ron Mills – Johnson Rice: Do you see any issues in the Huron sale in terms of getting the production online? I know in some portions of the Huron there’s nitrogen-related issues that --

Jeff Ventura

President

No. Not where we are and working together with Equitable. They're doing a good job. Our teams are doing a good job of building out that infrastructure ahead of the drilling again. So, I feel -- and really in all three of our key areas, the Barnett, the Marcellus, and Nora, the pipeline infrastructure facilities guys are going to stay ahead of the drilling team. So I’m confident, and we got firm capacity in a lot of those areas so I’m confident we’ll be able to move to gase as we drill and complete the other wells. Ron Mills – Johnson Rice: And then one last one, and John, this is probably for you, the maintenance CapEx if you will is only roughly a third to maintain production, I think that should be one of the lowest in the industry. But as you look ahead to kind of your 15% to 20% production growth target with your hedging program and your production expectations, are you all expecting somewhere in the kind of $900 million to $1 billion type cash flow in order to achieve those targets?

John Pinkerton

Chairman

Well, it's on the lower end of that. Ron Mills – Johnson Rice: Okay.

John Pinkerton

Chairman

It's on the lower end of that. And again, we'll -- I think, at least in my view of it is I think it's important that capital budget's (inaudible). But we arrange. We kind of re-jiggle our capital budget every single day. So, we just look at it much differently I think than a lot of other companies, and I think if I can diverse a bit, I think that's really good for the shareholders and that -- what we do is we do a bottoms-up capital allocation process in this company. And what that means is that the divisions, each come up -- we give them very strict parameters in terms of rates of return, risk, finding and development cost, and what not. In terms of -- and they submit all the projects and I'll be -- that number for '09 was, I forgot exactly what the number was, but it was somewhere between over $2.5 billion worth. What Jeff and I's responsibility is to get there and look at all those projects, allocate capital, and try to find the projects that we think are going to weave the best both short term means from the long term aspects for the company. And I think that's what you want. And one of the things that drives me crazy and I'll get on this soap box a little bit and I'll get off is that I've heard some analysts talk about, well, you should invest in these much bigger companies that have all this excess cash flow. But the question I got to ask you is why do they have excess cash flow? Don't they have enough projects to spend that cash flow and generate high rates of return? We can generate 4% to 5% production growth with less than…

John Pinkerton

Chairman

Thanks.

Operator

Operator

Our next question comes from Michael Hall with Stifel Nicolaus. Please state your question. Michael Hall – Stifel Nicolaus: Thank you. Congrats on a solid quarter.

John Pinkerton

Chairman

Thanks. Michael Hall – Stifel Nicolaus: If I may kind of keep on a while or just down in terms of return profiles and the decision matrices. When you're looking at -- you're making your budget, what's the difference between the return profiles at the high end of that $2.5 billion opportunity set and then maybe at the low end, and where is that cut off? How you think about how you sort out the projects when you're building up your capital plan?

John Pinkerton

Chairman

Well, we have kind of a minimum rate of return hurdle, and I -- so particularly want to go into all that because I think that some of the -- yes, I think that's proprietary summaries. But we have a minimal rate of return hurdle and I'll tell you this. It has two on the front ad it's more than one digit. So, and then we have some base prices in terms of -- base cases in terms of crisis. We test out there and so you've got some projects that are in I’d say in the low 20% range and you've got others that are in the 50% to 60% range. And again, what Jeff and I's job is to take all those submittals and at those low commodity prices and look at the risk associated with and the ability -- one thing is also the ability of those divisions to hit those numbers and do that. That's one reason why we don't pile everything under one division because we know that will likely -- if we did that, we'd likely have them screwing up -- it goes up, and we don't want to do that. So want to allocate capital. It's like making a cake. You got to put a little bit of everything in it and then we go down. But as we go through the year, we've got Allen Parkinson [ph] and some of the other guys that we look all those results and if we see -- there's something maybe doing better and one day we're doing worse, well, I'll take back capital back and forth. So, on the low end we are taking $6, $7 gas holding flat, we've got some projects that are in the lower end of that. We just simply aren't going to drill those -- most (inaudible) production. So we'll just keep those projects and inventory and we'll focus on the ones that generate a higher rate of return. As prices go back up, which they will -- I will assure you gas prices will go back up at some point in time -- then unlock our cash flow and we'll spend some more of that. In the meantime, if they go up, and somebody wants to buy one or more of those assets that are more mature we'll be happy to sell it to them which, again, will help fund some of the other higher return projects. So that's the kind of way we look at it. Michael Hall – Stifel Nicolaus: Very good, appreciate the color. Real quick on the hurricane impacts and kind of maybe -- what I might call swing production in terms of still getting the strong production rates this quarter in the face of the hurricanes, what regions are you making up that production growth? Is that really what's driving then the workover expense this quarter?

John Pinkerton

Chairman

Yes. The workover expenses were really, one, is some of the stuff that got beat up by the hurricane, we had to fix. Some of the other stuff is just your normal run-in-the-mill workover stuff. And I do think, when prices get lower, I think it's human nature for your technical staff and your operating teams -- there are a lot of little things that you can do to increase production that require workover expenses and to the extent that they find those and they have 100% rates of return and very little dollars, that's money well spent, so we're going to do those things. But like Roger said, I do think that those costs will come down a little bit in the fourth quarter and as we go forward. They were kind of high in the second and third quarter. A lot of this is because of the hurricanes and stuff. So I think you'll see those come down. The good thing at Range is that every one of our divisions is hitting their targets, save and except when they get beat up by the hurricane. The guys at Midcontinent are drilling some great Granite Wash wells, great St. Louis well that came on stream; the guys in the Barnett are doing a terrific job reducing cost and being able to drill more wells with six rigs than what they had estimated with eight rigs. So it's just a combination of a lot of little bitty things that gets us there every quarter. As Jeff says and I say, it's really a testimony to really the quality of people that we have at Range. And I know other companies have high-quality people but the only ones I know about are ours. And I can assure you we've got some of the best people around, the Mark Whitleys and Greg Climers [ph], and Ray Walkers, and Steve Gross, and the rest of the guys -- and Steve Kerr [ph] that run our divisions. These are really, really high-quality guys that are just spectacular and they do great things. Jeff and I don't have to yell at them. They know exactly what they're doing. These are professionals. These guys are capable of running companies on their own. So again we got a great team and they continue to perform and I think third quarter was a classic example of that. Michael Hall – Stifel Nicolaus: Okay. Good deal. I'll let others jump on. Thanks for the color, appreciate it. Congrats.

Operator

Operator

Thank you. Ladies and gentlemen, we have time for one more question. Our final question comes from Jeff Hayden with Rodman & Renshaw. Please state your question. Jeff Hayden – Rodman & Renshaw: Hey guys. A couple of quick ones here. One, just wondering, you talked kind of 3 to 4 Bcf Marcellus wells on average. I wondered if you can give us some color on what the average IP rates would be that correspond to that range?

Jeff Ventura

President

--: Jeff Hayden – Rodman & Renshaw: Okay. So roughly a well could run a 5 million a day IP, and on average that probably gets me a 4 Bcf well?

Jeff Ventura

President

That would be reasonable. Something like that. Putting it down for a 3 Bcf well. Jeff Hayden – Rodman & Renshaw: And then just on the incremental acreage, looks like another 50,000 high graded, but you kept the upside at 10 to 15 for the Southwest. So should we assume an incremental 50,000 was in the Northeast part of the play?

Jeff Ventura

President

No, it was in the Southwest. What we do is really like once or twice a year, we update our reserves like that. And that's why I said, if you listen carefully, if you go back and look at the transcript, I said more then. A lot of times we put a plus sign. We don't continually update our reserves. We'll do that some time early next year. Typically we do it once or twice a year, even as we add acreage. But it's a good point. You can calculate numbers that are a lot higher than the numbers we put out. Jeff Hayden – Rodman & Renshaw: Okay. So it's now more kind of 550 Southwest and 350 Northeast to get to the 900?

John Pinkerton

Chairman

That's fair.

Jeff Ventura

President

John Pinkerton

Chairman

Jeff, that's a good question. I think there's been a huge amount of discussion in terms of what's happened with acreage prices throughout some of these shale plays, and to me it makes absolute sense. I think when we all went on vacation in June to the beach, gas prices were $12, $13 and we were feeling all great. By the time we get our kids in school, they were less than $8 going down. So clearly what's happened is I think the industry responded in the way that you would think in that acreage prices have plummeted. I think the classic example is the Haynesville where you had complete hysteria, prices going up to $30,000 an acre for trend trend acreage which is unbelievable. I think a lot of those companies have shut down, and now you can get acreage in the Haynesville for $5,000 or less. And the same thing, not clearly that volatile, but in the Barnett, we see acreage coming down maybe as much to half or maybe even two-thirds as what it cost during the height of the land grab. The good news is and we've gone out of our way to give you both what the cost was in 2008 so far and we continue to lease and what we got from inception, and the good news is that the Marcellus never quite hit those kinds of frothy prices. We've heard prices as high in the Marcellus as $5,000, $6,000, $7,000 an acre. We haven't paid that. We might have paid for five acres offsetting one of our drill sites, just to get somebody that was just being obstinate. But they've never really gone that high. The good news is that given the size of the Marcellus, there's still lots of acreage to pick…

Operator

Operator

Thank you. This concludes today's question-and-answer session. I'd like to turn the call back over to Mr. Pinkerton for his concluding remarks.

John Pinkerton

Chairman

I apologize for the call taking longer. I really wanted Roger to take some time and make sure that we gave you complete transparency in terms of the financial issues that we are all concerned about. Again, we are on heightened alert in terms of those issues. I got to commend Roger. He has done a tremendous job of getting us to where we are in terms of the financial side of our business. He should really be commended. We are focused at Range. My pocket book, it feels a little thinner, but I am completely focused on all the shares, plus 78,088 that I owned from the last conference call we had, and I'm excited to double, triple, quadruple the values of those in the market over the next months, quarters and years. We have a great team. The Marcellus is real. We will tell you the results as we go along in full transparency as we have tried to do before. I know there are a few other people that would like to ask questions. We will be here the remainder of this week to answer those questions. Feel free to call us. We clearly have a lot of new shareholders based on the trading volume, so to the extent that you all have questions, feel free to call Rodney, David or Karen, as well as Jeff, Roger and I, and we would be happy to do that. I would also, for those of you that want to go see what's going on in reality in real-time in the Marcellus, please come to Pittsburgh for our tour. That is going to be terrific. It will get all of us away from our screens and we can talk about what we are actually doing in the field. I think that will give you a lot of perspective of what is going on and the size and the scope and the scale of what we are considering here and I think it's neat. I've obviously spent numerous trips out there, walking around and talking to all the team. They've done an incredible job from Mark West -- if Mark West is on the phone, these are great guys. Buy their MOP units. This is a great company. They have kicked some serious behind on this deal, and I'm a unit holder. They really have done a great job. The union employees, nonunion employees, everybody else that's worked on this just did a terrific job. With that, we'll end the call and hope to see you in Pittsburgh next week.

Operator

Operator

Thank you. Thank you for participating in today's conference. You may disconnect your lines at this time.