FORT WORTH, Texas--(BUSINESS WIRE)--RANGE RESOURCES CORPORATION (NYSE: RRC) today announced the execution of the first ethane sales contract for its Marcellus Shale liquid-rich gas in southwestern Pennsylvania. The contract between NOVA Chemicals Corporation of Calgary, Alberta Canada and a wholly-owned subsidiary of Range Resources Corporation became effective after the successful conclusion of the binding open season of the Mariner West Project. The Mariner West Project is a Marcellus Shale ethane pipeline project jointly developed by Sunoco Logistics Partners L.P. (NYSE: SXL) and MarkWest Liberty Midstream & Resources, LLC, a partnership between MarkWest Energy Partners, L.P. (NYSE: MWE) and The Energy & Minerals Group. Sunoco Logistics will transport ethane through its Mariner West system from MarkWest’s processing and fractionation facilities in southwest Pennsylvania to the international border near Marysville, Michigan for further delivery into the Sarnia, Ontario petrochemical market. Initial deliveries of ethane under contract are expected to commence in late 2013 with full delivery commencing in early 2014.
Commenting on the announcement, John Pinkerton, Range’s Chairman and CEO, said, “This is an important milestone in the development of the Marcellus Shale. After years of planning and studying alternative solutions, this project is the first in a series of projects expected to be built to service the growing liquids-rich area of the Marcellus Shale. Range is excited to be associated with these organizations in pioneering the path of bringing much-needed ethane to the North American petrochemical industry. To Range, this contract will help assure us that we can continue to ramp up our Marcellus Shale development in the liquid-rich area of the play. We are pleased to have NOVA Chemicals as our first ethane customer and look forward to adding additional customers as our ethane production increases. Range is discussing potential sales arrangements with customers throughout North America, the United Kingdom and Europe illustrating the worldwide impact that the Marcellus Shale is having on Pennsylvania and the global petrochemical sector. This project will create good-paying, permanent jobs in Pennsylvania and neighboring states at a time when jobs are needed most.”
RANGE RESOURCES CORPORATION (NYSE: RRC) is an independent natural gas company operating in the Appalachia and Southwest regions of the United States. Range has pioneered the Marcellus Shale development since 2004 with over 750,000 net acres in the principal development fairway. More information is available at www.rangeresources.com.
Except for historical information, statements made in this release such as expected commencement of sales, future ethane contracts, future ethane production and future markets are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management’s assumptions and Range’s future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the volatility of oil and gas prices, the results of our hedging transactions, the costs and results of drilling and operations, the timing of production, mechanical and other inherent risks associated with oil and gas production, weather, the availability of drilling equipment, changes in interest rates, litigation, uncertainties about reserve estimates, environmental risks and regulatory changes. Range undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in Range’s filings with the Securities and Exchange Commission (“SEC”), which are incorporated by reference. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K by calling the SEC at 1-800-SEC-0330.