UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

RANGE RESOURCES CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		001-12209		34-1312571
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

777 Main Street, Suite 800 Ft. Worth, Texas		76102
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (817) 870-2601

(Former name or former address, if changed since last report): Not applicable

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2. below):

	o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
	o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
	o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
	o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

ITEM 2.02 Results of Operations and Financial Condition

     On October 24, 2007 Range Resources Corporation issued a press release announcing its third quarter results. A copy of this press release is being furnished as an exhibit to this report on Form 8-K.

ITEM 9.01 Financial Statements and Exhibits

     (c) Exhibits:

          99.1 Press Release dated October 24, 2007

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		RANGE RESOURCES CORPORATION
		By:		/s/ Roger S. Manny
				Roger S. Manny
				Senior Vice President
Date: October 25, 2007

EXHIBIT INDEX

Exhibit Number		Description
99.1		Press Release dated October 24, 2007

EXHIBIT 99.1

NEWS RELEASE

RANGE REPORTS RECORD THIRD QUARTER RESULTS

FORT WORTH, TEXAS, OCTOBER 24, 2007...RANGE RESOURCES CORPORATION (NYSE: RRC) today announced third quarter results. Record highs were achieved in production, oil and gas sales and cash flow. Oil and gas sales, including cash-settled derivatives, reached $234 million, a 35% increase over the prior year. Results were driven by a 13% increase in production and a 20% increase in cash realized prices. Cash flow from operations before changes in working capital, a non-GAAP measure, rose 45% to $165 million. Reported net income totaled $59 million with earnings per share (diluted) increasing 8% to $0.39. Net income comparable to analyst estimates was $64.4 million while diluted earnings per share was $0.42, 83% greater than the prior year. (See the accompanying tables reconciling these non-GAAP measures.)

Commenting on the announcement, John Pinkerton, Range’s President and CEO, said, “The third quarter results reflect the best quarterly performance in our Company’s history as production and cash flow from operations both reached all-time highs. Our 19^th consecutive quarter of sequential production growth is evidence of another superb effort turned in by our operating teams. The foundation for these results is our large, transparent drilling inventory that includes more than 10,000 locations. Looking forward, we are extremely well positioned, as our drilling program is generating excellent returns, our balance sheet continues to strengthen and we have built a very strong hedge position. Through 2008, we have 77% of our anticipated natural gas production hedged at an average floor price of $8.63 per mcf. We believe that our consistent and disciplined approach will continue to drive shareholder value in the future.”

For the quarter, production totaled 326 Mmcfe per day, comprised of 253 Mmcf per day of gas (78%) and 12,217 barrels per day of oil and liquids. Wellhead prices, including cash-settled derivatives, averaged $7.79 per mcfe, a 20% increase over the prior-year period. The average gas price rose 16% to $7.20 per mcf, and the average oil price rose 40% to $64.37 a barrel. Our hedging program increased the average price by $0.78 per mcfe.

Third quarter development and exploration expenditures totaled $193 million, funding the drilling of 240 (187 net) wells and 38 (29 net) recompletions. A 97% success rate was achieved with 233 (181 net) wells productive. In the first nine months of the year, 609 (465 net) of the newly drilled wells had been placed on production, with the remainder in various stages of completion or waiting on pipeline connection. In addition, $28 million was spent on acreage and $6 million on expanding gas gathering systems. Drilling activity in the fourth quarter remains high with 34 rigs currently running. For the year, Range anticipates drilling 980 (740 net) wells and 84 (64 net) recompletions as part of the Company’s $890 million capital budget. During the third quarter, Range also continued to expand several of its key drilling areas and emerging plays.

In the Permian division, 48 (43 net) wells were drilled. In the North Texas Barnett Shale play, production reached 97 (66 net) Mmcfe per day, and we expect to exit the year at 110 (75 net) Mmcfe per day. We entered the year producing 30 Mmcfe per day, so we are anticipating roughly a 150% production increase for the region. The Barnett test well in Ellis County was completed and went online at a rate of 1.5 Mmcfe per day, which was within the expected range. The well encountered a 314-foot section of Barnett shale and confirmed the gas productivity of the formation in this region. A second well will be spud in the area during the fourth quarter to further test the productive section. Range currently has about 20,000 net acres in Ellis County and a total acreage position of about 90,000 net acres in the Fort Worth Basin. In addition, our field redevelopment efforts in West Texas and New Mexico made steady progress due to continued drilling success.

In the Appalachia division, 157 (113 net) wells were drilled. The Nora field in Virginia continues to be a key area of focus. To date, our program to test downspacing of coal bed methane wells in the field has met with encouraging results. Forty wells have been drilled on 30-acre spacing and initial results indicate no communication with the existing 60-acre wells. Later this year, Range plans to test reduced spacing of the tight gas sands in the Nora field. Finally, a horizontal shale well is planned for the fourth quarter to test the potential of shale gas development in the field, which encompasses approximately 300,000 acres. In Pennsylvania, Range continues to expand its leasehold position in the Devonian Shale play with more than 500,000 net acres currently

under lease. Significantly, the Company’s program to test the shale gas potential in this region is meeting with encouraging results. After testing various drilling and completion techniques, two recent horizontal wells came online at commercial rates of 1.4 and 3.2 Mmcfe per day. In total, 15 horizontal wells are planned in the play in 2007, of which five have been drilled and three completed to date.

Other significant drilling in the quarter included the drilling of two horizontal Granite Wash wells in the Texas Panhandle and one vertical Granite Wash well in central Oklahoma. The three wells came online at a combined production rate of 8.2 (4.3 net) Mmcfe per day. As many as 200 locations may exist on Range’s 27,000 (13,000 net) acres in the two project areas.

Third quarter 2007 results included several non-cash items. A $5.6 million non-cash mark-to-market gain on unrealized derivatives and $14.0 million of non-cash compensation expense were recorded. Excluding these items, net income would have been $64.4 million or $0.44 per share ($0.42 fully diluted). Excluding similar non-cash items from the prior-year quarter, net income would have been $32.1 million or $0.23 per share ($0.23 fully diluted). (See accompanying table for calculation of these non-GAAP measures.)

Direct operating expenses for the quarter were $0.92 per mcfe, the same as the prior-year period. Production taxes at $0.38 per mcfe were also the same as the prior year. Exploration expense in the third quarter totaled $5.3 million, down from $15.8 million in the prior year. General and administrative expenses were $0.44 per mcfe, an increase of $0.13 per mcfe due to higher personnel cost, occupancy expense and professional fees as the Company continues to expand its technical staff. Approximately one-half of the increase is related to new Appalachian activity, including increased staffing in our Abingdon, Virginia office as a result of the recent Nora acquisition and the opening of an office in Pittsburgh, Pennsylvania to focus on the Devonian Shale play. The mcfe amount is the same as the second quarter of 2007. Interest expense was $0.66 per mcfe, three cents higher than the prior year due to Range refinancing short-term floating rate debt for long-term fixed rate debt. Depreciation, depletion and amortization was $1.90 per mcfe, compared to $1.74 in the prior year. An undeveloped leasehold impairment in the Gulf Coast division accounted for $0.06 of the increase, with the remainder due to a varying mix of production from higher-cost properties.

The Company will host a conference call on Thursday, October 25 at 1:00 p.m. ET to review these results. To participate in the call, please dial 877-407-8035 and ask for the Range Resources third quarter financial results conference call. A replay of the call will be available through November 1 at 877-660-6853. The account number is 286 and the conference ID for the replay is 257167.

A simultaneous webcast of the call may be accessed over the Internet at www.rangeresources.com or www.vcall.com. To listen, please go to either website in time to register and install any necessary software. The webcast will be archived for replay on the Company’s website for 15 days.

Non-GAAP Financial Measures and Supplemental Tables:

Effective with the third quarter, Range has reclassified within total revenues its financial reporting of the cash settlement of its commodity derivatives. Under this presentation those hedges considered “effective” under SFAS No. 133 (Appalachia oil and gas hedges and Southwest oil hedges) are included in “Oil and gas sales” when settled. For those hedges designated to regions where the historical correlation between NYMEX and regional prices is “non-highly effective” (Southwest gas) or is “volumetric ineffective” due to sale of the underlying reserves (Gulf Coast oil and gas), they are deemed to be “derivatives” and the cash settlements are included in a separate line item shown as “Derivative fair value income (loss)” along with the change in mark-to-market valuations of such unrealized derivatives. The Company has provided additional information regarding oil and gas sales in a supplemental table included with this release.

Under GAAP, due to the sale of all the Company’s Gulf of Mexico properties at the end of the first quarter of 2007, all Gulf of Mexico operations during the first quarter 2007 and in prior years have been reclassified to “Discontinued operations” in the reported GAAP financial statements. The Company has presented a supplemental table which reconciles these reported GAAP financial amounts to the amounts if the operations of the Gulf of Mexico properties for both the 2007 and 2006 periods were combined with the amounts from the continuing operations. The Company believes that the combined results, by including the Gulf of Mexico properties, corresponds to the methodology used by professional research analysts and, therefore, are useful in evaluating operational trends of the Company and its actual historical performance relative to other oil and gas producing

companies by investors in making investment decisions. (See the reconciliation of reported continuing operations under GAAP to the combined operations, a non-GAAP presentation in the accompanying table.)

Earnings for third quarter 2007 include non-cash ineffective and mark-to-market derivative gains of $5.6 million and a non-cash stock compensation expense of $14.0 million. Excluding such items, income before income taxes would have been $102.4 million, a 96% increase from the prior year. Adjusting for the after-tax effect of these items, the Company’s earnings would have been $64.4 million or $0.44 per share ($0.42 fully diluted). If similar items were excluded, 2006 earnings would have been $32.1 million or $0.23 per share ($0.23 per diluted share). In 2006, results were impacted by a net $55.1 million ineffective and mark-to-market on derivative gains on commodities and interest and a $2.5 million stock compensation expense. (See reconciliation of non-GAAP earnings in the accompanying table.) The Company believes results excluding these items are more comparable to estimates provided by professional research analysts and, therefore, are useful in evaluating operational trends of the Company and its performance relative to other oil and gas producing companies by investors in making investment decisions.

“Cash flow from operations before changes in working capital” as defined in this release represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items. Cash flow from operations before changes in working capital is widely accepted by the investment community as a financial indicator of an oil and gas company’s ability to generate cash to internally fund exploration and development activities and to service debt. Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity. A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release. On its website, the Company provides additional comparative information on prior periods.

Except for historical information, statements made in this release, including those relating to significant potential, future earnings, cash flow, capital expenditures, production growth and planned number of wells 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 the Company’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 and environmental risks. The Company undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in the Company’s filings with the Securities and Exchange Commission, which are incorporated by reference.

Range’s internal estimates of reserves may be subject to revision and may be different from estimates by our external reservoir engineers at year-end. Although we believe the expectations and forecasts reflected in these and other forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.

										2007-29
Contacts:				Rodney Waller, Sr. Vice President				817-869-4258
				David Amend, IR Manager				817-869-4266
		Karen Giles, Sr. IR Specialist				817-869-4238
				Main number:				817-870-2601
				www.rangeresources.com

RANGE RESOURCES CORPORATION

STATEMENTS OF INCOME
Based on GAAP reported earnings with additional
details of items included in each line in Form 10-Q		Three Months Ended September 30,												Nine Months Ended September 30,
(Unaudited, in thousands, except per share data)		2007				2006								2007				2006
Revenues
Oil and gas sales (a)		$	214,424			$	153,054							$	621,636			$	443,143
Transportation and gathering			611				1,101								1,500				2,170
Transportation and gathering — non-cash stock compensation (b)			(103	)			(86	)							(297	)			(237	)
Cash-settled derivative gain (a)(c)			19,384				10,356								50,789				36,180
Change in mark-to-market on unrealized derivatives (c)			5,618				54,950								(40,171	)			83,734
Ineffective hedging gain (loss) (d)			(28	)			184								502				3,490
Gain (loss) on sale of properties (d)			2				93								22				(155	)
Other (d)			2,445				(27	)							4,727				(80	)
		$	242,353			$	219,625				10	%		$	638,708			$	568,245				12	%
Expenses
Direct operating			27,518				21,958								76,880				56,373
Direct operating — non-cash stock compensation (b)			485				378								1,353				1,029
Production and ad valorem taxes			11,316				9,874								32,958				27,970
Exploration			5,302				15,751								27,079				30,997
Exploration — non-cash stock compensation (b)			931				757								2,589				2,196
General and administrative			13,349				8,260								36,861				25,667
General and administrative — non-cash stock compensation (b)			4,709				3,910								13,713				10,347
Deferred compensation plan (e)			7,761				(2,638	)							28,342				(347	)
Interest			19,935				16,389								56,356				38,266
Depletion, depreciation and amortization			57,001				40,606								155,798				106,252
			148,307				115,245				29	%			431,929				298,750				45	%
Income from continuing operations before income taxes			94,046				104,380				-10	%			206,779				269,495				-23	%
Income taxes
Current			133				615								416				1,815
Deferred			34,802				38,707								73,698				99,533
			34,935				39,322								74,114				101,348
Income from continuing operations			59,111				65,058				-9	%			132,665				168,147				-21	%
Discontinued operations, net of taxes			(196	)			(13,728	)							63,593				(9,872	)
Net income		$	58,915			$	51,330				15	%		$	196,258			$	158,275				24	%
Basic
Income from continuing operations		$	0.40			$	0.47							$	0.92			$	1.27
Discontinued operations		$	—				(0.10	)							0.45				(0.07	)
Net income		$	0.40			$	0.37				8	%		$	1.37			$	1.20				14	%
Diluted
Income from continuing operations		$	0.39			$	0.46							$	0.89			$	1.22
Discontinued operations			—				(0.10	)							0.43				(0.07	)
Net income		$	0.39			$	0.36				8	%		$	1.32			$	1.15				15	%
Weighted average shares outstanding, as reported
Basic			147,182				136,983				7	%			143,508				132,426				8	%
Diluted			152,391				142,022				7	%			148,671				137,466				8	%

RANGE RESOURCES CORPORATION

STATEMENTS OF INCOME
Restated for Gulf of Mexico Discontinued
Operations, a non-GAAP Presentation
(Unaudited, in thousands)

		Three Months Ended September 30,												Three Months Ended September 30,
						GOM				2007				2006				GOM				2006
		2007				Discontinued				Including				As				Discontinued				Including
		As reported				Operations				GOM				reported				Operations				GOM
Revenues
Oil and gas sales (a)		$	214,424			$	—			$	214,424			$	153,054			$	9,237			$	162,291
Transportation and gathering			611				—				611				1,101				19				1,120
Transportation and gathering – stock based compensation			(103	)			—				(103	)			(86	)			—				(86	)
Cash-settled derivative gain (a)			19,384				—				19,384				10,356				—				10,356
Change in mark-to-market on unrealized derivatives			5,618				—				5,618				54,950				—				54,950
Ineffective hedging gain (loss)			(28	)			—				(28	)			184				—				184
Equity method investment			484				—				484				(98	)			—				(98	)
Gain (loss) on sale of properties			2				—				2				93				—				93
Interest and other			1,961				—				1,961				71				(1	)			70
			242,353				—				242,353				219,625				9,255				228,880
Expenses
Direct operating			27,518				—				27,518				21,958				2,448				24,406
Direct operating – stock based compensation			485								485				378				—				378
Production and ad valorem taxes			11,316				—				11,316				9,874				111				9,985
Exploration			5,302				—				5,302				15,751				4				15,755
Exploration – stock based compensation			931				—				931				757				—				757
General and administrative			13,349				—				13,349				8,260				—				8,260
General and administrative – stock based compensation			4,709				—				4,709				3,910				—				3,910
Non-cash compensation deferred compensation plan			7,761				—				7,761				(2,638	)			—				(2,638	)
Interest expense			19,935				—				19,935				16,389				507				16,896
Depletion, depreciation and amortization			57,001				—				57,001				40,606				5,637				46,243
			148,307				—				148,307				115,245				8,707				123,952
Income from continuing operations before income taxes			94,046				—				94,046				104,380				548				104,928
Income taxes provision
Current			133				—				133				615				—				615
Deferred			34,802				—				34,802				38,707				192				38,899
			34,935				—				34,935				39,322				192				39,514
Income from continuing operations			59,111				—				59,111				65,058				356				65,414
Discontinued operations – Austin Chalk, net of tax			128				—				128				(14,084	)			—				(14,084	)
Discontinued operations – Gulf of Mexico, net of tax			(324	)			—				(324	)			356				(356	)			—
Net income		$	58,915			$	—			$	58,915			$	51,330			$	—			$	51,330

OPERATING HIGHLIGHTS
(Unaudited)

						GOM				2007								GOM				2006
						Discontinued				Including								Discontinued				Including
		2007				Operations				GOM				2006				Operations				GOM
Average Daily Production
Oil (bbl)			9,129				—				9,129				8,357				374				8,731
Natural gas liquids (bbl)			3,088				—				3,088				3,013				—				3,013
Gas (mcf)			252,845				—				252,845				205,317				13,473				218,790
Equivalents (mcfe) (b)			326,146				—				326,146				273,534				15,716				289,250
Average Prices Realized (c)
Oil (bbl)		$	64.37			$	—			$	64.37			$	46.32			$	41.03			$	46.10
Natural gas liquids (bbl)		$	43.15			$	—			$	43.15			$	39.48			$	—			$	39.48
Gas (mcf)		$	7.20			$	—			$	7.20			$	6.19			$	6.31			$	6.19
Equivalents (mcfe) (b)		$	7.79			$	—			$	7.79			$	6.49			$	6.39			$	6.49
Direct Operating Costs per mcfe (d)
Field expenses		$	0.86			$	—			$	0.86			$	0.84			$	1.03			$	0.86
Workovers		$	0.06			$	—			$	0.06			$	0.03			$	0.66			$	0.06
Total operating costs		$	0.92			$	—			$	0.92			$	0.87			$	1.69			$	0.92

RANGE RESOURCES CORPORATION

STATEMENTS OF INCOME
Restated for Gulf of Mexico Discontinued
Operations, a non-GAAP Presentation
(Unaudited, in thousands)

		Nine Months Ended September 30,												Nine Months Ended September 30,
						GOM				2007								GOM				2006
		2007				Discontinued				Including				2006				Discontinued				Including
		As reported				Operations				GOM				As reported				Operations				GOM
Revenues
Oil and gas sales (a)		$	621,636			$	9,938			$	631,574			$	443,143			$	27,282			$	470,425
Transportation and gathering			1,500				10				1,510				2,170				76				2,246
Transportation and gathering – stock based compensation			(297	)			—				(297	)			(237	)			—				(237	)
Cash-settled derivative gain (a)			50,789				—				50,789				36,180				—				36,180
Change in mark-to-market on unrealized derivatives			(40,171	)			—				(40,171	)			83,734				—				83,734
Ineffective hedging gain (loss)			502				—				502				3,490				—				3,490
Equity method investment			1,280				—				1,280				(61	)			—				(61	)
Gain (loss) on sale of properties			22				—				22				(155	)			—				(155	)
Interest and other			3,447				(1	)			3,446				(19	)			(2	)			(21	)
			638,708				9,947				648,655				568,245				27,356				595,601
Expenses
Direct operating			76,880				2,477				79,357				56,373				7,585				63,958
Direct operating – stock based compensation			1,353				—				1,353				1,029				—				1,029
Production and ad valorem taxes			32,958				105				33,063				27,970				411				28,381
Exploration			27,079				—				27,079				30,997				1,174				32,171
Exploration – stock based compensation			2,589				—				2,589				2,196				—				2,196
General and administrative			36,861				47				36,908				25,667				—				25,667
General and administrative – stock based compensation			13,713				—				13,713				10,347				—				10,347
Non-cash compensation deferred compensation plan			28,342				—				28,342				(347	)			—				(347	)
Interest expense			56,356				594				56,950				38,266				1,184				39,450
Depletion, depreciation and amortization			155,798				3,325				159,123				106,252				11,391				117,643
			431,929				6,548				438,477				298,750				21,745				320,495
Income from continuing operations before income taxes			206,779				3,399				210,178				269,495				5,611				275,106
Income taxes provision
Current			416				—				416				1,815				—				1,815
Deferred			73,698				1,190				74,888				99,533				1,964				101,497
			74,114				1,190				75,304				101,348				1,964				103,312
Income from continuing operations			132,665				2,209				134,874				168,147				3,647				171,794
Discontinued operations – Austin Chalk, net of tax			(411	)			—				(411	)			(13,519	)			—				(13,519	)
Discontinued operations – Gulf of Mexico, net of tax			64,004				(2,209	)			61,795				3,647				(3,647	)			—
Net income		$	196,258			$	—			$	196,258			$	158,275			$	—			$	158,275

OPERATING HIGHLIGHTS
(Unaudited)

						GOM				2007								GOM				2006
						Discontinued				Including								Discontinued				Including
		2007				Operations				GOM				2006				Operations				GOM
Average Daily Production
Oil (bbl)			9,377				142				9,519				8,296				332				8,628
Natural gas liquids (bbl)			3,068				—				3,068				3,047				—				3,047
Gas (mcf)			236,153				3,492				239,645				187,390				12,795				200,185
Equivalents (mcfe) (b)			310,826				4,346				315,172				255,448				14,784				270,232
Average Prices Realized (c)
Oil (bbl)		$	60.13			$	58.17			$	60.10			$	46.80			$	43.28			$	46.66
Natural gas liquids (bbl)		$	37.95			$	—			$	37.95			$	34.88			$	—			$	34.88
Gas (mcf)		$	7.55			$	8.06			$	7.56			$	6.73			$	6.69			$	6.73
Equivalents (mcfe) (b)		$	7.92			$	7.56			$	7.93			$	6.87			$	6.76			$	6.87
Direct Operating Costs per mcfe (d)
Field expenses		$	0.85			$	1.78			$	0.86			$	0.78			$	1.39			$	0.81
Workovers		$	0.06			$	0.31			$	0.06			$	0.03			$	0.49			$	0.06
Total operating costs		$	0.91			$	2.09			$	0.92			$	0.81			$	1.88			$	0.87

RANGE RESOURCES CORPORATION

BALANCE SHEETS
(Unaudited, in thousands)

		September 30,				December 31,
		2007				2006
Assets
Current assets		$	158,907			$	137,872
Current unrealized derivative gain			72,153				93,588
Assets held for sale			—				79,304
Assets of discontinued operation			—				78,161
Oil and gas properties			3,362,024				2,608,088
Transportation and field assets			58,679				47,143
Unrealized derivative gain 61,			10,590				61,068
Other			186,073				82,450
		$	3,848,426			$	3,187,674
Liabilities and Stockholders’ Equity
Current liabilities		$	235,059			$	214,878
Liabilities of discontinued operation			—				28,333
Current asset retirement obligation			1,251				3,853
Current unrealized derivative loss			7,657				4,621
Bank debt			266,000				452,000
Subordinated notes			847,062				596,782
Total long-term debt			1,113,062				1,048,782
Deferred taxes			562,703				468,643
Unrealized derivative loss			4,967				266
Deferred compensation liability			133,962				90,094
Long-term asset retirement obligation			80,953				72,043
Common stock and retained earnings			1,737,404				1,241,696
Stock in deferred compensation plan and treasury			(41,566	)			(22,056	)
Other comprehensive income			12,974				36,521
Total stockholders’ equity			1,708,812				1,256,161
		$	3,848,426			$	3,187,674

RANGE RESOURCES CORPORATION

CASH FLOWS FROM OPERATIONS
(Unaudited, in thousands)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2007				2006				2007				2006
Net income		$	58,915			$	51,330			$	196,258			$	158,275
Adjustments to reconcile net income to net cash provided by operations:
Gain from discontinued operations			196				13,728				(63,593	)			9,872
Gain from equity investment			(484	)			98				(1,280	)			61
Deferred income tax (benefit)			34,802				38,707				73,698				99,533
Depletion, depreciation and amortization			57,001				40,606				155,798				106,252
Exploration dry hole costs			174				5,566				9,072				9,291
Change in mark-to-market on unrealized derivatives			(5,618	)			(54,950	)			40,171				(83,734	)
Ineffective hedging (gain) loss			28				(184	)			(502	)			(3,178	)
Amortization of deferred issuance costs			591				376				1,667				1,221
Non-cash compensation			14,081				2,085				46,770				13,839
(Gain) loss on sale of assets and other			2,128				86				2,247				1,009
Changes in working capital:
Accounts receivable			(2,416	)			(8,975	)			(29,595	)			29,323
Inventory and other			(1,932	)			(49	)			(1,672	)			(1,911	)
Accounts payable			20,081				(12,285	)			11,597				(17,801	)
Accrued liabilities			1,509				2,761				4,894				(2,387	)
Net changes in working capital			17,242				(18,548	)			(14,776	)			7,224
Net cash provided from continuing operations		$	179,056			$	78,900			$	445,530			$	319,665

RECONCILIATION OF CASH FLOWS
(Unaudited, in thousands)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2007				2006				2007				2006
Net cash provided from continuing operations, as reported		$	179,056			$	78,900			$	445,530			$	319,665
Net change in working capital			(17,242	)			18,548				14,776				(7,224	)
Exploration expense			5,128				10,185				18,007				21,706
Cash flow from Gulf of Mexico properties			—				6,189				6,829				18,176
Other			(1,738	)			212				(1,465	)			(1,293	)
Cash flow from operations before changes in working capital, non-GAAP measure		$	165,204			$	114,034			$	483,677			$	351,030

ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING
(Unaudited, in thousands)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2007				2006				2007				2006
Basic:
Weighted average shares outstanding			148,586				138,318				144,706				133,767
Stock held by deferred compensation plan			(1,404	)			(1,335	)			(1,198	)			(1,341	)
			147,182				136,983				143,508				132,426
Dilutive:
Weighted average shares outstanding			148,586				138,318				144,706				133,767
Dilutive stock options under treasury method			3,805				3,704				3,991				3,699
			152,391				142,022				148,697				137,466

RANGE RESOURCES CORPORATION

OIL AND GAS SALES INFORMATION
(Unaudited, in thousands, except per unit data)

		Based upon Statements of Income Including
		Gulf of Mexico Discontinued Operations
		Three Months Ended												Nine Months Ended
		September 30,												September 30,
		2007				2006								2007				2006
Oil and gas sales components:
Oil sales		$	59,218			$	51,961							$	163,280			$	149,820
NGL sales			12,259				10,942								31,791				29,012
Gas sales			138,832				123,254								422,435				374,361
Cash-settled hedges (effective):
Crude oil			(5,120	)			(14,931	)							(7,068	)			(39,928	)
Natural gas			9,235				(8,935	)							21,136				(42,840	)
Total oil and gas sales, as reported		$	214,424			$	162,291				32	%		$	631,574			$	470,425				34	%
Derivative fair value income (loss) components:
Cash-settled derivatives (ineffective):
Crude oil		$	(33	)		$	—							$	(29	)		$	—
Natural gas			19,417				10,356								50,818				36,180
Change in mark-to-market on unrealized derivatives			5,618				54,950								(40,171	)			83,734
Total derivative fair value income, as reported		$	25,002			$	65,306							$	10,618			$	119,914
Oil and gas sales, including cash-settled derivatives:
Oil sales		$	54,065			$	37,030							$	156,183			$	109,892
NGL sales			12,259				10,942								31,791				29,012
Gas sales			167,484				124,675								494,389				367,701
Total		$	233,808			$	172,647				35	%		$	682,363			$	506,605				35	%
Production during the period:
Oil (bbl)			839,863				803,224				5	%			2,598,858				2,355,348				10	%
NGL (bbl)			284,088				277,161				2	%			837,625				831,814				1	%
Gas (mcf)			23,261,704				20,128,662				16	%			65,423,001				54,650,369				20	%
Gas equivalent (mcfe) (a)			30,005,410				26,610,972				13	%			86,041,899				73,773,341				17	%
Average prices realized, including cash-settled hedges and derivatives:
Crude oil (per bbl)		$	64.37			$	46.10				40	%		$	60.10			$	46.66				29	%
NGL (per bbl)		$	43.15			$	39.48				9	%		$	37.95			$	34.88				9	%
Natural gas (per mcf)		$	7.20			$	6.19				16	%		$	7.56			$	6.73				12	%
Equivalent (per mcfe) (a)		$	7.79			$	6.49				20	%		$	7.93			$	6.87				15	%