Alan Farquharson on production growth
From 2013 - Alan Farquharson - Range Resources · · Oil and Gas 360 - EnerCom
“While it's 20 to 25% production growth for many years, cash flow is actually going to grow a little bit faster than that, so as a result of that with cash flow growing a little bit faster our debt metrics will actually be coming down over time.”
On , Alan Farquharson, Senior Vice President of Reservoir Engineering & Economics at RANGE RESOURCES CORP, spoke about production growth during 2013 - Alan Farquharson - Range Resources on Oil and Gas 360 - EnerCom.
About Alan Farquharson
In 2013, Alan Farquharson, then Senior Vice President at Range Resources, discussed the company's projected annual production growth rate of 20 to 25% over several years, targeting nearly three billion cubic feet per day. He stated that the company conducted a "bottoms up analysis" involving land, geology, drilling, completions, regulatory, and marketing teams to support this growth. Farquharson noted that Range Resources planned to export ethane to Europe in 2015 through a deal with INEOS. Farquharson said that cash flow was expected to grow faster than production, allowing the company to reduce its debt-to-EBITDA ratio from 2.8 in 2012 to under two by the end of 2013, with only modest capital outspending of around $350 million in the initial years. He added that 85% of capital was allocated to the Marcellus Shale, while other plays such as the horizontal Mississippian, Klein Shale, Wolfberry, Upper Devonian, and Utica were considered part of the company's emerging play inventory.