NEW YORK (AP) — Independent oil and natural gas producer Range Resources' 2013 capital spending budget will decline by 19 percent to $1.3 billion.
Range Resources Corp. said Wednesday that the 2013 budget includes about $1.1 billion for drilling and recompletions, $100 million for leasehold and renewals, $75 million for pipelines and facilities and $25 million for seismic.
The company's 2012 capital spending budget was $1.6 billion.
The company, based in Fort Worth, Texas, said that the majority of the 2013 capital spending budget — approximately 85 percent — will be put toward oil and liquids-rich projects mostly in the Marcellus Shale and Horizontal Mississippian plays. Range Resources said that these projects have the highest estimated rates of return in its portfolio.
The company plans to fund the 2013 capital spending budget from operating cash flow, proceeds from asset sales and available liquidity under its credit facility. Those properties that may be involved in an asset sale include some of Range's Permian Basin properties in southeast New Mexico and West Texas.
President and CEO Jeff Ventura said in a statement that the 2013 capital budget is expected to deliver 20 percent to 25 percent production growth and strengthen its balance sheet.
Shares of Range Resources rose $1.20, or 1.9 percent, to $65.87 in afternoon trading on Wednesday. They have traded in a 52-week range of $52.34 to $73.94.