Production averaged 416 Mmcfe per day, representing another record high for the company and a 12% increase over the prior-year quarter this represents the 25th consecutive quarter of sequential production growth. Currently, the company is running 15 rigs versus 33 rigs at this time last year. While production increased 12%, realized prices fell 31%. Oil and gas prices, after adjustment for hedging, averaged $6.62 per mcfe, versus $9.55 per mcfe in the prior year’s quarter. This compares to price realizations of $6.86 per mcfe for fourth quarter 2008. As a result, oil and gas sales (including cash settled derivatives) declined 23% to $248 million. Cash flow from operations before changes in working capital, a non-GAAP measure, declined 34% to $158 million.

Commenting on the announcement, John Pinkerton, Range Resources’ chairman and chief executive officer, said, “While our financial results reflect the decline in oil and gas prices, our operating results were strong, reflecting excellent first quarter drilling results. On the cost side of our business, unit operating costs continued to decline, and we are seeing significant decreases in service costs. In regard to our capital budget, we expended the majority of our leasehold budget in the first quarter to tie up key leases on attractive terms, especially as it relates to the Marcellus shale play. While debt rose in the first quarter, we anticipate reducing debt during the remainder of the year through lower capital spending and asset sales. For the balance of the year, 83% of our natural gas production is hedged providing significant cash flow protection.”

“For the remainder of this year through 2010, we believe, based on current future prices and the asset sales in process, that we can execute our capital program while maintaining a strong balance sheet. Given our excellent portfolio of drilling opportunities driven by the Marcellus, Nora and the Barnett, coupled with our low cost structure and shallow decline property base, we are well positioned to continue to grow production and reserves at low costs, even if natural gas prices do not rebound as soon as many predict. In particular, our progress in the Marcellus shale play continues to give us increasing confidence that we can do more with less. Given the progress we have made so far in 2009, we not only anticipate exiting 2009 at a net Marcellus production rate of 80 – 100 Mmcfe per day, but also now anticipate doubling that in 2010.”

Financial Discussion:

For the quarter, production averaged 416 Mmcfe per day, comprised of 339 Mmcf per day of gas (82%) and 12,725 barrels per day of oil and natural gas liquids. Wellhead prices, including cash-settled derivatives, averaged $6.62 per mcfe, a 31% decrease over the prior-year period. The average gas price was $6.47 per mcf, a 30% decrease, and the average oil price decreased 15% to $59.64 a barrel.

Direct operating expenses for the quarter were $0.93 per mcfe, a 3% decrease versus the prior-year quarter of $0.96 and $0.94 in the fourth quarter 2008. Production taxes were $0.22 per mcfe, a 46% decline versus the prior-year quarter of $0.41 per mcfe due to lower commodity prices and $0.27 per mcfe in the fourth quarter 2008. Exploration expense in the first quarter totaled $12.3 million, down from $15.5 million in the prior year due primarily to lower dry hole costs. General and administrative expenses were $0.50 per mcfe, an increase of $0.12 per mcfe from the prior-year quarter due primarily to higher personnel costs associated with the Marcellus shale play, but $0.03 per mcfe lower than fourth quarter 2008.

Interest expense rose to $26.6 million compared to $23.1 million in the prior-year quarter, due to higher debt balances. Interest expense was $0.71 per mcfe as compared to $0.69 per mcfe for the prior-year quarter and $0.74 per mcfe for the fourth quarter 2008. Depreciation, depletion and amortization rose to $2.25 per mcfe, versus $2.08 per mcfe in the prior-year quarter and $2.18 per mcfe for fourth quarter 2008 due to higher depletion rates and our current production mix. The first quarter abandonment and impairment expense was $19.6 million compared to $1.4 million in the comparable period of the prior year due to increases in our estimates of abandonment expense.

First quarter development expenditures totaled $166 million, funding the drilling of 101 (64.4 net) wells and seven net recompletions. A 99% success rate was achieved with 100 (63.8 net) wells productive. At quarter-end, 52 (33.2 net) wells were in various stages of completion or waiting on pipeline connection. In addition, $72 million was spent on acreage and $8 million on expanding gas gathering systems and $12 million on exploration. The significant investment in acreage in first quarter was primarily spent in the Marcellus and Barnett shale plays.

Operational Discussion:

During the first quarter, the Marcellus shale division continued to make solid progress. In 2008, Range Resources ordered six custom-designed drilling rigs for the Marcellus. The first two of the custom-designed rigs, which come equipped with crawlers, have been delivered and are now drilling. These rigs are expected to save both time and money. Range Resources plans to drill more than 60 horizontal wells in the Marcellus shale play in 2009.

Marcellus well results continue to be encouraging as the most recently completed horizontal well had a 24-hour initial production rate of 7.9 Mmcfe per day. We are also in the process of testing another horizontal well at a rate of 10.7 Mmcfe per day. The company previously announced that the second phase of the Marcellus infrastructure was completed. This includes a new cryogenic gas processing facility, which added an additional 30 Mmcf per day in gas processing capability, bringing processing capacity to a total of 60 Mmcf per day. Two additional expansions of processing capacity are planned for southwestern Pennsylvania that would bring processing capacity to 200 Mmcf per day by late 2009 or early 2010.

The Southwest division delivered strong drilling results in the first quarter. Despite going from six to three rigs in the North Texas Barnett shale play, production continued to climb. For the month of March 2009, Barnett production averaged 125 Mmcfe per day. This is highlighted by the completion of a new southern Tarrant county well, which averaged 9.6 Mmcfe per day for the first 30 days. This is believed to be the highest 30-day average reported to date from any Barnett shale well. In addition, five new Barnett wells tested at a combined rate of 19 Mmcfe per day. All five of the wells are located in southeast Tarrant and northwest Ellis counties. Finally, an exceptional well in Parker county recently tested for 5Mmcfe per day. Plans are to focus drilling in the core area of the Barnett with a three-rig program for the remainder of 2009.

Range Resources’ Appalachia division continued to focus on its key coal bed methane, shale and tight gas sand drilling projects in the Nora area of Virginia. After many years of development drilling in the Nora tight gas sands, Range Resources just completed the best well ever drilled in the history of the field. Range Resources has a 50% working interest in the well, which averaged 3Mmcfe per day for 30 days. During the quarter, Range Resources drilled two horizontal Huron shale wells in the Nora field. To date, nine horizontals have been completed to the Huron shale and two horizontal Berea wells have been completed. Of the eight horizontal Huron shale wells that are currently on production, the initial production rates have averaged 1.1 Mmcf per day. The initial production rate on the two Berea horizontal wells has averaged 1.3 Mmcf per day. In addition for the first quarter of 2009, Range Resources has drilled 46 coal bed and 11 tight gas sand wells in the Nora field.