Range Resources Corporation (NYSE:RRC) Q1 2019 Earnings Conference Call Transcript
Apr 23, 2019 • 09:00 am ET
Thank you, Mr. Ventura. The question-and-answer session will now begin. (Operator Instructions) The first question comes from the line of Marshall Carver with Heikkinen Energy Advisors.
Yes, thank you. On the year-end call, you discussed spending approximately 35% of full year CapEx budget in 1Q, but spending came in below that. Is that due to well timing or well costs driven below your forecast? Do you have any color on why the 1Q spend came in lower?
Dennis L. Degner
Yes, good morning Marshall. This is Dennis. I'll start of by saying we try to highlight this morning a couple of key themes on what helped us to basically have the capital spend results that we did in the first quarter and a big portion of it clearly is our operational efficiencies.
The drilling team continues to really do a great job of advancing the ball on our ability to drill long laterals, and we see that translate into a significant reduction in our drilling cost per foot.
The other part is as we saw some efficiency gains this quarter versus last year through our fracturing operations, 20% are a pretty strong move much our operating team that helped us further to some capital savings as well.
And then thirdly, the waterside. I mean, it's an area that we continue to see good cooperation between other operations on top of the 100% recycling effort that we have and it translates into significant savings, as you look across the quarters and the balance of the year, could translate into more savings than what we're seeing today. So pretty encouraged by that.
The one pad that we had at the end of the quarter, we referenced in the superrich that we turned in line the three wells, there are some wells that moved into the first weeks of Q2, but the majority of those dollars already spent. So we're going to get the advantage of seeing those volumes show up in Q2, which we're encouraged to see, but there will be a few capital dollars that also show up in Q2.
All right. Thank you.
Dennis L. Degner
Our next question comes from the line of Ron Mills with Johnson Rice.
Good morning. Dennis, I think you referenced NGL prices and I know relative, given the move up in WTI, the -- it looks like you brought down the low end of the range, but your comments were pretty telling that even when using the strip, the absolute prices are higher than are actually looking to trend higher. Any additional color, whether it is about strip or your thoughts on NGL markets as we look through the rest of the year, particularly fourth quarter when the seasonality starts to benefit NGLs even more?
Good morning, Ron. Thanks for the question. This is Alan Engberg, I'm the Vice President of our Liquids Marketing team. So I'll see if I can give you some color around liquids. Absolute prices are actually similar to what we guided back in February,