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|Range Resources and MarkWest Energy Partners Announce Marcellus Shale Agreement|
Fort Worth and Denver – June 17, 2008 – Range Resources Corporation (NYSE:RRC) and MarkWest Energy Partners, L.P. (NYSE:MWE) today announced their agreement for MarkWest to construct and operate gas gathering pipelines and processing facilities associated with Range’s Marcellus Shale acreage in the Appalachian Basin. MarkWest expects to invest approximately $50 million in 2008 and anticipates investing up to an additional $125 million in 2009 based on projects currently being developed.
“We are very pleased to announce this arrangement with MarkWest Energy Partners,” said John Pinkerton, Chairman of the Board and Chief Executive Officer of Range Resources. “Range has well over one million net acres in the Marcellus play. Having the pipeline and processing infrastructure in place will be important for us to develop the reserve potential of the play. Given our continued drilling success in the Marcellus and the MarkWest arrangement, we anticipate selling material quantities of natural gas by the first quarter 2009. MarkWest has a proven track record of supporting producers in the development of shale plays, and we look forward to partnering with them.”
“We are excited about this agreement and our strategic relationship with Range Resources,” said Frank Semple, President and Chief Executive Officer of MarkWest Energy Partners. “The Marcellus Shale is one of the most exciting new natural gas plays in the U.S., and Range is leading the development of this important resource. This gathering and processing arrangement will establish our presence in the prolific Marcellus Shale play and will provide the critical link between gas produced at the wellhead and downstream delivery to the markets.”
Range Resources Corporation is an independent oil and gas company operating in the Southwestern, Appalachian and Gulf Coast regions of the United States.
MarkWest Energy Partners, L.P. is a growth-oriented master limited partnership engaged in the gathering, transportation, and processing of natural gas; the transportation, fractionation, marketing, and storage of natural gas liquids; and the gathering and transportation of crude oil. MarkWest has extensive natural gas gathering, processing, and transmission operations in the southwestern and Gulf Coast regions of the United States and is the largest natural gas processor in the Appalachian region. The primary business strategy of MarkWest is to provide outstanding customer service at competitive rates and to expand its assets and cash flow available for distribution through a balanced combination of organic growth projects and selective acquisitions.
Range Resources Corporation Forward-Looking Statements: Except for historical information, statements made in this press release, including those relating to expected capital expenditures, acquisitions, production growth, reserve additions and rates of return 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 Range’s management believes are reasonable based on currently available information; however, management’s assumptions and Range’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 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. Range undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in Range’s filings with the Securities and Exchange Commission, which are incorporated by reference, as well as in the MarkWest Energy Partners, L.P. Forward-Looking Statements below.
MarkWest Energy Partners, L.P.