Indications that demonstrates that a long-term approach to financial performance and control is considered at Range Resources. Case summary: Range Resources started drilling a vertical test in 2004 on the rocky area’s experts called Marcellus. In 2008, Range’s technical teams extracted 30 million cubic feet of natural gas per day and their production jumped to 400 million cubic feet of natural gas per day. Their future projection is to capture 1 billion cubic feet of natural gas per day. Discovery of Marcellus led company to adopt 10-year growth outlook, based on high production. Range’s finance departments use various tools to monitor performance. Range uses simple balance sheet containing senior bank debt, 10-year subordinated notes and common equity as their finance strategy. Range’s strategy to keep lid on the expenses involve every employee’s skin in the game. It provides equity to all its employees to keep check on the cost performance of the company. Characters in the case: Jeffrey Ventura, President and CEO of Range Resource. Roger Manny, Range’s chief financial officer.

Question

Want to see the full answer?

Answer 1

Question

Chapter P6, Problem 3IC

Summary Introduction

To Determine:

Indications that demonstrates that a long-term approach to financial performance and control is considered at Range Resources.

Case summary:

Range Resources started drilling a vertical test in 2004 on the rocky area’s experts called Marcellus. In 2008, Range’s technical teams extracted 30 million cubic feet of natural gas per day and their production jumped to 400 million cubic feet of natural gas per day. Their future projection is to capture 1 billion cubic feet of natural gas per day.

Discovery of Marcellus led company to adopt 10-year growth outlook, based on high production. Range’s finance departments use various tools to monitor performance. Range uses simple balance sheet containing senior bank debt, 10-year subordinated notes and common equity as their finance strategy.

Range’s strategy to keep lid on the expenses involve every employee’s skin in the game. It provides equity to all its employees to keep check on the cost performance of the company.

Characters in the case:

Jeffrey Ventura, President and CEO of Range Resource.

Roger Manny, Range’s chief financial officer.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Which is more important- planning or controlling? How are they different? What is a break-even point? How is an organization's financial planning and control similar to your personal budget process?

https://youtu.be/C0UOvhnIqxE which outlines management decisions based on an organization's focus on either profitability or liquidity? Why are these important goals seemingly at odds? Under what circumstances might one be more important than the other?

Explain the “Balanced Scorecard” concept. In your own words, why is it important for managers to evaluate performance in more areas than just standard financial/accounting measures?