Range Resources’ position in the Marcellus, and the market access it offers, gives the a leg up over condensate producers in other parts of the country, according to the company’s Senior Vice-President Rodney Waller.

Range holds a million acres in the Pennsylvania portion of the Marcellus shale some in dry gas areas, and some in wet gas or “super rich,” where the production stream yields liquids, such as condensate and NGLs. Range Chief Executive Jeff Ventura noted earlier this year that in 2012, the company’s Marcellus wet gas acreage was producing 49% liquids, compared to 57% in the super rich area.

Along with strong liquids yields in parts of the Marcellus, Range also has the benefit of strong condensate demand in surrounding areas, according to Waller. “Where we are in Appalachia, you’re in a very high demand area from White Plains (New York) down to Baltimore,” said Waller during the company’s second-quarter 2013 earnings call on Friday. He noted that Canada has also been importing condensate and NGLs.

And proximity to those markets gives Range the advantage on condensate transportation costs, Waller said. “Any demand that you have in Appalachia would have to be sourced from the Gulf of Mexico, which is going to add a huge amount of transportation costs,” he said. “Whether it’s NGLs, condensates, propanes – we have this built-in differential, because the only other way to get it is to buy it from [Texas NGL hub] Mont Belvieu, which is going to cost you money.”

NGL prices as a percentage of West Texas Intermediate crude prices have declined from historical norms owing to robust production growth. “We’re basically totally disconnected from the Gulf and the challenges that are going on there with the NGL markets and the condensate market,” he said.

In addition to the advantage of lower transportation costs to supply Northeastern US and Canadian markets, Range’s Marcellus acreage is well positioned for Atlantic Basin seaborne exports.

“There’s still upside to the condensate market in Appalachia,” Waller said, but “there’s always the ability to stabilize condensate and have it be qualified for export if that is required.”

Range currently exports propane and has agreements in place enabling the company to export ethane from 2015.

“It’s not only finding a large field and having a million-acre footprint in the state, and being in some of the core areas, but also all the advantage of having that infrastructure there is really critical,” Ventura said.