RANGE RESOURCES CORPORATION (NYSE: RRC) today
announced its third quarter 2019 financial results.
Highlights –
- Sold 2.5% overriding royalty in southwest Appalachia leases for
gross proceeds of $750 million
- Total asset sales of approximately $1.1 billion in the last 12
months
- Increased credit facility commitment from $2.0 billion to $2.4
billion in October
- Expected 2019 capital spending reduced to $736 million, $20
million below budget
- Board of Directors approved a $100 million share repurchase
program, effective October 2019
- Third quarter production averaged 2,244 Mmcfe per day
- Third quarter cash unit costs of $2.02 per mcfe, an improvement
of 7% since year-end 2018
- Third quarter NGL differential of $0.29 below Mont Belvieu
equivalent, best in recent Company history
Commenting on the quarter, Jeff Ventura, the
Company’s CEO and President said, “In third quarter 2019, Range
delivered on several initiatives: improving our cost structure,
enhancing balance sheet strength and delivering on our operational
plans for less capital than originally budgeted. Our
financial position has materially improved over the last year with
over $1 billion in asset sales being put toward debt
reduction. Maintaining financial strength and flexibility is
a core principle of Range’s strategy and the recent increase in
bank commitments not only enhances liquidity but demonstrates the
durability of Range’s assets and business. While Range has
made progress so far this year, we remain committed to positioning
the Company for success through the commodity cycles.”
Financial Discussion
Except for generally accepted accounting
principles (GAAP) reported amounts, specific expense categories
exclude non-cash impairments, unrealized mark-to-market adjustment
on derivatives, non-cash stock compensation and other items shown
separately on the attached tables. “Unit costs” as used in
this release are composed of direct operating, transportation,
gathering, processing and compression, production and ad valorem
taxes, general and administrative, interest and depletion,
depreciation and amortization costs divided by production.
See “Non-GAAP Financial Measures” for a definition of each of the
non-GAAP financial measures and the tables that reconcile each of
the non-GAAP measures to their most directly comparable GAAP
financial measure.
Third Quarter 2019 Results
GAAP revenues for third quarter 2019 totaled
$622 million, GAAP net cash provided from operating activities
(including changes in working capital) was $104 million, and GAAP
net income was a loss of $28 million ($0.11 per diluted
share). Third quarter earnings results include a $75 million
derivative gain due to decreases in commodity prices and a $36
million loss related to asset sales.
Non-GAAP revenues for third quarter 2019 totaled
$628 million, and cash flow from operations before changes in
working capital, a non-GAAP measure, was $128 million.
Adjusted net income comparable to analysts’ estimates, a non-GAAP
measure, was a loss of $18 million ($0.07 per diluted share) in
third quarter 2019.
Capital Expenditures
Third quarter 2019 drilling and completion
expenditures were $148 million. In addition, during the
quarter, $9 million was spent on acreage purchases and $1 million
on gathering facilities. Total capital expenditures year to
date in 2019 were $576 million. Range is reducing its
expected 2019 capital spending by $20 million to $736 million as a
result of continued efficiency gains, water savings, and service
cost improvements.
Asset Sales and Bank Credit
Facility
During the quarter, Range sold 2.5%
proportionately reduced overriding royalty interests in 350,000 net
surface acres in southwest Appalachia for gross proceeds totaling
$750 million. The royalty sales were effective as of March 1,
2019, and apply to existing and future Marcellus, Utica and Upper
Devonian development on the subject leases. Sale processes to
monetize additional non-core assets remain underway.
Separately during the third quarter, Range
divested of certain legacy dry gas assets in Appalachia that were
producing approximately 3 Mmcfe per day. The divestiture is
modestly accretive to cash flow. Range maintains the rights
to develop deeper horizons including Marcellus, Utica and Upper
Devonian.
In October, the Company increased its credit
facility commitment from $2.0 billion to $2.4 billion.
Repurchase
Programs
Range repurchased and retired approximately $94
million in principal amount of its senior notes during the quarter
for a total cash spend of approximately $90 million.
Range’s Board of Directors approved the
initiation of a $100 million equity repurchase program, beginning
October 2019. The share repurchase program will be executed
at times deemed appropriate by the Company.
Third Quarter Unit Costs and Realized
Pricing
The following table details Range’s unit cost
trend since year-end 2018 (a):
Expenses |
|
3Q 2019($/Mcfe) |
|
|
2Q 2019($/Mcfe) |
|
|
1Q 2019($/Mcfe) |
|
|
4Q 2018($/Mcfe) |
|
|
|
|
|
|
|
|
|
|
|
|
Direct
operating(a) |
$ |
0.17 |
|
$ |
0.16 |
|
$ |
0.16 |
|
$ |
0.18 |
Transportation,
gathering, processing and compression |
|
1.43 |
|
|
1.45 |
|
|
1.49 |
|
|
1.51 |
Production and ad
valorem taxes |
|
0.04 |
|
|
0.05 |
|
|
0.06 |
|
|
0.08 |
General and
administrative(a) |
|
0.16 |
|
|
0.18 |
|
|
0.18 |
|
|
0.16 |
Interest
expense(a) |
|
0.22 |
|
|
0.24 |
|
|
0.25 |
|
|
0.25 |
Total cash unit costs(b) |
|
2.02 |
|
|
2.08 |
|
|
2.13 |
|
|
2.18 |
Depletion,
depreciation and amortization (DD&A) |
|
0.67 |
|
|
0.68 |
|
|
0.68 |
|
|
0.75 |
Total cash unit costs plus DD&A(b) |
$ |
2.68 |
|
$ |
2.76 |
|
$ |
2.82 |
|
$ |
2.93 |
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes stock-based compensation, legal
settlements, rig release penalties, termination costs and
amortization of deferred financing costs. |
(b) May not add due to rounding. |
|
Third quarter 2019 cash unit costs totaled $2.02
per mcfe, an improvement of $0.16 per mcfe compared to fourth
quarter 2018. This improvement was primarily driven by lower
transportation, gathering, processing and compression (GP&T),
interest and production tax expenses per mcfe. Range expects
an additional 2% reduction in cash unit costs during fourth quarter
2019, primarily driven by additional improvements in GP&T and
interest expense per mcfe. Range anticipates further unit
cost improvement in 2020 and beyond to be driven by lower GP&T,
interest, and cash G&A per mcfe.
The following table details Range’s average
production and realized pricing for third quarter 2019:
Net Production |
|
Natural Gas(Mmcf/d) |
|
Oil (Bbl/d) |
|
NGLs(Bbl/d) |
|
Natural GasEquivalent
(Mmcfe/d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,562 |
|
10,212 |
|
103,383 |
|
2,244 |
|
|
|
|
|
|
|
|
|
Realized Pricing (a) |
|
|
Natural Gas($/Mcf) |
|
Oil ($/Bbl) |
|
NGLs($/Bbl) |
|
Natural GasEquivalent
($/Mcfe) |
|
|
|
|
|
|
|
|
|
Average NYMEX
price |
|
$2.23 |
|
$56.42 |
|
|
|
|
Differential,
including basis hedging |
|
(0.26) |
|
(6.84) |
|
|
|
|
Realized prices
before NYMEX hedges |
|
1.97 |
|
49.58 |
|
$15.06 |
|
$2.30 |
Settled NYMEX
hedges |
|
0.51 |
|
0.15 |
|
0.74 |
|
0.38 |
Average realized
prices after hedges |
|
$2.48 |
|
$49.73 |
|
$15.80 |
|
$2.69 |
|
|
|
|
|
|
|
|
|
(a) May not add due to rounding |
|
|
|
|
|
|
|
|
Third quarter 2019 natural gas, NGLs and oil price realizations
(including the impact of derivative settlements which correspond to
analysts’ estimates) averaged $2.68 per mcfe. Additional
detail on commodity price realizations can be found in the
Supplemental Tables provided on the Company’s website.
- The average natural gas price, including the impact of basis
hedging, was $1.97 per mcf, or $0.26 per mcf below NYMEX.
Based on recent pricing, Range expects a fourth quarter 2019
differential of approximately $0.30 below NYMEX.
- Pre-hedge NGL realizations were $15.06 per barrel, or $0.29 per
barrel below to a Mont Belvieu weighted barrel, as shown on
Supplemental Table 9 on the Company’s website. The third
quarter NGL differential to Mont Belvieu was the best in recent
Company history. Range expects to maintain a strong
differential during fourth quarter 2019 as a result of access to
international markets and its diversified portfolio of ethane
contracts.
- Crude oil and condensate price realizations, before realized
hedges, averaged $49.58 per barrel, or $6.84 below West Texas
Intermediate (WTI). Range expects a fourth quarter 2019 oil
and condensate pricing differential of approximately $7 below
WTI.
Operational Discussion
NGL Marketing
During September and October,
Sunoco performed optimization work at the Marcus Hook export
terminal which is expected to result in more efficient
transportation to end markets. The upgrade required the
Mariner East pipeline to experience downtime, and as a result of
the outage, Range sold ethane volumes in its residue natural gas
stream that would typically be transported via the Mariner East
system.
The value of exported barrels from the East
Coast increased during the quarter, particularly in September after
a Middle East oil disruption. Range capitalized on the
opportunity during the third quarter by utilizing both pipeline and
rail access to export terminals. Propane export values at the
dock remain elevated and are currently estimated at $0.10 per
gallon above the Mont Belvieu index. The combination of
ethane rejection and access to international markets for propane
and butane led to the best quarterly NGL differential to Mont
Belvieu that Range has realized in recent history. Range
resumed use of Mariner East ethane capacity in mid-October and
expects another strong differential to Mont Belvieu in the fourth
quarter of 2019.
Appalachia Division
Production for third quarter 2019 averaged
approximately 2,042 net Mmcfe per day from the Appalachia division,
a 3% increase over the prior-year third quarter. Despite the
third-party optimization work mentioned above, which impacted
ethane recovery, the southwest area of the division averaged 1,945
net Mmcfe per day during third quarter 2019. The northeast
Marcellus properties averaged 97 net Mmcf per day inclusive of
approximately 15 net Mmcf per day of legacy acreage production
during third quarter 2019.
North Louisiana
Production for third quarter 2019 averaged
approximately 202 net Mmcfe per day. The division brought on
line two wells during the quarter and expects to bring on line an
additional well during the fourth quarter.
The table below summarizes estimated activity
for 2019 regarding the number of wells to sales for each
area.
|
|
Wells TIL3Q 2019 |
|
Wells TIL1H 2019 |
|
Calendar 2019Planned TIL |
|
Remaining4Q 2019 |
SW PA
Super-Rich |
|
8 |
|
11 |
|
19 |
|
0 |
SW PA Wet |
|
8 |
|
8 |
|
36 |
|
20 |
SW PA Dry |
|
6 |
|
20 |
|
33 |
|
7 |
Total Appalachia |
|
22 |
|
39 |
|
88 |
|
27 |
|
|
|
|
|
|
|
|
|
Total N. LA. |
|
2 |
|
5 |
|
8 |
|
1 |
Total |
|
24 |
|
44 |
|
96 |
|
28 |
|
|
|
|
|
|
|
|
|
Guidance – 2019
Production per day Guidance
Production for fourth quarter 2019 is expected
to be ~2.33 to 2.35 Bcfe per day, which includes an approximately
25 Mmcfe per day impact from recent asset sales and ethane
recovery. Full year 2019 production is expected to average ~2.28
Bcfe per day, which is in line with prior guidance, after
incorporating asset sales and reduced ethane recovery in September
and October.
4Q 2019 Expense Guidance
Direct operating expense: |
|
$0.16 −
$0.17 per mcfe |
Transportation, gathering, processing and compression expense: |
|
$1.40 −
$1.42 per mcfe |
Production tax expense: |
|
$0.04 −
$0.05 per mcfe |
Exploration expense: |
|
$7.0 − $9.0
million |
Unproved property impairment expense: |
|
$15.0 −
$18.0 million |
G&A expense: |
|
$0.15 −
$0.17 per mcfe |
Interest expense: |
|
$0.19 −
$0.21 per mcfe |
DD&A expense: |
|
$0.67 −
$0.70 per mcfe |
Net brokered gas marketing expense: |
|
~$6.0
million |
Price Guidance
Based on current market indications, Range expects to average
the following pre-hedge differentials for fourth quarter 2019
production.
|
4Q 2019 Pricing Guidance |
Natural Gas:
(1) |
NYMEX minus $0.30 |
Natural Gas
Liquids: (2) |
Mont Belvieu minus $0.60 to $0.80 per barrel |
Oil/Condensate: |
WTI minus $6.00 to $8.00 |
(1) Including basis hedging(2) Weighting based on 53% ethane,
27% propane, 7% normal butane, 4% iso-butane and 9% natural
gasoline.
Hedging Status
Range hedges portions of its expected future
production volumes to increase the predictability of cash flow and
to help maintain a more flexible financial position. Range
currently has over 80% of its expected fourth quarter 2019 natural
gas production hedged at a weighted average floor price of $2.81
per Mmbtu. Similarly, Range has hedged over 80% of its fourth
quarter 2019 projected crude oil production at an average floor
price of $56.78. Please see Range’s detailed hedging schedule
posted at the end of the financial tables below and on its website
at www.rangeresources.com.
Range has also hedged Marcellus and other basis
differentials to limit volatility between NYMEX and regional
prices. The fair value of the basis hedges was a gain of $4.6
million as of September 30, 2019. The Company also has
propane basis swap contracts which lock in the differential between
Mont Belvieu and international propane indices. The fair
value of these contracts was a loss of $3.3 million on September
30, 2019.
Conference Call InformationA
conference call to review the financial results is scheduled on
Thursday, October 24 at 9:00 a.m. ET. To participate in the
call, please dial 866-900-7525 and provide conference code 9092535
about 10 minutes prior to the scheduled start time.
A simultaneous webcast of the call may be
accessed at www.rangeresources.com. The webcast will be archived
for replay on the Company's website until November 24, 2019.
Non-GAAP Financial Measures
Adjusted net income comparable to analysts’
estimates as set forth in this release represents income or loss
from operations before income taxes adjusted for certain non-cash
items (detailed in the accompanying table) less income taxes.
We believe adjusted net income comparable to analysts’ estimates is
calculated on the same basis as analysts’ estimates and that many
investors use this published research in making investment
decisions and evaluating operational trends of the Company and its
performance relative to other oil and gas producing
companies. Diluted earnings per share (adjusted) as set forth
in this release represents adjusted net income comparable to
analysts’ estimates on a diluted per share basis. A table is
included which reconciles income or loss from operations to
adjusted net income comparable to analysts’ estimates and diluted
earnings per share (adjusted). The Company provides
additional comparative information on prior periods along with
non-GAAP revenue disclosures on its website.
Cash flow from operations before changes in
working capital (sometimes referred to as “adjusted cash flow”) as
defined in this release represents net cash provided by operations
before changes in working capital and exploration expense adjusted
for certain non-cash compensation items. Cash flow from
operations before changes in working capital is widely accepted by
the investment community as a financial indicator of an oil and gas
company’s ability to generate cash to internally fund exploration
and development activities and to service debt. Cash flow
from operations before changes in working capital is also useful
because it is widely used by professional research analysts in
valuing, comparing, rating and providing investment recommendations
of companies in the oil and gas exploration and production
industry. In turn, many investors use this published research
in making investment decisions. Cash flow from operations
before changes in working capital is not a measure of financial
performance under GAAP and should not be considered as an
alternative to cash flows from operations, investing, or financing
activities as an indicator of cash flows, or as a measure of
liquidity. A table is included which reconciles net cash
provided by operations to cash flow from operations before changes
in working capital as used in this release. On its website,
the Company provides additional comparative information on prior
periods for cash flow, cash margins and non-GAAP earnings as used
in this release.
The cash prices realized for oil and natural gas
production, including the amounts realized on cash-settled
derivatives and net of transportation, gathering, processing and
compression expense, is a critical component in the Company’s
performance tracked by investors and professional research analysts
in valuing, comparing, rating and providing investment
recommendations and forecasts of companies in the oil and gas
exploration and production industry. In turn, many investors
use this published research in making investment decisions.
Due to the GAAP disclosures of various derivative transactions and
third-party transportation, gathering, processing and compression
expense, such information is now reported in various lines of the
income statement. The Company believes that it is important
to furnish a table reflecting the details of the various components
of each line in the statement of operations to better inform the
reader of the details of each amount and provide a summary of the
realized cash-settled amounts and third-party transportation,
gathering, processing and compression expense which were
historically reported as natural gas, NGLs and oil sales.
This information is intended to bridge the gap between various
readers’ understanding and fully disclose the information
needed.
The Company discloses in this release the
detailed components of many of the single line items shown in the
GAAP financial statements included in the Company’s quarterly
report on Form 10-Q. The Company believes that it is
important to furnish this detail of the various components
comprising each line of the Statements of Operations to better
inform the reader of the details of each amount, the changes
between periods and the effect on its financial results.
RANGE RESOURCES CORPORATION (NYSE:
RRC) is a leading U.S. independent oil and natural gas
producer with operations focused in stacked-pay projects in
the Appalachian Basin and North Louisiana. The Company pursues
an organic development strategy targeting high return, low-cost
projects within its large inventory of low risk development
drilling opportunities. The Company is headquartered in Fort
Worth, Texas. More information about Range can be found at
www.rangeresources.com.
Included within this news release are certain
“forward-looking statements” within the meaning of the federal
securities laws, including the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 that are not
limited to historical facts, but reflect Range’s current beliefs,
expectations or intentions regarding future events. Words
such as “may,” “will,” “could,” “should,” “expect,” “plan,”
“project,” “intend,” “anticipate,” “believe,” “outlook,”
“estimate,” “predict,” “potential,” “pursue,” “target,” “continue,”
and similar expressions are intended to identify such
forward-looking statements.
All statements, except for statements of
historical fact, made in this release regarding activities, events
or developments the Company expects, believes or anticipates will
or may occur in the future, such as those regarding future well
costs, expected asset sales, well productivity, future liquidity
and financial resilience, anticipated exports and related financial
impact, NGL market supply and demand, improving commodity
fundamentals and pricing, future capital efficiencies, future
shareholder value, emerging plays, capital spending, anticipated
drilling and completion activity, acreage prospectivity, expected
pipeline utilization and future guidance information are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements are
based on assumptions and estimates that 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. Further
information on risks and uncertainties is available in Range's
filings with the Securities and Exchange Commission (SEC),
including its most recent Annual Report on Form 10-K. Unless
required by law, Range undertakes no obligation to publicly update
or revise any forward-looking statements to reflect circumstances
or events after the date they are made.
The SEC permits oil and gas companies, in
filings made with the SEC, to disclose proved reserves, which are
estimates that geological and engineering data demonstrate with
reasonable certainty to be recoverable in future years from known
reservoirs under existing economic and operating conditions as well
as the option to disclose probable and possible reserves.
Range has elected not to disclose its probable and possible
reserves in its filings with the SEC. Range uses certain
broader terms such as "resource potential,” “unrisked resource
potential,” "unproved resource potential" or "upside" or other
descriptions of volumes of resources potentially recoverable
through additional drilling or recovery techniques that may include
probable and possible reserves as defined by the SEC's
guidelines. Range has not attempted to distinguish probable
and possible reserves from these broader classifications. The SEC’s
rules prohibit us from including in filings with the SEC these
broader classifications of reserves. These estimates are by
their nature more speculative than estimates of proved, probable
and possible reserves and accordingly are subject to substantially
greater risk of actually being realized. Unproved resource
potential refers to Range's internal estimates of hydrocarbon
quantities that may be potentially discovered through exploratory
drilling or recovered with additional drilling or recovery
techniques and have not been reviewed by independent
engineers. Unproved resource potential does not constitute
reserves within the meaning of the Society of Petroleum Engineer's
Petroleum Resource Management System and does not include proved
reserves. Area wide unproven resource potential has not been
fully risked by Range's management. “EUR”, or estimated
ultimate recovery, refers to our management’s estimates of
hydrocarbon quantities that may be recovered from a well completed
as a producer in the area. These quantities may not necessarily
constitute or represent reserves within the meaning of the Society
of Petroleum Engineer’s Petroleum Resource Management System or the
SEC’s oil and natural gas disclosure rules. Actual quantities that
may be recovered from Range's interests could differ
substantially. Factors affecting ultimate recovery include
the scope of Range's drilling program, which will be directly
affected by the availability of capital, drilling and production
costs, commodity prices, availability of drilling services and
equipment, drilling results, lease expirations, transportation
constraints, regulatory approvals, field spacing rules, recoveries
of gas in place, length of horizontal laterals, actual drilling
results, including geological and mechanical factors affecting
recovery rates and other factors. Estimates of resource
potential may change significantly as development of our resource
plays provides additional data.
In addition, our production forecasts and
expectations for future periods are dependent upon many
assumptions, including estimates of production decline rates from
existing wells and the undertaking and outcome of future drilling
activity, which may be affected by significant commodity price
declines or drilling cost increases. Investors are urged to
consider closely the disclosure in our most recent Annual Report on
Form 10-K, available from our website at www.rangeresources.com or
by written request to 100 Throckmorton Street, Suite 1200, Fort
Worth, Texas 76102. You can also obtain this Form 10-K on the
SEC’s website at www.sec.gov or by calling the SEC at
1-800-SEC-0330.
Investor Contacts:
Laith Sando, Vice President – Investor
Relations817-869-4267lsando@rangeresources.com
Media Contact:
Mark Windle, Manager of Corporate
Communications724-873-3223mwindle@rangeresources.com
www.rangeresources.com
RANGE RESOURCES CORPORATION
STATEMENTS OF OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on GAAP
reported earnings with additional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
details of items
included in each line in Form 10-Q |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and
other income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGLs and oil sales (a) |
$ |
474,754 |
|
|
$ |
736,431 |
|
|
|
|
|
|
$ |
1,709,987 |
|
|
$ |
2,094,450 |
|
|
|
|
|
Derivative fair value income/(loss) |
|
74,676 |
|
|
|
(34,591 |
) |
|
|
|
|
|
|
208,190 |
|
|
|
(151,890 |
) |
|
|
|
|
Brokered natural gas, marketing and other (b) |
|
72,765 |
|
|
|
109,111 |
|
|
|
|
|
|
|
302,848 |
|
|
|
266,774 |
|
|
|
|
|
ARO settlement (loss) gain (b) |
|
(11 |
) |
|
|
— |
|
|
|
|
|
|
|
(11 |
) |
|
|
(12 |
) |
|
|
|
|
Other (b) |
|
261 |
|
|
|
274 |
|
|
|
|
|
|
|
997 |
|
|
|
686 |
|
|
|
|
|
Total revenues and other income |
|
622,445 |
|
|
|
811,225 |
|
|
|
-23 |
% |
|
|
2,222,011 |
|
|
|
2,210,008 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating |
|
34,957 |
|
|
|
30,389 |
|
|
|
|
|
|
|
101,025 |
|
|
|
102,469 |
|
|
|
|
|
Direct operating – non-cash stock-based compensation (c) |
|
319 |
|
|
|
537 |
|
|
|
|
|
|
|
1,459 |
|
|
|
1,667 |
|
|
|
|
|
Transportation, gathering, processing and compression |
|
295,912 |
|
|
|
304,562 |
|
|
|
|
|
|
|
899,786 |
|
|
|
819,100 |
|
|
|
|
|
Production and ad valorem taxes |
|
7,805 |
|
|
|
9,427 |
|
|
|
|
|
|
|
29,004 |
|
|
|
29,493 |
|
|
|
|
|
Brokered natural gas and marketing |
|
79,416 |
|
|
|
115,677 |
|
|
|
|
|
|
|
311,837 |
|
|
|
273,420 |
|
|
|
|
|
Brokered natural gas and marketing – non-cash stock-based
compensation (c) |
|
522 |
|
|
|
403 |
|
|
|
|
|
|
|
1,523 |
|
|
|
1,001 |
|
|
|
|
|
Exploration |
|
10,517 |
|
|
|
7,894 |
|
|
|
|
|
|
|
25,961 |
|
|
|
21,990 |
|
|
|
|
|
Exploration – non-cash stock-based compensation (c) |
|
496 |
|
|
|
405 |
|
|
|
|
|
|
|
1,372 |
|
|
|
1,527 |
|
|
|
|
|
Abandonment and impairment of unproved properties |
|
16,202 |
|
|
|
6,549 |
|
|
|
|
|
|
|
41,631 |
|
|
|
73,244 |
|
|
|
|
|
General and administrative |
|
32,626 |
|
|
|
37,812 |
|
|
|
|
|
|
|
107,425 |
|
|
|
121,255 |
|
|
|
|
|
General and administrative – non-cash stock-based compensation
(c) |
|
8,423 |
|
|
|
5,607 |
|
|
|
|
|
|
|
27,561 |
|
|
|
38,332 |
|
|
|
|
|
General and administrative – lawsuit settlements |
|
139 |
|
|
|
53 |
|
|
|
|
|
|
|
2,035 |
|
|
|
1,385 |
|
|
|
|
|
General and administrative – rig release penalty |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
1,436 |
|
|
|
— |
|
|
|
|
|
General and administrative – bad debt expense |
|
(141 |
) |
|
|
250 |
|
|
|
|
|
|
|
(141 |
) |
|
|
(1,250 |
) |
|
|
|
|
Termination costs |
|
820 |
|
|
|
(336 |
) |
|
|
|
|
|
|
3,000 |
|
|
|
(373 |
) |
|
|
|
|
Termination costs – non-cash stock-based compensation (c) |
|
(1 |
) |
|
|
— |
|
|
|
|
|
|
|
25 |
|
|
|
— |
|
|
|
|
|
Deferred compensation plan (d) |
|
(8,871 |
) |
|
|
223 |
|
|
|
|
|
|
|
(16,432 |
) |
|
|
(559 |
) |
|
|
|
|
Interest expense |
|
45,202 |
|
|
|
53,063 |
|
|
|
|
|
|
|
144,873 |
|
|
|
155,733 |
|
|
|
|
|
Interest expense – amortization of deferred financing costs
(e) |
|
1,795 |
|
|
|
1,738 |
|
|
|
|
|
|
|
5,388 |
|
|
|
5,315 |
|
|
|
|
|
Gain on early extinguishment of debt |
|
(2,985 |
) |
|
|
— |
|
|
|
|
|
|
|
(2,985 |
) |
|
|
— |
|
|
|
|
|
Depletion, depreciation and amortization |
|
137,751 |
|
|
|
164,266 |
|
|
|
|
|
|
|
417,974 |
|
|
|
487,558 |
|
|
|
|
|
Impairment of proved property |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
22,614 |
|
|
|
|
|
Loss/(gain) on sale of assets |
|
36,341 |
|
|
|
30 |
|
|
|
|
|
|
|
30,663 |
|
|
|
(149 |
) |
|
|
|
|
Total costs and expenses |
|
697,245 |
|
|
|
738,549 |
|
|
|
-6 |
% |
|
|
2,134,420 |
|
|
|
2,153,772 |
|
|
|
-1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income
before income taxes |
|
(74,800 |
) |
|
|
72,676 |
|
|
|
-203 |
% |
|
|
87,591 |
|
|
|
56,236 |
|
|
|
56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
(benefit) expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
4,079 |
|
|
|
— |
|
|
|
|
|
|
|
4,079 |
|
|
|
— |
|
|
|
|
|
Deferred |
|
(51,298 |
) |
|
|
24,137 |
|
|
|
|
|
|
|
(5,511 |
) |
|
|
38,295 |
|
|
|
|
|
|
|
(47,219 |
) |
|
|
24,137 |
|
|
|
|
|
|
|
(1,432 |
) |
|
|
38,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income |
$ |
(27,581 |
) |
|
$ |
48,539 |
|
|
|
-157 |
% |
|
$ |
89,023 |
|
|
$ |
17,941 |
|
|
|
396 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(Loss) Income Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.11 |
) |
|
$ |
0.19 |
|
|
|
|
|
|
$ |
0.35 |
|
|
$ |
0.07 |
|
|
|
|
|
Diluted |
$ |
(0.11 |
) |
|
$ |
0.19 |
|
|
|
|
|
|
$ |
0.35 |
|
|
$ |
0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, as reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
248,082 |
|
|
|
246,451 |
|
|
|
1 |
% |
|
|
247,878 |
|
|
|
246,016 |
|
|
|
1 |
% |
Diluted |
|
248,082 |
|
|
|
247,166 |
|
|
|
0 |
% |
|
|
248,823 |
|
|
|
246,879 |
|
|
|
1 |
% |
(a) See separate natural gas, NGLs and oil sales
information table.(b) Included in Brokered natural gas,
marketing and other revenues in the 10-Q.(c) Costs associated
with stock compensation and restricted stock amortization, which
have been reflected in the categories
associated
with the direct personnel costs, which are combined with the cash
costs in the 10-Q.(d) Reflects the change in market value of
the vested Company stock held in the deferred compensation
plan.(e) Included in interest expense in the 10-Q.
RANGE RESOURCES CORPORATION
BALANCE
SHEETS |
|
|
|
|
|
|
|
(In thousands) |
|
September 30, |
|
|
|
December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
(Unaudited) |
|
|
|
(Audited) |
|
Assets |
|
|
|
|
|
|
|
Current assets |
$ |
275,439 |
|
|
$ |
514,232 |
|
Derivative assets |
|
156,847 |
|
|
|
92,795 |
|
Natural gas and oil properties, successful efforts method |
|
8,295,570 |
|
|
|
9,023,185 |
|
Transportation and field assets |
|
6,311 |
|
|
|
9,776 |
|
Operating lease right-of-use assets |
|
47,214 |
|
|
|
— |
|
Other |
|
72,818 |
|
|
|
68,166 |
|
|
$ |
8,854,199 |
|
|
$ |
9,708,154 |
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
Current liabilities |
$ |
550,424 |
|
|
$ |
745,182 |
|
Asset retirement obligations |
|
5,485 |
|
|
|
5,485 |
|
Derivative liabilities |
|
1,521 |
|
|
|
4,144 |
|
|
|
|
|
|
|
|
|
Bank debt |
|
318,919 |
|
|
|
932,018 |
|
Senior notes |
|
2,766,322 |
|
|
|
2,856,166 |
|
Senior subordinated notes |
|
48,749 |
|
|
|
48,677 |
|
Total debt |
|
3,133,990 |
|
|
|
3,836,861 |
|
|
|
|
|
|
|
|
|
Deferred tax liability |
|
661,216 |
|
|
|
666,668 |
|
Derivative liabilities |
|
296 |
|
|
|
3,462 |
|
Deferred compensation liability |
|
58,329 |
|
|
|
67,542 |
|
Asset retirement obligations and other liabilities |
|
284,746 |
|
|
|
319,379 |
|
|
|
|
|
|
|
|
|
Common stock and retained earnings |
|
4,158,998 |
|
|
|
4,060,480 |
|
Other comprehensive loss |
|
(478 |
) |
|
|
(658 |
) |
Common stock held in treasury stock |
|
(328 |
) |
|
|
(391 |
) |
Total stockholders’ equity |
|
4,158,192 |
|
|
|
4,059,431 |
|
|
$ |
8,854,199 |
|
|
$ |
9,708,154 |
|
|
|
|
|
|
|
|
|
RECONCILIATION OF TOTAL REVENUES AND OTHER INCOME TO TOTAL
REVENUE EXCLUDING CERTAIN ITEMS, a non-GAAP measure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedSeptember 30, |
|
|
Nine Months EndedSeptember 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and
other income, as reported |
$ |
622,445 |
|
|
$ |
811,225 |
|
|
|
-23 |
% |
|
$ |
2,222,011 |
|
|
$ |
2,210,008 |
|
|
|
1 |
% |
Adjustment for
certain special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total change in fair value related to derivatives prior to
settlement loss (gain) |
|
5,332 |
|
|
|
(331 |
) |
|
|
|
|
|
|
(69,841 |
) |
|
|
111,618 |
|
|
|
|
|
ARO settlement loss |
|
11 |
|
|
|
— |
|
|
|
|
|
|
|
11 |
|
|
|
12 |
|
|
|
|
|
Total revenues, as adjusted,
non-GAAP |
$ |
627,788 |
|
|
$ |
810,894 |
|
|
|
-23 |
% |
|
$ |
2,152,181 |
|
|
$ |
2,321,638 |
|
|
|
-7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income |
$ |
(27,581 |
) |
|
$ |
48,539 |
|
|
$ |
89,023 |
|
|
$ |
17,941 |
|
Adjustments to
reconcile net cash provided from continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax (benefit) expense |
|
(51,298 |
) |
|
|
24,137 |
|
|
|
(5,511 |
) |
|
|
38,295 |
|
Depletion, depreciation, amortization and impairment |
|
137,751 |
|
|
|
164,266 |
|
|
|
417,974 |
|
|
|
510,172 |
|
Exploration dry hole costs |
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
4 |
|
Abandonment and impairment of unproved properties |
|
16,202 |
|
|
|
6,549 |
|
|
|
41,631 |
|
|
|
73,244 |
|
Derivative fair value (income) loss |
|
(74,676 |
) |
|
|
34,591 |
|
|
|
(208,190 |
) |
|
|
151,890 |
|
Cash settlements on derivative financial instruments that do not
qualify for hedge accounting |
|
80,008 |
|
|
|
(34,922 |
) |
|
|
138,349 |
|
|
|
(40,272 |
) |
Allowance for bad debts |
|
(141 |
) |
|
|
250 |
|
|
|
(141 |
) |
|
|
(1,250 |
) |
Amortization of deferred issuance costs, loss on extinguishment of
debt, and other |
|
1,619 |
|
|
|
1,787 |
|
|
|
4,862 |
|
|
|
4,163 |
|
Deferred and stock-based compensation |
|
683 |
|
|
|
7,085 |
|
|
|
14,410 |
|
|
|
41,252 |
|
Loss (gain) on sale of assets and other |
|
36,341 |
|
|
|
30 |
|
|
|
30,663 |
|
|
|
(149 |
) |
Gain on early extinguishment of debt |
|
(2,985 |
) |
|
|
— |
|
|
|
(2,985 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in working capital: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
40,086 |
|
|
|
(35,288 |
) |
|
|
241,514 |
|
|
|
(49,713 |
) |
Inventory and other |
|
1,011 |
|
|
|
(1,618 |
) |
|
|
(4,024 |
) |
|
|
(822 |
) |
Accounts payable |
|
(23,513 |
) |
|
|
(21,144 |
) |
|
|
(52,645 |
) |
|
|
(6,529 |
) |
Accrued liabilities and other |
|
(29,592 |
) |
|
|
35,168 |
|
|
|
(155,499 |
) |
|
|
36,721 |
|
Net changes in working capital |
|
(12,008 |
) |
|
|
(22,882 |
) |
|
|
29,346 |
|
|
|
(20,343 |
) |
Net cash provided from operating activities |
$ |
103,915 |
|
|
$ |
229,432 |
|
|
$ |
549,431 |
|
|
$ |
774,947 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET CASH PROVIDED FROM OPERATING
ACTIVITIES, AS REPORTED, TO CASH FLOW FROM OPERATIONS BEFORE
CHANGES IN WORKING CAPITAL, a non-GAAP measure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Net cash provided
from operating activities, as reported |
$ |
103,915 |
|
|
$ |
229,432 |
|
|
$ |
549,431 |
|
|
$ |
774,947 |
|
Net changes in working capital |
|
12,008 |
|
|
|
22,882 |
|
|
|
(29,346 |
) |
|
|
20,343 |
|
Exploration expense |
|
10,517 |
|
|
|
7,892 |
|
|
|
25,961 |
|
|
|
21,986 |
|
Lawsuit settlements |
|
139 |
|
|
|
53 |
|
|
|
2,035 |
|
|
|
1,385 |
|
Termination costs |
|
820 |
|
|
|
(336 |
) |
|
|
3,000 |
|
|
|
(373 |
) |
Rig release penalty |
|
— |
|
|
|
— |
|
|
|
1,436 |
|
|
|
— |
|
Non-cash compensation adjustment |
|
392 |
|
|
|
41 |
|
|
|
1,635 |
|
|
|
1,880 |
|
Cash flow from operations before changes
in working capital – non-GAAP measure |
$ |
127,791 |
|
|
$ |
259,964 |
|
|
$ |
554,152 |
|
|
$ |
820,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding |
|
251,408 |
|
|
|
249,482 |
|
|
|
250,995 |
|
|
|
249,131 |
|
Stock held by
deferred compensation plan |
|
(3,326 |
) |
|
|
(3,031 |
) |
|
|
(3,117 |
) |
|
|
(3,115 |
) |
Adjusted basic |
|
248,082 |
|
|
|
246,451 |
|
|
|
247,878 |
|
|
|
246,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding |
|
251,408 |
|
|
|
249,482 |
|
|
|
250,995 |
|
|
|
249,131 |
|
Dilutive stock
options under treasury method |
|
(3,326 |
) |
|
|
(2,316 |
) |
|
|
(2,172 |
) |
|
|
(2,252 |
) |
Adjusted dilutive |
|
248,082 |
|
|
|
247,166 |
|
|
|
248,823 |
|
|
|
246,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES AND
DERIVATIVE FAIR VALUE INCOME (LOSS) TO CALCULATED CASH REALIZED
NATURAL GAS, NGLs AND OIL PRICES WITH AND WITHOUT THIRD PARTY
TRANSPORTATION, GATHERING AND COMPRESSION FEES, a non-GAAP
measure |
|
|
|
|
|
|
(Unaudited, in
thousands, except per unit data) |
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
|
Nine Months Ended September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
Natural gas, NGL and
oil sales components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
284,980 |
|
|
$ |
390,656 |
|
|
|
|
|
|
$ |
1,063,323 |
|
|
$ |
1,182,580 |
|
|
|
|
|
NGL sales |
|
143,195 |
|
|
|
278,563 |
|
|
|
|
|
|
|
508,035 |
|
|
|
705,793 |
|
|
|
|
|
Oil sales |
|
46,579 |
|
|
|
67,212 |
|
|
|
|
|
|
|
138,629 |
|
|
|
206,077 |
|
|
|
|
|
Total oil and gas sales, as reported |
$ |
474,754 |
|
|
$ |
736,431 |
|
|
|
-36 |
|
% |
|
$ |
1,709,987 |
|
|
$ |
2,094,450 |
|
|
|
-18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative fair
value income (loss), as reported: |
$ |
74,676 |
|
|
$ |
(34,591 |
) |
|
|
|
|
|
$ |
208,190 |
|
|
$ |
(151,890 |
) |
|
|
|
|
Cash settlements on
derivative financial instruments – (gain) loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
|
(72,809 |
) |
|
|
(5,845 |
) |
|
|
|
|
|
|
(92,333 |
) |
|
|
(56,466 |
) |
|
|
|
|
NGLs |
|
(7,053 |
) |
|
|
28,023 |
|
|
|
|
|
|
|
(47,835 |
) |
|
|
63,435 |
|
|
|
|
|
Crude Oil |
|
(146 |
) |
|
|
12,744 |
|
|
|
|
|
|
|
1,819 |
|
|
|
33,303 |
|
|
|
|
|
Total change in
fair value related to derivatives prior to settlement, a non-GAAP
measure |
$ |
(5,332 |
) |
|
$ |
331 |
|
|
|
|
|
|
$ |
69,841 |
|
|
$ |
(111,618 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation,
gathering, processing and compression components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
$ |
180,353 |
|
|
$ |
176,271 |
|
|
|
|
|
|
$ |
554,788 |
|
|
$ |
497,569 |
|
|
|
|
|
NGLs |
|
115,559 |
|
|
|
128,291 |
|
|
|
|
|
|
|
344,998 |
|
|
|
321,531 |
|
|
|
|
|
Total transportation, gathering,
processing and compression, as reported |
$ |
295,912 |
|
|
$ |
304,562 |
|
|
|
|
|
|
$ |
899,786 |
|
|
$ |
819,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and
oil sales, including cash-settled derivatives: (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
357,789 |
|
|
$ |
396,501 |
|
|
|
|
|
|
$ |
1,155,656 |
|
|
$ |
1,239,046 |
|
|
|
|
|
NGL sales |
|
150,248 |
|
|
|
250,540 |
|
|
|
|
|
|
|
555,870 |
|
|
|
642,358 |
|
|
|
|
|
Oil sales |
|
46,725 |
|
|
|
54,468 |
|
|
|
|
|
|
|
136,810 |
|
|
|
172,774 |
|
|
|
|
|
Total |
$ |
554,762 |
|
|
$ |
701,509 |
|
|
|
-21 |
|
% |
|
|
1,848,336 |
|
|
|
2,054,178 |
|
|
|
-10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil
and gas during the periods (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
143,721,265 |
|
|
|
140,757,676 |
|
|
|
2 |
|
% |
|
|
427,405,931 |
|
|
|
411,769,576 |
|
|
|
4 |
% |
NGL (bbl) |
|
9,511,234 |
|
|
|
10,255,159 |
|
|
|
-7 |
|
% |
|
|
28,971,049 |
|
|
|
29,009,100 |
|
|
|
0 |
% |
Oil (bbl) |
|
939,541 |
|
|
|
1,040,891 |
|
|
|
-10 |
|
% |
|
|
2,727,415 |
|
|
|
3,314,704 |
|
|
|
-18 |
% |
Gas equivalent
(mcfe) (b) |
|
206,425,915 |
|
|
|
208,533,976 |
|
|
|
-1 |
|
% |
|
|
617,596,715 |
|
|
|
605,712,400 |
|
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil
and gas – average per day (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
1,562,188 |
|
|
|
1,529,975 |
|
|
|
0 |
|
% |
|
|
1,565,589 |
|
|
|
1,508,313 |
|
|
|
4 |
% |
NGL (bbl) |
|
103,383 |
|
|
|
111,469 |
|
|
|
(0 |
) |
% |
|
|
106,121 |
|
|
|
106,260 |
|
|
|
0 |
% |
Oil (bbl) |
|
10,212 |
|
|
|
11,314 |
|
|
|
(0 |
) |
% |
|
|
9,991 |
|
|
|
12,142 |
|
|
|
-18 |
% |
Gas equivalent
(mcfe) (b) |
|
2,243,760 |
|
|
|
2,266,674 |
|
|
|
(0 |
) |
% |
|
|
2,262,259 |
|
|
|
2,218,727 |
|
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices,
excluding derivative settlements and before third party
transportation costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
1.98 |
|
|
$ |
2.78 |
|
|
|
-29 |
|
% |
|
$ |
2.49 |
|
|
$ |
2.87 |
|
|
|
-13 |
% |
NGL (bbl) |
$ |
15.06 |
|
|
$ |
27.16 |
|
|
|
-45 |
|
% |
|
$ |
17.54 |
|
|
$ |
24.33 |
|
|
|
-28 |
% |
Oil (bbl) |
$ |
49.58 |
|
|
$ |
64.57 |
|
|
|
-23 |
|
% |
|
$ |
50.83 |
|
|
$ |
62.17 |
|
|
|
-18 |
% |
Gas equivalent
(mcfe) (b) |
$ |
2.30 |
|
|
$ |
3.53 |
|
|
|
-35 |
|
% |
|
$ |
2.77 |
|
|
$ |
3.46 |
|
|
|
-20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices,
including derivative settlements before third party transportation
costs: (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
2.49 |
|
|
$ |
2.82 |
|
|
|
-12 |
|
% |
|
$ |
2.70 |
|
|
$ |
3.01 |
|
|
|
-10 |
% |
NGL (bbl) |
$ |
15.80 |
|
|
$ |
24.43 |
|
|
|
-35 |
|
% |
|
$ |
19.19 |
|
|
$ |
22.14 |
|
|
|
-13 |
% |
Oil (bbl) |
$ |
49.73 |
|
|
$ |
52.33 |
|
|
|
-5 |
|
% |
|
$ |
50.16 |
|
|
$ |
52.12 |
|
|
|
-4 |
% |
Gas equivalent
(mcfe) (b) |
$ |
2.69 |
|
|
$ |
3.36 |
|
|
|
-20 |
|
% |
|
$ |
2.99 |
|
|
$ |
3.39 |
|
|
|
-12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices,
including derivative settlements and after third
party transportation costs: (d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
1.23 |
|
|
$ |
1.56 |
|
|
|
-21 |
|
% |
|
$ |
1.41 |
|
|
$ |
1.80 |
|
|
|
-22 |
% |
NGL (bbl) |
$ |
3.65 |
|
|
$ |
11.92 |
|
|
|
-69 |
|
% |
|
$ |
7.28 |
|
|
$ |
11.06 |
|
|
|
-34 |
% |
Oil (bbl) |
$ |
49.73 |
|
|
$ |
52.33 |
|
|
|
-5 |
|
% |
|
$ |
50.16 |
|
|
$ |
52.12 |
|
|
|
-4 |
% |
Gas equivalent
(mcfe) (b) |
$ |
1.25 |
|
|
$ |
1.90 |
|
|
|
-34 |
|
% |
|
$ |
1.54 |
|
|
$ |
2.04 |
|
|
|
-25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation,
gathering and compression expense per mcfe |
$ |
1.43 |
|
|
$ |
1.46 |
|
|
|
-2 |
|
% |
|
$ |
1.46 |
|
|
$ |
1.35 |
|
|
|
8 |
% |
(a) Represents volumes sold regardless of when
produced.(b) Oil and NGLs are converted at the rate of one
barrel equals six mcfe based upon the approximate relative energy
content of oil to natural gas, which is not necessarily indicative
of the relationship of oil and natural gas prices.(c)
Excluding third party transportation, gathering and
compression costs.(d) Net of transportation, gathering and
compression costs.
RANGE RESOURCES CORPORATION
RECONCILIATION OF INCOME BEFORE INCOME
TAXESAS REPORTED TO INCOME BEFORE INCOME TAXES
EXCLUDING CERTAIN ITEMS, a non-GAAP measure |
|
|
|
|
|
(Unaudited, in
thousands, except per share data) |
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income
from operations before income taxes, as reported |
$ |
(74,800 |
) |
|
$ |
72,676 |
|
|
|
203 |
% |
|
$ |
87,591 |
|
|
$ |
56,236 |
|
|
|
-56 |
% |
Adjustment for
certain special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on sale of assets |
|
36,341 |
|
|
|
30 |
|
|
|
|
|
|
|
30,663 |
|
|
|
(149 |
) |
|
|
|
|
Loss on ARO settlements |
|
11 |
|
|
|
— |
|
|
|
|
|
|
|
11 |
|
|
|
12 |
|
|
|
|
|
Change in fair value related to derivatives prior to
settlement |
|
5,332 |
|
|
|
(331 |
) |
|
|
|
|
|
|
(69,841 |
) |
|
|
111,618 |
|
|
|
|
|
Rig release penalty |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
1,436 |
|
|
|
— |
|
|
|
|
|
Abandonment and impairment of unproved properties |
|
16,202 |
|
|
|
6,549 |
|
|
|
|
|
|
|
41,631 |
|
|
|
73,244 |
|
|
|
|
|
Gain on early extinguishment of debt |
|
(2,985 |
) |
|
|
— |
|
|
|
|
|
|
|
(2,985 |
) |
|
|
— |
|
|
|
|
|
Impairment of proved property |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
22,614 |
|
|
|
|
|
Lawsuit settlements |
|
139 |
|
|
|
53 |
|
|
|
|
|
|
|
2,035 |
|
|
|
1,385 |
|
|
|
|
|
Termination costs |
|
820 |
|
|
|
(336 |
) |
|
|
|
|
|
|
3,000 |
|
|
|
(373 |
) |
|
|
|
|
Termination costs – non-cash stock-based compensation |
|
(1 |
) |
|
|
— |
|
|
|
|
|
|
|
25 |
|
|
|
— |
|
|
|
|
|
Brokered natural gas and marketing – non-cash stock-based
compensation |
|
522 |
|
|
|
403 |
|
|
|
|
|
|
|
1,523 |
|
|
|
1,001 |
|
|
|
|
|
Direct operating – non-cash stock-based compensation |
|
319 |
|
|
|
537 |
|
|
|
|
|
|
|
1,459 |
|
|
|
1,667 |
|
|
|
|
|
Exploration expenses – non-cash stock-based compensation |
|
496 |
|
|
|
405 |
|
|
|
|
|
|
|
1,372 |
|
|
|
1,527 |
|
|
|
|
|
General & administrative – non-cash stock-based
compensation |
|
8,423 |
|
|
|
5,607 |
|
|
|
|
|
|
|
27,561 |
|
|
|
38,332 |
|
|
|
|
|
Deferred compensation plan – non-cash adjustment |
|
(8,871 |
) |
|
|
223 |
|
|
|
|
|
|
|
(16,432 |
) |
|
|
(559 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income
before income taxes, as adjusted |
|
(18,052 |
) |
|
|
85,816 |
|
|
|
-121 |
% |
|
|
109,049 |
|
|
|
306,555 |
|
|
|
-64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
(benefit) expense, as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
4,079 |
|
|
|
— |
|
|
|
|
|
|
|
4,079 |
|
|
|
— |
|
|
|
|
|
Deferred (a) |
|
(4,513 |
) |
|
|
21,869 |
|
|
|
|
|
|
|
27,279 |
|
|
|
79,617 |
|
|
|
|
|
Net (loss)
income excluding certain items, a non-GAAP measure |
$ |
(17,618 |
) |
|
$ |
63,947 |
|
|
|
-128 |
% |
|
$ |
77,691 |
|
|
$ |
226,938 |
|
|
|
-66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP (loss)
income per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.07 |
) |
|
$ |
0.26 |
|
|
|
-127 |
% |
|
$ |
0.31 |
|
|
$ |
0.92 |
|
|
|
-66 |
% |
Diluted |
$ |
(0.07 |
) |
|
$ |
0.26 |
|
|
|
-127 |
% |
|
$ |
0.31 |
|
|
$ |
0.92 |
|
|
|
-66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
shares outstanding, if dilutive |
|
248,082 |
|
|
|
247,166 |
|
|
|
|
|
|
|
248,823 |
|
|
|
246,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Deferred taxes are estimated to be approximately 25%
for 2019 and 26% for 2018.
RANGE RESOURCES CORPORATION
RECONCILIATION OF NET (LOSS) INCOME,
EXCLUDINGCERTAIN ITEMS AND ADJUSTMENT EARNINGS PER
SHARE, non-GAAP measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedSeptember 30, |
|
|
|
Nine Months Ended September 30, |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income, as reported |
$ |
(27,581 |
) |
|
$ |
48,539 |
|
|
|
$ |
89,023 |
|
|
$ |
17,941 |
|
|
Adjustment
for certain special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on sale of assets |
|
36,341 |
|
|
|
30 |
|
|
|
|
30,663 |
|
|
|
(149 |
) |
|
Loss on ARO settlements |
|
11 |
|
|
|
— |
|
|
|
|
11 |
|
|
|
12 |
|
|
Gain on early extinguishment of debt |
|
(2,985 |
) |
|
|
— |
|
|
|
|
(2,985 |
) |
|
|
— |
|
|
Change in fair value related to derivatives prior to
settlement |
|
5,332 |
|
|
|
(331 |
) |
|
|
|
(69,841 |
) |
|
|
111,618 |
|
|
Impairment of proved property |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
22,614 |
|
|
Abandonment and impairment of unproved properties |
|
16,202 |
|
|
|
6,549 |
|
|
|
|
41,631 |
|
|
|
73,244 |
|
|
Lawsuit settlements |
|
139 |
|
|
|
53 |
|
|
|
|
2,035 |
|
|
|
1,385 |
|
|
Rig release penalty |
|
— |
|
|
|
— |
|
|
|
|
1,436 |
|
|
|
— |
|
|
Termination costs |
|
820 |
|
|
|
(336 |
) |
|
|
|
3,000 |
|
|
|
(373 |
) |
|
Non-cash stock-based compensation |
|
9,759 |
|
|
|
6,952 |
|
|
|
|
31,940 |
|
|
|
42,527 |
|
|
Deferred compensation plan |
|
(8,871 |
) |
|
|
223 |
|
|
|
|
(16,432 |
) |
|
|
(559 |
) |
|
Tax impact |
|
(46,785 |
) |
|
|
2,268 |
|
|
|
|
(32,790 |
) |
|
|
(41,322 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income excluding certain items, a non-GAAP measure |
$ |
(17,618 |
) |
|
$ |
63,947 |
|
|
|
$ |
77,691 |
|
|
$ |
226,938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per diluted share, as reported |
$ |
(0.11 |
) |
|
$ |
0.19 |
|
|
|
$ |
0.35 |
|
|
$ |
0.07 |
|
|
Adjustment
for certain special items per diluted share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on sale of assets |
|
0.15 |
|
|
|
0.00 |
|
|
|
|
0.12 |
|
|
|
(0.00 |
) |
|
Loss on ARO settlements |
|
0.00 |
|
|
|
— |
|
|
|
|
0.00 |
|
|
|
0.00 |
|
|
Gain on early extinguishment of debt |
|
(0.01 |
) |
|
|
— |
|
|
|
|
(0.01 |
) |
|
|
— |
|
|
Change in fair value related to derivatives prior to
settlement |
|
0.02 |
|
|
|
(0.00 |
) |
|
|
|
(0.28 |
) |
|
|
0.45 |
|
|
Impairment of proved property |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
0.09 |
|
|
Abandonment and impairment of unproved properties |
|
0.07 |
|
|
|
0.03 |
|
|
|
|
0.17 |
|
|
|
0.30 |
|
|
Lawsuit settlements |
|
0.00 |
|
|
|
0.00 |
|
|
|
|
0.01 |
|
|
|
0.01 |
|
|
Termination costs |
|
0.00 |
|
|
|
(0.00 |
) |
|
|
|
0.01 |
|
|
|
(0.00 |
) |
|
Non-cash stock-based compensation |
|
0.04 |
|
|
|
0.03 |
|
|
|
|
0.13 |
|
|
|
0.17 |
|
|
Deferred compensation plan |
|
(0.04 |
) |
|
|
0.00 |
|
|
|
|
(0.07 |
) |
|
|
(0.00 |
) |
|
Adjustment for rounding differences |
|
— |
|
|
|
— |
|
|
|
|
0.01 |
|
|
|
— |
|
|
Tax impact |
|
(0.19 |
) |
|
|
0.01 |
|
|
|
|
(0.13 |
) |
|
|
(0.17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per diluted share, excluding certain items, a
non-GAAP measure |
$ |
(0.07 |
) |
|
$ |
0.26 |
|
|
|
$ |
0.31 |
|
|
$ |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings per share, a non-GAAP measure: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.07 |
) |
|
$ |
0.26 |
|
|
|
$ |
0.31 |
|
|
$ |
0.92 |
|
|
Diluted |
$ |
(0.07 |
) |
|
$ |
0.26 |
|
|
|
$ |
0.31 |
|
|
$ |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
RECONCILIATION OF CASH MARGIN PER MCFE, a non-GAAP
measure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in
thousands, except per unit data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedSeptember 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and oil sales, as reported |
$ |
474,754 |
|
|
$ |
736,431 |
|
|
$ |
1,709,987 |
|
|
$ |
2,094,450 |
|
Derivative fair value income (loss), as reported |
|
74,676 |
|
|
|
(34,591 |
) |
|
|
208,190 |
|
|
|
(151,890 |
) |
Less non-cash fair value loss (gain) |
|
5,332 |
|
|
|
(331 |
) |
|
|
(69,841 |
) |
|
|
111,618 |
|
Brokered natural gas and marketing and other, as reported |
|
73,015 |
|
|
|
109,385 |
|
|
|
303,834 |
|
|
|
267,448 |
|
Less ARO settlement and other (gains) |
|
(250 |
) |
|
|
(274 |
) |
|
|
(986 |
) |
|
|
(674 |
) |
Cash revenue applicable to production |
|
627,527 |
|
|
|
810,620 |
|
|
|
2,151,184 |
|
|
|
2,320,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating, as reported |
|
35,276 |
|
|
|
30,926 |
|
|
|
102,484 |
|
|
|
104,136 |
|
Less direct operating stock-based compensation |
|
(319 |
) |
|
|
(537 |
) |
|
|
(1,459 |
) |
|
|
(1,667 |
) |
Transportation, gathering and compression, as reported |
|
295,912 |
|
|
|
304,562 |
|
|
|
899,786 |
|
|
|
819,100 |
|
Production and ad valorem taxes, as reported |
|
7,805 |
|
|
|
9,427 |
|
|
|
29,004 |
|
|
|
29,493 |
|
Brokered natural gas and marketing, as reported |
|
79,938 |
|
|
|
116,080 |
|
|
|
313,360 |
|
|
|
274,421 |
|
Less brokered natural gas and marketing stock-based
compensation |
|
(522 |
) |
|
|
(403 |
) |
|
|
(1,523 |
) |
|
|
(1,001 |
) |
General and administrative, as reported |
|
41,047 |
|
|
|
43,722 |
|
|
|
138,316 |
|
|
|
159,722 |
|
Less G&A stock-based compensation |
|
(8,423 |
) |
|
|
(5,607 |
) |
|
|
(27,561 |
) |
|
|
(38,332 |
) |
Less lawsuit settlements |
|
(139 |
) |
|
|
(53 |
) |
|
|
(2,035 |
) |
|
|
(1,385 |
) |
Less rig release penalty |
|
— |
|
|
|
— |
|
|
|
(1,436 |
) |
|
|
— |
|
Interest expense, as reported |
|
46,997 |
|
|
|
54,801 |
|
|
|
150,261 |
|
|
|
161,048 |
|
Less amortization of deferred financing costs |
|
(1,795 |
) |
|
|
(1,738 |
) |
|
|
(5,388 |
) |
|
|
(5,315 |
) |
Cash expenses |
|
495,777 |
|
|
|
551,180 |
|
|
|
1,593,809 |
|
|
|
1,500,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
margin, a non-GAAP measure |
$ |
131,750 |
|
|
$ |
259,440 |
|
|
$ |
557,375 |
|
|
$ |
820,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mmcfe produced
during period |
|
206,426 |
|
|
|
208,534 |
|
|
|
617,597 |
|
|
|
605,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin
per mcfe |
$ |
0.64 |
|
|
$ |
1.24 |
|
|
$ |
0.90 |
|
|
$ |
1.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF (LOSS) INCOME BEFORE INCOME TAXES TO CASH
MARGIN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in
thousands, except per unit data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedSeptember 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before income taxes, as reported |
$ |
(74,800 |
) |
|
$ |
72,676 |
|
|
$ |
87,591 |
|
|
$ |
56,236 |
|
Adjustments
to reconcile (loss) income before income taxes to
cash margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARO settlements and other (gains) |
|
(250 |
) |
|
|
(274 |
) |
|
|
(986 |
) |
|
|
(674 |
) |
Derivative fair value (income) loss |
|
(74,676 |
) |
|
|
34,591 |
|
|
|
(208,190 |
) |
|
|
151,890 |
|
Net cash receipts on derivative settlements |
|
80,008 |
|
|
|
(34,922 |
) |
|
|
138,349 |
|
|
|
(40,272 |
) |
Exploration expense |
|
10,517 |
|
|
|
7,894 |
|
|
|
25,961 |
|
|
|
21,990 |
|
Lawsuit settlements |
|
139 |
|
|
|
53 |
|
|
|
2,035 |
|
|
|
1,385 |
|
Rig release penalty |
|
— |
|
|
|
— |
|
|
|
1,436 |
|
|
|
— |
|
Termination costs |
|
820 |
|
|
|
(336 |
) |
|
|
3,000 |
|
|
|
(373 |
) |
Deferred compensation plan |
|
(8,871 |
) |
|
|
223 |
|
|
|
(16,432 |
) |
|
|
(559 |
) |
Stock-based compensation (direct operating, brokered natural gas
and marketing, general and administrative and termination
costs) |
|
9,759 |
|
|
|
6,952 |
|
|
|
31,940 |
|
|
|
42,527 |
|
Interest – amortization of deferred financing costs |
|
1,795 |
|
|
|
1,738 |
|
|
|
5,388 |
|
|
|
5,315 |
|
Depletion, depreciation and amortization |
|
137,751 |
|
|
|
164,266 |
|
|
|
417,974 |
|
|
|
487,558 |
|
Loss (gain) on sale of assets |
|
36,341 |
|
|
|
30 |
|
|
|
30,663 |
|
|
|
(149 |
) |
Gain on early extinguishment of debt |
|
(2,985 |
) |
|
|
— |
|
|
|
(2,985 |
) |
|
|
— |
|
Impairment of proved property and other assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22,614 |
|
Abandonment and impairment of unproved properties |
|
16,202 |
|
|
|
6,549 |
|
|
|
41,631 |
|
|
|
73,244 |
|
Cash
margin, a non-GAAP measure |
$ |
131,750 |
|
|
$ |
259,440 |
|
|
$ |
557,375 |
|
|
$ |
820,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
HEDGING POSITION AS OF September 30, 2019 – (Unaudited)
|
|
|
Daily Volume |
|
|
Hedge Price |
|
Gas 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2019 Swaps |
|
1,421,739 Mmbtu |
|
|
$2.82 |
|
|
|
|
|
|
|
|
2020 Swaps |
|
821,776 Mmbtu |
|
|
$2.66 |
|
|
|
|
|
|
|
|
2021 Swaps |
|
30,000 Mmbtu |
|
|
$2.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil 2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2019 Collars |
|
1,000 bbls |
|
|
$63 x 73 |
|
|
|
|
|
|
|
|
4Q 2019 Swaps |
|
9,168 bbls |
|
|
$56.11 |
|
|
|
|
|
|
|
|
2020 Swaps |
|
7,240 bbls |
|
|
$58.42 |
|
|
|
|
|
|
|
|
2021 Swaps |
|
1,000 bbls |
|
|
$55.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
Liquids |
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2019 C3 Swaps |
|
500 bbls |
|
|
$0.525 /gallon |
|
|
|
|
|
|
|
|
4Q 2019 NC4 Swaps |
|
1,000 bbls |
|
|
$0.60 /gallon |
|
|
|
|
|
|
|
|
4Q 2019 iC4 Swaps |
|
168 bbls |
|
|
$0.75 /gallon |
|
|
|
|
|
|
|
|
4Q 2019 C5 Swaps |
|
5,500 bbls |
|
|
$1.296/gallon |
|
|
|
|
|
|
|
(1) |
Range also sold natural gas call swaptions of 250,000 Mmbtu/d for
calendar 2020, and 80,000 Mmbtu/d for calendar 2021 at average
strike prices of $2.80 and $2.73 per Mmbtu, respectively. |
(2) |
Range also sold WTI calls of 500 Bbls/d for 2Q-3Q 2020 at a strike
price of $59 per Bbl and WTI call swaptions of 2,000 Bbls/d for
calendar 2021 at an average strike price of $56 per Bbl. |
|
|
SEE WEBSITE FOR OTHER SUPPLEMENTAL
INFORMATION FOR THE PERIODS AND ADDITIONAL HEDGING
DETAILS
Range Resources (NYSE:RRC)
Historical Stock Chart
From Apr 2024 to May 2024
Range Resources (NYSE:RRC)
Historical Stock Chart
From May 2023 to May 2024