SEC Filings

10-K
RANGE RESOURCES CORP filed this Form 10-K on 02/22/2017
Entire Document
 

 

PART I

ITEMS 1 AND 2. BUSINESS AND PROPERTIES

General

Range Resources Corporation, a Delaware corporation, is a Fort Worth, Texas-based independent natural gas, NGLs and oil company, engaged in the exploration, development and acquisition of natural gas and oil properties, in the United States. Our principal areas of operation are the Marcellus Shale of Pennsylvania and the Lower Cotton Valley formation of North Louisiana. Our corporate offices are located at 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102 (telephone (817) 870-2601). Our common stock is listed and trades on the New York Stock Exchange (the “NYSE”) under the ticker symbol “RRC”. We have been a member of the S&P 500 Index since 2007. Range Resources Corporation was incorporated in 1980. At December 31, 2016, we had 247.2 million shares outstanding.

Our 2016 production had the following characteristics:

 

average total production of 1,542.1 Mmcfe per day, an increase of 11% from 2015;

 

67% natural gas;

 

total natural gas production of 375.8 Bcf, an increase of 4% from 2015;

 

total NGLs production of 27.8 Mmbbls (including ethane), an increase of 37% from 2015;

 

total crude oil and condensate production of 3.6 Mmbbls, a decrease of 12% from 2015; and

 

88% of our total production was from the Marcellus Shale in Pennsylvania.

At year-end 2016, our proved reserves had the following characteristics:

 

12.1 Tcfe of proved reserves;

 

65% natural gas, 31% NGLs and 4% crude oil;

 

56% proved developed;

 

99% operated;

 

87% of proved reserves are in the Marcellus Shale in Pennsylvania;

 

a reserve life index of approximately 18 years (based on fourth quarter 2016 production);

 

a pretax present value of $3.7 billion of future net cash flows, discounted at 10% per annum (“PV-10”(a)); and

 

a standardized after-tax measure of discounted future net cash flows of $3.5 billion.

(a)

PV-10 is considered a non-GAAP financial measure as defined by the U.S. Securities and Exchange Commission (the “SEC”). We believe that the presentation of PV-10 is relevant and useful to our investors as supplemental disclosure to the standardized measure, or after-tax amount, because it presents the discounted future net cash flows attributable to our proved reserves before taking into account future corporate income taxes and our current tax structure. While the standardized measure is dependent on the unique tax situation of each company, PV-10 is based on prices and discount factors that are consistent for all companies. Because of this, PV-10 can be used within the industry and by creditors and security analysts to evaluate estimated net cash flows from proved reserves on a more comparable basis. The difference between the standardized measure and the PV-10 amount is the discounted estimated future income tax of $275.5 million at December 31, 2016.

Available Information

Our corporate website is available at http://www.rangeresources.com. Information contained on or connected to our website is not incorporated by reference into this Form 10-K and should not be considered part of this report or any other filing we make with the SEC. We make available, free of charge, on our website, the annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports, as soon as reasonably practicable after filing such reports with the SEC. Other information such as presentations, our Corporate Governance Guidelines, the charters of the Audit Committee, the Compensation Committee, the Dividend Committee, and the Governance and Nominating Committee, and the Code of Business Conduct and Ethics are available on our website and in print to any stockholder who provides a written request to the Corporate Secretary at 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. Our Code of Business Conduct and Ethics applies to all directors, officers and employees, including the President and Chief Executive Officer and Chief Financial Officer.

The public may read and copy any materials that we file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Also, the SEC maintains an internet website that contains reports, proxy and information statements, and other

2