SEC Filings

RANGE RESOURCES CORP filed this Form 8-K on 02/23/2017
Entire Document

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.



Fourth Quarter 2016


GAAP revenues for the fourth quarter of 2016 totaled $254 million (38% decrease compared to fourth quarter 2015), GAAP net cash provided from operating activities including changes in working capital was $185 million (a 5% increase as compared to fourth quarter 2015) and GAAP earnings were a loss of $161 million ($0.66 per diluted share) versus a loss of $322 million ($1.93 per diluted share) in the prior-year quarter.  Fourth quarter 2016 results included a $470,000 gain on sale of assets, while 2015 included a loss of $409 million.  Fourth quarter 2016 also included $250 million in derivative losses due to increased commodity prices, compared to a $126 million gain in 2015. An $88 million impairment of proved property was also recorded in 2015.  


Non-GAAP revenues for fourth quarter 2016 totaled $590 million (30% increase compared to fourth quarter 2015) and cash flow from operations before changes in working capital, a non-GAAP measure, reached $254 million, compared to $204 million in 2015.  Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $56 million ($0.23 per diluted share) compared to $42 million ($0.25 per diluted share) for the fourth quarter 2015.  The Company’s total unit costs were lower than the previous year quarter, with decreases in all categories, except general & administrative and transportation, gathering, processing & compression.  General & administrative expenses were higher due to non-recurring land administrative expenses while increased transportation expenses are offset by higher realized prices, as products are moved to more favorable markets.





4Q 2016

(per mcfe)


4Q 2015

(per mcfe)



Increase (Decrease)









Direct operating


$  0.17


$  0.22




Transportation, gathering,

    processing and compression








Production and ad valorem taxes








General and administrative








Interest expense








          Total cash unit costs








Depletion, depreciation and









          Total unit costs


$  2.58


$  2.63













Fourth quarter 2016 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements which correspond to analysts’ estimates) averaged $3.20 per mcfe, a 1% decrease from the prior-year quarter.  Additional detail on commodity price realizations can be found in the Supplemental Tables provided on the Company’s website.    



Production and realized prices by each commodity for fourth quarter 2016 were:  natural gas – 1,244 Mmcf per day ($2.93 per mcf), NGLs – 89,628 barrels per day ($17.20 per barrel) and crude oil and condensate – 12,005 barrels per day ($61.30 per barrel).