SEC Filings

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

 

 

The average Company natural gas price differential including the impact of basis hedges for the fourth quarter was ($0.37) per mcf, which is unchanged from the prior year.  The fourth quarter average natural gas price, before all hedging settlements, increased to $2.62 per mcf as compared to $1.90 per mcf in the prior year.  NYMEX natural gas financial hedges increased realizations $0.31 per mcf in the fourth quarter of 2016.  

 

 

Pre-hedge NGL realizations improved to 29% of West Texas Intermediate (“WTI”) in fourth quarter 2016, compared to 22% of WTI in the previous year.  Total NGL pricing per barrel including ethane and processing expenses after realized cash-settled hedging improved to $17.20 for the fourth quarter compared to $11.23 per barrel in the prior year.  Hedging increased NGL prices by $2.70 per barrel in the fourth quarter compared to $2.12 per barrel in the prior year.  

 

 

Crude oil and condensate price realizations, before realized hedges, for the fourth quarter averaged $44.61 per barrel, or $4.66 below WTI, compared to $13.52 below WTI in the prior year.  Hedging added $16.69  per barrel compared to hedge gains of $50.92 in the prior year.

 

 

Full Year 2016

 

GAAP revenues for 2016 totaled $1.1 billion (31% decrease compared to 2015), GAAP net cash provided from operating activities including changes in working capital was $387 million, compared to $691 million in 2015, and GAAP earnings were a loss of $521 million ($2.75 per diluted share) versus a loss of $714 million ($4.29 per diluted share) in 2015.  Full year 2016 results included a loss of $7 million from asset sales compared to a loss of $407 million in 2015, $261 million in derivative losses due to increases in future commodity prices compared to a $416 million gain in the prior year and a $43 million impairment of proved property compared to a $590 million impairment of a non-Marcellus property in the prior year.  

 

Non-GAAP revenues for 2016 totaled $1.7 billion, unchanged from 2015 and cash flow from operations before changes in working capital, a non-GAAP measure, was $569 million, compared to $740 million in 2015.  Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $4.9 million ($0.03 per diluted share), compared to $80 million ($0.48 per diluted share) in 2015.  The Company’s cost structure continued to improve as total unit costs decreased by $0.17 per mcfe, or 6%, compared to the prior year, as shown below.

 

 

Expenses

 

Full Year 2016

(per mcfe)

 

Full Year 2015

(per mcfe)

 

 

Increase (Decrease)

 

 

 

 

 

 

 

 

Direct operating

 

$  0.17

 

$  0.26

 

 

(35%)

Transportation, gathering,

   processing and compression

 

   1.00

 

   0.78

 

 

28%

Production and ad valorem taxes

 

   0.05

 

   0.07

 

 

(29%)

General and administrative

 

   0.23

 

   0.27

 

 

(15%)

Interest expense

 

   0.30

 

   0.33

 

 

(9%)

          Total cash unit costs

 

    1.75

 

    1.71

 

 

2%

Depletion, depreciation and

    amortization

 

   0.93

 

   1.14

 

 

(18%)

          Total unit costs

 

$  2.68

 

$  2.85

 

 

(6%)

 

 

The Company announced its full year 2016 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements which correspond to analysts’ estimates), which averaged $2.74 per

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