SEC Filings

10-Q
RANGE RESOURCES CORP filed this Form 10-Q on 07/30/2018
Entire Document
 

Debt Covenants

Our bank credit facility contains negative covenants that limit our ability, among other things, to pay cash dividends, incur additional indebtedness, sell assets, enter into certain hedging contracts, change the nature of our business or operations, merge, consolidate, or make certain investments. In addition, we are required to maintain a ratio of EBITDAX (as defined in the bank credit facility agreement) to cash interest expense of equal to or greater than 2.5 and a current ratio (as defined in the bank credit facility agreement) of no less than 1.0. In addition, the ratio of the present value of proved reserves (as defined in the credit agreement) to total debt must be equal to or greater than 1.5 until Range has two investment grade ratings. We were in compliance with applicable covenants under the bank credit facility at June 30, 2018.

(10) ASSET RETIREMENT OBLIGATIONS

Our asset retirement obligations primarily represent the estimated present value of the amounts we will incur to plug, abandon and remediate our producing properties at the end of their productive lives. Significant inputs used in determining such obligations include estimates of plugging and abandonment costs, estimated future inflation rates and well lives. The inputs are calculated based on historical data as well as current estimated costs. A reconciliation of our liability for plugging and abandonment costs for the six months ended June 30, 2018 is as follows (in thousands):

 

 

 

  

Six Months

Ended

June 30,

 2018

 

Beginning of period

  

$

276,855

 

Liabilities incurred

  

 

2,050

 

Acquisitions

 

 

13,438

 

Liabilities settled

 

 

(2,080

)

Accretion expense

  

 

8,210

 

Change in estimate

  

 

4,073

 

End of period

  

 

302,546

 

Less current portion

  

 

(6,327

)

Long-term asset retirement obligations

  

$

296,219

 

Accretion expense is recognized as a component of depreciation, depletion and amortization expense in the accompanying consolidated statements of operations. Acquisitions include an increase in our interest in certain properties in Northwest Pennsylvania.

(11) CAPITAL STOCK

We have authorized capital stock of 485.0 million shares which includes 475.0 million shares of common stock and 10.0 million shares of preferred stock. We currently have no preferred stock issued or outstanding. The following is a schedule of changes in the number of common shares outstanding since the beginning of 2017:

 

 

 

Six Months
Ended
June 30,
2018

 

 

Year
Ended
December 31,
2017

 

Beginning balance

 

 

248,129,430

 

 

 

247,144,356

 

Restricted stock grants

 

 

804,768

 

 

 

539,096

 

Restricted stock units vested

 

 

411,959

 

 

 

344,937

 

Performance stock units issued

 

 

76,149

 

 

 

85,461

 

Treasury shares issued

 

 

4,900

 

 

 

15,580

 

Ending balance

 

 

249,427,206

 

 

 

248,129,430

 

 

14