SEC Filings

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

(b)

The first of three tranches of PG-PSUs granted in 2017 are considered forfeited as the performance metric was not met.

We recorded PG/RG-PSUs compensation expense of $5.6 million in first six months 2018 compared to $145,000 in first six months 2017.

TSR Awards. TSR-PSUs granted are earned, or not earned, based on the comparative performance of Range’s common stock measured against a predetermined group of companies in the peer group over a three-year performance period. The fair value of the TSR-PSUs is estimated on the date of grant using a Monte Carlo simulation model which utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. The fair value is recognized as stock-based compensation expense over the three year performance period. Expected volatilities utilized in the model were estimated using a combination of a historical period consistent with the remaining performance period of three years and option implied volatilities. The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the life of the grant. The following assumptions were used to estimate the fair value of PSUs granted during first six months 2018 and 2017:

 

 

Six Months Ended

June 30,

 

 

 

  

2018

 

  

2017

 

 

Risk-free interest rate

 

 

2.42

%

 

 

1.49

%

 

Expected annual volatility

 

 

47

%

 

 

44

%

 

Grant date fair value per unit

 

$

18.51

 

 

$

26.26

 

 

The following is a summary of our non-vested TSR PSUs award activities:

 

 

Number of

Units

 

 

Weighted

Average

Grant Date

Fair Value

 

 

Outstanding at December 31, 2017

 

 

1,009,842

 

 

$

38.38

 

 

Units granted (a)

 

 

329,486

 

 

 

18.51

 

 

Vested and issued (b)

 

 

(76,149

)

 

 

56.81

 

 

Forfeited

 

 

(191,398

)

 

 

56.10

 

 

Outstanding at June 30, 2018

 

 

1,071,781

 

 

$

27.80

 

 

(a)

These amounts reflect the number of performance units granted. The actual payout of shares may be between zero and 200% of the performance units granted depending on the total shareholder return ranking compared to our peer companies at the vesting date.

(b)

Includes 76,149 TSR-PSUs awards issued related to the 2015 performance period where the return on our common stock was the 46th percentile for the February 2015 grant and 36th percentile for the May 2015 grant. The remaining 2015 awards are considered to be forfeited.

 

We recorded TSR-PSUs compensation expense of $5.7 million in first six months 2018 compared to $6.8 million in the same period of 2017.

SARs

Information with respect to our SARs activities is summarized below.

 

 

 

 

Shares

 

Weighted

Average

Exercise Price

 

Outstanding at December 31, 2017

 

 

382,779

 

$

76.54

 

Expired/forfeited

 

 

(381,675

)

 

75.97

 

Outstanding at June 30, 2018

 

 

1,104

 

$

81.74

 

  

25