SEC Filings

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

Overview of First Six Months 2018 Results

For first six months 2018, we experienced an increase in revenue from the sale of natural gas, NGLs and oil due to a 7% increase in net realized prices (average prices including all derivative settlements and third party transportation costs paid by us) and 13% higher production volumes when compared to the same period of 2017. Daily production in first six months 2018 averaged 2.2 Bcfe compared to 1.9 Bcfe in the same period of the prior year as a result of drilling and completions in Pennsylvania. Average natural gas differentials improved $0.27 per mcf while operating costs were higher.

During first six months 2018, we recognized net loss of $30.6 million, or $0.13 per diluted common share compared to net income of $239.7 million, or $0.97 per diluted common share during the same period of 2017. The decrease in net income for first six months 2018 from the same period of 2017 is primarily due to lower derivative fair value income or the non-cash fair value adjustments related to our derivatives and higher proved and unproved property impairment charges.

Our first six months financial and operating performance included the following results:

 

13% production growth over the same period of 2017;

 

 

liquids production represented 32% of total production on an mcfe basis compared to 33% in the same period of 2017;

 

 

revenue from the sale of natural gas, NGLs and oil increased 27% from the same period of 2017 with a 13% increase in average realized prices (before cash settlements on our derivatives) and an increase in production volumes;

 

 

revenue realized from the sale of natural gas, NGLs and oil including cash settlements on our derivatives increased 27% from the same period of 2017;

 

 

rising forward commodity prices resulted in downward non-cash derivative fair value adjustments of $389.5 million;

 

 

increased direct operating expenses per mcfe by 6% from the same period of 2017 (see discussion on page 35);

 

 

increased general and administrative expense per mcfe 4% from the same period of 2017 (see discussion on page 36);

 

 

interest expense per mcfe was the same when compared to the same period of 2017;

 

 

reduced our DD&A rate per mcfe by 6% from the same period of 2017;

 

 

entered into additional derivative contracts for 2018, 2019 and 2020; and

 

 

realized $545.5 million of cash flow from operating activities.

 

We generated $545.5 million of cash flows from operating activities in first six months 2018, an increase of $134.2 million from the same period of 2017 which reflects improvements in realized prices, higher production volumes and higher comparative working capital inflows ($2.5 million inflow during first six months 2018 compared to $14.3 million outflow in the same period of 2017). We ended the quarter with $404.6 million of available committed borrowing capacity, with an additional $1.0 billion in borrowing base capacity.

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