SEC Filings

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

Adoption of New Accounting Standard

On January 1, 2018, we adopted the new revenue recognition accounting standards update. As a result of this adoption, we have modified our presentation of certain gas processing contracts. Results for reporting periods beginning after January 1, 2018 are presented based on the new accounting standards while prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting. For additional information, see Note 3 and Note 14 to the consolidated financial statements. The impact of adoption of the new revenue recognition standard on the three and six month period ended June 30, 2018 is as follows (in thousands):

 

 

Three Months Ended

June 30, 2018

 

 

 

Six Months Ended

June 30, 2018

 

 

As Reported

 

 

 

Previous Revenue

Recognition

Method

 

 

 

As Reported

 

 

 

Previous Revenue

Recognition

Method

 

Natural gas, NGLs and oil sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

$

360,351

 

 

$

360,351

 

 

$

791,924

 

 

$

791,924

 

NGLs

 

224,703

 

 

 

182,557

 

 

 

427,230

 

 

 

347,257

 

Oil

 

76,336

 

 

 

76,336

 

 

 

138,865

 

 

 

138,865

 

Total

$

661,390

 

 

$

619,244

 

 

$

1,358,019

 

 

$

1,278,046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transportation, gathering,

   processing and compression

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

$

164,064

 

 

$

164,064

 

 

$

321,298

 

 

$

321,298

 

NGLs

 

105,846

 

 

 

63,700

 

 

 

193,240

 

 

 

113,267

 

Total

$

269,910

 

 

$

227,764

 

 

$

514,538

 

 

$

434,565

 

Net loss

$

(79,836

)

 

$

(79,836

)

 

$

(30,598

)

 

$

(30,598

)

See Note 3 for a discussion of new accounting standards that affect us.

Natural Gas, NGLs and Oil Sales, Production and Realized Price Calculations

Our revenues vary primarily as a result of changes in realized commodity prices and production volumes. Our revenues are generally recognized at the point in time that control of the product is transferred to the customer and collectability is reasonably assured.

In second quarter 2018, natural gas, NGLs and oil sales increased 31% compared to second quarter 2017 with a 15% increase in average realized prices (before cash settlements on our derivatives) and a 13% increase in average daily production. In first six months 2018, natural gas, NGLs and oil sales increased 27% compared to the same period of 2017 with a 13% increase in average realized prices (before cash settlements on our derivatives) and a 13% increase in production. NGLs sales for the current year includes the impact of the adoption of the new revenue recognition standard, as described above. The following table illustrates the primary components of natural gas, NGLs, oil and condensate sales for the three months and six months ended June 30, 2018 and 2017 (in thousands):

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

2018

 

 

2017

 

 

Change

 

 

%

 

 

2018

 

2017

 

Change

 

%

 

Natural gas, NGLs and oil sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

$

360,351

 

 

$

336,534

 

 

$

23,817

 

 

7

 

$

791,924

 

$

707,886

 

$

84,038

 

12

%

NGLs

 

224,703

 

 

 

123,784

 

 

 

100,919

 

 

82

 

 

427,230

 

 

261,847

 

 

165,383

 

63

%

Oil

 

76,336

 

 

 

45,819

 

 

 

30,517

 

 

67

 

 

138,865

 

 

95,854

 

 

43,011

 

45

%

Total natural gas, NGLs and

   oil sales

$

661,390

 

 

$

506,137

 

 

$

155,253

 

 

31

%

 

$

1,358,019

 

$

1,065,587

 

$

292,432

 

27

%

31