SEC Filings

8-K
RANGE RESOURCES CORP filed this Form 8-K on 07/31/2018
Entire Document
 

RANGE RESOURCES CORPORATION

 

RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES AND DERIVATIVE FAIR VALUE INCOME (LOSS) TO CALCULATED CASH REALIZED NATURAL GAS, NGLs AND OIL PRICES WITH AND WITHOUT THIRD PARTY TRANSPORTATION, GATHERING AND COMPRESSION FEES, a non-GAAP measure

 

 

 

 

 

(Unaudited, in thousands, except per unit data)

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

 

2017

 

 

 

%

 

 

 

2018

 

 

 

2017

 

 

 

%

 

Natural gas, NGL and oil sales components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

$

360,351

 

 

$

336,534

 

 

 

 

 

 

$

791,924

 

 

$

707,866

 

 

 

 

 

NGL sales

 

224,703

 

 

 

123,784

 

 

 

 

 

 

 

427,230

 

 

 

261,847

 

 

 

 

 

Oil sales

 

76,336

 

 

 

45,819

 

 

 

 

 

 

 

138,865

 

 

 

95,854

 

 

 

 

 

Total oil and gas sales, as reported

$

661,390

 

 

$

506,137

 

 

 

31

%

 

$

1,358,019

 

 

$

1,065,567

 

 

 

27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative fair value income (loss), as reported:

$

(103,290

)

 

$

111,195

 

 

 

 

 

 

$

(117,299

)

 

$

276,752

 

 

 

 

 

Cash settlements on derivative financial instruments – (gain) loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

 

(18,113

)

 

 

(942

)

 

 

 

 

 

 

(50,621

)

 

 

(8,397

)

 

 

 

 

NGLs

 

20,144

 

 

 

3,131

 

 

 

 

 

 

 

35,412

 

 

 

17,464

 

 

 

 

 

Crude Oil

 

12,244

 

 

 

(5,575

)

 

 

 

 

 

 

20,559

 

 

 

(8,272

)

 

 

 

 

Total change in fair value related to derivatives prior to settlement, a
non-GAAP measure

$

(89,015

)

 

$

107,809

 

 

 

 

 

 

$

(111,949

)

 

$

277,547

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transportation, gathering, processing and compression components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

$

164,064

 

 

$

129,557

 

 

 

 

 

 

$

321,298

 

 

$

251,750

 

 

 

 

 

NGLs

 

105,846

 

 

 

62,033

 

 

 

 

 

 

 

193,240

 

 

 

117,488

 

 

 

 

 

Total transportation, gathering, processing and compression, as reported

$

269,910

 

 

$

191,590

 

 

 

 

 

 

$

514,538

 

 

$

369,238

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas, NGL and oil sales, including cash-settled derivatives: (c)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

$

378,464

 

 

$

337,476

 

 

 

 

 

 

$

842,545

 

 

$

716,263

 

 

 

 

 

NGL sales

 

204,559

 

 

 

120,653

 

 

 

 

 

 

 

391,818

 

 

 

244,383

 

 

 

 

 

Oil sales

 

64,092

 

 

 

51,394

 

 

 

 

 

 

 

118,306

 

 

 

104,126

 

 

 

 

 

Total

$

647,115

 

 

$

509,523

 

 

 

27

%

 

 

1,352,669

 

 

 

1,064,772

 

 

 

27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production of oil and gas during the periods (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

 

136,057,805

 

 

 

119,487,827

 

 

 

14

%

 

 

271,011,900

 

 

 

235,744,164

 

 

 

15

%

NGL (bbl)

 

9,483,910

 

 

 

8,524,267

 

 

 

11

%

 

 

18,753,941

 

 

 

17,060,995

 

 

 

10

%

Oil (bbl)

 

1,210,379

 

 

 

1,052,784

 

 

 

15

%

 

 

2,273,813

 

 

 

2,118,070

 

 

 

7

%

Gas equivalent (mcfe) (b)

 

200,223,539

 

 

 

176,950,133

 

 

 

13

%

 

 

397,178,424

 

 

 

350,818,554

 

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production of oil and gas – average per day (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

 

1,495,141

 

 

 

1,313,053

 

 

 

14

%

 

 

1,497,303

 

 

 

1,302,454

 

 

 

15

%

NGL (bbl)

 

104,219

 

 

 

93,673

 

 

 

11

%

 

 

103,613

 

 

 

94,260

 

 

 

10

%

Oil (bbl)

 

13,301

 

 

 

11,569

 

 

 

15

%

 

 

12,563

 

 

 

11,702

 

 

 

7

%

Gas equivalent (mcfe) (b)  

 

2,200,259

 

 

 

1,944,507

 

 

 

13

%

 

 

2,194,356

 

 

 

1,938,224

 

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average prices, excluding derivative settlements and before third party transportation costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

$

2.65

 

 

$

2.82

 

 

 

-6

%

 

$

2.92

 

 

$

3.00

 

 

 

-3

%

NGL (bbl)

$

23.69

 

 

$

14.52

 

 

 

63

%

 

$

22.78

 

 

$

15.35

 

 

 

48

%

Oil (bbl)

$

63.07

 

 

$

43.52

 

 

 

45

%

 

$

61.07

 

 

$

45.26

 

 

 

35

%

Gas equivalent (mcfe) (b)

$

3.30

 

 

$

2.86

 

 

 

15

%

 

$

3.42

 

 

$

3.04

 

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average prices, including derivative settlements before third party transportation costs: (c)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

$

2.78

 

 

$

2.82

 

 

 

-2

%

 

$

3.11

 

 

$

3.04

 

 

 

2

%

NGL (bbl)

$

21.57

 

 

$

14.15

 

 

 

52

%

 

$

20.89

 

 

$

14.32

 

 

 

46

%

Oil (bbl)

$

52.95

 

 

$

48.82

 

 

 

8

%

 

$

52.03

 

 

$

49.16

 

 

 

6

%

Gas equivalent (mcfe) (b)

$

3.23

 

 

$

2.88

 

 

 

12

%

 

$

3.41

 

 

$

3.04

 

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average prices, including derivative settlements and after third party

       transportation costs: (d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

$

1.58

 

 

$

1.74

 

 

 

-9

%

 

$

1.92

 

 

$

1.97

 

 

 

-2

%

NGL (bbl)

$

10.41

 

 

$

6.88

 

 

 

51

%

 

$

10.59

 

 

$

7.44

 

 

 

42

%

Oil (bbl)

$

52.95

 

 

$

48.82

 

 

 

8

%

 

$

52.03

 

 

$

49.16

 

 

 

6

%

Gas equivalent (mcfe) (b)

$

1.88

 

 

$

1.80

 

 

 

5

%

 

$

2.11

 

 

$

1.98

 

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transportation, gathering and compression expense per mcfe

$

1.35

 

 

$

1.08

 

 

 

25

%

 

$

1.30

 

 

$

1.05

 

 

 

23

%

(a) Represents volumes sold regardless of when produced.

(b) Oil and NGLs are converted at the rate of one barrel equals six mcfe based upon the approximate relative energy content of oil to natural gas, which is not necessarily indicative of the relationship of oil and natural gas prices.

(c) Excluding third party transportation, gathering and compression costs.

(d) Net of transportation, gathering and compression costs.

12