SEC Filings

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

RANGE RESOURCES CORPORATION

RECONCILIATION OF CASH MARGIN PER MCFE, 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas, NGL and oil sales, as reported

$

661,390

 

 

$

506,137

 

 

 

$

1,358,019

 

 

$

1,065,587

 

 

Derivative fair value income (loss), as reported

 

(103,290

)

 

 

111,195

 

 

 

 

(117,299

)

 

 

276,752

 

 

       Less non-cash fair value (gain) loss

 

89,015

 

 

 

(107,809

)

 

 

 

111,949

 

 

 

(277,547

)

 

Brokered natural gas and marketing and other, as reported

 

98,084

 

 

 

55,779

 

 

 

 

158,063

 

 

 

107,427

 

 

       Less ARO settlement and other (gains) losses

 

(176

)

 

 

237

 

 

 

 

(400

)

 

 

170

 

 

               Cash revenue applicable to production

 

745,023

 

 

 

565,539

 

 

 

 

1,510,332

 

 

 

1,172,389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating, as reported

 

35,088

 

 

 

31,420

 

 

 

 

73,210

 

 

 

59,443

 

 

       Less direct operating stock-based compensation

 

(539

)

 

 

(522

)

 

 

 

(1,130

)

 

 

(1,046

)

 

Transportation, gathering and compression, as reported

 

269,910

 

 

 

191,590

 

 

 

 

514,538

 

 

 

369,238

 

 

Production and ad valorem taxes, as reported

 

10,140

 

 

 

9,969

 

 

 

 

20,066

 

 

 

19,132

 

 

Brokered natural gas and marketing, as reported

 

102,747

 

 

 

55,857

 

 

 

 

158,341

 

 

 

109,407

 

 

       Less brokered natural gas and marketing stock-based

       compensation

 

(313

)

 

 

(388

)

 

 

 

(598

)

 

 

(651

)

 

General and administrative, as reported

 

47,583

 

 

 

52,322

 

 

 

 

116,000

 

 

 

99,818

 

 

       Less G&A stock-based compensation

 

(8,814

)

 

 

(14,279

)

 

 

 

(32,725

)

 

 

(25,197

)

 

       Less lawsuit settlements

 

(1,155

)

 

 

(540

)

 

 

 

(1,332

)

 

 

(1,163

)

 

Interest expense, as reported

 

53,862

 

 

 

47,926

 

 

 

 

106,247

 

 

 

95,027

 

 

       Less amortization of deferred financing costs

 

(1,725

)

 

 

(1,794

)

 

 

 

(3,577

)

 

 

(3,572

)

 

               Cash expenses

 

506,784

 

 

 

371,561

 

 

 

 

949,040

 

 

 

720,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash margin, a non-GAAP measure

$

238,239

 

 

$

193,978

 

 

 

$

561,292

 

 

$

451,953

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mmcfe produced during period

 

200,223

 

 

 

176,950

 

 

 

 

397,178

 

 

 

350,818

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash margin per mcfe

$

1.19

 

 

$

1.10

 

 

 

$

1.41

 

 

$

1.29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF (LOSS) INCOME BEFORE INCOME TAXES TO CASH MARGIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, in thousands, except per unit data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

June 30,

 

 

 

Six Months Ended

June 30,

 

 

 

 

2018

 

 

 

2017

 

 

 

 

2018

 

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes, as reported

$

(108,354

)

 

$

127,201

 

 

 

$

(16,440

)

 

$

409,707

 

 

Adjustments to reconcile (loss) income before income taxes to cash margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ARO settlements and other (gains) losses

 

(176

)

 

 

237

 

 

 

 

(400

)

 

 

170

 

 

Derivative fair value (income) loss

 

103,290

 

 

 

(111,195

)

 

 

 

117,299

 

 

 

(276,752

)

 

Net cash receipts on derivative settlements

 

(14,275

)

 

 

3,386

 

 

 

 

(5,350

)

 

 

(795

)

 

Exploration expense

 

7,128

 

 

 

13,970

 

 

 

 

14,096

 

 

 

21,967

 

 

Lawsuit settlements

 

1,155

 

 

 

540

 

 

 

 

1,332

 

 

 

1,163

 

 

Termination costs

 

 

 

 

(50

)

 

 

 

(37

)

 

 

2,400

 

 

Deferred compensation plan

 

6,615

 

 

 

(14,466

)

 

 

 

(782

)

 

 

(27,635

)

 

Stock-based compensation (direct operating, brokered natural gas

   and marketing, general and administrative and termination costs)

 

10,037

 

 

 

15,671

 

 

 

 

35,575

 

 

 

29,625

 

 

Interest – amortization of deferred financing costs

 

1,725

 

 

 

1,794

 

 

 

 

3,577

 

 

 

3,572

 

 

Depletion, depreciation and amortization

 

161,026

 

 

 

152,504

 

 

 

 

323,292

 

 

 

302,325

 

 

(Gain) loss on sale of assets

 

(156

)

 

 

(807

)

 

 

 

(179

)

 

 

(23,407

)

 

Impairment of proved property and other assets

 

15,302

 

 

 

 

 

 

 

22,614

 

 

 

 

 

Abandonment and impairment of unproved properties

 

54,922

 

 

 

5,193

 

 

 

 

66,695

 

 

 

9,613

 

 

Cash margin, a non-GAAP measure

$

238,239

 

 

$

193,978

 

 

 

$

561,292

 

 

$

451,953

 

 

 

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