SEC Filings

8-K
RANGE RESOURCES CORP filed this Form 8-K on 07/31/2018
Entire Document
 
rrc-ex991_6.htm

Exhibit 99.1

NEWS RELEASE

RANGE ANNOUNCES SECOND QUARTER 2018 FINANCIAL RESULTS

FORT WORTH, TEXAS, JULY 30, 2018…RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its second quarter 2018 financial results.  

Highlights –

 

 

Production averaged a record 2,200 Mmcfe per day, an increase of 13% compared to second quarter 2017

 

Liquids production averaged 117,520 barrels per day, a 12% increase over the prior-year period, and contributed 46% of total product revenues before hedging

 

Natural gas differentials, including basis hedging, of $0.16 below NYMEX, a $0.23 improvement over prior-year quarter

 

Pre-hedge NGL realizations were $23.69 per barrel, a 63% increase over the prior-year quarter

 

Pre-hedge crude oil and condensate realizations of $63.07, a 45% increase over the prior-year quarter

 

Southwest Pennsylvania production increased 30% over the prior-year period to 1,752 Mmcfe per day

 

Cash from operations of $175 million, and non-GAAP cash flow of $237 million

 

Net loss of $80 million ($0.32 per diluted share), non-GAAP net income of $50 million ($0.20 per diluted share)

 

Commenting, Jeff Ventura, the Company’s CEO said, “This year is off to a solid start with another quarter of improving cash margins and record production, lifting cash flow per share by 22% over the same period last year.  This effort was led by our Marcellus operations, where long laterals and the utilization of existing pads and infrastructure are a tailwind for capital efficiencies, positioning us to deliver growth within cash flow for 2018 and in our five-year outlook.  At the same time, Range is intently focused on actions to fast-forward the de-levering process swiftly and prudently through asset sales.  We have processes underway and believe we can execute one or more successful sales in the current year, which would improve our balance sheet and corporate returns.

 

Financial Discussion

 

Except for generally accepted accounting principles (“GAAP”) reported amounts, specific expense categories exclude non-cash impairments, unrealized mark-to-market adjustment on derivatives, non-cash stock compensation and other items shown separately on the attached tables.  “Unit costs” as used in this release are composed of direct operating, transportation, gathering, processing and compression, production and ad valorem taxes, general and administrative, interest and depletion, depreciation and amortization costs divided by production.  See “Non-GAAP Financial Measures” for a definition of each of the non-GAAP financial measures and the tables that reconcile each of the non-GAAP measures to their most directly comparable GAAP financial measure.

 

Second Quarter 2018

 

GAAP revenues for second quarter 2018 totaled $656 million (a 3% decrease compared to second quarter 2017), GAAP net cash provided from operating activities, including changes in working capital, was $175 million, compared to $185 million in second quarter 2017, and GAAP earnings was a loss of $80 million ($0.32 per diluted share) versus earnings of $70 million ($0.28 per diluted share) in the prior-year quarter.  Second quarter earnings results include a $103 million derivative loss due to increases in future commodity prices compared to a $111 million derivative gain in the prior year and a $6.6 million mark to market loss related to the deferred compensation plan compared to a $14.5 million gain in the prior year.  Second quarter 2018 also included a $55 million unproved impairment primarily related to expiring leases in North Louisiana and a $15 million impairment of proved properties related to legacy assets in northwest Pennsylvania.