SEC Filings

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

 

Non-GAAP revenues for second quarter 2018 totaled $745 million, an increase of 32% compared to second quarter 2017, and cash flow from operations before changes in working capital, a non-GAAP measure, was $237 million, compared to $194 million in second quarter 2017.  Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $50 million ($0.20 per diluted share) in second quarter 2018, compared to $16 million ($0.06 per diluted share) in the prior-year quarter, an increase of 233%.  

 

The following table details Range’s average production and realized pricing for the second quarter 2018:

 

Net Production

 

Natural Gas

(Mmcf/d)

 

Oil (Bbl/d)

 

NGLs

(Bbl/d)

 

Natural Gas

Equivalent (Mcfe/d)

 

 

 

 

 

 

 

 

 

 

 

 

 

1,495

 

13,301

 

104,219

 

2,200

 

 

 

Realized Pricing

 

 

Natural Gas

($/Mcf)

 

Oil ($/Bbl)

 

NGLs

($/Bbl)

 

Natural Gas

Equivalent ($/Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

Average NYMEX price

 

$2.80

 

$67.89

 

 

 

 

Differential, including basis hedging

 

(0.16)

 

(4.82)

 

 

 

 

Realized prices before NYMEX hedges

 

2.64

 

63.07

 

$23.69

 

$3.30

Settled NYMEX hedges

 

0.14

 

(10.12)

 

(2.12)

 

(0.07)

Average realized prices after hedges

 

$2.78

 

$52.95

 

$21.57

 

$3.23

 

 

Second quarter 2018 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements which correspond to analysts’ estimates) averaged $3.23 per mcfe, a 12% increase from the prior-year quarter.  Additional detail on commodity price realizations can be found in the Supplemental Tables provided on the Company’s website.    

 

 

The average Company natural gas price including the impact of basis hedging was $2.64 per mcf (or $0.16 per mcf below NYMEX) during the second quarter, which was significantly better than the $0.39 negative differential to NYMEX in the prior year quarter.  The combination of increased pipeline connectivity, seasonally low storage levels and compressed basis across the Appalachian and Midwest regions has also improved the Company’s expected 2018 natural gas differential to NYMEX minus $0.10 per mcf.

 

 

Pre-hedge NGL realizations were $23.69 per barrel, or 35% of WTI, in second quarter 2018.  Realized NGL price was above the mid-point of guidance as a result of NGL component price improvements late in the quarter.  Range expects similar pricing strength through the second half of 2018, putting Range at the high-end of previously announced calendar 2018 guidance.

 

 

Crude oil and condensate price realizations, before realized hedges, for the second quarter averaged $63.07 per barrel, or $4.82 below WTI, a 45% improvement in realized price over the prior year quarter.  

 

 


2