SEC Filings

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

Unit Costs

 

The following table details Range’s unit costs per mcfe, excluding stock-based compensation:

 

 

Expenses

 

2Q 2018

($/Mcfe)

 

 

2Q 2017

($/Mcfe)

 

 

Increase (Decrease)

 

 

 

 

 

 

 

 

 

Direct operating

$

0.17

 

$

0.17

 

 

Transportation, gathering, processing and compression

 

1.35(a)

 

 

1.08

 

 

25%

Production and ad valorem taxes

 

0.05

 

 

0.06

 

 

(17%)

General and administrative

 

0.20

 

 

0.21

 

 

(5%)

Interest expense

 

0.26

 

 

0.26

 

 

Total cash unit costs(b)

 

2.03

 

 

1.78

 

 

14%

Depletion, depreciation and

amortization (DD&A)

 

0.80

 

 

0.86

 

 

(7%)

Total unit costs plus DD&A(b)

$

2.83

 

$

2.65

 

 

7%

 

 

(a)

Second quarter 2018 transportation, gathering, processing and compression expense reflects the change in accounting method made earlier this year.  As a result of adopting the new accounting standard, expenses increased by approximately $0.21 per mcfe in second quarter 2018.  There was an equal increase to NGL revenue as there is zero net impact to cash flow as a result of the change in accounting method. See page 8 in Range’s second quarter 2018 Form 10-Q.

 

(b)

May not add due to rounding

 

 

Capital Expenditures

 

Second quarter 2018 drilling expenditures of $260 million funded the drilling and completion of 30 (27.3 net) wells.  A 100% success rate was achieved.  In addition $10.3 million was spent on acreage purchases during the second quarter.  Total capital expenditures year to date were $521 million.  Range remains on target with its $941 million total capital budget for 2018 which is expected to be funded within cash flows, excluding asset sale proceeds.

 

In addition, subsequent to quarter-end, Range sold Midcontinent properties for $23 million, consisting of approximately 11 Mmcfe per day of production and expected annualized cash flow of approximately $3 million.  

 

 

 

Operational Discussion

 

Range’s net production for second quarter 2018 averaged 2,200 Mmcfe per day, consisting of 1,495 Mmcf per day of natural gas, 104,219 barrels per day of NGLs and 13,301 barrels per day of condensate and oil.  This makes Range one of the top 10 natural gas producers in the U.S. and a top three NGL producer amongst E&P companies, providing leverage to improving oil and NGL pricing fundamentals.    

 


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