SEC Filings

10-Q
RANGE RESOURCES CORP filed this Form 10-Q on 10/23/2018
Entire Document
 

Freight Swap Contracts

In connection with our international propane sales, we utilize propane swaps. To further hedge our propane price, at September 30, 2018, we had freight swap contracts on the Baltic Exchange which lock in the freight rate for a specific trade route. These contracts settle monthly through December 2019 and cover 5,000 metric tons per month with a fair value gain of $301,000 at September 30, 2018. These contracts use observable third-party pricing inputs that we consider to be Level 2 fair value classification.

Derivative Assets and Liabilities

The combined fair value of derivatives included in the accompanying consolidated balance sheets as of September 30, 2018 and December 31, 2017 is summarized below. The assets and liabilities are netted where derivatives with both gain and loss positions are held by a single counterparty and we have master netting arrangements. The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands):

 

 

  

September 30, 2018

 

 

 

  

Gross

Amounts of

Recognized

Assets

 

  

Gross

Amounts

Offset in the

Balance Sheet

 

  

Net Amounts

of Assets Presented

in the

Balance Sheet

 

Derivative assets:

 

  

 

 

 

  

 

 

 

  

 

 

 

Natural gas

–swaps

  

$

6,503

 

  

$

(4,745

)

  

$

1,758

 

 

–swaptions

 

 

12,893

 

 

 

(12,700

)

 

 

193

 

 

–basis swaps

 

 

1,246

 

 

 

(1,112

)

 

 

134

 

Crude oil

–swaps

 

 

 

 

 

(799

)

 

 

(799

)

 

−collars

 

 

 

 

 

(69

)

 

 

(69

)

NGLs

–C3 propane swaps

 

 

3

 

 

 

(3

)

 

 

 

 

–C3 propane spread swaps

 

 

25,747

 

 

 

(25,747

)

 

 

 

Freight

−swaps

 

 

301

 

 

 

(301

)

 

 

 

 

 

  

$

46,693

 

  

$

(45,476

)

  

$

1,217

 

 

 

 

  

September 30, 2018

 

 

 

  

Gross

Amounts of 

Recognized

(Liabilities)

 

  

Gross 

Amounts

Offset in the

Balance Sheet

 

 

Net Amounts

of (Liabilities) Presented

in the

Balance Sheet

 

Derivative (liabilities):

 

  

 

 

 

  

 

 

 

 

 

 

 

Natural gas

–swaps

 

$

(10,030

)

 

$

4,745

 

 

$

(5,285

)

 

–swaptions

 

 

(8,759

)

 

 

12,700

 

 

 

3,941

 

 

–basis swaps

 

 

(2,548

)

 

 

1,112

 

 

 

(1,436

)

 

–calls

 

 

(504

)

 

 

 

 

 

(504

)

Crude oil

–swaps

 

 

(57,424

)

 

 

799

 

 

 

(56,625

)

 

−collars

 

 

(717

)

 

 

69

 

 

 

(648

)

NGLs

–C3 propane swaps

 

 

(20,363

)

 

 

3

 

 

 

(20,360

)

 

–C3 propane collars

 

 

(3,237

)

 

 

 

 

 

(3,237

)

 

–C3 propane spread swaps

 

 

(27,741

)

 

 

25,747

 

 

 

(1,994

)

 

–NC4 butane swaps

 

 

(8,223

)

 

 

 

 

 

(8,223

)

 

–C5 natural gasoline swaps

 

 

(14,937

)

 

 

 

 

 

(14,937

)

Freight

–swaps

 

 

 

 

 

301

 

 

 

301

 

 

 

 

$

(154,483

)

 

$

45,476

 

 

$

(109,007

)

 

 

 

 

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