SEC Filings

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

Fair Values – Recurring

We use a market approach for our recurring fair value measurements and endeavor to use the best information available. The following tables present the fair value hierarchy table for assets and liabilities measured at fair value, on a recurring basis (in thousands):

 

 

 

Fair Value Measurements at September 30, 2018 using:

 

 

Quoted Prices

in Active

Markets for

Identical Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Total

Carrying

Value as of

September 30,

2018

 

Trading securities held in the deferred compensation plans

$

67,108

 

 

$

 

 

$

 

 

$

67,108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives swaps

 

 

 

 

(104,471

)

 

 

 

 

 

(104,471

)

                    –collars

 

 

 

 

(717

)

 

 

(3,237

)

 

 

(3,954

)

                    –calls

 

 

 

 

(504

)

 

 

 

 

 

(504

)

                    –basis swaps

 

 

 

 

(3,296

)

 

 

 

 

 

(3,296

)

                    –freight swaps

 

 

 

 

301

 

 

 

 

 

 

301

 

                    –swaptions

 

 

 

 

 

 

 

4,134

 

 

 

4,134

 

 

 

 

Fair Value Measurements at December 31, 2017 using:

 

 

Quoted Prices

in Active

Markets for

Identical Assets
(Level 1)

 

  

Significant

Other

Observable

Inputs

(Level 2)

 

  

Significant

Unobservable
Inputs

(Level 3)

 

  

Total

Carrying

Value as of

December 31,

2017

 

Trading securities held in the deferred compensation plans

$

67,117

 

  

$

  

  

$

 

  

$

67,117

 

Derivatives –swaps

 

 

  

 

3,910

 

  

 

 

  

 

3,910

 

                    –collars

 

 

 

 

3,039

 

 

 

85

 

 

 

3,124

 

                    –basis swaps

 

 

 

 

(9,025

)

 

 

39

 

 

 

(8,986

)

                    –freight swaps

 

 

 

 

276

 

 

 

 

 

 

276

 

                    –swaptions

 

 

 

 

 

 

 

6,534

 

 

 

6,534

 

 

Our trading securities in Level 1 are exchange-traded and measured at fair value with a market approach using end of period market values. Derivatives in Level 2 are measured at fair value with a market approach using third-party pricing services, which have been corroborated with data from active markets or broker quotes. As of September 30, 2018, a portion of our natural gas derivative instruments contains swaptions where the counterparty has the right, but not the obligation, to enter into a fixed price swap on a pre-determined date. Derivatives in Level 3 are measured at fair value with a market approach using third-party pricing services, which have been corroborated with data from active markets or broker quotes. Subjectivity in the volatility factors utilized can cause a significant change in the fair value measurement of our swaptions. The following is a reconciliation of the beginning and ending balances for derivative instruments classified as Level 3 in the fair value hierarchy (in thousands):

 

 

  

As of

September 30,

 2018

 

Balance at December 31, 2017

  

$

6,658

 

Total losses:

 

 

 

 

Included in earnings

 

 

1,876

 

Settlements

 

 

(4,690

)

Transfer out of Level 3 (1)

  

 

(2,947

)

Balance at September 30, 2018

  

$

897

 

(1) During first nine months 2018, we transferred $2.9 million of swaption contracts out of Level 3 due to the exercise of these swaptions by our counterparties.

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