SEC Filings

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

(16) COMMITMENTS AND CONTINGENCIES

Litigation

We are the subject of, or party to, a number of pending or threatened legal actions, administrative proceedings and claims arising in the ordinary course of our business. While many of these matters involve inherent uncertainty, we believe that the amount of the liability, if any, ultimately incurred with respect to these actions, proceedings or claims will not have a material adverse effect on our consolidated financial position as a whole or on our liquidity, capital resources or future annual results of operations. We estimate and provide for potential losses that may arise out of litigation and regulatory proceedings to the extent that such losses are probable and can be reasonably estimated. We will continue to evaluate our litigation and regulatory proceedings quarterly and will establish and adjust any estimated liability as appropriate to reflect our assessment of the then current status of litigation and regulatory proceedings. Significant judgment is required in making these estimates and our final liabilities may ultimately be materially different.

Transportation and Gathering Contracts

In first nine months 2018, our transportation and gathering commitments increased by approximately $2.4 billion over the next twenty years (through 2038) primarily due to a new pipeline brought into service in Pennsylvania and pricing changes for current contracts.

(17) OFFICE CLOSING AND TERMINATION COSTS

In first quarter 2017, we recorded accruals for severance, other personnel costs and accelerated vesting of stock-based compensation as part of a continuing effort to reduce our general and administrative expenses due, in part, to the lower commodity price environment. The following summarizes our termination costs for the three months and nine months ended September 30, 2018 and 2017 (in thousands):

 

 

 

Three Months Ended

September 30,

 

 

 

 

Nine Months Ended

September 30,

 

 

2018

 

 

 

2017

 

 

 

 

2018

 

 

 

2017

 

 

 

Severance costs

$

(356

)

 

$

 

 

 

$

(356

)

 

$

2,422

 

 

 

Building lease

 

20

 

 

 

(16

)

 

 

 

(17

)

 

 

(37

)

 

 

Stock-based compensation

 

 

 

 

(31

)

 

 

 

 

 

 

1,664

 

 

 

Total termination costs

$

(336

)

 

$

(47

)

 

 

$

(373

)

 

$

4,049

 

 

 

The following details our accrued liability as of September 30, 2018 (in thousands):

 

 

 

September 30,

2018

 

Beginning balance at December 31, 2017

$

1,855

 

Accrued severance costs

 

(356

)

Accrued building rent

 

(17

)

Payments

 

(1,417

)

Ending balance at September 30, 2018

$

65

 

 

(18) SUSPENDED EXPLORATORY WELL COSTS

We capitalize exploratory well costs until a determination is made that the well has either found proved reserves or that it is impaired. Capitalized exploratory well costs are included in natural gas and oil properties in the accompanying consolidated balance sheets. If an exploratory well is determined to be impaired, the well costs are charged to exploration expense in the accompanying consolidated statements of operations. We do not have any suspended exploratory well costs as of September 30, 2018 or December 31, 2017.

 

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