|RANGE RESOURCES CORP filed this Form 10-Q on 10/23/2018|
Adoption of New Accounting Standard
On January 1, 2018, we adopted the new revenue recognition accounting standards update. As a result of this adoption, we have modified our presentation of certain gas processing contracts. Results for reporting periods beginning after January 1, 2018 are presented based on the new accounting standards while prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting. For additional information, see Note 3 and Note 5 to the consolidated financial statements. The impact of adoption of the new revenue recognition standard on the three and nine month period ended September 30, 2018 is as follows (in thousands):
See Note 3 for a discussion of new accounting standards that affect us.
Natural Gas, NGLs and Oil Sales, Production and Realized Price Calculations
Our revenues vary primarily as a result of changes in realized commodity prices and production volumes. Our revenues are generally recognized at the point in time that control of the product is transferred to the customer and collectability is reasonably assured.
In third quarter 2018, natural gas, NGLs and oil sales increased 45% compared to third quarter 2017 with a 27% increase in average realized prices (before cash settlements on our derivatives) and a 14% increase in average daily production. In first nine months 2018, natural gas, NGLs and oil sales increased 33% compared to the same period of 2017 with a 17% increase in average realized prices (before cash settlements on our derivatives) and a 14% increase in production. NGLs sales for the current year includes the impact of the adoption of the new revenue recognition standard, as described above. The following table illustrates the primary components of natural gas, NGLs, oil and condensate sales for the three months and nine months ended September 30, 2018 and 2017 (in thousands):