SEC Filings

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

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):

 

 

Three Months Ended

September 30, 2018

 

 

 

Nine Months Ended

September 30, 2018

 

 

As Reported

 

 

 

Previous Revenue

Recognition

Method

 

 

 

As Reported

 

 

 

Previous Revenue

Recognition

Method

 

Natural gas, NGLs and oil sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

$

390,656

 

 

$

390,656

 

 

$

1,182,580

 

 

$

1,182,580

 

NGLs

 

278,563

 

 

 

230,816

 

 

 

705,793

 

 

 

578,074

 

Oil

 

67,212

 

 

 

67,212

 

 

 

206,077

 

 

 

206,077

 

Total

$

736,431

 

 

$

688,684

 

 

$

2,094,450

 

 

$

1,966,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transportation, gathering,

   processing and compression

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

$

176,271

 

 

$

176,271

 

 

$

497,569

 

 

$

497,569

 

NGLs

 

128,291

 

 

 

80,544

 

 

 

321,531

 

 

 

193,812

 

Total

$

304,562

 

 

$

256,815

 

 

$

819,100

 

 

$

691,381

 

Net income

$

48,539

 

 

$

48,539

 

 

$

17,941

 

 

$

17,941

 

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):

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

2018

 

 

2017

 

 

Change

 

 

%

 

 

2018

 

2017

 

Change

 

%

 

Natural gas, NGLs and oil sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

$

390,656

 

 

$

301,114

 

 

$

89,542

 

 

30

 

$

1,182,580

 

$

1,009,000

 

$

173,580

 

17

%

NGLs

 

278,563

 

 

 

150,593

 

 

 

127,970

 

 

85

 

 

705,793

 

 

412,440

 

 

293,353

 

71

%

Oil

 

67,212

 

 

 

55,834

 

 

 

11,378

 

 

20

 

 

206,077

 

 

151,688

 

 

54,389

 

36

%

Total natural gas, NGLs and

   oil sales

$

736,431

 

 

$

507,541

 

 

$

228,890

 

 

45

%

 

$

2,094,450

 

$

1,573,128

 

$

521,322

 

33

%

33