SEC Filings

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

Our average realized price received (including all derivative settlements and third-party transportation costs) during third quarter 2018 was $1.90 per mcfe compared to $1.82 per mcfe in third quarter 2017. Our average realized price received (including all derivative settlements and third party transportation costs) was $2.04 per mcfe in first nine months 2018 compared to $1.93 per mcfe in the same period of the prior year. We believe computed final realized prices should include the total impact of transportation, gathering, processing and compression expense. Our average realized price (including all derivative settlements and third-party transportation costs) calculation also includes all cash settlements for derivatives. Average realized prices (excluding derivative settlements) do not include derivative settlements or third party transportation costs which are reported in transportation, gathering, processing and compression expense on the accompanying consolidated statements of operations. Average realized prices (excluding derivative settlements) do include transportation costs where we receive net revenue proceeds from purchasers.

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

2018

 

 

2017

 

 

Change

 

 

%

 

 

2018

 

2017

 

Change

 

%

 

Average Prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average realized prices (excluding derivative settlements):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (per mcf)

$

2.78

 

 

$

2.48

 

 

$

0.30

 

 

12

%

 

$

2.87

 

$

2.82

 

$

0.05

 

2

%

NGLs (per bbl)

 

27.16

 

 

 

16.93

 

 

 

10.23

 

 

60

%

 

 

24.33

 

 

15.89

 

 

8.44

 

53

%

Crude oil and condensate (per bbl)

 

64.57

 

 

 

43.34

 

 

 

21.23

 

 

49

%

 

 

62.17

 

 

44.53

 

 

17.64

 

40

%

Total (per mcfe) (a)

 

3.53

 

 

 

2.78

 

 

 

0.75

 

 

27

%

 

 

3.46

 

 

2.95

 

 

0.51

 

17

%

Average realized prices (including all derivative settlements):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (per mcf)

$

2.82

 

 

$

2.69

 

 

$

0.13

 

 

5

%

 

$

3.01

 

$

2.92

 

$

0.09

 

3

%

NGLs (per bbl)

 

24.43

 

 

 

15.14

 

 

 

9.29

 

 

61

%

 

 

22.14

 

 

14.60

 

 

7.54

 

52

%

Crude oil and condensate (per bbl)

 

52.33

 

 

 

48.46

 

 

 

3.87

 

 

8

%

 

 

52.12

 

 

48.90

 

 

3.22

 

7

%

Total (per mcfe) (a)

 

3.36

 

 

 

2.87

 

 

 

0.49

 

 

17

%

 

 

3.39

 

 

2.98

 

 

0.41

 

14

%

Average realized prices (including all derivative settlements and third party transportation costs paid by Range):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (per mcf)

$

1.56

 

 

$

1.60

 

 

$

(0.04

)

 

(2

%)

 

$

1.80

 

$

1.84

 

$

(0.04

)

(2

%)

NGLs (per bbl)

 

11.92

 

 

 

8.54

 

 

 

3.38

 

 

40

%

 

 

11.06

 

 

7.82

 

 

3.24

 

41

%

Crude oil and condensate (per bbl)

 

52.33

 

 

 

48.46

 

 

 

3.87

 

 

8

%

 

 

52.12

 

 

48.90

 

 

3.22

 

7

%

Total (per mcfe) (a)

 

1.90

 

 

 

1.82

 

 

 

0.08

 

 

4

%

 

 

2.04

 

 

1.93

 

 

0.11

 

6

%

(a)

Oil and NGLs are converted to mcfe at the rate of one barrel equals six mcf based upon the approximate relative energy content of oil to natural gas, which is not indicative of the relationship between oil and natural gas prices.

Realized prices include the impact of basis differentials and gains or losses realized from our basis hedging. The prices we receive for our natural gas can be more or less than the NYMEX price because of adjustments for delivery location, relative quality and other factors. The following table provides this impact on a per mcf basis:

 

 

Three Months Ended

September 30,

 

 

 

Nine Months Ended

September 30,

 

 

2018

 

 

 

2017

 

 

 

2018

 

 

 

2017

 

Average natural gas differentials above or (below) NYMEX

$

(0.13

)

 

$

(0.52

)

 

$

(0.03

)

 

$

(0.33

)

Realized (losses) gains on basis hedging

$

(0.02

)

 

$

0.01

 

 

$

(0.03

)

 

$

0.03

 

The following tables reflect our production and average realized commodity prices (excluding derivative settlements and third party transportation costs paid by Range) (in thousands, except prices):

 

 

Three Months Ended

September 30

 

 

 

Nine Months Ended

September 30

 

 

2017

 

 

 

Price

Variance

 

 

 

Volume

Variance

 

 

 

2018

 

 

 

2017

 

 

 

Price

Variance

 

 

Volume

Variance

 

 

 

2018

Natural gas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Price (per mcf)

$

2.48

 

 

$

0.30

 

 

$

 

 

$

2.78

 

 

$

2.82

 

 

$

0.05

 

$

 

 

$

2.87

Production (Mmcf)

 

121,645

 

 

 

 

 

 

19,113

 

 

 

140,758

 

 

 

357,389

 

 

 

 

 

54,381

 

 

 

411,770

Natural gas sales

$

301,114

 

 

$

42,231

 

 

$

47,311

 

 

$

390,656

 

 

$

1,009,000

 

 

$

20,050

 

$

153,530

 

 

$

1,182,580

 

35