SEC Filings

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

 

 

 

Three Months Ended

September 30

 

 

 

Nine Months Ended

September 30

 

 

2017

 

 

 

Price

Variance

 

 

 

Volume

Variance

 

 

 

2018

 

 

 

2017

 

 

 

Price

Variance

 

 

Volume

Variance

 

 

 

2018

NGLs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Price (per bbl)

$

16.93

 

 

$

10.23

 

 

$

 

 

$

27.16

 

 

$

15.89

 

 

$

8.44

 

$

 

 

$

24.33

Production (Mbbls)

 

8,893

 

 

 

 

 

 

1,362

 

 

 

10,255

 

 

 

25,954

 

 

 

 

 

3,055

 

 

 

29,009

NGLs sales

$

150,593

 

 

$

104,899

 

 

$

23,071

 

 

$

278,563

 

 

$

412,440

 

 

$

244,800

 

$

48,553

 

 

$

705,793

 

 

 

Three Months Ended

September 30

 

 

 

Nine Months Ended

September 30

 

 

2017

 

 

 

Price

Variance

 

 

 

Volume

Variance

 

 

 

2018

 

 

 

2017

 

 

 

Price

Variance

 

 

Volume

Variance

 

 

 

2018

Crude oil

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Price (per bbl)

$

43.34

 

 

$

21.23

 

 

$

 

 

$

64.57

 

 

$

44.53

 

 

$

17.64

 

$

 

 

$

62.17

Production (Mbbls)

 

1,288

 

 

 

 

 

 

(247

)

 

 

1,041

 

 

 

3,406

 

 

 

 

 

(91

)

 

 

3,315

Crude oil sales

$

55,834

 

 

$

22,100

 

 

$

(10,722

)

 

$

67,212

 

 

$

151,688

 

 

$

58,471

 

$

(4,082

)

 

$

206,077

 

 

 

Three Months Ended

September 30

 

 

 

Nine Months Ended

September 30

 

 

2017

 

 

 

Price

Variance

 

 

 

Volume

Variance

 

 

 

2018

 

 

 

2017

 

 

 

Price

Variance

 

 

Volume

Variance

 

 

 

2018

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Price (per mcfe)

$

2.78

 

 

$

0.75

 

 

$

 

 

$

3.53

 

 

$

2.95

 

 

$

0.51

 

$

 

 

$

3.46

Production (Mmcfe)

 

182,731

 

 

 

 

 

 

25,803

 

 

 

208,534

 

 

 

533,550

 

 

 

 

 

72,162

 

 

 

605,712

Total natural gas, NGLs and oil sales

$

507,541

 

 

$

157,223

 

 

$

71,667

 

 

$

736,431

 

 

$

1,573,128

 

 

$

308,557

 

$

212,765

 

 

$

2,094,450

Transportation, gathering, processing and compression expense was $304.6 million in third quarter 2018 compared to $191.6 million in third quarter 2017. These third-party costs are higher in 2018 when compared to 2017 due to our production growth in the Marcellus Shale where we have third-party transportation, gathering, processing and compression agreements. Additionally, we experienced higher costs resulting from our adoption of the new revenue standard, new in-service pipelines, higher NGLs costs due to higher production and prices and higher NGLs expense in North Louisiana due to fully utilizing amounts that were previously accrued for capacity commitments. We have included these costs in the calculation of average realized prices (including all derivative settlements and third-party transportation expenses paid by Range).

Transportation, gathering processing and compression was $819.1 million in first nine months 2018 compared to $560.9 million in first nine months 2017. These third-party costs are higher in 2018 when compared to 2017 due to new in-service pipelines, higher Marcellus production volumes, higher NGLs expense in North Louisiana due to fully utilizing amounts that were previously accrued for capacity commitments and the impact of our adoption of the new revenue recognition accounting standard. For additional information, see Adoption of New Accounting Standard above. We have included these costs in the calculation of average realized prices (including all derivative settlements and third-party transportation expenses paid by Range). The following table summarizes transportation, gathering, processing and compression expense for the three months and nine months ended September 30, 2018 and 2017 (in thousands) and on a per mcf and per barrel basis:

 

Three Months Ended
September 30,

 

 

 

Nine Months Ended
September 30,

 

 

 

2018

 

 

 

2017

 

 

 

Change

 

 

%

 

 

 

2018

 

 

 

2017

 

 

 

Change

 

%

 

Natural gas

$

176,271

 

 

$

133,019

 

 

$

43,252

 

 

33

%

 

$

497,569

 

 

$

384,769

 

 

$

112,800

 

29

%

NGLs

 

128,291

 

 

 

58,626

 

 

 

69,665

 

 

119

%

 

 

321,531

 

 

 

176,114

 

 

 

145,417

 

83

%

Total

$

304,562

 

 

$

191,645

 

 

$

112,917

 

 

59

%

 

$

819,100

 

 

$

560,883

 

 

$

258,217

 

46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (per mcf)

$

1.25

 

 

$

1.09

 

 

$

0.16

 

 

15

%

 

$

1.21

 

 

$

1.08

 

 

$

0.13

 

12

%

NGLs (per bbl)

$

12.51

 

 

$

6.59

 

 

$

5.92

 

 

90

%

 

$

11.08

 

 

$

6.79

 

 

$

4.29

 

63

%

36