SEC Filings

8-K
RANGE RESOURCES CORP filed this Form 8-K on 10/24/2018
Entire Document
 
rrc-8k_20181023.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported):

October 24, 2018 (October 23, 2018)

 

RANGE RESOURCES CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

001-12209

 

34-1312571

(State or other jurisdiction of
incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

 

 

 

 

 

 

100 Throckmorton Street, Suite 1200

Ft. Worth, Texas

 

76102

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code:  (817) 870-2601

(Former name or former address, if changed since last report):  Not applicable

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company

    

  

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

    

 

 

 


ITEM 2.02 Results of Operations and Financial Condition

On October 23, 2018 Range Resources Corporation issued a press release announcing its third quarter 2018 results. A copy of this press release is being furnished as an exhibit to this report on Form 8-K.

ITEM 9.01 Financial Statements and Exhibits

(d) Exhibits:

99.1 Press Release dated October 23, 2018

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

RANGE RESOURCES CORPORATION

 

By:   

/s/ Mark S. Scucchi

 

Mark S. Scucchi

 

Chief Financial Officer

Date:  October 24, 2018

 

rrc-ex991_7.htm

Exhibit 99.1

NEWS RELEASE

RANGE ANNOUNCES THIRD QUARTER 2018 FINANCIAL RESULTS

FORT WORTH, TEXAS, October 23, 2018 RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its third quarter 2018 financial results.

Highlights –

 

Net income of $48.5 million ($0.19 per diluted share), non-GAAP net income of $63.9 million ($0.26 per diluted share)

 

Cash provided from operating activities of $229 million, non-GAAP cash flow of $260 million

 

Production averaged a record 2,267 Mmcfe per day, an increase of 14% compared to third quarter 2017

 

Southwest Pennsylvania production increased 29% over the prior-year period to 1,872 Mmcfe per day

 

Liquids production averaged a record 122,783 barrels per day, an 11% increase over the prior-year period, and contributed 47% of total product revenues before hedging

 

Pre-hedge NGL realizations were $27.16 per barrel, a 60% increase over the prior-year third quarter

 

Natural gas differentials, including basis hedging, of $0.15 below NYMEX, a $0.36 improvement over the prior-year third quarter

 

Pre-hedge crude oil and condensate realizations of $64.57, a 49% increase over the prior-year quarter

 

Signed and closed the sale of a proportionately reduced 1% overriding royalty in Range’s Washington County, Pennsylvania leases for gross proceeds of $300 million

Commenting, Jeff Ventura, the Company’s CEO said, “Range continues to successfully execute on the plan outlined in the beginning of this year, delivering another quarter of record production and increasing cash flow by 27% compared to the prior-year third quarter. Following the recently-announced royalty sale, coupled with our exposure to improved liquids pricing, Range now expects leverage to be under 3.0x debt to EBITDAX at the end of this year, accelerating the de-levering process outlined in our five-year outlook by two years. Range continues to pursue additional accretive asset sales that will reduce leverage closer to our longer-term target of under 2.0x. At the same time, Range, as a leading NGL producer in Appalachia, is uniquely positioned to continue to benefit from improved domestic and international markets for NGL purity products.”

Financial Discussion

Except for generally accepted accounting principles (“GAAP”) reported amounts, specific expense categories exclude non-cash impairments, unrealized mark-to-market adjustment on derivatives, non-cash stock compensation and other items shown separately on the attached tables.  “Unit costs” as used in this release are composed of direct operating, transportation, gathering, processing and compression, production and ad valorem taxes, general and administrative, interest and depletion, depreciation and amortization costs divided by production.  See “Non-GAAP Financial Measures” for a definition of each of the non-GAAP financial measures and the tables that reconcile each of the non-GAAP measures to their most directly comparable GAAP financial measure.

Third Quarter 2018

GAAP revenues for third quarter 2018 totaled $811 million (a 68% increase compared to third quarter 2017), GAAP net cash provided from operating activities (including changes in working capital) was $229 million, compared to $189 million in third quarter 2017, and GAAP income was $48.5 million ($0.19 per diluted share) versus a net loss of $127.7 million ($0.52 per diluted share) in the prior-year third quarter.  Third quarter earnings results include a $34.6 million derivative loss due to increases in future commodity prices compared to an $88.4 million derivative loss in the prior-year third quarter and a $0.2 million mark to market loss related to the deferred compensation plan compared to a $9.2 million gain in the prior-year third quarter.

 


 

Non-GAAP revenues for third quarter 2018 totaled $811 million, an increase of 38% compared to third quarter 2017, and cash flow from operations before changes in working capital, a non-GAAP measure, was $260 million, compared to $204 million in third quarter 2017.  Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $63.9 million ($0.26 per diluted share) in third quarter 2018, compared to $11.6 million ($0.05 per diluted share) in the prior-year third quarter, an increase of 420%.

The following table details Range’s average production and realized pricing for third quarter 2018:

Net Production

 

Natural Gas

(Mmcf/d)

 

Oil (Bbl/d)

 

NGLs

(Bbl/d)

 

Natural Gas

Equivalent (Mmcfe/d)

 

 

 

 

 

 

 

 

 

 

 

 

 

1,530

 

11,314

 

111,469

 

2,267

 

 

 

Realized Pricing

 

 

Natural Gas

($/Mcf)

 

Oil ($/Bbl)

 

NGLs

($/Bbl)

 

Natural Gas

Equivalent ($/Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

Average NYMEX price

 

$2.91

 

$69.49

 

 

 

 

Differential, including basis hedging

 

(0.15)

 

(4.92)

 

 

 

 

Realized prices before NYMEX hedges

 

2.75

 

64.57

 

$27.16

 

$3.52

Settled NYMEX hedges

 

0.06

 

(12.24)

 

(2.73)

 

(0.16)

Average realized prices after hedges

 

$2.82

 

$52.33

 

$24.43

 

$3.36

 

 

 

 

 

 

 

 

 

*May not add due to rounding

 

 

 

 

 

 

 

 

Third quarter 2018 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements which correspond to analysts’ estimates) averaged $3.36 per mcfe, a 17% increase from the prior-year third quarter. Additional detail on commodity price realizations can be found in the Supplemental Tables provided on the Company’s website.

 

The average Company natural gas price, including the impact of basis hedging, was $2.75 per mcf (or $0.15 per mcf below NYMEX) for third quarter 2018, which was significantly better than the $0.51 negative differential to NYMEX in the prior-year third quarter. The improvement in natural gas differentials compared to last year is primarily a result of increased pipeline connectivity, seasonally low storage levels and compressed basis across the Appalachian and Midwest regions.

 

 

Pre-hedge NGL realizations were $27.16 per barrel, or 39% of WTI, in third quarter 2018. Realized NGL price was above the high-end of guidance as a result of NGL component price improvements late in third quarter 2018.  Range expects similar pricing strength through the fourth quarter of 2018, resulting in an increase to full-year 2018 NGL pricing guidance from 35%-36% to 37%-38% of WTI.

 

 

Crude oil and condensate price realizations, before realized hedges, for the third quarter 2018 averaged $64.57 per barrel, or $4.92 below WTI, a 49% improvement in realized price over the prior-year third quarter.

 

 


2


Unit Costs

 

The following table details Range’s unit costs per mcfe(a):

 

 

Expenses

 

3Q 2018

($/Mcfe)

 

 

3Q 2017

($/Mcfe)

 

 

Increase (Decrease)

 

 

 

 

 

 

 

 

 

Direct operating

$

0.15

 

$

0.20

 

 

(25%)

Transportation, gathering, processing and compression

 

1.46(b)

 

 

1.05

 

 

39%

Production and ad valorem taxes

 

0.05

 

 

0.07

 

 

(29%)

General and administrative(a)

 

0.18

 

 

0.20

 

 

(10%)

Interest expense

 

0.25

 

 

0.26

 

 

(4%)

Total cash unit costs(c)

 

2.09

 

 

1.77

 

 

18%

Depletion, depreciation and

amortization (DD&A)

 

0.79

 

 

0.87

 

 

(9%)

Total unit costs plus DD&A(c)

$

2.87

 

$

2.65

 

 

8%

 

 

(a)

Excludes stock-based compensation, legal settlements and amortization of deferred financing costs.

 

(b)

Third quarter 2018 transportation, gathering, processing and compression expense reflects the change in accounting method made earlier this year.  As a result of adopting the new accounting standard, expenses increased by approximately $0.23 per mcfe in third quarter 2018.  There was an equal increase to NGL revenue, resulting in zero net impact to cash flow as a result of the change in accounting method. See page 8 in Range’s third quarter 2018 Form 10-Q.

 

(c)

May not add due to rounding.

 

 

Capital Expenditures

 

Third quarter 2018 drilling expenditures of $191 million funded the drilling and completion of 24 (24 net) wells.  A 100% success rate was achieved.  In addition, during third quarter 2018, $12.5 million was spent on acreage purchases and $1.5 million on gathering systems.  Total capital expenditures year to date were $726 million.  Range remains on target with its $941 million total capital budget for 2018 which is expected to be funded within cash flows, excluding asset sale proceeds.

 

Asset Sale

 

Following third quarter 2018, Range signed and closed the sale of a proportionately reduced 1% overriding royalty in its Washington County, Pennsylvania leases for gross proceeds of $300 million.

 

Range’s Washington County properties encompass approximately 300,000 net surface acres that produced 1.8 Bcfe per day in the third quarter of 2018. The overriding royalty applies to existing and future Marcellus, Utica and Upper Devonian development on the subject leases, while excluding shallower and deeper formations. Post-close, Range maintains a net revenue interest of approximately 82% on the subject Washington County acreage. Cash flow to the buyer, after paying applicable transport costs, is expected to be approximately $25 million in 2019. The net proceeds were used to reduce total debt by an expected 7%, which lowers annualized interest expense by approximately $15 million, resulting in a net reduction in estimated 2019 cash flow of $10 million.

 

 

Operational Discussion

 

Range’s net production for third quarter 2018 averaged 2,267 Mmcfe per day, consisting of 1,530 Mmcf per day of natural gas, 111,469 barrels per day of NGLs and 11,314 barrels per day of condensate and oil.  This makes Range one of the top 10 natural gas producers in the U.S. and a top three NGL producer amongst E&P companies.  

3


The table below summarizes wells turned to sales and the estimated activity for the remainder of the year.  As a result of drilling longer laterals, Range has reduced the number of wells being turned to sales in the Marcellus from 100 down to 92.  The total lateral feet and number of stages being completed for 2018 remains approximately the same.  

 

 

Wells TIL

1H 2018

 

Wells TIL

3Q 2018

 

Calendar 2018

Planned TIL

 

Remaining

2018

SW PA Super-Rich

 

5

 

8

 

13

 

0

SW PA Wet

 

15

 

8

 

38

 

15

SW PA Dry

 

28

 

6

 

41

 

7

Total Appalachia

 

48

 

22

 

92

 

22

 

 

 

 

 

 

 

 

 

Total N. LA.

 

8

 

2

 

11

 

1

Total

 

56

 

24

 

103

 

23

 

 

Appalachia Division

 

Production for third quarter 2018 averaged approximately 1,988 net Mmcfe per day from the Appalachia division, a 24% increase over the prior-year third quarter.  The southwest area of the division averaged 1,872 net Mmcfe per day during third quarter 2018, a 29% increase over third quarter 2017.  This was achieved through continued operational improvements, exceptional well results across Range’s acreage position and additional outlets for ethane during the quarter.  The northeast Marcellus properties averaged 98 net Mmcf per day and legacy acreage produced approximately 18 net Mmcf per day during the third quarter 2018.

 

In southwest Pennsylvania, Range recently drilled a lateral length of 18,566 feet, making it the longest lateral Marcellus well in the basin to date. Additionally, Range recently completed two 18,000 foot laterals that were drilled earlier this year and expects to announce results from these wells with year-end earnings.

 

North Louisiana

 

Production for the division in third quarter 2018 averaged approximately 278 net Mmcfe per day.  The division brought on line two wells during the quarter, and expects to bring on line one additional well during the remainder of the year for a total of 11 wells in 2018.

 

Marketing and Transportation

 

As highlighted on the second quarter 2018 earnings call, Appalachia has in-basin fractionation and control of purity products with access to international markets.  Range expects the unique nature of the Appalachia NGL model will become evident over the next year, as purity products with access to international markets should garner premiums.  Range, the only producer with propane capacity on Mariner East 1, has been able to capture above Mont Belvieu prices, on average, by exporting the majority of its propane to international markets since early 2016.  In addition, the Company has been sending normal butane and remaining propane volumes this summer via local rail to Marcus Hook for export.  In total, Range marketed approximately 80% of its corporate NGL production into purity markets during the third quarter.  As a result of the Company’s current arrangements and the improved NGL market fundamentals, fourth quarter 2018 pre-hedge NGL differentials should improve to approximately 40% of WTI.  

 

Energy Transfer’s Rover project, which is the last major natural gas transportation project for which Range has contracted capacity, received approval during third quarter 2018 for both the Majorsville and Burgettstown laterals, allowing Range to begin flowing volumes in September.  The project enables Range to access additional Midwest and Gulf Coast markets, which should help reduce corporate basis volatility over the coming years.

 

 

4


 

 

Guidance – 2018  

 

Production per day Guidance

 

Production for the fourth quarter of 2018 is expected to be approximately 2,255 to 2,265 Mmcfe per day.  This excludes all Appalachia volumes associated with the 1% overriding royalty sale.

 

Production expectations for the full year 2018 remain approximately 11% year-over-year growth.  

 

4Q 2018 Expense Guidance  

 

Direct operating expense:

 

 $0.15 − $0.17 per mcfe

Transportation, gathering, processing and compression expense:

 

 $1.52 − $1.56 per mcfe

Production tax expense:

 

 $0.05 − $0.06 per mcfe

Exploration expense:

 

 $7.0 − $10.0 million

Unproved property impairment expense:

 

 $8.0 − $10.0 million

G&A expense:

 

 $0.18 − $0.20 per mcfe

Interest expense:

 

 $0.24 − $0.26 per mcfe

DD&A expense:

 

 $0.78 − $0.82 per mcfe

Net brokered gas marketing expense:

 

 ~$3.0 million

 

4Q 2018 Natural Gas Price Differentials (including basis hedging):  NYMEX minus $0.12

4Q 2018 NGL Differentials:  39% - 40% of WTI

 

 

Based on current market indications, Range expects to average the following pre-hedge differentials for calendar 2018 production.  

 

 

New FY 2018 Guidance

 

Prior FY 2018 Guidance

Natural Gas:

NYMEX minus $0.08

 

NYMEX minus $0.10

Natural Gas Liquids (including ethane):

37% 38% of WTI

 

35% 36% of WTI

Oil/Condensate:

WTI minus $5.00 to $6.00

 

WTI minus $5.00 to $6.00

 

 

Hedging Status

 

Range hedges portions of its expected future production volumes to increase the predictability of cash flow and to help maintain a more flexible financial position. Range currently has over 80% of its expected fourth quarter 2018 natural gas production hedged at a weighted average floor price of $2.98 per Mmbtu.  Similarly, Range has hedged over 75% of its fourth quarter 2018 projected crude oil production at a floor price of $53.20 and over 60% of its composite NGL production.  Please see Range’s detailed hedging schedule posted at the end of the financial tables below and on its website at www.rangeresources.com.  

 

Range has also hedged Marcellus and other basis differentials to limit volatility between NYMEX and regional prices.  The fair value of the basis hedges was a loss of $1.3 million as of September 30, 2018. The Company also has propane basis swap contracts which lock in the differential between Mont Belvieu and international propane indices.  The fair value of these contracts was a loss of $2.0 million on September 30, 2018.  

 

Conference Call Information

A conference call to review the financial results is scheduled on Wednesday, October 24 at 9:00 a.m. ET. To participate in the call, please dial 866-900-7525 and provide conference code 8399762 about 10 minutes prior to the scheduled start time.

5


A simultaneous webcast of the call may be accessed at www.rangeresources.com. The webcast will be archived for replay on the Company's website until November 24, 2018.

Non-GAAP Financial Measures

 

Adjusted net income comparable to analysts’ estimates as set forth in this release represents income or loss from operations before income taxes adjusted for certain non-cash items (detailed in the accompanying table) less income taxes.  We believe adjusted net income comparable to analysts’ estimates is calculated on the same basis as analysts’ estimates and that many investors use this published research in making investment decisions and evaluating operational trends of the Company and its performance relative to other oil and gas producing companies.  Diluted earnings per share (adjusted) as set forth in this release represents adjusted net income comparable to analysts’ estimates on a diluted per share basis.  A table is included which reconciles income or loss from operations to adjusted net income comparable to analysts’ estimates and diluted earnings per share (adjusted).  The Company provides additional comparative information on prior periods along with non-GAAP revenue disclosures on its website.  

 

Cash flow from operations before changes in working capital (sometimes referred to as “adjusted cash flow”) as defined in this release represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items.  Cash flow from operations before changes in working capital is widely accepted by the investment community as a financial indicator of an oil and gas company’s ability to generate cash to internally fund exploration and development activities and to service debt.  Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry.  In turn, many investors use this published research in making investment decisions.  Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity.  A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release.  On its website, the Company provides additional comparative information on prior periods for cash flow, cash margins and non-GAAP earnings as used in this release.

 

The cash prices realized for oil and natural gas production, including the amounts realized on cash-settled derivatives and net of transportation, gathering, processing and compression expense, is a critical component in the Company’s performance tracked by investors and professional research analysts in valuing, comparing, rating and providing investment recommendations and forecasts of companies in the oil and gas exploration and production industry.  In turn, many investors use this published research in making investment decisions.  Due to the GAAP disclosures of various derivative transactions and third-party transportation, gathering, processing and compression expense, such information is now reported in various lines of the income statement.  The Company believes that it is important to furnish a table reflecting the details of the various components of each line in the statement of operations to better inform the reader of the details of each amount and provide a summary of the realized cash-settled amounts and third-party transportation, gathering, processing and compression expense which historically were reported as natural gas, NGLs and oil sales.  This information is intended to bridge the gap between various readers’ understanding and fully disclose the information needed.

 

The Company discloses in this release the detailed components of many of the single line items shown in the GAAP financial statements included in the Company’s quarterly report on Form 10-Q.  The Company believes that it is important to furnish this detail of the various components comprising each line of the Statements of Operations to better inform the reader of the details of each amount, the changes between periods and the effect on its financial results.

  

RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent oil and natural gas producer with operations focused in stacked-pay projects in the Appalachian Basin and North Louisiana. The Company pursues an organic growth strategy targeting high return, low-cost projects within its large inventory of low risk development drilling opportunities.  The Company is headquartered in Fort Worth, Texas.  More information about Range can be found at www.rangeresources.com.

 

6


Included within this news release are certain “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect Range’s current beliefs, expectations or intentions regarding future events.  Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “outlook,” “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements.

 

All statements, except for statements of historical fact, made within regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as those regarding future well costs, expected asset sales, well productivity, future liquidity and financial resilience, anticipated exports and related financial impact, NGL market supply and demand, improving commodity fundamentals and pricing, future capital efficiencies, future shareholder value, emerging plays, capital spending, anticipated drilling and completion activity, acreage prospectivity, expected pipeline utilization and future guidance information are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and Range's future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements.  Further information on risks and uncertainties is available in Range's filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K.  Unless required by law, Range undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.

 

The SEC permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions as well as the option to disclose probable and possible reserves.  Range has elected not to disclose its probable and possible reserves in its filings with the SEC.  Range uses certain broader terms such as "resource potential,” “unrisked resource potential,” "unproved resource potential" or "upside" or other descriptions of volumes of resources potentially recoverable through additional drilling or recovery techniques that may include probable and possible reserves as defined by the SEC's guidelines.  Range has not attempted to distinguish probable and possible reserves from these broader classifications. The SEC’s rules prohibit us from including in filings with the SEC these broader classifications of reserves.  These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of actually being realized.  Unproved resource potential refers to Range's internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques and have not been reviewed by independent engineers.  Unproved resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer's Petroleum Resource Management System and does not include proved reserves.  Area wide unproven resource potential has not been fully risked by Range's management.  “EUR”, or estimated ultimate recovery, refers to our management’s estimates of hydrocarbon quantities that may be recovered from a well completed as a producer in the area. These quantities may not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System or the SEC’s oil and natural gas disclosure rules. Actual quantities that may be recovered from Range's interests could differ substantially.  Factors affecting ultimate recovery include the scope of Range's drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors.  Estimates of resource potential may change significantly as development of our resource plays provides additional data.  

 

In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price declines or drilling cost increases. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth,

7


Texas 76102.  You can also obtain this Form 10-K on the SEC’s website at www.sec.gov or by calling the SEC at 1-800-SEC-0330.

 

 

2018-12

SOURCE:   Range Resources Corporation

 

 

 

Investor Contacts:

 

Laith Sando, Vice President – Investor Relations

817-869-4267

lsando@rangeresources.com

 

Michael Freeman, Director – Investor Relations & Hedging

817-869-4264

mfreeman@rangeresources.com

 

John Durham, Senior Financial Analyst

817-869-1538

jdurham@rangeresources.com

 

Media Contact:

 

Michael Mackin, Director of External Affairs

724-743-6776

mmackin@rangeresources.com

 

www.rangeresources.com


8


RANGE RESOURCES CORPORATION

STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on GAAP reported earnings with additional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

details of items included in each line in Form 10-Q

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2018

 

 

 

2017

 

 

 

%

 

 

 

2018

 

 

 

2017

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues and other income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas, NGLs and oil sales (a)

$

736,431

 

 

$

507,541

 

 

 

 

 

 

$

2,094,450

 

 

$

1,573,128

 

 

 

 

 

Derivative fair value (loss)/income

 

(34,591

)

 

 

(88,426

)

 

 

 

 

 

 

(151,890

)

 

 

188,326

 

 

 

 

 

Brokered natural gas, marketing and other (b)

 

109,111

 

 

 

61,145

 

 

 

 

 

 

 

266,774

 

 

 

168,742

 

 

 

 

 

ARO settlement gain (loss) (b)

 

 

 

 

104

 

 

 

 

 

 

 

(12

)

 

 

64

 

 

 

 

 

Other (b)

 

274

 

 

 

1,868

 

 

 

 

 

 

 

686

 

 

 

1,738

 

 

 

 

 

Total revenues and other income

 

811,225

 

 

 

482,232

 

 

 

68

%

 

 

2,210,008

 

 

 

1,931,998

 

 

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

30,389

 

 

 

36,371

 

 

 

 

 

 

 

102,469

 

 

 

94,768

 

 

 

 

 

Direct operating – non-cash stock-based compensation (c)

 

537

 

 

 

517

 

 

 

 

 

 

 

1,667

 

 

 

1,563

 

 

 

 

 

Transportation, gathering, processing and compression  

 

304,562

 

 

 

191,645

 

 

 

 

 

 

 

819,100

 

 

 

560,883

 

 

 

 

 

Production and ad valorem taxes  

 

9,427

 

 

 

11,993

 

 

 

 

 

 

 

29,493

 

 

 

31,125

 

 

 

 

 

Brokered natural gas and marketing

 

115,677

 

 

 

59,384

 

 

 

 

 

 

 

273,420

 

 

 

168,140

 

 

 

 

 

Brokered natural gas and marketing – non-cash
stock-based compensation (c)

 

403

 

 

 

389

 

 

 

 

 

 

 

1,001

 

 

 

1,040

 

 

 

 

 

Exploration

 

7,894

 

 

 

22,206

 

 

 

 

 

 

 

21,990

 

 

 

44,173

 

 

 

 

 

Exploration – non-cash stock-based compensation (c)  

 

405

 

 

 

561

 

 

 

 

 

 

 

1,527

 

 

 

1,596

 

 

 

 

 

Abandonment and impairment of unproved properties  

 

6,549

 

 

 

42,568

 

 

 

 

 

 

 

73,244

 

 

 

52,181

 

 

 

 

 

General and administrative  

 

37,812

 

 

 

36,461

 

 

 

 

 

 

 

121,255

 

 

 

109,619

 

 

 

 

 

General and administrative – non-cash stock-based
compensation (c)

 

5,607

 

 

 

9,959

 

 

 

 

 

 

 

38,332

 

 

 

35,156

 

 

 

 

 

General and administrative – lawsuit settlements

 

53

 

 

 

5,865

 

 

 

 

 

 

 

1,385

 

 

 

7,028

 

 

 

 

 

General and administrative – bad debt expense  

 

250

 

 

 

750

 

 

 

 

 

 

 

(1,250

)

 

 

1,050

 

 

 

 

 

Termination costs

 

(336

)

 

 

(16

)

 

 

 

 

 

 

(373

)

 

 

2,384

 

 

 

 

 

Termination costs – non-cash stock-based compensation (c)

 

 

 

 

(31

)

 

 

 

 

 

 

 

 

 

1,665

 

 

 

 

 

Deferred compensation plan (d)

 

223

 

 

 

(9,203

)

 

 

 

 

 

 

(559

)

 

 

(36,838

)

 

 

 

 

Interest expense

 

53,063

 

 

 

47,366

 

 

 

 

 

 

 

155,733

 

 

 

138,821

 

 

 

 

 

Interest expense – amortization of deferred financing costs (c)

 

1,738

 

 

 

1,813

 

 

 

 

 

 

 

5,315

 

 

 

5,385

 

 

 

 

 

Depletion, depreciation and amortization  

 

164,266

 

 

 

159,749

 

 

 

 

 

 

 

487,558

 

 

 

462,074

 

 

 

 

 

Impairment of proved properties and other assets

 

 

 

 

63,679

 

 

 

 

 

 

 

22,614

 

 

 

63,679

 

 

 

 

 

Gain on sale of assets

 

30

 

 

 

(102

)

 

 

 

 

 

 

(149

)

 

 

(23,509

)

 

 

 

 

Total costs and expenses

 

738,549

 

 

 

681,924

 

 

 

8

%

 

 

2,153,772

 

 

 

1,721,983

 

 

 

25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

72,676

 

 

 

(199,692

)

 

 

136

%

 

 

56,236

 

 

 

210,015

 

 

 

-73

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred

 

24,137

 

 

 

(71,992

)

 

 

 

 

 

 

38,295

 

 

 

98,054

 

 

 

 

 

 

 

24,137

 

 

 

(71,992

)

 

 

 

 

 

 

38,295

 

 

 

98,054

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

48,539

 

 

$

(127,700

)

 

 

138

%

 

$

17,941

 

 

$

111,961

 

 

 

-84

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) Per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.19

 

 

$

(0.52

)

 

 

 

 

 

$

0.07

 

 

$

0.45

 

 

 

 

 

Diluted

$

0.19

 

 

$

(0.52

)

 

 

 

 

 

$

0.07

 

 

$

0.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, as reported:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

246,451

 

 

 

245,244

 

 

 

0

%

 

 

246,016

 

 

 

245,027

 

 

 

0

%

Diluted

 

247,166

 

 

 

245,244

 

 

 

1

%

 

 

246,879

 

 

 

245,280

 

 

 

1

%

(a) See separate natural gas, NGLs and oil sales information table.

(b) Included in Brokered natural gas, marketing and other revenues in the 10-Q.

(c) Costs associated with stock compensation and restricted stock amortization, which have been reflected in the categories associated

          with the direct personnel costs, which are combined with the cash costs in the 10-Q.

(d) Reflects the change in market value of the vested Company stock held in the deferred compensation plan.


9


RANGE RESOURCES CORPORATION

 

BALANCE SHEETS

 

 

 

 

 

 

 

(In thousands)

 

September 30,

 

 

 

December 31,

 

 

 

2018

 

 

 

2017

 

 

 

(Unaudited)

 

 

 

(Audited)

 

Assets

 

 

 

 

 

 

 

Current assets

$

422,381

 

 

$

370,627

 

Derivative assets

 

1,217

 

 

 

58,880

 

Goodwill

 

1,641,197

 

 

 

1,641,197

 

Natural gas and oil properties, successful efforts method

 

9,714,136

 

 

 

9,566,737

 

Transportation and field assets

 

11,002

 

 

 

14,666

 

Other

 

76,203

 

 

 

76,734

 

 

$

11,866,136

 

 

$

11,728,841

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

Current liabilities

$

650,284

 

 

$

704,913

 

Asset retirement obligations

 

6,327

 

 

 

6,327

 

Derivative liabilities

 

97,256

 

 

 

44,233

 

 

 

 

 

 

 

 

 

Bank debt

 

1,257,199

 

 

 

1,208,467

 

Senior notes

 

2,855,048

 

 

 

2,851,754

 

Senior subordinated notes

 

48,653

 

 

 

48,585

 

Total debt

 

4,160,900

 

 

 

4,108,806

 

 

 

 

 

 

 

 

 

Deferred tax liability

 

731,723

 

 

 

693,356

 

Derivative liabilities

 

11,751

 

 

 

9,789

 

Deferred compensation liability

 

86,794

 

 

 

101,102

 

Asset retirement obligations and other liabilities

 

303,813

 

 

 

286,043

 

 

 

 

 

 

 

 

 

Common stock and retained earnings

 

5,818,816

 

 

 

5,776,203

 

Other comprehensive loss

 

(1,124

)

 

 

(1,332

)

Common stock held in treasury stock

 

(404

)

 

 

(599

)

Total stockholders’ equity

 

5,817,288

 

 

 

5,774,272

 

 

$

11,866,136

 

 

$

11,728,841

 

 

RECONCILIATION OF TOTAL REVENUES AND OTHER INCOME TO TOTAL REVENUE EXCLUDING CERTAIN ITEMS, a non-GAAP measure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2018

 

 

 

2017

 

 

 

%

 

 

 

2018

 

 

 

2017

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and other income, as reported

$

811,225

 

 

$

482,232

 

 

 

68

%

 

$

2,210,008

 

 

$

1,931,998

 

 

 

14

%

Adjustment for certain special items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total change in fair value related to derivatives
prior to settlement (gain) loss

 

(331

)

 

 

105,283

 

 

 

 

 

 

 

111,618

 

 

 

(172,264

)

 

 

 

 

ARO settlement (gain) loss

 

 

 

 

(104

)

 

 

 

 

 

 

12

 

 

 

(64

)

 

 

 

 

Total revenues, as adjusted, non-GAAP

$

810,894

 

 

$

587,411

 

 

 

38

%

 

$

2,321,638

 

 

$

1,759,670

 

 

 

32

%

 


10


RANGE RESOURCES CORPORATION

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2018

 

 

 

2017

 

 

 

2018

 

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

48,539

 

 

$

(127,700

)

 

$

17,941

 

 

$

111,961

 

Adjustments to reconcile net cash provided from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income tax expense (benefit)

 

24,137

 

 

 

(71,992

)

 

 

38,295

 

 

 

98,054

 

Depletion, depreciation, amortization and impairment

 

164,266

 

 

 

223,428

 

 

 

510,172

 

 

 

525,753

 

Exploration dry hole costs

 

2

 

 

 

9,005

 

 

 

4

 

 

 

9,166

 

Abandonment and impairment of unproved properties

 

6,549

 

 

 

42,568

 

 

 

73,244

 

 

 

52,181

 

Derivative fair value loss (income)

 

34,591

 

 

 

88,426

 

 

 

151,890

 

 

 

(188,326

)

Cash settlements on derivative financial instruments that do not qualify for hedge

  accounting

 

(34,922

)

 

 

16,856

 

 

 

(40,272

)

 

 

16,062

 

Allowance for bad debts

 

250

 

 

 

750

 

 

 

(1,250

)

 

 

1,050

 

Amortization of deferred issuance costs, loss on extinguishment of debt, and other

 

1,787

 

 

 

1,627

 

 

 

4,163

 

 

 

4,184

 

Deferred and stock-based compensation

 

7,085

 

 

 

1,985

 

 

 

41,252

 

 

 

3,937

 

Loss (gain) on sale of assets and other

 

30

 

 

 

(102

)

 

 

(149

)

 

 

(23,509

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in working capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(35,288

)

 

 

(26,084

)

 

 

(49,713

)

 

 

(39,694

)

Inventory and other

 

(1,618

)

 

 

(5,220

)

 

 

(822

)

 

 

(1,504

)

Accounts payable

 

(21,144

)

 

 

26,289

 

 

 

(6,529

)

 

 

44,715

 

Accrued liabilities and other

 

35,168

 

 

 

9,368

 

 

 

36,721

 

 

 

(13,498

)

Net changes in working capital

 

(22,882

)

 

 

4,353

 

 

 

(20,343

)

 

 

(9,981

)

Net cash provided from operating activities

$

229,432

 

 

$

189,204

 

 

$

774,947

 

 

$

600,532

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF NET CASH PROVIDED FROM OPERATING ACTIVITIES, AS REPORTED, TO CASH FLOW FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL, a non-GAAP measure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2018

 

 

 

2017

 

 

 

2018

 

 

 

2017

 

Net cash provided from operating activities, as reported

$

229,432

 

 

$

189,204

 

 

$

774,947

 

 

$

600,532

 

Net changes in working capital

 

22,882

 

 

 

(4,353

)

 

 

20,343

 

 

 

9,981

 

Exploration expense

 

7,892

 

 

 

13,201

 

 

 

21,986

 

 

 

35,007

 

Lawsuit settlements

 

53

 

 

 

5,865

 

 

 

1,385

 

 

 

7,028

 

Termination costs

 

(336

)

 

 

(16

)

 

 

(373

)

 

 

2,384

 

Non-cash compensation adjustment

 

41

 

 

 

290

 

 

 

1,880

 

 

 

1,382

 

Cash flow from operations before changes in working capital – non-GAAP measure

$

259,964

 

 

$

204,191

 

 

$

820,168

 

 

$

656,314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2018

 

 

 

2017

 

 

 

2018

 

 

 

2017

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

249,482

 

 

 

248,133

 

 

 

249,131

 

 

 

247,794

 

Stock held by deferred compensation plan

 

(3,031

)

 

 

(2,889

)

 

 

(3,115

)

 

 

(2,767

)

Adjusted basic

 

246,451

 

 

 

245,244

 

 

 

246,016

 

 

 

245,027

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

249,482

 

 

 

248,133

 

 

 

249,131

 

 

 

247,794

 

Dilutive stock options under treasury method

 

(2,316

)

 

 

(2,889

)

 

 

(2,252

)

 

 

(2,514

)

Adjusted dilutive

 

247,166

 

 

 

245,244

 

 

 

246,879

 

 

 

245,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


11


RANGE RESOURCES CORPORATION

 

RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES AND DERIVATIVE FAIR VALUE INCOME (LOSS) TO CALCULATED CASH REALIZED NATURAL GAS, NGLs AND OIL PRICES WITH AND WITHOUT THIRD PARTY TRANSPORTATION, GATHERING AND COMPRESSION FEES, a non-GAAP measure

 

 

 

 

 

(Unaudited, in thousands, except per unit data)

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2018

 

 

 

2017

 

 

 

%

 

 

 

2018

 

 

 

2017

 

 

 

%

 

Natural gas, NGL and oil sales components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

$

390,656

 

 

$

301,114

 

 

 

 

 

 

$

1,182,580

 

 

$

1,008,980

 

 

 

 

 

NGL sales

 

278,563

 

 

 

150,593

 

 

 

 

 

 

 

705,793

 

 

 

412,440

 

 

 

 

 

Oil sales

 

67,212

 

 

 

55,834

 

 

 

 

 

 

 

206,077

 

 

 

151,688

 

 

 

 

 

Total oil and gas sales, as reported

$

736,431

 

 

$

507,541

 

 

 

45

%

 

$

2,094,450

 

 

$

1,573,108

 

 

 

33

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative fair value (loss) income, as reported:

$

(34,591

)

 

$

(88,426

)

 

 

 

 

 

$

(151,890

)

 

$

188,326

 

 

 

 

 

Cash settlements on derivative financial instruments – (gain) loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

 

(5,845

)

 

 

(26,250

)

 

 

 

 

 

 

(56,466

)

 

 

(34,647

)

 

 

 

 

NGLs

 

28,023

 

 

 

15,995

 

 

 

 

 

 

 

63,435

 

 

 

33,459

 

 

 

 

 

Crude Oil

 

12,744

 

 

 

(6,602

)

 

 

 

 

 

 

33,303

 

 

 

(14,874

)

 

 

 

 

Total change in fair value related to derivatives prior to settlement, a
non-GAAP measure

$

331

 

 

$

(105,283

)

 

 

 

 

 

$

(111,618

)

 

$

172,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transportation, gathering, processing and compression components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

$

176,271

 

 

$

133,019

 

 

 

 

 

 

$

497,569

 

 

$

384,769

 

 

 

 

 

NGLs

 

128,291

 

 

 

58,626

 

 

 

 

 

 

 

321,531

 

 

 

176,114

 

 

 

 

 

Total transportation, gathering, processing and compression, as reported

$

304,562

 

 

$

191,645

 

 

 

 

 

 

$

819,100

 

 

$

560,883

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas, NGL and oil sales, including cash-settled derivatives: (c)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

$

396,501

 

 

$

327,364

 

 

 

 

 

 

$

1,239,046

 

 

$

1,043,627

 

 

 

 

 

NGL sales

 

250,540

 

 

 

134,598

 

 

 

 

 

 

 

642,358

 

 

 

378,981

 

 

 

 

 

Oil sales

 

54,468

 

 

 

62,436

 

 

 

 

 

 

 

172,774

 

 

 

166,562

 

 

 

 

 

Total

$

701,509

 

 

$

524,398

 

 

 

34

%

 

 

2,054,178

 

 

 

1,589,170

 

 

 

29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production of oil and gas during the periods (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

 

140,757,676

 

 

 

121,644,949

 

 

 

16

%

 

 

411,769,576

 

 

 

357,389,113

 

 

 

15

%

NGL (bbl)

 

10,255,159

 

 

 

8,892,778

 

 

 

15

%

 

 

29,009,100

 

 

 

25,953,773

 

 

 

12

%

Oil (bbl)

 

1,040,891

 

 

 

1,288,303

 

 

 

-19

%

 

 

3,314,704

 

 

 

3,406,373

 

 

 

-3

%

Gas equivalent (mcfe) (b)

 

208,533,976

 

 

 

182,731,435

 

 

 

14

%

 

 

605,712,400

 

 

 

533,549,989

 

 

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production of oil and gas – average per day (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

 

1,529,975

 

 

 

1,322,228

 

 

 

16

%

 

 

1,508,313

 

 

 

1,309,118

 

 

 

15

%

NGL (bbl)

 

111,469

 

 

 

96,661

 

 

 

15

%

 

 

106,260

 

 

 

95,069

 

 

 

12

%

Oil (bbl)

 

11,314

 

 

 

14,003

 

 

 

-19

%

 

 

12,142

 

 

 

12,478

 

 

 

-3

%

Gas equivalent (mcfe) (b)  

 

2,266,674

 

 

 

1,986,211

 

 

 

14

%

 

 

2,218,727

 

 

 

1,954,396

 

 

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average prices, excluding derivative settlements and before third party transportation costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

$

2.78

 

 

$

2.48

 

 

 

12

%

 

$

2.87

 

 

$

2.82

 

 

 

2

%

NGL (bbl)

$

27.16

 

 

$

16.93

 

 

 

60

%

 

$

24.33

 

 

$

15.89

 

 

 

53

%

Oil (bbl)

$

64.57

 

 

$

43.34

 

 

 

49

%

 

$

62.17

 

 

$

44.53

 

 

 

40

%

Gas equivalent (mcfe) (b)

$

3.53

 

 

$

2.78

 

 

 

27

%

 

$

3.46

 

 

$

2.95

 

 

 

17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average prices, including derivative settlements before third party transportation costs: (c)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

$

2.82

 

 

$

2.69

 

 

 

5

%

 

$

3.01

 

 

$

2.92

 

 

 

3

%

NGL (bbl)

$

24.43

 

 

$

15.14

 

 

 

61

%

 

$

22.14

 

 

$

14.60

 

 

 

52

%

Oil (bbl)

$

52.33

 

 

$

48.46

 

 

 

8

%

 

$

52.12

 

 

$

48.90

 

 

 

7

%

Gas equivalent (mcfe) (b)

$

3.36

 

 

$

2.87

 

 

 

17

%

 

$

3.39

 

 

$

2.98

 

 

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average prices, including derivative settlements and after third party

       transportation costs: (d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

$

1.56

 

 

$

1.60

 

 

 

-2

%

 

$

1.80

 

 

$

1.84

 

 

 

-2

%

NGL (bbl)

$

11.92

 

 

$

8.54

 

 

 

40

%

 

$

11.05