SEC Filings

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

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

 

 

$

7.82

 

 

 

41

%

Oil (bbl)

$

52.33

 

 

$

48.46

 

 

 

8

%

 

$

52.12

 

 

$

48.90

 

 

 

7

%

Gas equivalent (mcfe) (b)

$

1.90

 

 

$

1.82

 

 

 

5

%

 

$

2.04

 

 

$

1.93

 

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transportation, gathering and compression expense per mcfe

$

1.46

 

 

$

1.05

 

 

 

39

%

 

$

1.35

 

 

$

1.05

 

 

 

29

%

(a) Represents volumes sold regardless of when produced.

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

(c) Excluding third party transportation, gathering and compression costs.

(d) Net of transportation, gathering and compression costs.

12