SEC Filings

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

RANGE RESOURCES CORPORATION

 

RECONCILIATION OF CASH MARGIN PER MCFE, 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas, NGL and oil sales, as reported

$

736,431

 

 

$

507,541

 

 

 

$

2,094,450

 

 

$

1,573,128

 

 

Derivative fair value (loss) income, as reported

 

(34,591

)

 

 

(88,426

)

 

 

 

(151,890

)

 

 

188,326

 

 

       Less non-cash fair value (gain) loss

 

(331

)

 

 

105,283

 

 

 

 

111,618

 

 

 

(172,264

)

 

Brokered natural gas and marketing and other, as reported

 

109,385

 

 

 

63,117

 

 

 

 

267,448

 

 

 

170,544

 

 

       Less ARO settlement and other (gains) losses

 

(274

)

 

 

(1,972

)

 

 

 

(674

)

 

 

(1,802

)

 

               Cash revenue applicable to production

 

810,620

 

 

 

585,543

 

 

 

 

2,320,952

 

 

 

1,757,932

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating, as reported

 

30,926

 

 

 

36,888

 

 

 

 

104,136

 

 

 

96,331

 

 

       Less direct operating stock-based compensation

 

(537

)

 

 

(517

)

 

 

 

(1,667

)

 

 

(1,563

)

 

Transportation, gathering and compression, as reported

 

304,562

 

 

 

191,645

 

 

 

 

819,100

 

 

 

560,883

 

 

Production and ad valorem taxes, as reported

 

9,427

 

 

 

11,993

 

 

 

 

29,493

 

 

 

31,125

 

 

Brokered natural gas and marketing, as reported

 

116,080

 

 

 

59,773

 

 

 

 

274,421

 

 

 

169,180

 

 

       Less brokered natural gas and marketing stock-based

       compensation

 

(403

)

 

 

(389

)

 

 

 

(1,001

)

 

 

(1,040

)

 

General and administrative, as reported

 

43,722

 

 

 

53,035

 

 

 

 

159,722

 

 

 

152,853

 

 

       Less G&A stock-based compensation

 

(5,607

)

 

 

(9,959

)

 

 

 

(38,332

)

 

 

(35,156

)

 

       Less lawsuit settlements

 

(53

)

 

 

(5,865

)

 

 

 

(1,385

)

 

 

(7,028

)

 

Interest expense, as reported

 

54,801

 

 

 

49,179

 

 

 

 

161,048

 

 

 

144,206

 

 

            Less amortization of deferred financing costs

 

(1,738

)

 

 

(1,813

)

 

 

 

(5,315

)

 

 

(5,385

)

 

               Cash expenses

 

551,180

 

 

 

383,970

 

 

 

 

1,500,220

 

 

 

1,104,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash margin, a non-GAAP measure

$

259,440

 

 

$

201,573

 

 

 

$

820,732

 

 

$

653,526

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mmcfe produced during period

 

208,534

 

 

 

182,732

 

 

 

 

605,712

 

 

 

533,550

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash margin per mcfe

$

1.24

 

 

$

1.10

 

 

 

$

1.35

 

 

$

1.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO CASH MARGIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, in thousands, except per unit data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

 

Nine Months Ended

September 30,

 

 

 

 

2018

 

 

 

2017

 

 

 

 

2018

 

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes, as reported

$

72,676

 

 

$

(199,692

)

 

 

$

56,236

 

 

$

210,015

 

 

Adjustments to reconcile income (loss) before income taxes to cash margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ARO settlements and other (gains) losses

 

(274

)

 

 

(1,972

)

 

 

 

(674

)

 

 

(1,802

)

 

Derivative fair value loss (income)

 

34,591

 

 

 

88,426

 

 

 

 

151,890

 

 

 

(188,326

)

 

Net cash receipts on derivative settlements

 

(34,922

)

 

 

16,857

 

 

 

 

(40,272

)

 

 

16,062

 

 

Exploration expense

 

7,894

 

 

 

22,206

 

 

 

 

21,990

 

 

 

44,173

 

 

Lawsuit settlements

 

53

 

 

 

5,865

 

 

 

 

1,385

 

 

 

7,028

 

 

Termination costs

 

(336

)

 

 

(16

)

 

 

 

(373

)

 

 

2,384

 

 

Deferred compensation plan

 

223

 

 

 

(9,203

)

 

 

 

(559

)

 

 

(36,838

)

 

Stock-based compensation (direct operating, brokered natural gas

   and marketing, general and administrative and termination costs)

 

6,952

 

 

 

11,395

 

 

 

 

42,527

 

 

 

41,020

 

 

Interest – amortization of deferred financing costs

 

1,738

 

 

 

1,813

 

 

 

 

5,315

 

 

 

5,385

 

 

Depletion, depreciation and amortization

 

164,266

 

 

 

159,749

 

 

 

 

487,558

 

 

 

462,074

 

 

(Gain) loss on sale of assets

 

30

 

 

 

(102

)

 

 

 

(149

)

 

 

(23,509

)

 

Impairment of proved property and other assets

 

 

 

 

63,679

 

 

 

 

22,614

 

 

 

63,679

 

 

Abandonment and impairment of unproved properties

 

6,549

 

 

 

42,568

 

 

 

 

73,244

 

 

 

52,181

 

 

Cash margin, a non-GAAP measure

$

259,440

 

 

$

201,573

 

 

 

$

820,732

 

 

$

653,526

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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