SEC Filings

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

 

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.

 

 


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