SEC Filings

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

 

 

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.

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