SEC Filings

8-K
RANGE RESOURCES CORP filed this Form 8-K on 07/31/2018
Entire Document
 
rrc-ex991_6.htm

Exhibit 99.1

NEWS RELEASE

RANGE ANNOUNCES SECOND QUARTER 2018 FINANCIAL RESULTS

FORT WORTH, TEXAS, JULY 30, 2018…RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its second quarter 2018 financial results.  

Highlights –

 

 

Production averaged a record 2,200 Mmcfe per day, an increase of 13% compared to second quarter 2017

 

Liquids production averaged 117,520 barrels per day, a 12% increase over the prior-year period, and contributed 46% of total product revenues before hedging

 

Natural gas differentials, including basis hedging, of $0.16 below NYMEX, a $0.23 improvement over prior-year quarter

 

Pre-hedge NGL realizations were $23.69 per barrel, a 63% increase over the prior-year quarter

 

Pre-hedge crude oil and condensate realizations of $63.07, a 45% increase over the prior-year quarter

 

Southwest Pennsylvania production increased 30% over the prior-year period to 1,752 Mmcfe per day

 

Cash from operations of $175 million, and non-GAAP cash flow of $237 million

 

Net loss of $80 million ($0.32 per diluted share), non-GAAP net income of $50 million ($0.20 per diluted share)

 

Commenting, Jeff Ventura, the Company’s CEO said, “This year is off to a solid start with another quarter of improving cash margins and record production, lifting cash flow per share by 22% over the same period last year.  This effort was led by our Marcellus operations, where long laterals and the utilization of existing pads and infrastructure are a tailwind for capital efficiencies, positioning us to deliver growth within cash flow for 2018 and in our five-year outlook.  At the same time, Range is intently focused on actions to fast-forward the de-levering process swiftly and prudently through asset sales.  We have processes underway and believe we can execute one or more successful sales in the current year, which would improve our balance sheet and corporate returns.

 

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.

 

Second Quarter 2018

 

GAAP revenues for second quarter 2018 totaled $656 million (a 3% decrease compared to second quarter 2017), GAAP net cash provided from operating activities, including changes in working capital, was $175 million, compared to $185 million in second quarter 2017, and GAAP earnings was a loss of $80 million ($0.32 per diluted share) versus earnings of $70 million ($0.28 per diluted share) in the prior-year quarter.  Second quarter earnings results include a $103 million derivative loss due to increases in future commodity prices compared to a $111 million derivative gain in the prior year and a $6.6 million mark to market loss related to the deferred compensation plan compared to a $14.5 million gain in the prior year.  Second quarter 2018 also included a $55 million unproved impairment primarily related to expiring leases in North Louisiana and a $15 million impairment of proved properties related to legacy assets in northwest Pennsylvania.



 

Non-GAAP revenues for second quarter 2018 totaled $745 million, an increase of 32% compared to second quarter 2017, and cash flow from operations before changes in working capital, a non-GAAP measure, was $237 million, compared to $194 million in second quarter 2017.  Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $50 million ($0.20 per diluted share) in second quarter 2018, compared to $16 million ($0.06 per diluted share) in the prior-year quarter, an increase of 233%.  

 

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

 

Net Production

 

Natural Gas

(Mmcf/d)

 

Oil (Bbl/d)

 

NGLs

(Bbl/d)

 

Natural Gas

Equivalent (Mcfe/d)

 

 

 

 

 

 

 

 

 

 

 

 

 

1,495

 

13,301

 

104,219

 

2,200

 

 

 

Realized Pricing

 

 

Natural Gas

($/Mcf)

 

Oil ($/Bbl)

 

NGLs

($/Bbl)

 

Natural Gas

Equivalent ($/Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

Average NYMEX price

 

$2.80

 

$67.89

 

 

 

 

Differential, including basis hedging

 

(0.16)

 

(4.82)

 

 

 

 

Realized prices before NYMEX hedges

 

2.64

 

63.07

 

$23.69

 

$3.30

Settled NYMEX hedges

 

0.14

 

(10.12)

 

(2.12)

 

(0.07)

Average realized prices after hedges

 

$2.78

 

$52.95

 

$21.57

 

$3.23

 

 

Second 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 $3.23 per mcfe, a 12% increase from the prior-year 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 $2.64 per mcf (or $0.16 per mcf below NYMEX) during the second quarter, which was significantly better than the $0.39 negative differential to NYMEX in the prior year quarter.  The combination of increased pipeline connectivity, seasonally low storage levels and compressed basis across the Appalachian and Midwest regions has also improved the Company’s expected 2018 natural gas differential to NYMEX minus $0.10 per mcf.

 

 

Pre-hedge NGL realizations were $23.69 per barrel, or 35% of WTI, in second quarter 2018.  Realized NGL price was above the mid-point of guidance as a result of NGL component price improvements late in the quarter.  Range expects similar pricing strength through the second half of 2018, putting Range at the high-end of previously announced calendar 2018 guidance.

 

 

Crude oil and condensate price realizations, before realized hedges, for the second quarter averaged $63.07 per barrel, or $4.82 below WTI, a 45% improvement in realized price over the prior year quarter.  

 

 


2


Unit Costs

 

The following table details Range’s unit costs per mcfe, excluding stock-based compensation:

 

 

Expenses

 

2Q 2018

($/Mcfe)

 

 

2Q 2017

($/Mcfe)

 

 

Increase (Decrease)

 

 

 

 

 

 

 

 

 

Direct operating

$

0.17

 

$

0.17

 

 

Transportation, gathering, processing and compression

 

1.35(a)

 

 

1.08

 

 

25%

Production and ad valorem taxes

 

0.05

 

 

0.06

 

 

(17%)

General and administrative

 

0.20

 

 

0.21

 

 

(5%)

Interest expense

 

0.26

 

 

0.26

 

 

Total cash unit costs(b)

 

2.03

 

 

1.78

 

 

14%

Depletion, depreciation and

amortization (DD&A)

 

0.80

 

 

0.86

 

 

(7%)

Total unit costs plus DD&A(b)

$

2.83

 

$

2.65

 

 

7%

 

 

(a)

Second 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 $0.21 per mcfe in second quarter 2018.  There was an equal increase to NGL revenue as there is zero net impact to cash flow as a result of the change in accounting method. See page 8 in Range’s second quarter 2018 Form 10-Q.

 

(b)

May not add due to rounding

 

 

Capital Expenditures

 

Second quarter 2018 drilling expenditures of $260 million funded the drilling and completion of 30 (27.3 net) wells.  A 100% success rate was achieved.  In addition $10.3 million was spent on acreage purchases during the second quarter.  Total capital expenditures year to date were $521 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.

 

In addition, subsequent to quarter-end, Range sold Midcontinent properties for $23 million, consisting of approximately 11 Mmcfe per day of production and expected annualized cash flow of approximately $3 million.  

 

 

 

Operational Discussion

 

Range’s net production for second quarter 2018 averaged 2,200 Mmcfe per day, consisting of 1,495 Mmcf per day of natural gas, 104,219 barrels per day of NGLs and 13,301 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, providing leverage to improving oil and NGL pricing fundamentals.    

 


3


The table below summarizes wells turned to sales and the estimated activity for the remainder of the year.  Estimated well costs, lateral lengths and EUR’s by area can be found in the company presentation on Range’s website.  

 

 

 

Wells TIL

1Q 2018

 

Wells TIL

2Q 2018

 

Calendar 2018

Planned TIL

 

Remaining

2H 2018

SW PA Super-Rich

 

2

 

3

 

15

 

10

SW PA Wet

 

7

 

8

 

42

 

27

SW PA Dry

 

 

28

 

43

 

15

Total Appalachia

 

9

 

39

 

100

 

52

 

 

 

 

 

 

 

 

 

Total N. LA.

 

4

 

4

 

11

 

3

Total

 

13

 

43

 

111

 

55

 

 

Appalachia Division

 

Production for second quarter 2018 averaged approximately 1,876 net Mmcfe per day from the Appalachia division, a 25% increase over the prior-year quarter.  The southwest area of the division averaged 1,752 net Mmcfe per day during the quarter, a 30% increase over second quarter 2017.  This was achieved through continued operational improvements and exceptional well results across Range’s acreage position.  The northeast Marcellus properties averaged 107 net Mmcf per day and legacy acreage produced approximately 17 net Mmcf per day during the second quarter 2018.

 

North Louisiana

 

Production for the division in second quarter of 2018 averaged approximately 313 net Mmcfe per day.  The division brought on line four wells during the quarter, and expects to bring on line an additional three wells during the remainder of the year for a total of 11 wells in 2018.

 

Marketing and Transportation

 

Range’s marketing efforts were affected by two separate third-party midstream events during the second quarter that took away the primary method of transportation for certain production.  The Company minimized the impact to cash flow by working with our various midstream and processing partners to maintain production during the downtime.

 

The transportation of natural gas liquids on Sunoco’s Mariner East 1 pipeline was suspended for almost two months during the second quarter.  As a result, Range lost access to capacity on the Mariner East 1 pipeline for a combined 40,000 barrels per day of ethane and propane. As one of the largest NGL producers in the United States, Range has taken a portfolio approach to the sale of its purity products. The marketing team utilized alternate markets for Mariner East ethane volumes or simply sold the ethane as natural gas. For propane, Range has access to another local pipeline and railcars that continued to provide outlets to international markets via the Marcus Hook terminal as well as various domestic markets. As a result, Range was able to realize propane prices that were, on average, above the Mont Belvieu index price, while paying slightly higher transportation expense.  The Mariner East 1 pipeline was returned to service in mid-June.

 

In early June, TransCanada’s Leach Xpress project on which Range holds natural gas capacity (300,000 Dth/day) was taken offline following a pipeline rupture in West Virginia. Range rerouted the natural gas production earmarked for the Leach Xpress capacity into local Appalachian markets.  On July 15th, the Leach Xpress project returned to service.  

 

Energy Transfer’s Rover project (phase 2), which is the last major natural gas transportation project for which Range has contracted capacity, is expected to reach full completion in third quarter 2018.  Once the Rover project is in service, over 70% of Range’s production can be sold in the Gulf Coast market, which currently receives near NYMEX pricing.  

4


Guidance – 2018  

Production per day Guidance

 

Production for the third quarter of 2018 is expected to be approximately 2,220 Mmcfe per day.  This excludes all Midcontinent volumes following the sale of that asset in early July.

 

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

 

3Q 2018 Expense Guidance  

 

Direct operating expense:

 

 $0.17 − $0.19 per mcfe

Transportation, gathering, processing and compression expense:

 

 $1.38 − $1.42 per mcfe

Production tax expense:

 

 $0.05 − $0.07 per mcfe

Exploration expense:

 

 $7.0 − $10.0 million

Unproved property impairment expense:

 

 $8.0 − $10.0 million

G&A expense:

 

 $0.20 − $0.22 per mcfe

Interest expense:

 

 $0.26 − $0.28 per mcfe

DD&A expense:

 

 $0.80 − $0.84 per mcfe

Net brokered gas marketing expense:

 

 ~$3.0 million

 

3Q 2018 Natural Gas Price Differentials (including basis hedging):NYMEX minus $0.20

 

 

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

 

 

New Guidance

 

Prior Guidance

Natural Gas:

NYMEX minus $0.10

 

NYMEX minus $0.15

Natural Gas Liquids (including ethane):

35% 36% of WTI

 

32% 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 second half 2018 natural gas production hedged at a weighted average floor price of $2.97 per Mmbtu.  Similarly, Range has hedged over 70% of its second half 2018 projected crude oil production at a floor price of $53.20 and over 50% 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 $1.9 million as of June 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 $2.1 million on June 30, 2018.  

 


5


Conference Call Information

A conference call to review the financial results is scheduled on Tuesday, July 31 at 9:00 a.m. ET. To participate in the call, please dial 866-900-7525 and provide conference code 9999543 about 10 minutes prior to the scheduled start time.

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 August 31, 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.


6


We believe that the presentation of PV-10 is relevant and useful to our investors as supplemental disclosure to the standardized measure, or after-tax amount, because it presents the discounted future net cash flows attributable to our proved reserves before taking into account future corporate income taxes and our current tax structure. While the standardized measure is dependent on the unique tax situation of each company, PV-10 is based on prices and discount factors that are consistent for all companies. Because of this, PV-10 can be used within the industry and by creditors and security analysts to evaluate estimated net cash flows from proved reserves on a more comparable basis.

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.

 

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.  


7


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, 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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

 

2017

 

 

 

%

 

 

 

2018

 

 

 

2017

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues and other income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas, NGLs and oil sales (a)

$

661,390

 

 

$

506,137

 

 

 

 

 

 

$

1,358,019

 

 

$

1,065,587

 

 

 

 

 

Derivative fair value (loss)/income

 

(103,290

)

 

 

111,195

 

 

 

 

 

 

 

(117,299

)

 

 

276,752

 

 

 

 

 

Brokered natural gas, marketing and other (b)

 

97,908

 

 

 

56,016

 

 

 

 

 

 

 

157,663

 

 

 

107,597

 

 

 

 

 

ARO settlement gain (loss) (b)

 

(12

)

 

 

(40

)

 

 

 

 

 

 

(12

)

 

 

(40

)

 

 

 

 

Other (b)

 

188

 

 

 

(197

)

 

 

 

 

 

 

412

 

 

 

(130

)

 

 

 

 

Total revenues and other income

 

656,184

 

 

 

673,111

 

 

 

-3

%

 

 

1,398,783

 

 

 

1,449,766

 

 

 

-4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

34,549

 

 

 

30,898

 

 

 

 

 

 

 

72,080

 

 

 

58,397

 

 

 

 

 

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

 

539

 

 

 

522

 

 

 

 

 

 

 

1,130

 

 

 

1,046

 

 

 

 

 

Transportation, gathering, processing and compression  

 

269,910

 

 

 

191,590

 

 

 

 

 

 

 

514,538

 

 

 

369,238

 

 

 

 

 

Production and ad valorem taxes  

 

10,140

 

 

 

9,969

 

 

 

 

 

 

 

20,066

 

 

 

19,132

 

 

 

 

 

Brokered natural gas and marketing

 

102,434

 

 

 

55,469

 

 

 

 

 

 

 

157,743

 

 

 

108,756

 

 

 

 

 

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

 

313

 

 

 

388

 

 

 

 

 

 

 

598

 

 

 

651

 

 

 

 

 

Exploration

 

7,128

 

 

 

13,970

 

 

 

 

 

 

 

14,096

 

 

 

21,967

 

 

 

 

 

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

 

371

 

 

 

528

 

 

 

 

 

 

 

1,122

 

 

 

1,035

 

 

 

 

 

Abandonment and impairment of unproved properties  

 

54,922

 

 

 

5,193

 

 

 

 

 

 

 

66,695

 

 

 

9,613

 

 

 

 

 

General and administrative  

 

39,114

 

 

 

37,203

 

 

 

 

 

 

 

83,443

 

 

 

73,158

 

 

 

 

 

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

 

8,814

 

 

 

14,279

 

 

 

 

 

 

 

32,725

 

 

 

25,197

 

 

 

 

 

General and administrative – lawsuit settlements

 

1,155

 

 

 

540

 

 

 

 

 

 

 

1,332

 

 

 

1,163

 

 

 

 

 

General and administrative – bad debt expense  

 

(1,500

)

 

 

300

 

 

 

 

 

 

 

(1,500

)

 

 

300

 

 

 

 

 

Termination costs

 

 

 

 

(50

)

 

 

 

 

 

 

(37

)

 

 

2,400

 

 

 

 

 

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

 

 

 

 

(46

)

 

 

 

 

 

 

 

 

 

1,696

 

 

 

 

 

Deferred compensation plan (d)

 

6,615

 

 

 

(14,466

)

 

 

 

 

 

 

(782

)

 

 

(27,635

)

 

 

 

 

Interest expense

 

52,137

 

 

 

46,132

 

 

 

 

 

 

 

102,670

 

 

 

91,455

 

 

 

 

 

Interest expense – amortization of deferred financing

     costs

 

1,725

 

 

 

1,794

 

 

 

 

 

 

 

3,577

 

 

 

3,572

 

 

 

 

 

Depletion, depreciation and amortization  

 

161,026

 

 

 

152,504

 

 

 

 

 

 

 

323,292

 

 

 

302,325

 

 

 

 

 

Impairment of proved properties and other assets

 

15,302

 

 

 

 

 

 

 

 

 

 

22,614

 

 

 

 

 

 

 

 

Gain on sale of assets

 

(156

)

 

 

(807

)

 

 

 

 

 

 

(179

)

 

 

(23,407

)

 

 

 

 

Total costs and expenses

 

764,538

 

 

 

545,910

 

 

 

-40

%

 

 

1,415,223

 

 

 

1,040,059

 

 

 

36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

(108,354

)

 

 

127,201

 

 

 

-185

%

 

 

(16,440

)

 

 

409,707

 

 

 

-104

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred

 

(28,518

)

 

 

57,651

 

 

 

 

 

 

 

14,158

 

 

 

170,046

 

 

 

 

 

 

 

(28,518

)

 

 

57,651

 

 

 

 

 

 

 

14,158

 

 

 

170,046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

$

(79,836

)

 

$

69,550

 

 

 

-215

%

 

$

(30,598

)

 

$

239,661

 

 

 

-113

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (Loss) Income Per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.32

)

 

$

0.28

 

 

 

 

 

 

$

(0.13

)

 

$

0.97

 

 

 

 

 

Diluted

$

(0.32

)

 

$

0.28

 

 

 

 

 

 

$

(0.13

)

 

$

0.97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, as reported:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

245,880

 

 

 

245,177

 

 

 

0

%

 

 

245,795

 

 

 

244,916

 

 

 

0

%

Diluted

 

245,880

 

 

 

245,335

 

 

 

0

%

 

 

245,795

 

 

 

245,242

 

 

 

0

%

(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)

 

June 30,

 

 

 

December 31,

 

 

 

2018

 

 

 

2017

 

 

 

(Unaudited)

 

 

 

(Audited)

 

Assets

 

 

 

 

 

 

 

Current assets

$

384,872

 

 

$

370,627

 

Derivative assets

 

3,295

 

 

 

58,880

 

Goodwill

 

1,641,197

 

 

 

1,641,197

 

Natural gas and oil properties, successful efforts method

 

9,705,122

 

 

 

9,566,737

 

Transportation and field assets

 

13,190

 

 

 

14,666

 

Other

 

78,401

 

 

 

76,734

 

 

$

11,826,077

 

 

$

11,728,841

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

Current liabilities

$

632,354

 

 

$

704,913

 

Asset retirement obligations

 

6,327

 

 

 

6,327

 

Derivative liabilities

 

101,328

 

 

 

44,233

 

 

 

 

 

 

 

 

 

Bank debt

 

1,304,584

 

 

 

1,208,467

 

Senior notes

 

2,853,948

 

 

 

2,851,754

 

Senior subordinated notes

 

48,630

 

 

 

48,585

 

Total debt

 

4,207,162

 

 

 

4,108,806

 

 

 

 

 

 

 

 

 

Deferred tax liability

 

707,563

 

 

 

693,356

 

Derivative liabilities

 

10,088

 

 

 

9,789

 

Deferred compensation liability

 

87,087

 

 

 

101,102

 

Asset retirement obligations and other liabilities

 

310,133

 

 

 

286,043

 

 

 

 

 

 

 

 

 

Common stock and retained earnings

 

5,765,633

 

 

 

5,776,203

 

Other comprehensive loss

 

(1,194

)

 

 

(1,332

)

Common stock held in treasury stock

 

(404

)

 

 

(599

)

Total stockholders’ equity

 

5,764,035

 

 

 

5,774,272

 

 

$

11,826,077

 

 

$

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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

 

2017

 

 

 

%

 

 

 

2018

 

 

 

2017

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and other income, as reported

$

656,184

 

 

$

673,111

 

 

 

-3

%

 

$

1,398,783

 

 

$

1,449,766

 

 

 

-4

%

Adjustment for certain special items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

89,015

 

 

 

(107,809

)

 

 

 

 

 

 

111,949

 

 

 

(277,547

)

 

 

 

 

ARO settlement (gain) loss

 

12

 

 

 

40

 

 

 

 

 

 

 

12

 

 

 

40

 

 

 

 

 

Total revenues, as adjusted, non-GAAP

$

745,211

 

 

$

565,342

 

 

 

32

%

 

$

1,510,744

 

 

$

1,172,259

 

 

 

29

%

 


10


RANGE RESOURCES CORPORATION

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

 

2017

 

 

 

2018

 

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

$

(79,836

)

 

$

69,550

 

 

$

(30,598

)

 

$

239,661

 

Adjustments to reconcile net cash provided from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income tax (benefit) expense

 

(28,518

)

 

 

57,651

 

 

 

14,158

 

 

 

170,046

 

Depletion, depreciation, amortization and impairment

 

176,328

 

 

 

152,504

 

 

 

345,906

 

 

 

302,325

 

Exploration dry hole costs

 

 

 

 

161

 

 

 

2

 

 

 

161

 

Abandonment and impairment of unproved properties

 

54,922

 

 

 

5,193

 

 

 

66,695

 

 

 

9,613

 

Derivative fair value loss (income)

 

103,290

 

 

 

(111,195

)

 

 

117,299

 

 

 

(276,752

)

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

     accounting

 

(14,275

)

 

 

3,387

 

 

 

(5,350

)

 

 

(794

)

Allowance for bad debts

 

(1,500

)

 

 

300

 

 

 

(1,500

)

 

 

300

 

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

 

1,064

 

 

 

1,247

 

 

 

2,376

 

 

 

2,557

 

Deferred and stock-based compensation

 

15,640

 

 

 

990

 

 

 

34,167

 

 

 

1,952

 

(Gain) loss on sale of assets and other

 

(156

)

 

 

(807

)

 

 

(179

)

 

 

(23,407

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in working capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(68,338

)

 

 

(8,920

)

 

 

(14,425

)

 

 

(13,610

)

Inventory and other

 

6,090

 

 

 

848

 

 

 

796

 

 

 

3,716

 

Accounts payable

 

(32,838

)

 

 

(5,958

)

 

 

14,615

 

 

 

18,426

 

Accrued liabilities and other

 

43,070

 

 

 

20,515

 

 

 

1,553

 

 

 

(22,866

)

Net changes in working capital

 

(52,016

)

 

 

6,485

 

 

 

2,539

 

 

 

(14,334

)

Net cash provided from operating activities

$

174,943

 

 

$

185,466

 

 

$

545,515

 

 

$

411,328

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

 

2017

 

 

 

2018

 

 

 

2017

 

Net cash provided from operating activities, as reported

$

174,943

 

 

$

185,466

 

 

$

545,515

 

 

$

411,328

 

Net changes in working capital

 

52,016

 

 

 

(6,485

)

 

 

(2,539

)

 

 

14,334

 

Exploration expense

 

7,128

 

 

 

13,809

 

 

 

14,094

 

 

 

21,806

 

Lawsuit settlements

 

1,155

 

 

 

540

 

 

 

1,332

 

 

 

1,163

 

Termination costs

 

 

 

 

(50

)

 

 

 

 

 

2,400

 

Non-cash compensation adjustment

 

1,685

 

 

 

801

 

 

 

1,802

 

 

 

1,092

 

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

$

236,927

 

 

$

194,081

 

 

$

560,204

 

 

$

452,123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

 

2017

 

 

 

2018

 

 

 

2017

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

249,324

 

 

 

247,852

 

 

 

248,952

 

 

 

247,622

 

Stock held by deferred compensation plan

 

(3,444

)

 

 

(2,675

)

 

 

(3,157

)

 

 

(2,706

)

Adjusted basic

 

245,880

 

 

 

245,177

 

 

 

245,795

 

 

 

244,916

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

249,324

 

 

 

247,852

 

 

 

248,952

 

 

 

247,622

 

Dilutive stock options under treasury method

 

(3,444

)

 

 

(2,517

)

 

 

(3,157

)

 

 

(2,380

)

Adjusted dilutive

 

245,880

 

 

 

245,335

 

 

 

245,795

 

 

 

245,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

 

2017

 

 

 

%

 

 

 

2018

 

 

 

2017

 

 

 

%

 

Natural gas, NGL and oil sales components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

$

360,351

 

 

$

336,534

 

 

 

 

 

 

$

791,924

 

 

$

707,866

 

 

 

 

 

NGL sales

 

224,703

 

 

 

123,784

 

 

 

 

 

 

 

427,230

 

 

 

261,847

 

 

 

 

 

Oil sales

 

76,336

 

 

 

45,819

 

 

 

 

 

 

 

138,865

 

 

 

95,854

 

 

 

 

 

Total oil and gas sales, as reported

$

661,390

 

 

$

506,137

 

 

 

31

%

 

$

1,358,019

 

 

$

1,065,567

 

 

 

27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative fair value income (loss), as reported:

$

(103,290

)

 

$

111,195

 

 

 

 

 

 

$

(117,299

)

 

$

276,752

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

 

(18,113

)

 

 

(942

)

 

 

 

 

 

 

(50,621

)

 

 

(8,397

)

 

 

 

 

NGLs

 

20,144

 

 

 

3,131

 

 

 

 

 

 

 

35,412

 

 

 

17,464

 

 

 

 

 

Crude Oil

 

12,244

 

 

 

(5,575

)

 

 

 

 

 

 

20,559

 

 

 

(8,272

)

 

 

 

 

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

$

(89,015

)

 

$

107,809

 

 

 

 

 

 

$

(111,949

)

 

$

277,547

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transportation, gathering, processing and compression components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

$

164,064

 

 

$

129,557

 

 

 

 

 

 

$

321,298

 

 

$

251,750

 

 

 

 

 

NGLs

 

105,846

 

 

 

62,033

 

 

 

 

 

 

 

193,240

 

 

 

117,488

 

 

 

 

 

Total transportation, gathering, processing and compression, as reported

$

269,910

 

 

$

191,590

 

 

 

 

 

 

$

514,538

 

 

$

369,238

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

$

378,464

 

 

$

337,476

 

 

 

 

 

 

$

842,545

 

 

$

716,263

 

 

 

 

 

NGL sales

 

204,559

 

 

 

120,653

 

 

 

 

 

 

 

391,818

 

 

 

244,383

 

 

 

 

 

Oil sales

 

64,092

 

 

 

51,394

 

 

 

 

 

 

 

118,306

 

 

 

104,126

 

 

 

 

 

Total

$

647,115

 

 

$

509,523

 

 

 

27

%

 

 

1,352,669

 

 

 

1,064,772

 

 

 

27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

 

136,057,805

 

 

 

119,487,827

 

 

 

14

%

 

 

271,011,900

 

 

 

235,744,164

 

 

 

15

%

NGL (bbl)

 

9,483,910

 

 

 

8,524,267

 

 

 

11

%

 

 

18,753,941

 

 

 

17,060,995

 

 

 

10

%

Oil (bbl)

 

1,210,379

 

 

 

1,052,784

 

 

 

15

%

 

 

2,273,813

 

 

 

2,118,070

 

 

 

7

%

Gas equivalent (mcfe) (b)

 

200,223,539

 

 

 

176,950,133

 

 

 

13

%

 

 

397,178,424

 

 

 

350,818,554

 

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

 

1,495,141

 

 

 

1,313,053

 

 

 

14

%

 

 

1,497,303

 

 

 

1,302,454

 

 

 

15

%

NGL (bbl)

 

104,219

 

 

 

93,673

 

 

 

11

%

 

 

103,613

 

 

 

94,260

 

 

 

10

%

Oil (bbl)

 

13,301

 

 

 

11,569

 

 

 

15

%

 

 

12,563

 

 

 

11,702

 

 

 

7

%

Gas equivalent (mcfe) (b)  

 

2,200,259

 

 

 

1,944,507

 

 

 

13

%

 

 

2,194,356

 

 

 

1,938,224

 

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

$

2.65

 

 

$

2.82

 

 

 

-6

%

 

$

2.92

 

 

$

3.00

 

 

 

-3

%

NGL (bbl)

$

23.69

 

 

$

14.52

 

 

 

63

%

 

$

22.78

 

 

$

15.35

 

 

 

48

%

Oil (bbl)

$

63.07

 

 

$

43.52

 

 

 

45

%

 

$

61.07

 

 

$

45.26

 

 

 

35

%

Gas equivalent (mcfe) (b)

$

3.30

 

 

$

2.86

 

 

 

15

%

 

$

3.42

 

 

$

3.04

 

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

$

2.78

 

 

$

2.82

 

 

 

-2

%

 

$

3.11

 

 

$

3.04

 

 

 

2

%

NGL (bbl)

$

21.57

 

 

$

14.15

 

 

 

52

%

 

$

20.89

 

 

$

14.32

 

 

 

46

%

Oil (bbl)

$

52.95

 

 

$

48.82

 

 

 

8

%

 

$

52.03

 

 

$

49.16

 

 

 

6

%

Gas equivalent (mcfe) (b)

$

3.23

 

 

$

2.88

 

 

 

12

%

 

$

3.41

 

 

$

3.04

 

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average prices, including derivative settlements and after third party

       transportation costs: (d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

$

1.58

 

 

$

1.74

 

 

 

-9

%

 

$

1.92

 

 

$

1.97

 

 

 

-2

%

NGL (bbl)

$

10.41

 

 

$

6.88

 

 

 

51

%

 

$

10.59

 

 

$

7.44

 

 

 

42

%

Oil (bbl)

$

52.95

 

 

$

48.82

 

 

 

8

%

 

$

52.03

 

 

$

49.16

 

 

 

6

%

Gas equivalent (mcfe) (b)

$

1.88

 

 

$

1.80

 

 

 

5

%

 

$

2.11

 

 

$

1.98

 

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transportation, gathering and compression expense per mcfe

$

1.35

 

 

$

1.08

 

 

 

25

%

 

$

1.30

 

 

$

1.05

 

 

 

23

%

(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


RANGE RESOURCES CORPORATION

RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES AS REPORTED TO INCOME BEFORE INCOME TAXES EXCLUDING CERTAIN ITEMS, a non-GAAP measure

 

 

 

 

 

 

(Unaudited, in thousands, except per share data)

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

 

2017

 

 

 

%

 

 

 

2018

 

 

 

2017