Range Announces Fourth Quarter 2020 Results
Highlights –
- All-in 2020 capital spending was
$411 million , approximately$109 million less than original budget - Fourth quarter cash unit costs improved by
$0.07 per mcfe compared to prior year period - Company record for lease operating expense of
$0.08 per mcfe during the quarter - Reduced debt in 2020 by
$86 million compared to year-end 2019 - All-in 2021 capital budget of
$425 million maintains production at ~2.15 Bcfe per day - 2021 well costs expected to average
$570 per lateral foot, or less, lowest in Appalachia - PV-10 of year-end proved reserves of
$8.6 billion , or$22 per share net of debt, assuming NYMEX prices of$2.75 per Mmbtu of natural gas and$50 per barrel of oil - In
January 2021 , issued $600 million in 2029 notes extending the Company’s debt maturities and enhancing liquidity to$2.0 billion - Updated executive compensation framework to enhance alignment with shareholders and support the Company’s focus on financial strength, environmental leadership, cost improvements, safety and generating sustainable returns for shareholders
Commenting on the results and 2021 plans,
2021 Capital Program
Range’s 2021 all-in capital budget is
The table below summarizes expected 2021 activity and 2020 regarding the number of wells to sales in each area.
Planned Wells | Wells TIL in | ||
TIL in 2021 | 2020 | ||
SW PA Super-Rich | 17 | 3 | |
SW PA Wet | 18 | 31 | |
SW PA Dry | 24 | 33 | |
Total Appalachia | 59 | 67 |
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.
Capital Expenditures
Fourth quarter 2020 drilling and completions expenditures were
Financial Position
Range reduced outstanding debt by
During the year, Range repurchased in the open market and retired approximately $161 million in principal amount of its senior and subordinated notes at a weighted average discount to par of 25%. Range also repurchased 8.2 million shares of the Company’s common stock during the year at an average price of $2.80 per share.
In
Fourth Quarter 2020 Results
GAAP revenues for fourth quarter 2020 totaled $599 million, GAAP net cash provided from operating activities (including changes in working capital) was $90 million, and GAAP net income was
Non-GAAP revenues for fourth quarter 2020 totaled $531 million, and cash flow from operations before changes in working capital, a non-GAAP measure, was $108 million. Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was
The following table details Range’s fourth quarter 2020 unit costs per mcfe(a):
4Q 2020 | 4Q 2019 | Increase | |||||||||
Expenses | (per mcfe) | (per mcfe) | (Decrease) | ||||||||
Direct operating | $ | 0.08 | $ | 0.15 | (47%) | ||||||
Transportation, gathering, | |||||||||||
processing and compression | 1.34 | 1.39 | (4%) | ||||||||
Production and ad valorem taxes | 0.02 | 0.04 | (50%) | ||||||||
General and administrative(a) | 0.16 | 0.14 | 14% | ||||||||
Interest expense(a) | 0.24 | 0.19 | 26% | ||||||||
Total cash unit costs(b) | 1.84 | 1.92 | (4%) | ||||||||
Depletion, depreciation and | |||||||||||
amortization (DD&A) | 0.47 | 0.61 | (23%) | ||||||||
Total unit costs plus DD&A(b) | $ | 2.32 | $ | 2.53 | (8%) |
(a) | Excludes stock-based compensation, legal settlements and amortization of deferred financing costs. |
(b) | May not add due to rounding. |
The following table details Range’s average production and realized pricing for fourth quarter 2020:
4Q20 Production & Realized Pricing | |||||||||||||||
Natural Gas | |||||||||||||||
Natural Gas | Oil | NGLs | Equivalent | ||||||||||||
(Mcf) | (Bbl) | (Bbl) | (Mcfe) | ||||||||||||
Net Production per day | 1,464,834 | 6,356 | 97,453 | 2,087,690 | |||||||||||
Average NYMEX price | $ | 2.67 | $ | 42.70 | |||||||||||
Differential, including basis hedging | (0.57 | ) | (10.91 | ) | |||||||||||
Realized prices before NYMEX hedges | 2.10 | 31.79 | $ | 18.02 | $ | 2.41 | |||||||||
Settled NYMEX hedges | (0.03 | ) | 14.33 | (0.53 | ) | 0.00 | |||||||||
Average realized prices after hedges | $ | 2.07 | $ | 46.12 | $ | 17.49 | $ | 2.41 |
Range’s fourth quarter production was approximately 2.1 Bcfe net per day, including the impact of curtailed production during fourth quarter in response to low prices and infrastructure maintenance. The deferred production has benefited from improving prices across all products into mid-December and early 2021. By area, southwest Marcellus production averaged 2.0 Bcfe per day while the northeast Marcellus assets averaged 83 net Mmcf per day during the quarter.
Fourth quarter 2020 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements which correspond to analysts’ estimates) averaged
- The average natural gas price, including the impact of basis hedging, was
$2.10 per mcf, or a ($0.57 ) per mcf differential to NYMEX. The fourth quarter natural gas differential was impacted by storage levels in multiple regions as well as a late start to winter weather. Starting in December and into 2021, basis in each region has normalized, improving the Company’s first quarter 2021 natural gas differential to NYMEX within an expected range of ($0.20 ) to ($0.25 ) per mcf.
- Pre-hedge NGL realizations were
$18.02 per barrel, an improvement of$1.75 per barrel versus the previous quarter driven by an improving market for propane and heavier products. NGL prices have improved further in early 2021, as theMont Belvieu weighted equivalent is currently trading above$25 per barrel in the first quarter. In addition, Range continues to see strong NGL export premiums atMarcus Hook and expects to maintain an average 2021 pre-hedge premium differential of between$0.00 -$2.00 per barrel toMont Belvieu equivalent, as a result of access to international markets and a diversified portfolio of sales agreements.
- Crude oil and condensate price realizations, before realized hedges, averaged
$31.79 per barrel, or$10.91 below WTI (West Texas Intermediate). Range expects an improving condensate differential to WTI during 2021, between$7-$9 below NYMEX, as regional production continues to decline and demand for transportation fuels is expected to recover.
Transportation and Gathering
Since the end of 2018, Range has reduced transportation and gathering expenses per unit of production by
Beyond 2021, Range anticipates transportation and gathering expenses to decline in absolute terms assuming continued maintenance of existing production levels. By 2025 Range expects annual gathering expense relative to 2021 to decline by approximately
2020 Proved Reserves
Year-end 2020 proved reserves were 17.2 Tcfe, essentially unchanged year-over-year after adjusting for asset sales and price revisions. By volume, proved reserves were 65% natural gas, 33% natural gas liquids and 2% crude oil and condensate. Proved developed reserves represent 57% of the Company’s reserves.
Summary of Changes in Proved Reserves
(in Bcfe)
Balance at |
18,192 | |
Extensions, discoveries and additions | 1,264 | |
Performance revisions | 420 | |
Reclassification of PUD to unproved under |
(961 | ) |
Price revisions | (68 | ) |
Sales of proved reserves | (828 | ) |
Production | (816 | ) |
Balance at |
17,203 |
During 2020, Range added 1.3 Tcfe of proved reserves through the drill-bit, driven by the Marcellus shale development. Field level performance increased reserves by 312 Bcfe due to continued improvement in the well performance of existing Marcellus producing wells and 109 Bcfe of reserves associated with proved undeveloped locations which have re-entered the Company’s five-year drilling program. Range removed 961 Bcfe of proved undeveloped reserves that now fall outside the
2020 |
Flat Price | ||||
Pricing(a) | Example(b) | ||||
Natural Gas Price ($/Mmbtu) | |||||
WTI Oil Price ($/Bbl) | |||||
NGL Price ($/Bbl) | |||||
Proved Reserves PV10 ($ billions) |
(a) | |
(b) | Example NYMEX prices adjusted for energy content, quality and basis differentials were |
Year-end 2020 reserves included 7.4 Tcfe of proved undeveloped reserves from 361 wells planned to be developed within the next five years with an expected development cost of
The table below reflects Range’s estimate of the remaining core drilling inventory for the Marcellus.
Estimated Future Marcellus Drilling Locations -
(Excludes Utica and Upper Devonian locations)
Assumed | Producing | Undrilled | ||
Area | Lateral Length | Locations(1) | Locations(2) | |
SW Marcellus - Liquids areas | ~350,000 | 10,000 ft. | 480 | 2,600 |
SW Marcellus – Dry area | ~110,000 | 10,000 ft. | 220 | 500 |
Total | ~460,000 | 700 | ~3,100 |
(1) Producing locations adjusted to 10,000 foot equivalent
(2) Includes anticipated down-spacing activity
Guidance – 2021
Capital & Production Guidance
Range’s 2021 all-in capital budget is
Full Year 2021 Expense Guidance
Direct operating expense: | |
Transportation, gathering, processing and compression expense: | |
Production tax expense: | |
Exploration expense: | |
G&A expense: | |
Interest expense: | |
DD&A expense: | |
Net brokered gas marketing expense: |
Full Year 2021 Price Guidance
Based on current market indications, Range expects to average the following price differentials for its production in 2021.
Natural Gas:(1) | NYMEX minus |
Natural Gas Liquids (including ethane):(2) | |
Oil/Condensate: | WTI minus |
(1) Including basis hedging
(2) Weighting based on 53% ethane, 27% propane, 7% normal butane, 4% iso-butane and 9% natural gasoline.
Hedging Status
Range hedges portions of its expected future production volumes to increase the predictability of cash flow and to help maintain a strong, flexible financial position. As of
Range has also hedged Marcellus and other basis differentials for natural gas and NGL exports to limit volatility between benchmarks and regional prices. The combined fair value of the natural gas basis, NGL freight and spread hedges as of
Conference Call Information
A conference call to review the financial results is scheduled on
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
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). On its website, the Company provides additional comparative information on prior periods along with non-GAAP revenue disclosures.
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 income statement line 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 were historically 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 Annual Report on Form 10-K. 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.
Finding and development cost per unit is a non-GAAP metric used in the exploration and production industry by companies, investors and analysts. Drill-bit development cost per mcfe is based on estimated and unaudited drilling, development and exploration costs incurred divided by the total of reserve additions, performance and price revisions. These calculations do not include the future development costs required for the development of proved undeveloped reserves. This reserves metric may not be comparable to similarly titled measurements used by other companies. The
The reserve replacement ratio and finding and development cost per unit are statistical indicators that have limitations, including their predictive and comparative value. As an annual measure, the reserve replacement ratio can be limited because it may vary widely based on the extent and timing of new discoveries and the varying effects of changes in prices and well performance. In addition, since the reserve replacement ratio and finding and development cost per unit do not consider the cost or timing of future production of new reserves, such measures may not be an adequate measure of value creation.
We believe that the presentation of PV10 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, PV10 is based on prices and discount factors that are consistent for all companies. Because of this, PV10 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.
Included within this 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
The
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
Range Investor Contacts:
817-869-4267
lsando@rangeresources.com
Range Media Contacts:
724-873-3223
mwindle@rangeresources.com
STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
Based on GAAP reported earnings with additional | |||||||||||||||||||||||
details of items included in each line in Form 10-K | |||||||||||||||||||||||
(Unaudited, in thousands, except per share data) | |||||||||||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||||||||||
2020 | 2019 | % | 2020 | 2019 | % | ||||||||||||||||||
Revenues and other income: | |||||||||||||||||||||||
Natural gas, NGLs and oil sales (a) | $ | 444,806 | $ | 545,438 | $ | 1,607,713 | $ | 2,255,425 | |||||||||||||||
Derivative fair value income | 85,529 | 18,491 | 187,711 | 226,681 | |||||||||||||||||||
Brokered natural gas, marketing and other (b) | 67,771 | 41,524 | 171,622 | 344,372 | |||||||||||||||||||
ARO settlement loss (b) | (4 | ) | (2 | ) | (22 | ) | (13 | ) | |||||||||||||||
Other (b) | 784 | 153 | 1,673 | 1,150 | |||||||||||||||||||
Total revenues and other income | 598,886 | 605,604 | -1 | % | 1,968,697 | 2,827,615 | -30 | % | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Direct operating | 15,945 | 33,323 | 91,079 | 134,348 | |||||||||||||||||||
Direct operating – non-cash stock-based compensation (c) | 268 | 469 | 1,078 | 1,928 | |||||||||||||||||||
Transportation, gathering, processing and compression | 256,742 | 299,511 | 1,088,490 | 1,199,297 | |||||||||||||||||||
Production and ad valorem taxes | 3,935 | 8,963 | 24,617 | 37,967 | |||||||||||||||||||
Brokered natural gas and marketing | 69,053 | 46,199 | 186,900 | 358,036 | |||||||||||||||||||
Brokered natural gas and marketing – non-cash | |||||||||||||||||||||||
stock-based compensation (c) | 511 | 333 | 1,416 | 1,856 | |||||||||||||||||||
Exploration | 9,076 | 9,156 | 31,375 | 35,117 | |||||||||||||||||||
Exploration – non-cash stock-based compensation (c) | 388 | 194 | 1,279 | 1,566 | |||||||||||||||||||
Abandonment and impairment of unproved properties | 2,730 | 1,193,711 | 19,334 | 1,235,342 | |||||||||||||||||||
General and administrative | 31,307 | 30,269 | 123,859 | 137,694 | |||||||||||||||||||
General and administrative – non-cash stock-based | |||||||||||||||||||||||
compensation (c) | 8,834 | 7,500 | 32,905 | 35,061 | |||||||||||||||||||
General and administrative – lawsuit settlements | 579 | 542 | 2,251 | 2,577 | |||||||||||||||||||
General and administrative – rig release penalty | — | — | — | 1,436 | |||||||||||||||||||
General and administrative – bad debt expense | — | 4,482 | 400 | 4,341 | |||||||||||||||||||
Exit and termination costs | 13,739 | 4,535 | 545,244 | 7,535 | |||||||||||||||||||
Exit and termination costs – non-cash stock-based | |||||||||||||||||||||||
compensation (c) | 145 | 1,946 | 2,165 | 1,971 | |||||||||||||||||||
Deferred compensation plan (d) | 2,254 | 960 | 12,541 | (15,472 | ) | ||||||||||||||||||
Interest expense | 46,389 | 42,043 | 184,201 | 186,916 | |||||||||||||||||||
Interest expense – amortization of deferred financing costs (e) | 2,137 | 1,981 | 8,466 | 7,369 | |||||||||||||||||||
Gain on early extinguishment of debt | 25 | (2,430 | ) | (14,068 | ) | (5,415 | ) | ||||||||||||||||
Depletion, depreciation and amortization | 90,551 | 130,869 | 394,330 | 548,843 | |||||||||||||||||||
Impairment of proved property and other assets | — | 1,095,634 | 78,955 | 1,095,634 | |||||||||||||||||||
Loss (gain) on sale of assets | 1,652 | (407 | ) | (110,791 | ) | 30,256 | |||||||||||||||||
Total costs and expenses | 556,260 | 2,909,783 | -81 | % | 2,706,026 | 5,044,203 | -46 | % | |||||||||||||||
Income (loss) before income taxes | 42,626 | (2,304,179 | ) | 102 | % | (737,329 | ) | (2,216,588 | ) | 67 | % | ||||||||||||
Income tax (benefit) expense: | |||||||||||||||||||||||
Current | (157 | ) | 2,068 | (523 | ) | 6,147 | |||||||||||||||||
Deferred | 4,382 | (500,927 | ) | (25,029 | ) | (506,438 | ) | ||||||||||||||||
4,225 | (498,859 | ) | (25,552 | ) | (500,291 | ) | |||||||||||||||||
Net income (loss) | $ | 38,401 | $ | (1,805,320 | ) | 102 | % | $ | (711,777 | ) | $ | (1,716,297 | ) | 59 | % | ||||||||
Net Income (Loss) Per Common Share: | |||||||||||||||||||||||
Basic | $ | 0.16 | $ | (7.27 | ) | $ | (2.95 | ) | $ | (6.92 | ) | ||||||||||||
Diluted | $ | 0.15 | $ | (7.27 | ) | $ | (2.95 | ) | $ | (6.92 | ) | ||||||||||||
Weighted average common shares outstanding, as reported: | |||||||||||||||||||||||
Basic | 240,174 | 248,277 | -3 | % | 241,373 | 247,970 | -3 | % | |||||||||||||||
Diluted | 246,286 | 248,277 | -1 | % | 241,373 | 247,970 | -3 | % |
(a) | See separate natural gas, NGLs and oil sales information table. | |
(b) | Included in Brokered natural gas, marketing and other revenues in the 10-K. | |
(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-K. | ||
(d) | Reflects the change in market value of the vested Company stock held in the deferred compensation plan. | |
(e) | Included in interest expense in the 10-K. | |
BALANCE SHEETS | |||||||
(In thousands) | December 31, | December 31, | |||||
2020 | 2019 | ||||||
(Audited) | (Audited) | ||||||
Assets | |||||||
Current assets | $ | 266,508 | $ | 290,954 | |||
Derivative assets | 40,012 | 137,554 | |||||
Natural gas and oil properties, successful efforts method | 5,686,809 | 6,041,035 | |||||
Transportation and field assets | 4,161 | 5,375 | |||||
Operating lease right-of-use assets | 63,581 | 62,053 | |||||
Other | 75,865 | 75,432 | |||||
$ | 6,136,936 | $ | 6,612,403 | ||||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities | $ | 673,445 | $ | 551,032 | |||
Asset retirement obligations | 6,689 | 2,393 | |||||
Derivative liabilities | 26,707 | 13,119 | |||||
Bank debt | 693,123 | 464,319 | |||||
Senior notes | 2,329,745 | 2,659,844 | |||||
Senior subordinated notes | 17,384 | 48,774 | |||||
Total debt | 3,040,252 | 3,172,937 | |||||
Deferred tax liability | 135,267 | 160,196 | |||||
Derivative liabilities | 9,746 | 949 | |||||
Deferred compensation liability | 81,481 | 64,070 | |||||
Operating lease liabilities | 43,155 | 41,068 | |||||
Asset retirement obligations and other liabilities | 91,157 | 259,151 | |||||
Divestiture contract obligation | 391,502 | — | |||||
Common stock and retained deficit | 1,668,146 | 2,355,512 | |||||
Other comprehensive loss | (479 | ) | (788 | ) | |||
Common stock held in treasury stock | (30,132 | ) | (7,236 | ) | |||
Total stockholders’ equity | 1,637,535 | 2,347,488 | |||||
$ | 6,136,936 | $ | 6,612,403 |
RECONCILIATION OF TOTAL REVENUES AND OTHER INCOME TO TOTAL REVENUE EXCLUDING CERTAIN ITEMS, a non-GAAP measure | |||||||||||||||||||||||
(Unaudited, in thousands) | |||||||||||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||||||||||
2020 | 2019 | % | 2020 | 2019 | % | ||||||||||||||||||
Total revenues and other income, as reported | $ | 598,886 | $ | 605,604 | -1 | % | $ | 1,968,697 | $ | 2,827,615 | -30 | % | |||||||||||
Adjustment for certain special items: | |||||||||||||||||||||||
Total change in fair value related to derivatives | |||||||||||||||||||||||
prior to settlement (gain) loss | (68,143 | ) | 31,544 | 134,918 | (38,297 | ) | |||||||||||||||||
ARO settlement (gain) loss | 4 | 2 | 22 | 13 | |||||||||||||||||||
Total revenues, as adjusted, non-GAAP | $ | 530,747 | $ | 637,150 | -17 | % | $ | 2,103,637 | $ | 2,789,331 | -25 | % |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
(Unaudited in thousands) | |||||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Net income (loss) | $ | 38,401 | $ | (1,805,320 | ) | $ | (711,777 | ) | $ | (1,716,297 | ) | ||||||
Adjustments to reconcile net cash provided from continuing operations: | |||||||||||||||||
Deferred income tax benefit | 4,382 | (500,927 | ) | (25,029 | ) | (506,438 | ) | ||||||||||
Depletion, depreciation, amortization and impairment | 90,551 | 1,226,503 | 473,285 | 1,644,477 | |||||||||||||
Exploration dry hole and impairment costs | 888 | (11 | ) | 888 | (11 | ) | |||||||||||
Abandonment and impairment of unproved properties | 2,730 | 1,193,711 | 19,334 | 1,235,342 | |||||||||||||
Derivative fair value loss (income) | (85,529 | ) | (18,491 | ) | (187,711 | ) | (226,681 | ) | |||||||||
Cash settlements on derivative financial instruments | 17,386 | 50,035 | 322,629 | 188,384 | |||||||||||||
Divestiture contract obligation | 13,245 | — | 499,934 | — | |||||||||||||
Allowance for bad debts | — | 4,482 | 400 | 4,341 | |||||||||||||
Amortization of deferred issuance costs and other | 1,896 | 1,593 | 6,919 | 6,455 | |||||||||||||
Deferred and stock-based compensation | 10,172 | 10,481 | 48,552 | 24,891 | |||||||||||||
Loss (gain) on sale of assets and other | 1,652 | (407 | ) | (110,791 | ) | 30,256 | |||||||||||
Loss (gain) on early extinguishment of debt | 25 | (2,430 | ) | (14,068 | ) | (5,415 | ) | ||||||||||
Changes in working capital: | |||||||||||||||||
Accounts receivable | (66,804 | ) | (27,318 | ) | 24,539 | 214,196 | |||||||||||
Inventory and other | 6,796 | 8,544 | 1,010 | 4,520 | |||||||||||||
Accounts payable | 20,134 | (7,729 | ) | (32,686 | ) | (60,374 | ) | ||||||||||
Accrued liabilities and other | 33,781 | (304 | ) | (46,748 | ) | (155,803 | ) | ||||||||||
Net changes in working capital | (6,093 | ) | (26,807 | ) | (53,885 | ) | 2,539 | ||||||||||
Net cash provided from operating activities | $ | 89,706 | $ | 132,412 | $ | 268,680 | $ | 681,843 | |||||||||
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 |
Twelve Months Ended |
||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Net cash provided from operating activities, as reported | $ | 89,706 | $ | 132,412 | $ | 268,680 | $ | 681,843 | |||||||||
Net changes in working capital | 6,093 | 26,807 | 53,885 | (2,539 | ) | ||||||||||||
Exploration expense | 8,188 | 9,167 | 30,487 | 35,128 | |||||||||||||
Lawsuit settlements | 579 | 542 | 2,251 | 2,577 | |||||||||||||
Exit and termination costs – severance costs only | 271 | 4,535 | 5,908 | 7,535 | |||||||||||||
Accrued transportation contract release including accretion | 222 | — | 10,900 | — | |||||||||||||
One-time midstream termination payment | — | — | 28,500 | — | |||||||||||||
Rig release penalty | — | — | — | 1,436 | |||||||||||||
Non-cash compensation adjustment | 2,474 | 1,311 | 4,403 | 2,946 | |||||||||||||
Cash flow from operations before changes in working capital – non-GAAP measure | $ | 107,533 | $ | 174,774 | $ | 405,014 | $ | 728,926 | |||||||||
ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||||||||||||
(Unaudited, in thousands) | |||||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Basic: | |||||||||||||||||
Weighted average shares outstanding | 246,320 | 251,430 | 247,050 | 251,105 | |||||||||||||
Stock held by deferred compensation plan | (6,146 | ) | (3,153 | ) | (5,677 | ) | (3,135 | ) | |||||||||
Adjusted basic | 240,174 | 248,277 | 241,373 | 247,970 | |||||||||||||
Dilutive: | |||||||||||||||||
Weighted average shares outstanding | 246,320 | 251,430 | 247,050 | 251,105 | |||||||||||||
Dilutive stock options under treasury method | (34 | ) | (3,153 | ) | (5,677 | ) | (3,135 | ) | |||||||||
Adjusted dilutive | 246,286 | 248,277 | 241,373 | 247,970 | |||||||||||||
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 |
Twelve Months Ended |
|||||||||||||||||||||||
2020 | 2019 | % | 2020 | 2019 | % | |||||||||||||||||||
Natural gas, NGL and oil sales components: | ||||||||||||||||||||||||
Natural gas sales | $ | 264,646 | $ | 325,515 | $ | 943,740 | $ | 1,388,838 | ||||||||||||||||
NGL sales | 161,569 | 173,099 | 578,454 | 681,134 | ||||||||||||||||||||
Oil sales | 18,591 | 46,824 | 85,519 | 185,453 | ||||||||||||||||||||
Total oil and gas sales, as reported | $ | 444,806 | $ | 545,438 | -18 | % | $ | 1,607,713 | $ | 2,255,425 | -29 | % | ||||||||||||
Derivative fair value income (loss), as reported: | $ | 85,529 | $ | 18,491 | $ | 187,711 | $ | 226,681 | ||||||||||||||||
Cash settlements on derivative financial instruments – (gain) loss: | ||||||||||||||||||||||||
Natural gas | (13,753 | ) | (46,920 | ) | (258,797 | ) | (139,253 | ) | ||||||||||||||||
NGLs | 4,745 | (3,233 | ) | (11,288 | ) | (51,068 | ) | |||||||||||||||||
Crude Oil | (8,378 | ) | 118 | (52,544 | ) | 1,937 | ||||||||||||||||||
Total change in fair value related to derivatives prior to settlement, a non-GAAP measure | $ | 68,143 | $ | (31,544 | ) | $ | (134,918 | ) | $ | 38,297 | ||||||||||||||
Transportation, gathering, processing and compression components: | ||||||||||||||||||||||||
Natural gas | $ | 155,766 | $ | 185,273 | $ | 650,071 | $ | 740,061 | ||||||||||||||||
NGLs | 100,983 | 114,238 | 437,474 | 459,236 | ||||||||||||||||||||
Oil | (7 | ) | — | 945 | — | |||||||||||||||||||
Total transportation, gathering, processing and compression, as reported | $ | 256,742 | $ | 299,511 | $ | 1,088,490 | $ | 1,199,297 | ||||||||||||||||
Natural gas, NGL and oil sales, including cash-settled derivatives: (c) | ||||||||||||||||||||||||
Natural gas sales | $ | 278,399 | $ | 372,435 | $ | 1,202,537 | $ | 1,528,091 | ||||||||||||||||
NGL sales | 156,824 | 176,332 | 589,742 | 732,202 | ||||||||||||||||||||
Oil sales | 26,969 | 46,706 | 138,063 | 183,516 | ||||||||||||||||||||
Total | $ | 462,192 | $ | 595,473 | -22 | % | $ | 1,930,342 | $ | 2,443,809 | -21 | % | ||||||||||||
Production of oil and gas during the periods (a): | ||||||||||||||||||||||||
Natural gas (mcf) | 134,764,765 | 150,708,420 | -11 | % | 574,529,290 | 578,114,351 | -1 | % | ||||||||||||||||
NGL (bbl) | 8,965,697 | 9,879,081 | -9 | % | 37,491,546 | 38,850,130 | -3 | % | ||||||||||||||||
Oil (bbl) | 584,754 | 962,390 | -39 | % | 2,829,495 | 3,689,805 | -23 | % | ||||||||||||||||
Gas equivalent (mcfe) (b) | 192,067,471 | 215,757,246 | -11 | % | 816,455,536 | 833,353,961 | -2 | % | ||||||||||||||||
Production of oil and gas – average per day (a): | ||||||||||||||||||||||||
Natural gas (mcf) | 1,464,834 | 1,638,135 | -11 | % | 1,569,752 | 1,583,875 | -1 | % | ||||||||||||||||
NGL (bbl) | 97,453 | 107,381 | -9 | % | 102,436 | 106,439 | -4 | % | ||||||||||||||||
Oil (bbl) | 6,356 | 10,461 | -39 | % | 7,731 | 10,109 | -24 | % | ||||||||||||||||
Gas equivalent (mcfe) (b) | 2,087,690 | 2,345,187 | -11 | % | 2,230,753 | 2,283,162 | -2 | % | ||||||||||||||||
Average prices, excluding derivative settlements and before third party transportation costs: | ||||||||||||||||||||||||
Natural gas (mcf) | $ | 1.96 | $ | 2.16 | -9 | % | $ | 1.64 | $ | 2.40 | -32 | % | ||||||||||||
NGL (bbl) | $ | 18.02 | $ | 17.52 | 3 | % | $ | 15.43 | $ | 17.53 | -12 | % | ||||||||||||
Oil (bbl) | $ | 31.79 | $ | 48.65 | -35 | % | $ | 30.22 | $ | 50.26 | -40 | % | ||||||||||||
Gas equivalent (mcfe) (b) | $ | 2.32 | $ | 2.53 | -8 | % | $ | 1.97 | $ | 2.71 | -27 | % | ||||||||||||
Average prices, including derivative settlements before third party transportation costs: (c) | ||||||||||||||||||||||||
Natural gas (mcf) | $ | 2.07 | $ | 2.47 | -16 | % | $ | 2.09 | $ | 2.64 | -21 | % | ||||||||||||
NGL (bbl) | $ | 17.49 | $ | 17.85 | -2 | % | $ | 15.73 | $ | 18.85 | -17 | % | ||||||||||||
Oil (bbl) | $ | 46.12 | $ | 48.53 | -5 | % | $ | 48.79 | $ | 49.74 | -2 | % | ||||||||||||
Gas equivalent (mcfe) (b) | $ | 2.41 | $ | 2.76 | -13 | % | $ | 2.36 | $ | 2.93 | -19 | % | ||||||||||||
Average prices, including derivative settlements and after third party transportation costs: (d) | ||||||||||||||||||||||||
Natural gas (mcf) | $ | 0.91 | $ | 1.24 | -27 | % | $ | 0.96 | $ | 1.36 | -29 | % | ||||||||||||
NGL (bbl) | $ | 6.23 | $ | 6.29 | -1 | % | $ | 4.06 | $ | 7.03 | -42 | % | ||||||||||||
Oil (bbl) | $ | 46.13 | $ | 48.53 | -5 | % | $ | 48.46 | $ | 49.74 | -3 | % | ||||||||||||
Gas equivalent (mcfe) (b) | $ | 1.07 | $ | 1.37 | -22 | % | $ | 1.03 | $ | 1.49 | -31 | % | ||||||||||||
Transportation, gathering and compression expense per mcfe | $ | 1.34 | $ | 1.39 | -4 | % | $ | 1.33 | $ | 1.44 | -7 | % |
(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, processing and compression costs. | |
RECONCILIATION OF INCOME 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 |
Twelve Months Ended |
||||||||||||||||||||||
2020 | 2019 | % | 2020 | 2019 | % | ||||||||||||||||||
Income (loss) from operations before income taxes, as reported | $ | 42,626 | $ | (2,304,179 | ) | 102 | % | $ | (737,329 | ) | $ | (2,216,588 | ) | 67 | % | ||||||||
Adjustment for certain special items: | |||||||||||||||||||||||
Loss (gain) on sale of assets | 1,652 | (407 | ) | (110,791 | ) | 30,256 | |||||||||||||||||
Loss on ARO settlements | 4 | 2 | 22 | 13 | |||||||||||||||||||
Change in fair value related to derivatives prior to settlement | (68,143 | ) | 31,544 | 134,918 | (38,297 | ) | |||||||||||||||||
Abandonment and impairment of unproved properties | 2,730 | 1,193,711 | 19,334 | 1,235,342 | |||||||||||||||||||
Rig release penalty | — | — | — | 1,436 | |||||||||||||||||||
Loss (gain) on early extinguishment of debt | 25 | (2,430 | ) | (14,068 | ) | (5,415 | ) | ||||||||||||||||
Impairment of proved property and other assets | — | 1,095,634 | 78,955 | 1,095,634 | |||||||||||||||||||
Lawsuit settlements | 579 | 542 | 2,251 | 2,577 | |||||||||||||||||||
Exit and termination costs | 13,739 | 4,535 | 545,244 | 7,535 | |||||||||||||||||||
Exit and termination costs – non-cash stock-based compensation | 145 | 1,946 | 2,165 | 1,971 | |||||||||||||||||||
Brokered natural gas and marketing – non-cash stock-based compensation |
511 | 333 | 1,416 | 1,856 | |||||||||||||||||||
Direct operating – non-cash stock-based compensation | 268 | 469 | 1,078 | 1,928 | |||||||||||||||||||
Exploration expenses – non-cash stock-based compensation | 388 | 194 | 1,279 | 1,566 | |||||||||||||||||||
General & administrative – non-cash stock-based compensation | 8,834 | 7,500 | 32,905 | 35,061 | |||||||||||||||||||
Deferred compensation plan – non-cash adjustment | 2,254 | 960 | 12,541 | (15,472 | ) | ||||||||||||||||||
Income (loss) before income taxes, as adjusted | 5,612 | 30,354 | -82 | % | (30,080 | ) | 139,403 | -122 | % | ||||||||||||||
Income tax expense (benefit), as adjusted | |||||||||||||||||||||||
Current | (157 | ) | 2,068 | (523 | ) | 6,147 | |||||||||||||||||
Deferred (a) | 1,403 | 7,588 | (7,520 | ) | 34,867 | ||||||||||||||||||
Net income (loss) excluding certain items, a non-GAAP measure | $ | 4,366 | $ | 20,698 | -79 | % | $ | (22,037 | ) | $ | 98,389 | -122 | % | ||||||||||
Non-GAAP income (loss) per common share | |||||||||||||||||||||||
Basic | $ | 0.02 | $ | 0.08 | -75 | % | $ | (0.09 | ) | $ | 0.40 | -123 | % | ||||||||||
Diluted | $ | 0.02 | $ | 0.08 | -75 | % | $ | (0.09 | ) | $ | 0.40 | -123 | % | ||||||||||
Non-GAAP diluted shares outstanding, if dilutive | 246,286 | 248,889 | 241,373 | 249,054 |
(a) | Deferred taxes are estimated to be approximately 25% for 2020 and 2019. | |
RECONCILIATION OF NET INCOME (LOSS), EXCLUDING CERTAIN ITEMS AND ADJUSTED EARNINGS PER SHARE, non-GAAP measures |
|||||||||||||||
(In thousands, except per share data) | |||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income (loss), as reported | $ | 38,401 | $ | (1,805,320 | ) | $ | (711,777 | ) | $ | (1,716,297 | ) | ||||
Adjustment for certain special items: | |||||||||||||||
Loss (gain) on sale of assets | 1,652 | (407 | ) | (110,791 | ) | 30,256 | |||||||||
Loss (gain) on ARO settlements | 4 | 2 | 22 | 13 | |||||||||||
Gain on early extinguishment of debt | 25 | (2,430 | ) | (14,068 | ) | (5,415 | ) | ||||||||
Change in fair value related to derivatives prior to settlement | (68,143 | ) | 31,544 | 134,918 | (38,297 | ) | |||||||||
Impairment of proved property | — | 1,095,634 | 78,955 | 1,095,634 | |||||||||||
Abandonment and impairment of unproved properties | 2,730 | 1,193,711 | 19,334 | 1,235,342 | |||||||||||
Lawsuit settlements | 579 | 542 | 2,251 | 2,577 | |||||||||||
Rig release penalty | — | — | — | 1,436 | |||||||||||
Exit and termination costs | 13,739 | 4,535 | 545,244 | 7,535 | |||||||||||
Non-cash stock-based compensation | 10,146 | 10,442 | 38,843 | 42,382 | |||||||||||
Deferred compensation plan | 2,254 | 960 | 12,541 | (15,472 | ) | ||||||||||
Tax impact | 2,979 | (508,515 | ) | (17,509 | ) | (541,305 | ) | ||||||||
Net income (loss) excluding certain items, a non-GAAP measure | $ | 4,366 | $ | 20,698 | $ | (22,037 | ) | $ | 98,389 | ||||||
Net income (loss) per diluted share, as reported | $ | 0.15 | $ | (7.27 | ) | $ | (2.95 | ) | $ | (6.92 | ) | ||||
Adjustment for certain special items per diluted share: | |||||||||||||||
Loss (gain) on sale of assets | 0.01 | (0.00 | ) | (0.46 | ) | 0.12 | |||||||||
Loss (gain) on ARO settlements | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||
Loss (gain) on early extinguishment of debt | 0.00 | (0.01 | ) | (0.06 | ) | (0.02 | ) | ||||||||
Change in fair value related to derivatives prior to settlement | (0.28 | ) | 0.13 | 0.56 | (0.15 | ) | |||||||||
Impairment of proved property and other assets | — | 4.41 | 0.33 | 4.42 | |||||||||||
Abandonment and impairment of unproved properties | 0.01 | 4.81 | 0.08 | 4.98 | |||||||||||
Lawsuit settlements | 0.00 | 0.00 | 0.01 | 0.01 | |||||||||||
Rig release penalty | — | — | — | 0.01 | |||||||||||
Exit and termination costs | 0.06 | 0.02 | 2.26 | 0.03 | |||||||||||
Non-cash stock-based compensation | 0.04 | 0.04 | 0.16 | 0.17 | |||||||||||
Deferred compensation plan | 0.01 | 0.00 | 0.05 | (0.06 | ) | ||||||||||
Adjustment for rounding differences | 0.01 | — | — | (0.01 | ) | ||||||||||
Tax impact | 0.01 | (2.05 | ) | (0.07 | ) | (2.18 | ) | ||||||||
Net income (loss) per diluted share, excluding certain items, a non- | |||||||||||||||
GAAP measure | $ | 0.02 | $ | 0.08 | $ | (0.09 | ) | $ | 0.40 | ||||||
Adjusted earnings per share, a non-GAAP measure: | |||||||||||||||
Basic | $ | 0.02 | $ | 0.08 | $ | (0.09 | ) | $ | 0.40 | ||||||
Diluted | $ | 0.02 | $ | 0.08 | $ | (0.09 | ) | $ | 0.40 | ||||||
RECONCILIATION OF CASH MARGIN PER MCFE, a non- GAAP measure |
|||||||||||||||
(Unaudited, in thousands, except per unit data) | |||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues | |||||||||||||||
Natural gas, NGL and oil sales, as reported | $ | 444,806 | $ | 545,438 | $ | 1,607,713 | $ | 2,255,425 | |||||||
Derivative fair value income, as reported | 85,529 | 18,491 | 187,711 | 226,681 | |||||||||||
Less non-cash fair value (gain) loss | (68,143 | ) | 31,544 | 134,918 | (38,297 | ) | |||||||||
Brokered natural gas and marketing and other, as reported | 68,551 | 41,675 | 173,273 | 345,509 | |||||||||||
Less ARO settlement and other (gains) losses | (780 | ) | (151 | ) | (1,651 | ) | (1,137 | ) | |||||||
Cash revenue applicable to production | 529,963 | 636,997 | 2,101,964 | 2,788,181 | |||||||||||
Expenses | |||||||||||||||
Direct operating, as reported | 16,213 | 33,792 | 92,157 | 136,276 | |||||||||||
Less direct operating stock-based compensation | (268 | ) | (469 | ) | (1,078 | ) | (1,928 | ) | |||||||
Transportation, gathering and compression, as reported | 256,742 | 299,511 | 1,088,490 | 1,199,297 | |||||||||||
Production and ad valorem taxes, as reported | 3,935 | 8,963 | 24,617 | 37,967 | |||||||||||
Brokered natural gas and marketing, as reported | 69,564 | 46,532 | 188,316 | 359,892 | |||||||||||
Less brokered natural gas and marketing stock-based | |||||||||||||||
compensation | (511 | ) | (333 | ) | (1,416 | ) | (1,856 | ) | |||||||
General and administrative, as reported | 40,720 | 42,793 | 159,415 | 181,109 | |||||||||||
Less G&A stock-based compensation | (8,834 | ) | (7,500 | ) | (32,905 | ) | (35,061 | ) | |||||||
Less lawsuit settlements | (579 | ) | (542 | ) | (2,251 | ) | (2,577 | ) | |||||||
Less rig release penalty | — | — | — | (1,436 | ) | ||||||||||
Interest expense, as reported | 48,526 | 44,024 | 192,667 | 194,285 | |||||||||||
Less amortization of deferred financing costs | (2,137 | ) | (1,981 | ) | (8,466 | ) | (7,369 | ) | |||||||
Cash expenses | 423,371 | 464,790 | 1,699,546 | 2,058,599 | |||||||||||
Cash margin, a non-GAAP measure | $ | 106,592 | $ | 172,207 | $ | 402,418 | $ | 729,582 | |||||||
Mmcfe produced during period | 192,067 | 215,757 | 816,456 | 833,354 | |||||||||||
Cash margin per mcfe | $ | 0.55 | $ | 0.80 | $ | 0.49 | $ | 0.88 | |||||||
RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO CASH MARGIN |
|||||||||||||||
(Unaudited, in thousands, except per unit data) | |||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Income (loss) before income taxes, as reported | $ | 42,626 | $ | (2,304,179 | ) | $ | (737,329 | ) | $ | (2,216,588 | ) | ||||
Adjustments to reconcile income (loss) before income taxes to cash margin: |
|||||||||||||||
ARO settlements and other gains | (780 | ) | (151 | ) | (1,651 | ) | (1,137 | ) | |||||||
Derivative fair value (income) | (85,529 | ) | (18,491 | ) | (187,711 | ) | (226,681 | ) | |||||||
Net cash receipts on derivative settlements | 17,386 | 50,035 | 322,629 | 188,384 | |||||||||||
Exploration expense | 9,076 | 9,156 | 31,375 | 35,117 | |||||||||||
Lawsuit settlements | 579 | 542 | 2,251 | 2,577 | |||||||||||
Rig release penalty | — | — | — | 1,436 | |||||||||||
Exit and termination costs | 13,739 | 4,535 | 545,244 | 7,535 | |||||||||||
Deferred compensation plan | 2,254 | 960 | 12,541 | (15,472 | ) | ||||||||||
Stock-based compensation (direct operating, brokered natural gas and marketing, general and administrative and termination costs) |
10,146 | 10,442 | 38,843 | 42,382 | |||||||||||
Interest – amortization of deferred financing costs | 2,137 | 1,981 | 8,466 | 7,369 | |||||||||||
Depletion, depreciation and amortization | 90,551 | 130,869 | 394,330 | 548,843 | |||||||||||
Loss (gain) loss on sale of assets | 1,652 | (407 | ) | (110,791 | ) | 30,256 | |||||||||
Loss (gain) on early extinguishment of debt | 25 | (2,430 | ) | (14,068 | ) | (5,415 | ) | ||||||||
Impairment of proved property and other assets | — | 1,095,634 | 78,955 | 1,095,634 | |||||||||||
Abandonment and impairment of unproved properties | 2,730 | 1,193,711 | 19,334 | 1,235,342 | |||||||||||
Cash margin, a non-GAAP measure | $ | 106,592 | $ | 172,207 | $ | 402,418 | $ | 729,582 | |||||||
SEE WEBSITE FOR OTHER SUPPLEMENTAL INFORMATION
AND HEDGING DETAILS
Source: Range Resources Corporation