Range Announces Second Quarter 2024 Results

Jul 23, 2024 at 4:12 PM EDT

FORT WORTH, Texas, July 23, 2024 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its second quarter 2024 financial results.

Second Quarter 2024 Highlights –

  • Cash flow from operating activities of $149 million
  • Cash flow from operations, before working capital changes, of $237 million
  • Capital spending of $175 million, approximately 27% of the 2024 budget
  • Pre-hedge NGL realizations of $24.35 per barrel – premium of $1.26 over Mont Belvieu equivalent
  • Natural gas differentials, including basis hedging, averaged ($0.41) per mcf to NYMEX
  • Production averaged 2.15 Bcfe per day, approximately 69% natural gas
  • Repurchased ~$48 million face value of 2025 senior notes at a discount
  • Repurchased 600,000 shares at an average of $33.42 per share

“Our second quarter results demonstrate the resilience of Range’s business through cycles,” said Dennis Degner, CEO. “Safe and efficient operations, strong well performance, diversified marketing and thoughtful hedging allowed Range to deliver another quarter of free cash flow despite low natural gas prices. We remain constructive on the long-term outlook for natural gas and NGLs and with the strongest balance sheet in Company history, a low required reinvestment rate, and a durable high-quality inventory, Range is well positioned to generate competitive free cash flow and returns for decades.”  

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, taxes other than income, 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 2024 Results

GAAP revenues for second quarter 2024 totaled $530 million, GAAP net cash provided from operating activities (including changes in working capital) was $149 million, and GAAP net income was $29 million ($0.12 per diluted share).  Second quarter earnings results include a $17 million mark-to-market derivative gain due to decreases in commodity prices.

Non-GAAP revenues for second quarter 2024 totaled $641 million, and cash flow from operations before changes in working capital, a non-GAAP measure, was $237 million.  Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $111 million ($0.46 per diluted share) in second quarter 2024.

The following table details Range’s second quarter 2024 unit costs per mcfe(a):

Expenses   2Q 2024
(per mcfe)
  2Q 2023
(per mcfe)
    Increase
(Decrease)
               
Direct operating(a)   $ 0.11     $ 0.13       (15%)
Transportation, gathering, processing and compression(a)     1.44       1.42       1%
Taxes other than income     0.03       0.04       (25%)
General and administrative(a)     0.16       0.16       0%
Interest expense(a)     0.14       0.16       (13%)
Total cash unit costs(b)     1.88       1.90       (1%)
Depletion, depreciation and amortization (DD&A)     0.45       0.45       0%
Total unit costs plus DD&A(b)   $ 2.33     $ 2.35       (1%)

(a)   Excludes stock-based compensation, one-time settlements, and amortization of deferred financing costs.
(b)   Totals may not be exact due to rounding.

The following table details Range’s average production and realized pricing for second quarter 2024(a):

  2Q24 Production & Realized Pricing
    Natural Gas
(mcf)
  NGLs
(bbls)
  Oil
(bbls)
  Natural Gas
Equivalent
(mcfe)
                 
Net production per day     1,495,594       103,042       6,517       2,152,946  
                 
Average NYMEX price   $ 1.88     $ 23.09     $ 80.49      
Differential, including basis hedging     (0.41 )     1.26       (12.17 )    
Realized prices before NYMEX hedges     1.47       24.35       68.32       2.39  
Settled NYMEX hedges     1.00       0.21       (0.19 )     0.70  
Average realized prices after hedges   $ 2.47     $ 24.56     $ 68.12     $ 3.10  

(a)   Totals may not be exact due to rounding

Natural gas liquids and oil made up 30.5% of Range’s production in the second quarter, compared to 32% in first quarter 2024. Second quarter liquids production mix was slightly lower due to the timing of an NGL cargo, which was sold in early July.

Second quarter 2024 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $3.10 per mcfe.

  • The average natural gas price, including the impact of basis hedging, was $1.47 per mcf, or a ($0.41) per mcf differential to NYMEX. The Company continues to expect an average 2024 natural gas differential versus NYMEX to be within a range of ($0.40) to ($0.45) per mcf.
  • Range’s pre-hedge NGL price for the quarter was $24.35 per barrel, approximately $1.26 above the Mont Belvieu weighted equivalent. Given continued outperformance, Range is improving its full-year NGL price guidance to a range of Mont Belvieu equivalent plus $0.75 to $1.50 per barrel.
  • Condensate price realizations, before realized hedges, averaged $68.32 per barrel, or $12.17 below WTI (West Texas Intermediate). Range continues to expect the 2024 condensate differential to average $10.00-$13.00 below WTI.

Financial Position and Repurchase Activity

As of June 30, 2024, Range had net debt outstanding of approximately $1.47 billion, consisting of $1.72 billion of senior notes and $251 million in cash. During the second quarter, Range repurchased in the open market $47.9 million principal amount of 4.875% senior notes due 2025 at a discount, including $800,000 principal amount that was not settled until July and is included in accounts payable in the consolidated balance sheets.

During the second quarter, Range repurchased 600,000 shares at an average price of approximately $33.42, including 295,000 shares that traded in June and settled in July. The Company has approximately $1.1 billion of availability under the share repurchase program.

Capital Expenditures and Operational Activity

Second quarter 2024 drilling and completion expenditures were $162 million, including $13 million classified as exploration drilling. This reflects investments in subsurface technical analysis that will enhance the Company’s geologic models and capital efficiency.  In addition, during the quarter, approximately $14 million was invested in acreage.  First half 2024 capital spending represented approximately 53% of Range’s total capital budget in 2024. 

The table below summarizes expected 2024 activity regarding the number of wells to sales in each area.

    Wells TIL
1H 2024
  Remaining
2024
  2024
Planned TIL
SW PA Super-Rich   9   0   9
SW PA Wet   17   10   27
SW PA Dry   0   11   11
NE PA Dry   0   2   2
Total Wells   26   23   49
             

Guidance – 2024

Capital & Updated Production Guidance

Range’s 2024 all-in capital budget is $620 million - $670 million.

Range is targeting a maintenance production program in 2024, resulting in approximately flat production at 2.12 – 2.16 Bcfe per day, with more than 30% attributed to liquids production. Given strong well performance and continued optimization of gathering infrastructure, the Company now expects annual production to be near the high end of guidance.

Updated Full Year 2024 Expense Guidance

Direct operating expense: $0.11 - $0.13 per mcfe
Transportation, gathering, processing and compression expense: $1.45 - $1.55 per mcfe
Taxes other than income: $0.03 - $0.04 per mcfe
Exploration expense: $22 - $28 million
G&A expense: $0.17 - $0.18 per mcfe
Net interest expense: $0.13 - $0.14 per mcfe
DD&A expense: $0.45 - $0.46 per mcfe
Net brokered gas marketing expense: $8 - $12 million
   

Updated 2024 Price Guidance

Based on recent market indications, Range expects to average the following price differentials for its production.

FY 2024 Natural Gas:(1) NYMEX minus $0.40 to $0.45
FY 2024 Natural Gas Liquids (including ethane):(2) MB plus $0.75 to $1.50 per barrel
FY 2024 Oil/Condensate: WTI minus $10.00 to $13.00

(1) Including basis hedging.
(2) Mont Belvieu-equivalent pricing based on weighting of 53% ethane, 27% propane, 8% normal butane, 4% iso-butane and 8% natural gasoline.

Hedging Status

Range hedges portions of its expected future production volumes to increase the predictability of cash flow and to help improve and maintain a strong, flexible financial position. Please see the detailed hedging schedule posted on the Range website under Investor Relations - Financial Information.

Range also hedges natural gas basis differentials to limit volatility between benchmark and regional prices. The combined fair value of natural gas basis hedges as of June 30, 2024, was a net gain of $13.9 million.

Conference Call Information

A conference call to review the financial results is scheduled on Wednesday, July 24 at 8:00 AM Central Time (9:00 AM Eastern Time). Please click here to pre-register for the conference call and obtain a dial in number with passcode.

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 24th.

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 or Quarterly Reports on Form 10-K or 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.

We believe that the presentation of PV10 value of our proved reserves is a relevant and useful metric for 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 credit 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 natural gas and NGL producer with operations focused in the Appalachian Basin. The Company is headquartered in Fort Worth, Texas.  More information about Range can be found at www.rangeresources.com.

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 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. 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.

SOURCE: Range Resources Corporation

Range Investor Contact:

Laith Sando, Vice President – Investor Relations
817-869-4267
lsando@rangeresources.com

Range Media Contact:

Mark Windle, Director of Corporate Communications
724-873-3223
mwindle@rangeresources.com

 
RANGE RESOURCES CORPORATION
                                   
STATEMENT OF INCOME
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,  
  2024     2023     %     2024     2023     %  
Revenues and other income:                                  
Natural gas, NGLs and oil sales (a) $ 478,450     $ 468,382           $ 1,045,451     $ 1,204,664        
Derivative fair value income   16,808       123,734             63,406       491,701        
Brokered natural gas, marketing and other (b)   31,393       41,350             60,224       118,767        
ARO settlement loss (b)   -       -             (26 )     -        
Interest income (b)   3,376       1,780             6,319       2,737        
Other (b)   16       1,731             38       5,468        
Total revenues and other income   530,043       636,977       -17 %     1,175,412       1,823,337       -36 %
                                   
Costs and expenses:                                  
Direct operating   22,281       23,470             43,945       50,039        
Direct operating - stock-based compensation (c)   471       426             968       841        
Transportation, gathering, processing and compression   281,495       268,190             572,370       553,673        
Taxes other than income   4,974       6,993             10,342       14,887        
Brokered natural gas and marketing   33,513       44,340             64,408       110,747        
Brokered natural gas and marketing - stock-based compensation (c)   583       460             1,291       1,121        
Exploration   6,316       7,145             10,518       11,429        
Exploration - stock-based compensation (c)   335       303             659       623        
Abandonment and impairment of unproved properties   1,524       25,786             3,895       33,296        
General and administrative   31,372       30,363             65,144       63,785        
General and administrative - stock-based compensation (c)   8,482       8,415             18,460       18,015        
General and administrative - lawsuit settlements   287       748             478       872        
Exit costs   10,094       48,654             20,409       60,977        
Deferred compensation plan (d)   1,240       11,153             7,645       20,549        
Interest expense   28,356       29,769             57,472       60,626        
Interest expense - amortization of deferred financing costs (e)   1,357       1,348             2,717       2,693        
Gain on early extinguishment of debt   (179 )     (439 )           (243 )     (439 )      
Depletion, depreciation and amortization   87,598       85,016             174,735       171,578        
Gain on sale of assets   (66 )     (106 )           (153 )     (244 )      
Total costs and expenses   520,033       592,034       -12 %     1,055,060       1,175,068       -10 %
                                   
Income before income taxes   10,010       44,943       -78 %     120,352       648,269       -81 %
                                   
Income tax (benefit) expense                                  
Current   2,399       (300 )           3,981       2,399        
Deferred   (21,093 )     15,012             (4,471 )     134,192        
    (18,694 )     14,712             (490 )     136,591        
                                   
Net income $ 28,704     $ 30,231       -5 %   $ 120,842     $ 511,678       -76 %
                                   
                                   
Net income Per Common Share                                  
Basic $ 0.12     $ 0.12           $ 0.50     $ 2.10        
Diluted $ 0.12     $ 0.12           $ 0.49     $ 2.07        
                                   
Weighted average common shares outstanding, as reported                                  
Basic   241,125       238,970       1 %     240,815       238,497       1 %
Diluted   242,983       241,105       1 %     242,766       241,069       1 %
                                   
                                   
(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.
(e) Included in interest expense in the 10-Q.
 

 

 
RANGE RESOURCES CORPORATION
           
BALANCE SHEET          
(In thousands) June 30,     December 31,  
  2024     2023  
  (Unaudited)     (Audited)  
Assets          
Current assets $ 514,009     $ 528,794  
Derivative assets   261,397       442,971  
Natural gas and oil properties, successful efforts method   6,284,631       6,117,681  
Other property and equipment   2,167       1,696  
Operating lease right-of-use assets   128,537       23,821  
Other   75,482       88,922  
  $ 7,266,223     $ 7,203,885  
           
Liabilities and Stockholders' Equity          
Current liabilities $ 1,232,772     $ 580,469  
Asset retirement obligations   2,395       2,395  
Derivative liabilities   5,704       222  
           
Bank debt   -       -  
Senior notes $ 1,088,655       1,774,229  
Total debt   1,088,655       1,774,229  
           
Deferred tax liabilities   556,808       561,288  
Derivative liabilities   74       107  
Deferred compensation liabilities   60,116       72,976  
Operating lease liabilities   50,884       16,064  
Asset retirement obligations and other liabilities   122,042       119,896  
Divestiture contract obligation   285,745       310,688  
           
Common stock and retained deficit   4,319,292       4,213,585  
Other comprehensive income   616       647  
Common stock held in treasury   (458,880 )     (448,681 )
Total stockholders' equity   3,861,028       3,765,551  
  $ 7,266,223     $ 7,203,885  
               

 

 
RECONCILIATION OF TOTAL REVENUES AND
OTHER INCOME TO TOTAL REVENUE AS
ADJUSTED, a non-GAAP measure
(Unaudited, in thousands)
  Three Months Ended June 30,     Six Months Ended June 30,  
  2024     2023     %     2024     2023     %  
                                   
Total revenues and other income, as reported $ 530,043     $ 636,977       -17 %   $ 1,175,412     $ 1,823,337       -36 %
Adjustment for certain special items:                                  
Total change in fair value related to derivatives                                  
prior to settlement loss (gain)   111,249       (47,148 )           187,024       (380,647 )      
ARO settlement loss   -       -             26       -        
Total revenues, as adjusted, non-GAAP $ 641,292     $ 589,829       9 %   $ 1,362,462     $ 1,442,690       -6 %
                                               

 

 
RANGE RESOURCES CORPORATION
                       
CASH FLOWS FROM OPERATING ACTIVITI ES
(Unaudited, in thousands)
                       
  Three Months Ended June 30,     Six Months Ended June 30,  
  2024     2023     2024     2023  
                       
Net income   28,704       30,231       120,842       511,678  
Adjustments to reconcile net cash provided from continuing operations:                      
Deferred income tax (benefit) expense   (21,093 )     15,012       (4,471 )     134,192  
Depletion, depreciation and amortization   87,598       85,016       174,735       171,578  
Abandonment and impairment of unproved properties   1,524       25,786       3,895       33,296  
Derivative fair value income   (16,808 )     (123,734 )     (63,406 )     (491,701 )
Cash settlements on derivative financial instruments   128,057       76,586       250,430       111,054  
Divestiture contract obligation, including accretion   10,062       48,559       20,329       60,774  
Allowance for bad debts   -       -       -       -  
Amortization of deferred financing costs and other   1,193       1,284       2,425       2,594  
Deferred and stock-based compensation   11,122       20,722       29,337       41,403  
Gain on sale of assets   (66 )     (106 )     (153 )     (244 )
Gain on early extinguishment of debt   (179 )     (439 )     (243 )     (439 )
                       
Changes in working capital:                      
Accounts receivable   (30,541 )     92,768       76,913       317,981  
Other current assets   (13,461 )     2,337       (22,405 )     (2,998 )
Accounts payable   (17,906 )     (65,322 )     (5,718 )     (76,143 )
Accrued liabilities and other   (19,431 )     (82,111 )     (101,805 )     (211,479 )
Net changes in working capital   (81,339 )     (52,328 )     (53,015 )     27,361  
Net cash provided from operating activities   148,775       126,589       480,705       601,546  
                       
                       
                       
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,  
  2024     2023     2024     2023  
Net cash provided from operating activities, as reported $ 148,775     $ 126,589     $ 480,705     $ 601,546  
Net changes in working capital   81,339       52,328       53,015       (27,361 )
Exploration expense   6,316       7,145       10,518       11,429  
Lawsuit settlements   287       748       478       872  
Non-cash compensation adjustment and other   185       194       84       48  
Cash flow from operations before changes in working capital - non-GAAP measure $ 236,902     $ 187,004     $ 544,800     $ 586,534  
                       
                       
                       
ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING
(Unaudited, in thousands)
  Three Months Ended June 30,     Six Months Ended June 30,  
  2024     2023     2024     2023  
Basic:                      
Weighted average shares outstanding   242,647       244,414       242,365       244,043  
Stock held by deferred compensation plan   (1,522 )     (5,444 )     (1,550 )     (5,546 )
Adjusted basic   241,125       238,970       240,815       238,497  
                       
Dilutive:                      
Weighted average shares outstanding   242,647       244,414       242,365       244,043  
Dilutive stock options under treasury method   336       (3,309 )     401       (2,974 )
Adjusted dilutive   242,983       241,105       242,766       241,069  
                               

 

 
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, PROCESSING AND
COMPRESSION FEES, a non-GAAP measure
(Unaudited, In thousands, except per unit data)
  Three Months Ended June 30,     Six Months Ended June 30,  
  2024     2023     %     2024     2023     %  
Natural gas, NGLs and Oil Sales components:                                  
Natural gas sales $ 209,652     $ 225,359           $ 481,127     $ 666,939        
NGLs sales   228,285       200,717             484,361       457,157        
Oil sales   40,513       42,306             79,963       80,568        
Total Natural Gas, NGLs and Oil Sales, as reported $ 478,450     $ 468,382       2 %   $ 1,045,451     $ 1,204,664       -13 %
                                   
Derivative Fair Value Income, as reported $ 16,808     $ 123,734           $ 63,406     $ 491,701        
Cash settlements on derivative financial instruments - (gain) loss:                                  
Natural gas   (126,194 )     (77,725 )           (247,107 )     (114,375 )      
NGLs   (1,978 )     -             (1,901 )     -        
Oil   115       1,139             (1,422 )     3,321        
Total change in fair value related to commodity derivatives prior to                                  
settlement, a non GAAP measure $ (111,249 )   $ 47,148           $ (187,024 )   $ 380,647        
                                   
Transportation, gathering, processing and compression components:                                  
Natural Gas $ 153,040     $ 142,121           $ 303,152     $ 294,710        
NGLs   128,077       125,815             268,351       258,527        
Oil   378       254             867       436        
Total transportation, gathering, processing and compression, as reported $ 281,495     $ 268,190           $ 572,370     $ 553,673        
                                   
Natural gas, NGL and Oil sales, including cash-settled derivatives: (c)                                  
Natural gas sales $ 335,846     $ 303,084           $ 728,234     $ 781,314        
NGLs sales   230,263       200,717             486,262       457,157        
Oil Sales   40,398       41,167             81,385       77,247        
Total $ 606,507     $ 544,968       11 %   $ 1,295,881     $ 1,315,718       -2 %
                                   
Production of natural gas, NGLs and oil during the periods (a):                                  
Natural Gas (mcf)   136,099,063       129,416,394       5 %     268,749,303       263,062,458       2 %
NGLs (bbls)   9,376,810       9,330,430       0 %     19,137,533       18,620,169       3 %
Oil (bbls)   593,020       658,249       -10 %     1,203,299       1,231,285       -2 %
Gas equivalent (mcfe) (b)   195,918,043       189,348,468       3 %     390,794,295       382,171,182       2 %
                                   
Production of natural gas, NGLs and oil - average per day (a):                                  
Natural Gas (mcf)   1,495,594       1,422,158       5 %     1,476,645       1,453,384       2 %
NGLs (bbls)   103,042       102,532       0 %     105,151       102,874       2 %
Oil (bbls)   6,517       7,234       -10 %     6,612       6,803       -3 %
Gas equivalent (mcfe) (b)   2,152,946       2,080,752       3 %     2,147,221       2,111,443       2 %
                                   
Average prices, excluding derivative settlements and before third-party                                  
transportation costs:                                  
Natural Gas (per mcf) $ 1.54     $ 1.74       -11 %   $ 1.79     $ 2.54       -30 %
NGLs (per bbl) $ 24.35     $ 21.51       13 %   $ 25.31     $ 24.55       3 %
Oil (per bbl) $ 68.32     $ 64.27       6 %   $ 66.45     $ 65.43       2 %
Gas equivalent (per mcfe) (b) $ 2.44     $ 2.47       -1 %   $ 2.68     $ 3.15       -15 %
                                   
Average prices, including derivative settlements before third-party                                  
transportation costs: (c)                                  
Natural Gas (per mcf) $ 2.47     $ 2.34       6 %   $ 2.71     $ 2.97       -9 %
NGLs (per bbl) $ 24.56     $ 21.51       14 %   $ 25.41     $ 24.55       4 %
Oil (per bbl) $ 68.12     $ 62.54       9 %   $ 67.63     $ 62.74       8 %
Gas equivalent (per mcfe) (b) $ 3.10     $ 2.88       8 %   $ 3.32     $ 3.44       -3 %
                                   
Average prices, including derivative settlements and after third-party                                  
transportation costs: (d)                                  
Natural Gas (per mcf) $ 1.34     $ 1.24       8 %   $ 1.58     $ 1.85       -15 %
NGLs (per bbl) $ 10.90     $ 8.03       36 %   $ 11.39     $ 10.67       7 %
Oil (per bbl) $ 67.48     $ 62.14       9 %   $ 66.91     $ 62.37       7 %
Gas equivalent (per mcfe) (b) $ 1.66     $ 1.46       14 %   $ 1.85     $ 1.99       -7 %
                                   
Transportation, gathering and compression expense per mcfe $ 1.44     $ 1.42       1 %   $ 1.47     $ 1.45       1 %
                                   
(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, processing and compression costs.
(d) Net of transportation, gathering, processing and compression costs.
 

 

 
RANGE RESOURCES CORPORATION
                                   
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 June 30,     Six Months Ended June 30,  
  2024     2023     %     2024     2023     %  
                                   
Income from operations before income taxes, as reported   10,010       44,943       -78 %     120,352       648,269       -81 %
Adjustment for certain special items:                                  
Gain on sale of assets   (66 )     (106 )           (153 )     (244 )      
ARO settlement loss   -       -             26       -        
Change in fair value related to derivatives prior to settlement   111,249       (47,148 )           187,024       (380,647 )      
Abandonment and impairment of unproved properties   1,524       25,786             3,895       33,296        
Gain on early extinguishment of debt   (179 )     (439 )           (243 )     (439 )      
Lawsuit settlements   287       748             478       872        
Exit costs   10,094       48,654             20,409       60,977        
Brokered natural gas and marketing - stock-based compensation   583       460             1,291       1,121        
Direct operating - stock-based compensation   471       426             968       841        
Exploration expenses - stock-based compensation   335       303             659       623        
General & administrative - stock-based compensation   8,482       8,415             18,460       18,015        
Deferred compensation plan - non-cash adjustment   1,240       11,153             7,645       20,549        
                                   
Income before income taxes, as adjusted   144,030       93,195       55 %     360,811       403,233       -11 %
                                   
Income tax expense (benefit), as adjusted                                  
Current (a)   2,399       (300 )           3,981       2,399        
Deferred (a)   30,728       21,735             79,006       90,345        
                                   
Net income, excluding certain items, a non-GAAP measure $ 110,903     $ 71,760       55 %   $ 277,824     $ 310,489       -11 %
                                   
Non-GAAP income per common share                                  
Basic $ 0.46     $ 0.30       53 %   $ 1.15     $ 1.30       -12 %
Diluted $ 0.46     $ 0.30       53 %   $ 1.14     $ 1.29       -12 %
                                   
Non-GAAP diluted shares outstanding, if dilutive   242,983       241,105             242,766       241,069        
                                   
                                   
(a) Taxes are estimated to be approximately 23% for 2023 and 2024.
 

 

 
RANGE RESOURCES CORPORATION
                       
RECONCILIATION OF NET INCOME, EXCLUDING
CERTAIN ITEMS AND ADJUSTED EARNINGS PER
SHARE, non-GAAP measures
(In thousands, except per share data)
  Three Months Ended June 30,     Six Months Ended June 30,  
  2024     2023     2024     2023  
                       
Net income, as reported $ 28,704     $ 30,231     $ 120,842     $ 511,678  
Adjustments for certain special items:                      
Gain on sale of assets   (66 )     (106 )     (153 )     (244 )
ARO settlement loss   -       -       26       -  
Gain on early extinguishment of debt   (179 )     (439 )     (243 )     (439 )
Change in fair value related to derivatives prior to settlement   111,249       (47,148 )     187,024       (380,647 )
Abandonment and impairment of unproved properties   1,524       25,786       3,895       33,296  
Lawsuit settlements   287       748       478       872  
Exit costs   10,094       48,654       20,409       60,977  
Stock-based compensation   9,871       9,604       21,378       20,600  
Deferred compensation plan   1,240       11,153       7,645       20,549  
Tax impact   (51,821 )     (6,723 )     (83,477 )     43,847  
                       
Net income, excluding certain items, a non-GAAP measure $ 110,903     $ 71,760     $ 277,824     $ 310,489  
                       
Net income per diluted share, as reported $ 0.12     $ 0.12     $ 0.49     $ 2.07  
Adjustments for certain special items per diluted share:                      
Gain on sale of assets   -       -       -       -  
ARO settlement loss   -       -       -       -  
Gain on early extinguishment of debt   -       -       -       -  
Change in fair value related to derivatives prior to settlement   0.46       (0.20 )     0.77       (1.58 )
Abandonment and impairment of unproved properties   0.01       0.11       0.02       0.14  
Lawsuit settlements   -       -       -       -  
Exit costs   0.04       0.20       0.08       0.25  
Stock-based compensation   0.04       0.04       0.09       0.09  
Deferred compensation plan   0.01       0.05       0.03       0.09  
Adjustment for rounding differences   (0.01 )     0.01       -       0.01  
Tax impact   (0.21 )     (0.03 )     (0.34 )     0.18  
Dilutive share impact (rabbi trust and other)   -       -       -       0.04  
                       
Net income per diluted share, excluding certain items, a non-
GAAP measure
$ 0.46     $ 0.30     $ 1.14     $ 1.29  
                       
Adjusted earnings per share, a non-GAAP measure:                      
Basic $ 0.46     $ 0.30     $ 1.15     $ 1.30  
Diluted $ 0.46     $ 0.30     $ 1.14     $ 1.29  
                               

 

 
RANGE RESOURCES CORPORATION
                       
RECONCILIATION OF CASH MARGIN PER MCFE, a non-
GAAP measure
(Unaudited, In thousands, except per unit data)
  Three Months Ended June 30,     Six Months Ended June 30,  
  2024     2023     2024     2023  
                       
Revenues                      
Natural gas, NGLs and oil sales, as reported $ 478,450     $ 468,382     $ 1,045,451     $ 1,204,664  
Derivative fair value income, as reported   16,808       123,734       63,406       491,701  
Less non-cash fair value loss (gain)   111,249       (47,148 )     187,024       (380,647 )
Brokered natural gas and marketing and other, as reported   34,785       44,861       66,555       126,972  
Less ARO settlement   -       -       26       -  
Cash revenues   641,292       589,829       1,362,462       1,442,690  
                       
Expenses                      
Direct operating, as reported   22,752       23,896       44,913       50,880  
Less direct operating stock-based compensation   (471 )     (426 )     (968 )     (841 )
Transportation, gathering and compression, as reported   281,495       268,190       572,370       553,673  
Taxes other than income, as reported   4,974       6,993       10,342       14,887  
Brokered natural gas and marketing, as reported   34,096       44,800       65,699       111,868  
Less brokered natural gas and marketing stock-based compensation   (583 )     (460 )     (1,291 )     (1,121 )
General and administrative, as reported   40,141       39,526       84,082       82,672  
Less G&A stock-based compensation   (8,482 )     (8,415 )     (18,460 )     (18,015 )
Less lawsuit settlements   (287 )     (748 )     (478 )     (872 )
Interest expense, as reported   29,713       31,117       60,189       63,319  
Less amortization of deferred financing costs   (1,357 )     (1,348 )     (2,717 )     (2,693 )
Cash expenses   401,991       403,125       813,681       853,757  
                       
Cash margin, a non-GAAP measure $ 239,301     $ 186,704     $ 548,781     $ 588,933  
                       
Mmcfe produced during period   195,918       189,348       390,794       382,171  
                       
Cash margin per mcfe $ 1.22     $ 0.99     $ 1.40     $ 1.54  
                       
                       
RECONCILIATION OF INCOME BEFORE TAXES
TO CASH MARGIN, a non-GAAP measure
(Unaudited, in thousands, except per unit data)
  Three Months Ended June 30,     Six Months Ended June 30,  
  2024     2023     2024     2023  
                       
                       
Income before income taxes, as reported $ 10,010     $ 44,943     $ 120,352     $ 648,269  
Adjustments to reconcile income before income taxes                      
to cash margin:                      
ARO settlements   -       -       26       -  
Derivative fair value income   (16,808 )     (123,734 )     (63,406 )     (491,701 )
Net cash receipts on derivative settlements   128,057       76,586       250,430       111,054  
Exploration expense   6,316       7,145       10,518       11,429  
Lawsuit settlements   287       748       478       872  
Exit costs   10,094       48,654       20,409       60,977  
Deferred compensation plan   1,240       11,153       7,645       20,549  
Stock-based compensation (direct operating, brokered natural gas and   9,871       9,604       21,378       20,600  
marketing and general and administrative)                      
Interest - amortization of deferred financing costs   1,357       1,348       2,717       2,693  
Depletion, depreciation and amortization   87,598       85,016       174,735       171,578  
Gain on sale of assets   (66 )     (106 )     (153 )     (244 )
Gain on early extinguishment of debt   (179 )     (439 )     (243 )     (439 )
Abandonment and impairment of unproved properties   1,524       25,786       3,895       33,296  
Cash margin, a non-GAAP measure $ 239,301     $ 186,704     $ 548,781     $ 588,933  
                               

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Source: Range Resources Corporation