1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K (MARK ONE) [x] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transaction period from to -------------- ---------------------- Commission file number 1-12209 -------------- RANGE RESOURCES CORPORATION 401(k) PLAN AND TRUST 500 THROCKMORTON STREET, FT. WORTH, TEXAS 76102 (Address of principal executive offices) (Zip Code)
2 INDEPENDENT AUDITORS' REPORT Range Resources Corporation 401(k) Plan Hartville, Ohio We have audited the financial statements of RANGE RESOURCES CORPORATION 401(k) PLAN as of December 31, 1998 and 1997, and for the years then ended, and the supplemental schedules as of and for the year ended December 31, 1998 as listed in the accompanying index. These financial statements and schedules are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements, referred to above, of Range Resources Corporation 401(k) Plan present fairly, in all material respects, the net assets available for benefits of Range Resources Corporation Plan as of December 31, 1998 and 1997 and the changes in net assets available for benefits for the years then ended in conformity with generally accepted accounting principles. Our audit of the Plan's financial statements was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental schedules of assets held for investment purposes and reportable transactions as of and for the year ended December 31, 1998 are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. MEADEN & MOORE, LTD. Certified Public Accountants June 10, 1999 Cleveland, Ohio
3 STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS Range Resources Corporation 401(k) Plan December 31, 1998 1997 ---------- ---------- Investments Prime Money Market Fund $ - $ 508,919 One Group Income Bond Fund - 484,001 One Group Income Equity Fund - 2,098,015 Lomak Corporation common stock - 525,167 Fidelity Blue Chip Growth Fund - 377,455 Fidelity Contrafund - 264,752 Fidelity Growth Company Fund - 298,417 Fidelity Retirement Growth Fund - 128,763 Fidelity Overseas Fund - 53,378 Fidelity U.S. Equity Index - 139,036 Merrill Lynch Institutional Fund 14,037 - Range Resources Corporation common stock 250,653 - Merrill Lynch Retirement Preservation Trust 788,511 - Aim Balanced Fund 800 - Merrill Lynch Growth Fund Class D 383,565 - Oppenheimer Global Growth 13 - Merrill Lynch Corporate Bond Fund Intermediate Class D 468,415 - Federated High Income Bond Fund Class A 1,708 - Merrill Lynch Corporate Bond Fund Intermediate Class D-GM 26 - Mass Investors Trust 1,074 - Mass Investors Trust-GM 70 - Aim Blue Chip Fund Class A 5,849 - Davis New York Venture Fund 1,430,304 - Merrill Lynch S&P 500 Index 265,063 - Lord Abbett Development Growth Class P 73 - Managers International Equity Fund 89 - Gam International Fund Class A 103,851 - Aim Income Fund Class A 12 - Gam International Fund Class A 74 - Oppenheimer Global Fund 1,930 - Alliance Quasar Fund Class A 2,959 - Pioneer Growth Shares 3,544 - MFS Capital Opportunity Fund Class A 2,054 - Merrill Lynch Capital Fund Class D 2,110,087 - Cash 17,389 - Participant notes receivable 101,235 86,118 ---------- ---------- Total Investments 5,953,385 4,964,021 Receivables: Interest _ 7,320 Employer's contribution 613,598 697,222 Participants contribution 42,669 26,495 Other - 1,048 ---------- ---------- Total Receivables 656,267 732,085 ---------- ---------- Total Assets 6,609,652 5,696,106 ---------- ---------- LIABILITIES - - ---------- ---------- Net Assets $6,609,652 $5,696,106 ========== ========== See accompanying notes. -3-
4 STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Range Resources Corporation 401(k) Plan For the Year Ended December 31, 1998 Prime One Group One Group Money Income Income Total Market Fund Bond Fund Equity Fund ----------- ----------- ----------- ----------- INCOME: Investment Income: Interest $ 37,926 $ 11,934 $ 204 $ 260 Dividends 251,031 -- 20,427 7,259 Realized gains (losses) 40,267 -- 1,664 228,281 Unrealized gains (losses) (717,587) -- -- -- ----------- ----------- ----------- ----------- (388,363) 11,934 22,295 235,800 Contributions: Participant 912,833 46,487 27,361 83,355 Employer 620,545 -- -- -- Rollover 138,369 11,469 2,442 10,477 ----------- ----------- ----------- ----------- 1,671,747 57,956 29,803 93,832 ----------- ----------- ----------- ----------- Total Income 1,283,384 69,890 52,098 329,632 DEDUCTIONS: Withdrawals and terminations (398,057) (243,609) (3,017) -- Net loan activity (966) -- -- -- Administrative expenses (44,915) (13,903) (3,564) (12,434) ----------- ----------- ----------- ----------- Total Deductions (443,938) (257,512) (6,581) (12,434) ----------- ----------- ----------- ----------- Increase (Decrease) before transfers 839,446 (187,622) 45,517 317,198 Asset transfers 74,927 (495,482) (463,360) (2,301,301) Other (827) -- -- -- Interfund transfers -- 179,850 (160,749) (123,547) ----------- ----------- ----------- ----------- Net Increase (Decrease) 913,546 (503,254) (578,592) (2,107,650) Beginning Net Assets 5,696,106 503,254 578,592 2,107,650 ----------- ----------- ----------- ----------- Ending Net Assets $ 6,609,652 $ -- $ -- $ -- =========== =========== =========== =========== See accompanying notes. -4-
5 Lomak Fidelity Fidelity Corporation Blue Chip Growth Fidelity Fidelity Common Growth Fidelity Company Retirement Overseas Fidelity U.S. Stock Fund Contrafund Fund Growth Fund Fund Equity Index - ----------- ---------- --------- --------- --------- -------- --------- $ 286 $ 184 $ 81 $ 54 $ 43 $ 26 $ 31 4,465 - - - - - 1,203 (399,365) 78,120 52,154 45,513 33,212 9,882 24,711 - - - - - - - - ----------- ---------- --------- --------- --------- -------- --------- (394,614) 78,304 52,235 45,567 33,255 9,908 24,945 67,220 52,896 37,593 27,386 13,053 12,532 15,345 6,947 - - - - - - 33,184 45,066 4,657 4,657 14,285 - 2,179 - ----------- ---------- --------- --------- --------- -------- --------- 107,351 97,962 42,250 32,043 27,338 12,532 17,524 - ----------- ---------- --------- --------- --------- -------- --------- (287,263) 176,266 94,485 77,610 60,593 22,440 43,469 - - - - - - - - - - - - - - (5,597) (2,680) (1,888) (1,913) (1,004) (516) (1,416) - ----------- ---------- --------- --------- --------- -------- --------- (5,597) (2,680) (1,888) (1,913) (1,004) (516) (1,416) - ----------- ---------- --------- --------- --------- -------- --------- (292,860) 173,586 92,597 75,697 59,589 21,924 42,053 (801,211) (583,770) (394,053) (384,982) (205,934) (90,559) (187,774) - - - - - - - (139,668) 29,245 34,049 9,194 16,464 14,742 5,061 - ----------- ---------- --------- --------- --------- -------- --------- (1,233,739) (390,939) (267,407) (300,091) (129,881) (53,893) (140,660) 1,233,739 390,939 267,407 300,091 129,881 53,893 140,660 - ----------- ---------- --------- --------- --------- -------- --------- $ - $ - $ - $ - $ - $ - $ - =========== ========== ========= ========= ========= ======== ========= -5-
6 Range Merrill Lynch Merrill Resources Merrill Lynch Corporate Lynch Corporation Retirement Aim Merrill Lynch Oppenheimer Bond Fund Institutional Common Preservation Balanced Growth Fund Global Intermediate Fund Stock Trust Fund Class D Growth Class D - --------- --------- --------- --------- --------- --------- --------- $ -- $ 6,798 $ 745 $ -- $ 392 $ -- $ 2,875 55 623 19,579 7 6,090 -- 13,706 -- (20,459) -- -- (4,504) -- 227 -- (485,460) -- 37 (68,741) -- 2,218 - --------- --------- --------- --------- --------- --------- --------- 55 (498,498) 20,324 44 (66,763) -- 19,026 70 49,488 90,284 12 56,242 13 30,515 -- -- -- -- -- -- -- -- 498 -- -- 4,976 -- -- - --------- --------- --------- --------- --------- --------- --------- 70 49,986 90,284 12 61,218 13 30,515 - --------- --------- --------- --------- --------- --------- --------- 125 (448,512) 110,608 56 (5,545) 13 49,541 -- (8,773) (17,101) -- (10,955) -- (29,097) -- 1,845 1,817 -- 834 -- 2,198 -- -- -- -- -- -- -- - --------- --------- --------- --------- --------- --------- --------- -- (6,928) (15,284) -- (10,121) -- (26,899) - --------- --------- --------- --------- --------- --------- --------- 125 (455,440) 95,324 56 (15,666) 13 22,642 -- 684,165 701,279 -- 411,785 -- 444,747 -- -- 217 -- -- -- -- 13,912 21,928 (8,309) 744 (12,554) -- 1,026 - --------- --------- --------- --------- --------- --------- --------- 14,037 250,653 788,511 800 383,565 13 468,415 -- -- -- -- -- -- -- - --------- --------- --------- --------- --------- --------- --------- $ 14,037 $ 250,653 $ 788,511 $ 800 $ 383,565 $ 13 $ 468,415 ========= ========= ========= ========= ========= ========= ========= -6-
7 Merrill Lynch Federated Corporate High Income Bond Fund Mass Mass Aim Blue Davis New Merrill Lynch Bond Fund Intermediate Investors Investors Chip Fund York Venture S&P 500 Class A Class D-GM Trust Trust-GM Class A Fund Index - ----------- ----------- ----------- ----------- ----------- ----------- ----------- $ -- $ -- $ -- $ -- $ -- $ 12,149 $ 217 4 -- -- -- 16 32,688 11,550 -- -- -- -- -- (797) 51 (2) -- 14 2 418 25,236 8,116 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- 2 -- 14 2 434 69,276 19,934 28 26 70 68 1260 118,612 35,132 -- -- -- -- -- -- -- -- -- -- -- -- -- 4,479 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- 28 26 70 68 1,260 118,612 39,611 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- 30 26 84 70 1,694 187,888 59,545 -- -- -- -- -- (20,056) (8,534) -- -- -- -- -- 2,372 572 -- -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- (17,684) (7,962) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- 30 26 84 70 1,694 170,204 51,583 -- -- -- -- -- 1,285,150 187,577 -- -- -- -- -- -- -- 1,678 -- 990 -- 4,155 (25,050) 25,903 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- 1,708 26 1,074 70 5,849 1,430,304 265,063 -- -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- $ 1,708 $ 26 $ 1,074 $ 70 $ 5,849 $ 1,430,304 $ 265,063 =========== =========== =========== =========== =========== =========== =========== -7-
8 Lord Abbett Managers Gam Gam Oppenheimer Alliance Dev. Growth International International Aim Income International Global Quasar Fund Class P Equity Fund Fund Class A Fund Class A Fund Class A Fund Class A - ----------- ------------- ------------- ------------- -------------- ------------ ----------- $ -- $ -- $ 71 $ -- $ -- $ -- $ -- -- 6 1,402 -- -- 141 100 -- -- (590) -- -- -- (1) 5 3 (8,932) -- 2 (44) 270 - --------- --------- --------- --------- --------- --------- --------- 5 9 (8,049) -- 2 97 369 68 80 19,476 12 72 12 2,681 -- -- -- -- -- -- -- -- -- -- -- -- -- -- - --------- --------- --------- --------- --------- --------- --------- 68 80 19,476 12 72 12 2,681 - --------- --------- --------- --------- --------- --------- --------- 73 89 11,427 12 74 109 3,050 -- -- (1,460) -- -- -- (91) -- -- 186 -- -- -- -- -- -- -- -- -- -- -- - --------- --------- --------- --------- --------- --------- --------- -- -- (1,274) -- -- -- (91) - --------- --------- --------- --------- --------- --------- --------- 73 89 10,153 12 74 109 2,959 -- -- 94,315 -- -- -- -- -- -- -- -- -- -- -- -- -- (617) -- -- 1,821 -- - --------- --------- --------- --------- --------- --------- --------- 73 89 103,851 12 74 1,930 2,959 -- -- -- -- -- -- -- - --------- --------- --------- --------- --------- --------- --------- $ 73 $ 89 $ 103,851 $ 12 $ 74 $ 1,930 $ 2,959 ========= ========= ========= ========= ========= ========= ========= -8-
9 Pioneer MFS Capital Merrill Lynch Participants Growth Opportunity Capital Fund Notes Contributions Shares Fund Class A Class D Receivable Cash Receivable - ----------- ----------- ----------- ----------- ----------- ----------- $ -- $ -- $ 1,576 $ -- $ -- $ -- -- -- 131,710 -- -- -- -- -- (7,832) -- -- -- 59 42 (190,830) -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- 59 42 (65,376) -- -- -- 106 32 82,577 -- -- 42,669 -- -- -- -- -- 613,598 -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- 106 32 82,577 -- -- 656,267 - ----------- ----------- ----------- ----------- ----------- ----------- 165 74 17,201 -- -- 656,267 -- -- (52,762) (2,602) -- -- -- -- 4,772 (14,911) (651) -- -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- -- -- (47,990) (17,513) (651) -- - ----------- ----------- ----------- ----------- ----------- ----------- 165 74 (30,789) (17,513) (651) 656,267 -- -- 2,155,102 -- 19,233 -- -- -- 297 -- (1,341) -- 3,379 1,980 (14,523) 118,748 148 -- - ----------- ----------- ----------- ----------- ----------- ----------- 3,544 2,054 2,110,087 101,235 17,389 656,267 -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- $ 3,544 $ 2,054 $ 2,110,087 $ 101,235 $ 17,389 $ 656,267 =========== =========== =========== =========== =========== =========== -9-
10 STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Range Resources Corporation 401(k) Plan For the Year Ended December 31, 1997 Prime One Group One Group Money Income Income Total Market Fund Bond Fund Equity Fund ----------- ----------- ----------- ----------- INCOME: Investment Income: Interest $ 71,423 $ 26,652 $ 39,877 $ 1,440 Dividends 27,196 -- -- 18,311 Realized gains (losses) 405,554 -- (409) 326,646 Unrealized gains (losses) 176,368 -- (233) 215,181 ----------- ----------- ----------- ----------- 680,541 26,652 39,235 561,578 Contributions: Participant 637,433 90,280 59,866 184,660 Employer 697,222 -- -- -- Rollover 237,678 26,012 32,085 32,559 ----------- ----------- ----------- ----------- 1,572,333 116,292 91,951 217,219 ----------- ----------- ----------- ----------- Total Income 2,252,874 142,944 131,186 778,797 DEDUCTIONS: Withdrawals and terminations (273,262) (117,540) (8,896) (76,575) Administrative expenses (34,501) (14,108) (3,832) (12,107) ----------- ----------- ----------- ----------- Total Deductions (307,763) (131,648) (12,728) (88,682) ----------- ----------- ----------- ----------- 1,945,111 11,296 118,458 690,115 Intrafund transfers -- (18,663) (223,584) (612,259) ----------- ----------- ----------- ----------- Net Increase (Decrease) 1,945,111 (7,367) (105,126) 77,856 Beginning Net Assets 3,750,995 510,621 683,718 2,029,794 ----------- ----------- ----------- ----------- Ending Net Assets $ 5,696,106 $ 503,254 $ 578,592 $ 2,107,650 =========== =========== =========== =========== See accompanying notes. -10-
11 Fidelity Fidelity Lomak Blue Chip Growth Fidelity Fidelity Common Growth Fidelity Company Retirement Overseas Fidelity U.S. Stock Fund Contrafund Fund Growth Fund Fund Equity Index - ----------- ----------- ----------- ----------- ----------- ----------- ----------- $ 2,015 $ 415 $ 283 $ 386 $ 141 $ 50 $ 164 2,163 931 1,799 1,362 811 526 1,293 1,953 6,669 19,895 26,463 21,279 1,731 1,327 (32,514) 10,363 1,653 (12,359) (13,731) (3,083) 11,091 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- (26,383) 18,378 23,630 15,852 8,500 (776) 13,875 98,934 55,890 52,652 39,154 17,092 14,926 23,979 697,222 -- -- -- -- -- -- 26,101 52,677 9,286 9,286 -- 34,372 15,300 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- 822,257 108,567 61,938 48,440 17,092 49,298 39,279 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- 795,874 126,945 85,568 64,292 25,592 48,522 53,154 (56,915) (759) (427) (1,446) (106) (45) (10,553) (3,195) (354) (271) (346) (170) (48) (70) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- (60,110) (1,113) (698) (1,792) (276) (93) (10,623) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- 735,764 125,832 84,870 62,500 25,316 48,429 42,531 (28,887) 255,108 182,538 237,591 104,564 5,463 98,129 - ----------- ----------- ----------- ----------- ----------- ----------- ----------- 706,877 380,940 267,408 300,091 129,880 53,892 140,660 526,862 -- -- -- -- -- -- - ----------- ----------- ----------- ----------- ----------- ----------- ----------- $ 1,233,739 $ 380,940 $ 267,408 $ 300,091 $ 129,880 $ 53,892 $ 140,660 =========== =========== =========== =========== =========== =========== =========== -11-
12 NOTES TO FINANCIAL STATEMENTS Range Resources Corporation 401(k) Plan December 31, 1998 and 1997 1. DESCRIPTION OF PLAN The following description of the Range Resources Corporation 401(k) Plan and Trust provides only general information. Participants should refer to the Plan agreement, copies of which are available from the plan administrator, for a more complete description of the Plan's provisions. GENERAL: The Plan, which began January 1, 1989, is a defined contribution plan covering all employees of the Company who have worked one thousand hours and are eighteen years of age or older. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The Plan was last restated August 25, 1998 to change the name from Lomak Petroleum, Inc. 401(k) Plan and Trust to Range Resources Corporation 401(k) Plan. CONTRIBUTIONS: Cash or Deferred Option Contributions 401(k) - Participants may contribute up to 15% of pretax annual compensation, as defined in the Plan. Integrated Contributions - Equal to 5.7% of each active participant's eligible compensation in excess of the social security taxable wage base. Company Discretionary Contribution - Each year, the Board of Directors determines the percentage of employees salaries which the Company will contribute. In 1998 and 1997, the Company contributed four and a half percent and six percent of employee's salaries. The contribution was in the form of Company stock. Company Discretionary Matching Contribution - At the discretion of the Board of Directors, the Company may elect to contribute a matching contribution based on the amounts of salary reduction of the participants. No matching contribution was made in 1998 or 1997. Contributions are subject to limitations on annual additions and other limitations imposed by the Internal Revenue Code as defined in the Plan agreement. PARTICIPANT ACCOUNTS: Each participant account is credited with the participant's elective contribution, employer contributions, earnings thereon, and is charged with an allocation of administrative expenses. Allocations are based on participant earnings or account balances as defined in the Plan. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account. -12-
13 NOTES TO FINANCIAL STATEMENTS 1. DESCRIPTION OF PLAN, CONTINUED TRUSTEE CHANGE: Effective July 1, 1998, Merrill Lynch is the trustee of the Plan. Prior to July 1, 1998, Bank One of Texas was the trustee. VESTING: Participants are immediately fully vested in their elective contributions plus actual earnings thereon. Vesting in the Company contribution portion of accounts plus actual earnings thereon is as follows: Years of Service Vested Percentage ---------------------- ----------------- Less than One (1) Year 0% One (1) Year 40% Two (2) Years 80% Three (3) or more Years 100% PARTICIPANT NOTES RECEIVABLE: Participants may borrow from their fund accounts up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. Loan terms range from one to five years. The loans are secured by the balance in the participant's account and bear interest at the Prime rate. Principal and interest is paid ratably through payroll deductions. RETIREMENT: Normal retirement age is 55 years. BENEFIT PAYMENTS: Benefit payments may be made in the form of lump-sum amounts, installment payments, or through the purchase of an annuity contract. The Plan does not allow in-service distributions. FORFEITURES: Forfeited balances of terminated participants' nonvested accounts are reallocated to the account balances of the remaining active participants. -13-
14 NOTES TO FINANCIAL STATEMENTS 1. DESCRIPTION OF PLAN, CONTINUED TERMINATION: Although it has not expressed any intention of doing so, the Company has the right to terminate the Plan at any time subject to the provisions of ERISA. In the event of Plan termination, all participants will become fully vested in their accounts and receive full distribution. ADMINISTRATIVE FEES: All administrative fees were paid by the Plan. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS: Investments are valued at fair market value. The Common Stock of Range Resources Corporation 401(k) Plan is valued at the last reported sales price on the last business day of the plan year. The net realized gain or loss on investments is the difference between the proceeds received upon the sale of investments and the market value of the investments as of the end of the preceding year or the average cost of those assets if acquired during the current year. Unrealized appreciation or depreciation of investments represents the increase or decrease in market value during the year. USE OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. 3. INVESTMENTS Participants may direct their 401(k) assets to be invested in any combination of investment funds and Range Resources Corporation stock. Descriptions of these funds are as follows: PRIME MONEY MARKET FUND The Prime Money Market fund can include both corporate notes and securities issued or backed by the U.S. Government or its agencies. Investment option terminated in 1998. -14-
15 NOTES TO FINANCIAL STATEMENTS 3. INVESTMENTS, CONTINUED ONE GROUP INCOME BOND FUND The One Group Income Bond Fund is designed to blend the safety and high quality of government securities with the yield advantage of corporate bonds. The government component of the Fund is invested in securities backed by the full faith and credit of the U.S. Government or its agencies. The portfolio's corporate component generally consists of high- and medium-quality bonds that are rated the equivalent of "investment grade" by Standard & Poor's or Moody's Investors Service and typically pay higher yields than government bonds. By maintaining an average weighted maturity of 5 to 20 years, the Fund also attempts to capture the yield advantage of longer-term bonds while seeking to limit price fluctuations. Investment option terminated in 1998. ONE GROUP INCOME EQUITY FUND The One Group Income Equity Fund seeks to invest in corporations that are able to provide strong, consistent dividend returns to achieve monthly income. These types of companies are usually large and stable and enjoy a prominent status in their particular industries. On the other hand, highly-leveraged and fast-paced growth companies are not likely candidates for the Fund. Investment option terminated in 1998. RANGE RESOURCES CORPORATION'S COMMON STOCK No more than 50% of employees contributions may be invested in Range Resources Corporation common stock. FIDELITY BLUE CHIP GROWTH FUND The fund seeks growth of capital over the long term by investing primarily in a diversified portfolio of common stocks of well-known and established companies. Investment option terminated in 1998. FIDELITY CONTRAFUND The fund seeks capital appreciation. The fund invests mainly in equity securities of companies that the advisor believes to be undervalued due to an overly pessimistic appraisal by the public. The fund usually invests primarily in common stock and securities convertible into common stock but it has the flexibility to invest in any type of security that may produce capital appreciation. Investment option terminated in 1998. -15-
16 NOTES TO FINANCIAL STATEMENTS 3. INVESTMENTS, CONTINUED FIDELITY GROWTH COMPANY FUND Fidelity Growth Company Fund seeks capital appreciation. The fund invests primarily in common stocks and convertibles issued by companies that the advisor believes have above-average growth potential, measured by earnings or gross sales. To select investments, the advisor focuses mainly on smaller, lesser-known companies in emerging areas of the economy. It may also seek investment opportunities in revitalized or well-positioned larger companies in mature industries. Investment option terminated in 1998. FIDELITY RETIREMENT GROWTH FUND The fund seeks long-term capital appreciation by investing substantially in common stocks, although it may invest in other types of instruments as well. Investment option terminated in 1998. FIDELITY OVERSEAS FUND The fund seeks long-term growth of capital by investing primarily in securities of issuers whose principal activities are outside of the U.S. Investment option terminated in 1998. FIDELITY U.S. EQUITY INDEX PORTFOLIO The fund seeks a total return which corresponds to the Standard & Poor's 500 Index (S&P(7)). Investment option terminated in 1998. MERRILL LYNCH INSTITUTION FUND - Seeks to maintain a constant $1.00 net asset value per share value. MERRILL LYNCH RETIREMENT PRESERVATION TRUST - The investment objective is to focus on preservation of principal, high credit quality and diversification. AIM BALANCED FUND - The Fund seeks total return. The Fund normally invests between 30% and 70% of assets in equities and the balance in investment-grade fixed income securities. MERRILL LYNCH GROWTH FUND CLASS D - The investment objectives of the Fund are to seek growth of capital and, secondarily, income by investing in a diversified portfolio of primarily equity securities placing principal emphasis on those securities that management of the Fund believes to be undervalued. Undervalued issues include securities selling at discounts from the price-to-book value ratios and price/earnings computed with respect to the popular stock market averages. OPPENHEIMER GLOBAL GROWTH - The Fund invests primarily in common stocks and convertible securities issued by U.S. and foreign companies. -16-
17 NOTES TO FINANCIAL STATEMENTS 3. INVESTMENTS, CONTINUED MERRILL LYNCH CORPORATE BOND FUND INTERMEDIATE TERM CLASS D - The Fund normally invests at least 65% of assets in investment-grade corporate debt with a maximum remaining maturity of 10 or fewer years. The balance may be invested in convertibles and preferred stock. FEDERATED HIGH-INCOME BOND FUND CLASS A - Seeks high current income; with capital growth. MERRILL LYNCH CORPORATE BOND FUND INTERMEDIATE CLASS D-GM - Seeks current income. Fund normally invests in at least 55% of assets in investment-grade corporate debt with a maximum remaining maturity of 10 or fewer years. MASS INVESTORS TRUST - Seeks current income and long-term growth of capital and income. Invests primarily in common stocks and convertibles, emphasizing securities that management considers to be of high or improving quality. MASS INVESTORS TRUST GM - Seeks current income and long-term growth of capital and income. Invests primarily in common stocks and convertibles, emphasizing securities that management consider to be of high or improving quality. May also invest in debt securities and cash equivalents. AIM BLUE CHIP FUND CLASS A - Seeks long term growth of capital. Current income is secondary. DAVIS NEW YORK VENTURE FUND - The investment objective is growth of capital and invests primarily in common stocks. MERRILL LYNCH S&P 500 INDEX - The investment objective is to provide investment results that seek to replicate the total of the specific index. LORD ABBETT DEV. GROWTH CLASS P - Seeks long-term growth of capital. Invests at least 65% of assets in securities of small, developing growth companies. MANAGERS INTERNATIONAL EQUITY FUND - Seeks long-term capital appreciation, income is secondary. Normally invests at least 65% of assets in equity securities of companies domiciled outside of United States. GAM INTERNATIONAL FUND CLASS A - The investment objective of each fund is to seek long-term capital appreciation. The Fund seeks to achieve this objective by investing in the particular geographic region established pursuant to its own investment policy. AIM INCOME FUND CLASS A - Seeks current income consistent with safety of principal. Invests primarily in investment-grade corporate debt, convertibles, and U.S. Government debt. OPPENHEIMER GLOBAL FUND - Seeks capital appreciation. The fund invests primarily in common stock and convertible securities issued by U.S. and foreign companies. -17-
18 NOTES TO FINANCIAL STATEMENTS 3. INVESTMENTS, CONTINUED ALLIANCE QUASAR FUND CLASS A - Invests in rapidly growing small-sized companies that offer the potential for faster than average earnings growth which will offer possibilities for capital appreciation over the long term. PIONEER GROWTH SHARES - Seeks capital appreciation; current income is incidental MFS CAPITAL OPPORTUNITIES FUND CLASS A - Seeks capital appreciation and invests primarily in common stock. MERRILL LYNCH CAPITAL FUND CLASS D - The investment objective is to achieve the highest total investment return consistent with prudent risk. 4. TAX STATUS The Plan is a prototype which obtained its latest determination letter on June 29, 1993, in which the Internal Revenue Service stated that the plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. 5. TRANSACTIONS WITH PARTIES IN INTEREST During 1998, the Plan had Trust Agreements with Bank One of Texas and Merrill Lynch. In addition, participants have the option to invest in Range Resources Corporation common stock. -18-
19 ITEM 27a-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES Form 5500 Plan Number 002 Range Resources Corporation 401(k) Plan EI# 34-1312571 December 31, 1998 (b) Identity of Issue, (c) Description (e) Current (a) Borrower, Lessor, or Similar Party of Investment (d) Cost Value - ------ -------------------------------------- -------------- --------------- --------------- * Merrill Lynch Institutional Fund Mutual Fund $ 14,037 $ 14,037 * Range Resources Corporation Stock Mutual Fund 736,114 250,653 * Merrill Lynch Retirement Preservation Trust Mutual Fund 788,485 788,511 * Aim Balanced Mutual Fund 26 800 * Merrill Lynch Growth Fund Class D Mutual Fund 764 383,565 Oppenheimer Global Growth Mutual Fund 452,305 13 * Merrill Lynch Corporate Bond Fund Intermediate Class D Mutual Fund 12 468,415 Federated High Income Bond Fund Class A Mutual Fund 466,198 1,708 * Merrill Lynch Corporate Bond Fund Intermediate Class D - GM Mutual Fund 1,712 26 Mass Investors Trust Mutual Fund 26 1,074 Mass Investors Trust - GM Mutual Fund 1,061 70 Aim Blue Chip Fund Class A Mutual Fund 68 5,849 Davis New York Venture Fund Mutual Fund 5,431 1,430,304 * Merrill Lynch S&P 500 Index Mutual Fund 1,405,069 265,063 Lord Abbett Development Growth Class P Mutual Fund 256,949 73 Managers International Equity Fund Mutual Fund 68 89 Gam International Fund Class A Mutual Fund 85 103,851 Aim Income Fund Class A Mutual Fund 112,784 12 Gam International Fund Class A Mutual Fund 13 74 Oppenheimer Global Fund Mutual Fund 73 1,930 Alliance Quasar Fund Class A Mutual Fund 1,974 2,959 Pioneer Growth Shares Mutual Fund 2,689 3,544 MFS Capital Opportunity Fund Class A Mutual Fund 3,485 2,054 * Merrill Lynch Capital Fund Class D Mutual Fund 2,012 2,110,087 Cash Money Market 2,300,917 17,389 Participant notes receivable Loan pool - prime - 101,235 --------------- --------------- $ 6,552,357 $ 5,953,385 =============== =============== * Party-in-interest to the Plan -19-
20 ITEM 27d-SCHEDULE OF REPORTABLE TRANSACTIONS Range Resources Corporation 401(k) Plan EI# 34-1312571 December 31, 1998 Current Value of Plan - Beginning of Year $ 5,696,106 ============ 5% of Current Value - Beginning of Year $ 284,805 ============ (a) Identity of Number of Number of Purchase Party Involved (b) Description of Asset Purchases Sales Price -------------- ------------------------ --------- --------- -------- Category (iii) - A series of transactions in excess of 5% of plan assets - ------------------------------------------------------------------------ Merrill Lynch Range Resources Corporation 38 - $ 767,188 Merrill Lynch Range Resources Corporation - 15 $ - Merrill Lynch Merrill Lynch Retirement Preservation Fund 64 - $ 840,704 Merrill Lynch Merrill Lynch Retirement Preservation Fund - 21 $ - Merrill Lynch Merrill Lynch Growth Fund Class D 34 - $ 481,812 Merrill Lynch Merrill Lynch Growth Fund Class D - 13 $ - Merrill Lynch Merrill Lynch Corporate Bond Fund Intermediate Class D 38 - $ 495,793 Merrill Lynch Merrill Lynch Corporate Bond Fund Intermediate Class D - 9 $ - Merrill Lynch Davis New York Venture Fund 34 - $ 1,451,784 Merrill Lynch Davis New York Venture Fund - 17 $ - Merrill Lynch Merrill Lynch S&P 500 Index 34 - $ 269,994 Merrill Lynch Merrill Lynch S&P 500 Index - 7 $ - Merrill Lynch Gam International Fund Class A 30 - $ 117,444 Merrill Lynch Gam International Fund Class A - 6 $ - Merrill Lynch Merrill Lynch Capital Fund Class D 36 - $ 2,376,730 Merrill Lynch Merrill Lynch Capital Fund Class D - 18 $ - Fidelity Fidelity Retirement Growth 9 - $ 107,049 Fidelity Fidelity Retirement Growth - 9 $ - Fidelity Equity Index 11 - $ 82,857 Fidelity Equity Index - 10 $ - Fidelity Bond Fund 38 - $ 244,108 Fidelity Bond Fund - 23 $ - Fidelity PLAN 1 - $ 295,743 Fidelity PLAN - 1 $ - Fidelity Fidelity Contra Fund Inc. 9 - $ 202,262 Fidelity Fidelity Contra Fund Inc. - 12 $ - Fidelity Fidelity Blue Chip Growth Fund 9 - $ 292,699 Fidelity Fidelity Blue Chip Growth Fund - 10 $ - Fidelity Equity Fund 33 - $ 257,463 Fidelity Equity Fund - 40 $ - Fidelity Fidelity Growth Company 10 - $ 112,284 Fidelity Fidelity Growth Company - 11 $ - Fidelity Lomak Stock 11 - $ 905,723 Fidelity Lomak Stock - 13 $ - There were no category (i), (ii) and (iv) transactions during 1997. -20-
21 (f) Expense Incurred (d) Selling (e) Lease with (g) Cost (h) Carrying (i) Net Price Rental Transaction of Assets Value (Loss) Gain ----------- -------- ----------- --------- ----------- ----------- $ - N/A N/A $ 767,188 $ 767,188 $ - $ 10,615 N/A N/A $ 31,074 $ 10,615 $ (20,459) $ - N/A N/A $ 840,704 $ 840,704 $ - $ 52,219 N/A N/A $ 52,219 $ 52,219 $ - $ - N/A N/A $ 481,812 $ 481,812 $ - $ 25,002 N/A N/A $ 29,506 $ 25,002 $ (4,504) $ - N/A N/A $ 495,793 $ 495,793 $ - $ 29,946 N/A N/A $ 29,718 $ 29,946 $ 228 $ - N/A N/A $ 1,451,784 $ 1,451,784 $ - $ 45,918 N/A N/A $ 46,715 $ 45,918 $ (797) $ - N/A N/A $ 269,994 $ 269,994 $ - $ 13,096 N/A N/A $ 13,045 $ 13,096 $ 51 $ - N/A N/A $ 117,444 $ 117,444 $ - $ 4,071 N/A N/A $ 4,660 $ 4,071 $ (589) $ - N/A N/A $ 2,376,730 $ 2,376,730 $ - $ 67,981 N/A N/A $ 75,812 $ 67,981 $ (7,831) $ - N/A N/A $ 107,049 $ 107,049 $ - $ 269,024 N/A N/A $ - $ 249,542 $ 19,482 $ - N/A N/A $ 82,857 $ 82,157 $ - $ 246,604 N/A N/A $ - $ 210,802 $ 35,802 $ - N/A N/A $ 244,108 $ 244,108 $ - $ 681,502 N/A N/A $ - $ 682,167 $ (665) $ - N/A N/A $ 295,743 $ 295,743 $ - $ 792,085 N/A N/A $ - $ 792,085 $ - $ - N/A N/A $ 202,262 $ 202,262 $ - $ 519,168 N/A N/A $ - $ 465,361 $ 53,807 $ - N/A N/A $ 292,699 $ 292,699 $ - $ 748,274 N/A N/A $ - $ 659,791 $ 88,483 $ - N/A N/A $ 257,463 $ 257,463 $ - $ 2,585,834 N/A N/A $ - $ 2,044,739 $ 541,095 $ - N/A N/A $ 112,284 $ 112,284 $ - $ 456,215 N/A N/A $ - $ 423,060 $ 33,155 $ - N/A N/A $ 905,723 $ 905,723 $ - $ 260,010 N/A N/A $ - $ 257,470 $ 2,540 -21-
22 - -------------------------------------------------------------------------------- RANGE RESOURCES CORPORATION 401(k) PLAN AND TRUST FORM 11-K December 31, 1998 - -------------------------------------------------------------------------------- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the trustee has duly caused this annual report to be signed on their behalf by the undersigned, thereunto duly authorized. RANGE RESOURCES CORPORATION 401(k) PLAN AND TRUST June 30, 1998 BY: /s/ Thomas W. Stoelk --------------------- Trustee - -------------------------------------------------------------------------------- -22-
23 Exhibit Index ------------- Number Exhibit Page - ------ ------- ---- 23* Consent of independent certified 24 public accountants * included herewith -23-
1 Exhibit 23 CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS We consent to the inclusion in the Form 11-K of our report dated June 10, 1999, on the audit of the financial statements of the Range Resources 401(k) Plan as of December 31, 1998 and 1997, and for the years then ended, and for the supplemental schedules as of and for the year ended December 31, 1998. MEADEN & MOORE, LTD. CERTIFIED PUBLIC ACCOUNTANTS CLEVELAND, OHIO JUNE 30, 1999 - 24 -