rrc-8k_20200803.htm
false 0000315852 0000315852 2020-08-03 2020-08-03

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 4, 2020 (August 3, 2020)

 

RANGE RESOURCES CORPORATION

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-12209

34-1312571

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

100 Throckmorton Street, Suite 1200

Fort Worth, Texas

 

76102

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (817) 870-2601

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.01 par value

      

RRC

 

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

1


 

ITEM 2.02 Results of Operations and Financial Condition

On August 3, 2020 Range Resources Corporation issued a press release announcing its second quarter 2020 results. A copy of this press release is being furnished as an exhibit to this report on Form 8-K.

ITEM 2.05 Costs Associated with Exit or Disposal Activities

On July 18, 2020, we signed a purchase and sale agreement to sell our North Louisiana assets.  We retained a portion of long-term financial commitments to pay future gathering and processing deficiency fees on unused minimum volume commitments, some of which continue through 2029.  We are currently determining the valuation of our remaining obligations related to the sale of these assets.  Closing of this transaction is expected in early August.

ITEM 9.01 Financial Statements and Exhibits

(d) Exhibits:

99.1 Press Release dated August 3, 2020

104  Cover Page Interactive Data File (embedded within the Inline XBRL document)

2


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

RANGE RESOURCES CORPORATION

 

By:   

/s/ Mark S. Scucchi

 

Mark S. Scucchi

 

Chief Financial Officer

Date:  August 4, 2020

 

 

3

rrc-ex991_6.htm

EXHIBIT 99.1

NEWS RELEASE

Range Announces Second Quarter 2020 Financial Results & North Louisiana Asset Sale

FORT WORTH, TEXAS, August 3, 2020…RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its second quarter 2020 financial results.

Second Quarter Highlights –

 

Well costs averaged less than $600 per lateral foot, including facility costs, the lowest in Appalachia

 

Transportation, gathering, processing and compression expense improved $0.15 per mcfe, or 10% versus prior year

 

Direct operating expense improved $0.05 per mcfe, or 31% versus prior year

 

G&A expense (before certain items) improved $0.05 per mcfe, or 28% versus prior year

 

Production taxes improved $0.02 per mcfe, or 40% versus prior year

 

Interest expense improved $0.02 per mcfe, or 8% versus prior year

 

DD&A expense improved $0.19 per mcfe, or 28% versus prior year

 

Total cash unit costs improved $0.29 per mcfe, or 14% versus prior year

 

Production averaged 2,349 Mmcfe per day, approximately 71% natural gas

 

Repurchased approximately $47 million of outstanding notes principal at an average 20% discount to par

 

In July, signed purchase and sale agreement to divest North Louisiana assets for gross proceeds of $245 million, plus an additional $90 million contingent on future commodity prices

Commenting on the quarter, Jeff Ventura, the Company’s CEO said, “Range continued to make steady progress in the second quarter - significantly improving our cost structure, operating safely, and methodically developing our core asset with peer-leading well costs and capital efficiency.  After the sale of our North Louisiana assets, Range’s cost structure and capital productivity will take another meaningful step forward, driven by material improvements in our cash unit costs and a base decline solidly under 20%.  Our shallow base decline and peer leading well costs provide Range a sustaining capital requirement per mcfe that we believe is the lowest amongst peers, providing us a solid foundation for generating corporate returns.  In 2020, we expect Range to reduce total debt outstanding for the third consecutive year in a row, reflecting our commitment to disciplined capital allocation and a strong balance sheet.  Range remains well-positioned to successfully navigate the current commodity environment and benefit from an improved outlook for natural gas and natural gas liquids, particularly given Range’s industry-leading inventory of core natural gas and liquids wells.”

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.

GAAP revenues for second quarter 2020 totaled $377 million, GAAP net cash provided from operating activities (including changes in working capital) was $79 million, and GAAP earnings was a loss of $147 million ($0.61 per diluted share). 

Non-GAAP revenues for second quarter 2020 totaled $502 million, and cash flow from operations before changes in working capital, a non-GAAP measure, was $81 million.  Adjusted earnings comparable to analysts’ estimates, a non-GAAP measure, was a loss of $25 million ($0.10 per diluted share) in second quarter 2020.



North Louisiana Asset Sale

Subsequent to June 30, Range signed a purchase and sale agreement to divest the Company’s North Louisiana assets for gross proceeds of $245 million, with the potential for $90 million in additional proceeds contingent on future commodity prices.  At the time of the sale, the assets were producing approximately 160 Mmcfe per day, and Range did not have any drilling and completion activity planned for the assets this year.  Per the agreement, Range will retain certain commitments through their remaining term.  Range intends to use $28.5 million of the sale proceeds to reduce a portion of the retained commitments.  The transaction is expected to close in August with an effective date of February 1, 2020.

Capital Expenditures

Second quarter 2020 drilling and completion expenditures were $99 million.  In addition, during the quarter, a combined $5 million was spent on acreage and gathering systems.  Total year-to-date expenditures were $235 million at the end of the second quarter.  Well costs, including all facilities, averaged less than $600 per foot in the second quarter, the lowest normalized well costs in Appalachia.  Range remains on track to spend at or below its total capital budget of $430 million for 2020.

Financial Position and Buyback Activity

At the end of the second quarter, Range had $639 million drawn on its revolver and over $1.4 billion of additional borrowing capacity under the commitment amount. Range expects its $3.0 billion borrowing base to be unchanged following the sale of its North Louisiana assets.  Following the planned closing on the Company’s North Louisiana asset sale in August, Range’s liquidity is expected to exceed $1.6 billion.

Range repurchased and retired approximately $47 million in principal amount of its senior and subordinated notes during the second quarter at a weighted average discount to par of 20%.  Range also repurchased 200,000 shares of the Company’s common stock during the second quarter at an average price of $2.22 per share.  In total, Range has repurchased $360 million in debt principal at a discount and ten million shares since second half 2019.  

Unit Costs and Pricing

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

Expenses

 

2Q 2020

($/Mcfe)

 

 

2Q 2019

($/Mcfe)

 

 

Increase

(Decrease)

 

 

 

 

 

 

 

 

 

Direct operating(a)

$

0.11

 

$

0.16

 

 

(31%)

Transportation, gathering, processing and compression

 

1.30

 

 

1.45

 

 

(10%)

Production and ad valorem taxes

 

0.03

 

 

0.05

 

 

(40%)

General and administrative (G&A)(a)

 

0.13

 

 

0.18

 

 

(28%)

Interest expense(a)

 

0.22

 

 

0.24

 

 

(8%)

Total cash unit costs(b)

 

1.79

 

 

2.08

 

 

(14%)

Depletion, depreciation and amortization (DD&A)

 

0.49

 

 

0.68

 

 

(28%)

Total unit costs plus DD&A(b)

$

2.28

 

$

2.76

 

 

(17%)

 

(a)

Excludes stock-based compensation, legal settlements and amortization of deferred financing costs.

 

(b)

May not add due to rounding.

 

 

 

 

 

 

2


 

The following table details Range’s average production and realized pricing for second quarter 2020:

 

2Q20 Production & Realized Pricing

 

 

Natural Gas

(Mcf)

 

NGLs (Bbl)

 

Oil

(Bbl)

 

Natural Gas

Equivalent (Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Production per day

 

1,660,743

 

106,772

 

7,913

 

2,348,856

 

 

 

 

 

 

 

 

 

Average NYMEX price

 

$ 1.72

 

 

 

$ 27.09

 

 

Differential, including basis hedging

 

  (0.31)

 

  

 

(12.28)

 

 

Realized prices before NYMEX hedges

 

  1.41

 

$ 12.80

 

14.81

 

 

Settled NYMEX hedges

 

  0.61

 

    0.71

 

30.21

 

 

Average realized prices after hedges (a)

 

$ 2.02

 

$ 13.51

 

$ 45.03

 

$ 2.19

 

 

(a)

May not add due to rounding.

 

Second quarter 2020 natural gas, NGLs and oil price realizations (including the impact of derivative settlements which correspond to analysts’ estimates) averaged $2.19 per mcfe.  Additional detail on commodity price realizations can be found in the Supplemental Tables provided on the Company’s website.  

 

 

The average natural gas price, including the impact of basis hedging, was $1.41 per mcf, or a ($0.31) differential to NYMEX.  In the second quarter, Range sold additional natural gas volume in Appalachia following a pipeline outage in May that affected a portion of Range’s transportation to the Gulf Coast.  This minor impact to differentials was offset by lower gas transportation expense in the quarter.  

 

 

Pre-hedge NGL realizations were $12.80 per barrel, or a $0.37 per barrel premium to the Mont Belvieu weighted barrel and approximately 47% of WTI (West Texas Intermediate).  Lower NGL prices in the second quarter were partially offset by lower processing costs.

 

 

Crude oil and condensate price realizations, before realized hedges, averaged $14.81 per barrel, or $12.28 below WTI.  Condensate pricing in the second quarter was impacted by weakness in regional demand.  However, regional condensate demand has increased following the second quarter, and Range expects differentials and fundamentals to improve in second half 2020. As a result, Range deferred some liquids-rich activity into second half 2020 and its Appalachia condensate production is expected to increase versus the second quarter.  

 

 

Operational Discussion

 

The table below summarizes estimated activity for 2020 regarding the number of wells to sales for each area.  

 

 

 

 

 

Wells TIL

2Q 2020

 

Calendar 2020

Planned TIL

 

Remaining

2020

SW PA Super-Rich

 

 

0

 

3

 

3

SW PA Wet

 

 

6

 

31

 

13

SW PA Dry

 

 

15

 

33

 

10

Total Wells

 

 

21

 

67

 

26

 

 

 

 

3


 

Production by Area

 

Total production for second quarter 2020 averaged approximately 2,349 net Mmcfe per day.  The southwest Appalachia area averaged 2,083 net Mmcfe per day during the quarter, a 6% increase over second quarter 2019.  The northeast Marcellus properties averaged 86 net Mmcf per day and North Louisiana production during second quarter 2020 averaged approximately 179 net Mmcfe per day. Second quarter 2020 North Louisiana production includes the benefit of one-time land and legal adjustments as part of the divestiture process.

 

 

Marketing and Transportation

 

During the quarter, Range sold additional natural gas volume in Appalachia following a third-party pipeline outage in early May affecting a portion of Range’s transportation that takes natural gas to the Gulf Coast.  This had a minor impact to natural gas differentials during the quarter and was mostly offset by lower gas transportation expense.  Range continues to benefit from its diverse set of natural gas transportation outlets as unexpected events in any one market do not materially impact the overall portfolio.

 

Domestic U.S. natural gas production declined significantly during the quarter, led by associated gas shut-ins and legacy basin declines in response to the price of both oil and natural gas.  Range expects recently announced activity reductions for the industry to weigh on second half 2020 production levels, more than offsetting the return of shut-in production, while LNG export demand recovers from current levels.  Evidenced by one of the lightest 2021 hedge positions among natural gas producers, Range anticipates that a sustained move higher in the forward curve for natural gas is needed to incentivize activity from dry gas producing basins to avoid extremely low storage levels next year.

 

As previously disclosed, entering second quarter, demand for gasoline and jet fuel were directly impacted by COVID-19 related reductions in vehicle and air travel.  The abrupt change in demand put temporary pressure on condensate pricing during the quarter.  Production and sales were unaffected as Range’s marketing team found domestic or international outlets for all products.  The Northeast condensate market began to rebound in the months of June and July, with substantial improvements in pricing, pointing to a better second half of the year.  

 

Range experienced healthy NGL demand during the second quarter as a result of its strong and diverse customer base as well as a flexible transportation portfolio that allows access to multiple domestic and international markets.  The Company increased its access to waterborne exports via Mariner East and Marcus Hook during the second quarter, where LPG export premiums at Marcus Hook have remained stable at a few cents per gallon above Mont Belvieu index.  Range expects NGL and condensate fundamentals to continue strengthening during the second half of 2020, as a lack of U.S. drilling and completions activity is expected to result in declining supply while demand continues to recover.  Range’s liquids-weighted activity during the balance of 2020 is set to take advantage of this improving macro environment for both condensate and NGL pricing.

 

 

Guidance – 2020  

 

Production per day Guidance

 

Production for full-year 2020 is expected to average approximately 2.25 Bcfe per day, reflecting adjustments associated with the sale of North Louisiana assets.  Full-year 2020 Appalachia production is expected to average approximately 2.15 Bcfe per day.

 

 

 

 

 

 

 

4


Full Year 2020 Expense Guidance  

 

 

Prior Guidance

Updated Guidance

Direct operating expense:

$0.14 - $0.16 per mcfe

$0.11 - $0.13 per mcfe

Transportation, gathering, processing and compression expense:

$1.37 - $1.40 per mcfe

$1.32 - $1.36 per mcfe

Production tax expense:

$0.04 - $0.05 per mcfe

$0.03 - $0.04 per mcfe

Exploration expense:

$30 - $38 million

$28 - $34 million

G&A expense:

$0.14 - $0.16 per mcfe

$0.14 - $0.15 per mcfe

Interest expense:

$0.22 - $0.24 per mcfe

$0.22 - $0.24 per mcfe

DD&A expense:

$0.48 - $0.52 per mcfe

$0.48 - $0.52 per mcfe

Net brokered gas marketing expense:

$10 - $16 million

$10 - $16 million

 

Full Year 2020 Price Guidance

 

Based on current market indications and the anticipated sale of Range’s North Louisiana assets in August, Range expects to average the following price differentials for its production in 2020.  

 

 

Prior Guidance

Updated Guidance

Natural Gas:(1)

NYMEX minus $0.20 to $0.26

NYMEX minus $0.22 to $0.28

Natural Gas Liquids:(2)

Mont Belvieu plus $0.50 to $1.50 per bbl

Mont Belvieu plus $0.50 to $1.50 per bbl

Oil/Condensate:

WTI minus $8.00 to $9.00 per bbl

WTI minus $8.00 to $10.00 per bbl

(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 to increase the predictability of cash flow and to help maintain a more flexible financial position.  Range has over 70% of its remaining 2020 natural gas production hedged at a weighted average floor price of $2.57 per Mmbtu.  Similarly, Range has hedged over 80% of its remaining 2020 projected crude oil production at an average floor price of $58.12.  Please see Range’s detailed hedging schedule posted at the end of the financial tables below and on its website at www.rangeresources.com.  

 

Range has also hedged Marcellus and other natural gas basis to limit volatility between NYMEX and regional prices.  The fair value of basis hedges was a loss of $4.5 million as of June 30, 2020.  The Company also has propane basis swap contracts and freight swaps which lock in the differential between Mont Belvieu and international propane indices.  The combined fair value of these contracts was a loss of $4.0 million at June 30, 2020.  

 


5


Conference Call Information

A conference call to review the financial results is scheduled on Tuesday, August 4 at 9:00 a.m. ET.  A webcast of the call may be accessed at www.rangeresources.com. The webcast will be archived for replay on the Company's website until September 4, 2020.

To participate in the call, dial 877-928-8777 and provide conference code 1543996 about 15 minutes prior to the scheduled start time.

Non-GAAP Financial Measures

Adjusted net income comparable to analysts’ estimates as set forth in this release represents income or loss from operations before income taxes adjusted for certain non-cash items (detailed in the accompanying table) less income taxes.  We believe adjusted net income comparable to analysts’ estimates is calculated on the same basis as analysts’ estimates and that many investors use this published research in making investment decisions and evaluating operational trends of the Company and its performance relative to other oil and gas producing companies.  Diluted earnings per share (adjusted) as set forth in this release represents adjusted net income comparable to analysts’ estimates on a diluted per share basis.  A table is included which reconciles income or loss from operations to adjusted net income comparable to analysts’ estimates and diluted earnings per share (adjusted).  The Company provides additional comparative information on prior periods along with non-GAAP revenue disclosures on its website.  

 

Cash flow from operations before changes in working capital (sometimes referred to as “adjusted cash flow”) as defined in this release represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items.  Cash flow from operations before changes in working capital is widely accepted by the investment community as a financial indicator of an oil and gas company’s ability to generate cash to internally fund exploration and development activities and to service debt.  Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry.  In turn, many investors use this published research in making investment decisions.  Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity.  A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release.  On its website, the Company provides additional comparative information on prior periods for cash flow, cash margins and non-GAAP earnings as used in this release.

 

The cash prices realized for oil and natural gas production, including the amounts realized on cash-settled derivatives and net of transportation, gathering, processing and compression expense, is a critical component in the Company’s performance tracked by investors and professional research analysts in valuing, comparing, rating and providing investment recommendations and forecasts of companies in the oil and gas exploration and production industry.  In turn, many investors use this published research in making investment decisions.  Due to the GAAP disclosures of various derivative transactions and third-party transportation, gathering, processing and compression expense, such information is now reported in various lines of the income statement.  The Company believes that it is important to furnish a table reflecting the details of the various components of each line in the statement of operations to better inform the reader of the details of each amount and provide a summary of the realized cash-settled amounts and third-party transportation, gathering, processing and compression expense which 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 quarterly report on Form 10-Q.  The Company believes that it is important to furnish this detail of the various components comprising each line of the Statements of Operations to better inform the reader of the details of each amount, the changes between periods and the effect on its financial results.

 

6


RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused in stacked-pay projects in the Appalachian Basin. The Company pursues an organic development strategy targeting high return, low-cost projects within its large inventory of low risk development drilling opportunities.  The Company is headquartered in Fort Worth, Texas.  More information about Range can be found at www.rangeresources.com.

 

Included within this 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.  

 

7


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.

 

 

 

2020-13

SOURCE:   Range Resources Corporation

 

 

Investor Contacts:

 

Laith Sando, Vice President – Investor Relations

817-869-4267

lsando@rangeresources.com

 

John Durham, Senior Financial Analyst

817-869-1538

jdurham@rangeresources.com

 

 

Range Media Contacts:

 

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

 


8


RANGE RESOURCES CORPORATION

STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on GAAP reported earnings with additional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

details of items included in each line in Form 10-Q

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

 

2019

 

 

 

%

 

 

 

2020

 

 

 

2019

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues and other income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas, NGLs and oil sales (a)

$

349,258

 

 

$

563,579

 

 

 

 

 

 

$

781,354

 

 

$

1,235,233

 

 

 

 

 

Derivative fair value (loss)/income

 

(6,303

)

 

 

195,245

 

 

 

 

 

 

 

226,872

 

 

 

133,514

 

 

 

 

 

Brokered natural gas, marketing and other (b)

 

33,309

 

 

 

91,940

 

 

 

 

 

 

 

61,698

 

 

 

230,083

 

 

 

 

 

ARO settlement loss (b)

 

(12

)

 

 

 

 

 

 

 

 

 

(12

)

 

 

 

 

 

 

 

Other (b)

 

294

 

 

 

665

 

 

 

 

 

 

 

554

 

 

 

736

 

 

 

 

 

Total revenues and other income

 

376,546

 

 

 

851,429

 

 

 

-56

%

 

 

1,070,466

 

 

 

1,599,566

 

 

 

-33

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

23,960

 

 

 

33,432

 

 

 

 

 

 

 

55,545

 

 

 

66,068

 

 

 

 

 

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

 

434

 

 

 

549

 

 

 

 

 

 

 

884

 

 

 

1,140

 

 

 

 

 

Transportation, gathering, processing and compression  

 

278,875

 

 

 

301,219

 

 

 

 

 

 

 

563,640

 

 

 

603,874

 

 

 

 

 

Production and ad valorem taxes  

 

5,557

 

 

 

9,889

 

 

 

 

 

 

 

14,576

 

 

 

21,199

 

 

 

 

 

Brokered natural gas and marketing

 

37,993

 

 

 

100,564

 

 

 

 

 

 

 

70,204

 

 

 

232,421

 

 

 

 

 

Brokered natural gas and marketing – non-cash

    stock-based compensation (c)

 

168

 

 

 

553

 

 

 

 

 

 

 

581

 

 

 

1,001

 

 

 

 

 

Exploration

 

7,655

 

 

 

7,721

 

 

 

 

 

 

 

14,402

 

 

 

15,444

 

 

 

 

 

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

 

372

 

 

 

388

 

 

 

 

 

 

 

702

 

 

 

876

 

 

 

 

 

Abandonment and impairment of unproved properties  

 

5,524

 

 

 

12,770

 

 

 

 

 

 

 

10,937

 

 

 

25,429

 

 

 

 

 

General and administrative  

 

28,333

 

 

 

38,505

 

 

 

 

 

 

 

61,343

 

 

 

74,799

 

 

 

 

 

General and administrative – non-cash stock-based

    compensation (c)

 

9,179

 

 

 

9,500

 

 

 

 

 

 

 

17,208

 

 

 

19,138

 

 

 

 

 

General and administrative – lawsuit settlements

 

776

 

 

 

1,190

 

 

 

 

 

 

 

1,591

 

 

 

1,896

 

 

 

 

 

General and administrative – rig release penalty

 

 

 

 

1,436

 

 

 

 

 

 

 

 

 

 

1,436

 

 

 

 

 

General and administrative – bad debt expense  

 

 

 

 

 

 

 

 

 

 

 

400

 

 

 

 

 

 

 

 

Exit and termination costs

 

10,297

 

 

 

2,180

 

 

 

 

 

 

 

11,892

 

 

 

2,180

 

 

 

 

 

Exit and termination costs – non-cash stock-based

    compensation (c)

 

 

 

 

26

 

 

 

 

 

 

 

 

 

 

26

 

 

 

 

 

Deferred compensation plan (d)

 

12,587

 

 

 

(11,142

)

 

 

 

 

 

 

4,050

 

 

 

(7,561

)

 

 

 

 

Interest expense

 

46,489

 

 

 

49,922

 

 

 

 

 

 

 

91,946

 

 

 

99,671

 

 

 

 

 

Interest expense – amortization of deferred financing costs (e)

 

2,135

 

 

 

1,805

 

 

 

 

 

 

 

4,196

 

 

 

3,593

 

 

 

 

 

Gain on early extinguishment of debt

 

(8,991

)

 

 

 

 

 

 

 

 

 

(21,914

)

 

 

 

 

 

 

 

Depletion, depreciation and amortization  

 

104,626

 

 

 

141,505

 

 

 

 

 

 

 

207,612

 

 

 

280,223

 

 

 

 

 

Impairment of proved properties

 

 

 

 

 

 

 

 

 

 

 

77,000

 

 

 

 

 

 

 

 

Loss (gain) on sale of assets

 

426

 

 

 

(5,867

)

 

 

 

 

 

 

(121,673

)

 

 

(5,678

)

 

 

 

 

Total costs and expenses

 

566,395

 

 

 

696,145

 

 

 

-19

%

 

 

1,065,122

 

 

 

1,437,175

 

 

 

-26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

(189,849

)

 

 

155,284

 

 

 

-222

%

 

 

5,344

 

 

 

162,391

 

 

 

-97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

(3)

 

 

 

 

 

 

 

 

 

 

(366

)

 

 

 

 

 

 

 

Deferred

 

(43,277

)

 

 

40,099

 

 

 

 

 

 

 

7,304

 

 

 

45,787

 

 

 

 

 

 

 

(43,280

)

 

 

40,099

 

 

 

 

 

 

 

6,938

 

 

 

45,787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

$

(146,569

)

 

$

115,185

 

 

 

-227

%

 

$

(1,594

)

 

$

116,604

 

 

 

-101

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (Loss) Income Per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.61

)

 

$

0.46

 

 

 

 

 

 

$

(0.01

)

 

$

0.46

 

 

 

 

 

Diluted

$

(0.61

)

 

$

0.46

 

 

 

 

 

 

$

(0.01

)

 

$

0.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, as reported:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

239,472

 

 

 

247,770

 

 

 

-3

%

 

 

242,717

 

 

 

247,773

 

 

 

-2

%

Diluted

 

239,472

 

 

 

248,436

 

 

 

-4

%

 

 

242,717

 

 

 

249,042

 

 

 

-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-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.


9


RANGE RESOURCES CORPORATION

 

BALANCE SHEETS

 

 

 

 

 

 

 

(In thousands)

 

June 30,

 

 

 

December 31,

 

 

 

2020

 

 

 

2019

 

 

 

(Unaudited)

 

 

 

(Audited)

 

Assets

 

 

 

 

 

 

 

Current assets

$

188,587

 

 

$

290,954

 

Derivative assets

 

146,236

 

 

 

137,554

 

Natural gas and oil properties, successful efforts method

 

5,993,626

 

 

 

6,041,035

 

Transportation and field assets

 

3,723

 

 

 

5,375

 

Operating lease right-of-use assets

 

52,367

 

 

 

62,053

 

Other

 

67,672

 

 

 

75,432

 

 

$

6,452,211

 

 

$

6,612,403

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

Current liabilities

$

522,554

 

 

$

551,032

 

Asset retirement obligations

 

2,393

 

 

 

2,393

 

Derivative liabilities

 

5,306

 

 

 

13,119

 

 

 

 

 

 

 

 

 

Bank debt

 

628,221

 

 

 

464,319

 

Senior notes

 

2,510,256

 

 

 

2,659,844

 

Senior subordinated notes

 

26,656

 

 

 

48,774

 

Total debt

 

3,165,133

 

 

 

3,172,937

 

 

 

 

 

 

 

 

 

Deferred tax liability

 

167,548

 

 

 

160,196

 

Derivative liabilities

 

10,001

 

 

 

949

 

Deferred compensation liability

 

58,676

 

 

 

64,070

 

Operating lease liabilities

 

35,104

 

 

 

41,068

 

Asset retirement obligations and other liabilities

 

149,680

 

 

 

259,151

 

 

 

 

 

 

 

 

 

Common stock and retained earnings

 

2,366,654

 

 

 

2,355,512

 

Other comprehensive loss

 

(644

)

 

 

(788

)

Common stock held in treasury stock

 

(30,194

)

 

 

(7,236

)

Total stockholders’ equity

 

2,335,816

 

 

 

2,347,488

 

 

$

6,452,211

 

 

$

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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

 

2019

 

 

 

%

 

 

 

2020

 

 

 

2019

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and other income, as reported

$

376,546

 

 

$

851,429

 

 

 

-56

%

 

$

1,070,466

 

 

$

1,599,566

 

 

 

-33

%

Adjustment for certain special items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

125,803

 

 

 

(161,738

)

 

 

 

 

 

 

(7,443

)

 

 

(75,173

)

 

 

 

 

ARO settlement loss

 

12

 

 

 

 

 

 

 

 

 

 

12

 

 

 

 

 

 

 

 

Total revenues, as adjusted, non-GAAP

$

502,361

 

 

$

689,691

 

 

 

-27

%

 

$

1,063,035

 

 

$

1,524,393

 

 

 

-30

%

 


10


 

RANGE RESOURCES CORPORATION

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

$

(146,569

)

 

$

115,185

 

 

$

(1,594

)

 

$

116,604

 

Adjustments to reconcile net cash provided from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income tax (benefit) expense

 

(43,277

)

 

 

40,099

 

 

 

7,304

 

 

 

45,787

 

Depletion, depreciation, amortization and impairment

 

104,626

 

 

 

141,505

 

 

 

284,612

 

 

 

280,223

 

Abandonment and impairment of unproved properties

 

5,524

 

 

 

12,770

 

 

 

10,937

 

 

 

25,429

 

Derivative fair value loss (income)

 

6,303

 

 

 

(195,245

)

 

 

(226,872

)

 

 

(133,514

)

Cash settlements on derivative financial instruments

 

119,500

 

 

 

33,507

 

 

 

219,429

 

 

 

58,341

 

Allowance for bad debts

 

 

 

 

 

 

 

400

 

 

 

 

Amortization of deferred issuance costs and other

 

1,741

 

 

 

1,436

 

 

 

3,398

 

 

 

3,243

 

Deferred and stock-based compensation

 

22,637

 

 

 

(385

)

 

 

23,113

 

 

 

13,727

 

Loss (gain) on sale of assets and other

 

426

 

 

 

(5,867

)

 

 

(121,673

)

 

 

(5,678

)

Gain on early extinguishment of debt

 

(8,991

)

 

 

 

 

 

(21,914

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in working capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

19,045

 

 

 

67,422

 

 

 

103,390

 

 

 

201,428

 

Inventory and other

 

376

 

 

 

(272

)

 

 

(4,056

)

 

 

(5,035

)

Accounts payable

 

(46,013

)

 

 

1,299

 

 

 

(27,353

)

 

 

(29,132

)

Accrued liabilities and other

 

43,434

 

 

 

(26,632

)

 

 

(45,853

)

 

 

(125,907

)

Net changes in working capital

 

16,842

 

 

 

41,817

 

 

 

26,128

 

 

 

41,354

 

Net cash provided from operating activities

$

78,762

 

 

$

184,822

 

 

$

203,268

 

 

$

445,516

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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,

 

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

Net cash provided from operating activities, as reported

$

78,762

 

 

$

184,822

 

 

$

203,268

 

 

$

445,516

 

Net changes in working capital

 

(16,842

)

 

 

(41,817

)

 

 

(26,128

)

 

 

(41,354

)

Exploration expense

 

7,655

 

 

 

7,721

 

 

 

14,402

 

 

 

15,444

 

Lawsuit settlements

 

776

 

 

 

1,190

 

 

 

1,591

 

 

 

1,896

 

Exit and termination costs

 

10,297

 

 

 

2,180

 

 

 

11,892

 

 

 

2,180

 

Rig release penalty

 

 

 

 

1,436

 

 

 

 

 

 

1,436

 

Non-cash compensation adjustment

 

509

 

 

 

628

 

 

 

1,122

 

 

 

1,243

 

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

$

81,157

 

 

$

156,160

 

 

$

206,147

 

 

$

426,361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

245,879

 

 

 

251,242

 

 

 

247,516

 

 

 

250,784

 

Stock held by deferred compensation plan

 

(6,407

)

 

 

(3,472

)

 

 

(4,799

)

 

 

(3,011

)

Adjusted basic

 

239,472

 

 

 

247,770

 

 

 

242,717

 

 

 

247,773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

245,879

 

 

 

251,242

 

 

 

247,516

 

 

 

250,784

 

Dilutive stock options under treasury method

 

(6,407

)

 

 

(2,806

)

 

 

(4,799

)

 

 

(1,742

)

Adjusted dilutive

 

239,472

 

 

 

248,436

 

 

 

242,717

 

 

 

249,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


11


RANGE RESOURCES CORPORATION

 

RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES AND DERIVATIVE FAIR VALUE INCOME (LOSS) TO CALCULATED CASH REALIZED NATURAL GAS, NGLs AND OIL PRICES WITH AND WITHOUT THIRD PARTY TRANSPORTATION, GATHERING AND COMPRESSION FEES, a non-GAAP measure

 

 

 

 

 

(Unaudited, in thousands, except per unit data)

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

 

2019

 

 

 

%

 

 

 

2020

 

 

 

2019

 

 

 

%

 

Natural gas, NGL and oil sales components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

$

214,207

 

 

$

343,623

 

 

 

 

 

 

$

467,456

 

 

$

778,343

 

 

 

 

 

NGL sales

 

124,383

 

 

 

167,027

 

 

 

 

 

 

 

267,622

 

 

 

364,840

 

 

 

 

 

Oil sales

 

10,668

 

 

 

52,929

 

 

 

 

 

 

 

46,276

 

 

 

92,050

 

 

 

 

 

Total oil and gas sales, as reported

$

349,258

 

 

$

563,579

 

 

 

-38

%

 

$

781,354

 

 

$

1,235,233

 

 

 

-37

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative fair value (loss) income, as reported:

$

(6,303

)

 

$

195,245

 

 

 

 

 

 

$

226,872

 

 

$

133,514

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

 

(90,837

)

 

 

(20,396

)

 

 

 

 

 

 

(171,009

)

 

 

(19,524

)

 

 

 

 

NGLs

 

(6,905

)

 

 

(15,918

)

 

 

 

 

 

 

(16,948

)

 

 

(40,782

)

 

 

 

 

Crude Oil

 

(21,758

)

 

 

2,807

 

 

 

 

 

 

 

(31,472

)

 

 

1,965

 

 

 

 

 

Total change in fair value related to derivatives prior to settlement, a

    non-GAAP measure

$

(125,803

)

 

$

161,738

 

 

 

 

 

 

$

7,443

 

 

$

75,173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transportation, gathering, processing and compression components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

$

167,367

 

 

$

185,353

 

 

 

 

 

 

$

337,208

 

 

$

374,435

 

 

 

 

 

NGLs

 

110,718

 

 

 

115,866

 

 

 

 

 

 

 

225,642

 

 

 

229,439

 

 

 

 

 

Oil

 

790

 

 

 

 

 

 

 

 

 

 

790

 

 

 

 

 

 

 

 

Total transportation, gathering, processing and compression, as reported

$

278,875

 

 

$

301,219

 

 

 

 

 

 

$

563,640

 

 

$

603,874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

$

305,044

 

 

$

364,019

 

 

 

 

 

 

$

638,465

 

 

$

797,867

 

 

 

 

 

NGL sales

 

131,288

 

 

 

182,945

 

 

 

 

 

 

 

284,570

 

 

 

405,622

 

 

 

 

 

Oil sales

 

32,426

 

 

 

50,122

 

 

 

 

 

 

 

77,748

 

 

 

90,085

 

 

 

 

 

Total

$

468,758

 

 

$

597,086

 

 

 

-21

%

 

 

1,000,783

 

 

 

1,293,574

 

 

 

-23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

 

151,127,582

 

 

 

143,163,003

 

 

 

6

%

 

 

296,888,174

 

 

 

283,684,666

 

 

 

5

%

NGL (bbl)

 

9,716,261

 

 

 

9,847,268

 

 

 

-1

%

 

 

19,349,296

 

 

 

19,459,815

 

 

 

-1

%

Oil (bbl)

 

720,125

 

 

 

982,324

 

 

 

-27

%

 

 

1,588,422

 

 

 

1,787,874

 

 

 

-11

%

Gas equivalent (mcfe) (b)

 

213,745,898

 

 

 

208,140,555

 

 

 

3

%

 

 

422,514,482

 

 

 

411,170,800

 

 

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

 

1,660,743

 

 

 

1,573,220

 

 

 

6

%

 

 

1,631,254

 

 

 

1,567,319

 

 

 

4

%

NGL (bbl)

 

106,772

 

 

 

108,212

 

 

 

-1

%

 

 

106,315

 

 

 

107,513

 

 

 

-1

%

Oil (bbl)

 

7,913

 

 

 

10,795

 

 

 

-27

%

 

 

8,728

 

 

 

9,878

 

 

 

-12

%

Gas equivalent (mcfe) (b)  

 

2,348,856

 

 

 

2,287,259

 

 

 

3

%

 

 

2,321,508

 

 

 

2,271,662

 

 

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

$

1.42

 

 

$

2.40

 

 

 

-41

%

 

$

1.57

 

 

$

2.74

 

 

 

-43

%

NGL (bbl)

$

12.80

 

 

$

16.96

 

 

 

-25

%

 

$

13.83

 

 

$

18.75

 

 

 

-26

%

Oil (bbl)

$

14.81

 

 

$

53.88

 

 

 

-73

%

 

$

29.13

 

 

$

51.49

 

 

 

-43

%

Gas equivalent (mcfe) (b)

$

1.63

 

 

$

2.71

 

 

 

-40

%

 

$

1.85

 

 

$

3.00

 

 

 

-38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

$

2.02

 

 

$

2.54

 

 

 

-21

%

 

$

2.15

 

 

$

2.81

 

 

 

-24

%

NGL (bbl)

$

13.51

 

 

$

18.58

 

 

 

-27

%

 

$

14.71

 

 

$

20.84

 

 

 

-29

%

Oil (bbl)

$

45.03

 

 

$

51.02

 

 

 

-12

%

 

$

48.95

 

 

$

50.39

 

 

 

-3

%

Gas equivalent (mcfe) (b)

$

2.19

 

 

$

2.87

 

 

 

-24

%

 

$

2.37

 

 

$

3.15

 

 

 

-25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average prices, including derivative settlements and after third party

       transportation costs: (d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mcf)

$

0.91

 

 

$

1.25

 

 

 

-27

%

 

$

1.01

 

 

$

1.49

 

 

 

-32

%

NGL (bbl)

$

2.12

 

 

$

6.81

 

 

 

-69

%

 

$

3.05

 

 

$

9.05

 

 

 

-66

%

Oil (bbl)

$

43.93

 

 

$

51.02

 

 

 

-14

%

 

$

48.45

 

 

$

50.39

 

 

 

-4

%

Gas equivalent (mcfe) (b)

$

0.89

 

 

$

1.42

 

 

 

-38

%

 

$

1.03

 

 

$

1.68

 

 

 

-38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transportation, gathering and compression expense per mcfe

$

1.30

 

 

$

1.45

 

 

 

-10

%

 

$

1.33

 

 

$

1.47

 

 

 

-9

%

(a)  Represents volumes sold regardless of when produced.

(b)  Oil and NGLs are converted at the rate of one barrel equals six mcfe based upon the approximate relative energy content of oil to natural gas, which is not necessarily indicative of the relationship of oil and natural gas prices.

(c)  Excluding third party transportation, gathering and compression costs.

(d)  Net of transportation, gathering and compression costs.

12


RANGE RESOURCES CORPORATION

 

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