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10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark one)


☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-12209

RANGE RESOURCES CORPORATION

(Exact Name of Registrant as Specified in Its Charter)


Delaware		34-1312571
(State or Other Jurisdiction of Incorporation or Organization)		(IRS Employer Identification No.)
100 Throckmorton Street, Suite 1200 Fort Worth, Texas		76102
(Address of Principal Executive Offices)		(Zip Code)

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, (Par Value $0.01)

RRC

New York Stock Exchange

Registrant’s telephone number, including area code

(817) 870-2601

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer		Accelerated Filer	

Non-Accelerated Filer		Smaller Reporting Company	☐
		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.		

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No 

259,778,494 Common Shares were outstanding on July 23, 2021

RANGE RESOURCES CORPORATION

FORM 10-Q

Quarter Ended June 30, 2021

Unless the context otherwise indicates, all references in this report to “Range Resources,” “Range,” “we,” “us,” or “our” are to Range Resources Corporation and its directly and indirectly owned subsidiaries. For certain industry specific terms used in this Form 10-Q, please see “Glossary of Certain Defined Terms” in our 2020 Annual Report on Form 10-K.

TABLE OF CONTENTS


		Page
PART I – FINANCIAL INFORMATION
ITEM 1.	Financial Statements:
	Consolidated Balance Sheets (Unaudited)	3
	Consolidated Statements of Operations (Unaudited)	4
	Consolidated Statements of Comprehensive Loss (Unaudited)	5
	Consolidated Statements of Cash Flows (Unaudited)	6
	Consolidated Statements of Stockholders’ Equity (Unaudited)	7
	Notes to Consolidated Financial Statements (Unaudited)	9
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	41
ITEM 4.	Controls and Procedures	44
PART II – OTHER INFORMATION
ITEM 1.	Legal Proceedings	44
ITEM 1A.	Risk Factors	44
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
ITEM 6.	Exhibits	45
	SIGNATURES	46

PART I – FINANCIAL INFORMATION

ITEM 1. Financial Statements

RANGE RESOURCES CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)


	June 30,			December 31,
	2021			2020
Assets	(Unaudited)
Current assets:
Cash and cash equivalents	$	464		$	458
Accounts receivable, less allowance for doubtful accounts of $393 and $3,004		299,590			252,642
Derivative assets		25,865			23,332
Other current assets		13,793			13,408
Total current assets		339,712			289,840
Derivative assets		21,483			16,680
Natural gas properties, successful efforts method		9,973,112			9,751,114
Accumulated depletion and depreciation		(4,239,713	)		(4,064,305	)
		5,733,399			5,686,809
Other property and equipment		80,503			79,878
Accumulated depreciation and amortization		(76,677	)		(75,717	)
		3,826			4,161
Operating lease right-of-use assets		52,291			63,581
Other assets		78,722			75,865
Total assets	$	6,229,433		$	6,136,936

Liabilities
Current liabilities:
Accounts payable	$	144,454		$	132,421
Asset retirement obligations		6,689			6,689
Accrued liabilities		358,640			348,333
Accrued interest		76,909			54,742
Derivative liabilities		249,277			26,707
Divestiture contract obligation		89,950			92,593
Current maturities of long-term debt		—			45,356
Total current liabilities		925,919			706,841
Bank debt		114,025			693,123
Senior notes		2,922,632			2,329,745
Senior subordinated notes		—			17,384
Deferred tax liabilities		134,000			135,267
Derivative liabilities		22,367			9,746
Deferred compensation liabilities		121,010			81,481
Operating lease liabilities		32,770			43,155
Asset retirement obligations and other liabilities		87,336			91,157
Divestiture contract obligation		346,113			391,502
Total liabilities		4,706,172			4,499,401
Commitments and contingencies

Stockholders’ Equity
Preferred stock, $1 par, 10,000,000 shares authorized, none issued and outstanding		—			—
Common stock, $0.01 par, 475,000,000 shares authorized, 259,778,494 issued at June 30, 2021 and 256,353,887 issued at December 31, 2020		2,598			2,563
Common stock held in treasury, 10,004,683 shares at June 30, 2021 and 10,005,795 shares at December 31, 2020		(30,085	)		(30,132	)
Additional paid-in capital		5,699,240			5,684,268
Accumulated other comprehensive loss		(338	)		(479	)
Retained deficit		(4,148,154	)		(4,018,685	)
Total stockholders’ equity		1,523,261			1,637,535
Total liabilities and stockholders’ equity	$	6,229,433		$	6,136,936

The accompanying notes are an integral part of these consolidated financial statements.

RANGE RESOURCES CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)


	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020

Revenues and other income:
Natural gas, NGLs and oil sales	$	621,855		$	349,258		$	1,225,202		$	781,354
Derivative fair value (loss) income		(249,683	)		(6,303	)		(307,562	)		226,872
Brokered natural gas, marketing and other		62,550			33,591			143,114			62,240
Total revenues and other income		434,722			376,546			1,060,754			1,070,466
Costs and expenses:
Direct operating		19,758			24,394			37,408			56,429
Transportation, gathering, processing and compression		282,844			278,875			557,174			563,640
Production and ad valorem taxes		8,414			5,557			13,039			14,576
Brokered natural gas and marketing		69,004			38,161			141,339			70,785
Exploration		5,028			8,027			10,566			15,104
Abandonment and impairment of unproved properties		2,177			5,524			5,206			10,937
General and administrative		40,242			38,288			78,246			80,542
Exit and termination costs		(15,946	)		10,297			(2,232	)		11,892
Deferred compensation plan		35,462			12,587			55,273			4,050
Interest		57,287			48,624			114,165			96,142
Loss (gain) on early extinguishment of debt		63			(8,991	)		98			(21,914	)
Depletion, depreciation and amortization		90,629			104,626			179,012			207,612
Impairment of proved properties		—			—			—			77,000
(Gain) loss on the sale of assets		(2,506	)		426			(646	)		(121,673	)
Total costs and expenses		592,456			566,395			1,188,648			1,065,122
(Loss) income before income taxes		(157,734	)		(189,849	)		(127,894	)		5,344
Income tax expense (benefit):
Current		2,569			(3	)		2,737			(366	)
Deferred		(3,831	)		(22,263	)		(1,310	)		7,098
		(1,262	)		(22,266	)		1,427			6,732
Net loss	$	(156,472	)	$	(167,583	)	$	(129,321	)	$	(1,388	)
Net loss per common share:
Basic	$	(0.65	)	$	(0.70	)	$	(0.53	)	$	(0.01	)
Diluted	$	(0.65	)	$	(0.70	)	$	(0.53	)	$	(0.01	)
Weighted average common shares outstanding:
Basic		242,592			239,472			242,377			242,717
Diluted		242,592			239,472			242,377			242,717

The accompanying notes are an integral part of these consolidated financial statements.

RANGE RESOURCES CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited, in thousands)


	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020

Net loss	$	(156,472	)	$	(167,583	)	$	(129,321	)	$	(1,388	)
Other comprehensive loss:
Postretirement benefits:
Actuarial gain		—			—			—			7
Amortization of prior service costs		92			93			184			185
Income tax expense		(22	)		(22	)		(44	)		(48	)
Total comprehensive loss	$	(156,402	)	$	(167,512	)	$	(129,181	)	$	(1,244	)

The accompanying notes are an integral part of these consolidated financial statements.

RANGE RESOURCES CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)


	Six Months Ended June 30,
	2021			2020

Operating activities:
Net loss	$	(129,321	)	$	(1,388	)
Adjustments to reconcile net loss to net cash provided from operating activities:
Deferred income tax (benefit) expense		(1,310	)		7,098
Depletion, depreciation and amortization and impairment of proved properties		179,012			284,612
Abandonment and impairment of unproved properties		5,206			10,937
Derivative fair value loss (income)		307,562			(226,872	)
Cash settlements on derivative financial instruments		(79,708	)		219,429
Divestiture contract obligation accretion, net of gain		(3,135	)		—
Allowance for bad debt		—			400
Amortization of deferred financing costs and other		4,259			3,398
Deferred and stock-based compensation		75,113			23,113
Gain on the sale of assets		(646	)		(121,673	)
Loss (gain) on early extinguishment of debt		98			(21,914	)
Changes in working capital:
Accounts receivable		(49,138	)		103,390
Other current assets		(879	)		(4,056	)
Accounts payable		21,240			(27,353	)
Accrued liabilities and other		(44,918	)		(45,853	)
Net cash provided from operating activities		283,435			203,268
Investing activities:
Additions to natural gas properties		(205,923	)		(254,073	)
Additions to field service assets		(652	)		(1,851	)
Acreage purchases		(15,917	)		(14,486	)
Proceeds from disposal of assets		195			1,071
Purchases of marketable securities held by the deferred compensation plan		(21,868	)		(11,509	)
Proceeds from the sales of marketable securities held by the deferred compensation plan		25,640			16,489
Net cash used in investing activities		(218,525	)		(264,359	)
Financing activities:
Borrowings on credit facilities		883,000			1,045,000
Repayments on credit facilities		(1,464,000	)		(883,000	)
Issuance of senior notes		600,000			550,000
Repayment of senior or senior subordinated notes		(63,324	)		(617,982	)
Treasury stock purchases		—			(22,992	)
Debt issuance costs		(8,591	)		(8,360	)
Taxes paid for shares withheld		(9,249	)		(2,352	)
Change in cash overdrafts		(7,672	)		657
Proceeds from the sales of common stock held by the deferred compensation plan		4,932			142
Net cash (used in) provided from financing activities		(64,904	)		61,113
Increase in cash and cash equivalents		6			22
Cash and cash equivalents at beginning of period		458			546
Cash and cash equivalents at end of period	$	464		$	568

The accompanying notes are an integral part of these consolidated financial statements.

RANGE RESOURCES CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited, in thousands)

Fiscal Year 2021

Common

Accumulated

stock

Additional

other

Common stock

held in

paid-in

Retained

comprehensive

Par value

treasury

capital

deficit