UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
(Mark one)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
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:
(Exact Name of Registrant as Specified in Its Charter)
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(State or Other Jurisdiction of Incorporation or Organization) |
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(IRS Employer Identification No.) |
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(Address of Principal Executive Offices) |
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Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
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Registrant’s telephone number, including area code
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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.
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).
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.
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Accelerated Filer |
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Non-Accelerated Filer |
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Smaller Reporting Company |
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Emerging Growth Company |
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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. |
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No
1
RANGE RESOURCES CORPORATION
FORM 10-Q
Quarter Ended March 31, 2023
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 2022 Annual Report on Form 10-K.
TABLE OF CONTENTS
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Page |
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ITEM 1. |
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3 |
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3 |
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4 |
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Consolidated Statements of Comprehensive Income (Loss) (Unaudited) |
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6 |
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7 |
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ITEM 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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ITEM 3. |
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36 |
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ITEM 4. |
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38 |
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38 |
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ITEM 1. |
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38 |
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ITEM 1A. |
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38 |
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ITEM 2. |
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39 |
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ITEM 6. |
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40 |
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41 |
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2
PART I – FINANCIAL INFORMATION
ITEM 1. Financial Statements
RANGE RESOURCES CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
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March 31, |
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December 31, |
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2023 |
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2022 |
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Assets |
(Unaudited) |
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Current assets: |
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Cash and cash equivalents |
$ |
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$ |
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Accounts receivable, less allowance for doubtful accounts of $ |
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Contingent consideration receivable |
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Derivative assets |
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Other current assets |
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Total current assets |
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Derivative assets |
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Natural gas properties, successful efforts method |
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Accumulated depletion and depreciation |
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Other property and equipment |
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Accumulated depreciation and amortization |
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Operating lease right-of-use assets |
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Other assets |
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Total assets |
$ |
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$ |
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Liabilities |
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Current liabilities: |
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Accounts payable |
$ |
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$ |
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Asset retirement obligations |
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Accrued liabilities |
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Deferred compensation liabilities |
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Accrued interest |
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Divestiture contract obligation |
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Derivative liabilities |
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Total current liabilities |
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Bank debt |
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Senior notes |
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Deferred tax liabilities |
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Derivative liabilities |
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Deferred compensation liabilities |
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Operating lease liabilities |
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Asset retirement obligations and other liabilities |
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Divestiture contract obligation |
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Total liabilities |
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Stockholders’ Equity |
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Preferred stock, $ |
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Common stock, $ |
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Common stock held in treasury, |
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Additional paid-in capital |
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Accumulated other comprehensive income |
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Retained deficit |
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Total stockholders' equity |
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Total liabilities and stockholders’ equity |
$ |
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$ |
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The accompanying notes are an integral part of these consolidated financial statements.
3
RANGE RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
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Three Months Ended March 31, |
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2023 |
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2022 |
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Revenues and other income: |
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Natural gas, NGLs and oil sales |
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$ |
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$ |
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Derivative fair value income (loss) |
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Brokered natural gas, marketing and other |
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Total revenues and other income |
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Costs and expenses: |
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Direct operating |
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Transportation, gathering, processing and compression |
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Taxes other than income |
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Brokered natural gas and marketing |
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Exploration |
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Abandonment and impairment of unproved properties |
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General and administrative |
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Exit costs |
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Deferred compensation plan |
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Interest |
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Loss on early extinguishment of debt |
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Depletion, depreciation and amortization |
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Gain on the sale of assets |
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Total costs and expenses |
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Income (loss) before income taxes |
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Income tax expense (benefit): |
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Current |
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Deferred |
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Net income (loss) |
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$ |
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$ |
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Net income (loss) per common share: |
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Basic |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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Dividends declared per share |
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$ |
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$ |
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Weighted average common shares outstanding: |
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Basic |
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Diluted |
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The accompanying notes are an integral part of these consolidated financial statements.
4
RANGE RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited, in thousands)
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Three Months Ended March 31, |
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2023 |
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2022 |
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Net income (loss) |
$ |
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$ |
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Other comprehensive income: |
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Postretirement benefits: |
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Amortization of prior service costs/actuarial gain |
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Income tax (benefit) expense |
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Total comprehensive income (loss) |
$ |
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$ |
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The accompanying notes are an integral part of these consolidated financial statements.
5
RANGE RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
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Three Months Ended March 31, |
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2023 |
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2022 |
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Operating activities: |
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Net income (loss) |
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$ |
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$ |
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Adjustments to reconcile net loss to net cash provided from operating activities: |
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Deferred income tax expense (benefit) |
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Depletion, depreciation and amortization and impairment of proved properties |
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Abandonment and impairment of unproved properties |
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Derivative fair value (income) loss |
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Cash settlements on derivative financial instruments |
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Divestiture contract obligation, including accretion, net of gain |
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Amortization of deferred financing costs and other |
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Deferred and stock-based compensation |
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Gain on the sale of assets |
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Loss on early extinguishment of debt |
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Changes in working capital: |
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Accounts receivable |
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Other current assets |
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Accounts payable |
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Accrued liabilities and other |
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Net cash provided from operating activities |
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Investing activities: |
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Additions to natural gas properties |
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Additions to field service assets |
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Acreage purchases |
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Proceeds from disposal of assets |
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Purchases of marketable securities held by the deferred compensation plan |
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Proceeds from the sales of marketable securities held by the deferred |
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Net cash used in investing activities |
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Financing activities: |
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Borrowings on credit facilities |
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Repayments on credit facilities |
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Issuance of senior notes |
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Repayment of senior notes |
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Dividends paid |
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Treasury stock purchases |
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Debt issuance costs |
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Taxes paid for shares withheld |
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Change in cash overdrafts |
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Proceeds from the sales of common stock held by the deferred compensation |
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Net cash used in financing activities |
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Increase (decrease) in cash and cash equivalents |
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Cash and cash equivalents at beginning of period |
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Cash and cash equivalents at end of period |
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$ |
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$ |
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The accompanying notes are an integral part of these consolidated financial statements.
6
RANGE RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited, in thousands, except per share data)
Fiscal Year 2023 |
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Common |
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Accumulated |
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stock |
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Additional |
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other |
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Common stock |
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Treasury |
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held in |
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paid-in |
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Retained |
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comprehensive |
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Shares |
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Par value |
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shares |
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treasury |
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capital |
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deficit |
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income |
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Total |
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Balance as of December 31, 2022 |
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$ |
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$ |
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$ |
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$ |
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$ |
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$ |
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Issuance of common stock |
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— |
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Issuance of common stock upon |
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— |
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Stock-based compensation |
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— |
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— |
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Cash dividends paid ($ |
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— |
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— |
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— |
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Treasury stock |
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Excise tax on stock repurchases |
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— |
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— |
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— |
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— |
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— |
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Other comprehensive income |
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— |
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— |
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