8-K
0000315852false00003158522024-10-222024-10-22

 

 

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): October 23, 2024 (October 22, 2024)

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 October 22, 2024 Range Resources Corporation issued a press release announcing its third quarter 2024 results. A copy of this press release is being furnished as an exhibit to this report on Form 8-K.

ITEM 9.01 Financial Statements and Exhibits

(d) Exhibits:

99.1 Press Release dated October 23, 2024

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

 

Executive Vice President and Chief Financial Officer

Date: October 23, 2024

 

 

 

 

3


EX-99.1

Exhibit 99.1

NEWS RELEASE

 

Range Announces Third Quarter 2024 Results

 

FORT WORTH, TEXAS, October 22, 2024…RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its third quarter 2024 financial results.

 

Third Quarter 2024 Highlights –

 

Cash flow from operating activities of $246 million
Cash flow from operations, before working capital changes, of $250 million
Capital spending of $156 million, approximately 24% of the 2024 budget
Pre-hedge NGL realizations of $25.96 per barrel – premium of $4.10 over Mont Belvieu equivalent
Natural gas differentials, including basis hedging, averaged ($0.50) per mcf to NYMEX
Production averaged 2.20 Bcfe per day, approximately 68% natural gas
Repurchased 800,000 shares at an average of $30.10 per share

 

 

Dennis Degner, the Company’s CEO, commented, “This month marks the 20th anniversary of Range drilling the first commercial Marcellus shale well. The Marcellus and Utica now produce nearly one-third of U.S. natural gas, and the U.S. has become the leading global supplier of safe, clean, affordable natural gas. We are tremendously proud of the role Range has played in this hugely impactful achievement and we are even more excited about what the future holds as global energy demand increases, improving the quality of life for billions of people living in energy poverty. We expect the lowest cost, lowest emissions intensity natural gas producers, like Range, will play an increasingly important role in meeting that growing demand.

 

Range has successfully demonstrated the economic durability and sustainability of its high-quality inventory through recent years’ commodity cycles. Despite cyclically low natural gas prices in the third quarter, Range once again returned capital to shareholders, invested in the business and further strengthened our financial position. With an advantaged full-cycle cost structure and an inventory measured in decades, we believe Range is well-positioned to grow its presence as a reliable energy provider while consistently delivering value to shareholders.”

 

Financial Discussion

 

Except for generally accepted accounting principles (“GAAP”) reported amounts, specific expense categories exclude non-cash impairments, unrealized mark-to-market adjustment on derivatives, non-cash stock compensation and other items shown separately on the attached tables. “Unit costs” as used in this release are composed of direct operating, transportation, gathering, processing and compression, taxes other than income, general and administrative, interest and depletion, depreciation and amortization costs divided by production. See “Non-GAAP Financial Measures” for a definition of non-GAAP financial measures and the accompanying tables that reconcile each non-GAAP measure to its most directly comparable GAAP financial measure.

 

 

Third Quarter 2024 Results

 

GAAP revenues and other income for third quarter 2024 totaled $615 million, GAAP net cash provided from operating activities (including changes in working capital) was $246 million, and GAAP net income was $51 million ($0.21 per diluted share). Third quarter earnings results include a $47 million mark-to-market derivative gain due to decreases in commodity prices.

 

Non-GAAP revenues for third quarter 2024 totaled $680 million, and cash flow from operations before changes in working capital, a non-GAAP measure, was $250 million. Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $117 million ($0.48 per diluted share) in third quarter 2024.

 


 

 

 

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

 

 

Expenses

 

3Q 2024

(per mcfe)

 

3Q 2023

(per mcfe)

 

 

 Increase (Decrease)

 

 

 

 

 

 

 

 

Direct operating(a)

 

$ 0.12

 

$ 0.11

 

 

9%

Transportation, gathering,

    processing and compression(a)

 

    1.51

 

    1.42

 

 

6%

Taxes other than income

 

    0.03

 

    0.02

 

 

50%

General and administrative(a)

 

    0.16

 

    0.15

 

 

7%

Interest expense(a)

 

    0.14

 

    0.15

 

 

(7%)

        Total cash unit costs(b)

 

    1.96

 

    1.86

 

 

5%

Depletion, depreciation and

    amortization (DD&A)

 

    0.45

 

    0.45

 

 

        0%

        Total unit costs plus DD&A(b)

 

$ 2.41

 

$ 2.31

 

 

4%

 

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

 

 

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

 

 

3Q24 Production & Realized Pricing

 

Natural Gas

(mcf)

 

Oil (bbl)

 

NGLs

(bbl)

 

Natural Gas

Equivalent (mcfe)

 

 

 

 

 

Net production per day

 

1,502,106

 

5,594

 

111,465

 

2,204,460

 

 

 

 

 

 

 

 

 

Average NYMEX price

$ 2.16

 

$75.58

 

$ 21.86

 

 

Differential, including basis hedging

(0.50)

 

(11.55)

 

4.10

 

 

Realized prices before NYMEX hedges

1.66

 

64.03

 

25.96

 

2.61

Settled NYMEX hedges

0.82

 

5.70

 

0.14

 

0.58

Average realized prices after hedges

$ 2.48

 

$ 69.73

 

$ 26.09

 

$ 3.18

 

(a)
Totals may not be exact due to rounding

 

 

Third quarter 2024 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $3.18 per mcfe.

 

The average natural gas price, including the impact of basis hedging, was $1.66 per mcf, or a ($0.50) per mcf differential to NYMEX. The Company is improving its full-year 2024 natural gas differentials versus NYMEX to a range of ($0.39) to ($0.40) per mcf.
Range’s pre-hedge NGL price during the quarter was $25.96 per barrel, approximately $4.10 above the Mont Belvieu weighted equivalent. The Company is improving it full year NGL differentials to a premium of +$2.10 - +$2.35 for the year, implying fourth quarter 2024 differentials in the +$1.00 to +$2.00 range.
Crude oil and condensate price realizations, before realized hedges, averaged $64.03 per barrel, or $11.55 below WTI (West Texas Intermediate). Range continues to expect condensate differentials to average $10.00-$13.00 below WTI.

 

 


 

 

 

Capital Expenditures and Operational Activity

 

Third quarter 2024 drilling and completion expenditures were $146 million. In addition, during the quarter, approximately $10 million was invested in acreage leasehold, gathering systems and other. Total capital spending through third quarter was $501 million, representing approximately 76% of Range’s capital budget for 2024.

The table below summarizes expected 2024 activity. Two wells in northeast Pennsylvania originally scheduled to turn-in-line (TIL) in mid-2024 have been completed but are now scheduled to TIL in early 2025 to maximize water recycling savings and take advantage of expected natural gas price improvements.

 

 

 

 

YTD Wells TIL 3Q 2024

 

Remaining

2024

 

2024

Planned TIL

SW PA Super-Rich

9

 

9

SW PA Wet

18

9

 

27

SW PA Dry

3

8

 

11

NE PA Dry

 

 

 

 

Total Wells

30

17

 

47

 

 

Financial Position and Repurchase Activity

 

As of September 30, 2024, Range had net debt outstanding of approximately $1.44 billion, consisting of $1.72 billion of senior notes and $277 million in cash. During the third quarter, Range repurchased in the open market $3.0 million principal amount of 4.875% senior notes due 2025 at a discount.

 

During the third quarter, Range repurchased 800,000 shares at an average price of approximately $30.10. The Company has approximately $1.0 billion of availability under the share repurchase program.

 

 

Guidance – 2024

 

Updated Capital & Production Guidance

 

Range’s 2024 all-in capital budget is $645 million - $670 million. Annual production is now expected to be ~2.17 Bcfe per day for 2024, an increase of approximately 2% over the last three years of maintenance as a result of well performance and optimized gathering and compression. Liquids are expected to be over 30% of production.

 

 

Updated Full Year 2024 Expense Guidance

 

Direct operating expense:

$0.11 - $0.12 per mcfe

Transportation, gathering, processing and compression expense:

$1.48 - $1.50 per mcfe

Taxes other than income:

$0.03 - $0.04 per mcfe

Exploration expense:

$22 - $28 million

G&A expense:

$0.17 - $0.18 per mcfe

Net Interest expense:

$0.13 - $0.14 per mcfe

DD&A expense:

$0.45 - $0.46 per mcfe

Net brokered gas marketing expense:

$8 - $12 million

Updated 2024 Price Guidance

 

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

 

 


 

FY 2024 Natural Gas:(1)

NYMEX minus $0.39 to $0.40

FY 2024 Natural Gas Liquids:(2)

MB plus $2.10 to $2.35 per barrel

FY 2024 Oil/Condensate:

WTI minus $10.00 to $13.00

 

(1) Including basis hedging

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

 

Hedging Status

 

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

 

Range has also hedged basis across the Company’s numerous natural gas sales points to limit volatility between benchmark and regional prices. The combined fair value of natural gas basis hedges as of September 30, 2024, was a net loss of $16.9 million.

 

 

Conference Call Information

 

A conference call to review the financial results is scheduled on Wednesday, October 23 at 8:00 AM Central Time (9:00 AM Eastern Time). Please click here to pre-register for the conference call and obtain a dial in number with passcode.

 

A simultaneous webcast of the call may be accessed at www.rangeresources.com. The webcast will be archived for replay on the Company's website until November 23rd.

 

 

Non-GAAP Financial Measures

 

To supplement the presentation of its financial results prepared in accordance with generally accepted accounting principles (GAAP), the Company’s earnings press release contains certain financial measures that are not presented in accordance with GAAP. Management believes certain non-GAAP measures may provide financial statement users with meaningful supplemental information for comparisons within the industry. These non-GAAP financial measures may include, but are not limited to Net Income, excluding certain items, Cash flow from operations before changes in working capital, realized prices, Net debt and Cash margin.

 

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

 

Cash flow from operations before changes in working capital 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 (sometimes referred to as “adjusted cash flow”) is widely accepted by the investment community as a financial indicator of an oil and gas company’s ability to generate cash to internally fund exploration and development activities and to service debt. Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations,

 


 

investing, or financing activities as an indicator of cash flows, or as a measure of liquidity. A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release. On its website, the Company provides additional comparative information on prior periods for cash flow, cash margins and non-GAAP earnings as used in this release.

 

The cash prices realized for oil and natural gas production, including the amounts realized on cash-settled derivatives and net of transportation, gathering, processing and compression expense, is a critical component in the Company’s performance tracked by investors and professional research analysts in valuing, comparing, rating and providing investment recommendations and forecasts of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Due to the GAAP disclosures of various derivative transactions and third-party transportation, gathering, processing and compression expense, such information is now reported in various lines of the income statement. The Company believes that it is important to furnish a table reflecting the details of the various components of each income statement line to better inform the reader of the details of each amount and provide a summary of the realized cash-settled amounts and third-party transportation, gathering, processing and compression expense, which were historically reported as natural gas, NGLs and oil sales. This information is intended to bridge the gap between various readers’ understanding and fully disclose the information needed.

 

Net debt is calculated as total debt less cash and cash equivalents. The Company believes this measure is helpful to investors and industry analysts who utilize Net debt for comparative purposes across the industry.

 

The Company discloses in this release the detailed components of many of the single line items shown in the GAAP financial statements included in the Company’s Annual or Quarterly Reports on Form 10-K or 10-Q. The Company believes that it is important to furnish this detail of the various components comprising each line of the Statements of Operations to better inform the reader of the details of each amount, the changes between periods and the effect on its financial results.

We believe that the presentation of PV10 value of our proved reserves is a relevant and useful metric for our investors as supplemental disclosure to the standardized measure, or after-tax amount, because it presents the discounted future net cash flows attributable to our proved reserves before taking into account future corporate income taxes and our current tax structure. While the standardized measure is dependent on the unique tax situation of each company, PV10 is based on prices and discount factors that are consistent for all companies. Because of this, PV10 can be used within the industry and by credit and security analysts to evaluate estimated net cash flows from proved reserves on a more comparable basis.

 

RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused in the Appalachian Basin. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com.

 

Included within this release are certain “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not limited to historical facts, but reflect Range’s current beliefs, expectations or intentions regarding future events. Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “outlook”, “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements.

 

All statements, except for statements of historical fact, made within regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as those regarding future well costs, expected asset sales, well productivity, future liquidity and financial resilience, anticipated exports and related financial impact, NGL market supply and demand, future commodity fundamentals and pricing, future capital efficiencies, future shareholder value, emerging plays, capital spending, anticipated drilling and completion activity, acreage prospectivity, expected pipeline utilization and future guidance information, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and Range's future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements. Further information on risks and uncertainties is available in Range's filings with the Securities and Exchange Commission (SEC), including its most

 


 

recent Annual Report on Form 10-K. Unless required by law, Range undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.

 

The SEC permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions as well as the option to disclose probable and possible reserves. Range has elected not to disclose its probable and possible reserves in its filings with the SEC. Range uses certain broader terms such as "resource potential,” “unrisked resource potential,” "unproved resource potential" or "upside" or other descriptions of volumes of resources potentially recoverable through additional drilling or recovery techniques that may include probable and possible reserves as defined by the SEC's guidelines. Range has not attempted to distinguish probable and possible reserves from these broader classifications. The SEC’s rules prohibit us from including in filings with the SEC these broader classifications of reserves. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of actually being realized. Unproved resource potential refers to Range's internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques and have not been reviewed by independent engineers. Unproved resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer's Petroleum Resource Management System and does not include proved reserves. Area wide unproven resource potential has not been fully risked by Range's management. “EUR”, or estimated ultimate recovery, refers to our management’s estimates of hydrocarbon quantities that may be recovered from a well completed as a producer in the area. These quantities may not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System or the SEC’s oil and natural gas disclosure rules. Actual quantities that may be recovered from Range's interests could differ substantially. Factors affecting ultimate recovery include the scope of Range's drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors. Estimates of resource potential may change significantly as development of our resource plays provides additional data.

 

In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price or drilling cost changes. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K on the SEC’s website at www.sec.gov or by calling the SEC at 1-800-SEC-0330.

 

 

 

SOURCE: Range Resources Corporation

 

Range Investor Contact:

 

Laith Sando, Vice President – Investor Relations

817-869-4267

lsando@rangeresources.com

 

Range Media Contact:

 

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

 

 

 


 

RANGE RESOURCES CORPORATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on GAAP reported earnings with additional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2024

 

 

2023

 

 

%

 

 

2024

 

 

2023

 

 

%

 

Revenues and other income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas, NGLs and oil sales (a)

$

533,277

 

 

$

526,718

 

 

 

 

 

$

1,578,728

 

 

$

1,731,382

 

 

 

 

Derivative fair value income

 

47,124

 

 

 

38,394

 

 

 

 

 

 

110,530

 

 

 

530,095

 

 

 

 

Brokered natural gas, marketing and other (b)

 

31,289

 

 

 

43,325

 

 

 

 

 

 

91,513

 

 

 

162,092

 

 

 

 

ARO settlement loss (b)

 

-

 

 

 

(1

)

 

 

 

 

 

(26

)

 

 

(1

)

 

 

 

Interest income (b)

 

3,188

 

 

 

1,279

 

 

 

 

 

 

9,507

 

 

 

4,016

 

 

 

 

Other (b)

 

155

 

 

 

9

 

 

 

 

 

 

193

 

 

 

5,477

 

 

 

 

Total revenues and other income

 

615,033

 

 

 

609,724

 

 

 

1

%

 

 

1,790,445

 

 

 

2,433,061

 

 

 

-26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

24,799

 

 

 

22,123

 

 

 

 

 

 

68,744

 

 

 

72,162

 

 

 

 

Direct operating - stock-based compensation (c)

 

486

 

 

 

439

 

 

 

 

 

 

1,454

 

 

 

1,280

 

 

 

 

Transportation, gathering, processing and compression

 

306,154

 

 

 

277,207

 

 

 

 

 

 

878,524

 

 

 

830,880

 

 

 

 

Taxes other than income

 

5,117

 

 

 

4,756

 

 

 

 

 

 

15,459

 

 

 

19,643

 

 

 

 

Brokered natural gas and marketing

 

32,017

 

 

 

45,723

 

 

 

 

 

 

96,425

 

 

 

156,470

 

 

 

 

Brokered natural gas and marketing - stock-based compensation (c)

 

571

 

 

 

483

 

 

 

 

 

 

1,862

 

 

 

1,604

 

 

 

 

Exploration

 

6,988

 

 

 

6,658

 

 

 

 

 

 

17,506

 

 

 

18,087

 

 

 

 

Exploration - stock-based compensation (c)

 

346

 

 

 

312

 

 

 

 

 

 

1,005

 

 

 

935

 

 

 

 

Abandonment and impairment of unproved properties

 

4,723

 

 

 

11,012

 

 

 

 

 

 

8,618

 

 

 

44,308

 

 

 

 

General and administrative

 

32,674

 

 

 

29,581

 

 

 

 

 

 

97,818

 

 

 

93,366

 

 

 

 

General and administrative - stock-based compensation (c)

 

8,639

 

 

 

8,446

 

 

 

 

 

 

27,099

 

 

 

26,461

 

 

 

 

General and administrative - lawsuit settlements

 

213

 

 

 

66

 

 

 

 

 

 

691

 

 

 

938

 

 

 

 

Exit costs

 

7,649

 

 

 

10,684

 

 

 

 

 

 

28,058

 

 

 

71,661

 

 

 

 

Deferred compensation plan (d)

 

(1,930

)

 

 

8,997

 

 

 

 

 

 

5,715

 

 

 

29,546

 

 

 

 

Interest expense

 

27,958

 

 

 

29,260

 

 

 

 

 

 

85,430

 

 

 

89,886

 

 

 

 

Interest expense - amortization of deferred financing costs (e)

 

1,343

 

 

 

1,339

 

 

 

 

 

 

4,060

 

 

 

4,032

 

 

 

 

Gain on early extinguishment of debt

 

(11

)

 

 

-

 

 

 

 

 

 

(254

)

 

 

(439

)

 

 

 

Depletion, depreciation and amortization

 

91,137

 

 

 

87,619

 

 

 

 

 

 

265,872

 

 

 

259,197

 

 

 

 

Gain on sale of assets

 

(69

)

 

 

(109

)

 

 

 

 

 

(222

)

 

 

(353

)

 

 

 

Total costs and expenses

 

548,804

 

 

 

544,596

 

 

 

1

%

 

 

1,603,864

 

 

 

1,719,664

 

 

 

-7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

66,229

 

 

 

65,128

 

 

 

2

%

 

 

186,581

 

 

 

713,397

 

 

 

-74

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

1,282

 

 

 

601

 

 

 

 

 

 

5,263

 

 

 

3,000

 

 

 

 

Deferred

 

14,291

 

 

 

15,097

 

 

 

 

 

 

9,820

 

 

 

149,289

 

 

 

 

 

 

15,573

 

 

 

15,698

 

 

 

 

 

 

15,083

 

 

 

152,289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

50,656

 

 

$

49,430

 

 

 

2

%

 

$

171,498

 

 

$

561,108

 

 

 

-69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.21

 

 

$

0.20

 

 

 

 

 

$

0.71

 

 

$

2.30

 

 

 

 

Diluted

$

0.21

 

 

$

0.20

 

 

 

 

 

$

0.70

 

 

$

2.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, as reported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

240,865

 

 

 

241,338

 

 

 

0

%

 

 

240,832

 

 

 

239,455

 

 

 

1

%

Diluted

 

242,623

 

 

 

243,937

 

 

 

-1

%

 

 

242,802

 

 

 

242,144

 

 

 

0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) See separate natural gas, NGLs and oil sales information table.

 

(b) Included in Brokered natural gas, marketing and other revenues in the 10-Q.

 

(c) Costs associated with stock compensation and restricted stock amortization, which have been reflected

 

  in the categories associated with the direct personnel costs, which are combined with the cash costs in the 10-Q.

 

(d) Reflects the change in market value of the vested Company stock held in the deferred compensation plan.

 

(e) Included in interest expense in the 10-Q.

 

 

 


 

RANGE RESOURCES CORPORATION

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

 

 

 

(In thousands)

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

 

(Unaudited)

 

 

(Audited)

 

Assets

 

 

 

 

 

Current assets

$

495,220

 

 

$

528,794

 

Derivative assets

 

197,810

 

 

 

442,971

 

Natural gas and oil properties, successful efforts method

 

6,348,836

 

 

 

6,117,681

 

Other property and equipment

 

2,084

 

 

 

1,696

 

Operating lease right-of-use assets

 

118,988

 

 

 

23,821

 

Other

 

78,365

 

 

 

88,922

 

         Total assets

$

7,241,303

 

 

$

7,203,885

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

Current liabilities

$

1,214,860

 

 

$

580,469

 

Asset retirement obligations

 

2,395

 

 

 

2,395

 

Derivative liabilities

 

6,649

 

 

 

222

 

Senior notes

 

1,089,131

 

 

 

1,774,229

 

Deferred tax liabilities

 

571,095

 

 

 

561,288

 

Derivative liabilities

 

684

 

 

 

107

 

Deferred compensation liabilities

 

62,883

 

 

 

72,976

 

Operating lease liabilities

 

30,811

 

 

 

16,064

 

Asset retirement obligations and other liabilities

 

123,406

 

 

 

119,896

 

Divestiture contract obligation

 

271,302

 

 

 

310,688

 

    Total liabilities

3,373,216

 

 

3,438,334

 

 

 

 

 

 

 

Common stock and retained deficit

 

4,360,303

 

 

 

4,213,585

 

Other comprehensive income

 

600

 

 

 

647

 

Common stock held in treasury

 

(492,816

)

 

 

(448,681

)

Total stockholders' equity

 

3,868,087

 

 

 

3,765,551

 

 

$

7,241,303

 

 

$

7,203,885

 

 

 

RECONCILIATION OF TOTAL DEBT AS REPORTED

 

 

 

 

 

 

 

 

TO NET DEBT, a non-GAAP measure

 

 

 

 

 

 

 

 

(Unaudited, in thousands)

 

 

 

 

 

 

 

 

 

September 30,

 

 

December 31,

 

 

 

 

 

2024

 

 

2023

 

 

%

 

 

 

 

 

 

 

 

 

 

Total debt, net of deferred financing costs, as reported

$

1,706,514

 

 

$

1,774,229

 

 

 

-4

%

Unamortized debt issuance costs, as reported

 

11,626

 

 

 

14,159

 

 

 

 

Less cash and cash equivalents, as reported

 

(277,450

)

 

 

(211,974

)

 

 

 

Net debt, a non-GAAP measure

$

1,440,690

 

 

$

1,576,414

 

 

 

-9

%

 

 

RECONCILIATION OF TOTAL REVENUES AND

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME TO TOTAL REVENUES AS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED, a non-GAAP measure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2024

 

 

2023

 

 

%

 

 

2024

 

 

2023

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and other income, as reported

$

615,033

 

 

$

609,724

 

 

 

1

%

 

$

1,790,445

 

 

$

2,433,061

 

 

 

-26

%

Adjustment for certain special items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total change in fair value related to derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 prior to settlement loss (gain)

 

65,141

 

 

 

39,048

 

 

 

 

 

 

252,165

 

 

 

(341,599

)

 

 

 

ARO settlement loss

 

-

 

 

 

1

 

 

 

 

 

 

26

 

 

 

1

 

 

 

 

Total revenues, as adjusted, non-GAAP

$

680,174

 

 

$

648,773

 

 

 

5

%

 

$

2,042,636

 

 

$

2,091,463

 

 

 

-2

%

 

 

 

 

 


 

RANGE RESOURCES CORPORATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

50,656

 

 

 

49,430

 

 

 

171,498

 

 

 

561,108

 

Adjustments to reconcile net cash provided from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

Deferred income tax expense

 

14,291

 

 

 

15,097

 

 

 

9,820

 

 

 

149,289

 

Depletion, depreciation and amortization

 

91,137

 

 

 

87,619

 

 

 

265,872

 

 

 

259,197

 

Abandonment and impairment of unproved properties

 

4,723

 

 

 

11,012

 

 

 

8,618

 

 

 

44,308

 

Derivative fair value income

 

(47,124

)

 

 

(38,394

)

 

 

(110,530

)

 

 

(530,095

)

Cash settlements on derivative financial instruments

 

112,265

 

 

 

77,442

 

 

 

362,695

 

 

 

188,496

 

Divestiture contract obligation, including accretion

 

7,604

 

 

 

10,606

 

 

 

27,933

 

 

 

71,380

 

Allowance for bad debts

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Amortization of deferred financing costs and other

 

927

 

 

 

997

 

 

 

3,352

 

 

 

3,591

 

Deferred and stock-based compensation

 

8,260

 

 

 

18,763

 

 

 

37,597

 

 

 

60,166

 

Gain on sale of assets

 

(69

)

 

 

(109

)

 

 

(222

)

 

 

(353

)

Gain on early extinguishment of debt

 

(11

)

 

 

-

 

 

 

(254

)

 

 

(439

)

 

 

 

 

 

 

 

 

 

 

 

 

Changes in working capital:

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

24,617

 

 

 

(29,566

)

 

 

101,530

 

 

 

288,415

 

Other current assets

 

20,596

 

 

 

(6,522

)

 

 

(1,809

)

 

 

(9,520

)

Accounts payable

 

(21,334

)

 

 

(8,147

)

 

 

(27,052

)

 

 

(84,291

)

Accrued liabilities and other

 

(20,619

)

 

 

(37,976

)

 

 

(122,424

)

 

 

(249,455

)

Net changes in working capital

 

3,260

 

 

 

(82,211

)

 

 

(49,755

)

 

 

(54,851

)

Net cash provided from operating activities

 

245,919

 

 

 

150,252

 

 

 

726,624

 

 

 

751,797

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

September 30,

 

 

Nine Months Ended

September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net cash provided from operating activities, as reported

$

245,919

 

 

$

150,252

 

 

$

726,624

 

 

$

751,797

 

Net changes in working capital

 

(3,260

)

 

 

82,211

 

 

 

49,755

 

 

 

54,851

 

Exploration expense

 

6,988

 

 

 

6,658

 

 

 

17,506

 

 

 

18,087

 

Lawsuit settlements

 

213

 

 

 

66

 

 

 

691

 

 

 

938

 

Non-cash compensation adjustment and other

 

313

 

 

 

335

 

 

 

397

 

 

 

383

 

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

$

250,173

 

 

$

239,522

 

 

$

794,973

 

 

$

826,056

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

241,676

 

 

 

244,446

 

 

 

242,133

 

 

 

244,179

 

Stock held by deferred compensation plan

 

(811

)

 

 

(3,108

)

 

 

(1,301

)

 

 

(4,724

)

Adjusted basic

 

240,865

 

 

 

241,338

 

 

 

240,832

 

 

 

239,455

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive:

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

241,676

 

 

 

244,446

 

 

 

242,133

 

 

 

244,179

 

Dilutive stock options under treasury method

 

947

 

 

 

(509

)

 

 

669

 

 

 

(2,035

)

Adjusted dilutive

 

242,623

 

 

 

243,937

 

 

 

242,802

 

 

 

242,144

 

 

 


 

RANGE RESOURCES CORPORATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES AND

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DERIVATIVE FAIR VALUE INCOME (LOSS) TO CALCULATED CASH

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REALIZED NATURAL GAS, NGLs AND OIL PRICES WITH AND

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WITHOUT THIRD-PARTY TRANSPORTATION, GATHERING,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROCESSING AND COMPRESSION COSTS, a non-GAAP measure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, In thousands, except per unit data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2024

 

 

2023

 

 

%

 

 

2024

 

 

2023

 

 

%

 

Natural gas, NGLs and Oil Sales components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

$

234,139

 

 

$

246,976

 

 

 

 

 

$

715,266

 

 

$

913,915

 

 

 

 

NGLs sales

 

266,186

 

 

 

238,211

 

 

 

 

 

 

750,547

 

 

 

695,368

 

 

 

 

Oil sales

 

32,952

 

 

 

41,531

 

 

 

 

 

 

112,915

 

 

 

122,099

 

 

 

 

Total Natural Gas, NGLs and Oil Sales, as reported

$

533,277

 

 

$

526,718

 

 

 

1

%

 

$

1,578,728

 

 

$

1,731,382

 

 

 

-9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Fair Value Income, as reported

$

47,124

 

 

$

38,394

 

 

 

 

 

$

110,530

 

 

$

530,095

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Natural gas

 

(107,923

)

 

 

(82,472

)

 

 

 

 

 

(355,030

)

 

 

(196,847

)

 

 

 

   NGLs

 

(1,409

)

 

 

-

 

 

 

 

 

 

(3,310

)

 

 

-

 

 

 

 

   Oil

 

(2,933

)

 

 

5,030

 

 

 

 

 

 

(4,355

)

 

 

8,351

 

 

 

 

Total change in fair value related to commodity derivatives prior to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

settlement, a non GAAP measure

$

(65,141

)

 

$

(39,048

)

 

 

 

 

$

(252,165

)

 

$

341,599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transportation, gathering, processing and compression components:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas

$

153,063

 

 

$

142,202

 

 

 

 

 

$

456,215

 

 

$

436,912

 

 

 

 

NGLs

 

152,624

 

 

 

134,754

 

 

 

 

 

 

420,975

 

 

 

393,281

 

 

 

 

Oil

 

467

 

 

 

251

 

 

 

 

 

 

1,334

 

 

 

687

 

 

 

 

Total transportation, gathering, processing and compression, as reported

$

306,154

 

 

$

277,207

 

 

 

 

 

$

878,524

 

 

$

830,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

$

342,062

 

 

$

329,448

 

 

 

 

 

$

1,070,296

 

 

$

1,110,762

 

 

 

 

NGLs sales

 

267,595

 

 

 

238,211

 

 

 

 

 

 

753,857

 

 

 

695,368

 

 

 

 

Oil Sales

 

35,885

 

 

 

36,501

 

 

 

 

 

 

117,270

 

 

 

113,748

 

 

 

 

Total

$

645,542

 

 

$

604,160

 

 

 

7

%

 

$

1,941,423

 

 

$

1,919,878

 

 

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas (mcf)

 

138,193,783

 

 

 

133,305,469

 

 

 

4

%

 

 

406,943,086

 

 

 

396,367,927

 

 

 

3

%

NGLs (bbls)

 

10,254,759

 

 

 

9,748,012

 

 

 

5

%

 

 

29,392,292

 

 

 

28,368,181

 

 

 

4

%

Oil (bbls)

 

514,659

 

 

 

587,488

 

 

 

-12

%

 

 

1,717,958

 

 

 

1,818,773

 

 

 

-6

%

Gas equivalent (mcfe) (b)

 

202,810,291

 

 

 

195,318,469

 

 

 

4

%

 

 

593,604,586

 

 

 

577,489,651

 

 

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production of natural gas, NGLs and oil - average per day (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas (mcf)

 

1,502,106

 

 

 

1,448,972

 

 

 

4

%

 

 

1,485,194

 

 

 

1,451,897

 

 

 

2

%

NGLs (bbls)

 

111,465

 

 

 

105,957

 

 

 

5

%

 

 

107,271

 

 

 

103,913

 

 

 

3

%

Oil (bbls)

 

5,594

 

 

 

6,386

 

 

 

-12

%

 

 

6,270

 

 

 

6,662

 

 

 

-6

%

Gas equivalent (mcfe) (b)

 

2,204,460

 

 

 

2,123,027

 

 

 

4

%

 

 

2,166,440

 

 

 

2,115,347

 

 

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average prices, excluding derivative settlements and before third-party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

transportation costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas (per mcf)

$

1.69

 

 

$

1.85

 

 

 

-9

%

 

$

1.76

 

 

$

2.31

 

 

 

-24

%

NGLs (per bbl)

$

25.96

 

 

$

24.44

 

 

 

6

%

 

$

25.54

 

 

$

24.51

 

 

 

4

%

Oil (per bbl)

$

64.03

 

 

$

70.69

 

 

 

-9

%

 

$

65.73

 

 

$

67.13

 

 

 

-2

%

Gas equivalent (per mcfe) (b)

$

2.63

 

 

$

2.70

 

 

 

-3

%

 

$

2.66

 

 

$

3.00

 

 

 

-11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average prices, including derivative settlements before third-party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

transportation costs: (c)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas (per mcf)

$

2.48

 

 

$

2.47

 

 

 

0

%

 

$

2.63

 

 

$

2.80

 

 

 

-6

%

NGLs (per bbl)

$

26.09

 

 

$

24.44

 

 

 

7

%

 

$

25.65

 

 

$

24.51

 

 

 

5

%

Oil (per bbl)

$

69.73

 

 

$

62.13

 

 

 

12

%

 

$

68.26

 

 

$

62.54

 

 

 

9

%

Gas equivalent (per mcfe) (b)

$

3.18

 

 

$

3.09

 

 

 

3

%

 

$

3.27

 

 

$

3.32

 

 

 

-2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average prices, including derivative settlements and after third-party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

transportation costs: (d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas (per mcf)

$

1.37

 

 

$

1.40

 

 

 

-2

%

 

$

1.51

 

 

$

1.70

 

 

 

-11

%

NGLs (per bbl)

$

11.21

 

 

$

10.61

 

 

 

6

%

 

$

11.33

 

 

$

10.65

 

 

 

6

%

Oil (per bbl)

$

68.82

 

 

$

61.70

 

 

 

12

%

 

$

67.49

 

 

$

62.16

 

 

 

9

%

Gas equivalent (per mcfe) (b)

$

1.67

 

 

$

1.67

 

 

 

0

%

 

$

1.79

 

 

$

1.89

 

 

 

-5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transportation, gathering and compression expense per mcfe

$

1.51

 

 

$

1.42

 

 

 

6

%

 

$

1.48

 

 

$

1.44

 

 

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 may not be

 

indicative of the relationship of oil and natural gas prices.

 

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

 

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

 

 

 

 


 

RANGE RESOURCES CORPORATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF INCOME BEFORE INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TAXES AS REPORTED TO INCOME BEFORE INCOME TAXES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXCLUDING CERTAIN ITEMS, a non-GAAP measure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

2024

 

 

2023

 

 

%

 

 

2024

 

 

2023

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations before income taxes, as reported

 

66,229

 

 

 

65,128

 

 

 

2

%

 

 

186,581

 

 

 

713,397

 

 

 

-74

%

Adjustment for certain special items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on the sale of assets

 

(69

)

 

 

(109

)

 

 

 

 

 

(222

)

 

 

(353

)

 

 

 

ARO settlement loss

 

-

 

 

 

1

 

 

 

 

 

 

26

 

 

 

1

 

 

 

 

Change in fair value related to derivatives prior to settlement

 

65,141

 

 

 

39,048

 

 

 

 

 

 

252,165

 

 

 

(341,599

)

 

 

 

Abandonment and impairment of unproved properties

 

4,723

 

 

 

11,012

 

 

 

 

 

 

8,618

 

 

 

44,308

 

 

 

 

Gain on early extinguishment of debt

 

(11

)

 

 

-

 

 

 

 

 

 

(254

)

 

 

(439

)

 

 

 

Lawsuit settlements

 

213

 

 

 

66

 

 

 

 

 

 

691

 

 

 

938

 

 

 

 

Exit costs

 

7,649

 

 

 

10,684

 

 

 

 

 

 

28,058

 

 

 

71,661

 

 

 

 

Brokered natural gas and marketing - stock-based compensation

 

571

 

 

 

483

 

 

 

 

 

 

1,862

 

 

 

1,604

 

 

 

 

Direct operating - stock-based compensation

 

486

 

 

 

439

 

 

 

 

 

 

1,454

 

 

 

1,280

 

 

 

 

Exploration expenses - stock-based compensation

 

346

 

 

 

312

 

 

 

 

 

 

1,005

 

 

 

935

 

 

 

 

General & administrative - stock-based compensation

 

8,639

 

 

 

8,446

 

 

 

 

 

 

27,099

 

 

 

26,461

 

 

 

 

Deferred compensation plan - non-cash adjustment

 

(1,930

)

 

 

8,997

 

 

 

 

 

 

5,715

 

 

 

29,546

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes, as adjusted

 

151,987

 

 

 

144,507

 

 

 

5

%

 

 

512,798

 

 

 

547,740

 

 

 

-6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense, as adjusted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current (a)

 

1,282

 

 

 

601

 

 

 

 

 

 

5,263

 

 

 

3,000

 

 

 

 

Deferred (a)

 

33,675

 

 

 

32,636

 

 

 

 

 

 

112,681

 

 

 

122,981

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income, excluding certain items, a non-GAAP measure

$

117,030

 

 

$

111,270

 

 

 

5

%

 

$

394,854

 

 

$

421,759

 

 

 

-6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP income per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.49

 

 

$

0.46

 

 

 

7

%

 

$

1.64

 

 

$

1.76

 

 

 

-7

%

Diluted

$

0.48

 

 

$

0.46

 

 

 

4

%

 

$

1.63

 

 

$

1.74

 

 

 

-6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted shares outstanding, if dilutive

 

242,623

 

 

 

243,937

 

 

 

 

 

 

242,802

 

 

 

242,144

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Taxes are estimated to be approximately 23% for 2023 and 2024.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

RANGE RESOURCES CORPORATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF NET INCOME, EXCLUDING

 

 

 

 

 

 

 

 

 

 

 

CERTAIN ITEMS AND ADJUSTED EARNINGS PER

 

 

 

 

 

 

 

 

 

 

 

SHARE, non-GAAP measures

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income, as reported

$

50,656

 

 

$

49,430

 

 

$

171,498

 

 

$

561,108

 

Adjustments for certain special items:

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of assets

 

(69

)

 

 

(109

)

 

 

(222

)

 

 

(353

)

ARO settlement loss

 

-

 

 

 

1

 

 

 

26

 

 

 

1

 

Gain on early extinguishment of debt

 

(11

)

 

 

-

 

 

 

(254

)

 

 

(439

)

Change in fair value related to derivatives prior to settlement

 

65,141

 

 

 

39,048

 

 

 

252,165

 

 

 

(341,599

)

Abandonment and impairment of unproved properties

 

4,723

 

 

 

11,012

 

 

 

8,618

 

 

 

44,308

 

Lawsuit settlements

 

213

 

 

 

66

 

 

 

691

 

 

 

938

 

Exit costs

 

7,649

 

 

 

10,684

 

 

 

28,058

 

 

 

71,661

 

Stock-based compensation

 

10,042

 

 

 

9,680

 

 

 

31,420

 

 

 

30,280

 

Deferred compensation plan

 

(1,930

)

 

 

8,997

 

 

 

5,715

 

 

 

29,546

 

Tax impact

 

(19,384

)

 

 

(17,539

)

 

 

(102,861

)

 

 

26,308

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income, excluding certain items, a non-GAAP measure

$

117,030

 

 

$

111,270

 

 

$

394,854

 

 

$

421,759

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per diluted share, as reported

$

0.21

 

 

$

0.20

 

 

$

0.70

 

 

$

2.27

 

Adjustments for certain special items per diluted share:

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of assets

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

ARO settlement loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Gain on early extinguishment of debt

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Change in fair value related to derivatives prior to settlement

 

0.27

 

 

 

0.16

 

 

 

1.04

 

 

 

(1.41

)

Abandonment and impairment of unproved properties

 

0.02

 

 

 

0.05

 

 

 

0.04

 

 

 

0.18

 

Lawsuit settlements

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Exit costs

 

0.03

 

 

 

0.04

 

 

 

0.12

 

 

 

0.30

 

Stock-based compensation

 

0.04

 

 

 

0.04

 

 

 

0.13

 

 

 

0.13

 

Deferred compensation plan

 

(0.01

)

 

 

0.04

 

 

 

0.02

 

 

 

0.12

 

Adjustment for rounding differences

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Tax impact

 

(0.08

)

 

 

(0.07

)

 

 

(0.42

)

 

 

0.11

 

Dilutive share impact (rabbi trust and other)

 

-

 

 

 

-

 

 

 

-

 

 

 

0.04

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per diluted share, excluding certain items, a non-GAAP measure

$

0.48

 

 

$

0.46

 

 

$

1.63

 

 

$

1.74

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings per share, a non-GAAP measure:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.49

 

 

$

0.46

 

 

$

1.64

 

 

$

1.76

 

Diluted

$

0.48

 

 

$

0.46

 

 

$

1.63

 

 

$

1.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

RANGE RESOURCES CORPORATION

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF CASH MARGIN PER MCFE,

 

 

 

 

 

 

 

 

 

 

 

a non-GAAP measure

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, In thousands, except per unit data)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Natural gas, NGLs and oil sales, as reported

$

533,277

 

 

$

526,718

 

 

$

1,578,728

 

 

$

1,731,382

 

Derivative fair value income, as reported

 

47,124

 

 

 

38,394

 

 

 

110,530

 

 

 

530,095

 

Less non-cash fair value loss (gain)

 

65,141

 

 

 

39,048

 

 

 

252,165

 

 

 

(341,599

)

Brokered natural gas and marketing and other, as reported

 

34,632

 

 

 

44,612

 

 

 

101,187

 

 

 

171,584

 

Less ARO settlement

 

-

 

 

 

1

 

 

 

26

 

 

 

1

 

Cash revenues

 

680,174

 

 

 

648,773

 

 

 

2,042,636

 

 

 

2,091,463

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Direct operating, as reported

 

25,285

 

 

 

22,562

 

 

 

70,198

 

 

 

73,442

 

Less direct operating stock-based compensation

 

(486

)

 

 

(439

)

 

 

(1,454

)

 

 

(1,280

)

Transportation, gathering and compression, as reported

 

306,154

 

 

 

277,207

 

 

 

878,524

 

 

 

830,880

 

Taxes other than income, as reported

 

5,117

 

 

 

4,756

 

 

 

15,459

 

 

 

19,643

 

Brokered natural gas and marketing, as reported

 

32,588

 

 

 

46,206

 

 

 

98,287

 

 

 

158,074

 

Less brokered natural gas and marketing stock-based compensation

 

(571

)

 

 

(483

)

 

 

(1,862

)

 

 

(1,604

)

General and administrative, as reported

 

41,526

 

 

 

38,093

 

 

 

125,608

 

 

 

120,765

 

Less G&A stock-based compensation

 

(8,639

)

 

 

(8,446

)

 

 

(27,099

)

 

 

(26,461

)

Less lawsuit settlements

 

(213

)

 

 

(66

)

 

 

(691

)

 

 

(938

)

Interest expense, as reported

 

29,301

 

 

 

30,599

 

 

 

89,490

 

 

 

93,918

 

Less amortization of deferred financing costs

 

(1,343

)

 

 

(1,339

)

 

 

(4,060

)

 

 

(4,032

)

Cash expenses

 

428,719

 

 

 

408,650

 

 

 

1,242,400

 

 

 

1,262,407

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash margin, a non-GAAP measure

$

251,455

 

 

$

240,123

 

 

$

800,236

 

 

$

829,056

 

 

 

 

 

 

 

 

 

 

 

 

 

Mmcfe produced during period

 

202,810

 

 

 

195,319

 

 

 

593,605

 

 

 

577,490

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash margin per mcfe

$

1.24

 

 

$

1.23

 

 

$

1.35

 

 

$

1.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF INCOME BEFORE INCOME TAXES

 

 

 

 

 

 

 

 

 

 

 

TO CASH MARGIN, a non-GAAP measure

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, in thousands, except per unit data)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes, as reported

$

66,229

 

 

$

65,128

 

 

$

186,581

 

 

$

713,397

 

Adjustments to reconcile income before income taxes

 

 

 

 

 

 

 

 

 

 

 

to cash margin:

 

 

 

 

 

 

 

 

 

 

 

ARO settlements

 

-

 

 

 

1

 

 

 

26

 

 

 

1

 

Derivative fair value income

 

(47,124

)

 

 

(38,394

)

 

 

(110,530

)

 

 

(530,095

)

Net cash receipts on derivative settlements

 

112,265

 

 

 

77,442

 

 

 

362,695

 

 

 

188,496

 

Exploration expense

 

6,988

 

 

 

6,658

 

 

 

17,506

 

 

 

18,087

 

Lawsuit settlements

 

213

 

 

 

66

 

 

 

691

 

 

 

938

 

Exit costs

 

7,649

 

 

 

10,684

 

 

 

28,058

 

 

 

71,661

 

Deferred compensation plan

 

(1,930

)

 

 

8,997

 

 

 

5,715

 

 

 

29,546

 

Stock-based compensation (direct operating, brokered natural gas and

 

10,042

 

 

 

9,680

 

 

 

31,420

 

 

 

30,280

 

marketing and general and administrative)

 

 

 

 

 

 

 

 

 

 

 

Interest - amortization of deferred financing costs

 

1,343

 

 

 

1,339

 

 

 

4,060

 

 

 

4,032

 

Depletion, depreciation and amortization

 

91,137

 

 

 

87,619

 

 

 

265,872

 

 

 

259,197

 

Gain on sale of assets

 

(69

)

 

 

(109

)

 

 

(222

)

 

 

(353

)

Gain on early extinguishment of debt

 

(11

)

 

 

-

 

 

 

(254

)

 

 

(439

)

Abandonment and impairment of unproved properties

 

4,723

 

 

 

11,012

 

 

 

8,618

 

 

 

44,308

 

Cash margin, a non-GAAP measure

$

251,455

 

 

$

240,123

 

 

$

800,236

 

 

$

829,056