RANGE RESOURCES CORPORATION (NYSE:RRC) today
announced its second quarter 2018 financial results.
Highlights –
- Production averaged a record 2,200 Mmcfe per day, an increase
of 13% compared to second quarter 2017
- Liquids production averaged 117,520 barrels per day, a 12%
increase over the prior-year period, and contributed 46% of total
product revenues before hedging
- Natural gas differentials, including basis hedging, of $0.16
below NYMEX, a $0.23 improvement over prior-year quarter
- Pre-hedge NGL realizations were $23.69 per barrel, a 63%
increase over the prior-year quarter
- Pre-hedge crude oil and condensate realizations of $63.07, a
45% increase over the prior-year quarter
- Southwest Pennsylvania production increased 30% over the
prior-year period to 1,752 Mmcfe per day
- Cash from operations of $175 million, and non-GAAP cash flow of
$237 million
- Net loss of $80 million ($0.32 per diluted share), non-GAAP net
income of $50 million ($0.20 per diluted share)
Commenting, Jeff Ventura, the Company’s CEO
said, “This year is off to a solid start with another quarter of
improving cash margins and record production, lifting cash flow per
share by 22% over the same period last year. This effort was
led by our Marcellus operations, where long laterals and the
utilization of existing pads and infrastructure are a tailwind for
capital efficiencies, positioning us to deliver growth within cash
flow for 2018 and in our five-year outlook. At the same time,
Range is intently focused on actions to fast-forward the
de-levering process swiftly and prudently through asset
sales. We have processes underway and believe we can execute
one or more successful sales in the current year, which would
improve our balance sheet and corporate returns.”
Financial Discussion
Except for generally accepted accounting
principles (“GAAP”) reported amounts, specific expense categories
exclude non-cash impairments, unrealized mark-to-market adjustment
on derivatives, non-cash stock compensation and other items shown
separately on the attached tables. “Unit costs” as used in
this release are composed of direct operating, transportation,
gathering, processing and compression, production and ad valorem
taxes, general and administrative, interest and depletion,
depreciation and amortization costs divided by production.
See “Non-GAAP Financial Measures” for a definition of each of the
non-GAAP financial measures and the tables that reconcile each of
the non-GAAP measures to their most directly comparable GAAP
financial measure.
Second Quarter 2018
GAAP revenues for second quarter 2018 totaled
$656 million (a 3% decrease compared to second quarter 2017), GAAP
net cash provided from operating activities, including changes in
working capital, was $175 million, compared to $185 million in
second quarter 2017, and GAAP earnings was a loss of $80 million
($0.32 per diluted share) versus earnings of $70 million ($0.28 per
diluted share) in the prior-year quarter. Second quarter
earnings results include a $103 million derivative loss due to
increases in future commodity prices compared to a $111 million
derivative gain in the prior year and a $6.6 million mark to market
loss related to the deferred compensation plan compared to a $14.5
million gain in the prior year. Second quarter 2018 also
included a $55 million unproved impairment primarily related to
expiring leases in North Louisiana and a $15 million impairment of
proved properties related to legacy assets in northwest
Pennsylvania.
Non-GAAP revenues for second quarter 2018
totaled $745 million, an increase of 32% compared to second quarter
2017, and cash flow from operations before changes in working
capital, a non-GAAP measure, was $237 million, compared to $194
million in second quarter 2017. Adjusted net income
comparable to analysts’ estimates, a non-GAAP measure, was $50
million ($0.20 per diluted share) in second quarter 2018, compared
to $16 million ($0.06 per diluted share) in the prior-year quarter,
an increase of 233%.
The following table details Range’s average
production and realized pricing for the second quarter 2018:
Net Production |
|
Natural
Gas(Mmcf/d) |
|
Oil (Bbl/d) |
|
NGLs(Bbl/d) |
|
Natural GasEquivalent
(Mcfe/d) |
|
|
|
|
|
|
|
|
|
1,495 |
|
13,301 |
|
104,219 |
|
2,200 |
|
Realized Pricing |
|
|
Natural
Gas($/Mcf) |
|
Oil ($/Bbl) |
|
NGLs($/Bbl) |
|
Natural GasEquivalent
($/Mcfe) |
|
|
|
|
|
|
|
|
|
Average
NYMEX price |
|
$2.80 |
|
$67.89 |
|
|
|
|
Differential, including basis hedging |
|
(0.16) |
|
(4.82) |
|
|
|
|
Realized
prices before NYMEX hedges |
|
2.64 |
|
63.07 |
|
$23.69 |
|
$3.30 |
Settled
NYMEX hedges |
|
0.14 |
|
(10.12) |
|
(2.12) |
|
(0.07) |
Average
realized prices after hedges |
|
$2.78 |
|
$52.95 |
|
$21.57 |
|
$3.23 |
|
|
|
|
|
|
|
|
|
Second quarter 2018 natural gas, NGLs and oil
price realizations (including the impact of cash-settled hedges and
derivative settlements which correspond to analysts’ estimates)
averaged $3.23 per mcfe, a 12% increase from the prior-year
quarter. Additional detail on commodity price realizations
can be found in the Supplemental Tables provided on the Company’s
website.
- The average Company natural gas price including the impact of
basis hedging was $2.64 per mcf (or $0.16 per mcf below NYMEX)
during the second quarter, which was significantly better than the
$0.39 negative differential to NYMEX in the prior year
quarter. The combination of increased pipeline connectivity,
seasonally low storage levels and compressed basis across the
Appalachian and Midwest regions has also improved the Company’s
expected 2018 natural gas differential to NYMEX minus $0.10 per
mcf.
- Pre-hedge NGL realizations were $23.69 per barrel, or 35% of
WTI, in second quarter 2018. Realized NGL price was above the
mid-point of guidance as a result of NGL component price
improvements late in the quarter. Range expects similar
pricing strength through the second half of 2018, putting Range at
the high-end of previously announced calendar 2018 guidance.
- Crude oil and condensate price realizations, before realized
hedges, for the second quarter averaged $63.07 per barrel, or $4.82
below WTI, a 45% improvement in realized price over the prior year
quarter.
Unit Costs
The following table details Range’s unit costs
per mcfe, excluding stock-based compensation:
Expenses |
|
2Q 2018($/Mcfe) |
|
2Q 2017 ($/Mcfe) |
|
Increase (Decrease) |
|
|
|
|
|
|
|
Direct
operating |
$ |
0.17 |
$ |
0.17 |
|
— |
Transportation, gathering, processing and compression |
|
1.35(a) |
|
1.08 |
|
25% |
Production
and ad valorem taxes |
|
0.05 |
|
0.06 |
|
(17%) |
General and
administrative |
|
0.20 |
|
0.21 |
|
(5%) |
Interest
expense |
|
0.26 |
|
0.26 |
|
— |
Total cash unit costs(b) |
|
2.03 |
|
1.78 |
|
14% |
Depletion,
depreciation andamortization (DD&A) |
|
0.80 |
|
0.86 |
|
(7%) |
Total unit costs plus DD&A(b) |
$ |
2.83 |
$ |
2.65 |
|
7% |
|
|
|
|
|
|
|
(a) Second quarter 2018 transportation,
gathering, processing and compression expense reflects the change
in accounting method made earlier this year. As a result of
adopting the new accounting standard, expenses increased by
approximately $0.21 per mcfe in second quarter 2018. There
was an equal increase to NGL revenue as there is zero net impact to
cash flow as a result of the change in accounting method. See page
8 in Range’s second quarter 2018 Form 10-Q.(b) May not add due to
rounding
Capital Expenditures
Second quarter 2018 drilling expenditures of
$260 million funded the drilling and completion of 30 (27.3 net)
wells. A 100% success rate was achieved. In addition
$10.3 million was spent on acreage purchases during the second
quarter. Total capital expenditures year to date were $521
million. Range remains on target with its $941 million total
capital budget for 2018 which is expected to be funded within cash
flows, excluding asset sale proceeds.
In addition, subsequent to quarter-end, Range
sold Midcontinent properties for $23 million, consisting of
approximately 11 Mmcfe per day of production and expected
annualized cash flow of approximately $3 million.
Operational Discussion
Range’s net production for second quarter 2018
averaged 2,200 Mmcfe per day, consisting of 1,495 Mmcf per day of
natural gas, 104,219 barrels per day of NGLs and 13,301 barrels per
day of condensate and oil. This makes Range one of the top 10
natural gas producers in the U.S. and a top three NGL producer
amongst E&P companies, providing leverage to improving oil and
NGL pricing fundamentals.
The table below summarizes wells turned to sales
and the estimated activity for the remainder of the year.
Estimated well costs, lateral lengths and EUR’s by area can be
found in the company presentation on Range’s website.
|
|
Wells TIL1Q 2018 |
|
Wells TIL2Q 2018 |
|
Calendar 2018 Planned TIL |
|
Remaining2H 2018 |
SW PA
Super-Rich |
|
2 |
|
3 |
|
15 |
|
10 |
SW PA
Wet |
|
7 |
|
8 |
|
42 |
|
27 |
SW PA
Dry |
|
— |
|
28 |
|
43 |
|
15 |
Total Appalachia |
|
9 |
|
39 |
|
100 |
|
52 |
|
|
|
|
|
|
|
|
|
Total N. LA. |
|
4 |
|
4 |
|
11 |
|
3 |
Total |
|
13 |
|
43 |
|
111 |
|
55 |
|
|
|
|
|
|
|
|
|
Appalachia Division
Production for second quarter 2018 averaged
approximately 1,876 net Mmcfe per day from the Appalachia division,
a 25% increase over the prior-year quarter. The southwest
area of the division averaged 1,752 net Mmcfe per day during the
quarter, a 30% increase over second quarter 2017. This was
achieved through continued operational improvements and exceptional
well results across Range’s acreage position. The northeast
Marcellus properties averaged 107 net Mmcf per day and legacy
acreage produced approximately 17 net Mmcf per day during the
second quarter 2018.
North Louisiana
Production for the division in second quarter of
2018 averaged approximately 313 net Mmcfe per day. The
division brought on line four wells during the quarter, and expects
to bring on line an additional three wells during the remainder of
the year for a total of 11 wells in 2018.
Marketing and
Transportation
Range’s marketing efforts were affected by two
separate third-party midstream events during the second quarter
that took away the primary method of transportation for certain
production. The Company minimized the impact to cash flow by
working with our various midstream and processing partners to
maintain production during the downtime.
The transportation of natural gas liquids on
Sunoco’s Mariner East 1 pipeline was suspended for almost two
months during the second quarter. As a result, Range lost
access to capacity on the Mariner East 1 pipeline for a combined
40,000 barrels per day of ethane and propane. As one of the
largest NGL producers in the United States, Range has taken a
portfolio approach to the sale of its purity products. The
marketing team utilized alternate markets for Mariner East ethane
volumes or simply sold the ethane as natural gas. For
propane, Range has access to another local pipeline and railcars
that continued to provide outlets to international markets via the
Marcus Hook terminal as well as various domestic markets. As
a result, Range was able to realize propane prices that were, on
average, above the Mont Belvieu index price, while paying slightly
higher transportation expense. The Mariner East 1 pipeline
was returned to service in mid-June.
In early June, TransCanada’s Leach Xpress
project on which Range holds natural gas capacity (300,000 Dth/day)
was taken offline following a pipeline rupture in West Virginia.
Range rerouted the natural gas production earmarked for the
Leach Xpress capacity into local Appalachian markets. On July
15th, the Leach Xpress project returned to service.
Energy Transfer’s Rover project (phase 2), which
is the last major natural gas transportation project for which
Range has contracted capacity, is expected to reach full completion
in third quarter 2018. Once the Rover project is in service,
over 70% of Range’s production can be sold in the Gulf Coast
market, which currently receives near NYMEX pricing.
Guidance – 2018
Production per day Guidance
Production for the third quarter of 2018 is
expected to be approximately 2,220 Mmcfe per day. This
excludes all Midcontinent volumes following the sale of that asset
in early July.
Production expectations for the full year 2018
remain approximately 11% year-over-year growth.
3Q 2018 Expense Guidance
Direct
operating expense: |
|
$0.17 −
$0.19 per mcfe |
Transportation, gathering, processing and compression expense: |
|
$1.38 −
$1.42 per mcfe |
Production
tax expense: |
|
$0.05 −
$0.07 per mcfe |
Exploration
expense: |
|
$7.0 −
$10.0 million |
Unproved
property impairment expense: |
|
$8.0 −
$10.0 million |
G&A
expense: |
|
$0.20 −
$0.22 per mcfe |
Interest
expense: |
|
$0.26 −
$0.28 per mcfe |
DD&A
expense: |
|
$0.80 −
$0.84 per mcfe |
Net
brokered gas marketing expense: |
|
~$3.0
million |
3Q 2018 Natural Gas Price Differentials (including basis
hedging): NYMEX minus
$0.20
Based on current market indications, Range expects to average
the following pre-hedge differentials for calendar 2018
production.
|
New Guidance |
|
Prior Guidance |
Natural
Gas: |
NYMEX minus $0.10 |
|
NYMEX minus $0.15 |
Natural Gas
Liquids (including ethane): |
35% − 36% of WTI |
|
32% − 36% of WTI |
Oil/Condensate: |
WTI minus $5.00 to $6.00 |
|
WTI minus $5.00 to $6.00 |
Hedging Status
Range hedges portions of its expected future
production volumes to increase the predictability of cash flow and
to help maintain a more flexible financial position. Range
currently has over 80% of its expected second half 2018 natural gas
production hedged at a weighted average floor price of $2.97 per
Mmbtu. Similarly, Range has hedged over 70% of its second
half 2018 projected crude oil production at a floor price of $53.20
and over 50% of its composite NGL production. Please see
Range’s detailed hedging schedule posted at the end of the
financial tables below and on its website at
www.rangeresources.com.
Range has also hedged Marcellus and other basis
differentials to limit volatility between NYMEX and regional
prices. The fair value of the basis hedges was a loss of $1.9
million as of June 30, 2018. The Company also has propane basis
swap contracts which lock in the differential between Mont Belvieu
and international propane indices. The fair value of these
contracts was a loss of $2.1 million on June 30,
2018.
Conference Call Information
A conference call to review the financial
results is scheduled on Tuesday, July 31 at 9:00 a.m. ET. To
participate in the call, please dial 866-900-7525 and provide
conference code 9999543 about 10 minutes prior to the scheduled
start time.
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 August 31, 2018.
Non-GAAP Financial Measures
Adjusted net income comparable to analysts’
estimates as set forth in this release represents income or loss
from operations before income taxes adjusted for certain non-cash
items (detailed in the accompanying table) less income taxes.
We believe adjusted net income comparable to analysts’ estimates is
calculated on the same basis as analysts’ estimates and that many
investors use this published research in making investment
decisions and evaluating operational trends of the Company and its
performance relative to other oil and gas producing
companies. Diluted earnings per share (adjusted) as set forth
in this release represents adjusted net income comparable to
analysts’ estimates on a diluted per share basis. A table is
included which reconciles income or loss from operations to
adjusted net income comparable to analysts’ estimates and diluted
earnings per share (adjusted). The Company provides
additional comparative information on prior periods along with
non-GAAP revenue disclosures on its website.
Cash flow from operations before changes in
working capital (sometimes referred to as “adjusted cash flow”) as
defined in this release represents net cash provided by operations
before changes in working capital and exploration expense adjusted
for certain non-cash compensation items. Cash flow from
operations before changes in working capital is widely accepted by
the investment community as a financial indicator of an oil and gas
company’s ability to generate cash to internally fund exploration
and development activities and to service debt. Cash flow
from operations before changes in working capital is also useful
because it is widely used by professional research analysts in
valuing, comparing, rating and providing investment recommendations
of companies in the oil and gas exploration and production
industry. In turn, many investors use this published research
in making investment decisions. Cash flow from operations
before changes in working capital is not a measure of financial
performance under GAAP and should not be considered as an
alternative to cash flows from operations, investing, or financing
activities as an indicator of cash flows, or as a measure of
liquidity. A table is included which reconciles net cash
provided by operations to cash flow from operations before changes
in working capital as used in this release. On its website,
the Company provides additional comparative information on prior
periods for cash flow, cash margins and non-GAAP earnings as used
in this release.
The cash prices realized for oil and natural gas
production, including the amounts realized on cash-settled
derivatives and net of transportation, gathering, processing and
compression expense, is a critical component in the Company’s
performance tracked by investors and professional research analysts
in valuing, comparing, rating and providing investment
recommendations and forecasts of companies in the oil and gas
exploration and production industry. In turn, many investors
use this published research in making investment decisions.
Due to the GAAP disclosures of various derivative transactions and
third-party transportation, gathering, processing and compression
expense, such information is now reported in various lines of the
income statement. The Company believes that it is important
to furnish a table reflecting the details of the various components
of each line in the statement of operations to better inform the
reader of the details of each amount and provide a summary of the
realized cash-settled amounts and third-party transportation,
gathering, processing and compression expense which historically
were reported as natural gas, NGLs and oil sales. This
information is intended to bridge the gap between various readers’
understanding and fully disclose the information needed.
The Company discloses in this release the
detailed components of many of the single line items shown in the
GAAP financial statements included in the Company’s quarterly
report on Form 10-Q. The Company believes that it is
important to furnish this detail of the various components
comprising each line of the Statements of Operations to better
inform the reader of the details of each amount, the changes
between periods and the effect on its financial results.
We believe that the presentation of PV-10 is
relevant and useful to 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, PV-10 is
based on prices and discount factors that are consistent for all
companies. Because of this, PV-10 can be used within the industry
and by creditors 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 oil and natural gas
producer with operations focused in stacked-pay projects in
the Appalachian Basin and North Louisiana. The Company pursues
an organic growth strategy targeting high return, low-cost projects
within its large inventory of low risk development drilling
opportunities. The Company is headquartered in Fort Worth,
Texas. More information about Range can be found at
www.rangeresources.com.
Included within this news release are certain
“forward-looking statements” within the meaning of the federal
securities laws, including the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 that are not
limited to historical facts, but reflect Range’s current beliefs,
expectations or intentions regarding future events. Words
such as “may,” “will,” “could,” “should,” “expect,” “plan,”
“project,” “intend,” “anticipate,” “believe,” “outlook,”
“estimate,” “predict,” “potential,” “pursue,” “target,” “continue,”
and similar expressions are intended to identify such
forward-looking statements.
All statements, except for statements of
historical fact, made within regarding activities, events or
developments the Company expects, believes or anticipates will or
may occur in the future, such as those regarding future well costs,
expected asset sales, well productivity, future liquidity and
financial resilience, anticipated exports and related financial
impact, NGL market supply and demand, improving commodity
fundamentals and pricing, future capital efficiencies, future
shareholder value, emerging plays, capital spending, anticipated
drilling and completion activity, acreage prospectivity, expected
pipeline utilization and future guidance information are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements are
based on assumptions and estimates that management believes are
reasonable based on currently available information; however,
management's assumptions and Range's future performance are subject
to a wide range of business risks and uncertainties and there is no
assurance that these goals and projections can or will be met. Any
number of factors could cause actual results to differ materially
from those in the forward-looking statements. Further
information on risks and uncertainties is available in Range's
filings with the Securities and Exchange Commission (SEC),
including its most recent Annual Report on Form 10-K. Unless
required by law, Range undertakes no obligation to publicly update
or revise any forward-looking statements to reflect circumstances
or events after the date they are made.
The SEC permits oil and gas companies, in
filings made with the SEC, to disclose proved reserves, which are
estimates that geological and engineering data demonstrate with
reasonable certainty to be recoverable in future years from known
reservoirs under existing economic and operating conditions as well
as the option to disclose probable and possible reserves.
Range has elected not to disclose its probable and possible
reserves in its filings with the SEC. Range uses certain
broader terms such as "resource potential,” “unrisked resource
potential,” "unproved resource potential" or "upside" or other
descriptions of volumes of resources potentially recoverable
through additional drilling or recovery techniques that may include
probable and possible reserves as defined by the SEC's
guidelines. Range has not attempted to distinguish probable
and possible reserves from these broader classifications. The SEC’s
rules prohibit us from including in filings with the SEC these
broader classifications of reserves. These estimates are by
their nature more speculative than estimates of proved, probable
and possible reserves and accordingly are subject to substantially
greater risk of actually being realized. Unproved resource
potential refers to Range's internal estimates of hydrocarbon
quantities that may be potentially discovered through exploratory
drilling or recovered with additional drilling or recovery
techniques and have not been reviewed by independent
engineers. Unproved resource potential does not constitute
reserves within the meaning of the Society of Petroleum Engineer's
Petroleum Resource Management System and does not include proved
reserves. Area wide unproven resource potential has not been
fully risked by Range's management. “EUR”, or estimated
ultimate recovery, refers to our management’s estimates of
hydrocarbon quantities that may be recovered from a well completed
as a producer in the area. These quantities may not necessarily
constitute or represent reserves within the meaning of the Society
of Petroleum Engineer’s Petroleum Resource Management System or the
SEC’s oil and natural gas disclosure rules. Actual quantities that
may be recovered from Range's interests could differ
substantially. Factors affecting ultimate recovery include
the scope of Range's drilling program, which will be directly
affected by the availability of capital, drilling and production
costs, commodity prices, availability of drilling services and
equipment, drilling results, lease expirations, transportation
constraints, regulatory approvals, field spacing rules, recoveries
of gas in place, length of horizontal laterals, actual drilling
results, including geological and mechanical factors affecting
recovery rates and other factors. Estimates of resource
potential may change significantly as development of our resource
plays provides additional data.
In addition, our production forecasts and
expectations for future periods are dependent upon many
assumptions, including estimates of production decline rates from
existing wells and the undertaking and outcome of future drilling
activity, which may be affected by significant commodity price
declines or drilling cost increases. Investors are urged to
consider closely the disclosure in our most recent Annual Report on
Form 10-K, available from our website at www.rangeresources.com or
by written request to 100 Throckmorton Street, Suite 1200, Fort
Worth, Texas 76102. You can also obtain this Form 10-K on the
SEC’s website at www.sec.gov or by calling the SEC at
1-800-SEC-0330.
Investor Contacts:
Laith Sando, Vice President – Investor
Relations817-869-4267lsando@rangeresources.com
Michael Freeman, Director – Investor Relations &
Hedging817-869-4264mfreeman@rangeresources.com
John Durham, Senior Financial
Analyst817-869-1538jdurham@rangeresources.com
Media Contact:
Michael Mackin, Director of External Affairs
724-743-6776mmackin@rangeresources.com
www.rangeresources.com
RANGE RESOURCES CORPORATION
STATEMENTS OF OPERATIONS |
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Based on
GAAP reported earnings with additional |
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details of
items included in each line in Form 10-Q |
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(Unaudited,
in thousands, except per share data) |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2018 |
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2017 |
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% |
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2018 |
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2017 |
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% |
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Revenues
and other income: |
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Natural gas, NGLs and oil sales (a) |
$ |
661,390 |
|
|
$ |
506,137 |
|
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|
$ |
1,358,019 |
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$ |
1,065,587 |
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Derivative fair value (loss)/income |
|
(103,290 |
) |
|
|
111,195 |
|
|
|
|
|
|
|
(117,299 |
) |
|
|
276,752 |
|
|
|
|
|
Brokered natural gas, marketing and other (b) |
|
97,908 |
|
|
|
56,016 |
|
|
|
|
|
|
|
157,663 |
|
|
|
107,597 |
|
|
|
|
|
ARO settlement gain (loss) (b) |
|
(12 |
) |
|
|
(40 |
) |
|
|
|
|
|
|
(12 |
) |
|
|
(40 |
) |
|
|
|
|
Other (b) |
|
188 |
|
|
|
(197 |
) |
|
|
|
|
|
|
412 |
|
|
|
(130 |
) |
|
|
|
|
Total revenues and other income |
|
656,184 |
|
|
|
673,111 |
|
|
|
-3 |
% |
|
|
1,398,783 |
|
|
|
1,449,766 |
|
|
|
-4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating |
|
34,549 |
|
|
|
30,898 |
|
|
|
|
|
|
|
72,080 |
|
|
|
58,397 |
|
|
|
|
|
Direct operating – non-cash stock-based compensation (c) |
|
539 |
|
|
|
522 |
|
|
|
|
|
|
|
1,130 |
|
|
|
1,046 |
|
|
|
|
|
Transportation, gathering, processing and compression |
|
269,910 |
|
|
|
191,590 |
|
|
|
|
|
|
|
514,538 |
|
|
|
369,238 |
|
|
|
|
|
Production and ad valorem taxes |
|
10,140 |
|
|
|
9,969 |
|
|
|
|
|
|
|
20,066 |
|
|
|
19,132 |
|
|
|
|
|
Brokered natural gas and marketing |
|
102,434 |
|
|
|
55,469 |
|
|
|
|
|
|
|
157,743 |
|
|
|
108,756 |
|
|
|
|
|
Brokered natural gas and marketing – non-cash
stock-based compensation (c) |
|
313 |
|
|
|
388 |
|
|
|
|
|
|
|
598 |
|
|
|
651 |
|
|
|
|
|
Exploration |
|
7,128 |
|
|
|
13,970 |
|
|
|
|
|
|
|
14,096 |
|
|
|
21,967 |
|
|
|
|
|
Exploration – non-cash stock-based compensation (c) |
|
371 |
|
|
|
528 |
|
|
|
|
|
|
|
1,122 |
|
|
|
1,035 |
|
|
|
|
|
Abandonment and impairment of unproved properties |
|
54,922 |
|
|
|
5,193 |
|
|
|
|
|
|
|
66,695 |
|
|
|
9,613 |
|
|
|
|
|
General and administrative |
|
39,114 |
|
|
|
37,203 |
|
|
|
|
|
|
|
83,443 |
|
|
|
73,158 |
|
|
|
|
|
General and administrative – non-cash stock-based
compensation (c) |
|
8,814 |
|
|
|
14,279 |
|
|
|
|
|
|
|
32,725 |
|
|
|
25,197 |
|
|
|
|
|
General and administrative – lawsuit settlements |
|
1,155 |
|
|
|
540 |
|
|
|
|
|
|
|
1,332 |
|
|
|
1,163 |
|
|
|
|
|
General and administrative – bad debt expense |
|
(1,500 |
) |
|
|
300 |
|
|
|
|
|
|
|
(1,500 |
) |
|
|
300 |
|
|
|
|
|
Termination costs |
|
— |
|
|
|
(50 |
) |
|
|
|
|
|
|
(37 |
) |
|
|
2,400 |
|
|
|
|
|
Termination costs – non-cash stock-based compensation
(c) |
|
— |
|
|
|
(46 |
) |
|
|
|
|
|
|
— |
|
|
|
1,696 |
|
|
|
|
|
Deferred compensation plan (d) |
|
6,615 |
|
|
|
(14,466 |
) |
|
|
|
|
|
|
(782 |
) |
|
|
(27,635 |
) |
|
|
|
|
Interest expense |
|
52,137 |
|
|
|
46,132 |
|
|
|
|
|
|
|
102,670 |
|
|
|
91,455 |
|
|
|
|
|
Interest expense – amortization of deferred financing
costs |
|
1,725 |
|
|
|
1,794 |
|
|
|
|
|
|
|
3,577 |
|
|
|
3,572 |
|
|
|
|
|
Depletion, depreciation and amortization |
|
161,026 |
|
|
|
152,504 |
|
|
|
|
|
|
|
323,292 |
|
|
|
302,325 |
|
|
|
|
|
Impairment of proved properties and other assets |
|
15,302 |
|
|
|
— |
|
|
|
|
|
|
|
22,614 |
|
|
|
— |
|
|
|
|
|
Gain on sale of assets |
|
(156 |
) |
|
|
(807 |
) |
|
|
|
|
|
|
(179 |
) |
|
|
(23,407 |
) |
|
|
|
|
Total costs and expenses |
|
764,538 |
|
|
|
545,910 |
|
|
|
-40 |
% |
|
|
1,415,223 |
|
|
|
1,040,059 |
|
|
|
36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before income taxes |
|
(108,354 |
) |
|
|
127,201 |
|
|
|
-185 |
% |
|
|
(16,440 |
) |
|
|
409,707 |
|
|
|
-104 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
(benefit) expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
Deferred |
|
(28,518 |
) |
|
|
57,651 |
|
|
|
|
|
|
|
14,158 |
|
|
|
170,046 |
|
|
|
|
|
|
|
(28,518 |
) |
|
|
57,651 |
|
|
|
|
|
|
|
14,158 |
|
|
|
170,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income |
$ |
(79,836 |
) |
|
$ |
69,550 |
|
|
|
-215 |
% |
|
$ |
(30,598 |
) |
|
$ |
239,661 |
|
|
|
-113 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(Loss) Income Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.32 |
) |
|
$ |
0.28 |
|
|
|
|
|
|
$ |
(0.13 |
) |
|
$ |
0.97 |
|
|
|
|
|
Diluted |
$ |
(0.32 |
) |
|
$ |
0.28 |
|
|
|
|
|
|
$ |
(0.13 |
) |
|
$ |
0.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding, as reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
245,880 |
|
|
|
245,177 |
|
|
|
0 |
% |
|
|
245,795 |
|
|
|
244,916 |
|
|
|
0 |
% |
Diluted |
|
245,880 |
|
|
|
245,335 |
|
|
|
0 |
% |
|
|
245,795 |
|
|
|
245,242 |
|
|
|
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.
RANGE RESOURCES CORPORATION
BALANCE SHEETS |
|
|
|
|
|
|
|
(In
thousands) |
|
June 30, |
|
|
|
December 31, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
(Unaudited) |
|
|
|
(Audited) |
|
Assets |
|
|
|
|
|
|
|
Current assets |
$ |
384,872 |
|
|
$ |
370,627 |
|
Derivative assets |
|
3,295 |
|
|
|
58,880 |
|
Goodwill |
|
1,641,197 |
|
|
|
1,641,197 |
|
Natural gas and oil properties, successful efforts
method |
|
9,705,122 |
|
|
|
9,566,737 |
|
Transportation and field assets |
|
13,190 |
|
|
|
14,666 |
|
Other |
|
78,401 |
|
|
|
76,734 |
|
|
$ |
11,826,077 |
|
|
$ |
11,728,841 |
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders’ Equity |
|
|
|
|
|
|
|
Current liabilities |
$ |
632,354 |
|
|
$ |
704,913 |
|
Asset retirement obligations |
|
6,327 |
|
|
|
6,327 |
|
Derivative liabilities |
|
101,328 |
|
|
|
44,233 |
|
|
|
|
|
|
|
|
|
Bank debt |
|
1,304,584 |
|
|
|
1,208,467 |
|
Senior notes |
|
2,853,948 |
|
|
|
2,851,754 |
|
Senior subordinated notes |
|
48,630 |
|
|
|
48,585 |
|
Total debt |
|
4,207,162 |
|
|
|
4,108,806 |
|
|
|
|
|
|
|
|
|
Deferred tax liability |
|
707,563 |
|
|
|
693,356 |
|
Derivative liabilities |
|
10,088 |
|
|
|
9,789 |
|
Deferred compensation liability |
|
87,087 |
|
|
|
101,102 |
|
Asset retirement obligations and other liabilities |
|
310,133 |
|
|
|
286,043 |
|
|
|
|
|
|
|
|
|
Common stock and retained earnings |
|
5,765,633 |
|
|
|
5,776,203 |
|
Other comprehensive loss |
|
(1,194 |
) |
|
|
(1,332 |
) |
Common stock held in treasury stock |
|
(404 |
) |
|
|
(599 |
) |
Total stockholders’ equity |
|
5,764,035 |
|
|
|
5,774,272 |
|
|
$ |
11,826,077 |
|
|
$ |
11,728,841 |
|
|
|
|
|
|
|
|
|
RECONCILIATION OF TOTAL REVENUES AND OTHER INCOME TO TOTAL
REVENUE EXCLUDING CERTAIN ITEMS, a non-GAAP measure |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited,
in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
% |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues and other income, as reported |
$ |
656,184 |
|
|
$ |
673,111 |
|
|
|
-3 |
% |
|
$ |
1,398,783 |
|
|
$ |
1,449,766 |
|
|
|
-4 |
% |
Adjustment
for certain special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total change in fair value related to derivatives prior to
settlement (gain) loss |
|
89,015 |
|
|
|
(107,809 |
) |
|
|
|
|
|
|
111,949 |
|
|
|
(277,547 |
) |
|
|
|
|
ARO settlement (gain) loss |
|
12 |
|
|
|
40 |
|
|
|
|
|
|
|
12 |
|
|
|
40 |
|
|
|
|
|
Total
revenues, as adjusted, non-GAAP |
$ |
745,211 |
|
|
$ |
565,342 |
|
|
|
32 |
% |
|
$ |
1,510,744 |
|
|
$ |
1,172,259 |
|
|
|
29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited
in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income |
$ |
(79,836 |
) |
|
$ |
69,550 |
|
|
$ |
(30,598 |
) |
|
$ |
239,661 |
|
Adjustments
to reconcile net cash provided from continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax (benefit) expense |
|
(28,518 |
) |
|
|
57,651 |
|
|
|
14,158 |
|
|
|
170,046 |
|
Depletion, depreciation, amortization and impairment |
|
176,328 |
|
|
|
152,504 |
|
|
|
345,906 |
|
|
|
302,325 |
|
Exploration dry hole costs |
|
— |
|
|
|
161 |
|
|
|
2 |
|
|
|
161 |
|
Abandonment and impairment of unproved properties |
|
54,922 |
|
|
|
5,193 |
|
|
|
66,695 |
|
|
|
9,613 |
|
Derivative fair value loss (income) |
|
103,290 |
|
|
|
(111,195 |
) |
|
|
117,299 |
|
|
|
(276,752 |
) |
Cash settlements on derivative financial instruments that do
not qualify for hedge accounting |
|
(14,275 |
) |
|
|
3,387 |
|
|
|
(5,350 |
) |
|
|
(794 |
) |
Allowance for bad debts |
|
(1,500 |
) |
|
|
300 |
|
|
|
(1,500 |
) |
|
|
300 |
|
Amortization of deferred issuance costs, loss on
extinguishment of debt, and other |
|
1,064 |
|
|
|
1,247 |
|
|
|
2,376 |
|
|
|
2,557 |
|
Deferred and stock-based compensation |
|
15,640 |
|
|
|
990 |
|
|
|
34,167 |
|
|
|
1,952 |
|
(Gain) loss on sale of assets and other |
|
(156 |
) |
|
|
(807 |
) |
|
|
(179 |
) |
|
|
(23,407 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in working capital: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
(68,338 |
) |
|
|
(8,920 |
) |
|
|
(14,425 |
) |
|
|
(13,610 |
) |
Inventory and other |
|
6,090 |
|
|
|
848 |
|
|
|
796 |
|
|
|
3,716 |
|
Accounts payable |
|
(32,838 |
) |
|
|
(5,958 |
) |
|
|
14,615 |
|
|
|
18,426 |
|
Accrued liabilities and other |
|
43,070 |
|
|
|
20,515 |
|
|
|
1,553 |
|
|
|
(22,866 |
) |
Net changes in working capital |
|
(52,016 |
) |
|
|
6,485 |
|
|
|
2,539 |
|
|
|
(14,334 |
) |
Net cash provided from operating activities |
$ |
174,943 |
|
|
$ |
185,466 |
|
|
$ |
545,515 |
|
|
$ |
411,328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET CASH PROVIDED FROM OPERATING
ACTIVITIES, AS REPORTED, TO CASH FLOW FROM OPERATIONS BEFORE
CHANGES IN WORKING CAPITAL, a non-GAAP measure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited,
in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Net cash
provided from operating activities, as reported |
$ |
174,943 |
|
|
$ |
185,466 |
|
|
$ |
545,515 |
|
|
$ |
411,328 |
|
Net changes in working capital |
|
52,016 |
|
|
|
(6,485 |
) |
|
|
(2,539 |
) |
|
|
14,334 |
|
Exploration expense |
|
7,128 |
|
|
|
13,809 |
|
|
|
14,094 |
|
|
|
21,806 |
|
Lawsuit settlements |
|
1,155 |
|
|
|
540 |
|
|
|
1,332 |
|
|
|
1,163 |
|
Termination costs |
|
— |
|
|
|
(50 |
) |
|
|
— |
|
|
|
2,400 |
|
Non-cash compensation adjustment |
|
1,685 |
|
|
|
801 |
|
|
|
1,802 |
|
|
|
1,092 |
|
Cash flow
from operations before changes in working capital – non-GAAP
measure |
$ |
236,927 |
|
|
$ |
194,081 |
|
|
$ |
560,204 |
|
|
$ |
452,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited,
in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding |
|
249,324 |
|
|
|
247,852 |
|
|
|
248,952 |
|
|
|
247,622 |
|
Stock held
by deferred compensation plan |
|
(3,444 |
) |
|
|
(2,675 |
) |
|
|
(3,157 |
) |
|
|
(2,706 |
) |
Adjusted basic |
|
245,880 |
|
|
|
245,177 |
|
|
|
245,795 |
|
|
|
244,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding |
|
249,324 |
|
|
|
247,852 |
|
|
|
248,952 |
|
|
|
247,622 |
|
Dilutive
stock options under treasury method |
|
(3,444 |
) |
|
|
(2,517 |
) |
|
|
(3,157 |
) |
|
|
(2,380 |
) |
Adjusted dilutive |
|
245,880 |
|
|
|
245,335 |
|
|
|
245,795 |
|
|
|
245,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES AND
DERIVATIVE FAIR VALUE INCOME (LOSS) TO CALCULATED CASH REALIZED
NATURAL GAS, NGLs AND OIL PRICES WITH AND WITHOUT THIRD PARTY
TRANSPORTATION, GATHERING AND COMPRESSION FEES, a non-GAAP
measure |
|
|
|
|
|
|
(Unaudited,
in thousands, except per unit data) |
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
% |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
% |
|
Natural
gas, NGL and oil sales components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
360,351 |
|
|
$ |
336,534 |
|
|
|
|
|
|
$ |
791,924 |
|
|
$ |
707,866 |
|
|
|
|
|
NGL sales |
|
224,703 |
|
|
|
123,784 |
|
|
|
|
|
|
|
427,230 |
|
|
|
261,847 |
|
|
|
|
|
Oil sales |
|
76,336 |
|
|
|
45,819 |
|
|
|
|
|
|
|
138,865 |
|
|
|
95,854 |
|
|
|
|
|
Total oil
and gas sales, as reported |
$ |
661,390 |
|
|
$ |
506,137 |
|
|
|
31 |
% |
|
$ |
1,358,019 |
|
|
$ |
1,065,567 |
|
|
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
fair value income (loss), as reported: |
$ |
(103,290 |
) |
|
$ |
111,195 |
|
|
|
|
|
|
$ |
(117,299 |
) |
|
$ |
276,752 |
|
|
|
|
|
Cash
settlements on derivative financial instruments – (gain) loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
|
(18,113 |
) |
|
|
(942 |
) |
|
|
|
|
|
|
(50,621 |
) |
|
|
(8,397 |
) |
|
|
|
|
NGLs |
|
20,144 |
|
|
|
3,131 |
|
|
|
|
|
|
|
35,412 |
|
|
|
17,464 |
|
|
|
|
|
Crude Oil |
|
12,244 |
|
|
|
(5,575 |
) |
|
|
|
|
|
|
20,559 |
|
|
|
(8,272 |
) |
|
|
|
|
Total
change in fair value related to derivatives prior to settlement, a
non-GAAP measure |
$ |
(89,015 |
) |
|
$ |
107,809 |
|
|
|
|
|
|
$ |
(111,949 |
) |
|
$ |
277,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering, processing and compression
components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
$ |
164,064 |
|
|
$ |
129,557 |
|
|
|
|
|
|
$ |
321,298 |
|
|
$ |
251,750 |
|
|
|
|
|
NGLs |
|
105,846 |
|
|
|
62,033 |
|
|
|
|
|
|
|
193,240 |
|
|
|
117,488 |
|
|
|
|
|
Total
transportation, gathering, processing and compression, as
reported |
$ |
269,910 |
|
|
$ |
191,590 |
|
|
|
|
|
|
$ |
514,538 |
|
|
$ |
369,238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural
gas, NGL and oil sales, including cash-settled derivatives:
(c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
378,464 |
|
|
$ |
337,476 |
|
|
|
|
|
|
$ |
842,545 |
|
|
$ |
716,263 |
|
|
|
|
|
NGL sales |
|
204,559 |
|
|
|
120,653 |
|
|
|
|
|
|
|
391,818 |
|
|
|
244,383 |
|
|
|
|
|
Oil sales |
|
64,092 |
|
|
|
51,394 |
|
|
|
|
|
|
|
118,306 |
|
|
|
104,126 |
|
|
|
|
|
Total |
$ |
647,115 |
|
|
$ |
509,523 |
|
|
|
27 |
% |
|
|
1,352,669 |
|
|
|
1,064,772 |
|
|
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
of oil and gas during the periods (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
136,057,805 |
|
|
|
119,487,827 |
|
|
|
14 |
% |
|
|
271,011,900 |
|
|
|
235,744,164 |
|
|
|
15 |
% |
NGL (bbl) |
|
9,483,910 |
|
|
|
8,524,267 |
|
|
|
11 |
% |
|
|
18,753,941 |
|
|
|
17,060,995 |
|
|
|
10 |
% |
Oil (bbl) |
|
1,210,379 |
|
|
|
1,052,784 |
|
|
|
15 |
% |
|
|
2,273,813 |
|
|
|
2,118,070 |
|
|
|
7 |
% |
Gas
equivalent (mcfe) (b) |
|
200,223,539 |
|
|
|
176,950,133 |
|
|
|
13 |
% |
|
|
397,178,424 |
|
|
|
350,818,554 |
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
of oil and gas – average per day (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
1,495,141 |
|
|
|
1,313,053 |
|
|
|
14 |
% |
|
|
1,497,303 |
|
|
|
1,302,454 |
|
|
|
15 |
% |
NGL (bbl) |
|
104,219 |
|
|
|
93,673 |
|
|
|
11 |
% |
|
|
103,613 |
|
|
|
94,260 |
|
|
|
10 |
% |
Oil (bbl) |
|
13,301 |
|
|
|
11,569 |
|
|
|
15 |
% |
|
|
12,563 |
|
|
|
11,702 |
|
|
|
7 |
% |
Gas
equivalent (mcfe) (b) |
|
2,200,259 |
|
|
|
1,944,507 |
|
|
|
13 |
% |
|
|
2,194,356 |
|
|
|
1,938,224 |
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
prices, excluding derivative settlements and before third party
transportation costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
2.65 |
|
|
$ |
2.82 |
|
|
|
-6 |
% |
|
$ |
2.92 |
|
|
$ |
3.00 |
|
|
|
-3 |
% |
NGL (bbl) |
$ |
23.69 |
|
|
$ |
14.52 |
|
|
|
63 |
% |
|
$ |
22.78 |
|
|
$ |
15.35 |
|
|
|
48 |
% |
Oil (bbl) |
$ |
63.07 |
|
|
$ |
43.52 |
|
|
|
45 |
% |
|
$ |
61.07 |
|
|
$ |
45.26 |
|
|
|
35 |
% |
Gas
equivalent (mcfe) (b) |
$ |
3.30 |
|
|
$ |
2.86 |
|
|
|
15 |
% |
|
$ |
3.42 |
|
|
$ |
3.04 |
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
prices, including derivative settlements before third party
transportation costs: (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
2.78 |
|
|
$ |
2.82 |
|
|
|
-2 |
% |
|
$ |
3.11 |
|
|
$ |
3.04 |
|
|
|
2 |
% |
NGL (bbl) |
$ |
21.57 |
|
|
$ |
14.15 |
|
|
|
52 |
% |
|
$ |
20.89 |
|
|
$ |
14.32 |
|
|
|
46 |
% |
Oil (bbl) |
$ |
52.95 |
|
|
$ |
48.82 |
|
|
|
8 |
% |
|
$ |
52.03 |
|
|
$ |
49.16 |
|
|
|
6 |
% |
Gas
equivalent (mcfe) (b) |
$ |
3.23 |
|
|
$ |
2.88 |
|
|
|
12 |
% |
|
$ |
3.41 |
|
|
$ |
3.04 |
|
|
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
prices, including derivative settlements and after third
party transportation costs: (d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
1.58 |
|
|
$ |
1.74 |
|
|
|
-9 |
% |
|
$ |
1.92 |
|
|
$ |
1.97 |
|
|
|
-2 |
% |
NGL (bbl) |
$ |
10.41 |
|
|
$ |
6.88 |
|
|
|
51 |
% |
|
$ |
10.59 |
|
|
$ |
7.44 |
|
|
|
42 |
% |
Oil (bbl) |
$ |
52.95 |
|
|
$ |
48.82 |
|
|
|
8 |
% |
|
$ |
52.03 |
|
|
$ |
49.16 |
|
|
|
6 |
% |
Gas
equivalent (mcfe) (b) |
$ |
1.88 |
|
|
$ |
1.80 |
|
|
|
5 |
% |
|
$ |
2.11 |
|
|
$ |
1.98 |
|
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering and compression expense per mcfe |
$ |
1.35 |
|
|
$ |
1.08 |
|
|
|
25 |
% |
|
$ |
1.30 |
|
|
$ |
1.05 |
|
|
|
23 |
% |
(a) Represents volumes sold regardless of when
produced.(b) Oil and NGLs are converted at the rate of one
barrel equals six mcfe based upon the approximate relative energy
content of oil to natural gas, which is not necessarily indicative
of the relationship of oil and natural gas prices.(c)
Excluding third party transportation, gathering and
compression costs.(d) Net of transportation, gathering and
compression costs.
RANGE RESOURCES CORPORATION
RECONCILIATION OF INCOME (LOSS) 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 June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
% |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income from operations before income taxes, as reported |
$ |
(108,354 |
) |
|
$ |
127,201 |
|
|
|
185 |
% |
|
$ |
(16,440 |
) |
|
$ |
409,707 |
|
|
|
104 |
% |
Adjustment
for certain special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale of assets |
|
(156 |
) |
|
|
(807 |
) |
|
|
|
|
|
|
(179 |
) |
|
|
(23,407 |
) |
|
|
|
|
Loss (gain) on ARO settlements |
|
12 |
|
|
|
40 |
|
|
|
|
|
|
|
12 |
|
|
|
40 |
|
|
|
|
|
Change in fair value related to derivatives prior to
settlement |
|
89,015 |
|
|
|
(107,809 |
) |
|
|
|
|
|
|
111,949 |
|
|
|
(277,547 |
) |
|
|
|
|
Abandonment and impairment of unproved properties |
|
54,922 |
|
|
|
5,193 |
|
|
|
|
|
|
|
66,695 |
|
|
|
9,613 |
|
|
|
|
|
Impairment of proved property |
|
15,302 |
|
|
|
— |
|
|
|
|
|
|
|
22,614 |
|
|
|
— |
|
|
|
|
|
Lawsuit settlements |
|
1,155 |
|
|
|
540 |
|
|
|
|
|
|
|
1,332 |
|
|
|
1,163 |
|
|
|
|
|
Termination costs |
|
— |
|
|
|
(50 |
) |
|
|
|
|
|
|
(37 |
) |
|
|
2,400 |
|
|
|
|
|
Termination costs – non-cash stock-based compensation |
|
— |
|
|
|
(46 |
) |
|
|
|
|
|
|
— |
|
|
|
1,696 |
|
|
|
|
|
Brokered natural gas and marketing – non-cash stock-based
compensation |
|
313 |
|
|
|
388 |
|
|
|
|
|
|
|
598 |
|
|
|
651 |
|
|
|
|
|
Direct operating – non-cash stock-based compensation |
|
539 |
|
|
|
522 |
|
|
|
|
|
|
|
1,130 |
|
|
|
1,046 |
|
|
|
|
|
Exploration expenses – non-cash stock-based compensation |
|
371 |
|
|
|
528 |
|
|
|
|
|
|
|
1,122 |
|
|
|
1,035 |
|
|
|
|
|
General & administrative – non-cash stock-based
compensation |
|
8,814 |
|
|
|
14,279 |
|
|
|
|
|
|
|
32,725 |
|
|
|
25,197 |
|
|
|
|
|
Deferred compensation plan – non-cash adjustment |
|
6,615 |
|
|
|
(14,466 |
) |
|
|
|
|
|
|
(782 |
) |
|
|
(27,635 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes, as adjusted |
|
68,548 |
|
|
|
25,513 |
|
|
|
169 |
% |
|
|
220,739 |
|
|
|
123,959 |
|
|
|
78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense, as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
Deferred (a) |
|
18,231 |
|
|
|
9,622 |
|
|
|
|
|
|
|
57,748 |
|
|
|
47,250 |
|
|
|
|
|
Net income
excluding certain items, a non-GAAP measure |
$ |
50,317 |
|
|
$ |
15,891 |
|
|
|
217 |
% |
|
$ |
162,991 |
|
|
$ |
76,709 |
|
|
|
112 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
income per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.20 |
|
|
$ |
0.06 |
|
|
|
233 |
% |
|
$ |
0.66 |
|
|
$ |
0.31 |
|
|
|
113 |
% |
Diluted |
$ |
0.20 |
|
|
$ |
0.06 |
|
|
|
233 |
% |
|
$ |
0.66 |
|
|
$ |
0.31 |
|
|
|
113 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
diluted shares outstanding, if dilutive |
|
246,692 |
|
|
|
245,335 |
|
|
|
|
|
|
|
246,530 |
|
|
|
245,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Deferred taxes for 2017 to be approximately 38% and
26% for 2018.
RANGE RESOURCES CORPORATION
RECONCILIATION OF NET (LOSS) INCOME,
EXCLUDINGCERTAIN ITEMS AND ADJUSTMENT EARNINGS PER
SHARE, non-GAAP measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
|
|
Six Months Ended June 30, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income, as reported |
$ |
(79,836 |
) |
|
$ |
69,550 |
|
|
|
$ |
(30,598 |
) |
|
$ |
239,661 |
|
|
Adjustment for certain special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale of assets |
|
(156 |
) |
|
|
(807 |
) |
|
|
|
(179 |
) |
|
|
(23,407 |
) |
|
Loss (gain) on ARO settlements |
|
12 |
|
|
|
40 |
|
|
|
|
12 |
|
|
|
40 |
|
|
Change in fair value related to derivatives prior to
settlement |
|
89,015 |
|
|
|
(107,809 |
) |
|
|
|
111,949 |
|
|
|
(277,547 |
) |
|
Impairment of proved property |
|
15,302 |
|
|
|
— |
|
|
|
|
22,614 |
|
|
|
— |
|
|
Abandonment and impairment of unproved properties |
|
54,922 |
|
|
|
5,193 |
|
|
|
|
66,695 |
|
|
|
9,613 |
|
|
Lawsuit settlements |
|
1,155 |
|
|
|
540 |
|
|
|
|
1,332 |
|
|
|
1,163 |
|
|
Termination costs |
|
— |
|
|
|
(50 |
) |
|
|
|
(37 |
) |
|
|
2,400 |
|
|
Non-cash stock-based compensation |
|
10,037 |
|
|
|
15,671 |
|
|
|
|
35,575 |
|
|
|
29,625 |
|
|
Deferred compensation plan |
|
6,615 |
|
|
|
(14,466 |
) |
|
|
|
(782 |
) |
|
|
(27,635 |
) |
|
Tax impact |
|
(46,749 |
) |
|
|
48,029 |
|
|
|
|
(43,590 |
) |
|
|
122,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) excluding certain items, a non-GAAP
measure |
$ |
50,317 |
|
|
$ |
15,891 |
|
|
|
$ |
162,991 |
|
|
$ |
76,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income per diluted share, as reported |
$ |
(0.32 |
) |
|
$ |
0.28 |
|
|
|
$ |
(0.13 |
) |
|
$ |
0.97 |
|
|
Adjustment for certain special items per diluted
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale of assets |
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
|
(0.00 |
) |
|
|
(0.10 |
) |
|
Change in fair value related to derivatives prior to
settlement |
|
0.36 |
|
|
|
(0.44 |
) |
|
|
|
0.46 |
|
|
|
(1.13 |
) |
|
Impairment of proved property |
|
0.06 |
|
|
|
— |
|
|
|
|
0.09 |
|
|
|
— |
|
|
Abandonment and impairment of unproved properties |
|
0.22 |
|
|
|
0.02 |
|
|
|
|
0.27 |
|
|
|
0.04 |
|
|
Lawsuit settlements |
|
0.00 |
|
|
|
0.00 |
|
|
|
|
0.01 |
|
|
|
0.00 |
|
|
Termination costs |
|
— |
|
|
|
(0.00 |
) |
|
|
|
(0.00 |
) |
|
|
0.01 |
|
|
Non-cash stock-based compensation |
|
0.04 |
|
|
|
0.06 |
|
|
|
|
0.14 |
|
|
|
0.12 |
|
|
Deferred compensation plan |
|
0.03 |
|
|
|
(0.06 |
) |
|
|
|
(0.00 |
) |
|
|
(0.11 |
) |
|
Adjustment for rounding differences |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
0.01 |
|
|
Tax impact |
|
(0.19 |
) |
|
|
0.20 |
|
|
|
|
(0.18 |
) |
|
|
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) per diluted share, excluding certain items, a
non-GAAP measure |
$ |
0.20 |
|
|
$ |
0.06 |
|
|
|
$ |
0.66 |
|
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings (loss) per share, a non-GAAP
measure: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.20 |
|
|
$ |
0.06 |
|
|
|
$ |
0.66 |
|
|
$ |
0.31 |
|
|
Diluted |
$ |
0.20 |
|
|
$ |
0.06 |
|
|
|
$ |
0.66 |
|
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
RECONCILIATION OF CASH MARGIN PER MCFE, a non-GAAP
measure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited,
in thousands, except per unit data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
|
|
Six Months Ended June 30, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and oil sales, as reported |
$ |
661,390 |
|
|
$ |
506,137 |
|
|
|
$ |
1,358,019 |
|
|
$ |
1,065,587 |
|
|
Derivative fair value income (loss), as reported |
|
(103,290 |
) |
|
|
111,195 |
|
|
|
|
(117,299 |
) |
|
|
276,752 |
|
|
Less non-cash fair value (gain) loss |
|
89,015 |
|
|
|
(107,809 |
) |
|
|
|
111,949 |
|
|
|
(277,547 |
) |
|
Brokered natural gas and marketing and other, as
reported |
|
98,084 |
|
|
|
55,779 |
|
|
|
|
158,063 |
|
|
|
107,427 |
|
|
Less ARO settlement and other (gains) losses |
|
(176 |
) |
|
|
237 |
|
|
|
|
(400 |
) |
|
|
170 |
|
|
Cash revenue applicable to production |
|
745,023 |
|
|
|
565,539 |
|
|
|
|
1,510,332 |
|
|
|
1,172,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating, as reported |
|
35,088 |
|
|
|
31,420 |
|
|
|
|
73,210 |
|
|
|
59,443 |
|
|
Less direct operating stock-based compensation |
|
(539 |
) |
|
|
(522 |
) |
|
|
|
(1,130 |
) |
|
|
(1,046 |
) |
|
Transportation, gathering and compression, as reported |
|
269,910 |
|
|
|
191,590 |
|
|
|
|
514,538 |
|
|
|
369,238 |
|
|
Production and ad valorem taxes, as reported |
|
10,140 |
|
|
|
9,969 |
|
|
|
|
20,066 |
|
|
|
19,132 |
|
|
Brokered natural gas and marketing, as reported |
|
102,747 |
|
|
|
55,857 |
|
|
|
|
158,341 |
|
|
|
109,407 |
|
|
Less brokered natural gas and marketing
stock-based compensation |
|
(313 |
) |
|
|
(388 |
) |
|
|
|
(598 |
) |
|
|
(651 |
) |
|
General and administrative, as reported |
|
47,583 |
|
|
|
52,322 |
|
|
|
|
116,000 |
|
|
|
99,818 |
|
|
Less G&A stock-based compensation |
|
(8,814 |
) |
|
|
(14,279 |
) |
|
|
|
(32,725 |
) |
|
|
(25,197 |
) |
|
Less lawsuit settlements |
|
(1,155 |
) |
|
|
(540 |
) |
|
|
|
(1,332 |
) |
|
|
(1,163 |
) |
|
Interest expense, as reported |
|
53,862 |
|
|
|
47,926 |
|
|
|
|
106,247 |
|
|
|
95,027 |
|
|
Less amortization of deferred financing costs |
|
(1,725 |
) |
|
|
(1,794 |
) |
|
|
|
(3,577 |
) |
|
|
(3,572 |
) |
|
Cash expenses |
|
506,784 |
|
|
|
371,561 |
|
|
|
|
949,040 |
|
|
|
720,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin, a non-GAAP measure |
$ |
238,239 |
|
|
$ |
193,978 |
|
|
|
$ |
561,292 |
|
|
$ |
451,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mmcfe
produced during period |
|
200,223 |
|
|
|
176,950 |
|
|
|
|
397,178 |
|
|
|
350,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per mcfe |
$ |
1.19 |
|
|
$ |
1.10 |
|
|
|
$ |
1.41 |
|
|
$ |
1.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF (LOSS) INCOME BEFORE INCOME TAXES TO CASH
MARGIN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited,
in thousands, except per unit data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
|
|
Six Months Ended June 30, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes, as
reported |
$ |
(108,354 |
) |
|
$ |
127,201 |
|
|
|
$ |
(16,440 |
) |
|
$ |
409,707 |
|
|
Adjustments to reconcile (loss) income before income taxes
to cash margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARO settlements and other (gains) losses |
|
(176 |
) |
|
|
237 |
|
|
|
|
(400 |
) |
|
|
170 |
|
|
Derivative fair value (income) loss |
|
103,290 |
|
|
|
(111,195 |
) |
|
|
|
117,299 |
|
|
|
(276,752 |
) |
|
Net cash receipts on derivative settlements |
|
(14,275 |
) |
|
|
3,386 |
|
|
|
|
(5,350 |
) |
|
|
(795 |
) |
|
Exploration expense |
|
7,128 |
|
|
|
13,970 |
|
|
|
|
14,096 |
|
|
|
21,967 |
|
|
Lawsuit settlements |
|
1,155 |
|
|
|
540 |
|
|
|
|
1,332 |
|
|
|
1,163 |
|
|
Termination costs |
|
— |
|
|
|
(50 |
) |
|
|
|
(37 |
) |
|
|
2,400 |
|
|
Deferred compensation plan |
|
6,615 |
|
|
|
(14,466 |
) |
|
|
|
(782 |
) |
|
|
(27,635 |
) |
|
Stock-based compensation (direct operating, brokered natural
gas and marketing, general and administrative and termination
costs) |
|
10,037 |
|
|
|
15,671 |
|
|
|
|
35,575 |
|
|
|
29,625 |
|
|
Interest – amortization of deferred financing costs |
|
1,725 |
|
|
|
1,794 |
|
|
|
|
3,577 |
|
|
|
3,572 |
|
|
Depletion, depreciation and amortization |
|
161,026 |
|
|
|
152,504 |
|
|
|
|
323,292 |
|
|
|
302,325 |
|
|
(Gain) loss on sale of assets |
|
(156 |
) |
|
|
(807 |
) |
|
|
|
(179 |
) |
|
|
(23,407 |
) |
|
Impairment of proved property and other assets |
|
15,302 |
|
|
|
— |
|
|
|
|
22,614 |
|
|
|
— |
|
|
Abandonment and impairment of unproved properties |
|
54,922 |
|
|
|
5,193 |
|
|
|
|
66,695 |
|
|
|
9,613 |
|
|
Cash margin, a non-GAAP measure |
$ |
238,239 |
|
|
$ |
193,978 |
|
|
|
$ |
561,292 |
|
|
$ |
451,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
HEDGING POSITION AS OF July 20, 2018 – (Unaudited)
|
|
|
|
|
Daily Volume |
|
|
|
Hedge Price |
|
|
Gas 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q 2018
Swaps |
|
|
|
1,346,848 Mmbtu |
|
|
|
$2.98 |
|
|
4Q 2018
Swaps |
|
|
|
1,373,261 Mmbtu |
|
|
|
$2.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2018
Sold Calls |
|
|
|
70,000 Mmbtu |
|
|
|
$3.10 2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
Swaps |
|
|
|
832,534 Mmbtu |
|
|
|
$2.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
Swaps |
|
|
|
10,000 Mmbtu |
|
|
|
$2.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q 2018
Swaps |
|
|
|
8,500 bbls |
|
|
|
$53.20 |
|
|
4Q 2018
Swaps |
|
|
|
8,500 bbls |
|
|
|
$53.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
Swaps |
|
|
|
6,624 bbls |
|
|
|
$54.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1H 2020
Swaps |
|
|
|
1,125 bbls |
|
|
|
$57.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
C2
Ethane |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q 2018
Swaps |
|
|
|
1,337 bbls |
|
|
|
$0.315/gallon |
|
|
|
|
|
|
|
|
|
|
|
|
|
C3
Propane 3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q 2018
Swaps |
|
|
|
12,168 bbls |
|
|
|
$0.69/gallon |
|
|
4Q 2018
Swaps |
|
|
|
10,668 bbls |
|
|
|
$0.67/gallon |
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2018
Collars |
|
|
|
1,250 bbls |
|
|
|
$0.90 x $1.00/gallon |
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q 2019
Swaps |
|
|
|
1,500 bbls |
|
|
|
$0.90/gallon |
|
|
|
|
|
|
|
|
|
|
|
|
|
C4
Normal Butane |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q 2018
Swaps |
|
|
|
4,250 bbls |
|
|
|
$0.81/gallon |
|
|
4Q 2018
Swaps |
|
|
|
4,250 bbls |
|
|
|
$0.81/gallon |
|
|
|
|
|
|
|
|
|
|
|
|
|
C5
Natural Gasoline |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q 2018
Swaps |
|
|
|
5,152 bbls |
|
|
|
$1.22/gallon |
|
|
4Q 2018
Swaps |
|
|
|
5,152 bbls |
|
|
|
$1.23/gallon |
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
Swaps |
|
|
|
1,244 bbls |
|
|
|
$1.30/gallon |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Range also sold call swaptions of 380,000 Mmbtu/d for
calendar 2019, and 140,000 Mmbtu/d for calendar 2020 at average
strike prices of $2.96 and $2.81 per Mmbtu,
respectively(2) Sold Calls have an average deferred Premium of
+$0.16 per Mmbtu (3) Swaps incorporate international propane
hedges
SEE WEBSITE FOR OTHER SUPPLEMENTAL
INFORMATION FOR THE PERIODS AND ADDITIONAL HEDGING
DETAILS
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