RANGE RESOURCES CORPORATION (NYSE: RRC) today
announced its second quarter 2019 financial results.
Highlights –
- In July, sold 2% overriding royalty in southwest Pennsylvania
leases for gross proceeds of $600 million
- Sold non-producing acreage in Pennsylvania for gross proceeds
of $34 million
- Cash unit costs of $2.08 per mcfe, an improvement of 5% since
year-end 2018
- Production averaged 2,287 Mmcfe per day, despite unplanned
third-party downtime
- Southwest Pennsylvania production increased 12% over the
prior-year period to 1,958 Mmcfe per day
- Natural gas differentials, including basis hedging, averaged
$0.24 per mcf below NYMEX
- Natural gas, NGLs and oil price realizations before NYMEX
hedging averaged $2.71 per mcfe, a $0.07 premium to NYMEX natural
gas
Commenting on the quarter, Jeff Ventura, the
Company’s CEO and President said, “In the first half of 2019, Range
delivered on key strategic initiatives: generating free cash flow,
improving our cost structure and efficiently executing our
operational plans safely and within budget. At the same time,
we have been successful in generating nearly $1 billion in asset
sale proceeds over the last year while impacting annual cash flow
by less than 4%. The recent royalty sales significantly
de-risk our capital plans and highlight the substantial value of
our assets. Range remains well positioned for the current commodity
cycle with low maintenance capital, flexibility on capital
allocation and a competitive cost structure. As we continue
to make progress on improving the balance sheet, we believe these
competitive advantages will begin to be reflected in the
market.”
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 2019
GAAP revenues for second quarter 2019 totaled
$851 million (a 30% increase compared to second quarter 2018), GAAP
net cash provided from operating activities (including changes in
working capital) was $185 million, compared to $175 million in
second quarter 2018, and GAAP earnings were $115.2 million ($0.46
per diluted share) versus a loss of $79.8 million ($0.32 per
diluted share) in the prior-year second quarter. Second
quarter earnings results include a $195 million derivative gain due
to decreases in commodity prices compared to a $103 million
derivative loss in the prior-year second quarter and a $5.9 million
gain related to asset sales compared to a $0.2 million gain in the
prior-year second quarter.
Non-GAAP revenues for second quarter 2019
totaled $690 million, a decrease of 7% compared to second quarter
2018, and cash flow from operations before changes in working
capital, a non-GAAP measure, was $156 million, compared to $237
million in second quarter 2018. Adjusted net income
comparable to analysts’ estimates, a non-GAAP measure, was $3.8
million ($0.02 per diluted share) in second quarter 2019, compared
to $50.3 million ($0.20 per diluted share) in the prior-year second
quarter.
The following table details Range’s average
production and realized pricing for second quarter 2019:
Net Production |
|
Natural Gas(Mmcf/d) |
|
Oil (Bbl/d) |
|
NGLs(Bbl/d) |
|
Natural GasEquivalent
(Mmcfe/d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,573 |
|
10,795 |
|
108,212 |
|
2,287 |
|
Realized Pricing* |
|
|
Natural Gas($/Mcf) |
|
Oil ($/Bbl) |
|
NGLs($/Bbl) |
|
Natural GasEquivalent
($/Mcfe) |
|
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Average NYMEX price |
|
$2.64 |
|
$60.25 |
|
|
|
|
Differential, including basis
hedging |
|
(0.24) |
|
(6.37) |
|
|
|
|
Realized prices before NYMEX
hedges |
|
2.40 |
|
53.88 |
|
$16.96 |
|
$2.71 |
Settled NYMEX hedges |
|
0.14 |
|
(2.86) |
|
1.62 |
|
0.16 |
Average realized prices after
hedges |
|
$2.54 |
|
$51.02 |
|
$18.58 |
|
$2.87 |
|
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*May not add due to
rounding |
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Second quarter 2019 natural gas, NGLs and oil
price realizations (including the impact of derivative settlements
which correspond to analysts’ estimates) averaged $2.87 per
mcfe. Additional detail on commodity price realizations can
be found in the Supplemental Tables provided on the Company’s
website.
- The average natural gas price, including the impact of basis
hedging, was $2.40 per mcf, or $0.24 per mcf below NYMEX.
Range expects full year 2019 differentials to average between $0.15
and $0.20 below NYMEX.
- Crude oil and condensate price realizations, before realized
hedges, averaged $53.88 per barrel, or $6.37 below West Texas
Intermediate (WTI). Hedging decreased price by $2.86 per
barrel. Range expects full year oil and condensate pricing to
average between $6 and $8 below WTI.
- Pre-hedge NGL realizations were $16.96 per barrel. Price
realizations including hedges were $18.58 per barrel. Range
expects full year 2019 NGL prices to average approximately $1.25
per barrel below the Mont Belvieu weighted equivalent, as shown on
Supplemental Table 9 on the Company’s website. Range expects
to maintain a similar differential to Mont Belvieu for the balance
of 2019 as a result of access to international markets and a
diversified portfolio of ethane contracts.
Unit Costs
The following table details Range’s unit cost
trend since year-end 2018(a):
Expenses |
|
2Q 2019($/Mcfe) |
|
|
1Q 2019 ($/Mcfe) |
|
|
4Q 2018 ($/Mcfe) |
|
|
|
|
|
|
|
|
|
Direct operating(a) |
$ |
0.16 |
|
$ |
0.16 |
|
$ |
0.18 |
Transportation, gathering,
processing and compression |
|
1.45 |
|
|
1.49 |
|
|
1.51 |
Production and ad valorem
taxes |
|
0.05 |
|
|
0.06 |
|
|
0.08 |
General and
administrative(a) |
|
0.18 |
|
|
0.18 |
|
|
0.16 |
Interest expense(a) |
|
0.24 |
|
|
0.25 |
|
|
0.25 |
Total cash unit costs(b) |
|
2.08 |
|
|
2.13 |
|
|
2.18 |
Depletion, depreciation and
amortization (DD&A) |
|
0.68 |
|
|
0.68 |
|
|
0.75 |
Total cash unit costs plus DD&A(b) |
$ |
2.76 |
|
$ |
2.82 |
|
$ |
2.93 |
- Excludes stock-based compensation, legal settlements, rig
release penalties, termination costs and amortization of deferred
financing costs.
- May not add due to rounding.
Second quarter 2019 cash unit costs totaled
$2.08 per mcfe, an improvement of $0.10 per mcfe compared to fourth
quarter of 2018. This improvement was primarily driven by
lower transportation, gathering, processing and compression
(GP&T), direct operating and production tax expense per mcfe.
Range expects an additional 5% reduction in cash unit costs by
year-end 2019, primarily driven by additional improvements in
GP&T and interest expense per mcfe. In total, approximately
two-thirds of the targeted unit cost improvements outlined in the
five-year outlook are expected to be achieved by year-end 2019.
Range anticipates further unit cost improvement in 2020 and beyond
to be driven by lower GP&T, interest, and cash G&A per
mcfe.
Capital Expenditures
Second quarter 2019 drilling and completion
expenditures were $183 million. In addition, during the
quarter, $8 million was spent on acreage purchases and $1 million
on gathering systems. Total capital expenditures during the
first half of 2019 were $418 million, or 55% of the annual
budget. Range remains on target with its $756 million total
capital budget for 2019, which is expected to be funded within cash
flows, excluding asset sale proceeds.
Asset Sale
In July, Range sold a 2% proportionately reduced
overriding royalty interest in 350,000 net surface acres in
southwest Appalachia for gross proceeds totaling $600
million. The royalty sales were effective as of March 1,
2019, and apply to existing and future Marcellus, Utica and Upper
Devonian development on the subject leases. Starting in the third
quarter, the impact of sold production associated with the royalty
sales is expected to be approximately 50 Mmcfe per day.
During the second quarter, Range also completed
the sale of certain non-producing acreage in Pennsylvania for gross
proceeds of $34 million. The properties sold included
approximately 20,000 acres in northwest Armstrong County.
The combined gross proceeds of $634 million will
be used to repay amounts outstanding under the Company’s revolving
credit facility, reducing total debt by approximately 17%.
Annual interest expense is expected to decline by approximately $30
million, offsetting a significant amount of the cash flow reduction
associated with the asset sales. Sale processes to monetize
additional non-core assets remain underway.
Operational Discussion
The table below summarizes estimated activity
for 2019 regarding the number of wells to sales for each
area.
|
|
|
Wells TIL1Q 2019 |
|
Wells TIL2Q 2019 |
|
Calendar 2019Planned TIL |
|
Remaining2H 2019 |
SW PA Super-Rich |
|
|
3 |
|
8 |
|
14 |
|
3 |
SW PA Wet |
|
|
0 |
|
8 |
|
41 |
|
33 |
SW PA Dry |
|
|
20 |
|
0 |
|
33 |
|
13 |
Total Appalachia |
|
|
23 |
|
16 |
|
88 |
|
49 |
|
|
|
|
|
|
|
|
|
|
Total N. LA. |
|
|
3 |
|
2 |
|
8 |
|
3 |
Total |
|
|
26 |
|
18 |
|
96 |
|
52 |
Appalachia Division
Production for second quarter 2019 averaged
approximately 2,062 net Mmcfe per day from the Appalachia division,
a 10% increase over the prior-year second quarter. During the
quarter, Range was impacted by unplanned downtime at a MarkWest
facility that impacted second quarter production. The
operational issues were caused by a temporary electrical outage
that has since been resolved. Despite the third-party
interruption, the southwest area of the division averaged 1,958 net
Mmcfe per day during second quarter 2019, a 12% increase over
second quarter 2018. The northeast Marcellus properties
averaged 104 net Mmcf per day inclusive of approximately 16 net
Mmcf per day of legacy acreage production during second quarter
2019.
North Louisiana
Production for second quarter 2019 averaged
approximately 225 net Mmcfe per day. The division brought on
line two wells during the quarter and expects to bring on line
three additional wells during the remainder of the year.
Marketing and
Transportation
NGL pricing has experienced significant
volatility over the past several quarters, disconnecting from
historical relationships to WTI. To aid investors, Range has
included a Supplemental Table on the Company website, that
calculates an expectation of next quarter’s NGL price based on
recent pricing. The supplemental table is expected to be
updated with each quarterly earnings release.
The Mariner East 1 pipeline was returned to
service in late April, allowing Range to resume exports of 20,000
barrels per day of ethane and 20,000 barrels per day of
propane. During the quarter, Range transported additional
propane and butane to Marcus Hook for subsequent waterborne exports
using available pipeline and rail capacity. Recently, the
international arbs for LPG (propane and butane) expanded to the
highest levels in five years on very strong international
demand. Curtailments in supply from various international
regions resulted in US export terminals running at or near maximum
capacity during the quarter. This set of market dynamics
resulted in strong premiums on exported barrels relative to
domestic market sales.
The startup of Mariner East 2 at the end of 2018
has improved Northeast supply-demand fundamentals for propane and
butane. The project exports approximately 165,000 barrels per
day, which represent 60% of Northeast field production, allowing
LPG to reach international markets instead of building in local
storage. As of mid-July, propane stocks in the Northeast are
13% below this time last year. This has resulted in a
stronger regional price relative to the Mont Belvieu index versus
the same time last year. Coupled with the strong netbacks on
exports, this resulted in Range’s NGL price differential to Mont
Belvieu narrowing to its best levels to date in the second
quarter.
Also, during the quarter, three new natural gas
liquefaction terminals started their commissioning process with
daily demand reaching over 6 Bcf per day and set to grow to 10 Bcf
per day in 2020. Range currently has agreements to supply a
combined 440 Mmcf per day to five different liquefaction facilities
by utilizing existing infrastructure and production.
Additionally, Range is in discussions with the next wave of
LNG projects seeking to secure long-term supply to support the
development of incremental export capacity. Coupled with the
existing liquefaction terminals already on-line, Range expects LNG
feedstock demand to grow to approximately 18 Bcf per day by
2024.
Guidance – 2019
Production per day Guidance
Production for third quarter 2019 is expected to
be ~2.25 – 2.26 Bcfe per day, which excludes approximately 50 Mmcfe
per day from asset sales. Production for the full year 2019 is
expected to be ~2.3 Bcfe per day, which is in line with prior
guidance after adjusting for asset sales.
3Q 2019 Expense Guidance
Direct operating expense: |
|
$0.16 − $0.17 per mcfe |
Transportation, gathering,
processing and compression expense: |
|
$1.45− $1.48 per mcfe |
Production tax expense: |
|
$0.04 − $0.06 per mcfe |
Exploration expense: |
|
$7.0 − $9.0 million |
Unproved property impairment
expense: |
|
$15.0 − $18.0 million |
G&A expense: |
|
$0.18 − $0.20 per mcfe |
Interest expense: |
|
$0.20 − $0.22 per mcfe |
DD&A expense: |
|
$0.68 − $0.72 per mcfe |
Net brokered gas marketing
expense: |
|
~$6.0 million |
3Q 2019 Natural Gas Price Differentials (including basis
hedging):
NYMEX minus $0.29
Full Year 2019 Price Guidance
Based on current market indications, Range expects to average
the following pre-hedge differentials for calendar 2019
production.
|
FY 2019 Guidance |
Natural Gas: |
NYMEX minus $0.15 to $0.20 |
Natural Gas Liquids: (1) |
Mont Belvieu minus $1.20 to $1.30 per barrel |
Oil/Condensate: |
WTI minus $6.00 to $8.00 |
- Weighting based on 53% ethane, 27% propane, 7% normal butane,
4% iso-butane and 9% natural gasoline.
Hedging Status
Range hedges portions of its expected future
production 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 2019 natural gas
production hedged at a weighted average floor price of $2.81 per
Mmbtu. Similarly, Range has hedged over 80% of its second
half 2019 projected crude oil production at an average floor price
of $56.62. 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 $2.0
million as of June 30, 2019. 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 $1.8 million on June 30,
2019.
Conference Call InformationA
conference call to review the financial results is scheduled on
Friday, July 26 at 9:00 a.m. ET. To participate in the call,
please dial 866-900-7525 and provide conference code 5476872 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
26, 2019. Non-GAAP Financial Measures
Adjusted net income comparable to analysts’
estimates as set forth in this release represents income or loss
from operations before income taxes adjusted for certain non-cash
items (detailed in the accompanying table) less income taxes.
We believe adjusted net income comparable to analysts’ estimates is
calculated on the same basis as analysts’ estimates and that many
investors use this published research in making investment
decisions and evaluating operational trends of the Company and its
performance relative to other oil and gas producing
companies. Diluted earnings per share (adjusted) as set forth
in this release represents adjusted net income comparable to
analysts’ estimates on a diluted per share basis. A table is
included which reconciles income or loss from operations to
adjusted net income comparable to analysts’ estimates and diluted
earnings per share (adjusted). The Company provides
additional comparative information on prior periods along with
non-GAAP revenue disclosures on its website.
Cash flow from operations before changes in
working capital (sometimes referred to as “adjusted cash flow”) as
defined in this release represents net cash provided by operations
before changes in working capital and exploration expense adjusted
for certain non-cash compensation items. Cash flow from
operations before changes in working capital is widely accepted by
the investment community as a financial indicator of an oil and gas
company’s ability to generate cash to internally fund exploration
and development activities and to service debt. Cash flow
from operations before changes in working capital is also useful
because it is widely used by professional research analysts in
valuing, comparing, rating and providing investment recommendations
of companies in the oil and gas exploration and production
industry. In turn, many investors use this published research
in making investment decisions. Cash flow from operations
before changes in working capital is not a measure of financial
performance under GAAP and should not be considered as an
alternative to cash flows from operations, investing, or financing
activities as an indicator of cash flows, or as a measure of
liquidity. A table is included which reconciles net cash
provided by operations to cash flow from operations before changes
in working capital as used in this release. On its website,
the Company provides additional comparative information on prior
periods for cash flow, cash margins and non-GAAP earnings as used
in this release.
The cash prices realized for oil and natural gas
production, including the amounts realized on cash-settled
derivatives and net of transportation, gathering, processing and
compression expense, is a critical component in the Company’s
performance tracked by investors and professional research analysts
in valuing, comparing, rating and providing investment
recommendations and forecasts of companies in the oil and gas
exploration and production industry. In turn, many investors
use this published research in making investment decisions.
Due to the GAAP disclosures of various derivative transactions and
third-party transportation, gathering, processing and compression
expense, such information is now reported in various lines of the
income statement. The Company believes that it is important
to furnish a table reflecting the details of the various components
of each line in the statement of operations to better inform the
reader of the details of each amount and provide a summary of the
realized cash-settled amounts and third-party transportation,
gathering, processing and compression expense which were
historically reported as natural gas, NGLs and oil sales.
This information is intended to bridge the gap between various
readers’ understanding and fully disclose the information
needed.
The Company discloses in this release the
detailed components of many of the single line items shown in the
GAAP financial statements included in the Company’s quarterly
report on Form 10-Q. The Company believes that it is
important to furnish this detail of the various components
comprising each line of the Statements of Operations to better
inform the reader of the details of each amount, the changes
between periods and the effect on its financial results.
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 development strategy targeting high return, low-cost
projects within its large inventory of low risk development
drilling opportunities. The Company is headquartered in Fort
Worth, Texas. More information about Range can be found at
www.rangeresources.com.
Included within this 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 in this release 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.SOURCE: Range Resources Corporation
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:
Mark Windle, Manager of Corporate
Communications724-873-3223mwindle@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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2019 |
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2018 |
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% |
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2019 |
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2018 |
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% |
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Revenues and other income: |
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Natural gas, NGLs and oil sales (a) |
$ |
563,579 |
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$ |
661,390 |
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|
|
|
$ |
1,235,233 |
|
|
$ |
1,358,019 |
|
|
|
|
|
Derivative fair value income/(loss) |
|
195,245 |
|
|
|
(103,290 |
) |
|
|
|
|
|
|
133,514 |
|
|
|
(117,299 |
) |
|
|
|
|
Brokered natural gas, marketing and other (b) |
|
91,940 |
|
|
|
97,908 |
|
|
|
|
|
|
|
230,083 |
|
|
|
157,663 |
|
|
|
|
|
ARO settlement gain (loss) (b) |
|
— |
|
|
|
(12 |
) |
|
|
|
|
|
|
— |
|
|
|
(12 |
) |
|
|
|
|
Other (b) |
|
665 |
|
|
|
188 |
|
|
|
|
|
|
|
736 |
|
|
|
412 |
|
|
|
|
|
Total revenues and other income |
|
851,429 |
|
|
|
656,184 |
|
|
|
30 |
% |
|
|
1,599,566 |
|
|
|
1,398,783 |
|
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating |
|
33,432 |
|
|
|
34,549 |
|
|
|
|
|
|
|
66,068 |
|
|
|
72,080 |
|
|
|
|
|
Direct operating – non-cash stock-based compensation (c) |
|
549 |
|
|
|
539 |
|
|
|
|
|
|
|
1,140 |
|
|
|
1,130 |
|
|
|
|
|
Transportation, gathering, processing and compression |
|
301,219 |
|
|
|
269,910 |
|
|
|
|
|
|
|
603,874 |
|
|
|
514,538 |
|
|
|
|
|
Production and ad valorem taxes |
|
9,889 |
|
|
|
10,140 |
|
|
|
|
|
|
|
21,199 |
|
|
|
20,066 |
|
|
|
|
|
Brokered natural gas and marketing |
|
100,564 |
|
|
|
102,434 |
|
|
|
|
|
|
|
232,421 |
|
|
|
157,743 |
|
|
|
|
|
Brokered natural gas and marketing – non-cash stock-based
compensation (c) |
|
553 |
|
|
|
313 |
|
|
|
|
|
|
|
1,001 |
|
|
|
598 |
|
|
|
|
|
Exploration |
|
7,721 |
|
|
|
7,128 |
|
|
|
|
|
|
|
15,444 |
|
|
|
14,096 |
|
|
|
|
|
Exploration – non-cash stock-based compensation (c) |
|
388 |
|
|
|
371 |
|
|
|
|
|
|
|
876 |
|
|
|
1,122 |
|
|
|
|
|
Abandonment and impairment of unproved properties |
|
12,770 |
|
|
|
54,922 |
|
|
|
|
|
|
|
25,429 |
|
|
|
66,695 |
|
|
|
|
|
General and administrative |
|
38,505 |
|
|
|
39,114 |
|
|
|
|
|
|
|
74,799 |
|
|
|
83,443 |
|
|
|
|
|
General and administrative – non-cash stock-based compensation
(c) |
|
9,500 |
|
|
|
8,814 |
|
|
|
|
|
|
|
19,138 |
|
|
|
32,725 |
|
|
|
|
|
General and administrative – lawsuit settlements |
|
1,190 |
|
|
|
1,155 |
|
|
|
|
|
|
|
1,896 |
|
|
|
1,332 |
|
|
|
|
|
General and administrative – rig release penalty |
|
1,436 |
|
|
|
— |
|
|
|
|
|
|
|
1,436 |
|
|
|
— |
|
|
|
|
|
General and administrative – bad debt expense |
|
— |
|
|
|
(1,500 |
) |
|
|
|
|
|
|
— |
|
|
|
(1,500 |
) |
|
|
|
|
Termination costs |
|
2,180 |
|
|
|
— |
|
|
|
|
|
|
|
2,180 |
|
|
|
(37 |
) |
|
|
|
|
Termination costs – non-cash stock-based compensation (c) |
|
26 |
|
|
|
— |
|
|
|
|
|
|
|
26 |
|
|
|
— |
|
|
|
|
|
Deferred compensation plan (d) |
|
(11,142 |
) |
|
|
6,615 |
|
|
|
|
|
|
|
(7,561 |
) |
|
|
(782 |
) |
|
|
|
|
Interest expense |
|
49,922 |
|
|
|
52,137 |
|
|
|
|
|
|
|
99,671 |
|
|
|
102,670 |
|
|
|
|
|
Interest expense – amortization of deferred financing costs
(e) |
|
1,805 |
|
|
|
1,725 |
|
|
|
|
|
|
|
3,593 |
|
|
|
3,577 |
|
|
|
|
|
Depletion, depreciation and amortization |
|
141,505 |
|
|
|
161,026 |
|
|
|
|
|
|
|
280,223 |
|
|
|
323,292 |
|
|
|
|
|
Impairment of proved properties |
|
— |
|
|
|
15,302 |
|
|
|
|
|
|
|
— |
|
|
|
22,614 |
|
|
|
|
|
Gain on sale of assets |
|
(5,867 |
) |
|
|
(156 |
) |
|
|
|
|
|
|
(5,678 |
) |
|
|
(179 |
) |
|
|
|
|
Total costs and expenses |
|
696,145 |
|
|
|
764,538 |
|
|
|
-9 |
% |
|
|
1,437,175 |
|
|
|
1,415,223 |
|
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes |
|
155,284 |
|
|
|
(108,354 |
) |
|
|
243 |
% |
|
|
162,391 |
|
|
|
(16,440 |
) |
|
|
1088 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
Deferred |
|
40,099 |
|
|
|
(28,518 |
) |
|
|
|
|
|
|
45,787 |
|
|
|
14,158 |
|
|
|
|
|
|
|
40,099 |
|
|
|
(28,518 |
) |
|
|
|
|
|
|
45,787 |
|
|
|
14,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
115,185 |
|
|
$ |
(79,836 |
) |
|
|
244 |
% |
|
$ |
116,604 |
|
|
$ |
(30,598 |
) |
|
|
481 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per
Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.46 |
|
|
$ |
(0.32 |
) |
|
|
|
|
|
$ |
0.46 |
|
|
$ |
(0.13 |
) |
|
|
|
|
Diluted |
$ |
0.46 |
|
|
$ |
(0.32 |
) |
|
|
|
|
|
$ |
0.46 |
|
|
$ |
(0.13 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding, as reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
247,770 |
|
|
|
245,880 |
|
|
|
1 |
% |
|
|
247,773 |
|
|
|
245,795 |
|
|
|
1 |
% |
Diluted |
|
248,436 |
|
|
|
245,880 |
|
|
|
1 |
% |
|
|
249,042 |
|
|
|
245,795 |
|
|
|
1 |
% |
|
|
|
|
|
(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 SHEETS |
|
|
|
|
|
|
|
(In thousands) |
|
June 30, |
|
|
|
December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
(Unaudited) |
|
|
|
(Audited) |
|
Assets |
|
|
|
|
|
|
|
Current assets |
$ |
316,508 |
|
|
$ |
514,232 |
|
Derivative assets |
|
163,136 |
|
|
|
92,795 |
|
Natural gas and oil properties, successful efforts method |
|
9,120,677 |
|
|
|
9,023,185 |
|
Transportation and field assets |
|
7,343 |
|
|
|
9,776 |
|
Operating lease right-of-use assets |
|
48,893 |
|
|
|
— |
|
Other |
|
71,751 |
|
|
|
68,166 |
|
|
$ |
9,728,308 |
|
|
$ |
9,708,154 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’
Equity |
|
|
|
|
|
|
|
Current liabilities |
$ |
606,849 |
|
|
$ |
745,182 |
|
Asset retirement obligations |
|
5,485 |
|
|
|
5,485 |
|
Derivative liabilities |
|
1,297 |
|
|
|
4,144 |
|
|
|
|
|
|
|
|
|
Bank debt |
|
885,286 |
|
|
|
932,018 |
|
Senior notes |
|
2,858,445 |
|
|
|
2,856,166 |
|
Senior subordinated notes |
|
48,724 |
|
|
|
48,677 |
|
Total debt |
|
3,792,455 |
|
|
|
3,836,861 |
|
|
|
|
|
|
|
|
|
Deferred tax liability |
|
712,495 |
|
|
|
666,668 |
|
Derivative liabilities |
|
1,478 |
|
|
|
3,462 |
|
Deferred compensation liability |
|
62,431 |
|
|
|
67,542 |
|
Asset retirement obligations and other liabilities |
|
363,565 |
|
|
|
319,379 |
|
|
|
|
|
|
|
|
|
Common stock and retained earnings |
|
4,183,182 |
|
|
|
4,060,480 |
|
Other comprehensive loss |
|
(538 |
) |
|
|
(658 |
) |
Common stock held in treasury stock |
|
(391 |
) |
|
|
(391 |
) |
Total stockholders’ equity |
|
4,182,253 |
|
|
|
4,059,431 |
|
|
$ |
9,728,308 |
|
|
$ |
9,708,154 |
|
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, |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and other income,
as reported |
$ |
851,429 |
|
|
$ |
656,184 |
|
|
|
30 |
% |
|
$ |
1,599,566 |
|
|
$ |
1,398,783 |
|
|
|
14 |
% |
Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total change in fair value related to derivatives prior to
settlement (gain) loss |
|
(161,738 |
) |
|
|
89,015 |
|
|
|
|
|
|
|
(75,173 |
) |
|
|
111,949 |
|
|
|
|
|
ARO settlement loss (gain) |
|
— |
|
|
|
12 |
|
|
|
|
|
|
|
— |
|
|
|
12 |
|
|
|
|
|
Total revenues, as adjusted, non-GAAP |
$ |
689,691 |
|
|
$ |
745,211 |
|
|
|
-7 |
% |
|
$ |
1,524,393 |
|
|
$ |
1,510,744 |
|
|
|
1 |
% |
RANGE RESOURCES CORPORATION
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
115,185 |
|
|
$ |
(79,836 |
) |
|
$ |
116,604 |
|
|
$ |
(30,598 |
) |
Adjustments to reconcile net
cash provided from continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax expense (benefit) |
|
40,099 |
|
|
|
(28,518 |
) |
|
|
45,787 |
|
|
|
14,158 |
|
Depletion, depreciation, amortization and impairment |
|
141,505 |
|
|
|
176,328 |
|
|
|
280,223 |
|
|
|
345,906 |
|
Exploration dry hole costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Abandonment and impairment of unproved properties |
|
12,770 |
|
|
|
54,922 |
|
|
|
25,429 |
|
|
|
66,695 |
|
Derivative fair value (income) loss |
|
(195,245 |
) |
|
|
103,290 |
|
|
|
(133,514 |
) |
|
|
117,299 |
|
Cash settlements on derivative financial instruments that do not
qualify for hedge accounting |
|
33,507 |
|
|
|
(14,275 |
) |
|
|
58,341 |
|
|
|
(5,350 |
) |
Allowance for bad debts |
|
— |
|
|
|
(1,500 |
) |
|
|
— |
|
|
|
(1,500 |
) |
Amortization of deferred issuance costs, loss on extinguishment of
debt, and other |
|
1,436 |
|
|
|
1,064 |
|
|
|
3,243 |
|
|
|
2,376 |
|
Deferred and stock-based compensation |
|
(385 |
) |
|
|
15,640 |
|
|
|
13,727 |
|
|
|
34,167 |
|
Gain on sale of assets and other |
|
(5,867 |
) |
|
|
(156 |
) |
|
|
(5,678 |
) |
|
|
(179 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in working capital: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
67,422 |
|
|
|
(68,338 |
) |
|
|
201,428 |
|
|
|
(14,425 |
) |
Inventory and other |
|
(272 |
) |
|
|
6,090 |
|
|
|
(5,035 |
) |
|
|
796 |
|
Accounts payable |
|
1,299 |
|
|
|
(32,838 |
) |
|
|
(29,132 |
) |
|
|
14,615 |
|
Accrued liabilities and other |
|
(26,632 |
) |
|
|
43,070 |
|
|
|
(125,907 |
) |
|
|
1,553 |
|
Net changes in working capital |
|
41,817 |
|
|
|
(52,016 |
) |
|
|
41,354 |
|
|
|
2,539 |
|
Net cash provided from operating activities |
$ |
184,822 |
|
|
$ |
174,943 |
|
|
$ |
445,516 |
|
|
$ |
545,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Net cash provided from operating
activities, as reported |
$ |
184,822 |
|
|
$ |
174,943 |
|
|
$ |
445,516 |
|
|
$ |
545,515 |
|
Net changes in working capital |
|
(41,817 |
) |
|
|
52,016 |
|
|
|
(41,354 |
) |
|
|
(2,539 |
) |
Exploration expense |
|
7,721 |
|
|
|
7,128 |
|
|
|
15,444 |
|
|
|
14,094 |
|
Lawsuit settlements |
|
1,190 |
|
|
|
1,155 |
|
|
|
1,896 |
|
|
|
1,332 |
|
Termination costs |
|
2,180 |
|
|
|
— |
|
|
|
2,180 |
|
|
|
(37 |
) |
Rig release penalty |
|
1,436 |
|
|
|
— |
|
|
|
1,436 |
|
|
|
— |
|
Non-cash compensation adjustment |
|
628 |
|
|
|
1,685 |
|
|
|
1,243 |
|
|
|
1,839 |
|
Cash flow from operations before changes in working capital –
non-GAAP measure |
$ |
156,160 |
|
|
$ |
236,927 |
|
|
$ |
426,361 |
|
|
$ |
560,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED WEIGHTED AVERAGE
SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
251,242 |
|
|
|
249,324 |
|
|
|
250,784 |
|
|
|
248,952 |
|
Stock held by deferred
compensation plan |
|
(3,472 |
) |
|
|
(3,444 |
) |
|
|
(3,011 |
) |
|
|
(3,157 |
) |
Adjusted basic |
|
247,770 |
|
|
|
245,880 |
|
|
|
247,773 |
|
|
|
245,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
251,242 |
|
|
|
249,324 |
|
|
|
250,784 |
|
|
|
248,952 |
|
Dilutive stock options under
treasury method |
|
(2,806 |
) |
|
|
(3,444 |
) |
|
|
(1,742 |
) |
|
|
(3,157 |
) |
Adjusted dilutive |
|
248,436 |
|
|
|
245,880 |
|
|
|
249,042 |
|
|
|
245,795 |
|
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, |
|
|
|
2019 |
|
|
|
2018 |
|
% |
|
|
|
2019 |
|
|
|
2018 |
|
% |
|
Natural gas, NGL and oil sales
components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
343,623 |
|
|
$ |
360,351 |
|
|
|
|
$ |
778,343 |
|
|
$ |
791,924 |
|
|
|
NGL sales |
|
167,027 |
|
|
|
224,703 |
|
|
|
|
|
364,840 |
|
|
|
427,230 |
|
|
|
Oil sales |
|
52,929 |
|
|
|
76,336 |
|
|
|
|
|
92,050 |
|
|
|
138,865 |
|
|
|
Total oil and gas sales, as reported |
$ |
563,579 |
|
|
$ |
661,390 |
|
-15 |
% |
|
$ |
1,235,233 |
|
|
$ |
1,358,019 |
|
-9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative fair value income
(loss), as reported: |
$ |
195,245 |
|
|
$ |
(103,290 |
) |
|
|
|
$ |
133,514 |
|
|
$ |
(117,299 |
) |
|
|
Cash settlements on derivative
financial instruments – (gain) loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
|
(20,396 |
) |
|
|
(18,113 |
) |
|
|
|
|
(19,524 |
) |
|
|
(50,621 |
) |
|
|
NGLs |
|
(15,918 |
) |
|
|
20,144 |
|
|
|
|
|
(40,782 |
) |
|
|
35,412 |
|
|
|
Crude Oil |
|
2,807 |
|
|
|
12,244 |
|
|
|
|
|
1,965 |
|
|
|
20,559 |
|
|
|
Total change in fair value
related to derivatives prior to settlement, a non-GAAP measure |
$ |
161,738 |
|
|
$ |
(89,015 |
) |
|
|
|
$ |
75,173 |
|
|
$ |
(111,949 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering,
processing and compression components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
$ |
185,353 |
|
|
$ |
164,064 |
|
|
|
|
$ |
374,435 |
|
|
$ |
321,298 |
|
|
|
NGLs |
|
115,866 |
|
|
|
105,846 |
|
|
|
|
|
229,439 |
|
|
|
193,240 |
|
|
|
Total transportation, gathering, processing and compression, as
reported |
$ |
301,219 |
|
|
$ |
269,910 |
|
|
|
|
$ |
603,874 |
|
|
$ |
514,538 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and oil sales,
including cash-settled derivatives: (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
364,019 |
|
|
$ |
378,464 |
|
|
|
|
$ |
797,867 |
|
|
$ |
842,545 |
|
|
|
NGL sales |
|
182,945 |
|
|
|
204,559 |
|
|
|
|
|
405,622 |
|
|
|
391,818 |
|
|
|
Oil sales |
|
50,122 |
|
|
|
64,092 |
|
|
|
|
|
90,085 |
|
|
|
118,306 |
|
|
|
Total |
$ |
597,086 |
|
|
$ |
647,115 |
|
-8 |
% |
|
$ |
1,293,574 |
|
|
$ |
1,352,669 |
|
-4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas during
the periods (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
143,163,003 |
|
|
|
136,057,805 |
|
5 |
% |
|
|
283,684,666 |
|
|
|
271,011,900 |
|
5 |
% |
NGL (bbl) |
|
9,847,268 |
|
|
|
9,483,910 |
|
4 |
% |
|
|
19,459,815 |
|
|
|
18,753,941 |
|
4 |
% |
Oil (bbl) |
|
982,324 |
|
|
|
1,210,379 |
|
-19 |
% |
|
|
1,787,874 |
|
|
|
2,273,813 |
|
-21 |
% |
Gas equivalent (mcfe) (b) |
|
208,140,555 |
|
|
|
200,223,539 |
|
4 |
% |
|
|
411,170,800 |
|
|
|
397,178,424 |
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas –
average per day (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
1,573,220 |
|
|
|
1,495,141 |
|
5 |
% |
|
|
1,567,319 |
|
|
|
1,497,303 |
|
5 |
% |
NGL (bbl) |
|
108,212 |
|
|
|
104,219 |
|
4 |
% |
|
|
107,513 |
|
|
|
103,613 |
|
4 |
% |
Oil (bbl) |
|
10,795 |
|
|
|
13,301 |
|
-19 |
% |
|
|
9,878 |
|
|
|
12,563 |
|
-21 |
% |
Gas equivalent (mcfe) (b) |
|
2,287,259 |
|
|
|
2,200,259 |
|
4 |
% |
|
|
2,271,662 |
|
|
|
2,194,356 |
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, excluding
derivative settlements and before third party transportation
costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
2.40 |
|
|
$ |
2.65 |
|
-9 |
% |
|
$ |
2.74 |
|
|
$ |
2.92 |
|
-6 |
% |
NGL (bbl) |
$ |
16.96 |
|
|
$ |
23.69 |
|
-28 |
% |
|
$ |
18.75 |
|
|
$ |
22.78 |
|
-18 |
% |
Oil (bbl) |
$ |
53.88 |
|
|
$ |
63.07 |
|
-15 |
% |
|
$ |
51.49 |
|
|
$ |
61.07 |
|
-16 |
% |
Gas equivalent (mcfe) (b) |
$ |
2.71 |
|
|
$ |
3.30 |
|
-18 |
% |
|
$ |
3.00 |
|
|
$ |
3.42 |
|
-12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including
derivative settlements before third party transportation costs:
(c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
2.54 |
|
|
$ |
2.78 |
|
-9 |
% |
|
$ |
2.81 |
|
|
$ |
3.11 |
|
-10 |
% |
NGL (bbl) |
$ |
18.58 |
|
|
$ |
21.57 |
|
-14 |
% |
|
$ |
20.84 |
|
|
$ |
20.89 |
|
0 |
% |
Oil (bbl) |
$ |
51.02 |
|
|
$ |
52.95 |
|
-4 |
% |
|
$ |
50.39 |
|
|
$ |
52.03 |
|
-3 |
% |
Gas equivalent (mcfe) (b) |
$ |
2.87 |
|
|
$ |
3.23 |
|
-11 |
% |
|
$ |
3.15 |
|
|
$ |
3.41 |
|
-8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including
derivative settlements and after third party transportation costs:
(d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
1.25 |
|
|
$ |
1.58 |
|
-21 |
% |
|
$ |
1.49 |
|
|
$ |
1.92 |
|
-22 |
% |
NGL (bbl) |
$ |
6.81 |
|
|
$ |
10.41 |
|
-35 |
% |
|
$ |
9.05 |
|
|
$ |
10.59 |
|
-14 |
% |
Oil (bbl) |
$ |
51.02 |
|
|
$ |
52.95 |
|
-4 |
% |
|
$ |
50.39 |
|
|
$ |
52.03 |
|
-3 |
% |
Gas equivalent (mcfe) (b) |
$ |
1.42 |
|
|
$ |
1.88 |
|
-25 |
% |
|
$ |
1.68 |
|
|
$ |
2.11 |
|
-21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering and
compression expense per mcfe |
$ |
1.45 |
|
|
$ |
1.35 |
|
7 |
% |
|
$ |
1.47 |
|
|
$ |
1.30 |
|
13 |
% |
|
|
|
|
(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 BEFORE INCOME TAXESAS 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, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
before income taxes, as reported |
$ |
155,284 |
|
|
$ |
(108,354 |
) |
|
|
243 |
% |
|
$ |
162,391 |
|
|
$ |
(16,440 |
) |
|
|
1088 |
% |
Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on sale of assets |
|
(5,867 |
) |
|
|
(156 |
) |
|
|
|
|
|
|
(5,678 |
) |
|
|
(179 |
) |
|
|
|
|
Gain on ARO settlements |
|
— |
|
|
|
12 |
|
|
|
|
|
|
|
— |
|
|
|
12 |
|
|
|
|
|
Change in fair value related to derivatives prior to
settlement |
|
(161,738 |
) |
|
|
89,015 |
|
|
|
|
|
|
|
(75,173 |
) |
|
|
111,949 |
|
|
|
|
|
Rig release penalty |
|
1,436 |
|
|
|
— |
|
|
|
|
|
|
|
1,436 |
|
|
|
— |
|
|
|
|
|
Abandonment and impairment of unproved properties |
|
12,770 |
|
|
|
54,922 |
|
|
|
|
|
|
|
25,429 |
|
|
|
66,695 |
|
|
|
|
|
Impairment of proved property |
|
— |
|
|
|
15,302 |
|
|
|
|
|
|
|
— |
|
|
|
22,614 |
|
|
|
|
|
Lawsuit settlements |
|
1,190 |
|
|
|
1,155 |
|
|
|
|
|
|
|
1,896 |
|
|
|
1,332 |
|
|
|
|
|
Termination costs |
|
2,180 |
|
|
|
— |
|
|
|
|
|
|
|
2,180 |
|
|
|
(37 |
) |
|
|
|
|
Termination costs – non-cash stock-based compensation |
|
26 |
|
|
|
— |
|
|
|
|
|
|
|
26 |
|
|
|
— |
|
|
|
|
|
Brokered natural gas and marketing – non-cash stock-based
compensation |
|
553 |
|
|
|
313 |
|
|
|
|
|
|
|
1,001 |
|
|
|
598 |
|
|
|
|
|
Direct operating – non-cash stock-based compensation |
|
549 |
|
|
|
539 |
|
|
|
|
|
|
|
1,140 |
|
|
|
1,130 |
|
|
|
|
|
Exploration expenses – non-cash stock-based compensation |
|
388 |
|
|
|
371 |
|
|
|
|
|
|
|
876 |
|
|
|
1,122 |
|
|
|
|
|
General & administrative – non-cash stock-based
compensation |
|
9,500 |
|
|
|
8,814 |
|
|
|
|
|
|
|
19,138 |
|
|
|
32,725 |
|
|
|
|
|
Deferred compensation plan – non-cash adjustment |
|
(11,142 |
) |
|
|
6,615 |
|
|
|
|
|
|
|
(7,561 |
) |
|
|
(782 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes, as
adjusted |
|
5,129 |
|
|
|
68,548 |
|
|
|
-93 |
% |
|
|
127,101 |
|
|
|
220,739 |
|
|
|
-42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense, as
adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
Deferred (a) |
|
1,282 |
|
|
|
18,231 |
|
|
|
|
|
|
|
31,792 |
|
|
|
57,748 |
|
|
|
|
|
Net income excluding certain items, a non-GAAP measure |
$ |
3,847 |
|
|
$ |
50,317 |
|
|
|
-92 |
% |
|
$ |
95,309 |
|
|
$ |
162,991 |
|
|
|
-42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income per common
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.02 |
|
|
$ |
0.20 |
|
|
|
-90 |
% |
|
$ |
0.38 |
|
|
$ |
0.66 |
|
|
|
-42 |
% |
Diluted |
$ |
0.02 |
|
|
$ |
0.20 |
|
|
|
-90 |
% |
|
$ |
0.38 |
|
|
$ |
0.66 |
|
|
|
-42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted shares
outstanding, if dilutive |
|
248,436 |
|
|
|
246,692 |
|
|
|
|
|
|
|
249,042 |
|
|
|
246,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Deferred taxes are estimated to be approximately 25% for
2019 and 26% for 2018. |
|
|
|
|
|
RANGE RESOURCES CORPORATION
RECONCILIATION OF NET INCOME (LOSS),
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, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as
reported |
$ |
115,185 |
|
|
$ |
(79,836 |
) |
|
|
$ |
116,604 |
|
|
$ |
(30,598 |
) |
Adjustment for certain
special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets |
|
(5,867 |
) |
|
|
(156 |
) |
|
|
|
(5,678 |
) |
|
|
(179 |
) |
Loss (gain) on ARO settlements |
|
— |
|
|
|
12 |
|
|
|
|
— |
|
|
|
12 |
|
Change in fair value related to derivatives prior to
settlement |
|
(161,738 |
) |
|
|
89,015 |
|
|
|
|
(75,173 |
) |
|
|
111,949 |
|
Impairment of proved property |
|
— |
|
|
|
15,302 |
|
|
|
|
— |
|
|
|
22,614 |
|
Abandonment and impairment of unproved properties |
|
12,770 |
|
|
|
54,922 |
|
|
|
|
25,429 |
|
|
|
66,695 |
|
Lawsuit settlements |
|
1,190 |
|
|
|
1,155 |
|
|
|
|
1,896 |
|
|
|
1,332 |
|
Rig release penalty |
|
1,436 |
|
|
|
— |
|
|
|
|
1,436 |
|
|
|
— |
|
Termination costs |
|
2,180 |
|
|
|
— |
|
|
|
|
2,180 |
|
|
|
(37 |
) |
Non-cash stock-based compensation |
|
11,016 |
|
|
|
10,037 |
|
|
|
|
22,181 |
|
|
|
35,575 |
|
Deferred compensation plan |
|
(11,142 |
) |
|
|
6,615 |
|
|
|
|
(7,561 |
) |
|
|
(782 |
) |
Tax impact |
|
38,817 |
|
|
|
(46,749 |
) |
|
|
|
13,995 |
|
|
|
(43,590 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding
certain items, a non-GAAP measure |
$ |
3,847 |
|
|
$ |
50,317 |
|
|
|
$ |
95,309 |
|
|
$ |
162,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per diluted
share, as reported |
$ |
0.46 |
|
|
$ |
(0.32 |
) |
|
|
$ |
0.46 |
|
|
$ |
(0.13 |
) |
Adjustment for certain special
items per diluted share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets |
|
(0.02 |
) |
|
|
— |
|
|
|
|
(0.02 |
) |
|
|
— |
|
Loss (gain) on ARO settlements |
|
— |
|
|
|
0.00 |
|
|
|
|
— |
|
|
|
0.00 |
|
Change in fair value related to derivatives prior to
settlement |
|
(0.65 |
) |
|
|
0.36 |
|
|
|
|
(0.30 |
) |
|
|
0.46 |
|
Impairment of proved property |
|
— |
|
|
|
0.06 |
|
|
|
|
— |
|
|
|
0.09 |
|
Abandonment and impairment of unproved properties |
|
0.05 |
|
|
|
0.22 |
|
|
|
|
0.10 |
|
|
|
0.27 |
|
Lawsuit settlements |
|
0.00 |
|
|
|
0.00 |
|
|
|
|
0.01 |
|
|
|
0.01 |
|
Rig release penalty |
|
0.00 |
|
|
|
— |
|
|
|
|
0.00 |
|
|
|
— |
|
Termination costs |
|
0.01 |
|
|
|
— |
|
|
|
|
0.01 |
|
|
|
— |
|
Non-cash stock-based compensation |
|
0.04 |
|
|
|
0.04 |
|
|
|
|
0.09 |
|
|
|
0.14 |
|
Deferred compensation plan |
|
(0.04 |
) |
|
|
0.03 |
|
|
|
|
(0.03 |
) |
|
|
0.00 |
|
Adjustment for rounding differences |
|
0.01 |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
Tax impact |
|
0.16 |
|
|
|
(0.19 |
) |
|
|
|
0.06 |
|
|
|
(0.18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per diluted
share, excluding certain items, a non-GAAP measure |
$ |
0.02 |
|
|
$ |
0.20 |
|
|
|
$ |
0.38 |
|
|
$ |
0.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share, a non-GAAP measure: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.02 |
|
|
$ |
0.20 |
|
|
|
$ |
0.38 |
|
|
$ |
0.66 |
|
Diluted |
$ |
0.02 |
|
|
$ |
0.20 |
|
|
|
$ |
0.38 |
|
|
$ |
0.66 |
|
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, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and oil sales, as reported |
$ |
563,579 |
|
|
$ |
661,390 |
|
|
|
$ |
1,235,233 |
|
|
$ |
1,358,019 |
|
Derivative fair value income (loss), as reported |
|
195,245 |
|
|
|
(103,290 |
) |
|
|
|
133,514 |
|
|
|
(117,299 |
) |
Less non-cash fair value (gain) loss |
|
(161,738 |
) |
|
|
89,015 |
|
|
|
|
(75,173 |
) |
|
|
111,949 |
|
Brokered natural gas and marketing and other, as reported |
|
92,605 |
|
|
|
98,084 |
|
|
|
|
230,819 |
|
|
|
158,063 |
|
Less ARO settlement and other (gains) losses |
|
(665 |
) |
|
|
(176 |
) |
|
|
|
(736 |
) |
|
|
(400 |
) |
Cash revenue applicable to production |
|
689,026 |
|
|
|
745,023 |
|
|
|
|
1,523,657 |
|
|
|
1,510,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating, as reported |
|
33,981 |
|
|
|
35,088 |
|
|
|
|
67,208 |
|
|
|
73,210 |
|
Less direct operating stock-based compensation |
|
(549 |
) |
|
|
(539 |
) |
|
|
|
(1,140 |
) |
|
|
(1,130 |
) |
Transportation, gathering and compression, as reported |
|
301,219 |
|
|
|
269,910 |
|
|
|
|
603,874 |
|
|
|
514,538 |
|
Production and ad valorem taxes, as reported |
|
9,889 |
|
|
|
10,140 |
|
|
|
|
21,199 |
|
|
|
20,066 |
|
Brokered natural gas and marketing, as reported |
|
101,117 |
|
|
|
102,747 |
|
|
|
|
233,422 |
|
|
|
158,341 |
|
Less brokered natural gas and marketing
stock-basedcompensation |
|
(553 |
) |
|
|
(313 |
) |
|
|
|
(1,001 |
) |
|
|
(598 |
) |
General and administrative, as reported |
|
50,631 |
|
|
|
47,583 |
|
|
|
|
97,269 |
|
|
|
116,000 |
|
Less G&A stock-based compensation |
|
(9,500 |
) |
|
|
(8,814 |
) |
|
|
|
(19,138 |
) |
|
|
(32,725 |
) |
Less lawsuit settlements |
|
(1,190 |
) |
|
|
(1,155 |
) |
|
|
|
(1,896 |
) |
|
|
(1,332 |
) |
Less rig release penalty |
|
(1,436 |
) |
|
|
— |
|
|
|
|
(1,436 |
) |
|
|
— |
|
Interest expense, as reported |
|
51,727 |
|
|
|
53,862 |
|
|
|
|
103,264 |
|
|
|
106,247 |
|
Less amortization of deferred financing costs |
|
(1,805 |
) |
|
|
(1,725 |
) |
|
|
|
(3,593 |
) |
|
|
(3,577 |
) |
Cash expenses |
|
533,531 |
|
|
|
506,784 |
|
|
|
|
1,098,032 |
|
|
|
949,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin, a non-GAAP
measure |
$ |
155,495 |
|
|
$ |
238,239 |
|
|
|
$ |
425,625 |
|
|
$ |
561,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mmcfe produced during period |
|
208,141 |
|
|
|
200,223 |
|
|
|
|
411,171 |
|
|
|
397,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per
mcfe |
$ |
0.75 |
|
|
$ |
1.19 |
|
|
|
$ |
1.04 |
|
|
$ |
1.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INCOME
(LOSS) BEFORE INCOME TAXES TO CASH MARGIN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands, except
per unit data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
|
|
Six Months Ended June 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes, as reported |
$ |
155,284 |
|
|
$ |
(108,354 |
) |
|
|
$ |
162,391 |
|
|
$ |
(16,440 |
) |
Adjustments to reconcile
income (loss) before income taxes to cash margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARO settlements and other (gains) losses |
|
(665 |
) |
|
|
(176 |
) |
|
|
|
(736 |
) |
|
|
(400 |
) |
Derivative fair value (income) loss |
|
(195,245 |
) |
|
|
103,290 |
|
|
|
|
(133,514 |
) |
|
|
117,299 |
|
Net cash receipts on derivative settlements |
|
33,507 |
|
|
|
(14,275 |
) |
|
|
|
58,341 |
|
|
|
(5,350 |
) |
Exploration expense |
|
7,721 |
|
|
|
7,128 |
|
|
|
|
15,444 |
|
|
|
14,096 |
|
Lawsuit settlements |
|
1,190 |
|
|
|
1,155 |
|
|
|
|
1,896 |
|
|
|
1,332 |
|
Rig release penalty |
|
1,436 |
|
|
|
— |
|
|
|
|
1,436 |
|
|
|
— |
|
Termination costs |
|
2,180 |
|
|
|
— |
|
|
|
|
2,180 |
|
|
|
(37 |
) |
Deferred compensation plan |
|
(11,142 |
) |
|
|
6,615 |
|
|
|
|
(7,561 |
) |
|
|
(782 |
) |
Stock-based compensation (direct operating, brokered natural
gas and marketing, general and administrative and termination
costs) |
|
11,016 |
|
|
|
10,037 |
|
|
|
|
22,181 |
|
|
|
35,575 |
|
Interest – amortization of deferred financing costs |
|
1,805 |
|
|
|
1,725 |
|
|
|
|
3,593 |
|
|
|
3,577 |
|
Depletion, depreciation and amortization |
|
141,505 |
|
|
|
161,026 |
|
|
|
|
280,223 |
|
|
|
323,292 |
|
Gain on sale of assets |
|
(5,867 |
) |
|
|
(156 |
) |
|
|
|
(5,678 |
) |
|
|
(179 |
) |
Impairment of proved property and other assets |
|
— |
|
|
|
15,302 |
|
|
|
|
— |
|
|
|
22,614 |
|
Abandonment and impairment of unproved properties |
|
12,770 |
|
|
|
54,922 |
|
|
|
|
25,429 |
|
|
|
66,695 |
|
Cash margin, a non-GAAP
measure |
$ |
155,495 |
|
|
$ |
238,239 |
|
|
|
$ |
425,625 |
|
|
$ |
561,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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RANGE RESOURCES CORPORATION
HEDGING POSITION AS OF June 30, 2019 – (Unaudited)
|
Daily Volume |
|
Hedge
Price |
Gas
1 |
|
|
|
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|
3Q 2019 Swaps |
1,409,946 Mmbtu |
|
$2.80 |
4Q 2019 Swaps |
1,428,261 Mmbtu |
|
$2.82 |
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2020 Swaps |
487,541 Mmbtu |
|
$2.77 |
|
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Oil |
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3Q 2019 Collars |
1,000 bbls |
|
$63 x 73 |
4Q 2019 Collars |
1,000 bbls |
|
$63 x 73 |
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3Q 2019 Swaps |
8,500 bbls |
|
$55.82 |
4Q 2019 Swaps |
9,000 bbls |
|
$55.95 |
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2020 Swaps |
4,617 bbls |
|
$60.48 |
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C5 Natural
Gasoline |
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3Q 2019 Swaps |
5,500 bbls |
|
$1.352/gallon |
4Q 2019 Swaps |
3,500 bbls |
|
$1.367/gallon |
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(1) Range also sold call swaptions of 20,000 Mmbtu/d for winter
2019/2020, 290,000 Mmbtu/d for calendar 2020, and 50,000 Mmbtu/d
for calendar 2021 at average strike prices of $3.20, $2.80, and
$2.75 per Mmbtu, respectively.
SEE WEBSITE FOR OTHER SUPPLEMENTAL
INFORMATION FOR THE PERIODS AND ADDITIONAL HEDGING
DETAILS
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