RANGE RESOURCES CORPORATION (NYSE: RRC) today
announced its second quarter 2020 financial results.
Second Quarter Highlights –
- Well costs averaged less than $600 per lateral foot, including
facility costs, the lowest in Appalachia
- Transportation, gathering, processing and compression expense
improved $0.15 per mcfe, or 10% versus prior year
- Direct operating expense improved $0.05 per mcfe, or 31% versus
prior year
- G&A expense (before certain items) improved $0.05 per mcfe,
or 28% versus prior year
- Production taxes improved $0.02 per mcfe, or 40% versus prior
year
- Interest expense improved $0.02 per mcfe, or 8% versus prior
year
- DD&A expense improved $0.19 per mcfe, or 28% versus prior
year
- Total cash unit costs improved $0.29 per mcfe, or 14% versus
prior year
- Production averaged 2,349 Mmcfe per day, approximately 71%
natural gas
- Repurchased approximately $47 million of outstanding
notes principal at an average 20% discount to par
- In July, signed purchase and sale agreement to divest North
Louisiana assets for gross proceeds of $245 million, plus an
additional $90 million contingent on future commodity prices
Commenting on the quarter, Jeff Ventura, the
Company’s CEO said, “Range continued to make steady progress in the
second quarter - significantly improving our cost structure,
operating safely, and methodically developing our core asset with
peer-leading well costs and capital efficiency. After the
sale of our North Louisiana assets, Range’s cost structure and
capital productivity will take another meaningful step forward,
driven by material improvements in our cash unit costs and a base
decline solidly under 20%. Our shallow base decline and peer
leading well costs provide Range a sustaining capital requirement
per mcfe that we believe is the lowest amongst peers, providing us
a solid foundation for generating corporate returns. In 2020,
we expect Range to reduce total debt outstanding for the third
consecutive year in a row, reflecting our commitment to disciplined
capital allocation and a strong balance sheet. Range remains
well-positioned to successfully navigate the current commodity
environment and benefit from an improved outlook for natural gas
and natural gas liquids, particularly given Range’s
industry-leading inventory of core natural gas and liquids
wells.”
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.
GAAP revenues for second quarter 2020
totaled $377 million, GAAP net cash provided from operating
activities (including changes in working capital) was $79
million, and GAAP earnings was a loss of $147 million
($0.61 per diluted share).
Non-GAAP revenues for second quarter 2020
totaled $502 million, and cash flow from operations before
changes in working capital, a non-GAAP measure, was $81
million. Adjusted earnings comparable to analysts’ estimates,
a non-GAAP measure, was a loss of $25 million ($0.10 per
diluted share) in second quarter 2020.
North Louisiana Asset Sale
Subsequent to June 30, Range signed a purchase
and sale agreement to divest the Company’s North Louisiana assets
for gross proceeds of $245 million, with the potential for $90
million in additional proceeds contingent on future commodity
prices. At the time of the sale, the assets were producing
approximately 160 Mmcfe per day, and Range did not have any
drilling and completion activity planned for the assets this year.
Per the agreement, Range will retain certain commitments
through their remaining term. Range intends to use $28.5
million of the sale proceeds to reduce a portion of the retained
commitments. The transaction is expected to close in August
with an effective date of February 1, 2020.
Capital Expenditures
Second quarter 2020 drilling and completion
expenditures were $99 million. In addition, during the
quarter, a combined $5 million was spent on acreage and gathering
systems. Total year-to-date expenditures were $235 million at
the end of the second quarter. Well costs, including all
facilities, averaged less than $600 per foot in the second quarter,
the lowest normalized well costs in Appalachia. Range remains
on track to spend at or below its total capital budget of $430
million for 2020.
Financial Position and Buyback
Activity
At the end of the second quarter, Range had $639 million drawn on
its revolver and over $1.4 billion of additional borrowing capacity
under the commitment amount. Range expects its $3.0 billion
borrowing base to be unchanged following the sale of its North
Louisiana assets. Following the planned closing on the
Company’s North Louisiana asset sale in August, Range’s liquidity
is expected to exceed $1.6 billion.
Range repurchased and retired
approximately $47 million in principal amount of its
senior and subordinated notes during the second quarter at a
weighted average discount to par of 20%. Range also
repurchased 200,000 shares of the Company’s common stock during the
second quarter at an average price of $2.22 per share. In
total, Range has repurchased $360 million in debt principal at a
discount and ten million shares since second half 2019.
Unit Costs and Pricing
The following table details Range’s unit costs
per mcfe(a):
Expenses |
|
2Q 2020 ($/Mcfe) |
|
|
2Q 2019 ($/Mcfe) |
|
|
Increase (Decrease) |
|
|
|
|
|
|
|
|
|
Direct operating(a) |
$ |
0.11 |
|
$ |
0.16 |
|
|
(31%) |
Transportation, gathering,
processing and compression |
|
1.30 |
|
|
1.45 |
|
|
(10%) |
Production and ad valorem
taxes |
|
0.03 |
|
|
0.05 |
|
|
(40%) |
General and administrative
(G&A)(a) |
|
0.13 |
|
|
0.18 |
|
|
(28%) |
Interest expense(a) |
|
0.22 |
|
|
0.24 |
|
|
(8%) |
Total cash unit costs(b) |
|
1.79 |
|
|
2.08 |
|
|
(14%) |
Depletion, depreciation and
amortization (DD&A) |
|
0.49 |
|
|
0.68 |
|
|
(28%) |
Total unit costs plus DD&A(b) |
$ |
2.28 |
|
$ |
2.76 |
|
|
(17%) |
(a) Excludes stock-based
compensation, legal settlements and amortization of deferred
financing costs.(b) May not add due to rounding.
The following table details Range’s average
production and realized pricing for second quarter 2020:
|
|
2Q20 Production & Realized Pricing |
|
|
Natural Gas (Mcf) |
|
NGLs (Bbl) |
|
Oil (Bbl) |
|
Natural Gas Equivalent (Mcfe) |
Net Production per day |
|
1,660,743 |
|
106,772 |
|
7,913 |
|
2,348,856 |
|
|
|
|
|
|
|
|
|
Average NYMEX price |
|
$1.72 |
|
|
|
$27.09 |
|
|
Differential, including basis
hedging |
|
(0.31) |
|
|
|
(12.28) |
|
|
Realized prices before NYMEX
hedges |
|
1.41 |
|
$12.80 |
|
14.81 |
|
|
Settled NYMEX hedges |
|
0.61 |
|
0.71 |
|
30.21 |
|
|
Average realized prices after
hedges (a) |
|
$ 2.02 |
|
$ 13.51 |
|
$ 45.03 |
|
$ 2.19 |
(a) May not add due to
rounding.
Second quarter 2020 natural gas, NGLs and oil
price realizations (including the impact of derivative settlements
which correspond to analysts’ estimates) averaged $2.19 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 $1.41 per mcf, or a ($0.31) differential to NYMEX.
In the second quarter, Range sold additional natural gas
volume in Appalachia following a pipeline outage in May that
affected a portion of Range’s transportation to the Gulf Coast.
This minor impact to differentials was offset by lower gas
transportation expense in the quarter.
- Pre-hedge NGL realizations were $12.80 per barrel, or a $0.37
per barrel premium to the Mont Belvieu weighted barrel and
approximately 47% of WTI (West Texas Intermediate). Lower NGL
prices in the second quarter were partially offset by lower
processing costs.
- Crude oil and condensate price realizations, before realized
hedges, averaged $14.81 per barrel, or $12.28 below WTI.
Condensate pricing in the second quarter was impacted by weakness
in regional demand. However, regional condensate demand has
increased following the second quarter, and Range expects
differentials and fundamentals to improve in second half 2020. As a
result, Range deferred some liquids-rich activity into second half
2020 and its Appalachia condensate production is expected to
increase versus the second quarter.
Operational Discussion
The table below summarizes estimated activity
for 2020 regarding the number of wells to sales for each
area.
|
Wells TIL 2Q 2020 |
|
Calendar 2020 Planned TIL |
|
Remaining 2020 |
SW PA Super-Rich |
0 |
|
3 |
|
3 |
SW PA Wet |
6 |
|
31 |
|
13 |
SW PA Dry |
15 |
|
33 |
|
10 |
Total Wells |
21 |
|
67 |
|
26 |
Production by Area
Total production for second quarter 2020
averaged approximately 2,349 net Mmcfe per day. The southwest
Appalachia area averaged 2,083 net Mmcfe per day during the
quarter, a 6% increase over second quarter 2019. The
northeast Marcellus properties averaged 86 net Mmcf per day and
North Louisiana production during second quarter 2020 averaged
approximately 179 net Mmcfe per day. Second quarter 2020 North
Louisiana production includes the benefit of one-time land and
legal adjustments as part of the divestiture process.
Marketing and
Transportation
During the quarter, Range sold additional
natural gas volume in Appalachia following a third-party pipeline
outage in early May affecting a portion of Range’s transportation
that takes natural gas to the Gulf Coast. This had a minor
impact to natural gas differentials during the quarter and was
mostly offset by lower gas transportation expense. Range
continues to benefit from its diverse set of natural gas
transportation outlets as unexpected events in any one market do
not materially impact the overall portfolio.
Domestic U.S. natural gas production declined
significantly during the quarter, led by associated gas shut-ins
and legacy basin declines in response to the price of both oil and
natural gas. Range expects recently announced activity
reductions for the industry to weigh on second half 2020 production
levels, more than offsetting the return of shut-in production,
while LNG export demand recovers from current levels.
Evidenced by one of the lightest 2021 hedge positions among natural
gas producers, Range anticipates that a sustained move higher in
the forward curve for natural gas is needed to incentivize activity
from dry gas producing basins to avoid extremely low storage levels
next year.
As previously disclosed, entering second
quarter, demand for gasoline and jet fuel were directly impacted by
COVID-19 related reductions in vehicle and air travel. The
abrupt change in demand put temporary pressure on condensate
pricing during the quarter. Production and sales were
unaffected as Range’s marketing team found domestic or
international outlets for all products. The Northeast
condensate market began to rebound in the months of June and July,
with substantial improvements in pricing, pointing to a better
second half of the year.
Range experienced healthy NGL demand during the
second quarter as a result of its strong and diverse customer base
as well as a flexible transportation portfolio that allows access
to multiple domestic and international markets. The Company
increased its access to waterborne exports via Mariner East and
Marcus Hook during the second quarter, where LPG export premiums at
Marcus Hook have remained stable at a few cents per gallon above
Mont Belvieu index. Range expects NGL and condensate
fundamentals to continue strengthening during the second half of
2020, as a lack of U.S. drilling and completions activity is
expected to result in declining supply while demand continues to
recover. Range’s liquids-weighted activity during the balance
of 2020 is set to take advantage of this improving macro
environment for both condensate and NGL pricing.
Guidance – 2020
Production per day Guidance
Production for full-year 2020 is expected to
average approximately 2.25 Bcfe per day, reflecting adjustments
associated with the sale of North Louisiana assets. Full-year
2020 Appalachia production is expected to average approximately
2.15 Bcfe per day.
Full Year 2020 Expense Guidance
|
Prior Guidance |
Updated Guidance |
Direct operating expense: |
$0.14 - $0.16 per mcfe |
$0.11 - $0.13 per mcfe |
Transportation, gathering,
processing and compression expense: |
$1.37 - $1.40 per mcfe |
$1.32 - $1.36 per mcfe |
Production tax expense: |
$0.04 - $0.05 per mcfe |
$0.03 - $0.04 per mcfe |
Exploration expense: |
$30 - $38 million |
$28 - $34 million |
G&A expense: |
$0.14 - $0.16 per mcfe |
$0.14 - $0.15 per mcfe |
Interest expense: |
$0.22 - $0.24 per mcfe |
$0.22 - $0.24 per mcfe |
DD&A expense: |
$0.48 - $0.52 per mcfe |
$0.48 - $0.52 per mcfe |
Net brokered gas marketing
expense: |
$10 - $16 million |
$10 - $16 million |
Full Year 2020 Price Guidance
Based on current market indications and the anticipated sale of
Range’s North Louisiana assets in August, Range expects to average
the following price differentials for its production in
2020.
|
Prior Guidance |
Updated Guidance |
Natural Gas:(1) |
NYMEX minus $0.20 to $0.26 |
NYMEX minus $0.22 to $0.28 |
Natural Gas Liquids:(2) |
Mont Belvieu plus $0.50 to $1.50 per bbl |
Mont Belvieu plus $0.50 to $1.50 per bbl |
Oil/Condensate: |
WTI minus $8.00 to $9.00 per bbl |
WTI minus $8.00 to $10.00 per bbl |
(1) Including basis hedging. (2) 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 to increase the predictability of cash flow and to help
maintain a more flexible financial position. Range has over
70% of its remaining 2020 natural gas production hedged at a
weighted average floor price of $2.57 per Mmbtu. Similarly,
Range has hedged over 80% of its remaining 2020 projected crude oil
production at an average floor price of $58.12. 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
natural gas basis to limit volatility between NYMEX and regional
prices. The fair value of basis hedges was a loss of $4.5
million as of June 30, 2020. The Company also has propane
basis swap contracts and freight swaps which lock in the
differential between Mont Belvieu and international propane
indices. The combined fair value of these contracts was a
loss of $4.0 million at June 30, 2020.
Conference Call InformationA
conference call to review the financial results is scheduled on
Tuesday, August 4 at 9:00 a.m. ET. A webcast of the call may
be accessed at www.rangeresources.com. The webcast will be archived
for replay on the Company's website until September 4, 2020.
To participate in the call, dial 877-928-8777
and provide conference code 1543996 about 15 minutes prior to the
scheduled start time.
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 natural gas and NGL
producer with operations focused in stacked-pay projects in
the Appalachian Basin. 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 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.
2020-13
SOURCE: Range Resources Corporation
|
Investor Contacts: |
|
|
|
Laith Sando,
Vice President – Investor Relations |
|
817-869-4267 |
|
lsando@rangeresources.com |
|
|
|
John Durham,
Senior Financial Analyst |
|
817-869-1538 |
|
jdurham@rangeresources.com |
|
|
|
Range Media Contacts: |
|
|
|
Mark Windle,
Manager of Corporate Communications |
|
724-873-3223 |
|
mwindle@rangeresources.com |
RANGE RESOURCES CORPORATION
STATEMENTS OF OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on GAAP reported
earnings with additional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
details of items included in
each line in Form 10-Q |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2020 |
|
|
2019 |
|
|
% |
|
2020 |
|
|
2019 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGLs and oil sales (a) |
$ |
349,258 |
|
|
$ |
563,579 |
|
|
|
|
$ |
781,354 |
|
|
$ |
1,235,233 |
|
|
|
|
Derivative fair value (loss)/income |
|
(6,303 |
) |
|
|
195,245 |
|
|
|
|
|
226,872 |
|
|
|
133,514 |
|
|
|
|
Brokered natural gas, marketing and other (b) |
|
33,309 |
|
|
|
91,940 |
|
|
|
|
|
61,698 |
|
|
|
230,083 |
|
|
|
|
ARO settlement loss (b) |
|
(12 |
) |
|
|
— |
|
|
|
|
|
(12 |
) |
|
|
— |
|
|
|
|
Other (b) |
|
294 |
|
|
|
665 |
|
|
|
|
|
554 |
|
|
|
736 |
|
|
|
|
Total revenues and other income |
|
376,546 |
|
|
|
851,429 |
|
|
-56% |
|
|
1,070,466 |
|
|
|
1,599,566 |
|
|
|
-33% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating |
|
23,960 |
|
|
|
33,432 |
|
|
|
|
|
55,545 |
|
|
|
66,068 |
|
|
|
|
Direct operating – non-cash stock-based compensation (c) |
|
434 |
|
|
|
549 |
|
|
|
|
|
884 |
|
|
|
1,140 |
|
|
|
|
Transportation, gathering, processing and compression |
|
278,875 |
|
|
|
301,219 |
|
|
|
|
|
563,640 |
|
|
|
603,874 |
|
|
|
|
Production and ad valorem taxes |
|
5,557 |
|
|
|
9,889 |
|
|
|
|
|
14,576 |
|
|
|
21,199 |
|
|
|
|
Brokered natural gas and marketing |
|
37,993 |
|
|
|
100,564 |
|
|
|
|
|
70,204 |
|
|
|
232,421 |
|
|
|
|
Brokered natural gas and marketing – non-cash stock-based
compensation (c) |
|
168 |
|
|
|
553 |
|
|
|
|
|
581 |
|
|
|
1,001 |
|
|
|
|
Exploration |
|
7,655 |
|
|
|
7,721 |
|
|
|
|
|
14,402 |
|
|
|
15,444 |
|
|
|
|
Exploration – non-cash stock-based compensation (c) |
|
372 |
|
|
|
388 |
|
|
|
|
|
702 |
|
|
|
876 |
|
|
|
|
Abandonment and impairment of unproved properties |
|
5,524 |
|
|
|
12,770 |
|
|
|
|
|
10,937 |
|
|
|
25,429 |
|
|
|
|
General and administrative |
|
28,333 |
|
|
|
38,505 |
|
|
|
|
|
61,343 |
|
|
|
74,799 |
|
|
|
|
General and administrative – non-cash stock-based compensation
(c) |
|
9,179 |
|
|
|
9,500 |
|
|
|
|
|
17,208 |
|
|
|
19,138 |
|
|
|
|
General and administrative – lawsuit settlements |
|
776 |
|
|
|
1,190 |
|
|
|
|
|
1,591 |
|
|
|
1,896 |
|
|
|
|
General and administrative – rig release penalty |
|
— |
|
|
|
1,436 |
|
|
|
|
|
— |
|
|
|
1,436 |
|
|
|
|
General and administrative – bad debt expense |
|
— |
|
|
|
— |
|
|
|
|
|
400 |
|
|
|
— |
|
|
|
|
Exit and termination costs |
|
10,297 |
|
|
|
2,180 |
|
|
|
|
|
11,892 |
|
|
|
2,180 |
|
|
|
|
Exit and termination costs – non-cash stock-based compensation
(c) |
|
— |
|
|
|
26 |
|
|
|
|
|
— |
|
|
|
26 |
|
|
|
|
Deferred compensation plan (d) |
|
12,587 |
|
|
|
(11,142 |
) |
|
|
|
|
4,050 |
|
|
|
(7,561 |
) |
|
|
|
Interest expense |
|
46,489 |
|
|
|
49,922 |
|
|
|
|
|
91,946 |
|
|
|
99,671 |
|
|
|
|
Interest expense – amortization of deferred financing costs
(e) |
|
2,135 |
|
|
|
1,805 |
|
|
|
|
|
4,196 |
|
|
|
3,593 |
|
|
|
|
Gain on early extinguishment of debt |
|
(8,991 |
) |
|
|
— |
|
|
|
|
|
(21,914 |
) |
|
|
— |
|
|
|
|
Depletion, depreciation and amortization |
|
104,626 |
|
|
|
141,505 |
|
|
|
|
|
207,612 |
|
|
|
280,223 |
|
|
|
|
Impairment of proved properties |
|
— |
|
|
|
— |
|
|
|
|
|
77,000 |
|
|
|
— |
|
|
|
|
Loss (gain) on sale of assets |
|
426 |
|
|
|
(5,867 |
) |
|
|
|
|
(121,673 |
) |
|
|
(5,678 |
) |
|
|
|
Total costs and expenses |
|
566,395 |
|
|
|
696,145 |
|
|
-19% |
|
|
1,065,122 |
|
|
|
1,437,175 |
|
|
|
-26% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income
taxes |
|
(189,849 |
) |
|
|
155,284 |
|
|
-222% |
|
|
5,344 |
|
|
|
162,391 |
|
|
|
-97% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
(3 |
|
|
|
— |
|
|
|
|
|
(366 |
) |
|
|
— |
|
|
|
|
Deferred |
|
(43,277 |
) |
|
|
40,099 |
|
|
|
|
|
7,304 |
|
|
|
45,787 |
|
|
|
|
|
|
(43,280 |
) |
|
|
40,099 |
|
|
|
|
|
6,938 |
|
|
|
45,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(146,569 |
) |
|
$ |
115,185 |
|
|
-227% |
|
$ |
(1,594 |
) |
|
$ |
116,604 |
|
|
|
-101% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Per
Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.61 |
) |
|
$ |
0.46 |
|
|
|
|
$ |
(0.01 |
) |
|
$ |
0.46 |
|
|
|
|
Diluted |
$ |
(0.61 |
) |
|
$ |
0.46 |
|
|
|
|
$ |
(0.01 |
) |
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding, as reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
239,472 |
|
|
|
247,770 |
|
|
-3% |
|
|
242,717 |
|
|
|
247,773 |
|
|
|
-2% |
Diluted |
|
239,472 |
|
|
|
248,436 |
|
|
-4% |
|
|
242,717 |
|
|
|
249,042 |
|
|
|
-3% |
(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, |
|
2020 |
|
2019 |
|
|
(Unaudited) |
|
|
|
(Audited) |
|
Assets |
|
|
|
|
|
|
|
Current assets |
$ |
188,587 |
|
|
$ |
290,954 |
|
Derivative assets |
|
146,236 |
|
|
|
137,554 |
|
Natural gas and oil properties, successful efforts method |
|
5,993,626 |
|
|
|
6,041,035 |
|
Transportation and field assets |
|
3,723 |
|
|
|
5,375 |
|
Operating lease right-of-use assets |
|
52,367 |
|
|
|
62,053 |
|
Other |
|
67,672 |
|
|
|
75,432 |
|
|
$ |
6,452,211 |
|
|
$ |
6,612,403 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’
Equity |
|
|
|
|
|
|
|
Current liabilities |
$ |
522,554 |
|
|
$ |
551,032 |
|
Asset retirement obligations |
|
2,393 |
|
|
|
2,393 |
|
Derivative liabilities |
|
5,306 |
|
|
|
13,119 |
|
|
|
|
|
|
|
|
|
Bank debt |
|
628,221 |
|
|
|
464,319 |
|
Senior notes |
|
2,510,256 |
|
|
|
2,659,844 |
|
Senior subordinated notes |
|
26,656 |
|
|
|
48,774 |
|
Total debt |
|
3,165,133 |
|
|
|
3,172,937 |
|
|
|
|
|
|
|
|
|
Deferred tax liability |
|
167,548 |
|
|
|
160,196 |
|
Derivative liabilities |
|
10,001 |
|
|
|
949 |
|
Deferred compensation liability |
|
58,676 |
|
|
|
64,070 |
|
Operating lease liabilities |
|
35,104 |
|
|
|
41,068 |
|
Asset retirement obligations and other liabilities |
|
149,680 |
|
|
|
259,151 |
|
|
|
|
|
|
|
|
|
Common stock and retained earnings |
|
2,366,654 |
|
|
|
2,355,512 |
|
Other comprehensive loss |
|
(644 |
) |
|
|
(788 |
) |
Common stock held in treasury stock |
|
(30,194 |
) |
|
|
(7,236 |
) |
Total stockholders’ equity |
|
2,335,816 |
|
|
|
2,347,488 |
|
|
$ |
6,452,211 |
|
|
$ |
6,612,403 |
|
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, |
|
|
|
|
2020 |
|
|
2019 |
|
|
% |
|
|
|
2020 |
|
|
|
2019 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and other income,
as reported |
$ |
376,546 |
|
$ |
851,429 |
|
|
-56 |
% |
|
$ |
1,070,466 |
|
|
$ |
1,599,566 |
|
|
-33 |
% |
Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total change in fair value related to derivatives prior to
settlement (gain) loss |
|
125,803 |
|
|
(161,738 |
) |
|
|
|
|
|
(7,443 |
) |
|
|
(75,173 |
) |
|
|
|
ARO settlement loss |
|
12 |
|
|
— |
|
|
|
|
|
|
12 |
|
|
|
— |
|
|
|
|
Total revenues, as adjusted, non-GAAP |
$ |
502,361 |
|
$ |
689,691 |
|
|
-27 |
% |
|
$ |
1,063,035 |
|
|
$ |
1,524,393 |
|
|
-30 |
% |
RANGE RESOURCES CORPORATION
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(146,569 |
) |
|
$ |
115,185 |
|
|
$ |
(1,594 |
) |
|
$ |
116,604 |
|
Adjustments to reconcile net
cash provided from continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax (benefit) expense |
|
(43,277 |
) |
|
|
40,099 |
|
|
|
7,304 |
|
|
|
45,787 |
|
Depletion, depreciation, amortization and impairment |
|
104,626 |
|
|
|
141,505 |
|
|
|
284,612 |
|
|
|
280,223 |
|
Abandonment and impairment of unproved properties |
|
5,524 |
|
|
|
12,770 |
|
|
|
10,937 |
|
|
|
25,429 |
|
Derivative fair value loss (income) |
|
6,303 |
|
|
|
(195,245 |
) |
|
|
(226,872 |
) |
|
|
(133,514 |
) |
Cash settlements on derivative financial instruments |
|
119,500 |
|
|
|
33,507 |
|
|
|
219,429 |
|
|
|
58,341 |
|
Allowance for bad debts |
|
— |
|
|
|
— |
|
|
|
400 |
|
|
|
— |
|
Amortization of deferred issuance costs and other |
|
1,741 |
|
|
|
1,436 |
|
|
|
3,398 |
|
|
|
3,243 |
|
Deferred and stock-based compensation |
|
22,637 |
|
|
|
(385 |
) |
|
|
23,113 |
|
|
|
13,727 |
|
Loss (gain) on sale of assets and other |
|
426 |
|
|
|
(5,867 |
) |
|
|
(121,673 |
) |
|
|
(5,678 |
) |
Gain on early extinguishment of debt |
|
(8,991 |
) |
|
|
— |
|
|
|
(21,914 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in working capital: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
19,045 |
|
|
|
67,422 |
|
|
|
103,390 |
|
|
|
201,428 |
|
Inventory and other |
|
376 |
|
|
|
(272 |
) |
|
|
(4,056 |
) |
|
|
(5,035 |
) |
Accounts payable |
|
(46,013 |
) |
|
|
1,299 |
|
|
|
(27,353 |
) |
|
|
(29,132 |
) |
Accrued liabilities and other |
|
43,434 |
|
|
|
(26,632 |
) |
|
|
(45,853 |
) |
|
|
(125,907 |
) |
Net changes in working capital |
|
16,842 |
|
|
|
41,817 |
|
|
|
26,128 |
|
|
|
41,354 |
|
Net cash provided from operating activities |
$ |
78,762 |
|
|
$ |
184,822 |
|
|
$ |
203,268 |
|
|
$ |
445,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net cash provided from operating
activities, as reported |
$ |
78,762 |
|
|
$ |
184,822 |
|
|
$ |
203,268 |
|
|
$ |
445,516 |
|
Net changes in working capital |
|
(16,842 |
) |
|
|
(41,817 |
) |
|
|
(26,128 |
) |
|
|
(41,354 |
) |
Exploration expense |
|
7,655 |
|
|
|
7,721 |
|
|
|
14,402 |
|
|
|
15,444 |
|
Lawsuit settlements |
|
776 |
|
|
|
1,190 |
|
|
|
1,591 |
|
|
|
1,896 |
|
Exit and termination costs |
|
10,297 |
|
|
|
2,180 |
|
|
|
11,892 |
|
|
|
2,180 |
|
Rig release penalty |
|
— |
|
|
|
1,436 |
|
|
|
— |
|
|
|
1,436 |
|
Non-cash compensation adjustment |
|
509 |
|
|
|
628 |
|
|
|
1,122 |
|
|
|
1,243 |
|
Cash flow from operations before changes in working capital –
non-GAAP measure |
$ |
81,157 |
|
|
$ |
156,160 |
|
|
$ |
206,147 |
|
|
$ |
426,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED WEIGHTED AVERAGE
SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
245,879 |
|
|
|
251,242 |
|
|
|
247,516 |
|
|
|
250,784 |
|
Stock held by deferred
compensation plan |
|
(6,407 |
) |
|
|
(3,472 |
) |
|
|
(4,799 |
) |
|
|
(3,011 |
) |
Adjusted basic |
|
239,472 |
|
|
|
247,770 |
|
|
|
242,717 |
|
|
|
247,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
245,879 |
|
|
|
251,242 |
|
|
|
247,516 |
|
|
|
250,784 |
|
Dilutive stock options under
treasury method |
|
(6,407 |
) |
|
|
(2,806 |
) |
|
|
(4,799 |
) |
|
|
(1,742 |
) |
Adjusted dilutive |
|
239,472 |
|
|
|
248,436 |
|
|
|
242,717 |
|
|
|
249,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
% |
|
|
2020 |
|
|
|
2019 |
|
|
% |
Natural gas, NGL and oil sales components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
214,207 |
|
|
$ |
343,623 |
|
|
|
|
|
$ |
467,456 |
|
|
$ |
778,343 |
|
|
|
|
NGL sales |
|
124,383 |
|
|
|
167,027 |
|
|
|
|
|
|
267,622 |
|
|
|
364,840 |
|
|
|
|
Oil sales |
|
10,668 |
|
|
|
52,929 |
|
|
|
|
|
|
46,276 |
|
|
|
92,050 |
|
|
|
|
Total oil and gas sales, as reported |
$ |
349,258 |
|
|
$ |
563,579 |
|
|
-38 |
% |
|
$ |
781,354 |
|
|
$ |
1,235,233 |
|
|
-37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative fair value (loss)
income, as reported: |
$ |
(6,303 |
) |
|
$ |
195,245 |
|
|
|
|
|
$ |
226,872 |
|
|
$ |
133,514 |
|
|
|
|
Cash settlements on derivative
financial instruments – (gain) loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
|
(90,837 |
) |
|
|
(20,396 |
) |
|
|
|
|
|
(171,009 |
) |
|
|
(19,524 |
) |
|
|
|
NGLs |
|
(6,905 |
) |
|
|
(15,918 |
) |
|
|
|
|
|
(16,948 |
) |
|
|
(40,782 |
) |
|
|
|
Crude Oil |
|
(21,758 |
) |
|
|
2,807 |
|
|
|
|
|
|
(31,472 |
) |
|
|
1,965 |
|
|
|
|
Total change in fair value
related to derivatives prior to settlement, a non-GAAP measure |
$ |
(125,803 |
) |
|
$ |
161,738 |
|
|
|
|
|
$ |
7,443 |
|
|
$ |
75,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering,
processing and compression components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
$ |
167,367 |
|
|
$ |
185,353 |
|
|
|
|
|
$ |
337,208 |
|
|
$ |
374,435 |
|
|
|
|
NGLs |
|
110,718 |
|
|
|
115,866 |
|
|
|
|
|
|
225,642 |
|
|
|
229,439 |
|
|
|
|
Oil |
|
790 |
|
|
|
— |
|
|
|
|
|
|
790 |
|
|
|
— |
|
|
|
|
Total transportation, gathering, processing and compression, as
reported |
$ |
278,875 |
|
|
$ |
301,219 |
|
|
|
|
|
$ |
563,640 |
|
|
$ |
603,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and oil sales,
including cash-settled derivatives: (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
305,044 |
|
|
$ |
364,019 |
|
|
|
|
|
$ |
638,465 |
|
|
$ |
797,867 |
|
|
|
|
NGL sales |
|
131,288 |
|
|
|
182,945 |
|
|
|
|
|
|
284,570 |
|
|
|
405,622 |
|
|
|
|
Oil sales |
|
32,426 |
|
|
|
50,122 |
|
|
|
|
|
|
77,748 |
|
|
|
90,085 |
|
|
|
|
Total |
$ |
468,758 |
|
|
$ |
597,086 |
|
|
-21 |
% |
|
|
1,000,783 |
|
|
|
1,293,574 |
|
|
-23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas during the periods (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
151,127,582 |
|
|
|
143,163,003 |
|
|
6 |
% |
|
|
296,888,174 |
|
|
|
283,684,666 |
|
|
5 |
% |
NGL (bbl) |
|
9,716,261 |
|
|
|
9,847,268 |
|
|
-1 |
% |
|
|
19,349,296 |
|
|
|
19,459,815 |
|
|
-1 |
% |
Oil (bbl) |
|
720,125 |
|
|
|
982,324 |
|
|
-27 |
% |
|
|
1,588,422 |
|
|
|
1,787,874 |
|
|
-11 |
% |
Gas equivalent (mcfe) (b) |
|
213,745,898 |
|
|
|
208,140,555 |
|
|
3 |
% |
|
|
422,514,482 |
|
|
|
411,170,800 |
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas –
average per day (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
1,660,743 |
|
|
|
1,573,220 |
|
|
6 |
% |
|
|
1,631,254 |
|
|
|
1,567,319 |
|
|
4 |
% |
NGL (bbl) |
|
106,772 |
|
|
|
108,212 |
|
|
-1 |
% |
|
|
106,315 |
|
|
|
107,513 |
|
|
-1 |
% |
Oil (bbl) |
|
7,913 |
|
|
|
10,795 |
|
|
-27 |
% |
|
|
8,728 |
|
|
|
9,878 |
|
|
-12 |
% |
Gas equivalent (mcfe) (b) |
|
2,348,856 |
|
|
|
2,287,259 |
|
|
3 |
% |
|
|
2,321,508 |
|
|
|
2,271,662 |
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, excluding
derivative settlements and before third party transportation
costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
1.42 |
|
|
$ |
2.40 |
|
|
-41 |
% |
|
$ |
1.57 |
|
|
$ |
2.74 |
|
|
-43 |
% |
NGL (bbl) |
$ |
12.80 |
|
|
$ |
16.96 |
|
|
-25 |
% |
|
$ |
13.83 |
|
|
$ |
18.75 |
|
|
-26 |
% |
Oil (bbl) |
$ |
14.81 |
|
|
$ |
53.88 |
|
|
-73 |
% |
|
$ |
29.13 |
|
|
$ |
51.49 |
|
|
-43 |
% |
Gas equivalent (mcfe) (b) |
$ |
1.63 |
|
|
$ |
2.71 |
|
|
-40 |
% |
|
$ |
1.85 |
|
|
$ |
3.00 |
|
|
-38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including
derivative settlements before third party transportation costs:
(c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
2.02 |
|
|
$ |
2.54 |
|
|
-21 |
% |
|
$ |
2.15 |
|
|
$ |
2.81 |
|
|
-24 |
% |
NGL (bbl) |
$ |
13.51 |
|
|
$ |
18.58 |
|
|
-27 |
% |
|
$ |
14.71 |
|
|
$ |
20.84 |
|
|
-29 |
% |
Oil (bbl) |
$ |
45.03 |
|
|
$ |
51.02 |
|
|
-12 |
% |
|
$ |
48.95 |
|
|
$ |
50.39 |
|
|
-3 |
% |
Gas equivalent (mcfe) (b) |
$ |
2.19 |
|
|
$ |
2.87 |
|
|
-24 |
% |
|
$ |
2.37 |
|
|
$ |
3.15 |
|
|
-25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including
derivative settlements and after third party transportation
costs: (d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
0.91 |
|
|
$ |
1.25 |
|
|
-27 |
% |
|
$ |
1.01 |
|
|
$ |
1.49 |
|
|
-32 |
% |
NGL (bbl) |
$ |
2.12 |
|
|
$ |
6.81 |
|
|
-69 |
% |
|
$ |
3.05 |
|
|
$ |
9.05 |
|
|
-66 |
% |
Oil (bbl) |
$ |
43.93 |
|
|
$ |
51.02 |
|
|
-14 |
% |
|
$ |
48.45 |
|
|
$ |
50.39 |
|
|
-4 |
% |
Gas equivalent (mcfe) (b) |
$ |
0.89 |
|
|
$ |
1.42 |
|
|
-38 |
% |
|
$ |
1.03 |
|
|
$ |
1.68 |
|
|
-38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering and
compression expense per mcfe |
$ |
1.30 |
|
|
$ |
1.45 |
|
|
-10 |
% |
|
$ |
1.33 |
|
|
$ |
1.47 |
|
|
-9 |
% |
(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
(LOSS) INCOME BEFORE INCOME TAXES AS REPORTED TO INCOME BEFORE
INCOME TAXES EXCLUDING CERTAIN ITEMS, a non-GAAP
measure |
|
|
|
|
|
(Unaudited, in thousands,
except per share data) |
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2020 |
|
|
2019 |
|
|
% |
|
2020 |
|
|
2019 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations before income taxes, as reported |
$ |
(189,849 |
) |
|
$ |
155,284 |
|
|
(222 |
) |
% |
|
$ |
5,344 |
|
|
$ |
162,391 |
|
|
(97 |
) |
% |
Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on sale of assets |
|
426 |
|
|
|
(5,867 |
) |
|
|
|
|
|
(121,673 |
) |
|
|
(5,678 |
) |
|
|
|
(Gain) loss on ARO settlements |
|
12 |
|
|
|
— |
|
|
|
|
|
|
12 |
|
|
|
— |
|
|
|
|
Change in fair value related to derivatives prior to
settlement |
|
125,803 |
|
|
|
(161,738 |
) |
|
|
|
|
|
(7,443 |
) |
|
|
(75,173 |
) |
|
|
|
Abandonment and impairment of unproved properties |
|
5,524 |
|
|
|
12,770 |
|
|
|
|
|
|
10,937 |
|
|
|
25,429 |
|
|
|
|
Rig release penalty |
|
— |
|
|
|
1,436 |
|
|
|
|
|
|
— |
|
|
|
1,436 |
|
|
|
|
Gain on early extinguishment of debt |
|
(8,991 |
) |
|
|
— |
|
|
|
|
|
|
(21,914 |
) |
|
|
— |
|
|
|
|
Impairment of proved property |
|
— |
|
|
|
— |
|
|
|
|
|
|
77,000 |
|
|
|
— |
|
|
|
|
Lawsuit settlements |
|
776 |
|
|
|
1,190 |
|
|
|
|
|
|
1,591 |
|
|
|
1,896 |
|
|
|
|
Exit and termination costs |
|
10,297 |
|
|
|
2,180 |
|
|
|
|
|
|
11,892 |
|
|
|
2,180 |
|
|
|
|
Exit and termination costs – non-cash stock-based compensation |
|
— |
|
|
|
26 |
|
|
|
|
|
|
— |
|
|
|
26 |
|
|
|
|
Brokered natural gas and marketing – non-cash stock-based
compensation |
|
168 |
|
|
|
553 |
|
|
|
|
|
|
581 |
|
|
|
1,001 |
|
|
|
|
Direct operating – non-cash stock-based compensation |
|
434 |
|
|
|
549 |
|
|
|
|
|
|
884 |
|
|
|
1,140 |
|
|
|
|
Exploration expenses – non-cash stock-based compensation |
|
372 |
|
|
|
388 |
|
|
|
|
|
|
702 |
|
|
|
876 |
|
|
|
|
General & administrative – non-cash stock-based
compensation |
|
9,179 |
|
|
|
9,500 |
|
|
|
|
|
|
17,208 |
|
|
|
19,138 |
|
|
|
|
Deferred compensation plan – non-cash adjustment |
|
12,587 |
|
|
|
(11,142 |
) |
|
|
|
|
|
4,050 |
|
|
|
(7,561 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income
taxes, as adjusted |
|
(33,262 |
) |
|
|
5,129 |
|
|
-749 |
|
% |
|
|
(20,829 |
) |
|
|
127,101 |
|
|
-116 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit), as
adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
(3 |
) |
|
|
— |
|
|
|
|
|
|
(366 |
) |
|
|
— |
|
|
|
|
Deferred (a) |
|
(8,315 |
) |
|
|
1,282 |
|
|
|
|
|
|
(5,207 |
) |
|
|
31,792 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income excluding certain items, a non-GAAP
measure |
$ |
(24,944 |
) |
|
$ |
3,847 |
|
|
-748 |
|
% |
|
$ |
(15,256 |
) |
|
$ |
95,309 |
|
|
-116 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP (loss) income per common
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.10 |
) |
|
$ |
0.02 |
|
|
-600 |
|
% |
|
$ |
(0.06 |
) |
|
$ |
0.38 |
|
|
-116 |
|
% |
Diluted |
$ |
(0.10 |
) |
|
$ |
0.02 |
|
|
-600 |
|
% |
|
$ |
(0.06 |
) |
|
$ |
0.38 |
|
|
-116 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted shares
outstanding, if dilutive |
|
239,472 |
|
|
|
248,436 |
|
|
|
|
|
|
242,717 |
|
|
|
249,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Deferred taxes are estimated to be approximately 25%
for 2020 and 2019.
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, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income, as
reported |
$ |
(146,569 |
) |
|
$ |
115,185 |
|
|
$ |
(1,594 |
) |
|
$ |
116,604 |
|
Adjustment for certain
special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on sale of assets |
|
426 |
|
|
|
(5,867 |
) |
|
|
(121,673 |
) |
|
|
(5,678 |
) |
Loss (gain) on ARO settlements |
|
12 |
|
|
|
— |
|
|
|
12 |
|
|
|
— |
|
Gain on early extinguishment of debt |
|
(8,991 |
) |
|
|
— |
|
|
|
(21,914 |
) |
|
|
— |
|
Change in fair value related to derivatives prior to
settlement |
|
125,803 |
|
|
|
(161,738 |
) |
|
|
(7,443 |
) |
|
|
(75,173 |
) |
Impairment of proved property |
|
— |
|
|
|
— |
|
|
|
77,000 |
|
|
|
— |
|
Abandonment and impairment of unproved properties |
|
5,524 |
|
|
|
12,770 |
|
|
|
10,937 |
|
|
|
25.429 |
|
Lawsuit settlements |
|
776 |
|
|
|
1,190 |
|
|
|
1,591 |
|
|
|
1,896 |
|
Rig release penalty |
|
— |
|
|
|
1,436 |
|
|
|
— |
|
|
|
1,436 |
|
Exit and termination costs |
|
10,297 |
|
|
|
2,180 |
|
|
|
11,892 |
|
|
|
2,180 |
|
Non-cash stock-based compensation |
|
10,153 |
|
|
|
11,016 |
|
|
|
19,375 |
|
|
|
22,181 |
|
Deferred compensation plan |
|
12,587 |
|
|
|
(11,142 |
) |
|
|
4,050 |
|
|
|
(7,561 |
) |
Tax impact |
|
(34,962 |
) |
|
|
38,817 |
|
|
|
12,511 |
|
|
|
13,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
excluding certain items, a non-GAAP measure |
$ |
(24,944 |
) |
|
$ |
3,847 |
|
|
$ |
(15,256 |
) |
|
$ |
95,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per diluted
share, as reported |
$ |
(0.61 |
) |
|
$ |
0.46 |
|
|
$ |
(0.01 |
) |
|
$ |
0.46 |
|
Adjustment for certain special
items per diluted share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale of assets |
|
0.00 |
|
|
|
(0.02 |
) |
|
|
(0.50 |
) |
|
|
(0.02 |
) |
Loss (gain) on ARO settlements |
|
0.00 |
|
|
|
— |
|
|
|
0.00 |
|
|
|
— |
|
Gain on early extinguishment of debt |
|
(0.04 |
) |
|
|
— |
|
|
|
(0.09 |
) |
|
|
— |
|
Change in fair value related to derivatives prior to
settlement |
|
0.53 |
|
|
|
(0.65 |
) |
|
|
(0.03 |
) |
|
|
(0.30 |
) |
Impairment of proved property |
|
— |
|
|
|
— |
|
|
|
0.32 |
|
|
|
— |
|
Abandonment and impairment of unproved properties |
|
0.02 |
|
|
|
0.05 |
|
|
|
0.05 |
|
|
|
0.10 |
|
Lawsuit settlements |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.01 |
|
|
|
0.01 |
|
Rig release penalty |
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
Exit and termination costs |
|
0.04 |
|
|
|
0.01 |
|
|
|
0.05 |
|
|
|
0.01 |
|
Non-cash stock-based compensation |
|
0.04 |
|
|
|
0.04 |
|
|
|
0.08 |
|
|
|
0.09 |
|
Deferred compensation plan |
|
0.05 |
|
|
|
(0.04 |
) |
|
|
0.02 |
|
|
|
(0.03 |
) |
Adjustment for rounding differences |
|
0.02 |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
Tax impact |
|
(0.15 |
) |
|
|
0.16 |
|
|
|
0.05 |
|
|
|
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
diluted share, excluding certain items, a
non-GAAP measure |
$ |
(0.10 |
) |
|
$ |
0.02 |
|
|
$ |
(0.06 |
) |
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted (loss) earnings
per share, a non-GAAP measure: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.10 |
) |
|
$ |
0.02 |
|
|
$ |
(0.06 |
) |
|
$ |
0.38 |
|
Diluted |
$ |
(0.10 |
) |
|
$ |
0.02 |
|
|
$ |
(0.06 |
) |
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and oil sales, as reported |
$ |
349,258 |
|
|
$ |
563,579 |
|
|
$ |
781,354 |
|
|
$ |
1,235,233 |
|
Derivative fair value income (loss), as reported |
|
(6,303 |
) |
|
|
195,245 |
|
|
|
226,872 |
|
|
|
133,514 |
|
Less non-cash fair value (gain) loss |
|
125,803 |
|
|
|
(161,738 |
) |
|
|
(7,443 |
) |
|
|
(75,173 |
) |
Brokered natural gas and marketing and other, as reported |
|
33,591 |
|
|
|
92,605 |
|
|
|
62,240 |
|
|
|
230,819 |
|
Less ARO settlement and other (gains) losses |
|
(282 |
) |
|
|
(665 |
) |
|
|
(542 |
) |
|
|
(736 |
) |
Cash revenue applicable to production |
|
502,067 |
|
|
|
689,026 |
|
|
|
1,062,481 |
|
|
|
1,523,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating, as reported |
|
24,394 |
|
|
|
33,981 |
|
|
|
56,429 |
|
|
|
67,208 |
|
Less direct operating stock-based compensation |
|
(434 |
) |
|
|
(549 |
) |
|
|
(884 |
) |
|
|
(1,140 |
) |
Transportation, gathering and compression, as reported |
|
278,875 |
|
|
|
301,219 |
|
|
|
563,640 |
|
|
|
603,874 |
|
Production and ad valorem taxes, as reported |
|
5,557 |
|
|
|
9,889 |
|
|
|
14,576 |
|
|
|
21,199 |
|
Brokered natural gas and marketing, as reported |
|
38,161 |
|
|
|
101,117 |
|
|
|
70,785 |
|
|
|
233,422 |
|
Less brokered natural gas and marketing stock-based
compensation |
|
(168 |
) |
|
|
(553 |
) |
|
|
(581 |
) |
|
|
(1,001 |
) |
General and administrative, as reported |
|
38,288 |
|
|
|
49,195 |
|
|
|
80,542 |
|
|
|
95,833 |
|
Less G&A stock-based compensation |
|
(9,179 |
) |
|
|
(9,500 |
) |
|
|
(17,208 |
) |
|
|
(19,138 |
) |
Less lawsuit settlements |
|
(776 |
) |
|
|
(1,190 |
) |
|
|
(1,591 |
) |
|
|
(1,896 |
) |
Interest expense, as reported |
|
48,624 |
|
|
|
51,727 |
|
|
|
96,142 |
|
|
|
103,264 |
|
Less amortization of deferred financing costs |
|
(2,135 |
) |
|
|
(1,805 |
) |
|
|
(4,196 |
) |
|
|
(3,593 |
) |
Cash expenses |
|
421,207 |
|
|
|
533,531 |
|
|
|
857,654 |
|
|
|
1,098,032 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin, a non-GAAP
measure |
$ |
80,860 |
|
|
$ |
155,495 |
|
|
$ |
204,827 |
|
|
$ |
425,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mmcfe produced during period |
|
213,746 |
|
|
|
208,141 |
|
|
|
422,514 |
|
|
|
411,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per
mcfe |
$ |
0.38 |
|
|
$ |
0.75 |
|
|
$ |
0.48 |
|
|
$ |
1.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before
income taxes, as reported |
$ |
(189,849 |
) |
|
$ |
155,284 |
|
|
$ |
5,344 |
|
|
$ |
162,391 |
|
Adjustments to reconcile
(loss) income before income taxes to cash
margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARO settlements and other gains |
|
(282 |
) |
|
|
(665 |
) |
|
|
(542 |
) |
|
|
(736 |
) |
Derivative fair value loss (income) |
|
6,303 |
|
|
|
(195,245 |
) |
|
|
(226,872 |
) |
|
|
(133,514 |
) |
Net cash receipts on derivative settlements |
|
119,500 |
|
|
|
33,507 |
|
|
|
219,429 |
|
|
|
58,341 |
|
Exploration expense |
|
7,655 |
|
|
|
7,721 |
|
|
|
14,402 |
|
|
|
15,444 |
|
Lawsuit settlements |
|
776 |
|
|
|
1,190 |
|
|
|
1,591 |
|
|
|
1,896 |
|
Rig release penalty |
|
— |
|
|
|
1,436 |
|
|
|
— |
|
|
|
1,436 |
|
Exit and termination costs |
|
10,297 |
|
|
|
2,180 |
|
|
|
11,892 |
|
|
|
2,180 |
|
Deferred compensation plan |
|
12,587 |
|
|
|
(11,142 |
) |
|
|
4,050 |
|
|
|
(7,561 |
) |
Stock-based compensation (direct operating, brokered natural gas
and marketing, general and administrative and termination
costs) |
|
10,153 |
|
|
|
11,016 |
|
|
|
19,375 |
|
|
|
22,181 |
|
Interest – amortization of deferred financing costs |
|
2,135 |
|
|
|
1,805 |
|
|
|
4,196 |
|
|
|
3,593 |
|
Depletion, depreciation and amortization |
|
104,626 |
|
|
|
141,505 |
|
|
|
207,612 |
|
|
|
280,223 |
|
Loss (gain) on sale of assets |
|
426 |
|
|
|
(5,867 |
) |
|
|
(121,673 |
) |
|
|
(5,678 |
) |
Gain on early extinguishment of debt |
|
(8,991 |
) |
|
|
— |
|
|
|
(21,914 |
) |
|
|
— |
|
Impairment of proved property and other assets |
|
— |
|
|
|
— |
|
|
|
77,000 |
|
|
|
— |
|
Abandonment and impairment of unproved properties |
|
5,524 |
|
|
|
12,770 |
|
|
|
10,937 |
|
|
|
25,429 |
|
Cash margin, a non-GAAP
measure |
$ |
80,860 |
|
|
$ |
155,495 |
|
|
$ |
204,827 |
|
|
$ |
425,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
HEDGING POSITION AS OF June 30, 2020 – (Unaudited)
|
|
Daily Volume |
|
Hedge Price |
|
Gas
1 |
|
|
|
|
|
|
|
|
|
Jul-Oct 2020 3-way Collar |
60,000 Mmbtu |
|
$1.75 / $2.00 x $2.53 |
|
3Q 2020 Swaps |
1,206,522 Mmbtu |
|
$2.58 |
|
4Q 2020 Swaps |
1,087,147 Mmbtu |
|
$2.60 |
|
|
|
|
|
|
Apr-Oct 2021 Collars |
60,000 Mmbtu |
|
$2.60 x $3.00 |
|
2021 3-way Collars |
240,000 Mmbtu |
|
$1.99 / $2.33 x $2.60 |
|
2021 Swaps |
70,000 Mmbtu |
|
$2.61 |
|
|
|
|
|
|
Oil 2 |
|
|
|
|
|
|
|
|
|
3Q 2020 Swaps |
8,000 bbls |
|
$58.19 |
|
4Q 2020 Swaps |
6,000 bbls |
|
$58.02 |
|
|
|
|
|
|
2021 Swaps |
1,000 bbls |
|
$55.00 |
|
|
|
|
|
|
|
|
|
|
|
C3
Propane |
|
|
|
|
|
|
|
|
|
3Q 2020 Swaps |
3,022 bbls |
|
$0.470/gallon |
|
|
|
|
|
|
nC4 Butane
3 |
|
|
|
|
|
|
|
|
|
3Q 2020 Swaps |
2,500 bbls |
|
$0.570/gallon |
|
|
|
|
|
|
C5 Natural
Gasoline |
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3Q 2020 Swaps |
1,674 bbls |
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$0.732/gallon |
(1) Range sold natural gas call swaptions of 180,000 Mmbtu/d for
calendar 2021 at an average strike price of $2.825 per Mmbtu.
Range also sold 60,000 Mmbtu/d of 3Q20 $2.50 strike calls.
(2) Range sold 500 bbls/d of 3Q20 $59.00 strike WTI calls, and
call swaption of 1,000 bbls/d for calendar 2021 at an average
strike price of $55.00.
(3) Range sold nC4 butane calls of 2,500 bbls/d for 3Q20 at an
average strike price of $0.57 per gallon.
SEE WEBSITE FOR OTHER SUPPLEMENTAL
INFORMATION FOR THE PERIODSAND ADDITIONAL HEDGING
DETAILS
Range Resources (NYSE:RRC)
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