RANGE RESOURCES CORPORATION (NYSE: RRC) today
announced its third quarter 2020 financial results.
Third Quarter Highlights –
- Well costs continue to average less
than $600 per lateral foot, including facility costs, the lowest in
Appalachia
- 2020 annual capital spend
expectation reduced by at least $15 million, due to efficiency
improvements
- Total capital expenditures were
$63.5 million during the quarter
- Transportation, gathering,
processing and compression expense improved $0.10 per mcfe, or 7%
versus prior year
- Lease operating expense improved to
$0.10 per mcfe, a record low for the Company
- Total cash unit costs improved
$0.18 per mcfe, or 9% versus prior year
- Closed on North Louisiana asset
divestiture for gross proceeds of $245 million, plus an additional
$90 million contingent on future commodity prices
- Issued $300 million in additional
2026 notes and repurchased $500 million in near-term maturities via
tender offer, extending the Company’s debt maturities while
maintaining liquidity
- Reaffirmation of the existing $3.0
billion borrowing base and elected commitments of $2.4 billion
- Published an updated Corporate
Sustainability Report highlighting Range’s environmental
leadership, strong governance, and focus on workforce health and
safety.
Commenting on the quarter, Jeff Ventura, the
Company’s CEO said, “Range continued to make steady progress in the
third quarter by operating safely, improving our cost structure,
reducing debt, extending our maturity runway, and methodically
developing our core asset with peer-leading well costs and capital
efficiency. As a result of efficient operations, we were able to
reduce our capital budget for 2020 while accomplishing our
operational objectives, setting us up well for 2021. Looking
forward, our shallow base decline of less than 20% and peer leading
well costs provide Range a sustaining capital requirement per unit
of production that we believe is the best among peers, providing us
a solid foundation for generating corporate returns. With an
improved price outlook for natural gas and natural gas liquids,
Range is well-positioned to generate durable free cash flow, which
at today’s stock price equates to a free cash flow yield that
competes with any sector.”
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 third quarter 2020
totaled $299 million, GAAP net cash provided from operating
activities (including changes in working capital) was an outflow
of $24 million, and GAAP earnings was a loss of $680 million
($2.83 per diluted share). Third quarter earnings
include $522 million exit and termination costs associated with the
sale of North Louisiana assets and a $125 million non-cash
derivative loss due to increases in commodity prices.
Non-GAAP revenues for third quarter 2020
totaled $510 million, and cash flow from operations before
changes in working capital, a non-GAAP measure, was $91
million. Adjusted earnings comparable to analysts’ estimates,
a non-GAAP measure, was a loss of $11 million ($0.05 per
diluted share) in third quarter 2020.
Capital Expenditures
Third quarter 2020 drilling and completion
expenditures were $60 million. In addition, during the quarter, a
combined $3.5 million was invested in acreage and gathering
systems. Total year-to-date expenditures were $298 million at the
end of the third quarter. Well costs, including all facilities,
averaged less than $600 per foot in the third quarter, the lowest
normalized well costs in Appalachia. Given the realized
efficiencies year-to-date, Range is lowering its anticipated
capital spending by $15 million for 2020 to $415 million or
less.
Asset Sale and Financial Position
In
August, Range finalized the sale of its North Louisiana assets for
gross proceeds of $245 million, with the potential for $90 million
in additional proceeds contingent on future commodity prices.
During the quarter, Range issued $300 million
aggregate principal amount of 9.25% senior notes due 2026. Proceeds
from the senior notes offering and North Louisiana divestiture were
used to redeem $500 million aggregate principal amount of the
Company’s notes due 2021 through 2023. In addition, Range retired
approximately $2.9 million in principal amount of senior
and subordinated notes through open market repurchases during the
third quarter at a weighted average discount to par of 7%. In
total during 2020, Range has reduced note maturities through 2024
by approximately $1.2 billion through refinancing and
repayments.
At the end of the quarter, pursuant to the
scheduled semi-annual borrowing base redetermination process, Range
received reaffirmation of its $3.0 billion borrowing base under the
Company’s existing revolving credit facility. Aggregate lender
commitments under the credit facility remain at $2.4 billion. Range
had $706 million drawn on its revolver and approximately $1.4
billion of additional borrowing capacity under the commitment
amount as of September 30, 2020.
Unit Costs and
Pricing
The following table details Range’s unit costs
per mcfe(a):
Expenses |
|
3Q
2020($/Mcfe) |
|
|
3Q 2019
($/Mcfe) |
|
|
Increase
(Decrease) |
|
|
|
|
|
|
|
|
|
Direct operating(a) |
$ |
0.10 |
|
$ |
0.17 |
|
|
(41 |
%) |
Transportation, gathering,
processing and compression |
|
1.33 |
|
|
1.43 |
|
|
(7 |
%) |
Production and ad valorem
taxes |
|
0.03 |
|
|
0.04 |
|
|
(25 |
%) |
General and administrative
(G&A)(a) |
|
0.15 |
|
|
0.16 |
|
|
(6 |
%) |
Interest expense(a) |
|
0.23 |
|
|
0.22 |
|
|
5 |
% |
Total cash unit costs(b) |
|
1.84 |
|
|
2.02 |
|
|
(9 |
%) |
Depletion, depreciation and amortization (DD&A) |
|
0.48 |
|
|
0.67 |
|
|
(28 |
%) |
Total cash unit costs plus DD&A(b) |
$ |
2.31 |
|
$ |
2.68 |
|
|
(14 |
%) |
|
|
|
|
|
|
|
|
|
|
(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 third quarter 2020:
|
3Q20 Production & Realized
Pricing |
|
|
Natural
Gas(Mmcf) |
|
NGLs (Bbl) |
|
Oil(Bbl) |
|
Natural GasEquivalent
(Mmcfe) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Production per day |
|
|
1,553 |
|
|
|
99,745 |
|
|
|
7,134 |
|
|
|
2,194 |
|
|
|
|
|
|
|
|
|
Average NYMEX price |
|
$ |
1.95 |
|
|
|
|
$ |
40.90 |
|
|
|
Differential, including basis
hedging |
|
|
(0.42 |
) |
|
|
|
|
(9.43 |
) |
|
|
Realized prices before NYMEX
hedges |
|
|
1.53 |
|
|
$ |
16.27 |
|
|
|
31.47 |
|
|
|
Settled NYMEX hedges |
|
|
0.47 |
|
|
|
(0.10 |
) |
|
|
19.34 |
|
|
|
Average realized prices after
hedges (a) |
|
$ |
2.00 |
|
|
$ |
16.17 |
|
|
$ |
50.81 |
|
|
$ |
2.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) May not add due to rounding. |
Third quarter 2020 natural gas, NGLs and oil price
realizations (including the impact of derivative settlements which
correspond to analysts’ estimates) averaged $2.32 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 $1.53 per mcf, or a
($0.42) differential to NYMEX. Appalachian storage remained higher
than normal during the third quarter while the basin experienced
maintenance on multiple infrastructure projects, both weakening
local prices. Range expects this weakness to dissipate with the
onset of winter weather leading to improvements in basis
pricing.
- Pre-hedge NGL realizations were
$16.27 per barrel during the quarter, or approximately 40% of WTI
(West Texas Intermediate), and in-line with the Mont
Belvieu-equivalent barrel. NGL component pricing improved compared
to second quarter as demand remained strong. Following the
continued increase in C3+ pricing at Mont Belvieu and
internationally, Range expects its fourth quarter and 2021
pre-hedge realized NGL price to reach the highest levels since
early 2019, based on current strip pricing.
- Crude oil and condensate price
realizations, before realized hedges, averaged $31.47 per barrel,
or $9.43 below WTI. Range expects condensate differentials to
continue improving through the rest of 2020 and further into
2021.
Operational Discussion
The table below summarizes estimated activity
for 2020 regarding the number of wells to sales for each area.
|
|
|
Wells TIL3Q 2020 |
|
Calendar 2020Planned TIL |
|
Remaining2020 |
SW PA Super-Rich |
|
|
3 |
|
3 |
|
0 |
SW PA Wet |
|
|
8 |
|
31 |
|
5 |
SW PA Dry |
|
|
8 |
|
33 |
|
2 |
Total Wells |
|
|
19 |
|
67 |
|
7 |
Production by Area
Total production for third quarter 2020 averaged
approximately 2.19 Bcfe net per day. The southwest Appalachia area
averaged 2.04 Bcfe net per day during the quarter, reflecting
strategic production curtailments in September, as discussed
below. The northeast Marcellus properties averaged 81
Mmcf net per day and North Louisiana, which was sold in August,
averaged approximately 73 Mmcfe net per day during the third
quarter.
Marketing and
Transportation
During the third quarter, Appalachian natural
gas storage remained higher than normal while the basin experienced
maintenance on multiple infrastructure projects, causing weakness
in local prices. In response to low in-basin natural gas prices,
Range curtailed up to 210 Mmcf per day of gross natural gas
production during the last two weeks of September and the majority
of October. Range expects local price to improve with the onset of
winter weather, as demonstrated by improving basis futures, leading
to improving corporate natural gas differentials into
2021. The deferred production is expected to receive
the benefit of higher future prices, thereby increasing cash flow.
As of October 28th, all curtailed production had been returned to
sales.
Range continues to see strong NGL export
premiums at Marcus Hook relative to the Mont Belvieu
index. Range’s NGL pre-hedge price realizations in the
third quarter improved by $3.47 per barrel versus the previous
quarter and a $1.21 per barrel improvement compared to the
prior-year quarter, despite hurricane-related demand weakness on
the Gulf Coast. Looking ahead, Range expects NGL balances to
tighten further with ongoing declines in associated NGL production
and improving demand. With respect to propane and butane, the start
of winter should boost domestic demand while new LPG export
capacity becomes operational on the Gulf Coast. At the same time,
global LPG balances are expected to tighten by more than 10%
between October and the first quarter of 2021. These strengthening
fundamentals set the stage for stronger propane and butane prices
moving into 2021. In this environment, Range’s flexible
transportation portfolio creates opportunities to maximize value by
optimizing sales into both domestic and international markets,
supporting the Company’s premium differentials to Mont Belvieu.
Third quarter condensate production was lower
versus the prior quarter as a result of the sale of North Louisiana
and relatively light activity in the super-rich area for 2020.
Condensate prices improved by almost 50% during the quarter,
trending with crude prices. Consequently, Range experienced a sharp
increase in condensate price realizations to $31.47/bbl. The
Company expects condensate price differentials to WTI to tighten in
fourth quarter 2020 and early 2021 as regional production continues
to decline, while demand for transportation fuels appears likely to
recover.
Corporate Sustainability Report
In August, Range published an updated Corporate
Sustainability Report. The 2020 Corporate Sustainability
Report covers a broader and deeper set of topics, with a focus
on material issues for the business and key stakeholders,
underscoring the Company’s commitment to increased transparency.
Included in the report, Range set industry-leading emissions goals.
The Company’s medium-term goal is to achieve the objective of net
zero greenhouse gas (GHG) emissions by 2025 through continued
emissions reductions and the use of carbon offsets associated with
reforestation and forest management. As an additional interim goal,
Range intends to further reduce GHG emissions intensity relative to
2019 levels by 15 percent by 2025.
To achieve these targets, Range continues to
invest in new technologies and engineering solutions, implement
best-in-class emissions reductions practices and develop improved
methods to measure emissions. These efforts have positioned Range
as a leader in emissions reductions amongst peers. Based on
third-party data from Rystad Energy, an independent energy research
firm, Range had the lowest CO2 emissions intensity in a group of 58
global oil and natural gas producers. The full report is available
at csr.rangeresources.com.
Guidance – 2020
Production per day Guidance
Accounting for the strategic production
curtailments, Range expects fourth quarter production to average
approximately 2.10 Bcfe per day. Production for full-year 2020 is
expected to average approximately 2.24 Bcfe per day, reflecting
adjustments associated with the sale of the North Louisiana assets
and strategic curtailments.
Full Year 2020 Expense
Guidance
|
Updated Guidance |
Direct operating expense: |
$0.11 - $0.13 per mcfe |
Transportation, gathering,
processing and compression expense: |
$1.32 - $1.36 per mcfe |
Production tax expense: |
$0.03 - $0.04 per mcfe |
Exploration expense: |
$28 - $34 million |
G&A expense: |
$0.14 - $0.15 per mcfe |
Interest expense: |
$0.22 - $0.24 per mcfe |
DD&A expense: |
$0.48 - $0.52 per mcfe |
Net brokered gas marketing
expense: |
$10 - $16 million |
Full Year 2020 Price Guidance
Based on current market indications and including the mid-August
North Louisiana assets divestiture, Range expects to average the
following price differentials for its production in 2020.
|
2020 Guidance |
Natural Gas:(1) |
NYMEX minus $0.30 to $0.33 |
Natural Gas Liquids:(2) |
Mont Belvieu plus $0.50 to $1.50 per bbl |
Oil/Condensate: |
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 75% of
its remaining 2020 projected natural gas production hedged at a
weighted average floor price of $2.62 per Mmbtu. Similarly, Range
has hedged over 80% of its remaining 2020 projected crude oil
production at an average floor price of $58.02. For 2021, Range has
hedged 1.0 Bcf per day of natural gas production with an average
floor price of $2.60 and an average ceiling price of $2.80. 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 gain of $5.4 million
as of September 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 $1.9 million at September
30, 2020.
Conference Call Information
A conference call to review the financial
results is scheduled on Friday, October 30 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
November 30, 2020.
To participate in the call, dial 877-928-8777 and provide
conference code 1041049 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.
Investor Contacts:
Laith Sando, Vice President – Investor
Relations817-869-4267lsando@rangeresources.com
John Durham, Senior Financial
Analyst817-869-1538jdurham@rangeresources.com
Range Media Contacts:
Mark Windle, Director of Corporate
Communications724-873-3223mwindle@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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGLs and oil sales (a) |
$ |
381,553 |
|
|
$ |
474,754 |
|
|
$ |
1,162,907 |
|
|
$ |
1,709,987 |
|
Derivative fair value (loss)/income |
|
(124,690 |
) |
|
|
74,676 |
|
|
|
102,182 |
|
|
|
208,190 |
|
Brokered natural gas, marketing and other (b) |
|
42,153 |
|
|
|
72,765 |
|
|
|
103,851 |
|
|
|
302,848 |
|
ARO settlement gain (loss) (b) |
|
(6 |
) |
|
|
(11 |
) |
|
|
(18 |
) |
|
|
(11 |
) |
Other (b) |
|
335 |
|
|
|
261 |
|
|
|
889 |
|
|
|
997 |
|
Total revenues and other income |
|
299,345 |
|
|
|
622,445 |
|
|
|
1,369,811 |
|
|
|
2,222,011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating |
|
19,589 |
|
|
|
34,957 |
|
|
|
75,134 |
|
|
|
101,025 |
|
Direct operating – non-cash stock-based compensation (c) |
|
(74 |
) |
|
|
319 |
|
|
|
810 |
|
|
|
1,459 |
|
Transportation, gathering, processing and compression |
|
268,108 |
|
|
|
295,912 |
|
|
|
831,748 |
|
|
|
899,786 |
|
Production and ad valorem taxes |
|
6,106 |
|
|
|
7,805 |
|
|
|
20,682 |
|
|
|
29,004 |
|
Brokered natural gas and marketing |
|
47,643 |
|
|
|
79,416 |
|
|
|
117,847 |
|
|
|
311,837 |
|
Brokered natural gas and marketing –
non-cash stock-based compensation (c) |
|
324 |
|
|
|
522 |
|
|
|
905 |
|
|
|
1,523 |
|
Exploration |
|
7,897 |
|
|
|
10,517 |
|
|
|
22,299 |
|
|
|
25,961 |
|
Exploration – non-cash stock-based compensation (c) |
|
189 |
|
|
|
496 |
|
|
|
891 |
|
|
|
1,372 |
|
Abandonment and impairment of unproved properties |
|
5,667 |
|
|
|
16,202 |
|
|
|
16,604 |
|
|
|
41,631 |
|
General and administrative |
|
31,209 |
|
|
|
32,626 |
|
|
|
92,552 |
|
|
|
107,425 |
|
General and administrative – non-cash
stock-based compensation (c) |
|
6,863 |
|
|
|
8,423 |
|
|
|
24,071 |
|
|
|
27,561 |
|
General and administrative – lawsuit settlements |
|
81 |
|
|
|
139 |
|
|
|
1,672 |
|
|
|
2,035 |
|
General and administrative – rig release penalty |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,436 |
|
General and administrative – bad debt expense |
|
— |
|
|
|
(141 |
) |
|
|
400 |
|
|
|
(141 |
) |
Exit and termination costs |
|
519,613 |
|
|
|
820 |
|
|
|
531,505 |
|
|
|
3,000 |
|
Exit and termination costs – non-cash stock-based
compensation (c) |
|
2,020 |
|
|
|
(1 |
) |
|
|
2,020 |
|
|
|
25 |
|
Deferred compensation plan (d) |
|
6,237 |
|
|
|
(8,871 |
) |
|
|
10,287 |
|
|
|
(16,432 |
) |
Interest expense |
|
45,866 |
|
|
|
45,202 |
|
|
|
137,812 |
|
|
|
144,873 |
|
Interest expense – amortization of deferred financing costs
(e) |
|
2,133 |
|
|
|
1,795 |
|
|
|
6,329 |
|
|
|
5,388 |
|
Gain on early extinguishment of debt |
|
7,821 |
|
|
|
(2,985 |
) |
|
|
(14,093 |
) |
|
|
(2,985 |
) |
Depletion, depreciation and amortization |
|
96,167 |
|
|
|
137,751 |
|
|
|
303,779 |
|
|
|
417,974 |
|
Impairment of proved property and other assets |
|
1,955 |
|
|
|
— |
|
|
|
78,955 |
|
|
|
— |
|
Loss (gain) on sale of assets |
|
9,230 |
|
|
|
36,341 |
|
|
|
(112,443 |
) |
|
|
30,663 |
|
Total costs and expenses |
|
1,084,644 |
|
|
|
697,245 |
|
|
|
2,149,766 |
|
|
|
2,134,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income
taxes |
|
(785,299 |
) |
|
|
(74,800 |
) |
|
|
(779,955 |
) |
|
|
87,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
— |
|
|
|
4,079 |
|
|
|
(366 |
) |
|
|
4,079 |
|
Deferred |
|
(105,251 |
) |
|
|
(51,298 |
) |
|
|
(97,947 |
) |
|
|
(5,511 |
) |
|
|
(105,251 |
) |
|
|
(47,219 |
) |
|
|
(98,313 |
) |
|
|
(1,432 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(680,048 |
) |
|
$ |
(27,581 |
) |
|
$ |
(681,642 |
) |
|
$ |
89,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(Loss) Income Per Common
Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(2.83 |
) |
|
$ |
(0.11 |
) |
|
$ |
(2.82 |
) |
|
$ |
0.35 |
|
Diluted |
$ |
(2.83 |
) |
|
$ |
(0.11 |
) |
|
$ |
(2.82 |
) |
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding, as reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
239,895 |
|
|
|
248,082 |
|
|
|
241,770 |
|
|
|
247,878 |
|
Diluted |
|
239,895 |
|
|
|
248,082 |
|
|
|
241,770 |
|
|
|
248,823 |
|
(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) |
|
September 30, |
|
|
|
December 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
(Unaudited) |
|
|
|
(Audited) |
|
Assets |
|
|
|
|
|
|
|
Current assets |
$ |
203,883 |
|
|
$ |
290,954 |
|
Derivative assets |
|
20,326 |
|
|
|
137,554 |
|
Natural gas and oil properties, successful efforts method |
|
5,670,971 |
|
|
|
6,041,035 |
|
Transportation and field assets |
|
4,429 |
|
|
|
5,375 |
|
Operating lease right-of-use assets |
|
43,763 |
|
|
|
62,053 |
|
Other |
|
69,526 |
|
|
|
75,432 |
|
|
$ |
6,012,898 |
|
|
$ |
6,612,403 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’
Equity |
|
|
|
|
|
|
|
Current liabilities |
$ |
574,609 |
|
|
$ |
551,032 |
|
Asset retirement obligations |
|
2,103 |
|
|
|
2,393 |
|
Derivative liabilities |
|
53,408 |
|
|
|
13,119 |
|
|
|
|
|
|
|
|
|
Bank debt |
|
696,172 |
|
|
|
464,319 |
|
Senior notes |
|
2,328,585 |
|
|
|
2,659,844 |
|
Senior subordinated notes |
|
17,375 |
|
|
|
48,774 |
|
Total debt |
|
3,042,132 |
|
|
|
3,172,937 |
|
|
|
|
|
|
|
|
|
Deferred tax liability |
|
62,319 |
|
|
|
160,196 |
|
Derivative liabilities |
|
31,503 |
|
|
|
949 |
|
Deferred compensation liability |
|
69,927 |
|
|
|
64,070 |
|
Operating lease liabilities |
|
32,238 |
|
|
|
41,068 |
|
Asset retirement obligations and other liabilities |
|
98,359 |
|
|
|
259,151 |
|
Divestiture contract obligation |
|
383,796 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
Common stock and retained earnings |
|
1,693,209 |
|
|
|
2,355,512 |
|
Other comprehensive loss |
|
(574 |
) |
|
|
(788 |
) |
Common stock held in treasury stock |
|
(30,131 |
) |
|
|
(7,236 |
) |
Total stockholders’ equity |
|
1,662,504 |
|
|
|
2,347,488 |
|
|
$ |
6,012,898 |
|
|
$ |
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 EndedSeptember 30, |
|
|
Nine Months EndedSeptember 30, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
% |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and other income,
as reported |
$ |
299,345 |
|
|
$ |
622,445 |
|
|
|
-52 |
% |
|
$ |
1,369,811 |
|
|
$ |
2,222,011 |
|
|
|
-38 |
% |
Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total change in fair value related to derivatives prior to
settlement (gain) loss |
|
210,504 |
|
|
|
5,332 |
|
|
|
|
|
|
|
203,061 |
|
|
|
(69,841 |
) |
|
|
|
|
ARO settlement (gain) loss |
|
6 |
|
|
|
11 |
|
|
|
|
|
|
|
18 |
|
|
|
11 |
|
|
|
|
|
Total revenues, as adjusted,
non-GAAP |
$ |
509,855 |
|
|
$ |
627,788 |
|
|
|
-19 |
% |
|
$ |
1,572,890 |
|
|
$ |
2,152,181 |
|
|
|
-27 |
% |
RANGE RESOURCES CORPORATION
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(680,048 |
) |
|
$ |
(27,581 |
) |
|
$ |
(681,642 |
) |
|
|
$ |
89,023 |
|
Adjustments to reconcile net
cash provided from continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax expense |
|
(105,251 |
) |
|
|
(51,298 |
) |
|
|
(97,947 |
) |
|
|
|
(5,511 |
) |
Depletion, depreciation, amortization and impairment |
|
98,122 |
|
|
|
137,751 |
|
|
|
382,734 |
|
|
|
|
417,974 |
|
Abandonment and impairment of unproved properties |
|
5,667 |
|
|
|
16,202 |
|
|
|
16,604 |
|
|
|
|
41,631 |
|
Derivative fair value loss (income) |
|
124,690 |
|
|
|
(74,676 |
) |
|
|
(102,182 |
) |
|
|
|
(208,190 |
) |
Cash settlements on derivative financial instruments |
|
85,814 |
|
|
|
80,008 |
|
|
|
305,243 |
|
|
|
|
138,349 |
|
Divestiture fee obligation |
|
486,689 |
|
|
|
— |
|
|
|
486,689 |
|
|
|
|
— |
|
Allowance for bad debts |
|
— |
|
|
|
(141 |
) |
|
|
400 |
|
|
|
|
(141 |
) |
Amortization of deferred issuance costs and other |
|
1,625 |
|
|
|
1,619 |
|
|
|
5,023 |
|
|
|
|
4,862 |
|
Deferred and stock-based compensation |
|
15,267 |
|
|
|
683 |
|
|
|
38,380 |
|
|
|
|
14,410 |
|
Loss (gain) on sale of assets and other |
|
9,230 |
|
|
|
36,341 |
|
|
|
(112,443 |
) |
|
|
|
30,663 |
|
Loss (gain) on early extinguishment of debt |
|
7,821 |
|
|
|
(2,985 |
) |
|
|
(14,093 |
) |
|
|
|
(2,985 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in working capital: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
(12,047 |
) |
|
|
40,086 |
|
|
|
91,343 |
|
|
|
|
241,514 |
|
Inventory and other |
|
(1,730 |
) |
|
|
1,011 |
|
|
|
(5,786 |
) |
|
|
|
(4,024 |
) |
Accounts payable |
|
(25,467 |
) |
|
|
(23,513 |
) |
|
|
(52,820 |
) |
|
|
|
(52,645 |
) |
Accrued liabilities and other |
|
(34,676 |
) |
|
|
(29,592 |
) |
|
|
(80,529 |
) |
|
|
|
(155,499 |
) |
Net changes in working capital |
|
(73,920 |
) |
|
|
(12,008 |
) |
|
|
(47,792 |
) |
|
|
|
29,346 |
|
Net cash (used in) provided from operating activities |
$ |
(24,294 |
) |
|
$ |
103,915 |
|
|
$ |
178,974 |
|
|
|
$ |
549,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET
CASH PROVIDED FROM OPERATING ACTIVITIES, AS
REPORTED, TO CASH FLOW FROM OPERATIONS BEFORE
CHANGES IN WORKING CAPITAL, a non-GAAP
measure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
|
2019 |
|
Net cash (used in) provided from
operating activities, as reported |
$ |
(24,294 |
) |
|
$ |
103,915 |
|
|
$ |
178,974 |
|
|
|
$ |
549,431 |
|
Net changes in working capital |
|
73,920 |
|
|
|
12,008 |
|
|
|
47,792 |
|
|
|
|
(29,346 |
) |
Exploration expense |
|
7,897 |
|
|
|
10,517 |
|
|
|
22,299 |
|
|
|
|
25,961 |
|
Lawsuit settlements |
|
81 |
|
|
|
139 |
|
|
|
1,672 |
|
|
|
|
2,035 |
|
Exit and termination costs – severance costs only |
|
4,191 |
|
|
|
820 |
|
|
|
5,638 |
|
|
|
|
3,000 |
|
Accrued transportation contract release including accretion |
|
233 |
|
|
|
— |
|
|
|
10,678 |
|
|
|
|
— |
|
One-time midstream termination payment |
|
28,500 |
|
|
|
— |
|
|
|
28,500 |
|
|
|
|
— |
|
Rig release penalty |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
1,436 |
|
Non-cash compensation adjustment |
|
806 |
|
|
|
392 |
|
|
|
1,928 |
|
|
|
|
1,635 |
|
Cash flow from operations
before changes in working capital – non-GAAP measure |
$ |
91,334 |
|
|
$ |
127,791 |
|
|
$ |
297,481 |
|
|
|
$ |
554,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED WEIGHTED AVERAGE
SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
|
2019 |
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
246,128 |
|
|
|
251,408 |
|
|
|
247,050 |
|
|
|
|
250,995 |
|
Stock held by deferred
compensation plan |
|
(6,233 |
) |
|
|
(3,326 |
) |
|
|
(5,280 |
) |
|
|
|
(3,117 |
) |
Adjusted basic |
|
239,895 |
|
|
|
248,082 |
|
|
|
241,770 |
|
|
|
|
247,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
246,128 |
|
|
|
251,408 |
|
|
|
247,050 |
|
|
|
|
250,995 |
|
Dilutive stock options under
treasury method |
|
(6,233 |
) |
|
|
(3,326 |
) |
|
|
(5,280 |
) |
|
|
|
(2,172 |
) |
Adjusted dilutive |
|
239,895 |
|
|
|
248,082 |
|
|
|
241,770 |
|
|
|
|
248,823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
% |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
% |
|
Natural gas, NGL and oil sales
components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
211,638 |
|
|
$ |
284,980 |
|
|
|
|
|
|
$ |
679,094 |
|
|
$ |
1,063,323 |
|
|
|
|
|
NGL sales |
|
149,263 |
|
|
|
143,195 |
|
|
|
|
|
|
|
416,885 |
|
|
|
508,035 |
|
|
|
|
|
Oil sales |
|
20,652 |
|
|
|
46,579 |
|
|
|
|
|
|
|
66,928 |
|
|
|
138,629 |
|
|
|
|
|
Total oil and gas sales, as
reported |
$ |
381,553 |
|
|
$ |
474,754 |
|
|
|
-20 |
% |
|
$ |
1,162,907 |
|
|
$ |
1,709,987 |
|
|
|
-32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative fair value income
(loss), as reported: |
$ |
(124,690 |
) |
|
$ |
74,676 |
|
|
|
|
|
|
$ |
102,182 |
|
|
$ |
208,190 |
|
|
|
|
|
Cash settlements on derivative
financial instruments – (gain) loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
|
(74,035 |
) |
|
|
(72,809 |
) |
|
|
|
|
|
|
(245,044 |
) |
|
|
(92,333 |
) |
|
|
|
|
NGLs |
|
915 |
|
|
|
(7,053 |
) |
|
|
|
|
|
|
(16,033 |
) |
|
|
(47,835 |
) |
|
|
|
|
Crude Oil |
|
(12,694 |
) |
|
|
(146 |
) |
|
|
|
|
|
|
(44,166 |
) |
|
|
1,819 |
|
|
|
|
|
Total change in fair value related to derivatives prior to
settlement, anon-GAAP measure |
$ |
(210,504 |
) |
|
$ |
(5,332 |
) |
|
|
|
|
|
$ |
(203,061 |
) |
|
$ |
69,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering,
processing and compression components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
$ |
157,097 |
|
|
$ |
180,353 |
|
|
|
|
|
|
$ |
494,305 |
|
|
$ |
554,788 |
|
|
|
|
|
NGLs |
|
110,849 |
|
|
|
115,559 |
|
|
|
|
|
|
|
336,491 |
|
|
|
344,998 |
|
|
|
|
|
Oil |
|
162 |
|
|
|
— |
|
|
|
|
|
|
|
952 |
|
|
|
— |
|
|
|
|
|
Total transportation,
gathering, processing and compression, as reported |
$ |
268,108 |
|
|
$ |
295,912 |
|
|
|
|
|
|
$ |
831,748 |
|
|
$ |
899,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and oil sales,
including cash-settled derivatives: (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
285,673 |
|
|
$ |
357,789 |
|
|
|
|
|
|
$ |
924,138 |
|
|
$ |
1,155,656 |
|
|
|
|
|
NGL sales |
|
148,348 |
|
|
|
150,248 |
|
|
|
|
|
|
|
432,918 |
|
|
|
555,870 |
|
|
|
|
|
Oil sales |
|
33,346 |
|
|
|
46,725 |
|
|
|
|
|
|
|
111,094 |
|
|
|
136,810 |
|
|
|
|
|
Total |
$ |
467,367 |
|
|
$ |
554,762 |
|
|
|
-16 |
% |
|
|
1,468,150 |
|
|
|
1,848,336 |
|
|
|
-21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas during
the periods (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
142,876,351 |
|
|
|
143,721,265 |
|
|
|
-1 |
% |
|
|
439,764,525 |
|
|
|
427,405,931 |
|
|
|
3 |
% |
NGL (bbl) |
|
9,176,553 |
|
|
|
9,511,234 |
|
|
|
-4 |
% |
|
|
28,525,849 |
|
|
|
28,971,049 |
|
|
|
-2 |
% |
Oil (bbl) |
|
656,319 |
|
|
|
939,541 |
|
|
|
-30 |
% |
|
|
2,244,741 |
|
|
|
2,727,415 |
|
|
|
-18 |
% |
Gas equivalent (mcfe) (b) |
|
201,873,583 |
|
|
|
206,425,915 |
|
|
|
-2 |
% |
|
|
624,388,065 |
|
|
|
617,596,715 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas –
average per day (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
1,553,004 |
|
|
|
1,562,188 |
|
|
|
-1 |
% |
|
|
1,604,980 |
|
|
|
1,565,589 |
|
|
|
3 |
% |
NGL (bbl) |
|
99,745 |
|
|
|
103,383 |
|
|
|
-4 |
% |
|
|
104,109 |
|
|
|
106,121 |
|
|
|
-2 |
% |
Oil (bbl) |
|
7,134 |
|
|
|
10,212 |
|
|
|
-30 |
% |
|
|
8,192 |
|
|
|
9,991 |
|
|
|
-18 |
% |
Gas equivalent (mcfe) (b) |
|
2,194,278 |
|
|
|
2,243,760 |
|
|
|
-2 |
% |
|
|
2,278,789 |
|
|
|
2,262,259 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, excluding derivative settlements and before third
party transportation costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
1.48 |
|
|
$ |
1.98 |
|
|
|
-25 |
% |
|
$ |
1.54 |
|
|
$ |
2.49 |
|
|
|
-38 |
% |
NGL (bbl) |
$ |
16.27 |
|
|
$ |
15.06 |
|
|
|
8 |
% |
|
$ |
14.61 |
|
|
$ |
17.54 |
|
|
|
-17 |
% |
Oil (bbl) |
$ |
31.47 |
|
|
$ |
49.58 |
|
|
|
-37 |
% |
|
$ |
29.82 |
|
|
$ |
50.83 |
|
|
|
-41 |
% |
Gas equivalent (mcfe) (b) |
$ |
1.89 |
|
|
$ |
2.30 |
|
|
|
-18 |
% |
|
$ |
1.86 |
|
|
$ |
2.77 |
|
|
|
-33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including derivative settlements before third party
transportation costs: (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
2.00 |
|
|
$ |
2.49 |
|
|
|
-20 |
% |
|
$ |
2.10 |
|
|
$ |
2.70 |
|
|
|
-22 |
% |
NGL (bbl) |
$ |
16.17 |
|
|
$ |
15.80 |
|
|
|
2 |
% |
|
$ |
15.18 |
|
|
$ |
19.19 |
|
|
|
-21 |
% |
Oil (bbl) |
$ |
50.81 |
|
|
$ |
49.73 |
|
|
|
2 |
% |
|
$ |
49.49 |
|
|
$ |
50.16 |
|
|
|
-1 |
% |
Gas equivalent (mcfe) (b) |
$ |
2.32 |
|
|
$ |
2.69 |
|
|
|
-14 |
% |
|
$ |
2.35 |
|
|
$ |
2.99 |
|
|
|
-21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including
derivative settlements and after third
party transportation
costs: (d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
0.90 |
|
|
$ |
1.23 |
|
|
|
-27 |
% |
|
$ |
0.98 |
|
|
$ |
1.41 |
|
|
|
-30 |
% |
NGL (bbl) |
$ |
4.09 |
|
|
$ |
3.65 |
|
|
|
12 |
% |
|
$ |
3.38 |
|
|
$ |
7.28 |
|
|
|
-54 |
% |
Oil (bbl) |
$ |
50.56 |
|
|
$ |
49.73 |
|
|
|
2 |
% |
|
$ |
49.07 |
|
|
$ |
50.16 |
|
|
|
-2 |
% |
Gas equivalent (mcfe) (b) |
$ |
0.99 |
|
|
$ |
1.25 |
|
|
|
-21 |
% |
|
$ |
1.02 |
|
|
$ |
1.54 |
|
|
|
-34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering and
compression expense per mcfe |
$ |
1.33 |
|
|
$ |
1.43 |
|
|
|
-7 |
% |
|
$ |
1.33 |
|
|
$ |
1.46 |
|
|
|
-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
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 September 30, |
|
Nine Months Ended September 30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations
before income taxes, as reported |
$ |
(785,299 |
) |
|
$ |
(74,800 |
) |
|
$ |
(779,955 |
) |
|
$ |
87,591 |
|
Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on sale of assets |
|
9,230 |
|
|
|
36,341 |
|
|
|
(112,443 |
) |
|
|
30,663 |
|
(Gain) loss on ARO settlements |
|
6 |
|
|
|
11 |
|
|
|
18 |
|
|
|
11 |
|
Change in fair value related to derivatives prior to
settlement |
|
210,504 |
|
|
|
5,332 |
|
|
|
203,061 |
|
|
|
(69,841 |
) |
Abandonment and impairment of unproved properties |
|
5,667 |
|
|
|
16,202 |
|
|
|
16,604 |
|
|
|
41,631 |
|
Rig release penalty |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,436 |
|
Loss (gain) on early extinguishment of debt |
|
7,821 |
|
|
|
(2,985 |
) |
|
|
(14,093 |
) |
|
|
(2,985 |
) |
Impairment of proved property and other assets |
|
1,955 |
|
|
|
— |
|
|
|
78,955 |
|
|
|
— |
|
Lawsuit settlements |
|
81 |
|
|
|
139 |
|
|
|
1,672 |
|
|
|
2,035 |
|
Exit and termination costs |
|
519,613 |
|
|
|
820 |
|
|
|
531,505 |
|
|
|
3,000 |
|
Exit and termination costs – non-cash stock-based compensation |
|
2,020 |
|
|
|
(1 |
) |
|
|
2,020 |
|
|
|
25 |
|
Brokered natural gas and marketing – non-cash
stock-basedcompensation |
|
324 |
|
|
|
522 |
|
|
|
905 |
|
|
|
1,523 |
|
Direct operating – non-cash stock-based compensation |
|
(74 |
) |
|
|
319 |
|
|
|
810 |
|
|
|
1,459 |
|
Exploration expenses – non-cash stock-based compensation |
|
189 |
|
|
|
496 |
|
|
|
891 |
|
|
|
1,372 |
|
General & administrative – non-cash stock-based
compensation |
|
6,863 |
|
|
|
8,423 |
|
|
|
24,071 |
|
|
|
27,561 |
|
Deferred compensation plan – non-cash adjustment |
|
6,237 |
|
|
|
(8,871 |
) |
|
|
10,287 |
|
|
|
(16,432 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income
taxes, as adjusted |
|
(14,863 |
) |
|
|
(18,052 |
) |
|
|
(35,692 |
) |
|
|
109,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit), as
adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
— |
|
|
|
4,079 |
|
|
|
(366 |
) |
|
|
4,079 |
|
Deferred (a) |
|
(3,716 |
) |
|
|
(4,513 |
) |
|
|
(8,923 |
) |
|
|
27,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income excluding
certain items, a non-GAAP measure |
$ |
(11,147 |
) |
|
$ |
(17,618 |
) |
|
$ |
(26,403 |
) |
|
$ |
77,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP (loss) income per common
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.05 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.11 |
) |
|
$ |
0.31 |
|
Diluted |
$ |
(0.05 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.11 |
) |
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted shares
outstanding, if dilutive |
|
239,895 |
|
|
|
248,082 |
|
|
|
241,770 |
|
|
|
248,823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 EndedSeptember 30, |
|
|
|
Nine Months
Ended September
30, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income, as
reported |
$ |
(680,048 |
) |
|
$ |
(27,581 |
) |
|
|
$ |
(681,642 |
) |
|
$ |
89,023 |
|
|
Adjustment for certain
special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on sale of assets |
|
9,230 |
|
|
|
36,341 |
|
|
|
|
(112,443 |
) |
|
|
30,663 |
|
|
Loss (gain) on ARO settlements |
|
6 |
|
|
|
11 |
|
|
|
|
18 |
|
|
|
11 |
|
|
Gain on early extinguishment of debt |
|
7,821 |
|
|
|
(2,985 |
) |
|
|
|
(14,093 |
) |
|
|
(2,985 |
) |
|
Change in fair value related to derivatives prior to
settlement |
|
210,504 |
|
|
|
5,332 |
|
|
|
|
203,061 |
|
|
|
(69,841 |
) |
|
Impairment of proved property |
|
1,955 |
|
|
|
— |
|
|
|
|
78,955 |
|
|
|
— |
|
|
Abandonment and impairment of unproved properties |
|
5,667 |
|
|
|
16,202 |
|
|
|
|
16,604 |
|
|
|
41,631 |
|
|
Lawsuit settlements |
|
81 |
|
|
|
139 |
|
|
|
|
1,672 |
|
|
|
2,035 |
|
|
Rig release penalty |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
1,436 |
|
|
Exit and termination costs |
|
519,613 |
|
|
|
820 |
|
|
|
|
531,505 |
|
|
|
3,000 |
|
|
Non-cash stock-based compensation |
|
9,322 |
|
|
|
9,759 |
|
|
|
|
28,697 |
|
|
|
31,940 |
|
|
Deferred compensation plan |
|
6,237 |
|
|
|
(8,871 |
) |
|
|
|
10,287 |
|
|
|
(16,432 |
) |
|
Tax impact |
|
(101,535 |
) |
|
|
(46,785 |
) |
|
|
|
(89,024 |
) |
|
|
(32,790 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income
excluding certain items, a non-GAAP measure |
$ |
(11,147 |
) |
|
$ |
(17,618 |
) |
|
|
$ |
(26,403 |
) |
|
$ |
77,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income per diluted
share, as reported |
$ |
(2.83 |
) |
|
$ |
(0.11 |
) |
|
|
$ |
(2.82 |
) |
|
$ |
0.35 |
|
|
Adjustment for certain
special items per diluted share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on sale of assets |
|
0.04 |
|
|
|
0.15 |
|
|
|
|
(0.47 |
) |
|
|
0.12 |
|
|
Loss (gain) on ARO settlements |
|
0.00 |
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
0.00 |
|
|
Loss (gain) on early extinguishment of debt |
|
0.03 |
|
|
|
(0.01 |
) |
|
|
|
(0.06 |
) |
|
|
(0.01 |
) |
|
Change in fair value related to derivatives prior to
settlement |
|
0.88 |
|
|
|
0.02 |
|
|
|
|
0.84 |
|
|
|
(0.28 |
) |
|
Impairment of proved property |
|
0.01 |
|
|
|
— |
|
|
|
|
0.33 |
|
|
|
— |
|
|
Abandonment and impairment of unproved properties |
|
0.02 |
|
|
|
0.07 |
|
|
|
|
0.07 |
|
|
|
0.17 |
|
|
Lawsuit settlements |
|
0.00 |
|
|
|
0.00 |
|
|
|
|
0.01 |
|
|
|
0.01 |
|
|
Rig release penalty |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
0.01 |
|
|
Exit and termination costs |
|
2.17 |
|
|
|
0.00 |
|
|
|
|
2.20 |
|
|
|
0.01 |
|
|
Non-cash stock-based compensation |
|
0.04 |
|
|
|
0.04 |
|
|
|
|
0.12 |
|
|
|
0.13 |
|
|
Deferred compensation plan |
|
0.03 |
|
|
|
(0.04 |
) |
|
|
|
0.04 |
|
|
|
(0.07 |
) |
|
Adjustment for rounding differences |
|
(0.02 |
) |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
Tax impact |
|
(0.42 |
) |
|
|
(0.19 |
) |
|
|
|
(0.37 |
) |
|
|
(0.13 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income
per diluted share, excluding certain
items, a non-GAAP
measure |
$ |
(0.05 |
) |
|
$ |
(0.07 |
) |
|
|
$ |
(0.11 |
) |
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
(loss) earnings per share, a non-GAAP
measure: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.05 |
) |
|
$ |
(0.07 |
) |
|
|
$ |
(0.11 |
) |
|
$ |
0.31 |
|
|
Diluted |
$ |
(0.05 |
) |
|
$ |
(0.07 |
) |
|
|
$ |
(0.11 |
) |
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
RECONCILIATION
OF CASH MARGIN PER MCFE,
a non-GAAP measure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands, except
per unit data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedSeptember 30, |
|
|
|
Nine Months
Ended September
30, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and oil sales, as reported |
$ |
381,553 |
|
|
$ |
474,754 |
|
|
|
$ |
1,162,907 |
|
|
$ |
1,709,987 |
|
|
Derivative fair value income (loss), as reported |
|
(124,690 |
) |
|
|
74,676 |
|
|
|
|
102,182 |
|
|
|
208,190 |
|
|
Less non-cash fair value (gain) loss |
|
210,504 |
|
|
|
5,332 |
|
|
|
|
203,061 |
|
|
|
(69,841 |
) |
|
Brokered natural gas and marketing and other, as reported |
|
42,482 |
|
|
|
73,015 |
|
|
|
|
104,722 |
|
|
|
303,834 |
|
|
Less ARO settlement and other (gains) losses |
|
(329 |
) |
|
|
(250 |
) |
|
|
|
(871 |
) |
|
|
(986 |
) |
|
Cash revenue applicable to production |
|
509,520 |
|
|
|
627,527 |
|
|
|
|
1,572,001 |
|
|
|
2,151,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating, as reported |
|
19,515 |
|
|
|
35,276 |
|
|
|
|
75,944 |
|
|
|
102,484 |
|
|
Less direct operating stock-based compensation |
|
74 |
|
|
|
(319 |
) |
|
|
|
(810 |
) |
|
|
(1,459 |
) |
|
Transportation, gathering and compression, as reported |
|
268,108 |
|
|
|
295,912 |
|
|
|
|
831,748 |
|
|
|
899,786 |
|
|
Production and ad valorem taxes, as reported |
|
6,106 |
|
|
|
7,805 |
|
|
|
|
20,682 |
|
|
|
29,004 |
|
|
Brokered natural gas and marketing, as reported |
|
47,967 |
|
|
|
79,938 |
|
|
|
|
118,752 |
|
|
|
313,360 |
|
|
Less brokered natural gas and marketing
stock-based
Compensation |
|
(324 |
) |
|
|
(522 |
) |
|
|
|
(905 |
) |
|
|
(1,523 |
) |
|
General and administrative, as reported |
|
38,153 |
|
|
|
41,047 |
|
|
|
|
118,695 |
|
|
|
138,316 |
|
|
Less G&A stock-based compensation |
|
(6,863 |
) |
|
|
(8,423 |
) |
|
|
|
(24,071 |
) |
|
|
(27,561 |
) |
|
Less lawsuit settlements |
|
(81 |
) |
|
|
(139 |
) |
|
|
|
(1,672 |
) |
|
|
(2,035 |
) |
|
Less rig release penalty |
|
— |
|
|
|
(1,436 |
) |
|
|
|
— |
|
|
|
(1,436 |
) |
|
Interest expense, as reported |
|
47,999 |
|
|
|
46,997 |
|
|
|
|
144,141 |
|
|
|
150,261 |
|
|
Less amortization of deferred financing costs |
|
(2,133 |
) |
|
|
(1,795 |
) |
|
|
|
(6,329 |
) |
|
|
(5,388 |
) |
|
Cash expenses |
|
418,521 |
|
|
|
494,341 |
|
|
|
|
1,276,175 |
|
|
|
1,593,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin, a non-GAAP
measure |
$ |
90,999 |
|
|
$ |
133,186 |
|
|
|
$ |
295,826 |
|
|
$ |
557,375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mmcfe produced during period |
|
201,874 |
|
|
|
206,426 |
|
|
|
|
624,388 |
|
|
|
617,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per
mcfe |
$ |
0.45 |
|
|
$ |
0.65 |
|
|
|
$ |
0.47 |
|
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION
OF INCOME (LOSS)
BEFORE INCOME TAXES TO CASH MARGIN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands, except
per unit data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedSeptember 30, |
|
|
|
Nine Months
Ended September
30, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income
before income taxes, as reported |
$ |
(785,299 |
) |
|
$ |
(74,800 |
) |
|
|
$ |
(779,955 |
) |
|
$ |
87,591 |
|
|
Adjustments to
reconcile (loss) income
before income taxes to
cash
margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARO settlements and other gains |
|
(329 |
) |
|
|
(250 |
) |
|
|
|
(871 |
) |
|
|
(986 |
) |
|
Derivative fair value loss (income) |
|
124,690 |
|
|
|
(74,676 |
) |
|
|
|
(102,182 |
) |
|
|
(208,190 |
) |
|
Net cash receipts on derivative settlements |
|
85,814 |
|
|
|
80,008 |
|
|
|
|
305,243 |
|
|
|
138,349 |
|
|
Exploration expense |
|
7,897 |
|
|
|
10,517 |
|
|
|
|
22,299 |
|
|
|
25,961 |
|
|
Lawsuit settlements |
|
81 |
|
|
|
139 |
|
|
|
|
1,672 |
|
|
|
2,035 |
|
|
Rig release penalty |
|
— |
|
|
|
1,436 |
|
|
|
|
— |
|
|
|
1,436 |
|
|
Exit and termination costs |
|
519,613 |
|
|
|
820 |
|
|
|
|
531,505 |
|
|
|
3,000 |
|
|
Deferred compensation plan |
|
6,237 |
|
|
|
(8,871 |
) |
|
|
|
10,287 |
|
|
|
(16,432 |
) |
|
Stock-based compensation (direct operating, brokered natural gas
and marketing, general and administrative and termination
costs) |
|
9,322 |
|
|
|
9,759 |
|
|
|
|
28,697 |
|
|
|
31,940 |
|
|
Interest – amortization of deferred financing costs |
|
2,133 |
|
|
|
1,795 |
|
|
|
|
6,329 |
|
|
|
5,388 |
|
|
Depletion, depreciation and amortization |
|
96,167 |
|
|
|
137,751 |
|
|
|
|
303,779 |
|
|
|
417,974 |
|
|
Loss (gain) on sale of assets |
|
9,230 |
|
|
|
36,341 |
|
|
|
|
(112,443 |
) |
|
|
30,663 |
|
|
Loss (gain) on early extinguishment of debt |
|
7,821 |
|
|
|
(2,985 |
) |
|
|
|
(14,093 |
) |
|
|
(2,985 |
) |
|
Impairment of proved property and other assets |
|
1,955 |
|
|
|
— |
|
|
|
|
78,955 |
|
|
|
— |
|
|
Abandonment and impairment of unproved properties |
|
5,667 |
|
|
|
16,202 |
|
|
|
|
16,604 |
|
|
|
41,631 |
|
|
Cash margin, a non-GAAP
measure |
$ |
90,999 |
|
|
$ |
133,186 |
|
|
|
$ |
295,826 |
|
|
$ |
557,375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
HEDGING POSITION AS OF September 30, 2020 –
(Unaudited)
|
|
|
|
Daily Volume |
|
|
|
Hedge Price |
|
|
Gas 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 2020 Collar |
|
|
20,000 Mmbtu |
|
|
|
$2.00 x $2.50 |
|
|
4Q 2020 3-way Collar |
|
|
79,891 Mmbtu |
|
|
|
$2.23 / $2.58 x $3.19 |
|
|
4Q 2020 Swaps |
|
|
1,133,587 Mmbtu |
|
|
|
$2.63 |
|
|
|
|
|
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2021 Collars |
|
|
285,041 Mmbtu |
|
|
|
$2.51 x $3.00 |
|
|
2021 3-way Collars |
|
|
240,000 Mmbtu |
|
|
|
$1.99 / $2.33 x $2.60 |
|
|
2021 Swaps |
|
|
510,000 Mmbtu |
|
|
|
$2.78 |
|
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Oil |
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4Q 2020 Swaps |
|
|
6,000 bbls |
|
|
|
$58.02 |
|
|
|
|
|
|
|
|
|
|
|
|
2021 Swaps |
|
|
1,000 bbls |
|
|
|
$55.00 |
|
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C3
Propane |
|
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|
|
|
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|
4Q 2020 Swaps |
|
|
2,022 bbls |
|
|
|
$0.514/gallon |
|
|
|
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|
nC4
Butane |
|
|
|
|
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|
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|
4Q 2020 Swaps |
|
|
663 bbls |
|
|
|
$0.602/gallon |
|
|
|
|
|
|
|
|
|
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|
C5 Natural
Gasoline |
|
|
|
|
|
|
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|
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|
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|
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|
4Q 2020 Swaps |
|
|
1,326 bbls |
|
|
|
$0.885/gallon |
|
(1) Range sold
natural gas call swaptions of 140,000 Mmbtu/d for calendar 2021 and
280,000 Mmbru/d for calendar 2022 at an average strike price of
$2.875 per Mmbtu and $2.81 per Mmbtu, respectively.
SEE WEBSITE FOR OTHER SUPPLEMENTAL
INFORMATION FOR THE PERIODSAND ADDITIONAL HEDGING
DETAILS
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