RANGE RESOURCES CORPORATION (NYSE: RRC) today
announced its first quarter 2021 financial results.
Highlights –
- Realizations before index hedges of
$3.20 per mcfe, or approximately $0.51 above NYMEX natural gas
- Pre-hedge NGL realization of $26.35
per barrel, highest since late 2018
- NGL differential of $1.52 per
barrel above Mont Belvieu, best in Company history
- Natural gas differentials,
including basis hedging, averaged $0.14 per mcf below NYMEX
- Production averaged 2,081 Mmcfe per
day, approximately 70% natural gas
- All-in first quarter capital
spending was $105 million, approximately 25% of the
annual budget
- Approximately 45% of pre-hedge
revenue from liquids sales
- In March, Range’s $3.0 billion
borrowing base and $2.4 billion elected commitment were
reaffirmed
- In April, Range redeemed
approximately $63.3 million of senior notes and senior subordinated
notes due between 2021 and 2023
Commenting on the quarter, Jeff Ventura, the
Company’s CEO said, “Range continues to make progress on key
near-term objectives: improving margins with a focus on cost
structure, generating free cash flow, enhancing liquidity, and
operating safely while maintaining peer-leading capital efficiency.
There were sizable improvements in pricing quarter-over-quarter
leading to Range’s $193 million in cash flow from operations before
changes in working capital. The corresponding capital spending of
$105 million generated solid free cash flow for the quarter.
Range remains committed to disciplined capital
spending and generating sustainable free cash flow. Over time, we
believe Range will be differentiated as a result of our low
sustaining capital, competitive cost structure, marketing
strategies, environmental leadership and importantly, our
multi-decade core inventory life, which will be an increasing
competitive advantage in the years to come.”
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, stock-based 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.
First Quarter 2021
GAAP revenues for first quarter 2021
totaled $626 million, GAAP net cash provided from operating
activities (including changes in working capital) was $109
million, and GAAP net income was $27 million ($0.11 per
diluted share). First quarter earnings results include a $58
million derivative fair value loss due to increases in
commodity prices.
Non-GAAP revenues for first quarter 2021
totaled $645 million, and cash flow from operations before
changes in working capital, a non-GAAP measure, was $193
million. Adjusted net income comparable to analysts’
estimates, a non-GAAP measure, was $73 million ($0.30 per
diluted share) in first quarter 2021.
The following table details Range’s average
production and realized pricing for first quarter 2021(a):
|
1Q21 Production & Realized Pricing |
|
|
Natural Gas(Mcf) |
|
Oil (Bbl) |
|
NGLs(Bbl) |
|
Natural GasEquivalent (Mcfe) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Production per day |
|
|
1,448,097 |
|
|
|
8,422 |
|
|
|
97,144 |
|
|
|
2,081,493 |
|
|
|
|
|
|
|
|
|
|
Average index price(b) |
|
$ |
2.69 |
|
|
$ |
58.06 |
|
|
$ |
24.83 |
|
|
|
|
|
Differential |
|
|
(0.11 |
) |
|
|
(9.06 |
) |
|
|
1.52 |
|
|
|
|
|
Basis hedging |
|
|
(0.03 |
) |
|
|
- |
|
|
|
- |
|
|
|
|
|
Realized prices before index
hedges |
|
$ |
2.55 |
|
|
$ |
49.00 |
|
|
$ |
26.35 |
|
|
$ |
3.20 |
|
Settled index hedges |
|
|
0.02 |
|
|
|
(9.40 |
) |
|
|
(3.54 |
) |
|
|
(0.19 |
) |
Average realized prices after
hedges |
|
$ |
2.57 |
|
|
$ |
39.59 |
|
|
$ |
22.82 |
|
|
$ |
3.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) May not
add due to rounding |
(b) Indexes
include NYMEX-Henry Hub, NYMEX-WTI and OPIS-Mont Belvieu for
natural gas, oil and NGLs, respectively |
|
Total production for first quarter 2021 averaged
approximately 2,081 net Mmcfe per day. By area, southwest Marcellus
production averaged 2.0 Bcfe per day while the northeast Marcellus
assets averaged 77 net Mmcf per day during the quarter.
First quarter 2021 natural gas, NGLs and oil
price realizations (including the impact of cash-settled hedges and
derivative settlements which correspond to analysts’ estimates)
averaged $3.01 per mcfe.
- The average natural gas price,
including the impact of basis hedging, was $2.55 per mcf, or a
($0.14) per mcf differential to NYMEX. The first quarter natural
gas differential includes the benefit of improved regional basis
and positive impact of higher daily prices in February. The
Company’s average 2021 natural gas differential to NYMEX remains
within an expected range of ($0.30) to ($0.40) per mcf.
- Pre-hedge NGL realizations were
$26.35 per barrel, an improvement of $8.33 per barrel versus the
fourth quarter of 2020 driven by an improving market for propane
and heavier products. At a $1.52 premium over Mont Belvieu
equivalent, the first quarter premium was the best in Company
history. Range continues to see strong NGL export premiums at
Marcus Hook because of the Company’s access to international
markets and diversified portfolio of sales agreements. As a result
of these improvements, the Company expects to average a pre-hedge
premium differential to Mont Belvieu equivalent of $0.50 - $2.00
per barrel for 2021.
- Crude oil and condensate price
realizations, before realized hedges, averaged $49.00 per barrel,
or $9.06 below WTI (West Texas Intermediate). Range expects an
improving condensate differential to WTI during 2021, between $7-$9
below NYMEX, as regional production continues to decline and demand
for transportation fuels recovers.
The following table details Range’s unit costs
per mcfe(a):
Expenses |
|
1Q 2021($/Mcfe) |
|
|
1Q 2020 ($/Mcfe) |
|
|
Increase (Decrease) |
|
|
|
|
|
|
|
|
|
Direct operating(a) |
$ |
0.09 |
|
$ |
0.15 |
|
|
(40%) |
Transportation, gathering, processing and compression |
|
1.46 |
|
|
1.36 |
|
|
7% |
Production and ad valorem
taxes |
|
0.02 |
|
|
0.04 |
|
|
(50%) |
General and
administrative(a) |
|
0.15 |
|
|
0.16 |
|
|
(6%) |
Interest expense(a) |
|
0.29 |
|
|
0.22 |
|
|
32% |
Total cash unit costs(b) |
|
2.02 |
|
|
1.93 |
|
|
5% |
Depletion, depreciation and amortization (DD&A) |
|
0.47 |
|
|
0.49 |
|
|
(4%) |
Total unit costs plus DD&A(b) |
$ |
2.50 |
|
$ |
2.43 |
|
|
3% |
|
|
|
|
|
|
|
|
|
(a) Excludes
stock-based compensation, legal settlements and amortization of
deferred financing costs. |
(b) May not
add due to rounding. |
|
Capital Expenditures
First quarter 2021 drilling and completion
expenditures were $97.1 million. In addition, during the quarter,
$6.4 million was invested on acreage leasehold and $1.9 million on
gathering systems and other. First quarter investments represent
approximately 25% of Range’s total capital budget of $425 million
in 2021.
Financial Position
In
January 2021, Range issued $600.0 million aggregate principal
amount of 8.25% senior notes due 2029 and used net proceeds to
repay borrowings under its bank credit facility. In April 2021,
Range redeemed outstanding principal amounts of senior notes due in
2021 and 2022 totaling approximately $26.0 million and senior
subordinated notes due in 2021, 2022 and 2023 totaling
approximately $37.3 million. Proforma the April redemptions, Range
has approximately $218 million in notes that mature through 2022,
which are expected to be redeemed via free cash flow at current
strip pricing.
Range’s $3.0 billion borrowing base
and $2.4 billion commitment amount were reaffirmed during
first quarter 2021 with no changes to financial covenants.
The credit facility matures on April 13, 2023 and is
subject to semi-annual redeterminations. As of March 31, 2021,
Range had total debt outstanding of $3.1 billion, consisting
of $124 million in bank debt, $3.0 billion in senior
notes and $37 million in senior subordinated notes. The
Company had over $1.9 billion of borrowing capacity under the
current commitment amount at the end of the first quarter.
Operational Activity
The table below summarizes estimated activity
for 2021 regarding the number of wells to sales for each area.
|
|
|
Wells TIL1Q 2021 |
|
Calendar 2021Planned TIL |
|
Remaining2021 |
SW PA Super-Rich |
|
|
6 |
|
17 |
|
11 |
SW PA Wet |
|
|
3 |
|
18 |
|
15 |
SW PA Dry |
|
|
7 |
|
24 |
|
17 |
Total Wells |
|
|
16 |
|
59 |
|
43 |
NGL Marketing and
Transportation
Range’s liquids marketing continued to expand
premiums relative to Mont Belvieu pricing, with first quarter NGL
realizations averaging a $1.52 premium per barrel, a best in
Company history. The portfolio of domestic and international
ethane contracts performed very well during the quarter and
generated a significant uplift relative to Mont Belvieu while
propane and butane markets benefited from an increase in Marcus
Hook export premiums and a supportive macro environment.
Starting April 2021, Range will have an
additional 5,000 barrels per day of Mariner East capacity, which is
expected to be fully utilized with existing production. In
addition, Range has secured new and diverse LPG export-related
contracts. These contracts add flexibility, reduce costs, and
further enhance realized propane and butane prices, and continue
the momentum of achieving strong export premiums. Range
expects near-term and long-term benefits of NGL exports out of the
Northeast as international demand for NGL products continues to
grow. NGL exports out of Marcus Hook provide Range a unique supply
option for that demand. In 2021, Range expects to export over 80%
of its propane and butane, the highest percentage of propane and
butane exported by any U.S. independent, leading to strong
year-over-year improvements in NGL pricing and margins. Higher
realized NGL prices for Range in 2021 will lead to a slight
increase in processing costs as Range’s processing costs are based
on the NGL revenue received, providing a partial hedge against NGL
price fluctuations.
Including the impact of basis hedging, Range had
a natural gas differential of ($0.14) per mcf during the first
quarter. The Company’s transportation portfolio provides access to
natural gas markets in the Gulf Coast, Midwest, and Northeast, with
each region benefiting from strong daily sales prices in February.
This revenue uplift was partially offset by higher natural gas fuel
cost during the quarter which is reflected in transportation,
gathering, processing and compression expense. Range remains on
track with its natural gas differential to NYMEX guidance of
($0.30) - ($0.40) for the year.
Guidance – 2021
Capital & Production Guidance
Range’s 2021 all-in capital budget is $425
million. Production for full-year 2021 is expected to average
approximately 2.15 Bcfe per day, with ~30% attributed to liquids
production.
Full Year 2021 Expense Guidance
Direct operating expense: |
$0.09 - $0.11 per mcfe |
Transportation, gathering, processing and compression expense: |
$1.35 - $1.40 per mcfe |
Production tax expense: |
$0.02 - $0.04 per mcfe |
Exploration expense: |
$20.0 - $28.0 million |
G&A expense: |
$0.15 - $0.16 per mcfe |
Interest expense: |
$0.26 - $0.28 per mcfe |
DD&A expense: |
$0.47 - $0.50 per mcfe |
Net brokered gas marketing
expense: |
$2.0 - $10.0 million |
Full Year 2021 Price Guidance
Based on current market indications, Range expects to average
the following price differentials for its production in 2021.
Natural Gas:(1) |
NYMEX minus $0.30 to $0.40 |
Natural Gas Liquids (including
ethane):(2) |
Mont Belvieu plus $0.50 to $2.00 per barrel |
Oil/Condensate: |
WTI minus $7.00 to $9.00 |
(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 volumes to increase the predictability of cash flow and
to help maintain a strong, flexible financial position. As of April
16, 2021, Range had approximately 70% of its remaining expected
2021 natural gas production hedged at an average ceiling price of
$2.79 per Mmbtu and an average floor price of $2.60 per Mmbtu.
Similarly, Range hedged approximately 70% of its remaining
estimated 2021 crude oil production at an average floor price of
$52.00 per barrel and approximately 20% of its remaining expected
2021 NGL revenue. Please see the detailed hedging schedule posted
on the Range website under Investor Relations - Financial
Information.
Range has also hedged Marcellus and other basis
for natural gas and NGL exports to limit volatility between
benchmarks and regional prices. The combined fair value of the
natural gas basis, NGL freight and spread hedges as of March 31,
2021 was a net gain of $10 million.
Conference Call Information
A conference call to review the financial results is scheduled
on Tuesday, April 27 at 9:00 a.m. ET. To participate in the call,
please dial (877) 928-8777 and provide conference code 3782655
about 10 minutes prior to the scheduled start time.
A simultaneous webcast of the call may be accessed at
www.rangeresources.com. The webcast will be archived for replay on
the Company's website until May 27.
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 on stacked-pay projects in
the Appalachian Basin. The Company is headquartered
in Fort Worth, Texas. More information about Range can
be found at www.rangeresources.com.
Included within this release are certain
“forward-looking statements” within the meaning of the federal
securities laws, including the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, that are not
limited to historical facts, but reflect Range’s current beliefs,
expectations or intentions regarding future events. Words
such as “may,” “will,” “could,” “should,” “expect,” “plan,”
“project,” “intend,” “anticipate,” “believe,” “outlook”,
“estimate,” “predict,” “potential,” “pursue,” “target,” “continue,”
and similar expressions are intended to identify such
forward-looking statements.
All statements, except for statements of
historical fact, made within regarding activities, events or
developments the Company expects, believes or anticipates will or
may occur in the future, such as those regarding future well costs,
expected asset sales, well productivity, future liquidity and
financial resilience, anticipated exports and related financial
impact, NGL market supply and demand, 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.
Range Investor Contacts:
Laith Sando, Vice President – Investor
Relations817-869-4267lsando@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 March 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
% |
|
Revenues and other income: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGLs and oil sales (a) |
$ |
603,347 |
|
|
$ |
432,096 |
|
|
|
|
|
Derivative fair value income |
|
(57,879 |
) |
|
|
233,175 |
|
|
|
|
|
Brokered natural gas, marketing and other (b) |
|
80,502 |
|
|
|
28,389 |
|
|
|
|
|
ARO settlement gain (b) |
|
1 |
|
|
|
— |
|
|
|
|
|
Other (b) |
|
61 |
|
|
|
260 |
|
|
|
|
|
Total revenues and other income |
|
626,032 |
|
|
|
693,920 |
|
|
|
-10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Direct operating |
|
17,323 |
|
|
|
31,585 |
|
|
|
|
|
Direct operating – stock-based compensation (c) |
|
327 |
|
|
|
450 |
|
|
|
|
|
Transportation, gathering, processing and compression |
|
274,330 |
|
|
|
284,765 |
|
|
|
|
|
Production and ad valorem taxes |
|
4,625 |
|
|
|
9,019 |
|
|
|
|
|
Brokered natural gas and marketing |
|
71,885 |
|
|
|
32,211 |
|
|
|
|
|
Brokered natural gas and marketing – non-cash
stock-based compensation (c) |
|
450 |
|
|
|
413 |
|
|
|
|
|
Exploration |
|
5,152 |
|
|
|
6,747 |
|
|
|
|
|
Exploration – stock-based compensation (c) |
|
386 |
|
|
|
330 |
|
|
|
|
|
Abandonment and impairment of unproved properties |
|
3,029 |
|
|
|
5,413 |
|
|
|
|
|
General and administrative |
|
28,160 |
|
|
|
33,010 |
|
|
|
|
|
General and administrative – stock-based
compensation (c) |
|
9,405 |
|
|
|
8,029 |
|
|
|
|
|
General and administrative – lawsuit settlements |
|
439 |
|
|
|
815 |
|
|
|
|
|
General and administrative – bad debt expense |
|
— |
|
|
|
400 |
|
|
|
|
|
Exit and termination costs |
|
13,714 |
|
|
|
1,595 |
|
|
|
|
|
Deferred compensation plan (d) |
|
19,811 |
|
|
|
(8,537 |
) |
|
|
|
|
Interest expense |
|
54,591 |
|
|
|
45,457 |
|
|
|
|
|
Interest expense – amortization of deferred financing costs
(e) |
|
2,287 |
|
|
|
2,061 |
|
|
|
|
|
Gain on early extinguishment of debt |
|
35 |
|
|
|
(12,923 |
) |
|
|
|
|
Depletion, depreciation and amortization |
|
88,383 |
|
|
|
102,986 |
|
|
|
|
|
Impairment of proved property |
|
— |
|
|
|
77,000 |
|
|
|
|
|
Loss (gain) on sale of assets |
|
1,860 |
|
|
|
(122,099 |
) |
|
|
|
|
Total costs and expenses |
|
596,192 |
|
|
|
498,727 |
|
|
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
29,840 |
|
|
|
195,193 |
|
|
|
-85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit): |
|
|
|
|
|
|
|
|
|
|
|
Current |
|
168 |
|
|
|
(363 |
) |
|
|
|
|
Deferred |
|
2,521 |
|
|
|
29,361 |
|
|
|
|
|
|
|
2,689 |
|
|
|
28,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
27,151 |
|
|
$ |
166,195 |
|
|
|
-84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Common
Share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.11 |
|
|
$ |
0.67 |
|
|
|
|
|
Diluted |
$ |
0.11 |
|
|
$ |
0.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding, as reported: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
242,159 |
|
|
|
246,218 |
|
|
|
-2 |
% |
Diluted |
|
247,527 |
|
|
|
247,684 |
|
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
See separate natural gas, NGLs and oil sales information
table. |
(b) |
Included in Brokered natural gas, marketing and other revenues
in the 10-Q. |
(c) |
Costs associated with stock compensation and restricted stock
amortization, which have been reflected in the categories
associated with the direct personnel costs, which are combined with
the cash costs in the 10-Q. |
(d) |
Reflects the change in market value of the vested Company stock
held in the deferred compensation plan. |
(e) |
Included in interest expense in the 10-Q. |
RANGE RESOURCES CORPORATION
BALANCE SHEETS |
|
|
|
|
|
|
|
(In thousands) |
|
March 31, |
|
|
|
December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(Unaudited) |
|
|
|
(Audited) |
|
Assets |
|
|
|
|
|
|
|
Current assets |
$ |
300,521 |
|
|
$ |
266,508 |
|
Derivative assets |
|
29,353 |
|
|
|
40,012 |
|
Natural gas and oil properties, successful efforts method |
|
5,703,095 |
|
|
|
5,686,809 |
|
Transportation and field assets |
|
4,137 |
|
|
|
4,161 |
|
Operating lease right-of-use assets |
|
58,199 |
|
|
|
63,581 |
|
Other |
|
79,355 |
|
|
|
75,865 |
|
|
$ |
6,174,660 |
|
|
$ |
6,136,936 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’
Equity |
|
|
|
|
|
|
|
Current liabilities |
$ |
650,426 |
|
|
$ |
673,445 |
|
Asset retirement obligations |
|
6,689 |
|
|
|
6,689 |
|
Derivative liabilities |
|
38,319 |
|
|
|
26,707 |
|
|
|
|
|
|
|
|
|
Bank debt |
|
116,074 |
|
|
|
693,123 |
|
Senior notes |
|
2,921,750 |
|
|
|
2,329,745 |
|
Senior subordinated notes |
|
17,393 |
|
|
|
17,384 |
|
Total debt |
|
3,055,217 |
|
|
|
3,040,252 |
|
|
|
|
|
|
|
|
|
Deferred tax liability |
|
137,810 |
|
|
|
135,267 |
|
Derivative liabilities |
|
5,959 |
|
|
|
9,746 |
|
Deferred compensation liability |
|
107,001 |
|
|
|
81,481 |
|
Operating lease liabilities |
|
38,026 |
|
|
|
43,155 |
|
Asset retirement obligations and other liabilities |
|
87,549 |
|
|
|
91,157 |
|
Divestiture contract obligation |
|
383,816 |
|
|
|
391,502 |
|
|
|
|
|
|
|
|
|
Common stock and retained earnings |
|
1,694,342 |
|
|
|
1,668,146 |
|
Other comprehensive loss |
|
(409 |
) |
|
|
(479 |
) |
Common stock held in treasury stock |
|
(30,085 |
) |
|
|
(30,132 |
) |
Total stockholders’ equity |
|
1,663,848 |
|
|
|
1,637,535 |
|
|
$ |
6,174,660 |
|
|
$ |
6,136,936 |
|
RECONCILIATION OF TOTAL
REVENUES AND OTHER INCOME TO TOTAL REVENUE EXCLUDING CERTAIN ITEMS,
a non-GAAP measure |
|
(Unaudited, in thousands) |
|
|
Three Months Ended March 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and other income,
as reported |
$ |
626,032 |
|
|
$ |
693,920 |
|
|
|
-10 |
% |
Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
Total change in fair value related to derivatives prior to
settlement loss (gain) |
|
18,484 |
|
|
|
(133,246 |
) |
|
|
|
|
ARO settlement (gain) loss |
|
(1 |
) |
|
|
— |
|
|
|
|
|
Total revenues, as adjusted,
non-GAAP |
$ |
644,515 |
|
|
$ |
560,674 |
|
|
|
15 |
% |
RANGE RESOURCES CORPORATION
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
(Unaudited in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
27,151 |
|
|
$ |
166,195 |
|
Adjustments to reconcile net
cash provided from continuing operations: |
|
|
|
|
|
|
|
Deferred income tax expense |
|
2,521 |
|
|
|
29,361 |
|
Depletion, depreciation, amortization and impairment |
|
88,383 |
|
|
|
179,986 |
|
Abandonment and impairment of unproved properties |
|
3,029 |
|
|
|
5,413 |
|
Derivative fair value loss (income) |
|
57,879 |
|
|
|
(233,175 |
) |
Cash (payments) settlements on derivative financial
instruments |
|
(39,395 |
) |
|
|
99,929 |
|
Divestiture contract obligation |
|
12,995 |
|
|
|
— |
|
Allowance for bad debts |
|
— |
|
|
|
400 |
|
Amortization of deferred issuance costs and other |
|
2,081 |
|
|
|
1,657 |
|
Deferred and stock-based compensation |
|
30,054 |
|
|
|
476 |
|
Loss (gain) on sale of assets and other |
|
1,860 |
|
|
|
(122,099 |
) |
Loss (gain) on early extinguishment of debt |
|
35 |
|
|
|
(12,923 |
) |
|
|
|
|
|
|
|
|
Changes in working capital: |
|
|
|
|
|
|
|
Accounts receivable |
|
(33,146 |
) |
|
|
84,345 |
|
Inventory and other |
|
122 |
|
|
|
(4,432 |
) |
Accounts payable |
|
34,418 |
|
|
|
18,660 |
|
Accrued liabilities and other |
|
(78,735 |
) |
|
|
(89,287 |
) |
Net changes in working capital |
|
(77,341 |
) |
|
|
9,286 |
|
Net cash provided from operating activities |
$ |
109,252 |
|
|
$ |
124,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 March 31, |
|
|
2021 |
|
|
|
2020 |
|
Net cash provided from operating
activities, as reported |
$ |
109,252 |
|
|
$ |
124,506 |
|
Net changes in working capital |
|
77,341 |
|
|
|
(9,286 |
) |
Exploration expense |
|
5,152 |
|
|
|
6,747 |
|
Lawsuit settlements |
|
439 |
|
|
|
815 |
|
Exit and termination costs – severance costs only |
|
— |
|
|
|
1,595 |
|
Non-cash compensation adjustment |
|
1,249 |
|
|
|
613 |
|
Cash flow from operations
before changes in working capital – non-GAAP measure |
$ |
193,433 |
|
|
$ |
124,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED WEIGHTED AVERAGE
SHARES OUTSTANDING |
|
|
|
|
|
|
|
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2021 |
|
|
|
2020 |
|
Basic: |
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
248,306 |
|
|
|
249,409 |
|
Stock held by deferred
compensation plan |
|
(6,147 |
) |
|
|
(3,191 |
) |
Adjusted basic |
|
242,159 |
|
|
|
246,218 |
|
|
|
|
|
|
|
|
|
Dilutive: |
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
248,306 |
|
|
|
249,409 |
|
Dilutive stock options under
treasury method |
|
(779 |
) |
|
|
(1,725 |
) |
Adjusted dilutive |
|
247,527 |
|
|
|
247,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 March 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
% |
|
Natural gas, NGL and oil sales
components: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
335,801 |
|
|
$ |
253,249 |
|
|
|
|
|
NGL sales |
|
230,408 |
|
|
|
143,239 |
|
|
|
|
|
Oil sales |
|
37,138 |
|
|
|
35,608 |
|
|
|
|
|
Total oil and gas sales, as
reported |
$ |
603,347 |
|
|
$ |
432,096 |
|
|
|
40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Derivative fair value (loss)
income, as reported: |
$ |
(57,879 |
) |
|
$ |
233,175 |
|
|
|
|
|
Cash settlements on derivative
financial instruments – loss (gain): |
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
|
1,348 |
|
|
|
(80,172 |
) |
|
|
|
|
NGLs |
|
30,919 |
|
|
|
(10,043 |
) |
|
|
|
|
Crude Oil |
|
7,128 |
|
|
|
(9,714 |
) |
|
|
|
|
Total change in fair value related to derivatives prior to
settlement, anon-GAAP measure |
$ |
(18,484 |
) |
|
$ |
133,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering,
processing and compression components: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
$ |
161,660 |
|
|
$ |
169,841 |
|
|
|
|
|
NGLs |
|
112,670 |
|
|
|
114,924 |
|
|
|
|
|
Total transportation,
gathering, processing and compression, as reported |
$ |
274,330 |
|
|
$ |
284,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and oil sales,
including cash-settled derivatives: (c) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
334,453 |
|
|
$ |
333,421 |
|
|
|
|
|
NGL sales |
|
199,489 |
|
|
|
153,282 |
|
|
|
|
|
Oil sales |
|
30,010 |
|
|
|
45,322 |
|
|
|
|
|
Total |
$ |
563,952 |
|
|
$ |
532,025 |
|
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas during
the periods (a): |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
130,328,741 |
|
|
|
145,760,592 |
|
|
|
-11 |
% |
NGL (bbl) |
|
8,742,944 |
|
|
|
9,633,035 |
|
|
|
-9 |
% |
Oil (bbl) |
|
757,991 |
|
|
|
868,297 |
|
|
|
-13 |
% |
Gas equivalent (mcfe) (b) |
|
187,334,351 |
|
|
|
208,768,584 |
|
|
|
-10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas –
average per day (a): |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
1,448,097 |
|
|
|
1,601,765 |
|
|
|
-10 |
% |
NGL (bbl) |
|
97,144 |
|
|
|
105,858 |
|
|
|
-8 |
% |
Oil (bbl) |
|
8,422 |
|
|
|
9,542 |
|
|
|
-12 |
% |
Gas equivalent (mcfe) (b) |
|
2,081,493 |
|
|
|
2,294,160 |
|
|
|
-9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, excluding derivative settlements and before third
party transportation costs: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
2.58 |
|
|
$ |
1.74 |
|
|
|
48 |
% |
NGL (bbl) |
$ |
26.35 |
|
|
$ |
14.87 |
|
|
|
77 |
% |
Oil (bbl) |
$ |
49.00 |
|
|
$ |
41.01 |
|
|
|
19 |
% |
Gas equivalent (mcfe) (b) |
$ |
3.22 |
|
|
$ |
2.07 |
|
|
|
56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including derivative settlements before third party
transportation costs: (c) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
2.57 |
|
|
$ |
2.29 |
|
|
|
12 |
% |
NGL (bbl) |
$ |
22.82 |
|
|
$ |
15.91 |
|
|
|
43 |
% |
Oil (bbl) |
$ |
39.59 |
|
|
$ |
52.20 |
|
|
|
-24 |
% |
Gas equivalent (mcfe) (b) |
$ |
3.01 |
|
|
$ |
2.55 |
|
|
|
18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including
derivative settlements and after third party transportation costs:
(d) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
1.33 |
|
|
$ |
1.12 |
|
|
|
18 |
% |
NGL (bbl) |
$ |
9.93 |
|
|
$ |
3.98 |
|
|
|
149 |
% |
Oil (bbl) |
$ |
39.59 |
|
|
$ |
52.20 |
|
|
|
-24 |
% |
Gas equivalent (mcfe) (b) |
$ |
1.55 |
|
|
$ |
1.18 |
|
|
|
31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering and
compression expense per mcfe |
$ |
1.46 |
|
|
$ |
1.36 |
|
|
|
7 |
% |
|
|
(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 March 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations before
income taxes, as reported |
$ |
29,840 |
|
|
$ |
195,193 |
|
|
|
(85 |
%) |
Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on sale of assets |
|
1,860 |
|
|
|
(122,099 |
) |
|
|
|
|
Gain on ARO settlements |
|
(1 |
) |
|
|
— |
|
|
|
|
|
Change in fair value related to derivatives prior to
settlement |
|
18,484 |
|
|
|
(133,246 |
) |
|
|
|
|
Abandonment and impairment of unproved properties |
|
3,029 |
|
|
|
5,413 |
|
|
|
|
|
Loss (gain) on early extinguishment of debt |
|
35 |
|
|
|
(12,923 |
) |
|
|
|
|
Impairment of proved property and other assets |
|
— |
|
|
|
77,000 |
|
|
|
|
|
Lawsuit settlements |
|
439 |
|
|
|
815 |
|
|
|
|
|
Exit and termination costs |
|
13,714 |
|
|
|
1,595 |
|
|
|
|
|
Brokered natural gas and marketing – non-cash
stock-basedcompensation |
|
450 |
|
|
|
413 |
|
|
|
|
|
Direct operating – non-cash stock-based compensation |
|
327 |
|
|
|
450 |
|
|
|
|
|
Exploration expenses – non-cash stock-based compensation |
|
386 |
|
|
|
330 |
|
|
|
|
|
General & administrative – non-cash stock-based
compensation |
|
9,405 |
|
|
|
8,029 |
|
|
|
|
|
Deferred compensation plan – non-cash adjustment |
|
19,811 |
|
|
|
(8,537 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes, as
adjusted |
|
97,779 |
|
|
|
12,433 |
|
|
|
686 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit), as
adjusted |
|
|
|
|
|
|
|
|
|
|
|
Current |
|
168 |
|
|
|
(363 |
) |
|
|
|
|
Deferred (a) |
|
24,445 |
|
|
|
3,108 |
|
|
|
|
|
Net income excluding certain
items, a non-GAAP measure |
$ |
73,166 |
|
|
$ |
9,688 |
|
|
|
655 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income per common
share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.30 |
|
|
$ |
0.04 |
|
|
|
650 |
% |
Diluted |
$ |
0.30 |
|
|
$ |
0.04 |
|
|
|
650 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted shares
outstanding, if dilutive |
|
247,527 |
|
|
|
247,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Deferred taxes are estimated to be approximately 25% for
2021 and 2020.
RANGE RESOURCES CORPORATION
RECONCILIATION OF NET INCOME,
EXCLUDINGCERTAIN ITEMS AND ADJUSTED EARNINGS PER
SHARE, non-GAAP measures |
|
|
|
|
|
|
|
(In thousands, except per share
data) |
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
Net income, as
reported |
$ |
27,151 |
|
|
$ |
166,195 |
|
Adjustment for certain
special items: |
|
|
|
|
|
|
|
Loss (gain) on sale of assets |
|
1,860 |
|
|
|
(122,099 |
) |
(Gain) loss on ARO settlements |
|
(1 |
) |
|
|
— |
|
Loss (gain) on early extinguishment of debt |
|
35 |
|
|
|
(12,923 |
) |
Change in fair value related to derivatives prior to
settlement |
|
18,484 |
|
|
|
(133,246 |
) |
Impairment of proved property |
|
— |
|
|
|
77,000 |
|
Abandonment and impairment of unproved properties |
|
3,029 |
|
|
|
5,413 |
|
Lawsuit settlements |
|
439 |
|
|
|
815 |
|
Exit and termination costs |
|
13,714 |
|
|
|
1,595 |
|
Non-cash stock-based compensation |
|
10,568 |
|
|
|
9,222 |
|
Deferred compensation plan |
|
19,811 |
|
|
|
(8,537 |
) |
Tax impact |
|
(21,924 |
) |
|
|
26,253 |
|
|
|
|
|
|
|
|
|
Net income excluding
certain items, a non-GAAP measure |
$ |
73,166 |
|
|
$ |
9,688 |
|
|
|
|
|
|
|
|
|
Net income per diluted
share, as reported |
$ |
0.11 |
|
|
$ |
0.66 |
|
Adjustment for certain
special items per diluted share: |
|
|
|
|
|
|
|
Loss (gain) on sale of assets |
|
0.01 |
|
|
|
(0.49 |
) |
(Gain) loss on ARO settlements |
|
(0.00 |
) |
|
|
— |
|
Loss (gain) on early extinguishment of debt |
|
0.00 |
|
|
|
(0.05 |
) |
Change in fair value related to derivatives prior to
settlement |
|
0.07 |
|
|
|
(0.54 |
) |
Impairment of proved property and other assets |
|
— |
|
|
|
0.31 |
|
Abandonment and impairment of unproved properties |
|
0.01 |
|
|
|
0.02 |
|
Lawsuit settlements |
|
0.00 |
|
|
|
0.00 |
|
Exit and termination costs |
|
0.06 |
|
|
|
0.01 |
|
Non-cash stock-based compensation |
|
0.04 |
|
|
|
0.04 |
|
Deferred compensation plan |
|
0.08 |
|
|
|
(0.03 |
) |
Adjustment for rounding differences |
|
0.01 |
|
|
|
0.00 |
|
Tax impact |
|
(0.09 |
) |
|
|
0.11 |
|
|
|
|
|
|
|
|
|
Net income per diluted
share, excluding certain items, a
non- GAAP
measure |
$ |
0.30 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share, a non-GAAP measure: |
|
|
|
|
|
|
|
Basic |
$ |
0.30 |
|
|
$ |
0.04 |
|
Diluted |
$ |
0.30 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
RECONCILIATION OF CASH MARGIN PER MCFE, a non-GAAP
measure |
|
|
|
|
|
|
|
(Unaudited, in thousands, except
per unit data) |
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
Natural gas, NGL and oil sales, as reported |
$ |
603,347 |
|
|
$ |
432,096 |
|
Derivative fair value (loss) income, as reported |
|
(57,879 |
) |
|
|
233,175 |
|
Less non-cash fair value loss (gain) |
|
18,484 |
|
|
|
(133,246 |
) |
Brokered natural gas and marketing and other, as reported |
|
80,564 |
|
|
|
28,649 |
|
Less ARO settlement and other (gains) losses |
|
(62 |
) |
|
|
(260 |
) |
Cash revenue applicable to production |
|
644,454 |
|
|
|
560,414 |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Direct operating, as reported |
|
17,650 |
|
|
|
32,035 |
|
Less direct operating stock-based compensation |
|
(327 |
) |
|
|
(450 |
) |
Transportation, gathering and compression, as reported |
|
274,330 |
|
|
|
284,765 |
|
Production and ad valorem taxes, as reported |
|
4,625 |
|
|
|
9,019 |
|
Brokered natural gas and marketing, as reported |
|
72,335 |
|
|
|
32,624 |
|
Less brokered natural gas and marketing stock-based
compensation |
|
(450 |
) |
|
|
(413 |
) |
General and administrative, as reported |
|
38,004 |
|
|
|
42,254 |
|
Less G&A stock-based compensation |
|
(9,405 |
) |
|
|
(8,029 |
) |
Less lawsuit settlements |
|
(439 |
) |
|
|
(815 |
) |
Interest expense, as reported |
|
56,878 |
|
|
|
47,518 |
|
Less amortization of deferred financing costs |
|
(2,287 |
) |
|
|
(2,061 |
) |
Cash expenses |
|
450,914 |
|
|
|
436,447 |
|
|
|
|
|
|
|
|
|
Cash margin, a non-GAAP
measure |
$ |
193,540 |
|
|
$ |
123,967 |
|
|
|
|
|
|
|
|
|
Mmcfe produced during period |
|
187,334 |
|
|
|
208,769 |
|
|
|
|
|
|
|
|
|
Cash margin per
mcfe |
$ |
1.03 |
|
|
$ |
0.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INCOME
BEFORE INCOME TAXES TO CASH MARGIN |
|
|
|
|
|
|
|
(Unaudited, in thousands, except
per unit data) |
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
Income before income
taxes, as reported |
$ |
29,840 |
|
|
$ |
195,193 |
|
Adjustments to reconcile
income before income taxes to cash
margin: |
|
|
|
|
|
|
|
ARO settlements and other gains |
|
(62 |
) |
|
|
(260 |
) |
Derivative fair value loss (income) |
|
57,879 |
|
|
|
(233,175 |
) |
Net cash (payments) receipts on derivative settlements |
|
(39,395 |
) |
|
|
99,929 |
|
Exploration expense |
|
5,152 |
|
|
|
6,747 |
|
Lawsuit settlements |
|
439 |
|
|
|
815 |
|
Exit and termination costs |
|
13,714 |
|
|
|
1,595 |
|
Deferred compensation plan |
|
19,811 |
|
|
|
(8,537 |
) |
Stock-based compensation (direct operating, brokered natural gas
and marketing, general and administrative and termination
costs) |
|
10,568 |
|
|
|
9,222 |
|
Interest – amortization of deferred financing costs |
|
2,287 |
|
|
|
2,061 |
|
Depletion, depreciation and amortization |
|
88,383 |
|
|
|
102,986 |
|
Loss (gain) on sale of assets |
|
1,860 |
|
|
|
(122,099 |
) |
Loss (gain) on early extinguishment of debt |
|
35 |
|
|
|
(12,923 |
) |
Impairment of proved property |
|
— |
|
|
|
77,000 |
|
Abandonment and impairment of unproved properties |
|
3,029 |
|
|
|
5,413 |
|
Cash margin, a non-GAAP
measure |
$ |
193,540 |
|
|
$ |
123,967 |
|
|
|
|
|
|
|
|
|
SEE WEBSITE FOR OTHER SUPPLEMENTAL
INFORMATION FOR THE PERIODSAND ADDITIONAL HEDGING
DETAILS
Range Resources (NYSE:RRC)
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From Feb 2024 to Mar 2024
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From Mar 2023 to Mar 2024