RANGE RESOURCES CORPORATION (NYSE: RRC) today
announced its first quarter 2019 financial results.
Highlights –
- GAAP cash flow provided from operating activities of $261
million, and non-GAAP cash flow of $269 million
- GAAP net income of $1.4 million ($0.01 per diluted share), and
non-GAAP net income of $90.7 million ($0.36 per diluted share)
- Utilized free cash flow to reduce borrowings on credit facility
by approximately $48 million
- Production averaged 2,256 Mmcfe per day, including
approximately 31% liquids
- Southwest Pennsylvania production increased 14% over the
prior-year period to 1,915 Mmcfe per day
- Natural gas differentials, including basis hedging, averaged
$0.04 per mcf above NYMEX
- Natural gas, NGLs and oil price realizations before NYMEX
hedging averaged $3.31 per mcfe, a $0.17 premium to NYMEX natural
gas
Commenting on the quarter, Jeff Ventura, the
Company’s CEO said, “Range is off to a great start in 2019,
exceeding production guidance for the first quarter and paying down
$48 million in debt with organically-generated free cash
flow. Importantly, we remain on track to deliver on our
annual production target while spending at or below budget for the
year. Operationally, Range continues to focus on translating
our best-in-class inventory and well-level returns into
corporate-level returns in the form of significant free cash flow
generation in 2019 and beyond, as we improve the balance sheet
towards our longer-term target of under 2x debt-to-EBITDAX.
Additionally, Range is actively pursuing multiple asset sales as we
remain committed to accelerating our debt reduction timeline.”
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.
First Quarter 2019
GAAP revenues for first quarter 2019 totaled
$748 million (a 1% increase compared to first quarter 2018), GAAP
net cash provided from operating activities (including changes in
working capital) was $261 million, compared to $371 million in
first quarter 2018, and GAAP net income was $1.4 million ($0.01 per
diluted share) versus net income of $49.2 million ($0.20 per
diluted share) in the prior-year first quarter. First quarter
earnings results include a $61.7 million derivative loss due to
increases in future commodity prices compared to a $14.0 million
derivative loss in the prior-year first quarter and a $3.6 million
mark to market loss related to the deferred compensation plan
compared to a $7.4 million gain in the prior-year first
quarter.
Non-GAAP revenues for first quarter 2019 totaled
$835 million, an increase of 9% compared to first quarter 2018, and
cash flow from operations before changes in working capital, a
non-GAAP measure, was $269 million, compared to $323 million in
first quarter 2018. Adjusted net income comparable to
analysts’ estimates, a non-GAAP measure, was $90.7 million ($0.36
per diluted share) in first quarter 2019, compared to $112.7
million ($0.46 per diluted share) in the prior-year first
quarter.
The following table details Range’s average
production and realized pricing for first quarter 2019:
Net Production |
|
Natural Gas(Mmcf/d) |
|
Oil (Bbl/d) |
|
NGLs(Bbl/d) |
|
Natural GasEquivalent
(Mmcfe/d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,561 |
|
8,951 |
|
106,806 |
|
2,256 |
|
Realized Pricing* |
|
|
Natural
Gas($/Mcf) |
|
Oil ($/Bbl) |
|
NGLs($/Bbl) |
|
Natural
GasEquivalent ($/Mcfe) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average NYMEX
price |
|
$ |
3.14 |
|
|
$ |
54.86 |
|
|
|
|
|
Differential, including
basis hedging |
|
|
0.04 |
|
|
|
(6.30 |
) |
|
|
|
|
Realized prices before
NYMEX hedges |
|
|
3.18 |
|
|
|
48.56 |
|
|
$ |
20.58 |
|
$ |
3.31 |
Settled NYMEX
hedges |
|
|
(0.09 |
) |
|
|
1.05 |
|
|
|
2.59 |
|
|
0.12 |
Average realized prices
after hedges |
|
$ |
3.09 |
|
|
$ |
49.61 |
|
|
$ |
23.17 |
|
$ |
3.43 |
|
|
|
|
|
|
|
|
|
*May not add due to
rounding |
|
|
|
|
|
|
|
|
First quarter 2019 natural gas, NGLs and oil
price realizations (including the impact of derivative settlements
which correspond to analysts’ estimates) averaged $3.43 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 $3.18 per mcf, or a $0.04 per mcf premium to NYMEX,
which compares to a $0.13 per mcf premium during the prior-year
quarter.
- Crude oil and condensate price realizations, before realized
hedges, averaged $48.56 per barrel, or $6.30 below West Texas
Intermediate (WTI), compared to $4.08 below WTI in the
prior-year quarter. Hedging increased price by $1.05 per
barrel compared to a decrease of $7.82 per barrel in the
prior-year quarter.
- Pre-hedge NGL realizations were $20.58 per barrel, or 38% of
WTI, which compares to pre-hedge realizations of 35% of WTI during
the prior-year quarter. NGL realizations including hedges,
improved to $23.17 per barrel, which compares to $20.20 per barrel
in the prior-year quarter.
Unit Costs
The following table details Range’s unit costs
per mcfe(a):
Expenses |
|
1Q 2019($/Mcfe) |
|
|
1Q 2018 ($/Mcfe) |
|
|
Increase (Decrease) |
|
|
|
|
|
|
|
|
|
Direct operating |
$ |
0.16 |
|
$ |
0.19 |
|
|
(16 |
%) |
Transportation,
gathering, processing and compression |
|
1.49 |
|
|
1.24 |
|
|
20 |
% |
Production and ad
valorem taxes |
|
0.06 |
|
|
0.05 |
|
|
20 |
% |
General and
administrative(a) |
|
0.18 |
|
|
0.23 |
|
|
(22 |
%) |
Interest
expense(a) |
|
0.25 |
|
|
0.26 |
|
|
(4 |
%) |
Total
cash unit costs(b) |
|
2.13 |
|
|
1.96 |
|
|
9 |
% |
Depletion, depreciation
andamortization (DD&A) |
|
0.68 |
|
|
0.82 |
|
|
(17 |
%) |
Total
unit costs plus DD&A(b) |
$ |
2.82 |
|
$ |
2.79 |
|
|
1 |
% |
(a) Excludes stock-based compensation, legal
settlements and amortization of deferred financing costs.(b) May
not add due to rounding.
Renewal of Bank Credit
Facility
Range’s existing $3.0 billion borrowing base
and $2.0 billion commitment amount under its $4.0
billion bank credit facility were unanimously reaffirmed by
its 27 lenders with no changes to the financial covenants.
The credit facility matures on April 13, 2023 and is
subject to annual redeterminations.
Range reduced total debt outstanding by $48
million during the first quarter. At March 31, 2019, Range
had total debt outstanding, before debt issuance costs of $3.8
billion, consisting of $2.9 billion in senior notes, $895 million
in bank debt and $49 million in senior subordinated notes.
The Company had $825 million of borrowing capacity under the
current commitment amount at the end of the first quarter.
Capital Expenditures
First quarter 2019 drilling and completion
expenditures were $210 million. In addition, during the
quarter, $14.6 million was spent on acreage purchases and $1.1
million on gathering systems. Range remains on target with
its $756 million total capital budget for 2019, which is expected
to be funded within cash flows, excluding asset sale
proceeds.
Operational Discussion
The table below summarizes estimated activity
for 2019 regarding the number of wells to sales for each
area.
|
|
|
Wells TIL1Q
2019 |
|
Calendar
2019Planned TIL |
|
Remaining2019 |
SW PA Super-Rich |
|
|
3 |
|
14 |
|
11 |
SW PA Wet |
|
|
0 |
|
41 |
|
41 |
SW PA Dry |
|
|
20 |
|
33 |
|
13 |
Total
Appalachia |
|
|
23 |
|
88 |
|
65 |
|
|
|
|
|
|
|
|
Total N.
LA. |
|
|
3 |
|
8 |
|
5 |
Total |
|
|
26 |
|
96 |
|
70 |
Appalachia Division
Production for first quarter 2019 averaged
approximately 2,027 net Mmcfe per day from the Appalachia division,
a 12% increase over the prior-year first quarter. The
southwest area of the division averaged 1,915 net Mmcfe per day
during first quarter 2019, a 14% increase over first quarter
2018. The northeast Marcellus properties averaged 112 net
Mmcf per day inclusive of approximately 15 net Mmcf per day of
legacy acreage production during first quarter 2019.
North Louisiana
Production for the division in first quarter
2019 averaged approximately 229 net Mmcfe per day. The
division brought on line three wells during the quarter and expects
to bring on line five additional wells during the remainder of the
year.
Marketing and
Transportation
The first quarter saw the full utilization of
the recently commissioned Mark West Harmon Creek I gas processing
plant. This facility, along with the re-start of the Houston
gas processing plant, saw strong run times for the first quarter
and supported processing for wells focused in our liquids-rich
acreage. The new plant allows Range to maximize utilization
of its newly available downstream capacity. With
significant long-haul takeaway capacity coming on-line over the
last couple of years, local Appalachia pricing has improved
significantly compared to prior years. Additionally, with the
slowdown in southwest Appalachia production growth, local pricing
is expected to remain strong, providing additional in-basin market
growth opportunities with less transportation cost for incremental
natural gas production. Range is actively engaged in
developing in-basin demand to support expanded use of natural gas
in local markets.
During the first quarter, Range resumed the
waterborne butane export program it began last spring. This
was enabled via the newly operational Mariner East 2 pipeline and
associated infrastructure at Marcus Hook. Going forward,
Range has also positioned a portion of its butane volumes for
export using an additional East Coast terminal giving NGL products
another outlet for accessing premium international markets.
Range’s first quarter NGL realization, including hedges, was $23.17
per barrel, an increase of 15% year over year. Based on
recent strip pricing, Range expects pre-hedge NGL pricing for
calendar 2019 to average 34% - 38% of WTI. On an
absolute price per barrel basis, expected calendar 2019
realizations are now slightly better than the Company’s original
guidance in February. Based on recent strip pricing, Range
expects pre-hedge NGL pricing for calendar 2019 to average 34% -
38% of WTI.
The Mariner East 1 pipeline was temporarily
taken out of service in late January following a subsidence along
the pipeline route. Since that time, Range’s marketing team
has worked diligently pursuing options to secure the flow of NGL
production. For propane, Range has utilized multiple outlets
to continue moving barrels to the Marcus Hook terminal for
international export. In the case of ethane, Range has
utilized various options for marketing production throughout the
quarter, including both normal extraction and selling ethane as
natural gas. Overall, despite the Mariner East 1 pipeline
temporary disruption, Range has successfully moved NGL production
to both domestic and international end-use markets through the
optimization of rail and other infrastructure in the region. Range
anticipates the Mariner East 1 pipeline will be returned to service
in the next few days.
Guidance – 2019
Production per day Guidance
Production for second quarter 2019 is expected
to be approximately 2,270 to 2,280 Mmcfe per day.
Production expectations for the full year 2019
remains approximately 2,325 to 2,345 Mmcfe per day.
2Q 2019 Expense Guidance
Direct operating
expense: |
|
$0.16 − $0.18 per
mcfe |
Transportation, gathering,
processing and compression expense: |
|
$1.47 − $1.51 per
mcfe |
Production tax
expense: |
|
$0.05 − $0.06 per
mcfe |
Exploration expense: |
|
$7.0 − $9.0
million |
Unproved property
impairment expense: |
|
$15.0 − $18.0
million |
G&A expense: |
|
$0.18 − $0.20 per
mcfe |
Interest expense: |
|
$0.23 − $0.25 per
mcfe |
DD&A expense: |
|
$0.68 − $0.74 per
mcfe |
Net brokered gas marketing
expense: |
|
~$3.0 million |
2Q 2019 Natural Gas Price Differentials (including basis
hedging): NYMEX minus $0.24
Full Year 2019 Price Guidance
Based on current market indications, Range expects to average
the following pre-hedge differentials for calendar 2019
production.
|
FY 2019
Guidance |
Natural Gas: |
NYMEX
minus $0.15 to $0.20 |
Natural Gas Liquids
(including ethane): |
34% −
38% of WTI |
Oil/Condensate: |
WTI
minus $6.00 to $8.00 |
Hedging Status
Range hedges portions of its expected future
production volumes to increase the predictability of cash flow and
to help maintain a more flexible financial position. Range
currently has over 80% of its expected calendar 2019 natural gas
production hedged at a weighted average floor price of $2.86 per
Mmbtu. Similarly, Range has hedged over 70% of its calendar
2019 projected crude oil production at an average floor price of
$56.29. Please see Range’s detailed hedging schedule posted
at the end of the financial tables below and on its website at
www.rangeresources.com.
Range has also hedged Marcellus and other basis
differentials to limit volatility between NYMEX and regional
prices. The fair value of the basis hedges was a loss of $3.4
million as of March 31, 2019. The Company also has propane
basis swap contracts which lock in the differential between Mont
Belvieu and international propane indices. The fair value of
these contracts was a loss of $0.8 million on March 31,
2019.
Conference Call Information
A conference call to review the financial
results is scheduled on Tuesday, April 23 at 9:00 a.m. ET. To
participate in the call, please dial 866-900-7525 and provide
conference code 4086623 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 23, 2019.
Non-GAAP Financial Measures
Adjusted net income comparable to analysts’
estimates as set forth in this release represents income or loss
from operations before income taxes adjusted for certain non-cash
items (detailed in the accompanying table) less income taxes.
We believe adjusted net income comparable to analysts’ estimates is
calculated on the same basis as analysts’ estimates and that many
investors use this published research in making investment
decisions and evaluating operational trends of the Company and its
performance relative to other oil and gas producing
companies. Diluted earnings per share (adjusted) as set forth
in this release represents adjusted net income comparable to
analysts’ estimates on a diluted per share basis. A table is
included which reconciles income or loss from operations to
adjusted net income comparable to analysts’ estimates and diluted
earnings per share (adjusted). The Company provides
additional comparative information on prior periods along with
non-GAAP revenue disclosures on its website.
Cash flow from operations before changes in
working capital (sometimes referred to as “adjusted cash flow”) as
defined in this release represents net cash provided by operations
before changes in working capital and exploration expense adjusted
for certain non-cash compensation items. Cash flow from
operations before changes in working capital is widely accepted by
the investment community as a financial indicator of an oil and gas
company’s ability to generate cash to internally fund exploration
and development activities and to service debt. Cash flow
from operations before changes in working capital is also useful
because it is widely used by professional research analysts in
valuing, comparing, rating and providing investment recommendations
of companies in the oil and gas exploration and production
industry. In turn, many investors use this published research
in making investment decisions. Cash flow from operations
before changes in working capital is not a measure of financial
performance under GAAP and should not be considered as an
alternative to cash flows from operations, investing, or financing
activities as an indicator of cash flows, or as a measure of
liquidity. A table is included which reconciles net cash
provided by operations to cash flow from operations before changes
in working capital as used in this release. On its website,
the Company provides additional comparative information on prior
periods for cash flow, cash margins and non-GAAP earnings as used
in this release.
The cash prices realized for oil and natural gas
production, including the amounts realized on cash-settled
derivatives and net of transportation, gathering, processing and
compression expense, is a critical component in the Company’s
performance tracked by investors and professional research analysts
in valuing, comparing, rating and providing investment
recommendations and forecasts of companies in the oil and gas
exploration and production industry. In turn, many investors
use this published research in making investment decisions.
Due to the GAAP disclosures of various derivative transactions and
third-party transportation, gathering, processing and compression
expense, such information is now reported in various lines of the
income statement. The Company believes that it is important
to furnish a table reflecting the details of the various components
of each line in the statement of operations to better inform the
reader of the details of each amount and provide a summary of the
realized cash-settled amounts and third-party transportation,
gathering, processing and compression expense which were
historically reported as natural gas, NGLs and oil sales.
This information is intended to bridge the gap between various
readers’ understanding and fully disclose the information
needed.
The Company discloses in this release the
detailed components of many of the single line items shown in the
GAAP financial statements included in the Company’s quarterly
report on Form 10-Q. The Company believes that it is
important to furnish this detail of the various components
comprising each line of the Statements of Operations to better
inform the reader of the details of each amount, the changes
between periods and the effect on its financial results.
RANGE RESOURCES CORPORATION (NYSE:
RRC) is a leading U.S. independent oil and natural gas
producer with operations focused in stacked-pay projects in
the Appalachian Basin and North Louisiana. The Company pursues
an organic development strategy targeting high return, low-cost
projects within its large inventory of low risk development
drilling opportunities. The Company is headquartered in Fort
Worth, Texas. More information about Range can be found at
www.rangeresources.com.
Included within this news release are certain
“forward-looking statements” within the meaning of the federal
securities laws, including the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 that are not
limited to historical facts, but reflect Range’s current beliefs,
expectations or intentions regarding future events. Words
such as “may,” “will,” “could,” “should,” “expect,” “plan,”
“project,” “intend,” “anticipate,” “believe,” “outlook,”
“estimate,” “predict,” “potential,” “pursue,” “target,” “continue,”
and similar expressions are intended to identify such
forward-looking statements.
All statements, except for statements of
historical fact, made within regarding activities, events or
developments the Company expects, believes or anticipates will or
may occur in the future, such as those regarding future well costs,
expected asset sales, well productivity, future liquidity and
financial resilience, anticipated exports and related financial
impact, NGL market supply and demand, improving commodity
fundamentals and pricing, future capital efficiencies, future
shareholder value, emerging plays, capital spending, anticipated
drilling and completion activity, acreage prospectivity, expected
pipeline utilization and future guidance information are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements are
based on assumptions and estimates that management believes are
reasonable based on currently available information; however,
management's assumptions and Range's future performance are subject
to a wide range of business risks and uncertainties and there is no
assurance that these goals and projections can or will be met. Any
number of factors could cause actual results to differ materially
from those in the forward-looking statements. Further
information on risks and uncertainties is available in Range's
filings with the Securities and Exchange Commission (SEC),
including its most recent Annual Report on Form 10-K. Unless
required by law, Range undertakes no obligation to publicly update
or revise any forward-looking statements to reflect circumstances
or events after the date they are made.
The SEC permits oil and gas companies, in
filings made with the SEC, to disclose proved reserves, which are
estimates that geological and engineering data demonstrate with
reasonable certainty to be recoverable in future years from known
reservoirs under existing economic and operating conditions as well
as the option to disclose probable and possible reserves.
Range has elected not to disclose its probable and possible
reserves in its filings with the SEC. Range uses certain
broader terms such as "resource potential,” “unrisked resource
potential,” "unproved resource potential" or "upside" or other
descriptions of volumes of resources potentially recoverable
through additional drilling or recovery techniques that may include
probable and possible reserves as defined by the SEC's
guidelines. Range has not attempted to distinguish probable
and possible reserves from these broader classifications. The SEC’s
rules prohibit us from including in filings with the SEC these
broader classifications of reserves. These estimates are by
their nature more speculative than estimates of proved, probable
and possible reserves and accordingly are subject to substantially
greater risk of actually being realized. Unproved resource
potential refers to Range's internal estimates of hydrocarbon
quantities that may be potentially discovered through exploratory
drilling or recovered with additional drilling or recovery
techniques and have not been reviewed by independent
engineers. Unproved resource potential does not constitute
reserves within the meaning of the Society of Petroleum Engineer's
Petroleum Resource Management System and does not include proved
reserves. Area wide unproven resource potential has not been
fully risked by Range's management. “EUR”, or estimated
ultimate recovery, refers to our management’s estimates of
hydrocarbon quantities that may be recovered from a well completed
as a producer in the area. These quantities may not necessarily
constitute or represent reserves within the meaning of the Society
of Petroleum Engineer’s Petroleum Resource Management System or the
SEC’s oil and natural gas disclosure rules. Actual quantities that
may be recovered from Range's interests could differ
substantially. Factors affecting ultimate recovery include
the scope of Range's drilling program, which will be directly
affected by the availability of capital, drilling and production
costs, commodity prices, availability of drilling services and
equipment, drilling results, lease expirations, transportation
constraints, regulatory approvals, field spacing rules, recoveries
of gas in place, length of horizontal laterals, actual drilling
results, including geological and mechanical factors affecting
recovery rates and other factors. Estimates of resource
potential may change significantly as development of our resource
plays provides additional data.
In addition, our production forecasts and
expectations for future periods are dependent upon many
assumptions, including estimates of production decline rates from
existing wells and the undertaking and outcome of future drilling
activity, which may be affected by significant commodity price
declines or drilling cost increases. Investors are urged to
consider closely the disclosure in our most recent Annual Report on
Form 10-K, available from our website at www.rangeresources.com or
by written request to 100 Throckmorton Street, Suite 1200, Fort
Worth, Texas 76102. You can also obtain this Form 10-K on the
SEC’s website at www.sec.gov or by calling the SEC at
1-800-SEC-0330.
Investor Contacts:
Laith Sando, Vice President – Investor
Relations817-869-4267lsando@rangeresources.com
Michael Freeman, Director – Investor Relations &
Hedging817-869-4264mfreeman@rangeresources.com
John Durham, Senior Financial
Analyst817-869-1538jdurham@rangeresources.com
Media Contact:
Michael Mackin, Director of External Affairs
724-743-6776mmackin@rangeresources.com
www.rangeresources.com
RANGE RESOURCES CORPORATION
STATEMENTS OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas,
NGLs and oil sales (a) |
$ |
671,654 |
|
|
$ |
696,629 |
|
|
|
|
|
Derivative
fair value (loss)/income |
|
(61,731 |
) |
|
|
(14,009 |
) |
|
|
|
|
Brokered
natural gas, marketing and other (b) |
|
138,143 |
|
|
|
59,755 |
|
|
|
|
|
Other
(b) |
|
71 |
|
|
|
224 |
|
|
|
|
|
Total
revenues and other income |
|
748,137 |
|
|
|
742,599 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Direct
operating |
|
32,636 |
|
|
|
37,531 |
|
|
|
|
|
Direct
operating – non-cash stock-based compensation (c) |
|
591 |
|
|
|
591 |
|
|
|
|
|
Transportation, gathering, processing and compression |
|
302,655 |
|
|
|
244,628 |
|
|
|
|
|
Production
and ad valorem taxes |
|
11,310 |
|
|
|
9,926 |
|
|
|
|
|
Brokered
natural gas and marketing |
|
131,920 |
|
|
|
55,309 |
|
|
|
|
|
Brokered
natural gas and marketing – non-cash stock-based
compensation (c) |
|
385 |
|
|
|
285 |
|
|
|
|
|
Exploration |
|
7,838 |
|
|
|
6,968 |
|
|
|
|
|
Exploration
– non-cash stock-based compensation (c) |
|
373 |
|
|
|
751 |
|
|
|
|
|
Abandonment
and impairment of unproved properties |
|
12,659 |
|
|
|
11,773 |
|
|
|
|
|
General and
administrative |
|
37,117 |
|
|
|
44,329 |
|
|
|
|
|
General and
administrative – non-cash stock-based compensation (c) |
|
8,815 |
|
|
|
23,911 |
|
|
|
|
|
General and
administrative – lawsuit settlements |
|
706 |
|
|
|
177 |
|
|
|
|
|
Termination
costs |
|
— |
|
|
|
(37 |
) |
|
|
|
|
Deferred
compensation plan (d) |
|
3,581 |
|
|
|
(7,397 |
) |
|
|
|
|
Interest
expense |
|
49,749 |
|
|
|
50,533 |
|
|
|
|
|
Interest
expense – amortization of deferred financing costs (e) |
|
1,788 |
|
|
|
1,852 |
|
|
|
|
|
Depletion,
depreciation and amortization |
|
138,718 |
|
|
|
162,266 |
|
|
|
|
|
Impairment
of proved properties |
|
— |
|
|
|
7,312 |
|
|
|
|
|
Gain on sale
of assets |
|
189 |
|
|
|
(23 |
) |
|
|
|
|
Total costs and expenses |
|
741,030 |
|
|
|
650,685 |
|
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
7,107 |
|
|
|
91,914 |
|
|
|
92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense: |
|
|
|
|
|
|
|
|
|
|
|
Current |
|
— |
|
|
|
— |
|
|
|
|
|
Deferred |
|
5,688 |
|
|
|
42,676 |
|
|
|
|
|
|
|
5,688 |
|
|
|
42,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
1,419 |
|
|
$ |
49,238 |
|
|
|
97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per
Common Share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.01 |
|
|
$ |
0.20 |
|
|
|
|
|
Diluted |
$ |
0.01 |
|
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding, as reported: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
247,776 |
|
|
|
245,709 |
|
|
|
1 |
% |
Diluted |
|
249,154 |
|
|
|
246,594 |
|
|
|
1 |
% |
(a) See separate natural gas, NGLs and oil sales
information table.(b) Included in Brokered natural gas,
marketing and other revenues in the 10-Q.(c) Costs associated
with stock compensation and restricted stock amortization, which
have been reflected in the categories associated with the direct
personnel costs, which are combined with the cash costs in the
10-Q.(d) Reflects the change in market value of the vested
Company stock held in the deferred compensation plan.(e)
Included in interest expense in the 10-Q.
RANGE RESOURCES CORPORATION
BALANCE
SHEETS |
|
|
|
|
|
|
|
(In thousands) |
|
March
31, |
|
|
|
December
31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
(Unaudited) |
|
|
|
(Audited) |
|
Assets |
|
|
|
|
|
|
|
Current
assets |
$ |
382,332 |
|
|
$ |
514,232 |
|
Derivative
assets |
|
14,552 |
|
|
|
92,795 |
|
Natural gas
and oil properties, successful efforts method |
|
9,105,269 |
|
|
|
9,023,185 |
|
Transportation and field assets |
|
8,825 |
|
|
|
9,776 |
|
Operating
lease ROU assets |
|
49,329 |
|
|
|
— |
|
Other |
|
74,757 |
|
|
|
68,166 |
|
|
$ |
9,635,064 |
|
|
$ |
9,708,154 |
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
Current
liabilities |
$ |
651,946 |
|
|
$ |
745,182 |
|
Asset
retirement obligations |
|
5,485 |
|
|
|
5,485 |
|
Derivative
liabilities |
|
13,369 |
|
|
|
4,144 |
|
|
|
|
|
|
|
|
|
Bank
debt |
|
884,652 |
|
|
|
932,018 |
|
Senior
notes |
|
2,857,297 |
|
|
|
2,856,166 |
|
Senior
subordinated notes |
|
48,700 |
|
|
|
48,677 |
|
Total debt |
|
3,790,649 |
|
|
|
3,836,861 |
|
|
|
|
|
|
|
|
|
Deferred tax
liability |
|
672,376 |
|
|
|
666,668 |
|
Derivative
liabilities |
|
2,559 |
|
|
|
3,462 |
|
Deferred
compensation liability |
|
75,179 |
|
|
|
67,542 |
|
Asset
retirement obligations and other liabilities |
|
360,838 |
|
|
|
319,379 |
|
|
|
|
|
|
|
|
|
Common stock
and retained earnings |
|
4,063,652 |
|
|
|
4,060,480 |
|
Other
comprehensive loss |
|
(598 |
) |
|
|
(658 |
) |
Common stock
held in treasury stock |
|
(391 |
) |
|
|
(391 |
) |
Total stockholders’ equity |
|
4,062,663 |
|
|
|
4,059,431 |
|
|
$ |
9,635,064 |
|
|
$ |
9,708,154 |
|
RECONCILIATION OF
TOTAL REVENUES AND OTHER INCOME TO TOTAL REVENUE EXCLUDING CERTAIN
ITEMS, a non-GAAP measure |
|
(Unaudited, in
thousands) |
|
|
Three Months Ended March 31, |
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and other
income, as reported |
$ |
748,137 |
|
|
$ |
742,599 |
|
|
|
1 |
% |
Adjustment for certain
special items: |
|
|
|
|
|
|
|
|
|
|
|
Total change
in fair value related to derivatives prior to settlement (gain)
loss |
|
86,565 |
|
|
|
22,934 |
|
|
|
|
|
Total revenues, as adjusted, non-GAAP |
$ |
834,702 |
|
|
$ |
765,533 |
|
|
|
9 |
% |
RANGE RESOURCES CORPORATION
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
(Unaudited in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
1,419 |
|
|
$ |
49,238 |
|
Adjustments to
reconcile net cash provided from continuing operations: |
|
|
|
|
|
|
|
Deferred
income tax expense |
|
5,688 |
|
|
|
42,676 |
|
Depletion,
depreciation, amortization and impairment |
|
138,718 |
|
|
|
169,578 |
|
Exploration
dry hole costs |
|
— |
|
|
|
2 |
|
Abandonment
and impairment of unproved properties |
|
12,659 |
|
|
|
11,773 |
|
Derivative
fair value loss |
|
61,731 |
|
|
|
14,009 |
|
Cash
settlements on derivative financial instruments that do not qualify
for hedge accounting |
|
24,834 |
|
|
|
8,925 |
|
Amortization
of deferred issuance costs, loss on extinguishment of debt, and
other |
|
1,807 |
|
|
|
1,312 |
|
Deferred and
stock-based compensation |
|
14,112 |
|
|
|
18,527 |
|
Loss (gain)
on sale of assets and other |
|
189 |
|
|
|
(23 |
) |
|
|
|
|
|
|
|
|
Changes in
working capital: |
|
|
|
|
|
|
|
Accounts
receivable |
|
134,006 |
|
|
|
53,913 |
|
Inventory
and other |
|
(4,763 |
) |
|
|
(5,294 |
) |
Accounts
payable |
|
(30,431 |
) |
|
|
47,453 |
|
Accrued
liabilities and other |
|
(99,275 |
) |
|
|
(41,517 |
) |
Net changes in working capital |
|
(463 |
) |
|
|
54,555 |
|
Net cash provided from operating
activities |
$ |
260,694 |
|
|
$ |
370,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
2019 |
|
|
|
2018 |
|
Net cash provided from
operating activities, as reported |
$ |
260,694 |
|
|
$ |
370,572 |
|
Net changes
in working capital |
|
463 |
|
|
|
(54,555 |
) |
Exploration
expense |
|
7,838 |
|
|
|
6,966 |
|
Lawsuit
settlements |
|
706 |
|
|
|
177 |
|
Termination
costs |
|
— |
|
|
|
(37 |
) |
Non-cash
compensation adjustment |
|
(386 |
) |
|
|
154 |
|
Cash flow from operations before changes in
working capital – non-GAAP measure |
$ |
269,315 |
|
|
$ |
323,277 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED WEIGHTED
AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
(Unaudited, in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2019 |
|
|
|
2018 |
|
Basic: |
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
250,320 |
|
|
|
248,576 |
|
Stock held by deferred
compensation plan |
|
(2,544 |
) |
|
|
(2,867 |
) |
Adjusted basic |
|
247,776 |
|
|
|
245,709 |
|
|
|
|
|
|
|
|
|
Dilutive: |
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
250,320 |
|
|
|
248,576 |
|
Dilutive stock options
under treasury method |
|
(1,166 |
) |
|
|
(1,982 |
) |
Adjusted dilutive |
|
249,154 |
|
|
|
246,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
Natural gas, NGL and oil
sales components: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas
sales |
$ |
434,720 |
|
|
$ |
431,573 |
|
|
|
|
|
NGL
sales |
|
197,813 |
|
|
|
202,527 |
|
|
|
|
|
Oil
sales |
|
39,121 |
|
|
|
62,529 |
|
|
|
|
|
Total oil and gas sales, as reported |
$ |
671,654 |
|
|
$ |
696,629 |
|
|
|
-4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Derivative fair value
income (loss), as reported: |
$ |
(61,731 |
) |
|
$ |
(14,009 |
) |
|
|
|
|
Cash settlements on
derivative financial instruments – (gain) loss: |
|
|
|
|
|
|
|
|
|
|
|
Natural
gas |
|
872 |
|
|
|
(32,508 |
) |
|
|
|
|
NGLs |
|
(24,864 |
) |
|
|
15,268 |
|
|
|
|
|
Crude
Oil |
|
(842 |
) |
|
|
8,315 |
|
|
|
|
|
Total change in fair
value related to derivatives prior to settlement, a non-GAAP
measure |
$ |
(86,565 |
) |
|
$ |
(22,934 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering,
processing and compression components: |
|
|
|
|
|
|
|
|
|
|
|
Natural
gas |
$ |
189,082 |
|
|
$ |
157,234 |
|
|
|
|
|
NGLs |
|
113,573 |
|
|
|
87,394 |
|
|
|
|
|
Total transportation, gathering, processing and
compression, as reported |
$ |
302,655 |
|
|
$ |
244,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and oil
sales, including cash-settled derivatives: (c) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas
sales |
$ |
433,848 |
|
|
$ |
464,081 |
|
|
|
|
|
NGL
sales |
|
222,677 |
|
|
|
187,259 |
|
|
|
|
|
Oil
sales |
|
39,963 |
|
|
|
54,214 |
|
|
|
|
|
Total |
$ |
696,488 |
|
|
$ |
705,554 |
|
|
|
-1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas
during the periods (a): |
|
|
|
|
|
|
|
|
|
|
|
Natural gas
(mcf) |
|
140,521,663 |
|
|
|
134,954,095 |
|
|
|
4 |
% |
NGL
(bbl) |
|
9,612,547 |
|
|
|
9,270,031 |
|
|
|
4 |
% |
Oil
(bbl) |
|
805,550 |
|
|
|
1,063,434 |
|
|
|
-24 |
% |
Gas equivalent (mcfe)
(b) |
|
203,030,245 |
|
|
|
196,954,885 |
|
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas
– average per day (a): |
|
|
|
|
|
|
|
|
|
|
|
Natural gas
(mcf) |
|
1,561,352 |
|
|
|
1,499,490 |
|
|
|
4 |
% |
NGL
(bbl) |
|
106,806 |
|
|
|
103,000 |
|
|
|
4 |
% |
Oil
(bbl) |
|
8,951 |
|
|
|
11,816 |
|
|
|
-24 |
% |
Gas equivalent (mcfe)
(b) |
|
2,255,892 |
|
|
|
2,188,388 |
|
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, excluding
derivative settlements and before third party transportation
costs: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas
(mcf) |
$ |
3.09 |
|
|
$ |
3.20 |
|
|
|
-3 |
% |
NGL
(bbl) |
$ |
20.58 |
|
|
$ |
21.85 |
|
|
|
-6 |
% |
Oil
(bbl) |
$ |
48.56 |
|
|
$ |
58.80 |
|
|
|
-17 |
% |
Gas equivalent (mcfe)
(b) |
$ |
3.31 |
|
|
$ |
3.54 |
|
|
|
-6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including
derivative settlements before third party transportation costs:
(c) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas
(mcf) |
$ |
3.09 |
|
|
$ |
3.44 |
|
|
|
-10 |
% |
NGL
(bbl) |
$ |
23.17 |
|
|
$ |
20.20 |
|
|
|
15 |
% |
Oil
(bbl) |
$ |
49.61 |
|
|
$ |
50.98 |
|
|
|
-3 |
% |
Gas equivalent (mcfe)
(b) |
$ |
3.43 |
|
|
$ |
3.58 |
|
|
|
-4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including
derivative settlements and after third party transportation
costs: (d) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas
(mcf) |
$ |
1.74 |
|
|
$ |
2.27 |
|
|
|
-23 |
% |
NGL
(bbl) |
$ |
11.35 |
|
|
$ |
10.77 |
|
|
|
5 |
% |
Oil
(bbl) |
$ |
49.61 |
|
|
$ |
50.98 |
|
|
|
-3 |
% |
Gas equivalent (mcfe)
(b) |
$ |
1.94 |
|
|
$ |
2.34 |
|
|
|
-17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering
and compression expense per mcfe |
$ |
1.49 |
|
|
$ |
1.24 |
|
|
|
20 |
% |
(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, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
before income taxes, as reported |
$ |
7,107 |
|
|
$ |
91,914 |
|
|
|
92 |
% |
Adjustment for certain
special items: |
|
|
|
|
|
|
|
|
|
|
|
Loss (gain)
on sale of assets |
|
189 |
|
|
|
(23 |
) |
|
|
|
|
Change in
fair value related to derivatives prior to settlement |
|
86,565 |
|
|
|
22,934 |
|
|
|
|
|
Abandonment
and impairment of unproved properties |
|
12,659 |
|
|
|
11,773 |
|
|
|
|
|
Impairment
of proved property |
|
— |
|
|
|
7,312 |
|
|
|
|
|
Lawsuit
settlements |
|
706 |
|
|
|
177 |
|
|
|
|
|
Termination
costs |
|
— |
|
|
|
(37 |
) |
|
|
|
|
Brokered
natural gas and marketing – non-cash stock-based compensation |
|
385 |
|
|
|
285 |
|
|
|
|
|
Direct
operating – non-cash stock-based compensation |
|
591 |
|
|
|
591 |
|
|
|
|
|
Exploration
expenses – non-cash stock-based compensation |
|
373 |
|
|
|
751 |
|
|
|
|
|
General
& administrative – non-cash stock-based compensation |
|
8,815 |
|
|
|
23,911 |
|
|
|
|
|
Deferred
compensation plan – non-cash adjustment |
|
3,581 |
|
|
|
(7,397 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes, as adjusted |
|
120,971 |
|
|
|
152,191 |
|
|
|
-21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense, as
adjusted |
|
|
|
|
|
|
|
|
|
|
|
Current |
|
— |
|
|
|
— |
|
|
|
|
|
Deferred
(a) |
|
30,260 |
|
|
|
39,517 |
|
|
|
|
|
Net income excluding certain items, a non-GAAP
measure |
$ |
90,711 |
|
|
$ |
112,674 |
|
|
|
-19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income per common
share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.37 |
|
|
$ |
0.46 |
|
|
|
-20 |
% |
Diluted |
$ |
0.36 |
|
|
$ |
0.46 |
|
|
|
-22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted shares
outstanding, if dilutive |
|
249,154 |
|
|
|
246,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Deferred taxes are estimated to be approximately 25%
for 2019 and 26% for 2018.
RANGE RESOURCES CORPORATION
RECONCILIATION
OF NET INCOME (LOSS), EXCLUDINGCERTAIN ITEMS AND
ADJUSTED EARNINGS PER SHARE, non-GAAP measures |
|
|
|
|
|
|
|
(In thousands, except per
share data) |
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Net income (loss),
as reported |
$ |
1,419 |
|
|
$ |
49,238 |
|
Adjustment for
certain special items: |
|
|
|
|
|
|
|
(Gain) loss
on sale of assets |
|
189 |
|
|
|
(23 |
) |
Change in
fair value related to derivatives prior to settlement |
|
86,565 |
|
|
|
22,934 |
|
Impairment
of proved property |
|
— |
|
|
|
7,312 |
|
Abandonment
and impairment of unproved properties |
|
12,659 |
|
|
|
11,773 |
|
Lawsuit
settlements |
|
706 |
|
|
|
177 |
|
Termination
costs |
|
— |
|
|
|
(37 |
) |
Non-cash
stock-based compensation |
|
10,164 |
|
|
|
25,538 |
|
Deferred
compensation plan |
|
3,581 |
|
|
|
(7,397 |
) |
Tax
impact |
|
(24,572 |
) |
|
|
3,159 |
|
|
|
|
|
|
|
|
|
Net income
excluding certain items, a non-GAAP measure |
$ |
90,711 |
|
|
$ |
112,674 |
|
|
|
|
|
|
|
|
|
Net income (loss)
per diluted share, as reported |
$ |
0.01 |
|
|
$ |
0.20 |
|
Adjustment for
certain special items per diluted share: |
|
|
|
|
|
|
|
(Gain) loss
on sale of assets |
|
0.00 |
|
|
|
(0.00 |
) |
Change in
fair value related to derivatives prior to settlement |
|
0.35 |
|
|
|
0.09 |
|
Impairment
of proved property |
|
— |
|
|
|
0.03 |
|
Abandonment
and impairment of unproved properties |
|
0.05 |
|
|
|
0.05 |
|
Termination
costs |
|
— |
|
|
|
(0.00 |
) |
Non-cash
stock-based compensation |
|
0.04 |
|
|
|
0.10 |
|
Deferred
compensation plan |
|
0.01 |
|
|
|
(0.03 |
) |
Adjustment
for rounding differences |
|
— |
|
|
|
0.01 |
|
Tax
impact |
|
(0.10 |
) |
|
|
0.01 |
|
|
|
|
|
|
|
|
|
Net income per
diluted share, excluding certain items, a
non- GAAP measure |
$ |
0.36 |
|
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share, a non-GAAP measure: |
|
|
|
|
|
|
|
Basic |
$ |
0.37 |
|
|
$ |
0.46 |
|
Diluted |
$ |
0.36 |
|
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
RECONCILIATION
OF CASH MARGIN PER MCFE, a non-GAAP measure |
|
|
|
|
|
|
|
(Unaudited, in thousands,
except per unit data) |
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
Natural gas,
NGL and oil sales, as reported |
$ |
671,654 |
|
|
$ |
696,629 |
|
Derivative
fair value loss, as reported |
|
(61,731 |
) |
|
|
(14,009 |
) |
Less
non-cash fair value (gain) loss |
|
86,565 |
|
|
|
22,934 |
|
Brokered
natural gas and marketing and other, as reported |
|
138,214 |
|
|
|
59,979 |
|
Less
ARO settlement and other (gains) losses |
|
(71 |
) |
|
|
(224 |
) |
Cash
revenue applicable to production |
|
834,631 |
|
|
|
765,309 |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Direct
operating, as reported |
|
33,227 |
|
|
|
38,122 |
|
Less
direct operating stock-based compensation |
|
(591 |
) |
|
|
(591 |
) |
Transportation, gathering and compression, as reported |
|
302,655 |
|
|
|
244,628 |
|
Production
and ad valorem taxes, as reported |
|
11,310 |
|
|
|
9,926 |
|
Brokered
natural gas and marketing, as reported |
|
132,305 |
|
|
|
55,594 |
|
Less
brokered natural gas and marketing stock-based
compensation |
|
(385 |
) |
|
|
(285 |
) |
General and
administrative, as reported |
|
46,638 |
|
|
|
68,417 |
|
Less
G&A stock-based compensation |
|
(8,815 |
) |
|
|
(23,911 |
) |
Less
lawsuit settlements |
|
(706 |
) |
|
|
(177 |
) |
Interest
expense, as reported |
|
51,537 |
|
|
|
52,385 |
|
Less
amortization of deferred financing costs |
|
(1,788 |
) |
|
|
(1,852 |
) |
Cash
expenses |
|
565,387 |
|
|
|
442,256 |
|
|
|
|
|
|
|
|
|
Cash margin, a
non-GAAP measure |
$ |
269,244 |
|
|
$ |
323,053 |
|
|
|
|
|
|
|
|
|
Mmcfe produced during
period |
|
203,030 |
|
|
|
196,955 |
|
|
|
|
|
|
|
|
|
Cash margin per
mcfe |
$ |
1.33 |
|
|
$ |
1.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
INCOME (LOSS) BEFORE INCOME TAXES TO CASH MARGIN |
|
|
|
|
|
|
|
(Unaudited, in thousands,
except per unit data) |
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Income before
income taxes, as reported |
$ |
7,107 |
|
|
$ |
91,914 |
|
Adjustments to
reconcile income before income taxes to cash margin: |
|
|
|
|
|
|
|
ARO
settlements and other (gains) losses |
|
(71 |
) |
|
|
(224 |
) |
Derivative
fair value loss |
|
61,731 |
|
|
|
14,009 |
|
Net cash
receipts on derivative settlements |
|
24,834 |
|
|
|
8,925 |
|
Exploration
expense |
|
7,838 |
|
|
|
6,968 |
|
Lawsuit
settlements |
|
706 |
|
|
|
177 |
|
Termination
costs |
|
— |
|
|
|
(37 |
) |
Deferred
compensation plan |
|
3,581 |
|
|
|
(7,397 |
) |
Stock-based
compensation (direct operating, brokered natural gas and
marketing, general and administrative and termination costs) |
|
10,164 |
|
|
|
25,538 |
|
Interest –
amortization of deferred financing costs |
|
1,788 |
|
|
|
1,852 |
|
Depletion,
depreciation and amortization |
|
138,718 |
|
|
|
162,266 |
|
(Gain) loss
on sale of assets |
|
189 |
|
|
|
(23 |
) |
Impairment
of proved property and other assets |
|
— |
|
|
|
7,312 |
|
Abandonment
and impairment of unproved properties |
|
12,659 |
|
|
|
11,773 |
|
Cash margin, a
non-GAAP measure |
$ |
269,244 |
|
|
$ |
323,053 |
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
HEDGING POSITION AS OF March 31, 2019 – (Unaudited)
|
|
|
|
|
Daily
Volume |
|
|
|
Hedge Price |
|
|
Gas 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q 2019 Swaps |
|
|
|
1,350,000 Mmbtu |
|
|
|
$2.80 |
|
|
3Q 2019 Swaps |
|
|
|
1,425,109 Mmbtu |
|
|
|
$2.80 |
|
|
4Q 2019 Swaps |
|
|
|
1,428,261 Mmbtu |
|
|
|
$2.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 Swaps |
|
|
|
334,973 Mmbtu |
|
|
|
$2.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q 2019 Collar |
|
|
|
1,000
bbls |
|
|
|
$63 x 73 |
|
|
2H 2019 Collar |
|
|
|
1,000
bbls |
|
|
|
$63 x 73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q 2019 Swaps |
|
|
|
7,500
bbls |
|
|
|
$55.25 |
|
|
3Q 2019 Swaps |
|
|
|
7,250
bbls |
|
|
|
$55.50 |
|
|
4Q 2019 Swaps |
|
|
|
7,666
bbls |
|
|
|
$55.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 Swaps |
|
|
|
1,624
bbls |
|
|
|
$60.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
C2
Ethane |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q 2019 Swaps |
|
|
|
500
bbls |
|
|
|
$0.35/gallon |
|
|
|
|
|
|
|
|
|
|
|
|
|
C3
Propane |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q 2019 Collars |
|
|
|
1,000
bbls |
|
|
|
$0.90 x $0.96 /gallon |
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q 2019 Swaps |
|
|
|
8,500
bbls |
|
|
|
$0.878/gallon |
|
|
|
|
|
|
|
|
|
|
|
|
|
C5 Natural
Gasoline |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q 2019 Swaps |
|
|
|
5,000
bbls |
|
|
|
$1.341/gallon |
|
|
3Q 2019 Swaps |
|
|
|
1,500
bbls |
|
|
|
$1.472/gallon |
|
|
4Q 2019 Swaps |
|
|
|
1,500
bbls |
|
|
|
$1.475/gallon |
|
|
|
|
|
|
|
|
|
|
|
|
- Range also sold call swaptions of 20,000 Mmbtu/d for winter
2019/2020 and 290,000 Mmbtu/d for calendar 2020 at average strike
prices of $3.20 and $2.80 per Mmbtu, respectively
SEE WEBSITE FOR OTHER SUPPLEMENTAL
INFORMATION FOR THE PERIODS AND ADDITIONAL HEDGING
DETAILS
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