RANGE RESOURCES CORPORATION (NYSE: RRC) today
announced its fourth quarter and full-year 2019 financial
results.
Highlights –
- All-in 2019 capital spending was
$728 million, approximately $28 million less than the original
budget
- Sold assets for gross proceeds of
$785 million in 2019 to reduce debt
- Fourth quarter cash unit costs
improved by $0.26 per mcfe compared to prior year period
- Year-end proved reserves increased
to 18.2 Tcfe, with 95% from Marcellus Shale
- All-in 2020 capital budget of $520
million maintains production at ~2.3 Bcfe per day
- 2020 well costs expected to average
less than $610 per lateral foot in 2020, lowest in Appalachia
- Expanded credit facility to $2.4
billion in October 2019, making year-end 2019 liquidity $1.7
billion
Commenting on the results and 2020 plans, Jeff
Ventura, the Company’s CEO said, “Range made solid progress on key
strategic objectives in 2019. For the year, we reduced
absolute debt, lowered well costs, improved our cost structure and
delivered our operational plan for $28 million less than
budgeted. During the year, Range executed approximately $785
million in asset sales and, in January, refinanced $550 million of
nearer-term debt. These results reflect the organization’s
continuing focus on capital discipline and further strengthening
our financial position as we methodically develop the most prolific
natural gas and NGL play in North America.
The durability of Range’s high-quality resource
base is demonstrated in the year-end PV10 reserve value
of $7.6 billion, which equates to
approximately $17 per share, net of debt. Our
resilience is further demonstrated by the underlying efficiency of
our 2020 capital program that can maintain production at 2.3 Bcfe
per day for only $490 million of drilling and completion capital
without a change in lateral inventory. Looking forward, I
believe Range’s high-quality asset base, capital discipline and
peer-leading operational efficiencies provide a solid foundation
for creating stockholder value in the years ahead.”
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.
Fourth Quarter 2019 Results
GAAP revenues for fourth quarter 2019
totaled $606 million, GAAP net cash provided from operating
activities (including changes in working capital) was $132
million, and GAAP earnings was a loss of $1.8
billion ($7.27 per diluted share). As previously
disclosed in connection with Range’s recent notes offering, fourth
quarter earnings results include a $1.1 billion proved
property impairment and a $1.2 billion impairment of
unproved properties associated with Range’s North Louisiana
assets. Marcellus assets were not impaired during the quarter
and are not anticipated to be impaired based on the current market,
as the future undiscounted cash flows are materially above book
value. Fourth quarter also included an $18
million derivative gain due to decreases in commodity
prices.
Non-GAAP revenues for fourth quarter 2019
totaled $637 million, and cash flow from operations before
changes in working capital, a non-GAAP measure, was $175
million. Adjusted net income comparable to analysts’
estimates, a non-GAAP measure, was $21 million ($0.08 per
diluted share) in fourth quarter 2019.
The following table details Range’s average
production and realized pricing for fourth quarter 2019:
|
4Q19 Production & Realized Pricing |
|
|
Natural Gas(Mcf) |
|
Oil(Bbl) |
|
NGLs(Bbl) |
|
Natural GasEquivalent(Mcfe) |
|
|
|
|
|
|
|
|
|
Net Production per day |
|
|
1,638,135 |
|
|
|
10,461 |
|
|
|
107,381 |
|
|
|
2,345,187 |
|
|
|
|
|
|
|
|
|
|
Average NYMEX price |
|
$ |
2.50 |
|
|
$ |
56.86 |
|
|
|
|
|
Differential, including basis
hedging |
|
|
(0.31 |
) |
|
|
(8.21 |
) |
|
|
|
|
Realized prices before NYMEX
hedges |
|
|
2.19 |
|
|
|
48.65 |
|
|
$ |
17.52 |
|
|
$ |
2.53 |
|
Settled NYMEX hedges |
|
|
0.28 |
|
|
|
(0.12 |
) |
|
|
0.33 |
|
|
|
0.23 |
|
Average realized prices after
hedges |
|
$ |
2.47 |
|
|
$ |
48.53 |
|
|
$ |
17.85 |
|
|
$ |
2.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2019 natural gas, NGLs and oil price
realizations (including the impact of cash-settled hedges and
derivative settlements which correspond to analysts’ estimates)
averaged $2.76 per mcfe.
- The average natural gas price,
including the impact of basis hedging, was $2.19 per mcf, or a
($0.31) per mcf differential to NYMEX. Fourth quarter natural
gas differential was impacted by weak basis pricing in October and
November. Starting in December through early 2020, local
Appalachian basis has normalized while premium northeast markets
have weakened due to the warm winter season.
- Pre-hedge NGL realizations were
$17.52 per barrel, or $0.14 per barrel below the Mont Belvieu
weighted barrel, as shown on Supplemental Table 9 on the Company’s
website. Range continues to improve on its NGL pricing, as
the fourth quarter differential to Mont Belvieu was
another best in recent Company history. Range expects to
maintain a strong NGL differential during 2020 as a result of
access to international markets and its diversified portfolio of
sales agreements.
- Crude oil and condensate price
realizations, before realized hedges, averaged $48.65 per barrel,
or $8.21 below WTI.
The following table details Range’s fourth quarter
2019 unit costs per mcfe(a):
Expenses |
|
4Q 2019 (per mcfe) |
|
4Q 2018(per mcfe) |
|
|
Increase(Decrease) |
|
|
|
|
|
|
|
|
Direct operating |
|
$ |
0.15 |
|
|
$ |
0.18 |
|
|
|
(17 |
%) |
Transportation,
gathering, processing and compression |
|
|
1.39 |
|
|
|
1.51 |
|
|
|
(8 |
%) |
Production and ad valorem
taxes |
|
|
0.04 |
|
|
|
0.08 |
|
|
|
(50 |
%) |
General and
administrative(a) |
|
|
0.14 |
|
|
|
0.16 |
|
|
|
(13 |
%) |
Interest expense(a) |
|
|
0.19 |
|
|
|
0.25 |
|
|
|
(24 |
%) |
Total cash unit costs(b) |
|
|
1.92 |
|
|
|
2.18 |
|
|
|
(12 |
%) |
Depletion, depreciation
and amortization (DD&A) |
|
|
0.61 |
|
|
|
0.75 |
|
|
|
(19 |
%) |
Total unit costs plus DD&A(b) |
|
$ |
2.53 |
|
|
$ |
2.93 |
|
|
|
(14 |
%) |
(a) Excludes stock-based compensation, legal
settlements and amortization of deferred financing costs.(b)
May not add due to rounding.
Full-Year 2019
Results
GAAP revenues for 2019 totaled $2.8
billion, GAAP net cash provided from operating activities
(including changes in working capital) was $682 million, and
GAAP net income was a loss of $1.7
billion ($6.92 per diluted share). Full-year 2019
earnings results include $2.3 billion of impairments
associated with North Louisiana assets. Full-year 2019
results also included a $227 million derivative gain due
to decreases in commodity prices.
Non-GAAP revenues for 2019 totaled $2.8
billion, and cash flow from operations before changes in working
capital, a non-GAAP measure, was $729 million. Adjusted
net income comparable to analysts’ estimates, a non-GAAP measure,
was $98 million ($0.40 per diluted share) in 2019.
The following table details Range’s average
production and realized pricing for full-year 2019:
|
2019 Production & Realized Pricing |
|
|
Natural Gas(Mcf) |
|
Oil(Bbl) |
|
NGLs(Bbl) |
|
Natural GasEquivalent(Mcfe) |
|
|
|
|
|
|
|
|
|
Net Production per day |
|
|
1,583,875 |
|
|
|
10,109 |
|
|
|
106,439 |
|
|
|
2,283,162 |
|
|
|
|
|
|
|
|
|
|
Average NYMEX price |
|
$ |
2.62 |
|
|
$ |
57.21 |
|
|
|
|
|
Differential, including basis
hedging |
|
|
(0.19 |
) |
|
|
(6.95 |
) |
|
|
|
|
Realized prices before NYMEX
hedges |
|
|
2.43 |
|
|
|
50.26 |
|
|
$ |
17.53 |
|
|
$ |
2.71 |
|
Settled NYMEX hedges |
|
|
0.21 |
|
|
|
(0.52 |
) |
|
|
1.32 |
|
|
|
0.22 |
|
Average realized prices after
hedges |
|
$ |
2.64 |
|
|
$ |
49.74 |
|
|
$ |
18.85 |
|
|
$ |
2.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full year 2019 natural gas, NGLs and oil price
realizations (including the impact of cash-settled hedges and
derivative settlements which correspond to analysts’ estimates)
averaged $2.93 per mcfe. Additional detail on commodity price
realizations can be found in the Supplemental Tables provided on
the Company’s website.
The following table details Range’s calendar 2019
unit costs per mcfe(a):
Expenses |
|
FY 2019(per mcfe) |
|
FY 2018 (per mcfe) |
|
|
Increase(Decrease) |
|
|
|
|
|
|
|
|
Direct operating |
|
$ |
0.16 |
|
|
$ |
0.17 |
|
|
|
(6 |
%) |
Transportation,
gathering, processing and compression |
|
|
1.44 |
|
|
|
1.39 |
|
|
|
4 |
% |
Production and ad valorem
taxes |
|
|
0.05 |
|
|
|
0.06 |
|
|
|
(17 |
%) |
General and
administrative(a) |
|
|
0.17 |
|
|
|
0.19 |
|
|
|
(11 |
%) |
Interest expense |
|
|
0.22 |
|
|
|
0.26 |
|
|
|
(15 |
%) |
Total cash unit costs(b) |
|
|
2.04 |
|
|
|
2.07 |
|
|
|
(1 |
%) |
Depletion, depreciation
and amortization (DD&A) |
|
|
0.66 |
|
|
|
0.79 |
|
|
|
(16 |
%) |
Total unit costs plus DD&A(b) |
|
$ |
2.69 |
|
|
$ |
2.86 |
|
|
|
(6 |
%) |
(a) Excludes stock-based compensation, legal
settlements and amortization of deferred financing costs.(b)
May not add due to rounding.
Capital Expenditures
Fourth quarter 2019 drilling and completions
expenditures were $126 million and in addition $26 million was
spent on acreage. Total capital expenditures in 2019
were $728 million, including $667 million on drilling and
completion, $57 million on acreage purchases and $4 million on gas
gathering systems. Total capital expenditures in 2019 were
$28 million less than originally budgeted, driven by continued
improvement in Range’s drilling and completion efficiencies, water
recycling program, and service cost reductions.
Asset Sales
As previously announced, during 2019, Range sold
proportionately reduced 2.5% overriding royalty interests in
southwest Appalachia for gross proceeds totaling $750
million. Range maintains a net revenue interest of
approximately 79.5% on the subject acreage. Separately,
during the year, Range sold miscellaneous unproved property and
other legacy assets for $35 million. Net proceeds from sales
during the year were used to reduce bank debt. Additional
sale processes to monetize non-core assets remain
underway.
Financial Position and
Repurchase Programs
In October of 2019, Range increased bank
commitments from $2.0 billion to $2.4 billion. The borrowing
base of $3.0 billion remained unchanged and the maximum
facility amount remained $4.0 billion. Range also
initiated a share repurchase program in October, repurchasing 1.8
million shares during the fourth quarter for
approximately $6.9 million. At year-end 2019, Range had
approximately $93 million remaining on the $100
million repurchase program.
Range repurchased and retired
approximately $108 million in principal amount of its
senior notes during the fourth quarter. Total senior notes
repurchased during 2019 was approximately $202 million in
principal amount at an average weighted discount to par of 3%.
At December 31, 2019, Range had total debt
outstanding of $3.2 billion, consisting of $2.7
billion in senior notes, $477 million in bank debt
and $49 million in senior subordinated notes. As of
year-end, the Company had approximately $1.7 billion of borrowing
capacity available under the commitment amount.
In January 2020, Range issued $550.0 million
aggregate principal amount of 9.25% senior notes due 2026. On
the closing of the senior notes, proceeds were used to redeem $500
million aggregate principal amount of the Company’s senior notes
due 2021 and senior notes due 2022, which was completed in February
2020. Also announced in January, the Company suspended its
dividend, which was approximately $20 million annually,
to prioritize debt reduction.
Operational Discussion
Southwest Marcellus production for the fourth
quarter of 2019 averaged approximately 2,063 net Mmcfe per day, a
16% increase over the prior year period. The northeast
Marcellus assets averaged 98 net Mmcf per day during the quarter,
inclusive of approximately 10 net Mmcf per day of legacy acreage
production. North Louisiana production in the fourth quarter
averaged approximately 183 net Mmcfe per day.
Range brought on line 23 wells in southwest
Appalachia during the fourth quarter, six in the super-rich area,
10 in the wet area and seven in the dry area. During the
year, Range turned to sales a total of 84 Marcellus wells with an
average lateral length of 10,550 feet and seven wells in
Louisiana.
2020 Capital Spending Plans
Range’s 2020 capital budget is $520 million.
The capital budget includes approximately $490 million for
drilling and recompletions (94% of the total), $30 million for
leasehold and other capital expenditures. The Company expects
to turn to sales 72 Marcellus wells in 2020 with an expected
average lateral length of approximately 11,200 feet. Range
anticipates drilling approximately 810,000 feet of lateral in 2020
while turning to sales approximately 806,400 feet of lateral during
the year, keeping in-progress well inventory nearly unchanged going
into 2021.
The table below summarizes 2019 activity and
estimates for 2020 regarding the number of wells to sales in each
area.
|
|
Planned WellsTIL in 2020 |
|
Actual WellsTIL in 2019 |
SW PA Super-Rich |
|
9 |
|
25 |
SW PA Wet |
|
26 |
|
26 |
SW PA Dry |
|
37 |
|
33 |
Total Appalachia |
|
72 |
|
84 |
|
|
|
|
|
Total N. LA. |
|
- |
|
7 |
Total |
|
72 |
|
91 |
|
|
|
|
|
2019 Proved Reserves
Range previously announced 2019 proved reserves
in January. Highlights from the announcement were:
- Year-end 2019 SEC PV10 value of
proved reserves was $7.6 billion
- Year-end 2019 proved reserves
increase to 18.2 Tcfe, with 95% from Marcellus
- Future development costs for proved
undeveloped reserves estimated to be $0.35 per mcfe
Year-end 2019 reserves included 8.3 Tcfe of
proved undeveloped reserves from 442 wells planned to be developed
within the next five years. Beyond the five-year reserve
calculation window, Range has more than 2,800 additional Marcellus
locations available for development. Range also has a network
of over 200 existing well pads designed to accommodate an average
of 20 wells from any combination of Marcellus, Utica or Upper
Devonian horizons. On average, existing pads contain five
producing wells, providing Range the opportunity to develop
thousands of future wells while utilizing existing roads, pads and
infrastructure. Similar to prior years, approximately half of
the wells planned to turn to sales in 2020 are from pad sites with
existing production.
The table below reflects Range’s estimate of the
remaining core drilling inventory for the Marcellus.
|
Estimated Future Marcellus Drilling Locations - December
31, 2019(Excludes Utica and Upper Devonian locations) |
|
|
|
|
|
|
|
|
Area |
Net Acres |
|
AssumedLateral Length |
|
ProducingLocations(1) |
|
Undrilled Locations(2) |
SW Marcellus - Liquids areas |
~350,000 |
|
10,000 ft. |
|
445 |
|
2,700 |
SW Marcellus - Dry area |
~120,000 |
|
10,000 ft. |
|
180 |
|
600 |
Total |
~470,000 |
|
|
|
625 |
|
~3,300 |
(1) Producing locations adjusted to
10,000 foot equivalent(2) Includes anticipated
down-spacing activity
Guidance – 2020
Production per day Guidance
Production for full-year 2020 is expected to
average approximately 2.3 Bcfe per day, with ~30% attributed to
liquids production.
Full Year 2020 Expense
Guidance
Direct operating expense: |
$0.14 - $0.16 per mcfe |
Transportation, gathering, processing and compression expense:
(1) |
$1.40 - $1.45 per mcfe (1) |
Production tax expense: |
$0.04 - $0.05 per mcfe |
Exploration expense: |
$30.0 - $38.0 million |
G&A expense: |
$0.14 - $0.16 per mcfe |
Interest expense: |
$0.22 - $0.24 per mcfe |
DD&A expense: |
$0.48 - $0.52 per mcfe |
Net brokered gas marketing expense: |
$10.0 - $16.0 million |
(1) Transportation guidance reflects the
expected startup of Range’s Mariner East 2 capacity in April 2020,
which can be filled with existing production. When this capacity
starts, propane and butane volumes that had been transported by
rail and sold net of transport, will be transported via pipe with
sales price and transportation expense reported separately. The
impact to financial statements is an increase in transportation
expense, more than offset by an increase in realized NGL price. As
a result of lower transport costs and elimination of other fees,
the startup of this capacity provides annual uplift to cash flow in
excess of $5 million.
Full Year 2020 Price Guidance
Based on current market indications, Range
expects to average the following price differentials for its
production in 2020.
Natural Gas:(1) |
NYMEX minus $0.20 to $0.26 |
Natural Gas Liquids (including ethane):(2) |
Mont
Belvieu plus $0.50 to $1.50 per barrel |
Oil/Condensate: |
WTI minus $7.00 to $8.00 |
(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. At year-end
2019, Range had over 60% of its expected 2020 natural gas
production hedged at a weighted average floor price of $2.64 per
Mmbtu. Similarly, Range had hedged approximately 80% of its
2020 projected crude oil production at an average floor price of
$58.27 per barrel. Please see Range’s detailed hedging
schedule posted at the end of the financial tables below and on its
website under Supplemental Tables.
Range has also hedged Marcellus and other basis
differentials for natural gas and NGL exports to limit volatility
between benchmarks and regional prices. The combined fair
value of the natural gas and NGL basis hedges as of December 31,
2019 was a net loss of $4.7 million.
Conference Call Information
A conference call to review the financial
results is scheduled on Friday, February 28 at 9:00 a.m. ET. To
participate in the call, please dial 866-900-7525 and provide
conference code 6653428 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 March 28.
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). On its website, the Company
provides additional comparative information on prior periods along
with non-GAAP revenue disclosures.
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 income statement line 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 Annual Report
on Form 10-K. 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.
Finding and development cost per unit is a
non-GAAP metric used in the exploration and production industry by
companies, investors and analysts. Drill-bit development cost per
mcfe is based on estimated and unaudited drilling, development and
exploration costs incurred divided by the total of reserve
additions, performance and price revisions. These
calculations do not include the future development costs required
for the development of proved undeveloped reserves. This reserves
metric may not be comparable to similarly titled measurements used
by other companies. The U.S. Securities and Exchange
Commission (the “SEC”) method of computing finding costs contains
additional cost components and results in a higher number. A
reconciliation of the two methods is shown on our website at
www.rangeresources.com.
The reserve replacement ratio and finding and
development cost per unit are statistical indicators that have
limitations, including their predictive and comparative
value. As an annual measure, the reserve replacement ratio
can be limited because it may vary widely based on the extent and
timing of new discoveries and the varying effects of changes in
prices and well performance. In addition, since the reserve
replacement ratio and finding and development cost per unit do not
consider the cost or timing of future production of new reserves,
such measures may not be an adequate measure of value
creation.
We believe that the presentation of PV10 is
relevant and useful to our investors as supplemental disclosure to
the standardized measure, or after-tax amount, because it presents
the discounted future net cash flows attributable to our proved
reserves before taking into account future corporate income taxes
and our current tax structure. While the standardized measure is
dependent on the unique tax situation of each company, PV10 is
based on prices and discount factors that are consistent for all
companies. Because of this, PV10 can be used within the industry
and by creditors and security analysts to evaluate estimated net
cash flows from proved reserves on a more comparable basis.
RANGE RESOURCES CORPORATION (NYSE:
RRC) is a leading U.S. independent natural gas, NGL and
oil producer with operations focused on stacked-pay projects in the
Appalachian Basin. The Company pursues an organic development
strategy targeting high return, low-cost projects within its large
inventory of low risk drilling opportunities. The Company is
headquartered in Fort Worth, Texas. More information
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, Manager of Corporate Communications
724-873-3223 mwindle@rangeresources.com
RANGE RESOURCES CORPORATION
STATEMENTS OF OPERATIONS |
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Based on GAAP reported
earnings with additional |
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details of items included in
each line in Form 10-K |
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(Unaudited, in thousands,
except per share data) |
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Three Months Ended December 31, |
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Twelve Months Ended December 31, |
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2019 |
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2018 |
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% |
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2019 |
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2018 |
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% |
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Revenues and other income: |
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Natural gas, NGLs and oil sales (a) |
$ |
545,438 |
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$ |
756,627 |
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$ |
2,255,425 |
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$ |
2,851,077 |
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|
Derivative fair value income/(loss) |
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18,491 |
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|
100,698 |
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226,681 |
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(51,192 |
) |
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Brokered natural gas, marketing and other (b) |
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41,524 |
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215,270 |
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344,372 |
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482,044 |
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ARO settlement gain (loss) (b) |
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(2 |
) |
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(59 |
) |
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(13 |
) |
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(71 |
) |
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Other (b) |
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153 |
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|
101 |
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|
1,150 |
|
|
|
787 |
|
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Total revenues and other income |
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605,604 |
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|
1,072,637 |
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-44 |
% |
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|
2,827,615 |
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3,282,645 |
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-14 |
% |
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Costs and expenses: |
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Direct operating |
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33,323 |
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34,953 |
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134,348 |
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137,422 |
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Direct operating – non-cash stock-based compensation (c) |
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469 |
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442 |
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1,928 |
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|
2,109 |
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Transportation, gathering, processing and compression |
|
299,511 |
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298,716 |
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1,199,297 |
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|
1,117,816 |
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Production and ad valorem taxes |
|
8,963 |
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|
16,656 |
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37,967 |
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46,149 |
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Brokered natural gas and marketing |
|
46,199 |
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|
221,175 |
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358,036 |
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|
494,595 |
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Brokered natural gas and marketing – non-cash stock-based
compensation (c) |
|
333 |
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|
451 |
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1,856 |
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1,452 |
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Exploration |
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9,156 |
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10,206 |
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35,117 |
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|
32,196 |
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Exploration – non-cash stock-based compensation (c) |
|
194 |
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|
394 |
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|
1,566 |
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1,921 |
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Abandonment and impairment of unproved properties |
|
1,193,711 |
|
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|
441,750 |
|
|
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|
1,235,342 |
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|
514,994 |
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General and administrative |
|
30,269 |
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|
30,785 |
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137,694 |
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|
152,040 |
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General and administrative – non-cash stock-based compensation
(c) |
|
7,500 |
|
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|
5,474 |
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|
|
|
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|
35,061 |
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|
43,806 |
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General and administrative – lawsuit settlements |
|
542 |
|
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|
13,581 |
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|
2,577 |
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|
14,966 |
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General and administrative – rig release penalty |
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— |
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— |
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1,436 |
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— |
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General and administrative – bad debt expense |
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4,482 |
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250 |
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4,341 |
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(1,000 |
) |
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Termination costs |
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4,535 |
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— |
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7,535 |
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(373 |
) |
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Termination costs – non-cash stock-based compensation (c) |
|
1,946 |
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— |
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|
1,971 |
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— |
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Deferred compensation plan (d) |
|
960 |
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(18,072 |
) |
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(15,472 |
) |
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(18,631 |
) |
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Interest expense |
|
42,043 |
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|
50,237 |
|
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|
186,916 |
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|
205,970 |
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Interest expense – amortization of deferred financing costs
(e) |
|
1,981 |
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(1,076 |
) |
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|
7,369 |
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|
4,239 |
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Gain on early extinguishment of debt |
|
(2,430 |
) |
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|
— |
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|
|
|
|
(5,415 |
) |
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|
— |
|
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|
Depletion, depreciation and amortization |
|
130,869 |
|
|
|
147,909 |
|
|
|
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|
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|
548,843 |
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|
|
635,467 |
|
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|
Impairment of proved property |
|
1,095,634 |
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|
|
— |
|
|
|
|
|
|
|
1,095,634 |
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|
|
22,614 |
|
|
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Goodwill impairment |
|
— |
|
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|
1,641,197 |
|
|
|
|
|
|
|
— |
|
|
|
1,641,197 |
|
|
|
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|
(Gain) loss on sale of assets |
|
(407 |
) |
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|
10,815 |
|
|
|
|
|
|
|
30,256 |
|
|
|
10,666 |
|
|
|
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|
Total costs and expenses |
|
2,909,783 |
|
|
|
2,905,843 |
|
|
|
0 |
% |
|
|
5,044,203 |
|
|
|
5,059,615 |
|
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|
0 |
% |
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Loss before income taxes |
|
(2,304,179 |
) |
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|
(1,833,206 |
) |
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|
-26 |
% |
|
|
(2,216,588 |
) |
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|
(1,776,970 |
) |
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|
-25 |
% |
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Income tax expense
(benefit): |
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|
|
|
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|
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|
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Current |
|
2,068 |
|
|
|
— |
|
|
|
|
|
|
|
6,147 |
|
|
|
— |
|
|
|
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|
Deferred |
|
(500,927 |
) |
|
|
(68,784 |
) |
|
|
|
|
|
|
(506,438 |
) |
|
|
(30,489 |
) |
|
|
|
|
|
|
(498,859 |
) |
|
|
(68,784 |
) |
|
|
|
|
|
|
(500,291 |
) |
|
|
(30,489 |
) |
|
|
|
|
|
|
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|
|
|
|
|
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|
|
|
|
|
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|
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|
Net loss |
$ |
(1,805,320 |
) |
|
$ |
(1,764,422 |
) |
|
|
-2 |
% |
|
$ |
(1,716,297 |
) |
|
$ |
(1,746,481 |
) |
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net Loss Per Common
Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(7.27 |
) |
|
$ |
(7.15 |
) |
|
|
|
|
|
$ |
(6.92 |
) |
|
$ |
(7.10 |
) |
|
|
|
|
Diluted |
$ |
(7.27 |
) |
|
$ |
(7.15 |
) |
|
|
|
|
|
$ |
(6.92 |
) |
|
$ |
(7.10 |
) |
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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|
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|
Weighted average common shares
outstanding, as reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
248,277 |
|
|
|
246,631 |
|
|
|
1 |
% |
|
|
247,970 |
|
|
|
246,171 |
|
|
|
1 |
% |
Diluted |
|
248,277 |
|
|
|
246,631 |
|
|
|
1 |
% |
|
|
247,970 |
|
|
|
246,171 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
(a) See separate natural gas, NGLs and oil
sales information table.(b) Included in Brokered natural gas,
marketing and other revenues in the 10-K.(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-K.(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-K.
RANGE RESOURCES CORPORATION
BALANCE SHEETS |
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|
(In thousands) |
|
December 31, |
|
|
|
December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
(Audited) |
|
|
|
(Audited) |
|
Assets |
|
|
|
|
|
|
|
Current assets |
$ |
290,954 |
|
|
$ |
514,232 |
|
Derivative assets |
|
137,554 |
|
|
|
92,795 |
|
Natural gas and oil properties, successful efforts method |
|
6,041,035 |
|
|
|
9,023,185 |
|
Transportation and field assets |
|
5,375 |
|
|
|
9,776 |
|
Operating lease right-of-use assets |
|
62,053 |
|
|
|
— |
|
Other |
|
75,432 |
|
|
|
68,166 |
|
|
$ |
6,612,403 |
|
|
$ |
9,708,154 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’
Equity |
|
|
|
|
|
|
|
Current liabilities |
$ |
551,032 |
|
|
$ |
745,182 |
|
Asset retirement obligations |
|
2,393 |
|
|
|
5,485 |
|
Derivative liabilities |
|
13,119 |
|
|
|
4,144 |
|
|
|
|
|
|
|
|
|
Bank debt |
|
464,319 |
|
|
|
932,018 |
|
Senior notes |
|
2,659,844 |
|
|
|
2,856,166 |
|
Senior subordinated notes |
|
48,774 |
|
|
|
48,677 |
|
Total debt |
|
3,172,937 |
|
|
|
3,836,861 |
|
|
|
|
|
|
|
|
|
Deferred tax liability |
|
160,196 |
|
|
|
666,668 |
|
Derivative liabilities |
|
949 |
|
|
|
3,462 |
|
Deferred compensation liability |
|
64,070 |
|
|
|
67,542 |
|
Operating lease liabilities |
|
41,068 |
|
|
|
— |
|
Asset retirement obligations and other liabilities |
|
259,151 |
|
|
|
319,379 |
|
|
|
|
|
|
|
|
|
Common stock and retained earnings |
|
2,355,512 |
|
|
|
4,060,480 |
|
Other comprehensive loss |
|
(788 |
) |
|
|
(658 |
) |
Common stock held in treasury stock |
|
(7,236 |
) |
|
|
(391 |
) |
Total stockholders’ equity |
|
2,347,488 |
|
|
|
4,059,431 |
|
|
$ |
6,612,403 |
|
|
$ |
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 December 31, |
|
Twelve Months Ended December 31, |
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and other income,
as reported |
$ |
605,604 |
|
|
$ |
1,072,637 |
|
|
|
-44 |
% |
|
$ |
2,827,615 |
|
|
$ |
3,282,645 |
|
|
|
-14 |
% |
Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total change in fair value related to derivatives prior to
settlement (gain) loss |
|
31,544 |
|
|
|
(191,948 |
) |
|
|
|
|
|
|
(38,297 |
) |
|
|
(80,330 |
) |
|
|
|
|
ARO settlement (gain) loss |
|
2 |
|
|
|
59 |
|
|
|
|
|
|
|
13 |
|
|
|
71 |
|
|
|
|
|
Total revenues, as adjusted, non-GAAP |
$ |
637,150 |
|
|
$ |
880,748 |
|
|
|
-28 |
% |
|
$ |
2,789,331 |
|
|
$ |
3,202,386 |
|
|
|
-13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(1,805,320 |
) |
|
$ |
(1,764,422 |
) |
|
$ |
(1,716,297 |
) |
|
$ |
(1,746,481 |
) |
Adjustments to reconcile net
cash provided from continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax benefit |
|
(500,927 |
) |
|
|
(68,784 |
) |
|
|
(506,438 |
) |
|
|
(30,489 |
) |
Depletion, depreciation, amortization and impairment |
|
1,226,503 |
|
|
|
147,909 |
|
|
|
1,644,477 |
|
|
|
658,081 |
|
Goodwill impairment |
|
— |
|
|
|
1,641,197 |
|
|
|
— |
|
|
|
1,641,197 |
|
Exploration dry hole costs |
|
(11 |
) |
|
|
— |
|
|
|
(11 |
) |
|
|
4 |
|
Abandonment and impairment of unproved properties |
|
1,193,711 |
|
|
|
441,750 |
|
|
|
1,235,342 |
|
|
|
514,994 |
|
Derivative fair value loss (income) |
|
(18,491 |
) |
|
|
(100,698 |
) |
|
|
(226,681 |
) |
|
|
51,192 |
|
Cash settlements on derivative financial instruments that do not
qualify for hedge accounting |
|
50,035 |
|
|
|
(91,250 |
) |
|
|
188,384 |
|
|
|
(131,522 |
) |
Allowance for bad debts |
|
4,482 |
|
|
|
250 |
|
|
|
4,341 |
|
|
|
(1,000 |
) |
Amortization of deferred issuance costs, loss on extinguishment of
debt, and other |
|
1,593 |
|
|
|
(1,648 |
) |
|
|
6,455 |
|
|
|
2,515 |
|
Deferred and stock-based compensation |
|
10,481 |
|
|
|
(11,495 |
) |
|
|
24,891 |
|
|
|
29,757 |
|
(Gain) loss on sale of assets and other |
|
(407 |
) |
|
|
10,815 |
|
|
|
30,256 |
|
|
|
10,666 |
|
Gain on early extinguishment of debt |
|
(2,430 |
) |
|
|
— |
|
|
|
(5,415 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in working capital: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
(27,318 |
) |
|
|
(92,668 |
) |
|
|
214,196 |
|
|
|
(142,381 |
) |
Inventory and other |
|
8,544 |
|
|
|
960 |
|
|
|
4,520 |
|
|
|
138 |
|
Accounts payable |
|
(7,729 |
) |
|
|
2,255 |
|
|
|
(60,374 |
) |
|
|
(4,274 |
) |
Accrued liabilities and other |
|
(304 |
) |
|
|
101,572 |
|
|
|
(155,803 |
) |
|
|
138,293 |
|
Net changes in working capital |
|
(26,807 |
) |
|
|
12,119 |
|
|
|
2,539 |
|
|
|
(8,224 |
) |
Net cash provided from operating activities |
$ |
132,412 |
|
|
$ |
215,743 |
|
|
$ |
681,843 |
|
|
$ |
990,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Net cash provided from operating
activities, as reported |
$ |
132,412 |
|
|
$ |
215,743 |
|
|
$ |
681,843 |
|
|
$ |
990,690 |
|
Net changes in working capital |
|
26,807 |
|
|
|
(12,119 |
) |
|
|
(2,539 |
) |
|
|
8,224 |
|
Exploration expense |
|
9,167 |
|
|
|
10,206 |
|
|
|
35,128 |
|
|
|
32,192 |
|
Lawsuit settlements |
|
542 |
|
|
|
13,581 |
|
|
|
2,577 |
|
|
|
14,966 |
|
Termination costs |
|
4,535 |
|
|
|
— |
|
|
|
7,535 |
|
|
|
(373 |
) |
Rig release penalty |
|
— |
|
|
|
— |
|
|
|
1,436 |
|
|
|
— |
|
Non-cash compensation adjustment |
|
1,311 |
|
|
|
815 |
|
|
|
2,946 |
|
|
|
2,695 |
|
Cash flow from operations before changes in working capital –
non-GAAP measure |
$ |
174,774 |
|
|
$ |
228,226 |
|
|
$ |
728,926 |
|
|
$ |
1,048,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED WEIGHTED AVERAGE
SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
251,430 |
|
|
|
249,515 |
|
|
|
251,105 |
|
|
|
249,228 |
|
Stock held by deferred
compensation plan |
|
(3,153 |
) |
|
|
(2,884 |
) |
|
|
(3,135 |
) |
|
|
(3,057 |
) |
Adjusted basic |
|
248,277 |
|
|
|
246,631 |
|
|
|
247,970 |
|
|
|
246,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
251,430 |
|
|
|
249,515 |
|
|
|
251,105 |
|
|
|
249,228 |
|
Dilutive stock options under
treasury method |
|
(3,153 |
) |
|
|
(2,884 |
) |
|
|
(3,135 |
) |
|
|
(3,057 |
) |
Adjusted dilutive |
|
248,277 |
|
|
|
246,631 |
|
|
|
247,970 |
|
|
|
246,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
Natural gas, NGL and oil sales
components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
325,515 |
|
|
$ |
481,252 |
|
|
|
|
|
|
$ |
1,388,838 |
|
|
$ |
1,663,832 |
|
|
|
|
|
NGL sales |
|
173,099 |
|
|
|
225,566 |
|
|
|
|
|
|
|
681,134 |
|
|
|
931,359 |
|
|
|
|
|
Oil sales |
|
46,824 |
|
|
|
49,808 |
|
|
|
|
|
|
|
185,453 |
|
|
|
255,885 |
|
|
|
|
|
Total oil and gas sales, as reported |
$ |
545,438 |
|
|
$ |
756,626 |
|
|
|
-28 |
% |
|
$ |
2,255,425 |
|
|
$ |
2,851,076 |
|
|
|
-21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative fair value income
(loss), as reported: |
$ |
18,491 |
|
|
$ |
100,698 |
|
|
|
|
|
|
$ |
226,681 |
|
|
$ |
(51,192 |
) |
|
|
|
|
Cash settlements on derivative
financial instruments – (gain) loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
|
(46,920 |
) |
|
|
85,757 |
|
|
|
|
|
|
|
(139,253 |
) |
|
|
29,291 |
|
|
|
|
|
NGLs |
|
(3,233 |
) |
|
|
1,087 |
|
|
|
|
|
|
|
(51,068 |
) |
|
|
64,522 |
|
|
|
|
|
Crude Oil |
|
118 |
|
|
|
4,406 |
|
|
|
|
|
|
|
1,937 |
|
|
|
37,709 |
|
|
|
|
|
Total change in fair value
related to derivatives prior to settlement, a non-GAAP measure |
$ |
(31,544 |
) |
|
$ |
191,948 |
|
|
|
|
|
|
$ |
38,297 |
|
|
$ |
80,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering,
processing and compression components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
$ |
185,273 |
|
|
$ |
180,920 |
|
|
|
|
|
|
$ |
740,061 |
|
|
$ |
678,489 |
|
|
|
|
|
NGLs |
|
114,238 |
|
|
|
117,796 |
|
|
|
|
|
|
|
459,236 |
|
|
|
439,327 |
|
|
|
|
|
Total transportation, gathering, processing and compression, as
reported |
$ |
299,511 |
|
|
$ |
298,716 |
|
|
|
|
|
|
$ |
1,199,297 |
|
|
$ |
1,117,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and oil sales,
including cash-settled derivatives: (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
372,435 |
|
|
$ |
395,495 |
|
|
|
|
|
|
$ |
1,528,091 |
|
|
$ |
1,634,541 |
|
|
|
|
|
NGL sales |
|
176,332 |
|
|
|
224,479 |
|
|
|
|
|
|
|
732,202 |
|
|
|
866,837 |
|
|
|
|
|
Oil sales |
|
46,706 |
|
|
|
45,402 |
|
|
|
|
|
|
|
183,516 |
|
|
|
218,176 |
|
|
|
|
|
Total |
$ |
595,473 |
|
|
$ |
665,376 |
|
|
|
-11 |
% |
|
$ |
2,443,809 |
|
|
$ |
2,719,554 |
|
|
|
-10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas during
the periods (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
150,708,420 |
|
|
|
136,315,861 |
|
|
|
11 |
% |
|
|
578,114,351 |
|
|
|
548,085,437 |
|
|
|
5 |
% |
NGL (bbl) |
|
9,879,081 |
|
|
|
9,316,151 |
|
|
|
6 |
% |
|
|
38,850,130 |
|
|
|
38,325,251 |
|
|
|
1 |
% |
Oil (bbl) |
|
962,390 |
|
|
|
913,735 |
|
|
|
5 |
% |
|
|
3,689,805 |
|
|
|
4,228,429 |
|
|
|
-13 |
% |
Gas equivalent (mcfe) (b) |
|
215,757,246 |
|
|
|
197,695,177 |
|
|
|
9 |
% |
|
|
833,353,961 |
|
|
|
803,407,577 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas –
average per day (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
1,638,135 |
|
|
|
1,481,694 |
|
|
|
11 |
% |
|
|
1,583,875 |
|
|
|
1,501,604 |
|
|
|
5 |
% |
NGL (bbl) |
|
107,381 |
|
|
|
101,263 |
|
|
|
6 |
% |
|
|
106,439 |
|
|
|
105,001 |
|
|
|
1 |
% |
Oil (bbl) |
|
10,461 |
|
|
|
9,932 |
|
|
|
5 |
% |
|
|
10,109 |
|
|
|
11,585 |
|
|
|
-13 |
% |
Gas equivalent (mcfe)
(b) |
|
2,345,187 |
|
|
|
2,148,861 |
|
|
|
9 |
% |
|
|
2,283,162 |
|
|
|
2,201,117 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, excluding
derivative settlements and before third party transportation
costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
2.16 |
|
|
$ |
3.53 |
|
|
|
-39 |
% |
|
$ |
2.40 |
|
|
$ |
3.04 |
|
|
|
-21 |
% |
NGL (bbl) |
$ |
17.52 |
|
|
$ |
24.21 |
|
|
|
-28 |
% |
|
$ |
17.53 |
|
|
$ |
24.30 |
|
|
|
-28 |
% |
Oil (bbl) |
$ |
48.65 |
|
|
$ |
54.51 |
|
|
|
-11 |
% |
|
$ |
50.26 |
|
|
$ |
60.52 |
|
|
|
-17 |
% |
Gas equivalent (mcfe) (b) |
$ |
2.53 |
|
|
$ |
3.83 |
|
|
|
-34 |
% |
|
$ |
2.71 |
|
|
$ |
3.55 |
|
|
|
-24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including
derivative settlements before third party transportation costs:
(c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
2.47 |
|
|
$ |
2.90 |
|
|
|
-15 |
% |
|
$ |
2.64 |
|
|
$ |
2.98 |
|
|
|
-11 |
% |
NGL (bbl) |
$ |
17.85 |
|
|
$ |
24.10 |
|
|
|
-26 |
% |
|
$ |
18.85 |
|
|
$ |
22.62 |
|
|
|
-17 |
% |
Oil (bbl) |
$ |
48.53 |
|
|
$ |
49.69 |
|
|
|
-2 |
% |
|
$ |
49.74 |
|
|
$ |
51.60 |
|
|
|
-4 |
% |
Gas equivalent (mcfe) (b) |
$ |
2.76 |
|
|
$ |
3.37 |
|
|
|
-18 |
% |
|
$ |
2.93 |
|
|
$ |
3.39 |
|
|
|
-13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including
derivative settlements and after third party transportation
costs: (d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
1.24 |
|
|
$ |
1.57 |
|
|
|
-21 |
% |
|
$ |
1.36 |
|
|
$ |
1.74 |
|
|
|
-22 |
% |
NGL (bbl) |
$ |
6.29 |
|
|
$ |
11.45 |
|
|
|
-45 |
% |
|
$ |
7.03 |
|
|
$ |
11.15 |
|
|
|
-37 |
% |
Oil (bbl) |
$ |
48.53 |
|
|
$ |
49.69 |
|
|
|
-2 |
% |
|
$ |
49.74 |
|
|
$ |
51.60 |
|
|
|
-4 |
% |
Gas equivalent (mcfe) (b) |
$ |
1.37 |
|
|
$ |
1.85 |
|
|
|
-26 |
% |
|
$ |
1.49 |
|
|
$ |
1.99 |
|
|
|
-25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering and
compression expense per mcfe |
$ |
1.39 |
|
|
$ |
1.51 |
|
|
|
-8 |
% |
|
$ |
1.44 |
|
|
$ |
1.39 |
|
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Represents volumes sold regardless of
when produced.(b) Oil and NGLs volumes 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,
processing and compression costs.
RANGE RESOURCES CORPORATION
RECONCILIATION OF INCOME BEFORE INCOME TAXES
AS REPORTED TO INCOME BEFORE INCOME TAXES EXCLUDING CERTAIN
ITEMS, a non-GAAP measure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands, except
per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations before
income taxes, as reported |
$ |
(2,304,179 |
) |
|
$ |
(1,833,206 |
) |
|
|
-26 |
% |
|
$ |
(2,216,588 |
) |
|
$ |
(1,776,970 |
) |
|
|
-25 |
% |
Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale of assets |
|
(407 |
) |
|
|
10,815 |
|
|
|
|
|
|
|
30,256 |
|
|
|
10,666 |
|
|
|
|
|
Loss on ARO settlements |
|
2 |
|
|
|
59 |
|
|
|
|
|
|
|
13 |
|
|
|
71 |
|
|
|
|
|
Change in fair value related to derivatives prior to
settlement |
|
31,544 |
|
|
|
(191,948 |
) |
|
|
|
|
|
|
(38,297 |
) |
|
|
(80,330 |
) |
|
|
|
|
Rig release penalty |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
1,436 |
|
|
|
— |
|
|
|
|
|
Goodwill impairment |
|
— |
|
|
|
1,641,197 |
|
|
|
|
|
|
|
— |
|
|
|
1,641,197 |
|
|
|
|
|
Abandonment and impairment of unproved properties |
|
1,193,711 |
|
|
|
441,750 |
|
|
|
|
|
|
|
1,235,342 |
|
|
|
514,994 |
|
|
|
|
|
Gain on early extinguishment of debt |
|
(2,430 |
) |
|
|
— |
|
|
|
|
|
|
|
(5,415 |
) |
|
|
— |
|
|
|
|
|
Impairment of proved property |
|
1,095,634 |
|
|
|
— |
|
|
|
|
|
|
|
1,095,634 |
|
|
|
22,614 |
|
|
|
|
|
Lawsuit settlements |
|
542 |
|
|
|
13,581 |
|
|
|
|
|
|
|
2,577 |
|
|
|
14,966 |
|
|
|
|
|
Termination costs |
|
4,535 |
|
|
|
— |
|
|
|
|
|
|
|
7,535 |
|
|
|
(373 |
) |
|
|
|
|
Termination costs – non-cash stock-based compensation |
|
1,946 |
|
|
|
— |
|
|
|
|
|
|
|
1,971 |
|
|
|
— |
|
|
|
|
|
Brokered natural gas and marketing – non-cash stock-based
compensation |
|
333 |
|
|
|
451 |
|
|
|
|
|
|
|
1,856 |
|
|
|
1,452 |
|
|
|
|
|
Direct operating – non-cash stock-based compensation |
|
469 |
|
|
|
442 |
|
|
|
|
|
|
|
1,928 |
|
|
|
2,109 |
|
|
|
|
|
Exploration expenses – non-cash stock-based compensation |
|
194 |
|
|
|
394 |
|
|
|
|
|
|
|
1,566 |
|
|
|
1,921 |
|
|
|
|
|
General & administrative – non-cash stock-based
compensation |
|
7,500 |
|
|
|
5,474 |
|
|
|
|
|
|
|
35,061 |
|
|
|
43,806 |
|
|
|
|
|
Deferred compensation plan – non-cash adjustment |
|
960 |
|
|
|
(18,072 |
) |
|
|
|
|
|
|
(15,472 |
) |
|
|
(18,631 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes, as
adjusted |
|
30,354 |
|
|
|
70,937 |
|
|
|
-57 |
% |
|
|
139,403 |
|
|
|
377,492 |
|
|
|
-63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense, as
adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
2,068 |
|
|
|
— |
|
|
|
|
|
|
|
6,147 |
|
|
|
— |
|
|
|
|
|
Deferred (a) |
|
7,589 |
|
|
|
18,444 |
|
|
|
|
|
|
|
34,867 |
|
|
|
98,061 |
|
|
|
|
|
Net Income excluding certain items, a non-GAAP measure |
$ |
20,698 |
|
|
$ |
52,493 |
|
|
|
-61 |
% |
|
$ |
98,389 |
|
|
$ |
279,431 |
|
|
|
-65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income per common
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.08 |
|
|
$ |
0.21 |
|
|
|
-62 |
% |
|
$ |
0.40 |
|
|
$ |
1.14 |
|
|
|
-65 |
% |
Diluted |
$ |
0.08 |
|
|
$ |
0.21 |
|
|
|
-62 |
% |
|
$ |
0.40 |
|
|
$ |
1.13 |
|
|
|
-65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted shares
outstanding, if dilutive |
|
248,889 |
|
|
|
247,719 |
|
|
|
|
|
|
|
249,054 |
|
|
|
247,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 EndedDecember 31, |
|
Twelve Months EndedDecember 31, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss, as
reported |
$ |
(1,805,320 |
) |
|
$ |
(1,764,422 |
) |
|
$ |
(1,716,297 |
) |
|
$ |
(1,746,481 |
) |
Adjustment for certain
special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale of assets |
|
(407 |
) |
|
|
10,815 |
|
|
|
30,256 |
|
|
|
10,666 |
|
Loss (gain) on ARO settlements |
|
2 |
|
|
|
59 |
|
|
|
13 |
|
|
|
71 |
|
Gain on early extinguishment of debt |
|
(2,430 |
) |
|
|
— |
|
|
|
(5,415 |
) |
|
|
— |
|
Change in fair value related to derivatives prior to
settlement |
|
31,544 |
|
|
|
(191,948 |
) |
|
|
(38,297 |
) |
|
|
(80,330 |
) |
Goodwill impairment |
|
— |
|
|
|
1,641,197 |
|
|
|
— |
|
|
|
1,641,197 |
|
Impairment of proved property |
|
1,095,634 |
|
|
|
— |
|
|
|
1,095,634 |
|
|
|
22,614 |
|
Abandonment and impairment of unproved properties |
|
1,193,711 |
|
|
|
441,750 |
|
|
|
1,235,342 |
|
|
|
514,994 |
|
Lawsuit settlements |
|
542 |
|
|
|
13,581 |
|
|
|
2,577 |
|
|
|
14,966 |
|
Rig release penalty |
|
— |
|
|
|
— |
|
|
|
1,436 |
|
|
|
— |
|
Termination costs |
|
4,535 |
|
|
|
— |
|
|
|
7,535 |
|
|
|
(373 |
) |
Non-cash stock-based compensation |
|
10,442 |
|
|
|
6,761 |
|
|
|
42,382 |
|
|
|
49,288 |
|
Deferred compensation plan |
|
960 |
|
|
|
(18,072 |
) |
|
|
(15,472 |
) |
|
|
(18,631 |
) |
Tax impact |
|
(508,515 |
) |
|
|
(87,228 |
) |
|
|
(541,305 |
) |
|
|
(128,550 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding
certain items, a non-GAAP measure |
$ |
20,698 |
|
|
$ |
52,493 |
|
|
$ |
98,389 |
|
|
$ |
279,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per diluted
share, as reported |
$ |
(7.27 |
) |
|
$ |
(7.15 |
) |
|
$ |
(6.92 |
) |
|
$ |
(7.10 |
) |
Adjustment for certain
special items per diluted share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale of assets |
|
0.00 |
|
|
|
0.04 |
|
|
|
0.12 |
|
|
|
0.04 |
|
Loss (gain) on ARO settlements |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Gain on early extinguishment of debt |
|
(0.01 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
Change in fair value related to derivatives prior to
settlement |
|
0.13 |
|
|
|
(0.78 |
) |
|
|
(0.15 |
) |
|
|
(0.33 |
) |
Goodwill impairment |
|
— |
|
|
|
6.65 |
|
|
|
— |
|
|
|
6.67 |
|
Impairment of proved property |
|
4.41 |
|
|
|
— |
|
|
|
4.42 |
|
|
|
0.09 |
|
Abandonment and impairment of unproved properties |
|
4.81 |
|
|
|
1.79 |
|
|
|
4.98 |
|
|
|
2.09 |
|
Lawsuit settlements |
|
0.00 |
|
|
|
0.06 |
|
|
|
0.01 |
|
|
|
0.06 |
|
Termination costs |
|
0.02 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
0.00 |
|
Non-cash stock-based compensation |
|
0.04 |
|
|
|
0.03 |
|
|
|
0.17 |
|
|
|
0.20 |
|
Deferred compensation plan |
|
0.00 |
|
|
|
(0.07 |
) |
|
|
(0.06 |
) |
|
|
(0.08 |
) |
Adjustment for rounding differences |
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
0.01 |
|
Tax impact |
|
(2.05 |
) |
|
|
(0.35 |
) |
|
|
(2.18 |
) |
|
|
(0.52 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per diluted
share, excluding certain items, a non-GAAP
measure |
$ |
0.08 |
|
|
$ |
0.21 |
|
|
$ |
0.40 |
|
|
$ |
1.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share, a non-GAAP measure: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.08 |
|
|
$ |
0.21 |
|
|
$ |
0.40 |
|
|
$ |
1.13 |
|
Diluted |
$ |
0.08 |
|
|
$ |
0.21 |
|
|
$ |
0.40 |
|
|
$ |
1.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
RECONCILIATION OF CASH MARGIN PER MCFE, a
non-GAAP measure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands, except
per unit data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedDecember 31, |
|
Twelve Months EndedDecember 31, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and oil sales, as reported |
$ |
545,438 |
|
|
$ |
756,627 |
|
|
$ |
2,255,425 |
|
|
$ |
2,851,077 |
|
Derivative fair value income (loss), as reported |
|
18,491 |
|
|
|
100,698 |
|
|
|
226,681 |
|
|
|
(51,192 |
) |
Less non-cash fair value (gain) loss |
|
31,544 |
|
|
|
(191,948 |
) |
|
|
(38,297 |
) |
|
|
(80,330 |
) |
Brokered natural gas and marketing and other, as reported |
|
41,675 |
|
|
|
215,312 |
|
|
|
345,509 |
|
|
|
482,760 |
|
Less ARO settlement and other (gains) losses |
|
(151 |
) |
|
|
(42 |
) |
|
|
(1,137 |
) |
|
|
(716 |
) |
Cash revenue applicable to production |
|
636,997 |
|
|
|
880,647 |
|
|
|
2,788,181 |
|
|
|
3,201,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating, as reported |
|
33,792 |
|
|
|
35,395 |
|
|
|
136,276 |
|
|
|
139,531 |
|
Less direct operating stock-based compensation |
|
(469 |
) |
|
|
(442 |
) |
|
|
(1,928 |
) |
|
|
(2,109 |
) |
Transportation, gathering and compression, as reported |
|
299,511 |
|
|
|
298,716 |
|
|
|
1,199,297 |
|
|
|
1,117,816 |
|
Production and ad valorem taxes, as reported |
|
8,963 |
|
|
|
16,656 |
|
|
|
37,967 |
|
|
|
46,149 |
|
Brokered natural gas and marketing, as reported |
|
46,532 |
|
|
|
221,626 |
|
|
|
359,892 |
|
|
|
496,047 |
|
Less brokered natural gas and marketing
stock-based compensation |
|
(333 |
) |
|
|
(451 |
) |
|
|
(1,856 |
) |
|
|
(1,452 |
) |
General and administrative, as reported |
|
42,793 |
|
|
|
50,090 |
|
|
|
181,109 |
|
|
|
209,812 |
|
Less G&A stock-based compensation |
|
(7,500 |
) |
|
|
(5,474 |
) |
|
|
(35,061 |
) |
|
|
(43,806 |
) |
Less lawsuit settlements |
|
(542 |
) |
|
|
(13,581 |
) |
|
|
(2,577 |
) |
|
|
(14,966 |
) |
Less rig release penalty |
|
— |
|
|
|
— |
|
|
|
(1,436 |
) |
|
|
— |
|
Interest expense, as reported |
|
44,024 |
|
|
|
49,161 |
|
|
|
194,285 |
|
|
|
210,209 |
|
Less amortization of deferred financing costs |
|
(1,981 |
) |
|
|
1,076 |
|
|
|
(7,369 |
) |
|
|
(4,239 |
) |
Cash expenses |
|
464,790 |
|
|
|
652,772 |
|
|
|
2,058,599 |
|
|
|
2,152,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin, a non-GAAP
measure |
$ |
172,207 |
|
|
$ |
227,875 |
|
|
$ |
729,582 |
|
|
$ |
1,048,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mmcfe produced during period |
|
215,757 |
|
|
|
197,696 |
|
|
|
833,354 |
|
|
|
803,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per
mcfe |
$ |
0.80 |
|
|
$ |
1.15 |
|
|
$ |
0.88 |
|
|
$ |
1.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INCOME
(LOSS) BEFORE INCOME TAXES TO CASH
MARGIN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands, except
per unit data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedDecember 31, |
|
Twelve Months EndedDecember 31, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes,
as reported |
$ |
(2,304,179 |
) |
|
$ |
(1,833,206 |
) |
|
$ |
(2,216,588 |
) |
|
$ |
(1,776,970 |
) |
Adjustments to reconcile
income (loss) before income taxes to
cash margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARO settlements and other (gains) losses |
|
(151 |
) |
|
|
(42 |
) |
|
|
(1,137 |
) |
|
|
(716 |
) |
Derivative fair value (income) loss |
|
(18,491 |
) |
|
|
(100,698 |
) |
|
|
(226,681 |
) |
|
|
51,192 |
|
Net cash receipts on derivative settlements |
|
50,035 |
|
|
|
(91,250 |
) |
|
|
188,384 |
|
|
|
(131,522 |
) |
Exploration expense |
|
9,156 |
|
|
|
10,206 |
|
|
|
35,117 |
|
|
|
32,196 |
|
Lawsuit settlements |
|
542 |
|
|
|
13,581 |
|
|
|
2,577 |
|
|
|
14,966 |
|
Rig release penalty |
|
— |
|
|
|
— |
|
|
|
1,436 |
|
|
|
— |
|
Termination costs |
|
4,535 |
|
|
|
— |
|
|
|
7,535 |
|
|
|
(373 |
) |
Deferred compensation plan |
|
960 |
|
|
|
(18,072 |
) |
|
|
(15,472 |
) |
|
|
(18,631 |
) |
Stock-based compensation (direct operating, brokered natural
gas and marketing, general and administrative and termination
costs) |
|
10,442 |
|
|
|
6,761 |
|
|
|
42,382 |
|
|
|
49,288 |
|
Interest – amortization of deferred financing costs |
|
1,981 |
|
|
|
(1,076 |
) |
|
|
7,369 |
|
|
|
4,239 |
|
Depletion, depreciation and amortization |
|
130,869 |
|
|
|
147,909 |
|
|
|
548,843 |
|
|
|
635,467 |
|
(Gain) loss on sale of assets |
|
(407 |
) |
|
|
10,815 |
|
|
|
30,256 |
|
|
|
10,666 |
|
Gain on early extinguishment of debt |
|
(2,430 |
) |
|
|
— |
|
|
|
(5,415 |
) |
|
|
— |
|
Goodwill impairment |
|
— |
|
|
|
1,641,197 |
|
|
|
— |
|
|
|
1,641,197 |
|
Impairment of proved property and other assets |
|
1,095,634 |
|
|
|
— |
|
|
|
1,095,634 |
|
|
|
22,614 |
|
Abandonment and impairment of unproved properties |
|
1,193,711 |
|
|
|
441,750 |
|
|
|
1,235,342 |
|
|
|
514,994 |
|
Cash margin, a non-GAAP
measure |
$ |
172,207 |
|
|
$ |
227,875 |
|
|
$ |
729,582 |
|
|
$ |
1,048,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
HEDGING POSITION AS OF DECEMBER 31, 2019 –
(Unaudited)
|
|
Daily Volume |
|
Hedge Price |
|
Gas
1 |
|
|
|
|
|
|
|
|
|
1Q 2020 Swaps |
1,007,253 Mmbtu |
|
$2.68 |
|
2Q 2020 Swaps |
1,021,222 Mmbtu |
|
$2.62 |
|
3Q 2020 Swaps |
1,010,000 Mmbtu |
|
$2.62 |
|
4Q 2020 Swaps |
976,848 Mmbtu |
|
$2.63 |
|
|
|
|
|
|
2021 Swaps |
50,000 Mmbtu |
|
$2.62 |
|
|
|
|
|
|
Oil 2 |
|
|
|
|
|
|
|
|
|
1Q 2020 Swaps |
9,000 bbls |
|
$58.62 |
|
2Q 2020 Swaps |
9,000 bbls |
|
$58.18 |
|
3Q 2020 Swaps |
8,500 bbls |
|
$58.15 |
|
4Q 2020 Swaps |
5,500 bbls |
|
$58.00 |
|
|
|
|
|
|
2021 Swaps |
1,000 bbls |
|
$55.00 |
|
|
|
|
|
|
C4 Normal
Butane |
|
|
|
|
|
|
|
|
|
1Q 2020 Swaps |
659 bbls |
|
$0.73/gallon |
|
|
|
|
|
|
C5 Natural
Gasoline |
|
|
|
|
|
|
|
|
|
1Q 2020 Swaps |
4,297 bbls |
|
$1.208/gallon |
|
|
|
|
|
(1) Range also sold natural gas call swaptions of 140,000
Mmbtu/d for March-December 2020 and 100,000 Mmbtu/d for calendar
2021 at average strike prices of $2.53 per Mmbtu and $2.69 per
Mmbtu, respectively.(2) Range also sold WTI calls of 500
Bbls/d for April-September 2020 at a strike price of $59 per barrel
and sold WTI call swaptions of 3,000 Bbls/d for calendar 2021 at an
average strike price of $56.50 per barrel.
SEE WEBSITE FOR OTHER SUPPLEMENTAL
INFORMATION FOR THE PERIODSAND ADDITIONAL HEDGING
DETAILS
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