RANGE RESOURCES CORPORATION (NYSE: RRC) today
announced its third quarter 2023 financial results.
Third Quarter 2023 Highlights
–
- Cash flow from operating activities
of $150 million
- Cash flow from operations, before
working capital changes, of $240 million
- Capital spending was $151
million, approximately 25% of the 2023 budget
- Production averaged 2.12 Bcfe per
day, approximately 68% natural gas
- Price realizations including hedges
of $3.09 per mcfe – premium of $0.54 over NYMEX natural gas
- NGL realizations of $24.44 per
barrel – premium of $0.63 over Mont Belvieu equivalent
- Natural gas differentials,
including basis hedging, averaged ($0.56) per mcf to NYMEX
Commenting on the quarter, Dennis Degner, the
Company’s CEO said, “Third quarter results continued to showcase
the resilience of Range’s business. Range’s competitive cost
structure, low relative capital intensity, liquids optionality and
thoughtful hedging allowed us to generate strong full-cycle margins
despite challenged natural gas prices. Strong operational
execution, longer laterals, and consistent well results are driving
a 2023 maintenance production plan that requires only 51 wells to
be turned to sales this year. The Range team remains focused on
efficiently developing our Marcellus assets to create value for
shareholders into what we expect is an improving macro outlook for
natural gas and natural gas liquids.”
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, taxes other than income,
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.
Third Quarter 2023 Results
GAAP revenues for third quarter 2023
totaled $610 million, GAAP net cash provided from operating
activities (including changes in working capital) was $150
million, and GAAP net income was $49 million ($0.20 per
diluted share). Third quarter earnings results include
a $38 million mark-to-market derivative gain due to
decreases in commodity prices.
Non-GAAP revenues for third quarter 2023
totaled $649 million, and cash flow from operations before
changes in working capital, a non-GAAP measure, was $240
million. Adjusted net income comparable to analysts’
estimates, a non-GAAP measure, was $111 million ($0.46 per
diluted share) in third quarter 2023.
The following table details Range’s third
quarter 2023 unit costs per mcfe(a):
|
Expenses |
|
3Q 2023 (per mcfe) |
|
3Q 2022(per mcfe) |
|
Increase (Decrease) |
| |
|
|
|
|
|
|
|
Direct operating(a) |
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
0% |
| Transportation, gathering,
processing and compression(a) |
|
|
1.42 |
|
|
|
1.65 |
|
|
(14%) |
| Taxes other than income |
|
|
0.02 |
|
|
|
0.05 |
|
|
(60%) |
| General and
administrative(a) |
|
|
0.15 |
|
|
|
0.15 |
|
|
0% |
| Interest expense(a) |
|
|
0.15 |
|
|
|
0.19 |
|
|
(21%) |
|
Total cash unit costs(b) |
|
|
1.86 |
|
|
|
2.15 |
|
|
(13%) |
| Depletion, depreciation and
amortization (DD&A) |
|
|
0.45 |
|
|
|
0.46 |
|
|
(2%) |
|
Total unit costs plus DD&A(b) |
|
$ |
2.31 |
|
|
$ |
2.61 |
|
|
(12%) |
(a) Excludes stock-based
compensation, one-time settlements, and amortization of deferred
financing costs.(b) Totals may not be exact due to
rounding.
The following table details Range’s average
production and realized pricing for third quarter 2023(a):
| |
3Q23 Production & Realized Pricing |
| |
|
Natural Gas(Mcf) |
|
Oil(Bbl) |
|
NGLs(Bbl) |
|
Natural GasEquivalent (Mcfe) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net production per day |
|
|
1,448,972 |
|
|
|
6,386 |
|
|
|
105,957 |
|
|
|
2,123,027 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Average NYMEX price |
|
$ |
2.55 |
|
|
$ |
82.12 |
|
|
$ |
23.81 |
|
|
|
|
|
| Differential, including basis
hedging |
|
|
(0.56 |
) |
|
|
(11.43 |
) |
|
|
0.63 |
|
|
|
|
|
| Realized prices before NYMEX
hedges |
|
|
1.99 |
|
|
|
70.69 |
|
|
|
24.44 |
|
|
|
2.79 |
|
| Settled NYMEX hedges |
|
|
0.48 |
|
|
|
(8.56 |
) |
|
|
— |
|
|
|
0.30 |
|
| Average realized prices after
hedges |
|
$ |
2.47 |
|
|
$ |
62.13 |
|
|
$ |
24.44 |
|
|
$ |
3.09 |
|
(a) Totals may not be exact due
to rounding
Third quarter 2023 natural gas, NGLs and oil
price realizations (including the impact of cash-settled hedges and
derivative settlements) averaged $3.09 per mcfe.
- The average natural gas price,
including the impact of basis hedging, was $1.99 per mcf, or a
($0.56) per mcf differential to NYMEX. The Company now expects
full-year 2023 natural gas differentials versus NYMEX to be within
a range of ($0.40) to ($0.45) per mcf.
- Range’s pre-hedge NGL price during
the quarter was $24.44 per barrel, approximately $0.63 above the
Mont Belvieu weighted equivalent. Fourth quarter 2023 differentials
are expected to fall within the range of minus $1.00 to plus $1.00
per barrel, resulting in a premium differential for full year
2023.
- Crude oil and condensate price
realizations, before realized hedges, averaged $70.69 per barrel,
or $11.43 below WTI (West Texas Intermediate). Range continues to
expect the 2023 condensate differential to average $9.00-$13.00
below WTI.
Capital Expenditures and Operational
Activity
Third quarter 2023 drilling and completion
expenditures were $146 million. In addition, during the quarter,
approximately $5 million was invested in acreage leasehold,
gathering systems and other. Total capital spending through third
quarter was $478 million, representing approximately 80% of Range’s
capital budget for 2023. The table below summarizes
expected 2023 activity regarding the number of wells to sales in
each area. Range still expects to turn to sales approximately
650,000 feet of lateral this year, though longer laterals have
reduced the number of wells required versus original plans for 61
wells in 2023.
|
|
Wells TIL3Q 2023 |
|
2023Planned TIL |
|
Remaining2023 |
| SW PA Super-Rich |
0 |
|
3 |
|
0 |
| SW PA Wet |
6 |
|
25 |
|
9 |
| SW PA Dry |
13 |
|
20 |
|
0 |
| NE PA Dry |
0 |
|
3 |
|
3 |
|
Total Wells |
19 |
|
51 |
|
12 |
Financial Position and Buyback
Activity
As of September 30, 2023, Range had net
debt outstanding of approximately $1.63 billion, consisting of
$1.79 billion of senior notes and $163 million in cash. Range did
not repurchase shares during the third quarter.
Guidance – 2023
Capital & Production Guidance
Range is targeting a maintenance program in
2023, resulting in approximately flat production at 2.12 – 2.16
Bcfe per day, with ~30% attributed to liquids production. Range’s
2023 all-in capital budget is $570 million - $615 million.
Updated Full Year 2023 Expense
Guidance
|
Direct operating expense: |
$0.11 - $0.13 per mcfe |
| Transportation, gathering,
processing and compression expense: |
$1.43 - $1.46 per mcfe |
| Taxes other than income: |
$0.04 - $0.05 per mcfe |
| Exploration expense: |
$22 - $28 million |
| G&A expense: |
$0.17 - $0.19 per mcfe |
| Interest expense: |
$0.14 - $0.16 per mcfe |
| DD&A expense: |
$0.46 - $0.48 per mcfe |
| Net brokered gas marketing
expense: |
$0 - $5 million |
Updated 2023 Price
Guidance
Based on recent market indications, Range expects to average the
following price differentials for its production.
| FY
2023 Natural Gas:(1) |
NYMEX minus $0.40 to $0.45 |
| 4Q 2023 Natural Gas
Liquids:(2) |
MB minus $1.00 to +$1.00 per barrel |
| FY 2023 Oil/Condensate: |
WTI minus $9.00 to $13.00 |
(1) Including basis hedging(2) Mont Belvieu-equivalent pricing
based on weighting of 53% ethane, 27% propane, 8% normal butane, 4%
iso-butane and 8% natural gasoline.
Hedging Status
Range hedges portions of its expected future
production volumes to increase the predictability of cash flow and
to help improve and maintain a strong, flexible financial position.
Please see the detailed hedging schedule posted on the Range
website under Investor Relations - Financial Information.
Range has also hedged basis across the Company’s
numerous natural gas sales points to limit volatility between
benchmark and regional prices. The combined fair value of natural
gas basis hedges as of September 30, 2023, was a net gain of $17.1
million.
Conference Call Information
A conference call to review the financial results is scheduled
on Wednesday, October 25 at 8:00 AM Central Time (9:00 AM
Eastern Time). Please click here to pre-register for the
conference call and obtain a dial in number with passcode.
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 November 24th.
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 or
Quarterly Reports on Form 10-K or 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. We believe that the presentation of PV10 value
of our proved reserves is a relevant and useful metric for 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 credit 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 and NGL
producer with operations focused in the Appalachian Basin. The
Company is headquartered in Fort Worth, Texas. More
information about Range can be found
at www.rangeresources.com.
Included within this release are certain
“forward-looking statements” within the meaning of the federal
securities laws, including the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, that are not
limited to historical facts, but reflect Range’s current beliefs,
expectations or intentions regarding future events. Words
such as “may,” “will,” “could,” “should,” “expect,” “plan,”
“project,” “intend,” “anticipate,” “believe,” “outlook”,
“estimate,” “predict,” “potential,” “pursue,” “target,” “continue,”
and similar expressions are intended to identify such
forward-looking statements.
All statements, except for statements of
historical fact, made within regarding activities, events or
developments the Company expects, believes or anticipates will or
may occur in the future, such as those regarding future well costs,
expected asset sales, well productivity, future liquidity and
financial resilience, anticipated exports and related financial
impact, NGL market supply and demand, future 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 or
drilling cost changes. 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.
SOURCE: Range Resources Corporation
Range Investor
Contact:
Laith Sando, Vice President –
Investor Relations817-869-4267lsando@rangeresources.com
Range Media
Contact:
Mark Windle, Director of Corporate
Communications724-873-3223mwindle@rangeresources.com
| |
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RANGE RESOURCES CORPORATION |
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| 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-Q |
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| (Unaudited, in thousands, except
per share data) |
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Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
% |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
% |
|
| |
|
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| Revenues and other
income: |
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGLs and oil sales (a) |
$ |
526,718 |
|
|
$ |
1,435,152 |
|
|
|
|
|
|
$ |
1,731,382 |
|
|
$ |
3,824,395 |
|
|
|
|
|
|
Derivative fair value income (loss) |
|
38,394 |
|
|
|
(457,708 |
) |
|
|
|
|
|
|
530,095 |
|
|
|
(1,636,687 |
) |
|
|
|
|
|
Brokered natural gas, marketing and other (b) |
|
43,325 |
|
|
|
132,681 |
|
|
|
|
|
|
|
162,092 |
|
|
|
326,441 |
|
|
|
|
|
|
ARO settlement (loss) gain (b) |
|
(1 |
) |
|
|
8 |
|
|
|
|
|
|
|
(1 |
) |
|
|
8 |
|
|
|
|
|
|
Interest income (b) |
|
1,279 |
|
|
|
381 |
|
|
|
|
|
|
|
4,016 |
|
|
|
422 |
|
|
|
|
|
|
Other (b) |
|
9 |
|
|
|
31 |
|
|
|
|
|
|
|
5,477 |
|
|
|
1,845 |
|
|
|
|
|
|
Total revenues and other income |
|
609,724 |
|
|
|
1,110,545 |
|
|
|
-45 |
% |
|
|
2,433,061 |
|
|
|
2,516,424 |
|
|
|
-3 |
% |
|
|
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|
|
|
|
|
|
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| Costs and expenses: |
|
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|
|
|
|
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|
|
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|
Direct operating |
|
22,123 |
|
|
|
20,918 |
|
|
|
|
|
|
|
72,162 |
|
|
|
60,545 |
|
|
|
|
|
|
Direct operating – stock-based compensation (c) |
|
439 |
|
|
|
372 |
|
|
|
|
|
|
|
1,280 |
|
|
|
1,083 |
|
|
|
|
|
|
Transportation, gathering, processing and compression |
|
277,207 |
|
|
|
323,019 |
|
|
|
|
|
|
|
830,880 |
|
|
|
941,213 |
|
|
|
|
|
|
Transportation, gathering, processing and compression –
settlements |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
7,500 |
|
|
|
|
|
|
Taxes other than income |
|
4,756 |
|
|
|
9,057 |
|
|
|
|
|
|
|
19,643 |
|
|
|
24,189 |
|
|
|
|
|
|
Brokered natural gas and marketing |
|
45,723 |
|
|
|
126,622 |
|
|
|
|
|
|
|
156,470 |
|
|
|
328,649 |
|
|
|
|
|
|
Brokered natural gas and marketing – stock-based compensation
(c) |
|
483 |
|
|
|
663 |
|
|
|
|
|
|
|
1,604 |
|
|
|
1,868 |
|
|
|
|
|
|
Exploration |
|
6,658 |
|
|
|
7,105 |
|
|
|
|
|
|
|
18,087 |
|
|
|
18,540 |
|
|
|
|
|
|
Exploration – stock-based compensation (c) |
|
312 |
|
|
|
393 |
|
|
|
|
|
|
|
935 |
|
|
|
1,163 |
|
|
|
|
|
|
Abandonment and impairment of unproved properties |
|
11,012 |
|
|
|
3,186 |
|
|
|
|
|
|
|
44,308 |
|
|
|
12,319 |
|
|
|
|
|
|
General and administrative |
|
29,581 |
|
|
|
30,085 |
|
|
|
|
|
|
|
93,366 |
|
|
|
92,992 |
|
|
|
|
|
|
General and administrative – stock-based compensation (c) |
|
8,446 |
|
|
|
10,402 |
|
|
|
|
|
|
|
26,461 |
|
|
|
32,245 |
|
|
|
|
|
|
General and administrative – lawsuit settlements |
|
66 |
|
|
|
81 |
|
|
|
|
|
|
|
938 |
|
|
|
776 |
|
|
|
|
|
|
Exit costs |
|
10,684 |
|
|
|
11,065 |
|
|
|
|
|
|
|
71,661 |
|
|
|
58,249 |
|
|
|
|
|
|
Deferred compensation plan (d) |
|
8,997 |
|
|
|
5,795 |
|
|
|
|
|
|
|
29,546 |
|
|
|
59,917 |
|
|
|
|
|
|
Interest expense |
|
29,260 |
|
|
|
37,173 |
|
|
|
|
|
|
|
89,886 |
|
|
|
121,137 |
|
|
|
|
|
|
Interest expense – amortization of deferred financing costs
(e) |
|
1,339 |
|
|
|
1,563 |
|
|
|
|
|
|
|
4,032 |
|
|
|
6,775 |
|
|
|
|
|
|
(Gain) loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
(439 |
) |
|
|
69,232 |
|
|
|
|
|
|
Depletion, depreciation and amortization |
|
87,619 |
|
|
|
90,471 |
|
|
|
|
|
|
|
259,197 |
|
|
|
262,573 |
|
|
|
|
|
|
Gain on sale of assets |
|
(109 |
) |
|
|
(135 |
) |
|
|
|
|
|
|
(353 |
) |
|
|
(548 |
) |
|
|
|
|
|
Total costs and expenses |
|
544,596 |
|
|
|
677,835 |
|
|
|
-20 |
% |
|
|
1,719,664 |
|
|
|
2,100,417 |
|
|
|
-18 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income
taxes |
|
65,128 |
|
|
|
432,710 |
|
|
|
-85 |
% |
|
|
713,397 |
|
|
|
416,007 |
|
|
|
71 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
601 |
|
|
|
6,981 |
|
|
|
|
|
|
|
3,000 |
|
|
|
20,732 |
|
|
|
|
|
|
Deferred |
|
15,097 |
|
|
|
52,642 |
|
|
|
|
|
|
|
149,289 |
|
|
|
26,141 |
|
|
|
|
|
|
|
|
15,698 |
|
|
|
59,623 |
|
|
|
|
|
|
|
152,289 |
|
|
|
46,873 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
$ |
49,430 |
|
|
$ |
373,087 |
|
|
|
-87 |
% |
|
$ |
561,108 |
|
|
$ |
369,134 |
|
|
|
52 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Income Per Common
Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.20 |
|
|
$ |
1.52 |
|
|
|
|
|
|
$ |
2.30 |
|
|
$ |
1.48 |
|
|
|
|
|
|
Diluted |
$ |
0.20 |
|
|
$ |
1.49 |
|
|
|
|
|
|
$ |
2.27 |
|
|
$ |
1.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common shares
outstanding, as reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
241,338 |
|
|
|
239,768 |
|
|
|
1 |
% |
|
|
239,455 |
|
|
|
242,850 |
|
|
|
-1 |
% |
|
Diluted |
|
243,937 |
|
|
|
245,023 |
|
|
|
0 |
% |
|
|
242,144 |
|
|
|
248,360 |
|
|
|
-3 |
% |
|
|
(a) |
See separate natural gas, NGLs and oil sales information
table. |
|
|
(b) |
Included in Brokered natural gas, marketing and other revenues in
the 10-Q. |
|
|
(c) |
Costs associated with stock compensation and restricted stock
amortization, which have been reflected in the categories
associated with the direct personnel costs, which are combined with
the cash costs in the 10-Q. |
|
|
(d) |
Reflects the change in market value of the vested Company stock
held in the deferred compensation plan. |
|
|
(e) |
Included in interest expense in the 10-Q. |
|
|
|
|
|
RANGE RESOURCES CORPORATION |
| |
|
BALANCE SHEETS |
|
|
|
|
|
|
|
| (In thousands) |
|
September 30, |
|
|
|
December 31, |
|
| |
|
2023 |
|
|
|
2022 |
|
| |
|
(Unaudited) |
|
|
|
(Audited) |
|
| Assets |
|
|
|
|
|
|
|
|
Current assets |
$ |
422,571 |
|
|
$ |
538,662 |
|
|
Derivative assets |
|
217,020 |
|
|
|
41,915 |
|
|
Natural gas and oil properties, successful efforts method |
|
6,071,332 |
|
|
|
5,890,404 |
|
|
Other property and equipment |
|
1,562 |
|
|
|
2,434 |
|
|
Operating lease right-of-use assets |
|
37,801 |
|
|
|
84,070 |
|
|
Other |
|
95,649 |
|
|
|
68,077 |
|
|
|
$ |
6,845,935 |
|
|
$ |
6,625,562 |
|
| |
|
|
|
|
|
|
|
| Liabilities and Stockholders’
Equity |
|
|
|
|
|
|
|
|
Current liabilities |
$ |
638,943 |
|
|
$ |
864,678 |
|
|
Asset retirement obligations |
|
4,570 |
|
|
|
4,570 |
|
|
Derivative liabilities |
|
— |
|
|
|
151,417 |
|
|
|
|
|
|
|
|
|
|
|
Bank debt |
|
— |
|
|
|
9,509 |
|
|
Senior notes |
|
1,773,436 |
|
|
|
1,832,451 |
|
|
Total debt |
|
1,773,436 |
|
|
|
1,841,960 |
|
| |
|
|
|
|
|
|
|
|
Deferred tax liabilities |
|
482,869 |
|
|
|
333,571 |
|
|
Derivative liabilities |
|
417 |
|
|
|
15,495 |
|
|
Deferred compensation liabilities |
|
65,404 |
|
|
|
99,907 |
|
|
Operating lease liabilities |
|
17,605 |
|
|
|
20,903 |
|
|
Asset retirement obligations and other liabilities |
|
115,243 |
|
|
|
112,981 |
|
|
Divestiture contract obligation |
|
299,868 |
|
|
|
304,074 |
|
| |
|
|
|
|
|
|
|
|
Common stock and retained deficit |
|
3,886,387 |
|
|
|
3,305,198 |
|
|
Other comprehensive loss |
|
495 |
|
|
|
467 |
|
|
Common stock held in treasury |
|
(439,302 |
) |
|
|
(429,659 |
) |
|
Total stockholders’ equity |
|
3,447,580 |
|
|
|
2,876,006 |
|
|
|
$ |
6,845,935 |
|
|
$ |
6,625,562 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| RECONCILIATION OF TOTAL
REVENUES AND OTHER INCOME TO TOTAL REVENUE EXCLUDING CERTAIN ITEMS,
a non-GAAP measure |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months EndedSeptember 30, |
|
|
Nine Months EndedSeptember 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
% |
|
|
|
2023 |
|
|
|
2022 |
|
|
% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues and other
income, as reported |
$ |
609,724 |
|
|
$ |
1,110,545 |
|
|
-45 |
% |
|
$ |
2,433,061 |
|
|
$ |
2,516,424 |
|
|
-3 |
% |
| Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total change in fair value related to derivatives prior to
settlement loss (gain) |
|
39,048 |
|
|
|
(6,969 |
) |
|
|
|
|
|
(341,599 |
) |
|
|
631,165 |
|
|
|
|
|
ARO settlement loss (gain) |
|
1 |
|
|
|
(8 |
) |
|
|
|
|
|
1 |
|
|
|
(8 |
) |
|
|
|
| Total revenues, as adjusted,
non-GAAP |
$ |
648,773 |
|
|
$ |
1,103,568 |
|
|
-41 |
% |
|
$ |
2,091,463 |
|
|
$ |
3,147,581 |
|
|
-34 |
% |
|
|
|
RANGE RESOURCES CORPORATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM OPERATING
ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Unaudited in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
$ |
49,430 |
|
|
$ |
373,087 |
|
|
$ |
561,108 |
|
|
$ |
369,134 |
|
| Adjustments to reconcile net
cash provided from continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax expense |
|
15,097 |
|
|
|
52,642 |
|
|
|
149,289 |
|
|
|
26,141 |
|
|
Depletion, depreciation and amortization |
|
87,619 |
|
|
|
90,471 |
|
|
|
259,197 |
|
|
|
262,573 |
|
|
Abandonment and impairment of unproved properties |
|
11,012 |
|
|
|
3,186 |
|
|
|
44,308 |
|
|
|
12,319 |
|
|
Derivative fair value (income) loss |
|
(38,394 |
) |
|
|
457,708 |
|
|
|
(530,095 |
) |
|
|
1,636,687 |
|
|
Cash settlements on derivative financial instruments |
|
77,442 |
|
|
|
(464,677 |
) |
|
|
188,496 |
|
|
|
(1,005,522 |
) |
|
Divestiture contract obligation, including accretion |
|
10,606 |
|
|
|
10,930 |
|
|
|
71,380 |
|
|
|
57,791 |
|
|
Amortization of deferred issuance costs and other |
|
997 |
|
|
|
1,401 |
|
|
|
3,591 |
|
|
|
6,521 |
|
|
Deferred and stock-based compensation |
|
18,763 |
|
|
|
17,242 |
|
|
|
60,166 |
|
|
|
95,397 |
|
|
Gain on sale of assets |
|
(109 |
) |
|
|
(135 |
) |
|
|
(353 |
) |
|
|
(548 |
) |
|
(Gain) loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(439 |
) |
|
|
69,232 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in working capital: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
(29,566 |
) |
|
|
(25,446 |
) |
|
|
288,415 |
|
|
|
(132,644 |
) |
|
Other current assets |
|
(6,522 |
) |
|
|
3,621 |
|
|
|
(9,520 |
) |
|
|
(19,478 |
) |
|
Accounts payable |
|
(8,147 |
) |
|
|
15,918 |
|
|
|
(84,291 |
) |
|
|
52,292 |
|
|
Accrued liabilities and other |
|
(37,976 |
) |
|
|
(14,979 |
) |
|
|
(249,455 |
) |
|
|
(177,806 |
) |
|
Net changes in working capital |
|
(82,211 |
) |
|
|
(20,886 |
) |
|
|
(54,851 |
) |
|
|
(277,636 |
) |
|
Net cash provided from operating activities |
$ |
150,252 |
|
|
$ |
520,969 |
|
|
$ |
751,797 |
|
|
$ |
1,252,089 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RECONCILIATION OF NET
CASH PROVIDED FROM OPERATING ACTIVITIES, AS REPORTED, TO CASH FLOW
FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL, a non-GAAP
measure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net cash provided from
operating activities, as reported |
$ |
150,252 |
|
|
$ |
520,969 |
|
|
$ |
751,797 |
|
|
$ |
1,252,089 |
|
|
Net changes in working capital |
|
82,211 |
|
|
|
20,886 |
|
|
|
54,851 |
|
|
|
277,636 |
|
|
Exploration expense |
|
6,658 |
|
|
|
7,105 |
|
|
|
18,087 |
|
|
|
18,540 |
|
|
Lawsuit settlements |
|
66 |
|
|
|
81 |
|
|
|
938 |
|
|
|
776 |
|
|
Transportation, gathering, processing and compression
settlements |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,500 |
|
|
Non-cash compensation adjustment and other |
|
335 |
|
|
|
672 |
|
|
|
383 |
|
|
|
1,583 |
|
| Cash flow from operations
before changes in working capital – non-GAAP measure |
$ |
239,522 |
|
|
$ |
549,713 |
|
|
$ |
826,056 |
|
|
$ |
1,558,124 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ADJUSTED WEIGHTED AVERAGE
SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares
outstanding |
|
244,446 |
|
|
|
245,468 |
|
|
|
244,179 |
|
|
|
249,038 |
|
| Stock held by deferred
compensation plan |
|
(3,108 |
) |
|
|
(5,700 |
) |
|
|
(4,724 |
) |
|
|
(6,188 |
) |
|
Adjusted basic |
|
241,338 |
|
|
|
239,768 |
|
|
|
239,455 |
|
|
|
242,850 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dilutive: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares
outstanding |
|
244,446 |
|
|
|
245,468 |
|
|
|
244,179 |
|
|
|
249,038 |
|
| Dilutive stock options under
treasury method |
|
(509 |
) |
|
|
(445 |
) |
|
|
(2,035 |
) |
|
|
(678 |
) |
|
Adjusted dilutive |
|
243,937 |
|
|
|
245,023 |
|
|
|
242,144 |
|
|
|
248,360 |
|
|
|
|
RANGE RESOURCES CORPORATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES AND
DERIVATIVE FAIR VALUE INCOME (LOSS) TO CALCULATED CASH REALIZED
NATURAL GAS, NGLs AND OIL PRICES WITH AND WITHOUT THIRD PARTY
TRANSPORTATION, GATHERING AND COMPRESSION FEES, a non-GAAP
measure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands, except per unit data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
% |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
% |
|
| Natural gas, NGL and oil sales
components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
246,976 |
|
|
$ |
1,053,863 |
|
|
|
|
|
|
$ |
913,915 |
|
|
$ |
2,593,540 |
|
|
|
|
|
|
NGLs sales |
|
238,211 |
|
|
|
325,989 |
|
|
|
|
|
|
|
695,368 |
|
|
|
1,039,057 |
|
|
|
|
|
|
Oil sales |
|
41,531 |
|
|
|
55,300 |
|
|
|
|
|
|
|
122,099 |
|
|
|
191,798 |
|
|
|
|
|
| Total oil and gas sales, as
reported |
$ |
526,718 |
|
|
$ |
1,435,152 |
|
|
|
-63 |
% |
|
$ |
1,731,382 |
|
|
$ |
3,824,395 |
|
|
|
-55 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative fair value income
(loss), as reported: |
$ |
38,394 |
|
|
$ |
(457,708 |
) |
|
|
|
|
|
$ |
530,095 |
|
|
$ |
(1,636,687 |
) |
|
|
|
|
| Cash settlements on derivative
financial instruments – (gain) loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
|
(82,472 |
) |
|
|
449,713 |
|
|
|
|
|
|
|
(196,847 |
) |
|
|
916,518 |
|
|
|
|
|
|
NGLs |
|
— |
|
|
|
(4,150 |
) |
|
|
|
|
|
|
— |
|
|
|
18,673 |
|
|
|
|
|
|
Crude Oil |
|
5,030 |
|
|
|
19,114 |
|
|
|
|
|
|
|
8,351 |
|
|
|
70,331 |
|
|
|
|
|
| Total change in fair value
related to commodity derivatives prior to settlement, a non-GAAP
measure |
$ |
(39,048 |
) |
|
$ |
6,969 |
|
|
|
|
|
|
$ |
341,599 |
|
|
$ |
(631,165 |
) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Transportation, gathering,
processing and compression components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
$ |
142,202 |
|
|
$ |
176,324 |
|
|
|
|
|
|
$ |
436,912 |
|
|
$ |
513,548 |
|
|
|
|
|
|
NGLs |
|
134,754 |
|
|
|
146,695 |
|
|
|
|
|
|
|
393,281 |
|
|
|
435,154 |
|
|
|
|
|
|
Oil |
|
251 |
|
|
|
— |
|
|
|
|
|
|
|
687 |
|
|
|
11 |
|
|
|
|
|
| Total transportation,
gathering, processing and compression, as reported |
$ |
277,207 |
|
|
$ |
323,019 |
|
|
|
|
|
|
$ |
830,880 |
|
|
$ |
948,713 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Natural gas, NGL and oil
sales, including cash-settled derivatives: (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
329,448 |
|
|
$ |
604,150 |
|
|
|
|
|
|
$ |
1,110,762 |
|
|
$ |
1,677,022 |
|
|
|
|
|
|
NGLs sales |
|
238,211 |
|
|
|
330,139 |
|
|
|
|
|
|
|
695,368 |
|
|
|
1,020,384 |
|
|
|
|
|
|
Oil sales |
|
36,501 |
|
|
|
36,186 |
|
|
|
|
|
|
|
113,748 |
|
|
|
121,467 |
|
|
|
|
|
| Total |
$ |
604,160 |
|
|
$ |
970,475 |
|
|
|
-38 |
% |
|
|
1,919,878 |
|
|
|
2,818,873 |
|
|
|
-32 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Production of oil and gas
during the periods (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
133,305,469 |
|
|
|
136,862,857 |
|
|
|
-3 |
% |
|
|
396,367,927 |
|
|
|
399,834,208 |
|
|
|
-1 |
% |
|
NGLs (bbl) |
|
9,748,012 |
|
|
|
9,235,626 |
|
|
|
6 |
% |
|
|
28,368,181 |
|
|
|
26,473,922 |
|
|
|
7 |
% |
|
Oil (bbl) |
|
587,488 |
|
|
|
653,000 |
|
|
|
-10 |
% |
|
|
1,818,773 |
|
|
|
2,099,630 |
|
|
|
-13 |
% |
| Gas equivalent (mcfe) (b) |
|
195,318,469 |
|
|
|
196,194,613 |
|
|
|
0 |
% |
|
|
577,489,651 |
|
|
|
571,275,520 |
|
|
|
1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Production of oil and gas –
average per day (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
1,448,972 |
|
|
|
1,487,640 |
|
|
|
-3 |
% |
|
|
1,451,897 |
|
|
|
1,464,594 |
|
|
|
-1 |
% |
|
NGLs (bbl) |
|
105,957 |
|
|
|
100,387 |
|
|
|
6 |
% |
|
|
103,913 |
|
|
|
96,974 |
|
|
|
7 |
% |
|
Oil (bbl) |
|
6,386 |
|
|
|
7,098 |
|
|
|
-10 |
% |
|
|
6,662 |
|
|
|
7,691 |
|
|
|
-13 |
% |
| Gas equivalent (mcfe) (b) |
|
2,123,027 |
|
|
|
2,132,550 |
|
|
|
0 |
% |
|
|
2,115,347 |
|
|
|
2,092,584 |
|
|
|
1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average prices, excluding
derivative settlements and before third party transportation
costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
1.85 |
|
|
$ |
7.70 |
|
|
|
-76 |
% |
|
$ |
2.31 |
|
|
$ |
6.49 |
|
|
|
-64 |
% |
|
NGLs (bbl) |
$ |
24.44 |
|
|
$ |
35.30 |
|
|
|
-31 |
% |
|
$ |
24.51 |
|
|
$ |
39.25 |
|
|
|
-38 |
% |
|
Oil (bbl) |
$ |
70.69 |
|
|
$ |
84.69 |
|
|
|
-17 |
% |
|
$ |
67.13 |
|
|
$ |
91.35 |
|
|
|
-27 |
% |
| Gas equivalent (mcfe) (b) |
$ |
2.70 |
|
|
$ |
7.31 |
|
|
|
-63 |
% |
|
$ |
3.00 |
|
|
$ |
6.69 |
|
|
|
-55 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average prices, including
derivative settlements before third party transportation costs:
(c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
2.47 |
|
|
$ |
4.41 |
|
|
|
-44 |
% |
|
$ |
2.80 |
|
|
$ |
4.19 |
|
|
|
-33 |
% |
|
NGLs (bbl) |
$ |
24.44 |
|
|
$ |
35.75 |
|
|
|
-32 |
% |
|
$ |
24.51 |
|
|
$ |
38.54 |
|
|
|
-36 |
% |
|
Oil (bbl) |
$ |
62.13 |
|
|
$ |
55.42 |
|
|
|
12 |
% |
|
$ |
62.54 |
|
|
$ |
57.85 |
|
|
|
8 |
% |
| Gas equivalent (mcfe) (b) |
$ |
3.09 |
|
|
$ |
4.95 |
|
|
|
-37 |
% |
|
$ |
3.32 |
|
|
$ |
4.93 |
|
|
|
-33 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average prices, including
derivative settlements and after third party transportation costs:
(d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
1.40 |
|
|
$ |
3.13 |
|
|
|
-55 |
% |
|
$ |
1.70 |
|
|
$ |
2.91 |
|
|
|
-42 |
% |
|
NGLs (bbl) |
$ |
10.61 |
|
|
$ |
19.86 |
|
|
|
-47 |
% |
|
$ |
10.65 |
|
|
$ |
22.11 |
|
|
|
-52 |
% |
|
Oil (bbl) |
$ |
61.70 |
|
|
$ |
55.41 |
|
|
|
11 |
% |
|
$ |
62.16 |
|
|
$ |
57.85 |
|
|
|
7 |
% |
| Gas equivalent (mcfe) (b) |
$ |
1.67 |
|
|
$ |
3.30 |
|
|
|
-49 |
% |
|
$ |
1.89 |
|
|
$ |
3.27 |
|
|
|
-42 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Transportation, gathering and
compression expense per mcfe |
$ |
1.42 |
|
|
$ |
1.65 |
|
|
|
-14 |
% |
|
$ |
1.44 |
|
|
$ |
1.66 |
|
|
|
-13 |
% |
|
|
(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
(LOSS) 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 September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
% |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income from operations before
income taxes, as reported |
$ |
65,128 |
|
|
$ |
432,710 |
|
|
|
-85 |
% |
|
$ |
713,397 |
|
|
$ |
416,007 |
|
|
|
71 |
% |
| Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets |
|
(109 |
) |
|
|
(135 |
) |
|
|
|
|
|
|
(353 |
) |
|
|
(548 |
) |
|
|
|
|
|
Loss (gain) on ARO settlements |
|
1 |
|
|
|
(8 |
) |
|
|
|
|
|
|
1 |
|
|
|
(8 |
) |
|
|
|
|
|
Change in fair value related to derivatives prior to
settlement |
|
39,048 |
|
|
|
(6,969 |
) |
|
|
|
|
|
|
(341,599 |
) |
|
|
631,165 |
|
|
|
|
|
|
Abandonment and impairment of unproved properties |
|
11,012 |
|
|
|
3,186 |
|
|
|
|
|
|
|
44,308 |
|
|
|
12,319 |
|
|
|
|
|
|
(Gain) loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
(439 |
) |
|
|
69,232 |
|
|
|
|
|
|
Transportation, gathering, processing and compression
settlements |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
7,500 |
|
|
|
|
|
|
Lawsuit settlements |
|
66 |
|
|
|
81 |
|
|
|
|
|
|
|
938 |
|
|
|
776 |
|
|
|
|
|
|
Exit costs |
|
10,684 |
|
|
|
11,065 |
|
|
|
|
|
|
|
71,661 |
|
|
|
58,249 |
|
|
|
|
|
|
Brokered natural gas and marketing – stock-based compensation |
|
483 |
|
|
|
663 |
|
|
|
|
|
|
|
1,604 |
|
|
|
1,868 |
|
|
|
|
|
|
Direct operating – stock-based compensation |
|
439 |
|
|
|
372 |
|
|
|
|
|
|
|
1,280 |
|
|
|
1,083 |
|
|
|
|
|
|
Exploration expenses – stock-based compensation |
|
312 |
|
|
|
393 |
|
|
|
|
|
|
|
935 |
|
|
|
1,163 |
|
|
|
|
|
|
General & administrative – stock-based compensation |
|
8,446 |
|
|
|
10,402 |
|
|
|
|
|
|
|
26,461 |
|
|
|
32,245 |
|
|
|
|
|
|
Deferred compensation plan – adjustment |
|
8,997 |
|
|
|
5,795 |
|
|
|
|
|
|
|
29,546 |
|
|
|
59,917 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes, as
adjusted |
|
144,507 |
|
|
|
457,555 |
|
|
|
-68 |
% |
|
|
547,740 |
|
|
|
1,290,968 |
|
|
|
-58 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense, as
adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current (a) |
|
601 |
|
|
|
6,981 |
|
|
|
|
|
|
|
3,000 |
|
|
|
20,732 |
|
|
|
|
|
|
Deferred (a) |
|
32,636 |
|
|
|
114,389 |
|
|
|
|
|
|
|
122,981 |
|
|
|
322,742 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income excluding certain
items, a non-GAAP measure |
$ |
111,270 |
|
|
$ |
336,185 |
|
|
|
-67 |
% |
|
$ |
421,759 |
|
|
$ |
947,494 |
|
|
|
-55 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP income per common
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.46 |
|
|
$ |
1.40 |
|
|
|
-67 |
% |
|
$ |
1.76 |
|
|
$ |
3.90 |
|
|
|
-55 |
% |
|
Diluted |
$ |
0.46 |
|
|
$ |
1.37 |
|
|
|
-66 |
% |
|
$ |
1.74 |
|
|
$ |
3.82 |
|
|
|
-54 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP diluted shares
outstanding, if dilutive |
|
243,937 |
|
|
|
245,023 |
|
|
|
|
|
|
|
242,144 |
|
|
|
248,360 |
|
|
|
|
|
| |
(a) |
Taxes are estimated to be approximately 23% for 2023 and deferred
taxes were estimated to be 25% for 2022. |
| |
|
|
|
RANGE RESOURCES CORPORATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RECONCILIATION OF NET
INCOME, EXCLUDING CERTAIN ITEMS AND
ADJUSTMENT EARNINGS PER SHARE, non-GAAP measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income, as
reported |
$ |
49,430 |
|
|
$ |
373,087 |
|
|
$ |
561,108 |
|
|
$ |
369,134 |
|
| Adjustment for certain
special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets |
|
(109 |
) |
|
|
(135 |
) |
|
|
(353 |
) |
|
|
(548 |
) |
|
Loss (gain) on ARO settlements |
|
1 |
|
|
|
(8 |
) |
|
|
1 |
|
|
|
(8 |
) |
|
(Gain) loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(439 |
) |
|
|
69,232 |
|
|
Change in fair value related to derivatives prior to
settlement |
|
39,048 |
|
|
|
(6,969 |
) |
|
|
(341,599 |
) |
|
|
631,165 |
|
|
Transportation, gathering, processing and compression
settlements |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,500 |
|
|
Abandonment and impairment of unproved properties |
|
11,012 |
|
|
|
3,186 |
|
|
|
44,308 |
|
|
|
12,319 |
|
|
Lawsuit settlements |
|
66 |
|
|
|
81 |
|
|
|
938 |
|
|
|
776 |
|
|
Exit costs |
|
10,684 |
|
|
|
11,065 |
|
|
|
71,661 |
|
|
|
58,249 |
|
|
Stock-based compensation |
|
9,680 |
|
|
|
11,830 |
|
|
|
30,280 |
|
|
|
36,359 |
|
|
Deferred compensation plan |
|
8,997 |
|
|
|
5,795 |
|
|
|
29,546 |
|
|
|
59,917 |
|
|
Tax impact |
|
(17,539 |
) |
|
|
(61,747 |
) |
|
|
26,308 |
|
|
|
(296,601 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income excluding
certain items, a non-GAAP measure |
$ |
111,270 |
|
|
$ |
336,185 |
|
|
$ |
421,759 |
|
|
$ |
947,494 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per diluted
share, as reported |
$ |
0.20 |
|
|
$ |
1.49 |
|
|
$ |
2.27 |
|
|
$ |
1.45 |
|
| Adjustment for certain
special items per diluted share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets |
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
Loss (gain) on ARO settlements |
|
0.00 |
|
|
|
(0.00 |
) |
|
|
0.00 |
|
|
|
(0.00 |
) |
|
(Gain) loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(0.00 |
) |
|
|
0.28 |
|
|
Change in fair value related to derivatives prior to
settlement |
|
0.16 |
|
|
|
(0.03 |
) |
|
|
(1.41 |
) |
|
|
2.54 |
|
|
Transportation, gathering, processing and compression
settlements |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
|
Abandonment and impairment of unproved properties |
|
0.05 |
|
|
|
0.01 |
|
|
|
0.18 |
|
|
|
0.05 |
|
|
Lawsuit settlements |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
Exit costs |
|
0.04 |
|
|
|
0.05 |
|
|
|
0.30 |
|
|
|
0.23 |
|
|
Stock-based compensation |
|
0.04 |
|
|
|
0.05 |
|
|
|
0.13 |
|
|
|
0.15 |
|
|
Deferred compensation plan |
|
0.04 |
|
|
|
0.02 |
|
|
|
0.12 |
|
|
|
0.24 |
|
|
Adjustment for rounding differences |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
Tax impact |
|
(0.07 |
) |
|
|
(0.25 |
) |
|
|
0.11 |
|
|
|
(1.19 |
) |
|
Dilutive share impact (rabbi trust and other) |
|
— |
|
|
|
0.03 |
|
|
|
0.04 |
|
|
|
0.03 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per diluted
share, excluding certain items, a non-GAAP
measure |
$ |
0.46 |
|
|
$ |
1.37 |
|
|
$ |
1.74 |
|
|
$ |
3.82 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted earnings per
share, a non-GAAP measure: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.46 |
|
|
$ |
1.40 |
|
|
$ |
1.76 |
|
|
$ |
3.90 |
|
|
Diluted |
$ |
0.46 |
|
|
$ |
1.37 |
|
|
$ |
1.74 |
|
|
$ |
3.82 |
|
| |
|
RANGE RESOURCES CORPORATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RECONCILIATION OF CASH
MARGIN PER MCFE, a non-GAAP measure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Unaudited, in thousands, except
per unit data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and oil sales, as reported |
$ |
526,718 |
|
|
$ |
1,435,152 |
|
|
$ |
1,731,382 |
|
|
$ |
3,824,395 |
|
|
Derivative fair value income (loss), as reported |
|
38,394 |
|
|
|
(457,708 |
) |
|
|
530,095 |
|
|
|
(1,636,687 |
) |
|
Less non-cash fair value loss (gain) |
|
39,048 |
|
|
|
(6,969 |
) |
|
|
(341,599 |
) |
|
|
631,165 |
|
|
Brokered natural gas and marketing and other, as reported |
|
44,612 |
|
|
|
133,101 |
|
|
|
171,584 |
|
|
|
328,716 |
|
|
Less ARO settlement |
|
1 |
|
|
|
(8 |
) |
|
|
1 |
|
|
|
(8 |
) |
|
Cash revenues |
|
648,773 |
|
|
|
1,103,568 |
|
|
|
2,091,463 |
|
|
|
3,147,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating, as reported |
|
22,562 |
|
|
|
21,290 |
|
|
|
73,442 |
|
|
|
61,628 |
|
|
Less direct operating stock-based compensation |
|
(439 |
) |
|
|
(372 |
) |
|
|
(1,280 |
) |
|
|
(1,083 |
) |
|
Transportation, gathering and compression, as reported |
|
277,207 |
|
|
|
323,019 |
|
|
|
830,880 |
|
|
|
948,713 |
|
|
Less transportation, gathering and compression settlements |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,500 |
) |
|
Taxes other than income, as reported |
|
4,756 |
|
|
|
9,057 |
|
|
|
19,643 |
|
|
|
24,189 |
|
|
Brokered natural gas and marketing, as reported |
|
46,206 |
|
|
|
127,285 |
|
|
|
158,074 |
|
|
|
330,517 |
|
|
Less brokered natural gas and marketing stock-based
compensation |
|
(483 |
) |
|
|
(663 |
) |
|
|
(1,604 |
) |
|
|
(1,868 |
) |
|
General and administrative, as reported |
|
38,093 |
|
|
|
40,568 |
|
|
|
120,765 |
|
|
|
126,013 |
|
|
Less G&A stock-based compensation |
|
(8,446 |
) |
|
|
(10,402 |
) |
|
|
(26,461 |
) |
|
|
(32,245 |
) |
|
Less lawsuit settlements |
|
(66 |
) |
|
|
(81 |
) |
|
|
(938 |
) |
|
|
(776 |
) |
|
Interest expense, as reported |
|
30,599 |
|
|
|
38,736 |
|
|
|
93,918 |
|
|
|
127,912 |
|
|
Less amortization of deferred financing costs |
|
(1,339 |
) |
|
|
(1,563 |
) |
|
|
(4,032 |
) |
|
|
(6,775 |
) |
|
Cash expenses |
|
408,650 |
|
|
|
546,874 |
|
|
|
1,262,407 |
|
|
|
1,568,725 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash margin, a
non-GAAP measure |
$ |
240,123 |
|
|
$ |
556,694 |
|
|
$ |
829,056 |
|
|
$ |
1,578,856 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mmcfe produced during period |
|
195,319 |
|
|
|
196,195 |
|
|
|
577,490 |
|
|
|
571,276 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash margin per
mcfe |
$ |
1.23 |
|
|
$ |
2.84 |
|
|
$ |
1.44 |
|
|
$ |
2.76 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RECONCILIATION OF INCOME
BEFORE INCOME TAXES TO CASH MARGIN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Unaudited, in thousands, except
per unit data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income
taxes, as reported |
$ |
65,128 |
|
|
$ |
432,710 |
|
|
$ |
713,397 |
|
|
$ |
416,007 |
|
| Adjustments to
reconcile income before income taxes to cash
margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARO settlements |
|
1 |
|
|
|
(8 |
) |
|
|
1 |
|
|
|
(8 |
) |
|
Derivative fair value (income) loss |
|
(38,394 |
) |
|
|
457,708 |
|
|
|
(530,095 |
) |
|
|
1,636,687 |
|
|
Net cash receipts (payments) on derivative settlements |
|
77,442 |
|
|
|
(464,677 |
) |
|
|
188,496 |
|
|
|
(1,005,522 |
) |
|
Transportation, gathering and compression settlements |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,500 |
|
|
Exploration expense |
|
6,658 |
|
|
|
7,105 |
|
|
|
18,087 |
|
|
|
18,540 |
|
|
Lawsuit settlements |
|
66 |
|
|
|
81 |
|
|
|
938 |
|
|
|
776 |
|
|
Exit costs |
|
10,684 |
|
|
|
11,065 |
|
|
|
71,661 |
|
|
|
58,249 |
|
|
Deferred compensation plan |
|
8,997 |
|
|
|
5,795 |
|
|
|
29,546 |
|
|
|
59,917 |
|
|
Stock-based compensation (direct operating, brokered natural gas
and marketing, general and administrative and termination
costs) |
|
9,680 |
|
|
|
11,830 |
|
|
|
30,280 |
|
|
|
36,359 |
|
|
Interest – amortization of deferred financing costs |
|
1,339 |
|
|
|
1,563 |
|
|
|
4,032 |
|
|
|
6,775 |
|
|
Depletion, depreciation and amortization |
|
87,619 |
|
|
|
90,471 |
|
|
|
259,197 |
|
|
|
262,573 |
|
|
Gain on sale of assets |
|
(109 |
) |
|
|
(135 |
) |
|
|
(353 |
) |
|
|
(548 |
) |
|
(Gain) loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(439 |
) |
|
|
69,232 |
|
|
Abandonment and impairment of unproved properties |
|
11,012 |
|
|
|
3,186 |
|
|
|
44,308 |
|
|
|
12,319 |
|
| Cash margin, a
non-GAAP measure |
$ |
240,123 |
|
|
$ |
556,694 |
|
|
$ |
829,056 |
|
|
$ |
1,578,856 |
|
Range Resources (NYSE:RRC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Range Resources (NYSE:RRC)
Historical Stock Chart
From Apr 2023 to Apr 2024
