RANGE RESOURCES CORPORATION (NYSE: RRC) today
announced its first quarter 2022 financial results.
First Quarter 2022 Highlights
–
- Realizations before NYMEX hedges of
$5.63 per mcfe, approximately $0.74 above NYMEX natural gas
- Natural gas differentials,
including basis hedging, averaged a $0.03 premium per mcf above
NYMEX
- Pre-hedge NGL realization of $40.03
per barrel, a premium of $0.74 per barrel above Mont Belvieu
equivalent
- Production averaged 2,071 Mmcfe per
day, approximately 70% natural gas
- First quarter capital spending
was $117 million, approximately 25% of the 2022
budget
- Reduced outstanding debt by $350
million following redemption of 2026 senior notes in January
- In March, repurchased 600,000
shares at an average of $27.00 per share
- In April, Range’s $3.0 billion
borrowing base was reaffirmed with a $1.5 billion elected
commitment
Commenting on the quarter, Jeff Ventura, the
Company’s CEO said, “Improved commodity pricing and efficient
operations drove record free cash flow and cash flow per share in
the first quarter. Recent tragic geopolitical events have made it
more apparent than ever that the world requires ethical, safe,
secure, reliable, and abundant fuel sources. We believe Range is
well positioned to help fulfill this energy need. Range is at the
low-end of the global cost curve for natural gas as the most
capital efficient operator in the largest natural gas field in the
world. Range also has an advantaged emissions intensity profile
relative to production from other basins in the U.S. and abroad,
given the prolific nature of the shales we are developing,
stringent drilling standards and our daily focus on operational
efficiencies.
In order for the industry to meet growing demand
for natural gas in the U.S. and worldwide, there will need to be
support for additional infrastructure, including pipelines,
compression, processing facilities and LNG export terminals in the
months and years ahead. In the meantime, Range has access to
multiple domestic and international markets for natural gas and
NGLs, which drives our competitive realized pricing compared to
other natural gas producers. Range’s capital efficiency is
industry-leading, which is reflected in our peer-leading capital
spending per mcfe metric and sustaining capital requirements. Most
importantly, despite having drilled a large number of wells since
discovering the Marcellus Shale, Range has a multi-decade core
inventory life that is unmatched among natural gas producers in the
U.S. It is this core inventory that allows for repeatable capital
efficiencies in the years ahead. We remain focused on realizing the
value of this world class, world-scale asset base by consistently
delivering value to our shareholders through disciplined capital
allocation.”
Financial Discussion
Except for generally accepted accounting
principles (“GAAP”) reported amounts, specific expense categories
exclude non-cash impairments, unrealized mark-to-market adjustment
on derivatives, non-cash stock compensation and other items shown
separately on the attached tables. “Unit costs” as used in this
release are composed of direct operating, transportation,
gathering, processing and compression, production, and ad valorem
taxes, general and administrative, interest and depletion,
depreciation and amortization costs divided by production. See
“Non-GAAP Financial Measures” for a definition of each of the
non-GAAP financial measures and the tables that reconcile each of
the non-GAAP measures to their most directly comparable GAAP
financial measure.
First Quarter 2022 Results
GAAP revenues for first quarter 2022
totaled $181 million, GAAP net cash provided from operating
activities (including changes in working capital) was $406
million, and GAAP net loss was $457 million ($1.86 per
diluted share). First quarter earnings results include
a $939 million mark-to-market derivative loss due to the
significant increase in commodity prices.
Non-GAAP revenues for first quarter 2022
totaled $987 million, and cash flow from operations before
changes in working capital, a non-GAAP measure, was $489
million. Adjusted net income comparable to analysts’
estimates, a non-GAAP measure, was $297
million ($1.18 per diluted share) in first quarter
2022.
The following table details Range’s first
quarter 2022 unit costs per mcfe(a):
Expenses |
|
1Q 2022 (per mcfe) |
|
4Q 2021(per mcfe) |
|
|
Increase (Decrease) |
|
|
|
|
|
|
|
|
|
Direct operating |
|
$ |
0.11 |
|
$ |
0.09 |
|
|
22 |
% |
|
Transportation, gathering,
processing and compression |
|
|
1.60 |
|
|
1.59 |
|
|
1 |
% |
|
Production and ad valorem
taxes |
|
|
0.04 |
|
|
0.05 |
|
|
(20 |
%) |
|
General and
administrative(a) |
|
|
0.17 |
|
|
0.15 |
|
|
13 |
% |
|
Interest expense(a) |
|
|
0.24 |
|
|
0.27 |
|
|
(11 |
%) |
|
Total cash unit
costs(b) |
|
|
2.15 |
|
|
2.14 |
|
|
0 |
% |
|
Depletion, depreciation and
amortization (DD&A) |
|
|
0.46 |
|
|
0.46 |
|
|
0 |
% |
|
Total unit costs
plus DD&A(b) |
|
$ |
2.61 |
|
$ |
2.59 |
|
|
1 |
% |
|
(a) Excludes stock-based
compensation, legal settlements, and amortization of deferred
financing costs.(b) May not add due to
rounding.
The following table details Range’s average
production and realized pricing for first quarter 2022:
|
1Q22 Production & Realized Pricing |
|
|
Natural Gas(Mcf) |
|
Oil (Bbl) |
|
NGLs(Bbl) |
|
Natural GasEquivalent (Mcfe) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net production per day |
|
|
1,458,337 |
|
|
|
8,116 |
|
|
|
93,927 |
|
|
|
2,070,598 |
|
|
|
|
|
|
|
|
|
|
Average NYMEX price |
|
$ |
4.89 |
|
|
$ |
94.93 |
|
|
$ |
39.29 |
|
|
|
Differential, including basis
hedging |
|
|
0.03 |
|
|
|
(7.23 |
) |
|
|
0.74 |
|
|
|
Realized prices before NYMEX
hedges |
|
|
4.92 |
|
|
|
87.70 |
|
|
|
40.03 |
|
|
|
5.63 |
|
Settled NYMEX hedges |
|
|
(0.88 |
) |
|
|
(29.24 |
) |
|
|
(1.46 |
) |
|
|
(0.80 |
) |
Average realized prices after
hedges |
|
$ |
4.04 |
|
|
$ |
58.46 |
|
|
$ |
38.57 |
|
|
$ |
4.83 |
|
First quarter 2022 natural gas, NGLs and oil
price realizations (including the impact of cash-settled hedges and
derivative settlements) averaged $4.83 per mcfe.
- The average natural gas price,
including the impact of basis hedging, was $4.92 per mcf, or a
positive $0.03 per mcf differential to NYMEX. The first quarter
natural gas differential includes strong year-over-year basis
improvements in the premium Northeast and Midwest markets that
Range has access to through its diversified transportation
portfolio. As a result, the Company is adjusting guidance for
average 2022 natural gas differentials versus NYMEX to an expected
range of ($0.35) to ($0.40) per mcf.
- Pre-hedge NGL realizations were
$40.03 per barrel, an improvement of $3.77 per barrel compared to
the fourth quarter of 2021 and a $0.74 premium over Mont Belvieu
equivalent. First quarter NGL realizations were driven by higher
ethane prices and an improving market for propane and heavier NGL
products. Range continues to see strong NGL export premiums at
Marcus Hook because of the Company’s access to international
markets and diversified portfolio of sales agreements. The Company
expects a pre-hedge premium differential to Mont Belvieu equivalent
of $0.00 - $2.00 per barrel for calendar 2022.
- Crude oil and condensate price
realizations, before realized hedges, averaged $87.70 per barrel,
or $7.23 below WTI (West Texas Intermediate). Range continues to
expect the 2022 condensate differential to average $6.00-$8.00
below WTI.
Capital Expenditures
First quarter 2022 drilling and completion
expenditures were $108 million. In addition, during the quarter,
$8.6 million was invested on acreage leasehold and gathering
systems. First quarter capital spending represents approximately
25% of Range’s total capital budget in 2022.
Financial Position and Share
Buyback
In January, Range issued $500 million aggregate
principal amount of 4.75% senior notes due 2030 and used proceeds,
cash on hand and the bank facility to redeem all outstanding 9.25%
senior notes due 2026. As a result, Range’s interest expense is
expected to improve by 25% year-over-year in 2022 to an approximate
$0.20 per mcfe annual midpoint average.
In late February, Range’s Board of Directors
approved the expansion of the Company’s equity repurchase program
to $500 million. This repurchase program, which is
equivalent to a significant percentage of Range’s current market
capitalization, is expected to be funded with free cash flow
generation. In March, Range repurchased 600,000 shares
for approximately $16.2 million, an average of $27.00 per
share.
As of March 31, 2022, Range had total debt
outstanding of $2.6 billion, an undrawn credit facility with
$2.1 billion of committed borrowing capacity, and approximately
$113 million of cash on hand. On a trailing twelve-month basis,
Range’s leverage ratio, defined as Net-Debt-to-EBITDAX, was
approximately 1.6x, with further improvement expected over the
coming quarters as debt is reduced. Subsequent to quarter end,
Range’s $3.0 billion borrowing base was reaffirmed in April
with a new elected commitment amount of $1.5 billion.
The credit facility matures on April 14, 2027 and is
subject to semi-annual redeterminations.
Operational Activity
The table below summarizes expected 2022 activity regarding the
number of wells to sales in each area.
|
|
|
Wells TIL1Q 2022 |
|
Calendar 2022Planned TIL |
|
Remaining2022 |
SW PA Super-Rich |
|
|
4 |
|
7 |
|
3 |
SW PA Wet |
|
|
3 |
|
21 |
|
18 |
SW PA Dry |
|
|
3 |
|
26 |
|
23 |
NE PA Dry |
|
|
0 |
|
9 |
|
9 |
Total Wells |
|
|
10 |
|
63 |
|
53 |
Range continues to target holding production
approximately flat with an annual average production of 2,120 –
2,160 Mmcfe per day. Range’s production guidance incorporates
weather-related downtime in February that affected first quarter
2022 by approximately 35 Mmcfe per day, in addition to planned
third-party downstream maintenance that is expected in the second
quarter. Despite these transient delays, Range is expecting to
deliver maintenance production at a capital cost of approximately
$0.60 per mcfe, which we believe is the most efficient program in
Appalachia.
As previously disclosed, Range has
transportation capacity to sell approximately half of the Company's
natural gas to Gulf Coast markets. Range currently sells over 400
Mmbtu/d of natural gas to LNG exporters as part of long-term sales
contracts. Most of these contracts end over the next two years,
presenting an opportunity for Range to enter new sales contracts
that take advantage of a growing LNG export market over the coming
years.
Based on recent strip pricing, Range’s expected
pre-hedge NGL price realization in 2022 has increased by
approximately $6.00 per barrel relative to strip pricing in
February, resulting in a projected increase of over $200 million in
annual pre-hedge revenue. As previously disclosed, these higher
realized NGL prices will result in slightly higher processing
costs, as Range’s processing costs are based on the price received.
Net of price-linked processing costs, the increase in forecasted
NGL prices is expected to add approximately $170 million in cash
flow versus prior expectations, demonstrating continued strong
margin expansion with rising NGL prices. Additionally, in 2022,
Range’s gathering costs are expected to improve by approximately
$25 million compared to 2021, driven by contractual decreases in
Range’s gathering fees, while contracted gathering capacity remains
the same. Range expects an additional $25 million in gathering
expense savings in 2023 and annual savings of more than $100
million by 2030 when compared to 2021 costs.
Guidance – 2022
Capital & Production Guidance
As previously noted, Range is targeting holding
production approximately flat at 2.12 – 2.16 Bcfe per day, with
~30% attributed to liquids production for the full year 2022.
Range’s 2022 all-in capital budget is $460 million - $480
million.
Updated Full Year 2022 Expense
Guidance
Direct operating expense: |
$0.09 - $0.11 per mcfe |
Transportation, gathering, processing and compression expense: |
$1.56 - $1.64 per mcfe |
Production tax expense: |
$0.03 - $0.05 per mcfe |
Exploration expense: |
$22 - $28 million |
G&A expense: |
$0.15 - $0.17 per mcfe |
Interest expense: |
$0.19 - $0.21 per mcfe |
DD&A expense: |
$0.46 - $0.50 per mcfe |
Net brokered gas marketing expense: |
$10 - $20 million |
Updated Full Year 2022 Price Guidance
Based on recent market indications, Range expects to average the
following price differentials for its production in 2022.
Natural Gas:(1) |
NYMEX minus $0.35 to $0.40 |
Natural Gas Liquids (including ethane):(2) |
Mont Belvieu plus $0.00 to $2.00 per barrel |
Oil/Condensate: |
WTI minus $6.00 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 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 Marcellus and other basis
differentials for natural gas to limit volatility between benchmark
and regional prices. The combined fair value of the natural gas
basis hedges as of March 31, 2022 was a net gain of $22.5
million.
Conference Call Information
A conference call to review the financial results is scheduled
on Wednesday, April 27 at 9:00 a.m. ET. To participate
in the call, please dial (877) 928-8777 and provide conference code
2697905 about 10 minutes prior to the scheduled start time.
A simultaneous webcast of the call may be accessed at
www.rangeresources.com. The webcast will be archived
for replay on the Company's website until May 26th.
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 on stacked-pay projects in
the Appalachian Basin. The Company is headquartered
in Fort Worth, Texas. More information about Range can
be found at www.rangeresources.com.
Included within this release are certain
“forward-looking statements” within the meaning of the federal
securities laws, including the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, that are not
limited to historical facts, but reflect Range’s current beliefs,
expectations or intentions regarding future events. Words
such as “may,” “will,” “could,” “should,” “expect,” “plan,”
“project,” “intend,” “anticipate,” “believe,” “outlook”,
“estimate,” “predict,” “potential,” “pursue,” “target,” “continue,”
and similar expressions are intended to identify such
forward-looking statements.
All statements, except for statements of
historical fact, made within regarding activities, events or
developments the Company expects, believes or anticipates will or
may occur in the future, such as those regarding future well costs,
expected asset sales, well productivity, future liquidity and
financial resilience, anticipated exports and related financial
impact, NGL market supply and demand, improving commodity
fundamentals and pricing, future capital efficiencies, future
shareholder value, emerging plays, capital spending, anticipated
drilling and completion activity, acreage prospectivity, expected
pipeline utilization and future guidance information, are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements are
based on assumptions and estimates that management believes are
reasonable based on currently available information; however,
management's assumptions and Range's future performance are subject
to a wide range of business risks and uncertainties and there is no
assurance that these goals and projections can or will be met. Any
number of factors could cause actual results to differ materially
from those in the forward-looking statements. Further information
on risks and uncertainties is available in Range's filings with the
Securities and Exchange Commission (SEC), including its most recent
Annual Report on Form 10-K. Unless required by law, Range
undertakes no obligation to publicly update or revise any
forward-looking statements to reflect circumstances or events after
the date they are made.
The SEC permits oil and gas companies, in
filings made with the SEC, to disclose proved reserves, which are
estimates that geological and engineering data demonstrate with
reasonable certainty to be recoverable in future years from known
reservoirs under existing economic and operating conditions as well
as the option to disclose probable and possible reserves. Range has
elected not to disclose its probable and possible reserves in its
filings with the SEC. Range uses certain broader terms such as
"resource potential,” “unrisked resource potential,” "unproved
resource potential" or "upside" or other descriptions of volumes of
resources potentially recoverable through additional drilling or
recovery techniques that may include probable and possible reserves
as defined by the SEC's guidelines. Range has not attempted to
distinguish probable and possible reserves from these broader
classifications. The SEC’s rules prohibit us from including in
filings with the SEC these broader classifications of reserves.
These estimates are by their nature more speculative than estimates
of proved, probable and possible reserves and accordingly are
subject to substantially greater risk of actually being realized.
Unproved resource potential refers to Range's internal estimates of
hydrocarbon quantities that may be potentially discovered through
exploratory drilling or recovered with additional drilling or
recovery techniques and have not been reviewed by independent
engineers. Unproved resource potential does not constitute reserves
within the meaning of the Society of Petroleum Engineer's Petroleum
Resource Management System and does not include proved reserves.
Area wide unproven resource potential has not been fully risked by
Range's management. “EUR”, or estimated ultimate recovery, refers
to our management’s estimates of hydrocarbon quantities that may be
recovered from a well completed as a producer in the area. These
quantities may not necessarily constitute or represent reserves
within the meaning of the Society of Petroleum Engineer’s Petroleum
Resource Management System or the SEC’s oil and natural gas
disclosure rules. Actual quantities that may be recovered from
Range's interests could differ substantially. Factors affecting
ultimate recovery include the scope of Range's drilling program,
which will be directly affected by the availability of capital,
drilling and production costs, commodity prices, availability of
drilling services and equipment, drilling results, lease
expirations, transportation constraints, regulatory approvals,
field spacing rules, recoveries of gas in place, length of
horizontal laterals, actual drilling results, including geological
and mechanical factors affecting recovery rates and other factors.
Estimates of resource potential may change significantly as
development of our resource plays provides additional data.
In addition, our production forecasts and
expectations for future periods are dependent upon many
assumptions, including estimates of production decline rates from
existing wells and the undertaking and outcome of future drilling
activity, which may be affected by significant commodity price
declines or drilling cost increases. Investors are urged to
consider closely the disclosure in our most recent Annual Report on
Form 10-K, available from our website at www.rangeresources.com or
by written request to 100 Throckmorton Street, Suite 1200, Fort
Worth, Texas 76102. You can also obtain this Form 10-K on the SEC’s
website at www.sec.gov or by calling the SEC at 1-800-SEC-0330.
Range Investor Contacts:
Laith Sando, Vice President – Investor
Relations817-869-4267lsando@rangeresources.com
Range Media Contacts:
Mark Windle, Director of Corporate
Communications724-873-3223mwindle@rangeresources.com
RANGE RESOURCES CORPORATION
STATEMENTS OF OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
Based on GAAP reported
earnings with additional |
|
|
|
|
|
|
|
|
|
|
|
details of items included in
each line in Form 10-Q |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
% |
|
Revenues and other income: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGLs and oil sales (a) |
$ |
1,032,351 |
|
|
$ |
603,347 |
|
|
|
|
|
Derivative fair value loss |
|
(939,057 |
) |
|
|
(57,879 |
) |
|
|
|
|
Brokered natural gas, marketing and other (b) |
|
87,423 |
|
|
|
80,502 |
|
|
|
|
|
ARO settlement gain (b) |
|
— |
|
|
|
1 |
|
|
|
|
|
Other (b) |
|
19 |
|
|
|
61 |
|
|
|
|
|
Total revenues and other income |
|
180,736 |
|
|
|
626,032 |
|
|
|
-71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Direct operating |
|
19,939 |
|
|
|
17,323 |
|
|
|
|
|
Direct operating – stock-based compensation (c) |
|
349 |
|
|
|
327 |
|
|
|
|
|
Transportation, gathering, processing and compression |
|
297,787 |
|
|
|
274,330 |
|
|
|
|
|
Production and ad valorem taxes |
|
6,590 |
|
|
|
4,625 |
|
|
|
|
|
Brokered natural gas and marketing |
|
92,604 |
|
|
|
71,885 |
|
|
|
|
|
Brokered natural gas and marketing – stock-based
compensation (c) |
|
519 |
|
|
|
450 |
|
|
|
|
|
Exploration |
|
4,247 |
|
|
|
5,152 |
|
|
|
|
|
Exploration – non-cash stock-based compensation (c) |
|
452 |
|
|
|
386 |
|
|
|
|
|
Abandonment and impairment of unproved properties |
|
1,996 |
|
|
|
3,029 |
|
|
|
|
|
General and administrative |
|
30,962 |
|
|
|
28,160 |
|
|
|
|
|
General and administrative – stock-based compensation (c) |
|
11,573 |
|
|
|
9,405 |
|
|
|
|
|
General and administrative – lawsuit settlements |
|
491 |
|
|
|
439 |
|
|
|
|
|
Exit and termination costs |
|
11,115 |
|
|
|
13,714 |
|
|
|
|
|
Deferred compensation plan (d) |
|
73,343 |
|
|
|
19,811 |
|
|
|
|
|
Interest expense |
|
45,101 |
|
|
|
54,591 |
|
|
|
|
|
Interest expense – amortization of deferred financing costs
(e) |
|
2,074 |
|
|
|
2,287 |
|
|
|
|
|
Loss on early extinguishment of debt |
|
69,210 |
|
|
|
35 |
|
|
|
|
|
Depletion, depreciation and amortization |
|
85,604 |
|
|
|
88,383 |
|
|
|
|
|
(Gain) loss on sale of assets |
|
(331 |
) |
|
|
1,860 |
|
|
|
|
|
Total costs and expenses |
|
753,625 |
|
|
|
596,192 |
|
|
|
26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income
taxes |
|
(572,889 |
) |
|
|
29,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense: |
|
|
|
|
|
|
|
|
|
|
|
Current |
|
4,751 |
|
|
|
168 |
|
|
|
|
|
Deferred |
|
(120,832 |
) |
|
|
2,521 |
|
|
|
|
|
|
|
(116,081 |
) |
|
|
2,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(456,808 |
) |
|
$ |
27,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Per
Common Share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(1.86 |
) |
|
$ |
0.11 |
|
|
|
|
|
Diluted |
$ |
(1.86 |
) |
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding, as reported: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
245,350 |
|
|
|
242,159 |
|
|
|
1 |
% |
Diluted |
|
245,350 |
|
|
|
247,527 |
|
|
|
-1 |
% |
(a) See separate natural gas, NGLs and oil sales information
table.(b) Included in Brokered natural gas, marketing and other
revenues in the 10-Q.(c) Costs associated with stock compensation
and restricted stock amortization, which have been reflected in the
categories associated with the direct personnel costs, which
are combined with the cash costs in the 10-Q.(d) Reflects the
change in market value of the vested Company stock held in the
deferred compensation plan.(e) Included in interest expense in the
10-Q.
RANGE RESOURCES CORPORATION
BALANCE SHEETS |
|
|
|
|
|
|
|
(In thousands) |
|
March 31, |
|
|
|
December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(Unaudited) |
|
|
|
(Audited) |
|
Assets |
|
|
|
|
|
|
|
Current assets |
$ |
573,619 |
|
|
$ |
730,927 |
|
Derivative assets |
|
38,776 |
|
|
|
44,339 |
|
Natural gas and oil properties, successful efforts method |
|
5,786,965 |
|
|
|
5,754,656 |
|
Transportation and field assets |
|
3,100 |
|
|
|
3,494 |
|
Operating lease right-of-use assets |
|
35,906 |
|
|
|
40,832 |
|
Deferred tax assets |
|
35,436 |
|
|
|
— |
|
Other |
|
86,483 |
|
|
|
86,259 |
|
|
$ |
6,560,285 |
|
|
$ |
6,660,507 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’
Equity |
|
|
|
|
|
|
|
Current liabilities |
$ |
737,179 |
|
|
$ |
766,371 |
|
Asset retirement obligations |
|
5,310 |
|
|
|
5,310 |
|
Derivative liabilities |
|
845,312 |
|
|
|
162,767 |
|
Current maturities of long-term debt |
|
749,483 |
|
|
|
218,017 |
|
|
|
|
|
|
|
|
|
Bank debt |
|
— |
|
|
|
— |
|
Senior notes |
|
1,829,734 |
|
|
|
2,707,770 |
|
Total long-term debt |
|
1,829,734 |
|
|
|
2,707,770 |
|
|
|
|
|
|
|
|
|
Deferred tax liability |
|
32,243 |
|
|
|
117,642 |
|
Derivative liabilities |
|
126,030 |
|
|
|
8,216 |
|
Deferred compensation liability |
|
197,494 |
|
|
|
137,102 |
|
Operating lease liabilities |
|
23,913 |
|
|
|
24,861 |
|
Asset retirement obligations and other liabilities |
|
102,040 |
|
|
|
101,509 |
|
Divestiture contract obligation |
|
311,443 |
|
|
|
325,279 |
|
|
|
|
|
|
|
|
|
Common stock and retained earnings |
|
1,646,338 |
|
|
|
2,115,820 |
|
Other comprehensive loss |
|
(75 |
) |
|
|
(150 |
) |
Common stock held in treasury stock |
|
(46,159 |
) |
|
|
(30,007 |
) |
Total stockholders’ equity |
|
1,600,104 |
|
|
|
2,085,663 |
|
|
$ |
6,560,285 |
|
|
$ |
6,660,507 |
|
RECONCILIATION OF TOTAL
REVENUES AND OTHER INCOME TO TOTAL REVENUE EXCLUDING CERTAIN ITEMS,
a non-GAAP measure |
|
(Unaudited, in thousands) |
|
|
Three Months Ended March 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and other income,
as reported |
$ |
180,736 |
|
|
$ |
626,032 |
|
|
|
-71 |
% |
Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
Total change in fair value related to derivatives prior to
settlement loss |
|
805,922 |
|
|
|
18,484 |
|
|
|
|
|
ARO settlement (gain) loss |
|
— |
|
|
|
(1 |
) |
|
|
|
|
Total revenues, as adjusted,
non-GAAP |
$ |
986,658 |
|
|
$ |
644,515 |
|
|
|
53 |
% |
RANGE RESOURCES CORPORATION
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
(Unaudited in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(456,808 |
) |
|
$ |
27,151 |
|
Adjustments to reconcile net
cash provided from continuing operations: |
|
|
|
|
|
|
|
Deferred income tax (benefit) expense |
|
(120,832 |
) |
|
|
2,521 |
|
Depletion, depreciation, amortization and impairment |
|
85,604 |
|
|
|
88,383 |
|
Abandonment and impairment of unproved properties |
|
1,996 |
|
|
|
3,029 |
|
Derivative fair value loss |
|
939,057 |
|
|
|
57,879 |
|
Cash settlements on derivative financial instruments |
|
(133,135 |
) |
|
|
(39,395 |
) |
Divestiture contract obligation, including accretion, net of
gain |
|
10,954 |
|
|
|
12,995 |
|
Amortization of deferred issuance costs and other |
|
1,965 |
|
|
|
2,081 |
|
Deferred and stock-based compensation |
|
86,113 |
|
|
|
30,054 |
|
(Gain) loss on sale of assets and other |
|
(331 |
) |
|
|
1,860 |
|
Loss on early extinguishment of debt |
|
69,210 |
|
|
|
35 |
|
|
|
|
|
|
|
|
|
Changes in working capital: |
|
|
|
|
|
|
|
Accounts receivable |
|
58,674 |
|
|
|
(33,146 |
) |
Other current assets |
|
(5,908 |
) |
|
|
122 |
|
Accounts payable |
|
51,996 |
|
|
|
34,418 |
|
Accrued liabilities and other |
|
(182,141 |
) |
|
|
(78,735 |
) |
Net changes in working capital |
|
(77,379 |
) |
|
|
(77,341 |
) |
Net cash provided from operating activities |
$ |
406,414 |
|
|
$ |
109,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET
CASH PROVIDED FROM OPERATING ACTIVITIES, AS REPORTED, TO CASH FLOW
FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL, a non-GAAP
measure |
|
|
|
|
|
|
|
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2022 |
|
|
|
2021 |
|
Net cash provided from operating
activities, as reported |
$ |
406,414 |
|
|
$ |
109,252 |
|
Net changes in working capital |
|
77,379 |
|
|
|
77,341 |
|
Exploration expense |
|
4,247 |
|
|
|
5,152 |
|
Lawsuit settlements |
|
491 |
|
|
|
439 |
|
Non-cash compensation adjustment and other |
|
393 |
|
|
|
1,249 |
|
Cash flow from operations
before changes in working capital – non-GAAP measure |
$ |
488,924 |
|
|
$ |
193,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED WEIGHTED AVERAGE
SHARES OUTSTANDING |
|
|
|
|
|
|
|
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2022 |
|
|
|
2021 |
|
Basic: |
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
251,561 |
|
|
|
248,306 |
|
Stock held by deferred
compensation plan |
|
(6,211 |
) |
|
|
(6,147 |
) |
Adjusted basic |
|
245,350 |
|
|
|
242,159 |
|
|
|
|
|
|
|
|
|
Dilutive: |
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
251,561 |
|
|
|
248,306 |
|
Dilutive stock options under
treasury method |
|
(6,211 |
) |
|
|
(779 |
) |
Adjusted dilutive |
|
245,350 |
|
|
|
247,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
RECONCILIATION OF
NATURAL GAS, NGLs AND OIL SALES AND DERIVATIVE FAIR VALUE INCOME
(LOSS) TO CALCULATED CASH REALIZED NATURAL GAS, NGLs AND OIL PRICES
WITH AND WITHOUT THIRD PARTY TRANSPORTATION, GATHERING AND
COMPRESSION FEES, a non-GAAP measure |
|
|
(Unaudited, in thousands,
except per unit data) |
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
% |
|
Natural gas, NGL and oil sales
components: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
629,923 |
|
|
$ |
335,801 |
|
|
|
|
|
NGL sales |
|
338,369 |
|
|
|
230,408 |
|
|
|
|
|
Oil sales |
|
64,059 |
|
|
|
37,138 |
|
|
|
|
|
Total oil and gas sales, as
reported |
$ |
1,032,351 |
|
|
$ |
603,347 |
|
|
|
71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Derivative fair value loss, as
reported: |
$ |
(939,057 |
) |
|
$ |
(57,879 |
) |
|
|
|
|
Cash settlements on derivative
financial instruments – loss: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
|
99,458 |
|
|
|
1,348 |
|
|
|
|
|
NGLs |
|
12,318 |
|
|
|
30,919 |
|
|
|
|
|
Crude Oil |
|
21,359 |
|
|
|
7,128 |
|
|
|
|
|
Total change in fair value
related to commodity derivatives prior to settlement, a non-GAAP
measure |
$ |
(805,922 |
) |
|
$ |
(18,484 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering,
processing and compression components: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
$ |
160,436 |
|
|
$ |
161,660 |
|
|
|
|
|
NGLs |
|
137,340 |
|
|
|
112,670 |
|
|
|
|
|
Oil |
|
11 |
|
|
|
— |
|
|
|
|
|
Total transportation,
gathering, processing and compression, as reported |
$ |
297,787 |
|
|
$ |
274,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and oil sales,
including cash-settled derivatives: (c) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
530,465 |
|
|
$ |
334,453 |
|
|
|
|
|
NGL sales |
|
326,051 |
|
|
|
199,489 |
|
|
|
|
|
Oil sales |
|
42,700 |
|
|
|
30,010 |
|
|
|
|
|
Total |
$ |
899,216 |
|
|
$ |
563,952 |
|
|
|
59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas during
the periods: (a) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
131,250,337 |
|
|
|
130,328,741 |
|
|
|
1 |
% |
NGL (bbl) |
|
8,453,445 |
|
|
|
8,742,944 |
|
|
|
-3 |
% |
Oil (bbl) |
|
730,462 |
|
|
|
757,991 |
|
|
|
-4 |
% |
Gas equivalent (mcfe) (b) |
|
186,353,779 |
|
|
|
187,334,351 |
|
|
|
-1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas –
average per day: (a) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
1,458,337 |
|
|
|
1,448,097 |
|
|
|
1 |
% |
NGL (bbl) |
|
93,927 |
|
|
|
97,144 |
|
|
|
-3 |
% |
Oil (bbl) |
|
8,116 |
|
|
|
8,422 |
|
|
|
-4 |
% |
Gas equivalent (mcfe) (b) |
|
2,070,598 |
|
|
|
2,081,493 |
|
|
|
-1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, excluding
derivative settlements and before third party transportation
costs: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
4.80 |
|
|
$ |
2.58 |
|
|
|
86 |
% |
NGL (bbl) |
$ |
40.03 |
|
|
$ |
26.35 |
|
|
|
52 |
% |
Oil (bbl) |
$ |
87.70 |
|
|
$ |
49.00 |
|
|
|
79 |
% |
Gas equivalent (mcfe) (b) |
$ |
5.54 |
|
|
$ |
3.22 |
|
|
|
72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including
derivative settlements before third party transportation costs:
(c) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
4.04 |
|
|
$ |
2.57 |
|
|
|
57 |
% |
NGL (bbl) |
$ |
38.57 |
|
|
$ |
22.82 |
|
|
|
69 |
% |
Oil (bbl) |
$ |
58.46 |
|
|
$ |
39.59 |
|
|
|
48 |
% |
Gas equivalent (mcfe) (b) |
$ |
4.83 |
|
|
$ |
3.01 |
|
|
|
60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including
derivative settlements and after third party transportation costs:
(d) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
2.82 |
|
|
$ |
1.33 |
|
|
|
112 |
% |
NGL (bbl) |
$ |
22.32 |
|
|
$ |
9.93 |
|
|
|
125 |
% |
Oil (bbl) |
$ |
58.44 |
|
|
$ |
39.59 |
|
|
|
48 |
% |
Gas equivalent (mcfe) (b) |
$ |
3.23 |
|
|
$ |
1.55 |
|
|
|
108 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering and
compression expense per mcfe |
$ |
1.60 |
|
|
$ |
1.46 |
|
|
|
9 |
% |
(a) Represents volumes sold regardless of when produced.(b) Oil
and NGLs are converted at the rate of one barrel equals six mcfe
based upon the approximate relative energy content of oil to
natural gas, which is not necessarily indicative of the
relationship of oil and natural gas prices.(c) Excluding third
party transportation, gathering and compression costs.(d) Net of
transportation, gathering, and compression costs.
RANGE RESOURCES CORPORATION
RECONCILIATION OF
INCOME BEFORE INCOME TAXESAS REPORTED TO INCOME
BEFORE INCOME TAXES EXCLUDING CERTAIN ITEMS, a non-GAAP
measure |
|
|
(Unaudited, in thousands,
except per share data) |
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations
before income taxes, as reported |
$ |
(572,889 |
) |
|
$ |
29,840 |
|
|
|
|
|
Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale of assets |
|
(331 |
) |
|
|
1,860 |
|
|
|
|
|
(Gain) loss on ARO settlements |
|
— |
|
|
|
(1 |
) |
|
|
|
|
Change in fair value related to derivatives prior to
settlement |
|
805,922 |
|
|
|
18,484 |
|
|
|
|
|
Abandonment and impairment of unproved properties |
|
1,996 |
|
|
|
3,029 |
|
|
|
|
|
Loss on early extinguishment of debt |
|
69,210 |
|
|
|
35 |
|
|
|
|
|
Lawsuit settlements |
|
491 |
|
|
|
439 |
|
|
|
|
|
Exit and termination costs |
|
11,115 |
|
|
|
13,714 |
|
|
|
|
|
Brokered natural gas and marketing – non-cash stock-based
compensation |
|
519 |
|
|
|
450 |
|
|
|
|
|
Direct operating – non-cash stock-based compensation |
|
349 |
|
|
|
327 |
|
|
|
|
|
Exploration expenses – non-cash stock-based compensation |
|
452 |
|
|
|
386 |
|
|
|
|
|
General & administrative – non-cash stock-based
compensation |
|
11,573 |
|
|
|
9,405 |
|
|
|
|
|
Deferred compensation plan – non-cash adjustment |
|
73,343 |
|
|
|
19,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes, as
adjusted |
|
401,750 |
|
|
|
97,779 |
|
|
|
311 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense, as
adjusted |
|
|
|
|
|
|
|
|
|
|
|
Current |
|
4,751 |
|
|
|
168 |
|
|
|
|
|
Deferred (a) |
|
100,438 |
|
|
|
24,445 |
|
|
|
|
|
Net income excluding certain
items, a non-GAAP measure |
$ |
296,562 |
|
|
$ |
73,166 |
|
|
|
305 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income per common
share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.21 |
|
|
$ |
0.30 |
|
|
|
303 |
% |
Diluted |
$ |
1.18 |
|
|
$ |
0.30 |
|
|
|
293 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted shares
outstanding, if dilutive |
|
251,132 |
|
|
|
247,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Deferred taxes are estimated to be approximately
25% for 2022 and 2021.
RANGE RESOURCES CORPORATION
RECONCILIATION OF NET (LOSS) INCOME,
EXCLUDINGCERTAIN ITEMS AND ADJUSTED EARNINGS PER
SHARE, non-GAAP measures |
|
|
|
|
|
|
|
(In thousands, except per share
data) |
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net (loss) income, as
reported |
$ |
(456,808 |
) |
|
$ |
27,151 |
|
Adjustment for certain
special items: |
|
|
|
|
|
|
|
(Gain) loss on sale of assets |
|
(331 |
) |
|
|
1,860 |
|
Gain on ARO settlements |
|
— |
|
|
|
(1 |
) |
Loss on early extinguishment of debt |
|
69,210 |
|
|
|
35 |
|
Change in fair value related to derivatives prior to
settlement |
|
805,922 |
|
|
|
18,484 |
|
Abandonment and impairment of unproved properties |
|
1,996 |
|
|
|
3,029 |
|
Lawsuit settlements |
|
491 |
|
|
|
439 |
|
Exit and termination costs |
|
11,115 |
|
|
|
13,714 |
|
Non-cash stock-based compensation |
|
12,893 |
|
|
|
10,568 |
|
Deferred compensation plan |
|
73,343 |
|
|
|
19,811 |
|
Tax impact |
|
(221,269 |
) |
|
|
(21,924 |
) |
|
|
|
|
|
|
|
|
Net income excluding
certain items, a non-GAAP measure |
$ |
296,562 |
|
|
$ |
73,166 |
|
|
|
|
|
|
|
|
|
Net (loss) income per
diluted share, as reported |
$ |
(1.86 |
) |
|
$ |
0.11 |
|
Adjustment for certain
special items per diluted share: |
|
|
|
|
|
|
|
(Gain) loss on sale of assets |
|
(0.00 |
) |
|
|
0.01 |
|
Gain on ARO settlements |
|
— |
|
|
|
(0.00 |
) |
Loss on early extinguishment of debt |
|
0.28 |
|
|
|
0.00 |
|
Change in fair value related to derivatives prior to
settlement |
|
3.28 |
|
|
|
0.07 |
|
Abandonment and impairment of unproved properties |
|
0.01 |
|
|
|
0.01 |
|
Lawsuit settlements |
|
0.00 |
|
|
|
0.00 |
|
Exit and termination costs |
|
0.05 |
|
|
|
0.06 |
|
Non-cash stock-based compensation |
|
0.05 |
|
|
|
0.04 |
|
Deferred compensation plan |
|
0.30 |
|
|
|
0.08 |
|
Adjustment for rounding differences |
|
0.01 |
|
|
|
0.01 |
|
Tax impact |
|
(0.90 |
) |
|
|
(0.09 |
) |
Dilutive share impact |
|
(0.04 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
Net income per diluted
share, excluding certain items, a
non- GAAP
measure |
$ |
1.18 |
|
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share, a non-GAAP measure: |
|
|
|
|
|
|
|
Basic |
$ |
1.21 |
|
|
$ |
0.30 |
|
Diluted |
$ |
1.18 |
|
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
RECONCILIATION OF CASH MARGIN PER MCFE, a non-GAAP
measure |
|
|
|
|
|
|
|
(Unaudited, in thousands, except
per unit data) |
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
Natural gas, NGL and oil sales, as reported |
$ |
1,032,351 |
|
|
$ |
603,347 |
|
Derivative fair value loss, as reported |
|
(939,057 |
) |
|
|
(57,879 |
) |
Less non-cash fair value loss |
|
805,922 |
|
|
|
18,484 |
|
Brokered natural gas and marketing and other, as reported |
|
87,442 |
|
|
|
80,564 |
|
Less ARO settlement and other (gains) losses |
|
(19 |
) |
|
|
(62 |
) |
Cash revenue applicable to production |
|
986,639 |
|
|
|
644,454 |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Direct operating, as reported |
|
20,288 |
|
|
|
17,650 |
|
Less direct operating stock-based compensation |
|
(349 |
) |
|
|
(327 |
) |
Transportation, gathering and compression, as reported |
|
297,787 |
|
|
|
274,330 |
|
Production and ad valorem taxes, as reported |
|
6,590 |
|
|
|
4,625 |
|
Brokered natural gas and marketing, as reported |
|
93,123 |
|
|
|
72,335 |
|
Less brokered natural gas and marketing
stock-based compensation |
|
(519 |
) |
|
|
(450 |
) |
General and administrative, as reported |
|
43,026 |
|
|
|
38,004 |
|
Less G&A stock-based compensation |
|
(11,573 |
) |
|
|
(9,405 |
) |
Less lawsuit settlements |
|
(491 |
) |
|
|
(439 |
) |
Interest expense, as reported |
|
47,175 |
|
|
|
56,878 |
|
Less amortization of deferred financing costs |
|
(2,074 |
) |
|
|
(2,287 |
) |
Cash expenses |
|
492,983 |
|
|
|
450,914 |
|
|
|
|
|
|
|
|
|
Cash margin, a non-GAAP
measure |
$ |
493,656 |
|
|
$ |
193,540 |
|
|
|
|
|
|
|
|
|
Mmcfe produced during period |
|
186,354 |
|
|
|
187,334 |
|
|
|
|
|
|
|
|
|
Cash margin per
mcfe |
$ |
2.65 |
|
|
$ |
1.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF (LOSS)
INCOME BEFORE INCOME TAXES TO CASH MARGIN |
|
|
|
|
|
|
|
(Unaudited, in thousands, except
per unit data) |
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
(Loss) income before
income taxes, as reported |
$ |
(572,889 |
) |
|
$ |
29,840 |
|
Adjustments to reconcile
income (loss) before income taxes to cash
margin: |
|
|
|
|
|
|
|
ARO settlements and other gains |
|
(19 |
) |
|
|
(62 |
) |
Derivative fair value loss |
|
939,057 |
|
|
|
57,879 |
|
Net cash payments on derivative settlements |
|
(133,135 |
) |
|
|
(39,395 |
) |
Exploration expense |
|
4,247 |
|
|
|
5,152 |
|
Lawsuit settlements |
|
491 |
|
|
|
439 |
|
Exit and termination costs |
|
11,115 |
|
|
|
13,714 |
|
Deferred compensation plan |
|
73,343 |
|
|
|
19,811 |
|
Stock-based compensation (direct operating, brokered natural
gas and marketing, general and administrative and termination
costs) |
|
12,893 |
|
|
|
10,568 |
|
Interest – amortization of deferred financing costs |
|
2,074 |
|
|
|
2,287 |
|
Depletion, depreciation and amortization |
|
85,604 |
|
|
|
88,383 |
|
(Gain) loss on sale of assets |
|
(331 |
) |
|
|
1,860 |
|
Loss on early extinguishment of debt |
|
69,210 |
|
|
|
35 |
|
Abandonment and impairment of unproved properties |
|
1,996 |
|
|
|
3,029 |
|
Cash margin, a non-GAAP
measure |
$ |
493,656 |
|
|
$ |
193,540 |
|
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