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Range Announces Third Quarter 2022 Results

Range Resources Corporation
Range Resources Corporation

FORT WORTH, Texas, Oct. 24, 2022 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its third quarter 2022 financial results. 

Third Quarter 2022 Highlights –

  • Highest cash flow from operating activities in Company history → $521 million

  • Highest cash flow from operations, before working capital changes, in Company history → $550 million

  • Capital spending was $138 million, approximately 29% of the 2022 budget

  • Quarterly dividend of $0.08 per quarter initiated in September

  • Share repurchase authorization increased by $1 billion in October

  • Repurchased 5.7 million shares at an average of $29.41 per share

  • Realizations before NYMEX hedges of $7.40 per mcfe

  • Natural gas differentials, including basis hedging, averaged ($0.38) per mcf to NYMEX

  • Pre-hedge NGL realizations of $35.30 per barrel

  • Production averaged 2.13 Bcfe per day, approximately 70% natural gas

Commenting on the quarter, Jeff Ventura, the Company’s CEO said, “Range delivered record free cash flow and cash flow per share in the third quarter, allowing us to reduce net debt while increasing returns of capital to shareholders. Range has unlocked a massive inventory of high-quality wells in the Marcellus, measured in decades, and translated that inventory into a business capable of generating healthy free cash flow and returns of capital through the cycles. As a result of Range’s organic operational and financial performance, commitment to disciplined spending and confidence in free cash flow sustainability, we are tripling our share repurchase authorization to $1.5 billion. We continue to view share repurchases as a compelling investment, given favorable long-term fundamentals and the underlying value of our de-risked multi-decade core inventory. This repeatable, low-risk, low-decline asset base underpins Range’s peer-leading capital intensity and resilient free cash flow profile.”

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.

Third Quarter 2022 Results

GAAP revenues for third quarter 2022 totaled $1.1 billion, GAAP net cash provided from operating activities (including changes in working capital) was $521 million, and GAAP net income was $373 million ($1.49 per diluted share).  Third quarter earnings results include a $458 million mark-to-market derivative loss due to the increases in commodity prices.

Non-GAAP revenues for third quarter 2022 totaled $1.1 billion, and cash flow from operations before changes in working capital, a non-GAAP measure, was $550 million.  Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $336 million ($1.37 per diluted share) in third quarter 2022.

The following table details Range’s third quarter 2022 unit costs per mcfe(a):

Expenses

 

3Q 2022
(per mcfe)

 

2Q 2022
(per mcfe)

 

Increase (Decrease)

 

 

 

 

 

 

 

Direct operating

 

$

0.11

 

 

$

0.10

 

 

10

%

Transportation, gathering,

 

 

 

 

 

 

 

 

 

 

 

processing and compression(a)

 

 

1.65

 

 

 

1.70

 

 

(3

%)

Production and ad valorem taxes

 

 

0.04

 

 

 

0.04

 

 

0

%

General and administrative(a)

 

 

0.16

 

 

 

0.17

 

 

(6

%)

Interest expense(a)

 

 

0.19

 

 

 

0.21

 

 

(10

%)

Total cash unit costs(b)

 

 

2.15

 

 

 

2.22

 

 

(3

)%

Depletion, depreciation and

 

 

 

 

 

 

 

 

 

 

 

amortization (DD&A)

 

 

0.46

 

 

 

0.46

 

 

0

%

Total unit costs plus DD&A(b)

 

$

2.61

 

 

$

2.68

 

 

(3

)%


 

(a)

Excludes stock-based compensation, one-time 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 third quarter 2022(a):

 

3Q22 Production & Realized Pricing

 

 

Natural Gas
(Mcf)

 

Oil
(Bbl)

 

NGLs
(Bbl)

 

Natural Gas
Equivalent
(Mcfe)

 

 

 

 

 

 

 

 

 

Net production per day

 

 

1,487,640

 

 

 

7,098

 

 

 

100,387

 

 

 

2,132,550

 

 

 

 

 

 

 

 

 

 

Average NYMEX price

 

$

8.19

 

 

$

91.55

 

 

$

36.83

 

 

 

Differential, including basis hedging

 

 

(0.38

)

 

 

(6.86

)

 

 

(1.53

)

 

 

Realized prices before NYMEX hedges

 

 

7.81

 

 

 

84.69

 

 

 

35.30

 

 

 

7.40

 

Settled NYMEX hedges

 

 

(3.39

)

 

 

(29.28

)

 

 

0.44

 

 

 

(2.45

)

Average realized prices after hedges

 

$

4.42

 

 

$

55.41

 

 

$

35.74

 

 

$

4.95

 


 

(a)

May not add due to rounding

 

 

 

Third quarter 2022 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $4.95 per mcfe.

  • The average natural gas price, including the impact of basis hedging, was $7.81 per mcf, or a ($0.38) per mcf differential to NYMEX. Natural gas realizations for Range have remained strong in recent months, and as a result, the Company is improving guidance for average 2022 natural gas differentials versus NYMEX to an expected range of ($0.30) to ($0.35) per mcf.

  • Range’s pre-hedge NGL price for 3Q was $35.30 per barrel, an increase of $1.25 versus the prior year quarter and approximately $1.53 below the Mont Belvieu weighted equivalent. During the third quarter, the spread between European naphtha and Mont Belvieu ethane prices decreased considerably. This change in relative pricing for a portion of Range’s sales was the primary driver of Range’s discount to Mont Belvieu for the quarter. The Company expects a slight improvement to its fourth quarter differential and further improvement into 2023 based on forward commodity pricing.

  • Crude oil and condensate price realizations, before realized hedges, averaged $84.69 per barrel, or $6.86 below WTI (West Texas Intermediate). Range continues to expect the 2022 condensate differential to average $6.00-$8.00 below WTI.

Financial Position and Share Buyback

During the third quarter, Range purchased 5.7 million shares at an average price of approximately $29.41 per share. On October 21st, Range’s Board of Directors authorized a $1 billion increase to the Company’s share repurchase program. Range currently has approximately 242 million shares outstanding and $1.2 billion of availability on the share repurchase program.

As of September 30, 2022, Range had net debt outstanding of approximately $2.2 billion, consisting of $2.4 billion of senior notes and $157 million in cash. On a trailing twelve-month basis, Range’s leverage ratio, defined as Net-Debt-to-EBITDAX, was approximately 1.0x, with further improvement expected over the coming quarters.

Capital Expenditures

Third quarter 2022 drilling and completion expenditures were $133 million. In addition, during the quarter, $5 million was invested in acreage leasehold and gathering systems. Third quarter capital spending represents approximately 29% of Range’s total capital budget in 2022. Total capital expenditures year to date were $382 million at the end of the third quarter. Range expects capital expenditures to trend toward the upper end of its full-year 2022 capital spending guidance of $460 million to $480 million.

Production and Operational Activity

Production for third quarter was 2.13 Bcfe per day, representing a 3% increase over second quarter 2022. The Company expects a similar production increase in the fourth quarter. This will place Range near the low-end of annual guidance of 2.12 – 2.16 Bcfe per day, despite unplanned third-party midstream maintenance that impacted third and fourth quarter volumes. The Company is currently producing approximately 2.2 Bcfe per day.

The table below summarizes expected 2022 activity regarding the number of wells to sales in each area.

 

Wells TIL
3Q 2022

 

Calendar 2022
Planned TIL

 

Remaining
2022

SW PA Super-Rich

0

 

7

 

3

SW PA Wet

8

 

21

 

7

SW PA Dry

4

 

26

 

6

NE PA Dry

6

 

9

 

3

Total Wells

18

 

63

 

19


Guidance – 2022

Capital & Production Guidance

As previously noted, Range is targeting holding production approximately flat at 2.12 – 2.16 Bcfe per day, approximately 30% attributed to liquids production, with expectations at the lower end of guidance for the full year 2022 given timing of third-party infrastructure maintenance. Range’s 2022 all-in capital budget is $460 million - $480 million with expectations at the upper end of the guidance.

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:

$0.04 - $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 - $15 million


Updated Price Guidance

Based on recent market indications, Range expects to average the following price differentials for its production.

FY 2022 Natural Gas:(1)

NYMEX minus $0.30 to $0.35

4Q 2022 Natural Gas Liquids (including ethane):(2)

MB minus $0.50 - $1.50 per barrel

FY 2022 Oil/Condensate:

WTI minus $6.00 to $8.00


 

(1)

Including basis hedging

 

(2)

Mont Belvieu-equivalent pricing based on weighting of 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 natural gas basis hedges as of September 30, 2022, was a net gain of $23.8 million.

Conference Call Information

A conference call to review the financial results is scheduled on Tuesday, 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 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.

SOURCE: Range Resources Corporation

Range Investor Contact:

Laith Sando, Vice President – Investor Relations
817-869-4267
lsando@rangeresources.com

Range Media Contact:

Mark Windle, Director of Corporate Communications
724-873-3223
mwindle@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 September 30,

 

Nine Months Ended September 30,

 

 

2022

 

 

 

2021

 

 

 

%

 

 

 

2022

 

 

 

2021

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues and other income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas, NGLs and oil sales (a)

$

1,435,152

 

 

$

849,305

 

 

 

 

 

 

$

3,824,395

 

 

$

2,074,507

 

 

 

 

 

Derivative fair value loss

 

(457,708

)

 

 

(652,220

)

 

 

 

 

 

 

(1,636,687

)

 

 

(959,782

)

 

 

 

 

Brokered natural gas, marketing and other (b)

 

132,681

 

 

 

105,312

 

 

 

 

 

 

 

326,441

 

 

 

247,337

 

 

 

 

 

ARO settlement gain (loss) (b)

 

8

 

 

 

(3

)

 

 

 

 

 

 

8

 

 

 

(3

)

 

 

 

 

Other (b)

 

412

 

 

 

245

 

 

 

 

 

 

 

2,267

 

 

 

1,334

 

 

 

 

 

Total revenues and other income

 

1,110,545

 

 

 

302,639

 

 

 

267

%

 

 

2,516,424

 

 

 

1,363,393

 

 

 

85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

20,918

 

 

 

19,926

 

 

 

 

 

 

 

60,545

 

 

 

56,667

 

 

 

 

 

Direct operating – stock-based compensation (c)

 

372

 

 

 

319

 

 

 

 

 

 

 

1,083

 

 

 

986

 

 

 

 

 

Transportation, gathering, processing and compression

 

323,019

 

 

 

296,510

 

 

 

 

 

 

 

941,213

 

 

 

853,684

 

 

 

 

 

Transportation, gathering, processing and compression – Settlements

 

 

 

 

 

 

 

 

 

 

 

7,500

 

 

 

 

 

 

 

 

Production and ad valorem taxes

 

8,428

 

 

 

7,140

 

 

 

 

 

 

 

22,486

 

 

 

20,179

 

 

 

 

 

Brokered natural gas and marketing

 

126,622

 

 

 

105,392

 

 

 

 

 

 

 

328,649

 

 

 

245,838

 

 

 

 

 

Brokered natural gas and marketing – stock-based compensation (c)

 

663

 

 

 

446

 

 

 

 

 

 

 

1,868

 

 

 

1,339

 

 

 

 

 

Exploration

 

7,105

 

 

 

5,513

 

 

 

 

 

 

 

18,540

 

 

 

15,331

 

 

 

 

 

Exploration – non-cash stock-based compensation (c)

 

393

 

 

 

368

 

 

 

 

 

 

 

1,163

 

 

 

1,116

 

 

 

 

 

Abandonment and impairment of unproved properties

 

3,186

 

 

 

2,000

 

 

 

 

 

 

 

12,319

 

 

 

7,206

 

 

 

 

 

General and administrative

 

30,714

 

 

 

31,398

 

 

 

 

 

 

 

94,695

 

 

 

90,300

 

 

 

 

 

General and administrative – stock-based compensation (c)

 

10,402

 

 

 

9,845

 

 

 

 

 

 

 

32,245

 

 

 

28,632

 

 

 

 

 

General and administrative – lawsuit settlements

 

81

 

 

 

7,818

 

 

 

 

 

 

 

776

 

 

 

8,375

 

 

 

 

 

General and administrative – bad debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exit and termination costs

 

11,065

 

 

 

11,789

 

 

 

 

 

 

 

58,249

 

 

 

9,557

 

 

 

 

 

Exit and termination costs – stock-based compensation (c)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation plan (d)

 

5,795

 

 

 

34,278

 

 

 

 

 

 

 

59,917

 

 

 

89,551

 

 

 

 

 

Interest expense

 

37,173

 

 

 

54,483

 

 

 

 

 

 

 

121,137

 

 

 

164,039

 

 

 

 

 

Interest expense – amortization of deferred financing costs (c)

 

1,563

 

 

 

2,326

 

 

 

 

 

 

 

6,775

 

 

 

6,935

 

 

 

 

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

69,232

 

 

 

98

 

 

 

 

 

Depletion, depreciation and amortization

 

90,471

 

 

 

93,116

 

 

 

 

 

 

 

262,573

 

 

 

272,128

 

 

 

 

 

Impairment of proved property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of assets

 

(135

)

 

 

(78

)

 

 

 

 

 

 

(548

)

 

 

(724

)

 

 

 

 

Total costs and expenses

 

677,835

 

 

 

682,589

 

 

 

-1

%

 

 

2,100,417

 

 

 

1,871,237

 

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

432,710

 

 

 

(379,950

)

 

 

214

%

 

 

416,007

 

 

 

(507,844

)

 

 

182

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

6,981

 

 

 

4,484

 

 

 

 

 

 

 

20,732

 

 

 

7,221

 

 

 

 

 

Deferred

 

52,642

 

 

 

(34,167

)

 

 

 

 

 

 

26,141

 

 

 

(35,477

)

 

 

 

 

 

 

59,623

 

 

 

(29,683

)

 

 

 

 

 

 

46,873

 

 

 

(28,256

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

373,087

 

 

$

(350,267

)

 

 

207

%

 

$

369,134

 

 

$

(479,588

)

 

 

177

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) Per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

1.52

 

 

$

(1.44

)

 

 

 

 

 

$

1.48

 

 

$

(1.98

)

 

 

 

 

Diluted

$

1.49

 

 

$

(1.44

)

 

 

 

 

 

$

1.45

 

 

$

(1.98

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, as reported:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

239,768

 

 

 

243,311

 

 

 

-1

%

 

 

242,850

 

 

 

242,692

 

 

 

0

%

Diluted

 

245,023

 

 

 

243,311

 

 

 

1

%

 

 

248,360

 

 

 

242,692

 

 

 

2

%


 

(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,

 

 

 

2022

 

 

 

2021

 

 

 

(Unaudited)

 

 

 

(Audited)

 

Assets

 

 

 

 

 

 

 

Current assets

$

825,016

 

 

$

730,927

 

Derivative assets

 

50,772

 

 

 

44,339

 

Natural gas and oil properties, successful efforts method

 

5,871,600

 

 

 

5,754,656

 

Transportation and field assets

 

2,732

 

 

 

3,494

 

Operating lease right-of-use assets

 

96,567

 

 

 

40,832

 

Other

 

73,089

 

 

 

86,259

 

 

$

6,919,776

 

 

$

6,660,507

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

Current liabilities

$

903,623

 

 

$

766,371

 

Asset retirement obligations

 

5,310

 

 

 

5,310

 

Derivative liabilities

 

652,585

 

 

 

162,767

 

Current maturities of long-term debt

 

528,149

 

 

 

218,017

 

 

 

 

 

 

 

 

 

Bank debt

 

 

 

 

 

Senior notes

 

1,831,675

 

 

 

2,707,770

 

Total debt

 

1,831,675

 

 

 

2,707,770

 

 

 

 

 

 

 

 

 

Deferred tax liability

 

143,814

 

 

 

117,642

 

Derivative liabilities

 

155,995

 

 

 

8,216

 

Deferred compensation liability

 

85,750

 

 

 

137,102

 

Operating lease liabilities

 

37,458

 

 

 

24,861

 

Asset retirement obligations and other liabilities

 

99,268

 

 

 

101,509

 

Divestiture contract obligation

 

312,665

 

 

 

325,279

 

 

 

 

 

 

 

 

 

Common stock and retained earnings

 

2,502,298

 

 

 

2,115,820

 

Other comprehensive loss

 

37

 

 

 

(150

)

Common stock held in treasury stock

 

(338,851

)

 

 

(30,007

)

Total stockholders’ equity

 

2,163,484

 

 

 

2,085,663

 

 

$

6,919,776

 

 

$

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
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

 

2022

 

 

 

2021

 

 

 

%

 

 

 

2022

 

 

 

2021

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and other income, as reported

$

1,110,545

 

 

$

302,639

 

 

 

267

%

 

$

2,516,424

 

 

$

1,363,393

 

 

 

85

%

Adjustment for certain special items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total change in fair value related to derivatives prior to settlement (gain) loss

 

(6,969

)

 

 

492,763

 

 

 

 

 

 

 

631,165

 

 

 

720,617

 

 

 

 

 

ARO settlement (gain) loss

 

(8

)

 

 

3

 

 

 

 

 

 

 

(8

)

 

 

3

 

 

 

 

 

Total revenues, as adjusted, non-GAAP

$

1,103,568

 

 

$

795,405

 

 

 

39

%

 

$

3,147,581

 

 

$

2,084,013

 

 

 

51

%


RANGE RESOURCES CORPORATION

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

373,087

 

 

$

(350,267

)

 

$

369,134

 

 

$

(479,588

)

Adjustments to reconcile net cash provided from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income tax expense (benefit)

 

52,642

 

 

 

(34,167

)

 

 

26,141

 

 

 

(35,477

)

Depletion, depreciation, amortization and impairment

 

90,471

 

 

 

93,116

 

 

 

262,573

 

 

 

272,128

 

Abandonment and impairment of unproved properties

 

3,186

 

 

 

2,000

 

 

 

12,319

 

 

 

7,206

 

Derivative fair value loss

 

457,708

 

 

 

652,220

 

 

 

1,636,687

 

 

 

959,782

 

Cash settlements on derivative financial instruments

 

(464,677

)

 

 

(159,457

)

 

 

(1,005,522

)

 

 

(239,165

)

Divestiture contract obligation, including accretion, net of gain

 

10,930

 

 

 

11,602

 

 

 

57,791

 

 

 

8,467

 

Allowance for bad debts

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred issuance costs and other

 

1,401

 

 

 

1,994

 

 

 

6,521

 

 

 

6,253

 

Deferred and stock-based compensation

 

17,242

 

 

 

44,833

 

 

 

95,397

 

 

 

119,946

 

(Gain) loss on sale of assets and other

 

(135

)

 

 

(78

)

 

 

(548

)

 

 

(724

)

Loss on early extinguishment of debt

 

 

 

 

 

 

 

69,232

 

 

 

98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in working capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(25,446

)

 

 

(67,066

)

 

 

(132,644

)

 

 

(116,204

)

Other current assets

 

3,621

 

 

 

(2,695

)

 

 

(19,478

)

 

 

(3,574

)

Accounts payable

 

15,918

 

 

 

13,073

 

 

 

52,292

 

 

 

34,313

 

Accrued liabilities and other

 

(14,979

)

 

 

(13,254

)

 

 

(177,806

)

 

 

(58,172

)

Net changes in working capital

 

(20,886

)

 

 

(69,942

)

 

 

(277,636

)

 

 

(143,637

)

Net cash provided from operating activities

$

520,969

 

 

$

191,854

 

 

$

1,252,089

 

 

$

475,289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net cash provided from operating activities, as reported

$

520,969

 

 

$

191,854

 

 

$

1,252,089

 

 

$

475,289

 

Net changes in working capital

 

20,886

 

 

 

69,942

 

 

 

277,636

 

 

 

143,637

 

Exploration expense

 

7,105

 

 

 

5,513

 

 

 

18,540

 

 

 

15,331

 

Lawsuit settlements

 

81

 

 

 

7,818

 

 

 

776

 

 

 

8,375

 

Transportation, gathering, processing and compression settlements

 

 

 

 

 

 

 

7,500

 

 

 

 

Non-cash compensation adjustment and other

 

688

 

 

 

945

 

 

 

1,599

 

 

 

3,453

 

Cash flow from operations before changes in working capital – non-GAAP measure

$

549,729

 

 

$

276,072

 

 

$

1,558,140

 

 

$

646,085

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

245,468

 

 

 

249,780

 

 

 

249,038

 

 

 

249,268

 

Stock held by deferred compensation plan

 

(5,700

)

 

 

(6,469

)

 

 

(6,188

)

 

 

(6,576

)

Adjusted basic

 

239,768

 

 

 

243,311

 

 

 

242,850

 

 

 

242,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

245,468

 

 

 

249,780

 

 

 

249,038

 

 

 

249,268

 

Dilutive stock options under treasury method

 

(445

)

 

 

(6,469

)

 

 

(678

)

 

 

(6,576

)

Adjusted dilutive

 

245,023

 

 

 

243,311

 

 

 

248,360

 

 

 

242,692

 


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)