RANGE RESOURCES CORPORATION (NYSE: RRC) today
announced its first quarter 2023 financial results.
First Quarter 2023 Highlights
–
- Cash flow from operating activities
of $475 million
- Cash flow from operations, before
working capital changes, of $400 million
- Capital spending was $152
million, approximately 26% of the 2023 budget
- Repurchased 400,000 shares at an
average of $24.16 per share
- Accumulated cash balance of $228
million
- Price realizations including hedges
of $4.00 per mcfe – premium of $0.54 over NYMEX natural gas
- NGL realizations of $27.60 per
barrel – premium of $1.63 over Mont Belvieu equivalent
- Natural gas differentials,
including basis hedging, averaged ($0.14) per mcf to NYMEX
- Production averaged 2.14 Bcfe per
day, approximately 70% natural gas
Commenting on the quarter, Jeff Ventura, the
Company’s CEO said, “Today, Range is in the best operational and
financial shape in Company history and the future of the Marcellus
is bright as we sit at the very low end of the global cost curve
with one of the lowest emissions intensities of any play. Range’s
multi-decade inventory, efficient operations and access to
diversified markets place our business in a desirable position to
deliver significant long-term value and competitive returns to
shareholders. The Range team remains focused on efficiently
developing our Marcellus assets to bring that value to shareholders
and I believe our first quarter results demonstrate continued
success in achieving corporate objectives.”
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.
First Quarter 2023 Results
GAAP revenues for first quarter 2023
totaled $1.2 billion, GAAP net cash provided from operating
activities (including changes in working capital) was $475
million, and GAAP net income was $481 million ($1.95 per
diluted share). First quarter earnings results include
a $368 million mark-to-market derivative gain due to
decreases in commodity prices.
Non-GAAP revenues for first quarter 2023
totaled $853 million, and cash flow from operations before
changes in working capital, a non-GAAP measure, was $400
million. Adjusted net income comparable to analysts’
estimates, a non-GAAP measure, was $239 million ($0.99 per
diluted share) in first quarter 2023.
The following table details Range’s first
quarter 2023 unit costs per mcfe(a):
Expenses |
|
1Q 2023 (per mcfe) |
|
1Q 2022(per mcfe) |
|
|
Increase (Decrease) |
|
|
|
|
|
|
|
|
|
Direct operating(a) |
|
$ |
0.14 |
|
$ |
0.11 |
|
|
27 |
% |
|
Transportation, gathering,
processing and compression(a) |
|
|
1.48 |
|
|
1.60 |
|
|
(8 |
%) |
|
Taxes other than income |
|
|
0.04 |
|
|
0.04 |
|
|
0 |
% |
|
General and
administrative(a) |
|
|
0.17 |
|
|
0.17 |
|
|
0 |
% |
|
Interest expense(a) |
|
|
0.16 |
|
|
0.24 |
|
|
(33 |
%) |
|
Total cash unit costs(b) |
|
|
1.99 |
|
|
2.15 |
|
|
(7 |
%) |
|
Depletion, depreciation and
amortization (DD&A) |
|
|
0.45 |
|
|
0.46 |
|
|
(2 |
%) |
|
Total unit costs plus
DD&A(b) |
|
$ |
2.44 |
|
$ |
2.61 |
|
|
(7 |
%) |
|
(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 first quarter 2023(a):
|
1Q23 Production & Realized Pricing |
|
|
Natural Gas(Mcf) |
|
Oil (Bbl) |
|
NGLs(Bbl) |
|
Natural GasEquivalent (Mcfe) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net production per day |
|
|
1,484,956 |
|
|
|
6,367 |
|
|
|
103,219 |
|
|
2,142,475 |
|
|
|
|
|
|
|
|
|
Average NYMEX price |
|
$ |
3.46 |
|
|
$ |
76.07 |
|
|
$ |
25.97 |
|
|
Differential, including basis
hedging |
|
|
(0.14 |
) |
|
|
(9.30 |
) |
|
|
1.63 |
|
|
Realized prices before NYMEX
hedges |
|
|
3.32 |
|
|
|
66.77 |
|
|
|
27.60 |
|
|
3.83 |
Settled NYMEX hedges |
|
|
0.26 |
|
|
|
(3.81 |
) |
|
|
— |
|
|
0.17 |
Average realized prices after
hedges |
|
$ |
3.58 |
|
|
$ |
62.96 |
|
|
$ |
27.60 |
|
$ |
4.00 |
(a) Totals may not be exact due
to rounding
First quarter 2023 natural gas, NGLs and oil
price realizations (including the impact of cash-settled hedges and
derivative settlements) averaged $4.00 per mcfe.
- The average natural gas price,
including the impact of basis hedging, was $3.32 per mcf, or a
($0.14) per mcf differential to NYMEX. The Company continues to
expect an average 2023 natural gas differential versus NYMEX to be
within a range of ($0.35) to ($0.45) per mcf.
- Range’s pre-hedge NGL price for 1Q
was $27.60 per barrel, approximately $1.63 above the Mont Belvieu
weighted equivalent.
- Crude oil and condensate price
realizations, before realized hedges, averaged $66.77 per barrel,
or $9.30 below WTI (West Texas Intermediate). Range continues to
expect the 2023 condensate differential to average $9.00-$13.00
below WTI.
Share Buyback and Financial
Position
During the first quarter, Range purchased
400,000 shares at an average price of approximately $24.16 per
share. Range currently has approximately 241 million shares
outstanding and $1.1 billion of availability on the share
repurchase program.
As of March 31, 2023, Range had net debt
outstanding of approximately $1.62 billion, consisting of
$1.85 billion of senior notes and $228 million in cash.
Capital Expenditures and Operational
Activity
First quarter 2023 drilling and completion
expenditures were $139 million. In addition, during the quarter,
approximately $12 million was invested in acreage leasehold and
gathering systems. First quarter capital spending represented
approximately 26% of Range’s total capital budget in 2023.
The table below summarizes expected 2023 activity
regarding the number of wells to sales in each
area.
|
|
|
Wells TIL1Q 2023 |
|
2023Planned TIL |
|
Remaining2023 |
SW PA Super-Rich |
|
|
2 |
|
3 |
|
1 |
SW PA Wet |
|
|
3 |
|
31 |
|
28 |
SW PA Dry |
|
|
4 |
|
24 |
|
20 |
NE PA Dry |
|
|
0 |
|
3 |
|
3 |
Total Wells |
|
|
9 |
|
61 |
|
52 |
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: |
$1.48 - $1.58 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: |
$8 - $10 million |
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 $0.35 to $0.45 |
FY 2023 Natural Gas Liquids
(including ethane):(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 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 March 31, 2023, was a net loss of $50.3 million.
Conference Call Information
A conference call to review the financial results
is scheduled on Tuesday, April 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 May 25th.
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
Relations817-869-4267lsando@rangeresources.com
Range Media Contact:
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, |
|
|
2023 |
|
|
|
2022 |
|
|
|
% |
|
Revenues and other income: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGLs and oil sales (a) |
$ |
736,282 |
|
|
$ |
1,032,351 |
|
|
|
|
|
Derivative fair value income (loss) |
|
367,967 |
|
|
|
(939,057 |
) |
|
|
|
|
Brokered natural gas, marketing and other (b) |
|
77,417 |
|
|
|
87,423 |
|
|
|
|
|
Other (b) |
|
4,694 |
|
|
|
19 |
|
|
|
|
|
Total revenues and other income |
|
1,186,360 |
|
|
|
180,736 |
|
|
|
556 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Direct operating |
|
26,569 |
|
|
|
19,939 |
|
|
|
|
|
Direct operating – stock-based compensation (c) |
|
415 |
|
|
|
349 |
|
|
|
|
|
Transportation, gathering, processing and compression |
|
285,483 |
|
|
|
297,787 |
|
|
|
|
|
Taxes other than income |
|
7,894 |
|
|
|
7,079 |
|
|
|
|
|
Brokered natural gas and marketing |
|
66,407 |
|
|
|
92,604 |
|
|
|
|
|
Brokered natural gas and marketing – stock-based
compensation (c) |
|
661 |
|
|
|
519 |
|
|
|
|
|
Exploration |
|
4,284 |
|
|
|
4,247 |
|
|
|
|
|
Exploration – non-cash stock-based compensation (c) |
|
320 |
|
|
|
452 |
|
|
|
|
|
Abandonment and impairment of unproved properties |
|
7,510 |
|
|
|
1,996 |
|
|
|
|
|
General and administrative |
|
33,422 |
|
|
|
30,473 |
|
|
|
|
|
General and administrative – stock-based compensation (c) |
|
9,600 |
|
|
|
11,573 |
|
|
|
|
|
General and administrative – lawsuit settlements |
|
124 |
|
|
|
491 |
|
|
|
|
|
Exit costs |
|
12,323 |
|
|
|
11,115 |
|
|
|
|
|
Deferred compensation plan (d) |
|
9,396 |
|
|
|
73,343 |
|
|
|
|
|
Interest expense |
|
30,857 |
|
|
|
45,101 |
|
|
|
|
|
Interest expense – amortization of deferred financing costs
(e) |
|
1,345 |
|
|
|
2,074 |
|
|
|
|
|
Loss on early extinguishment of debt |
|
— |
|
|
|
69,210 |
|
|
|
|
|
Depletion, depreciation and amortization |
|
86,562 |
|
|
|
85,604 |
|
|
|
|
|
Gain on sale of assets |
|
(138 |
) |
|
|
(331 |
) |
|
|
|
|
Total costs and expenses |
|
583,034 |
|
|
|
753,625 |
|
|
|
-23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes |
|
603,326 |
|
|
|
(572,889 |
) |
|
|
205 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit): |
|
|
|
|
|
|
|
|
|
|
|
Current |
|
2,699 |
|
|
|
4,751 |
|
|
|
|
|
Deferred |
|
119,180 |
|
|
|
(120,832 |
) |
|
|
|
|
|
|
121,879 |
|
|
|
(116,081 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
481,447 |
|
|
$ |
(456,808 |
) |
|
|
205 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per
Common Share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.98 |
|
|
$ |
(1.86 |
) |
|
|
|
|
Diluted |
$ |
1.95 |
|
|
$ |
(1.86 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding, as reported: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
238,019 |
|
|
|
245,350 |
|
|
|
-3 |
% |
Diluted |
|
240,882 |
|
|
|
245,350 |
|
|
|
-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) |
|
March 31, |
|
|
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(Unaudited) |
|
|
|
(Audited) |
|
Assets |
|
|
|
|
|
|
|
Current assets |
$ |
546,235 |
|
|
$ |
538,662 |
|
Derivative assets |
|
231,381 |
|
|
|
41,915 |
|
Natural gas and oil properties, successful efforts method |
|
5,950,245 |
|
|
|
5,890,404 |
|
Transportation and field assets |
|
2,087 |
|
|
|
2,434 |
|
Operating lease right-of-use assets |
|
67,608 |
|
|
|
84,070 |
|
Other |
|
84,711 |
|
|
|
68,077 |
|
|
$ |
6,882,267 |
|
|
$ |
6,625,562 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’
Equity |
|
|
|
|
|
|
|
Current liabilities |
$ |
736,311 |
|
|
$ |
864,678 |
|
Asset retirement obligations |
|
4,570 |
|
|
|
4,570 |
|
Derivative liabilities |
|
16,019 |
|
|
|
151,417 |
|
|
|
|
|
|
|
|
|
Bank debt |
|
— |
|
|
|
9,509 |
|
Senior notes |
|
1,833,238 |
|
|
|
1,832,451 |
|
Total long-term debt |
|
1,833,238 |
|
|
|
1,841,960 |
|
|
|
|
|
|
|
|
|
Deferred tax liability |
|
452,753 |
|
|
|
333,571 |
|
Derivative liabilities |
|
6,861 |
|
|
|
15,495 |
|
Deferred compensation liability |
|
103,711 |
|
|
|
99,907 |
|
Operating lease liabilities |
|
18,953 |
|
|
|
20,903 |
|
Asset retirement obligations and other liabilities |
|
114,662 |
|
|
|
112,981 |
|
Divestiture contract obligation |
|
289,734 |
|
|
|
304,074 |
|
|
|
|
|
|
|
|
|
Common stock and retained deficit |
|
3,742,451 |
|
|
|
3,305,198 |
|
Other comprehensive income |
|
476 |
|
|
|
467 |
|
Common stock held in treasury |
|
(437,472 |
) |
|
|
(429,659 |
) |
Total stockholders’ equity |
|
3,305,455 |
|
|
|
2,876,006 |
|
|
$ |
6,882,267 |
|
|
$ |
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 Ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and other income,
as reported |
$ |
1,186,360 |
|
|
$ |
180,736 |
|
|
|
556 |
% |
Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
Total change in fair value related to derivatives prior to
settlement (gain) loss |
|
(333,499 |
) |
|
|
805,922 |
|
|
|
|
|
Total revenues, as adjusted,
non-GAAP |
$ |
852,861 |
|
|
$ |
986,658 |
|
|
|
-14 |
% |
RANGE RESOURCES CORPORATION
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
(Unaudited in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
481,447 |
|
|
$ |
(456,808 |
) |
Adjustments to reconcile net
cash provided from continuing operations: |
|
|
|
|
|
|
|
Deferred income tax expense (benefit) |
|
119,180 |
|
|
|
(120,832 |
) |
Depletion, depreciation, amortization and impairment |
|
86,562 |
|
|
|
85,604 |
|
Abandonment and impairment of unproved properties |
|
7,510 |
|
|
|
1,996 |
|
Derivative fair value (income) loss |
|
(367,967 |
) |
|
|
939,057 |
|
Cash settlements on derivative financial instruments |
|
34,468 |
|
|
|
(133,135 |
) |
Divestiture contract obligation |
|
12,215 |
|
|
|
10,954 |
|
Amortization of deferred issuance costs and other |
|
1,310 |
|
|
|
1,965 |
|
Deferred and stock-based compensation |
|
20,681 |
|
|
|
86,113 |
|
Gain on sale of assets and other |
|
(138 |
) |
|
|
(331 |
) |
Loss on early extinguishment of debt |
|
— |
|
|
|
69,210 |
|
|
|
|
|
|
|
|
|
Changes in working capital: |
|
|
|
|
|
|
|
Accounts receivable |
|
225,213 |
|
|
|
58,674 |
|
Prepaid and other |
|
(5,335 |
) |
|
|
(5,908 |
) |
Accounts payable |
|
(10,822 |
) |
|
|
51,996 |
|
Accrued liabilities and other |
|
(129,368 |
) |
|
|
(182,141 |
) |
Net changes in working capital |
|
79,688 |
|
|
|
(77,379 |
) |
Net cash provided from operating activities |
$ |
474,956 |
|
|
$ |
406,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
2023 |
|
|
|
2022 |
|
Net cash provided from operating
activities, as reported |
$ |
474,956 |
|
|
$ |
406,414 |
|
Net changes in working capital |
|
(79,688 |
) |
|
|
77,379 |
|
Exploration expense |
|
4,284 |
|
|
|
4,247 |
|
Lawsuit settlements |
|
124 |
|
|
|
491 |
|
Non-cash compensation adjustment and other |
|
(146 |
) |
|
|
393 |
|
Cash flow from operations
before changes in working capital – non-GAAP measure |
$ |
399,530 |
|
|
$ |
488,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED WEIGHTED AVERAGE
SHARES OUTSTANDING |
|
|
|
|
|
|
|
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
Basic: |
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
243,667 |
|
|
|
251,561 |
|
Stock held by deferred
compensation plan |
|
(5,648 |
) |
|
|
(6,211 |
) |
Adjusted basic |
|
238,019 |
|
|
|
245,350 |
|
|
|
|
|
|
|
|
|
Dilutive: |
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
243,667 |
|
|
|
251,561 |
|
Dilutive stock options under
treasury method |
|
(2,785 |
) |
|
|
(6,211 |
) |
Adjusted dilutive |
|
240,882 |
|
|
|
245,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
% |
|
Natural gas, NGL and oil sales
components: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
441,580 |
|
|
$ |
629,923 |
|
|
|
|
|
NGL sales |
|
256,440 |
|
|
|
338,369 |
|
|
|
|
|
Oil sales |
|
38,262 |
|
|
|
64,059 |
|
|
|
|
|
Total oil and gas sales, as
reported |
$ |
736,282 |
|
|
$ |
1,032,351 |
|
|
|
-29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Derivative fair value income
(loss), as reported: |
$ |
367,967 |
|
|
$ |
(939,057 |
) |
|
|
|
|
Cash settlements on derivative
financial instruments – (gain) loss: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
|
(36,650 |
) |
|
|
99,458 |
|
|
|
|
|
NGLs |
|
— |
|
|
|
12,318 |
|
|
|
|
|
Crude Oil |
|
2,182 |
|
|
|
21,359 |
|
|
|
|
|
Total change in fair value related to commodity derivatives prior
to settlement, a non-GAAP measure |
$ |
333,499 |
|
|
$ |
(805,922 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering,
processing and compression components: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas |
$ |
152,589 |
|
|
$ |
160,436 |
|
|
|
|
|
NGLs |
|
132,712 |
|
|
|
137,340 |
|
|
|
|
|
Oil |
|
182 |
|
|
|
11 |
|
|
|
|
|
Total transportation,
gathering, processing and compression, as reported |
$ |
285,483 |
|
|
$ |
297,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas, NGL and oil sales,
including cash-settled derivatives: (c) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
478,230 |
|
|
$ |
530,465 |
|
|
|
|
|
NGL sales |
|
256,440 |
|
|
|
326,051 |
|
|
|
|
|
Oil sales |
|
36,080 |
|
|
|
42,700 |
|
|
|
|
|
Total |
$ |
770,750 |
|
|
$ |
899,216 |
|
|
|
-14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas during
the periods: (a) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
133,646,064 |
|
|
|
131,250,337 |
|
|
|
2 |
% |
NGL (bbl) |
|
9,289,739 |
|
|
|
8,453,445 |
|
|
|
10 |
% |
Oil (bbl) |
|
573,036 |
|
|
|
730,462 |
|
|
|
-22 |
% |
Gas equivalent (mcfe) (b) |
|
192,822,714 |
|
|
|
186,353,779 |
|
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Production of oil and gas –
average per day: (a) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
|
1,484,956 |
|
|
|
1,458,337 |
|
|
|
2 |
% |
NGL (bbl) |
|
103,219 |
|
|
|
93,927 |
|
|
|
10 |
% |
Oil (bbl) |
|
6,367 |
|
|
|
8,116 |
|
|
|
-22 |
% |
Gas equivalent (mcfe) (b) |
|
2,142,475 |
|
|
|
2,070,598 |
|
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, excluding derivative settlements and before third
party transportation costs: |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
3.30 |
|
|
$ |
4.80 |
|
|
|
-31 |
% |
NGL (bbl) |
$ |
27.60 |
|
|
$ |
40.03 |
|
|
|
-31 |
% |
Oil (bbl) |
$ |
66.77 |
|
|
$ |
87.70 |
|
|
|
-24 |
% |
Gas equivalent (mcfe) (b) |
$ |
3.82 |
|
|
$ |
5.54 |
|
|
|
-31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including derivative settlements before third party
transportation costs: (c) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
3.58 |
|
|
$ |
4.04 |
|
|
|
-11 |
% |
NGL (bbl) |
$ |
27.60 |
|
|
$ |
38.57 |
|
|
|
-28 |
% |
Oil (bbl) |
$ |
62.96 |
|
|
$ |
58.46 |
|
|
|
8 |
% |
Gas equivalent (mcfe) (b) |
$ |
4.00 |
|
|
$ |
4.83 |
|
|
|
-17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average prices, including
derivative settlements and after third party transportation costs:
(d) |
|
|
|
|
|
|
|
|
|
|
|
Natural gas (mcf) |
$ |
2.44 |
|
|
$ |
2.82 |
|
|
|
-14 |
% |
NGL (bbl) |
$ |
13.32 |
|
|
$ |
22.32 |
|
|
|
-40 |
% |
Oil (bbl) |
$ |
62.64 |
|
|
$ |
58.44 |
|
|
|
7 |
% |
Gas equivalent (mcfe) (b) |
$ |
2.52 |
|
|
$ |
3.23 |
|
|
|
-22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Transportation, gathering and
compression expense per mcfe |
$ |
1.48 |
|
|
$ |
1.60 |
|
|
|
-7 |
% |
(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
INCOMETAXES EXCLUDING CERTAIN ITEMS, a non-GAAP
measure |
|
|
(Unaudited, in thousands,
except per share data) |
|
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
before income taxes, as reported |
$ |
603,326 |
|
|
$ |
(572,889 |
) |
|
|
205 |
% |
Adjustment for certain special
items: |
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets |
|
(138 |
) |
|
|
(331 |
) |
|
|
|
|
Change in fair value related to derivatives prior to
settlement |
|
(333,499 |
) |
|
|
805,922 |
|
|
|
|
|
Abandonment and impairment of unproved properties |
|
7,510 |
|
|
|
1,996 |
|
|
|
|
|
Loss on early extinguishment of debt |
|
— |
|
|
|
69,210 |
|
|
|
|
|
Lawsuit settlements |
|
124 |
|
|
|
491 |
|
|
|
|
|
Exit costs |
|
12,323 |
|
|
|
11,115 |
|
|
|
|
|
Brokered natural gas and marketing – non-cash
stock-basedcompensation |
|
661 |
|
|
|
519 |
|
|
|
|
|
Direct operating – non-cash stock-based compensation |
|
415 |
|
|
|
349 |
|
|
|
|
|
Exploration expenses – non-cash stock-based compensation |
|
320 |
|
|
|
452 |
|
|
|
|
|
General & administrative – non-cash stock-based
compensation |
|
9,600 |
|
|
|
11,573 |
|
|
|
|
|
Deferred compensation plan – non-cash adjustment |
|
9,396 |
|
|
|
73,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes, as
adjusted |
|
310,038 |
|
|
|
401,750 |
|
|
|
-23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense, as
adjusted |
|
|
|
|
|
|
|
|
|
|
|
Current |
|
2,699 |
|
|
|
4,751 |
|
|
|
|
|
Deferred (a) |
|
68,610 |
|
|
|
100,438 |
|
|
|
|
|
Net income excluding certain
items, a non-GAAP measure |
$ |
238,729 |
|
|
$ |
296,562 |
|
|
|
-20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income per common
share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.00 |
|
|
$ |
1.21 |
|
|
|
-17 |
% |
Diluted |
$ |
0.99 |
|
|
$ |
1.18 |
|
|
|
-16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted shares
outstanding, if dilutive |
|
240,882 |
|
|
|
251,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 (LOSS), EXCLUDINGCERTAIN ITEMS AND ADJUSTED
EARNINGS PER SHARE, non-GAAP measures |
|
|
|
|
|
|
|
(In thousands, except per share
data) |
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net income (loss), as
reported |
$ |
481,447 |
|
|
$ |
(456,808 |
) |
Adjustment for certain
special items: |
|
|
|
|
|
|
|
Gain on sale of assets |
|
(138 |
) |
|
|
(331 |
) |
Loss on early extinguishment of debt |
|
— |
|
|
|
69,210 |
|
Change in fair value related to derivatives prior to
settlement |
|
(333,499 |
) |
|
|
805,922 |
|
Abandonment and impairment of unproved properties |
|
7,510 |
|
|
|
1,996 |
|
Lawsuit settlements |
|
124 |
|
|
|
491 |
|
Exit costs |
|
12,323 |
|
|
|
11,115 |
|
Non-cash stock-based compensation |
|
10,996 |
|
|
|
12,893 |
|
Deferred compensation plan |
|
9,396 |
|
|
|
73,343 |
|
Tax impact |
|
50,570 |
|
|
|
(221,269 |
) |
|
|
|
|
|
|
|
|
Net income excluding
certain items, a non-GAAP measure |
$ |
238,729 |
|
|
$ |
296,562 |
|
|
|
|
|
|
|
|
|
Net income (loss) per
diluted share, as reported |
$ |
1.95 |
|
|
$ |
(1.86 |
) |
Adjustment for certain
special items per diluted share: |
|
|
|
|
|
|
|
Gain on sale of assets |
|
(0.00 |
) |
|
|
(0.00 |
) |
Loss on early extinguishment of debt |
|
— |
|
|
|
0.28 |
|
Change in fair value related to derivatives prior to
settlement |
|
(1.38 |
) |
|
|
3.21 |
|
Abandonment and impairment of unproved properties |
|
0.03 |
|
|
|
0.01 |
|
Lawsuit settlements |
|
0.00 |
|
|
|
0.00 |
|
Exit costs |
|
0.05 |
|
|
|
0.04 |
|
Non-cash stock-based compensation |
|
0.05 |
|
|
|
0.05 |
|
Deferred compensation plan |
|
0.04 |
|
|
|
0.29 |
|
Tax impact |
|
0.21 |
|
|
|
(0.88 |
) |
Dilutive share impact (rabbi trust and other) |
|
0.04 |
|
|
|
0.04 |
|
|
|
|
|
|
|
|
|
Net income per diluted
share, excluding certain items, a
non- GAAP
measure |
$ |
0.99 |
|
|
$ |
1.18 |
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share, a non-GAAP measure: |
|
|
|
|
|
|
|
Basic |
$ |
1.00 |
|
|
$ |
1.21 |
|
Diluted |
$ |
0.99 |
|
|
$ |
1.18 |
|
|
|
|
|
|
|
|
|
RANGE RESOURCES CORPORATION
RECONCILIATION OF CASH
MARGIN PER MCFE, a non-GAAP measure |
|
|
|
|
|
|
|
(Unaudited, in thousands, except
per unit data) |
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
Natural gas, NGL and oil sales, as reported |
$ |
736,282 |
|
|
$ |
1,032,351 |
|
Derivative fair value income (loss), as reported |
|
367,967 |
|
|
|
(939,057 |
) |
Less non-cash fair value (gain) loss |
|
(333,499 |
) |
|
|
805,922 |
|
Brokered natural gas and marketing and other, as reported |
|
82,111 |
|
|
|
87,442 |
|
Less ARO settlement and other (gains) losses |
|
(4,694 |
) |
|
|
(19 |
) |
Cash revenue applicable to production |
|
848,167 |
|
|
|
986,639 |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Direct operating, as reported |
|
26,984 |
|
|
|
20,288 |
|
Less direct operating stock-based compensation |
|
(415 |
) |
|
|
(349 |
) |
Transportation, gathering and compression, as reported |
|
285,483 |
|
|
|
297,787 |
|
Taxes other than income, as reported |
|
7,894 |
|
|
|
7,079 |
|
Brokered natural gas and marketing, as reported |
|
67,068 |
|
|
|
93,123 |
|
Less brokered natural gas and marketing stock-based
compensation |
|
(661 |
) |
|
|
(519 |
) |
General and administrative, as reported |
|
43,146 |
|
|
|
42,537 |
|
Less G&A stock-based compensation |
|
(9,600 |
) |
|
|
(11,573 |
) |
Less lawsuit settlements |
|
(124 |
) |
|
|
(491 |
) |
Interest expense, as reported |
|
32,202 |
|
|
|
47,175 |
|
Less amortization of deferred financing costs |
|
(1,345 |
) |
|
|
(2,074 |
) |
Cash expenses |
|
450,632 |
|
|
|
492,983 |
|
|
|
|
|
|
|
|
|
Cash margin, a non-GAAP
measure |
$ |
397,535 |
|
|
$ |
493,656 |
|
|
|
|
|
|
|
|
|
Mmcfe produced during period |
|
192,823 |
|
|
|
186,354 |
|
|
|
|
|
|
|
|
|
Cash margin per
mcfe |
$ |
2.06 |
|
|
$ |
2.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INCOME
BEFORE INCOME TAXES TO CASH MARGIN |
|
|
|
|
|
|
|
(Unaudited, in thousands, except
per unit data) |
|
|
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes, as reported |
$ |
603,326 |
|
|
$ |
(572,889 |
) |
Adjustments to reconcile
income before income taxes to cash
margin: |
|
|
|
|
|
|
|
ARO settlements and other gains |
|
(4,694 |
) |
|
|
(19 |
) |
Derivative fair value (income) loss |
|
(367,967 |
) |
|
|
939,057 |
|
Net cash receipts (payments) on derivative settlements |
|
34,468 |
|
|
|
(133,135 |
) |
Exploration expense |
|
4,284 |
|
|
|
4,247 |
|
Lawsuit settlements |
|
124 |
|
|
|
491 |
|
Exit costs |
|
12,323 |
|
|
|
11,115 |
|
Deferred compensation plan |
|
9,396 |
|
|
|
73,343 |
|
Stock-based compensation (direct operating, brokered natural gas
and marketing, general and administrative and termination
costs) |
|
10,996 |
|
|
|
12,893 |
|
Interest – amortization of deferred financing costs |
|
1,345 |
|
|
|
2,074 |
|
Depletion, depreciation and amortization |
|
86,562 |
|
|
|
85,604 |
|
Gain on sale of assets |
|
(138 |
) |
|
|
(331 |
) |
Loss on early extinguishment of debt |
|
— |
|
|
|
69,210 |
|
Abandonment and impairment of unproved properties |
|
7,510 |
|
|
|
1,996 |
|
Cash margin, a non-GAAP
measure |
$ |
397,535 |
|
|
$ |
493,656 |
|
Range Resources (NYSE:RRC)
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Range Resources (NYSE:RRC)
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