RRC Range Resources Corp

RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its fourth quarter 2023 financial results and plans for 2024.

Full-Year 2023 Highlights –

• Cash flow from operating activities of $978 million
• Cash flow from operations, before working capital changes, of $1.1 billion
• Reduced net debt by $292 million, paid $77 million in dividends, and repurchased $19 million of shares
• Net production averaged 2,139 Mmcfe per day, approximately 69% natural gas
• All-in capital spending of $614 million, or $0.79 per mcfe
• Proved reserves of 18.1 Tcfe with positive performance revisions
• Increased hedge positions for 2024 and 2025 to approximately 55% and 25% of natural gas production with weighted-average floors of $3.70 and $4.11 per MMBtu, respectively
• Net Debt to EBITDAX of 1.3x (Non-GAAP) at year-end 2023

Commenting on the 2023 results and 2024 plans, Dennis Degner, the Company’s CEO said, “Range had a successful year – operating safely and efficiently, while generating free cash flow despite lower natural gas prices. Range’s 2023 free cash flow was allocated towards debt reduction and shareholder returns, while also building operational flexibility into our program. With the strongest balance sheet in company history, consistent operational performance, and a low capital reinvestment rate, we are targeting resilient free cash flow in 2024 and beyond. As demand for domestic and international natural gas and NGLs continues to increase in coming years, we believe Range is well-positioned on the low-end of the cost curve with a globally competitive emissions intensity and a high-return, long-life inventory of de-risked wells, measured in decades.”

2024 Capital and Production Guidance

Range’s 2024 all-in capital budget is expected to be $620 to $670 million, which consists of:

• Approximately $575 million of all-in maintenance capital including land and facilities,
• $30 - $45 million drilling and completion capital that adds to year-end 2024 well-in-process inventory,
• Up to $30 million on targeted acreage which increases planned lateral lengths and future inventory, and
• $15 - $20 million in water infrastructure/other, lowering future water-related costs

Range’s development plan for 2024 will target holding production flat for the year at approximately 2.12 – 2.16 Bcfe per day. For the year, Range plans to run two drilling rigs and one frac crew. As a result of operational efficiencies captured in 2023, this level of activity will result in Range building in-process well inventory during 2024, as was done in 2023. This increased inventory of wells that have been drilled and/or completed, increases operational and capital flexibility for future years. Like last year, there is approximately $30 to $45 million included in the 2024 capital plan for the associated well inventory additions. Separately, up to $30 million is planned for investment in non-maintenance acreage that increases lateral lengths and adds incremental inventory to Range’s year-end total of 28 million high-quality, undrilled lateral feet. Additionally, $15 to $20 million is planned for infrastructure and other investments primarily associated with water infrastructure expansions that will allow for more efficient water logistics, thereby lowering future drilling and completion costs and lease operating expense.  

The table below summarizes 2023 activity and expected 2024 plans regarding the number of wells to sales in each area. To maintain current production levels, Range will turn to sales approximately 650,000 lateral feet in a year. Five wells that were planned for early 2024 were turned to sales in late 2023 because of faster drilling and completion times, though Range remained within the original 2023 capital guidance.

		Planned Wells TIL in 2024		Wells TIL in 2023
SW PA Super-Rich		9		3
SW PA Wet		27		29
SW PA Dry		11		20
NE PA Dry		2		3
Total Appalachia		49		55

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, 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.

Financial Position

During the fourth quarter, Range purchased 315,000 shares at an average price of approximately $29.75 per share. As of year-end, Range had approximately $1.1 billion of availability under the current share repurchase program.  

During 2023, Range reduced net debt by $292 million, representing the Company’s sixth consecutive year of debt reduction. At year-end, Range’s net debt was approximately $1.58 billion, consisting of $1.79 billion of senior notes and $212 million in cash. On a trailing twelve-month basis, Range’s leverage ratio, a non-GAAP metric, defined as Net-Debt-to-EBITDAX was approximately 1.3x.

In fourth quarter 2023, Range realized a total of $8.0 million in contingent derivative settlement gains related to an asset divestiture completed in 2020. Range expects to receive these cash proceeds in the first half of 2024.

Capital Expenditures

Fourth quarter 2023 drilling and completions expenditures were $118.3 million and $16.7 million was invested in acreage and gathering facilities. Total 2023 capital budget expenditures were $614 million, including $568 million on drilling and completion, and a combined $46 million on acreage, gas gathering systems and other investments.  

Fourth Quarter 2023 Results

Revenues for fourth quarter 2023 totaled $941 million, net cash provided from operating activities (including changes in working capital) was $226 million, and net income was $310 million ($1.27 per diluted share).  Fourth quarter earnings results include a $291 million mark-to-market derivative gain due to decreases in commodity prices.

Non-GAAP revenues for fourth quarter 2023 totaled $715 million, and cash flow from operations before changes in working capital, a non-GAAP measure, was $300 million.  Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $153 million ($0.63 per diluted share) in fourth quarter 2023.

The following table details Range’s fourth quarter 2023 unit costs per mcfe(a):

Expenses		4Q 2023 (per mcfe)			4Q 2022(per mcfe)				Increase (Decrease)
Direct operating		$	0.11		$	0.11			0%
Transportation, gathering, processing and compression			1.39			1.45			(4%)
Taxes other than income			0.02			0.06			(67%)
General and administrative(a)			0.17			0.15			13%
Interest expense(a)			0.14			0.18			(22%)
Total cash unit costs(b)			1.83			1.95			(6%)
Depletion, depreciation and amortization (DD&A)			0.45			0.45			-
Total unit costs plus DD&A(b)		$	2.28		$	2.39			(5%)

(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 fourth quarter 2023:

	4Q23 Production & Realized Pricing
		Natural Gas(Mcf)				Oil (Bbl)				NGLs(Bbl)			Natural GasEquivalent (Mcfe)
Net production per day			1,540,399				7,136				104,038			2,207,446
Average NYMEX price		$	2.88			$	78.28			$	22.49
Differential, including basis hedging			(0.48	)			(10.56	)			2.42
Realized prices before NYMEX hedges			2.40				67.72				24.91		$	3.07
Settled NYMEX hedges			0.28				(4.30	)			—			0.18
Average realized prices after hedges		$	2.68			$	63.42			$	24.91		$	3.25

Fourth quarter 2023 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $3.25 per mcfe.

• The average natural gas price, including the impact of basis hedging, was $2.40 per mcf, or a ($0.48) per mcf differential to NYMEX. Range’s 2024 natural gas differential is expected to be ($0.40) to ($0.45) relative to NYMEX.
• Crude oil and condensate price realizations, before realized hedges, averaged $67.72 per barrel, or $10.56 below WTI (West Texas Intermediate). Range’s 2024 condensate differential is expected to be ($10.00) to ($13.00) relative to NYMEX.
• Pre-hedge NGL realizations were $24.91 per barrel, approximately $2.42 above the Mont Belvieu weighted equivalent. Range’s 2024 NGL differential is expected to be ($1.00) to +$1.00 relative to a Mont Belvieu equivalent barrel.

2023 Proved Reserves

Summary of Changes in Proved Reserves(in Bcfe)
Balance at December 31, 2022	18,078
Extensions, discoveries and additions	207
Performance revisions	611
Price revisions	(2	)
Production	(781	)
Balance at December 31, 2023	18,113

As shown in the table below, the present value (PV10) of reserves under SEC methodology was $7.9 billion. For comparison, the PV10 using December 31, 2023 strip prices equates to $11.7 billion using the same proven reserve volumes.

	2023 SECPricing(a)		Strip Price Average(b)
Natural Gas Price ($/MMBtu)	$2.62		$3.57
WTI Oil Price ($/Bbl)	$78.10		$63.49
NGL Price ($/Bbl)	$24.91		$24.64
Proved Reserves PV10 ($ billions)	$7.9		$11.7

a) SEC benchmark prices adjusted for energy content, quality and basis differentials were $2.20 per mcf and $68.32 per barrel of crude oil.b) NYMEX 10-year strip prices adjusted for energy content, quality and basis differentials realized an average gas price differential of ($0.44) and an average realized oil differential of ($10.67) per barrel, which equate to $3.17 per mcf and $52.82 per barrel over the life of the reserves.

Year-end 2023 reserves included 6.6 Tcfe of proved undeveloped reserves from approximately 3.1 million lateral feet scheduled to be developed within the next five years with an expected development cost of $0.40 per mcfe. Future development costs included in the year-end 2023 reserve report utilized estimates consistent with 2024 expected drilling and completion costs. Beyond the five-year reserve calculation window, Range has approximately 25 million undrilled lateral feet of high-quality Marcellus and millions of undrilled lateral feet in the Utica and Upper Devonian horizons. Range also has a network of more than 250 existing well pads that provide the opportunity to develop future wells while utilizing existing roads, pads and infrastructure.

Guidance - 2024

Capital & Production Guidance

Range is targeting a maintenance program in 2024, holding production approximately flat at 2.12 – 2.16 Bcfe per day, with over 30% attributed to liquids production. Range’s 2024 all-in capital budget is expected to be $620 to $670 million, which consists of:

• $575 million of all-in maintenance capital including land and facilities,
• $30 - $45 million drilling and completion capital that adds to year-end 2024 well-in-process inventory,
• Up to $30 million on targeted acreage which increases lateral lengths and future inventory, and
• $15 - $20 million in water infrastructure/other, lowering future water-related costs

Full Year 2024 Expense Guidance  

Direct operating expense:	$0.13 - $0.14 per mcfe
Transportation, gathering, processing and compression expense:	$1.45 - $1.55 per mcfe
Other tax expense:	$0.04 - $0.05 per mcfe
Exploration expense:	$22 - $28 million
G&A expense:	$0.17 - $0.19 per mcfe
Net interest expense:	$0.14 - $0.16 per mcfe
DD&A expense:	$0.45 - $0.46 per mcfe
Net brokered gas marketing expense:	$8 - $12 million

Full Year 2024 Price Guidance

Based on recent market indications, Range expects to average the following price differentials for its production in 2024.

Natural Gas:(1)	NYMEX minus $0.40 to $0.45
Natural Gas Liquids (including ethane):(2)	Mont Belvieu minus $1.00 to plus $1.00 per barrel
Oil/Condensate:	WTI minus $10.00 to $13.00

(1) Including basis hedging(2) Weighting based on 53% ethane, 27% propane, 8% normal butane, 4% iso-butane and 8% natural gasoline.

Hedging Status

Range hedges portions of its expected future production volumes to increase the predictability of cash flow and to help improve and maintain a strong, flexible financial position. Please see the detailed hedging schedule posted on the Range website under Investor Relations - Financial Information.

Range has also hedged basis across the Company’s numerous natural gas sales points to limit volatility between benchmark and regional prices. The combined fair value of natural gas basis hedges as of December 31, 2023, was a net gain of $18.3 million.

Conference Call Information

A conference call to review the financial results is scheduled on Thursday, February 22 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 March 22nd.

Non-GAAP Financial Measures

Adjusted net income comparable to analysts’ estimates as set forth in this release represents income or loss from operations before income taxes adjusted for certain non-cash items (detailed in the accompanying table) less income taxes. We believe adjusted net income comparable to analysts’ estimates is calculated on the same basis as analysts’ estimates and that many investors use this published research in making investment decisions and evaluating operational trends of the Company and its performance relative to other oil and gas producing companies. Diluted earnings per share (adjusted) as set forth in this release represents adjusted net income comparable to analysts’ estimates on a diluted per share basis. A table is included which reconciles income or loss from operations to adjusted net income comparable to analysts’ estimates and diluted earnings per share (adjusted). On its website, the Company provides additional comparative information on prior periods along with non-GAAP revenue disclosures.

Cash flow from operations before changes in working capital (sometimes referred to as “adjusted cash flow”) as defined in this release represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items. Cash flow from operations before changes in working capital is widely accepted by the investment community as a financial indicator of an oil and gas company’s ability to generate cash to internally fund exploration and development activities and to service debt. Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity. A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release. On its website, the Company provides additional comparative information on prior periods for cash flow, cash margins and non-GAAP earnings as used in this release.

The cash prices realized for oil and natural gas production, including the amounts realized on cash-settled derivatives and net of transportation, gathering, processing and compression expense, is a critical component in the Company’s performance tracked by investors and professional research analysts in valuing, comparing, rating and providing investment recommendations and forecasts of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Due to the GAAP disclosures of various derivative transactions and third-party transportation, gathering, processing and compression expense, such information is now reported in various lines of the income statement. The Company believes that it is important to furnish a table reflecting the details of the various components of each income statement line to better inform the reader of the details of each amount and provide a summary of the realized cash-settled amounts and third-party transportation, gathering, processing and compression expense, which were historically reported as natural gas, NGLs and oil sales. This information is intended to bridge the gap between various readers’ understanding and fully disclose the information needed.

The Company discloses in this release the detailed components of many of the single line items shown in the GAAP financial statements included in the Company’s Annual or Quarterly Reports on Form 10-K or 10-Q. The Company believes that it is important to furnish this detail of the various components comprising each line of the Statements of Operations to better inform the reader of the details of each amount, the changes between periods and the effect on its financial results.   We believe that the presentation of PV10 value of our proved reserves is a relevant and useful metric for our investors as supplemental disclosure to the standardized measure, or after-tax amount, because it presents the discounted future net cash flows attributable to our proved reserves before taking into account future corporate income taxes and our current tax structure. While the standardized measure is dependent on the unique tax situation of each company, PV10 is based on prices and discount factors that are consistent for all companies. Because of this, PV10 can be used within the industry and by credit and security analysts to evaluate estimated net cash flows from proved reserves on a more comparable basis.

RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused in the Appalachian Basin. The Company is headquartered in Fort Worth, Texas.  More information about Range can be found at www.rangeresources.com.

Included within this release are certain “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not limited to historical facts, but reflect Range’s current beliefs, expectations or intentions regarding future events.  Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “outlook”, “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements.

All statements, except for statements of historical fact, made within regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as those regarding future well costs, expected asset sales, well productivity, future liquidity and financial resilience, anticipated exports and related financial impact, NGL market supply and demand, future commodity fundamentals and pricing, future capital efficiencies, future shareholder value, emerging plays, capital spending, anticipated drilling and completion activity, acreage prospectivity, expected pipeline utilization and future guidance information, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and Range's future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements. Further information on risks and uncertainties is available in Range's filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K. Unless required by law, Range undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.

The SEC permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions as well as the option to disclose probable and possible reserves. Range has elected not to disclose its probable and possible reserves in its filings with the SEC. Range uses certain broader terms such as "resource potential,” “unrisked resource potential,” "unproved resource potential" or "upside" or other descriptions of volumes of resources potentially recoverable through additional drilling or recovery techniques that may include probable and possible reserves as defined by the SEC's guidelines. Range has not attempted to distinguish probable and possible reserves from these broader classifications. The SEC’s rules prohibit us from including in filings with the SEC these broader classifications of reserves. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of actually being realized. Unproved resource potential refers to Range's internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques and have not been reviewed by independent engineers. Unproved resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer's Petroleum Resource Management System and does not include proved reserves. Area wide unproven resource potential has not been fully risked by Range's management. “EUR”, or estimated ultimate recovery, refers to our management’s estimates of hydrocarbon quantities that may be recovered from a well completed as a producer in the area. These quantities may not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System or the SEC’s oil and natural gas disclosure rules. Actual quantities that may be recovered from Range's interests could differ substantially. Factors affecting ultimate recovery include the scope of Range's drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors. Estimates of resource potential may change significantly as development of our resource plays provides additional data.

In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price or drilling cost changes. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K on the SEC’s website at www.sec.gov or by calling the SEC at 1-800-SEC-0330.

SOURCE: Range Resources Corporation

Range Investor Contact:

Laith Sando, Vice President – Investor Relations817-869-4267lsando@rangeresources.com

Range Media Contact:

Mark Windle, Director of Corporate Communications724-873-3223mwindle@rangeresources.com

RANGE RESOURCES CORPORATION
STATEMENTS OF INCOME
Based on GAAP reported earnings with additional
details of items included in each line in Form 10-K
(Unaudited, in thousands, except per share data)
	Three Months Ended December 31,												Twelve Months Ended December 31,
		2023				2022				%				2023				2022				%
Revenues and other income:
Natural gas, NGLs and oil sales (a)	$	603,279			$	1,086,697							$	2,334,661			$	4,911,092
Derivative fair value income (loss)		291,059				448,181								821,154				(1,188,506	)
Brokered natural gas, marketing and other (b)		44,460				93,335								206,552				419,776
ARO settlement (loss) gain (b)		2				—								1				8
Interest income (b)		1,921				381								5,937				422
Other (b)		636				1,785								6,113				4,011
Total revenues and other income		941,357				1,630,379				-42	%			3,374,418				4,146,803				-19	%
Costs and expenses:
Direct operating		22,200				22,282								94,362				82,827
Direct operating – stock-based compensation (c)		443				376								1,723				1,459
Transportation, gathering, processing and compression		283,061				294,228								1,113,941				1,235,441
Transportation, gathering, processing and compression – settlements		—				—								—				7,500
Taxes other than income		4,083				11,178								23,726				35,367
Brokered natural gas and marketing		44,319				95,960								200,789				424,609
Brokered natural gas and marketing – stock-based compensation (c)		491				571								2,095				2,439
Exploration		7,193				6,654								25,280				25,194
Exploration – stock-based compensation (c)		315				415								1,250				1,578
Abandonment and impairment of unproved properties		2,051				16,289								46,359				28,608
General and administrative		34,472				31,290								127,838				124,282
General and administrative – stock-based compensation (c)		9,389				9,778								35,850				42,023
General and administrative – lawsuit settlements		114				722								1,052				1,498
General and administrative – rig release penalty		—				532								—				532
General and administrative – bad debt expense		—				(250	)							—				(250	)
Exit costs		28,279				12,088								99,940				70,337
Deferred compensation plan (d)		(2,953	)			1,963								26,593				61,880
Interest expense		28,734				35,725								118,620				156,862
Interest expense – amortization of deferred financing costs (e)		1,352				1,508								5,384				8,283
Loss (gain) on early extinguishment of debt		1				261								(438	)			69,493
Depletion, depreciation and amortization		90,968				90,847								350,165				353,420
(Gain) loss on sale of assets		(101	)			139								(454	)			(409	)
Total costs and expenses		554,411				632,556				-12	%			2,274,075				2,732,973				-17	%
Income before income taxes		386,946				997,823				-61	%			1,100,343				1,413,830				-22	%
Income tax (benefit) expense:
Current		(1,453	)			(6,044	)							1,547				14,688
Deferred		78,365				189,631								227,654				215,772
		76,912				183,587								229,201				230,460
Net income	$	310,034			$	814,236				-62	%		$	871,142			$	1,183,370				-26	%
Net Income Per Common Share:
Basic	$	1.29			$	3.38							$	3.61			$	4.79
Diluted	$	1.27			$	3.31							$	3.57			$	4.69
Weighted average common shares outstanding, as reported:
Basic		238,833				234,948				2	%			236,986				240,858				-2	%
Diluted		241,735				240,222				1	%			239,837				246,379				-3	%

(a) See separate natural gas, NGLs and oil sales information table.(b) Included in Brokered natural gas, marketing and other revenues in the 10-K.(c) Costs associated with stock compensation and restricted stock amortization, which have been reflected in the categories associated with the direct personnel costs, which are combined with the cash costs in the 10-K.(d) Reflects the change in market value of the vested Company stock held in the deferred compensation plan.(e) Included in interest expense in the 10-K.

RANGE RESOURCES CORPORATION
BALANCE SHEETS
(In thousands)		December 31,				December 31,
		2023				2022
		(Audited)				(Audited)
Assets
Current assets	$	528,794			$	538,662
Derivative assets		442,971				41,915
Natural gas and oil properties, successful efforts method		6,117,681				5,890,404
Other property and equipment		1,696				2,434
Operating lease right-of-use assets		23,821				84,070
Other		88,922				68,077
	$	7,203,885			$	6,625,562
Liabilities and Stockholders’ Equity
Current liabilities	$	580,469			$	864,678
Asset retirement obligations		2,395				4,570
Derivative liabilities		222				151,417
Bank debt		—				9,509
Senior notes		1,774,229				1,832,451
Total debt		1,774,229				1,841,960
Deferred tax liabilities		561,288				333,571
Derivative liabilities		107				15,495
Deferred compensation liabilities		72,976				99,907
Operating lease liabilities		16,064				20,903
Asset retirement obligations and other liabilities		119,896				112,981
Divestiture contract obligation		310,688				304,074
Common stock and retained deficit		4,213,585				3,305,198
Accumulated other comprehensive gain		647				467
Common stock held in treasury stock		(448,681	)			(429,659	)
Total stockholders’ equity		3,765,551				2,876,006
	$	7,203,885			$	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 December 31,												Twelve Months Ended December 31,
		2023				2022				%				2023				2022				%
Total revenues and other income, as reported	$	941,357			$	1,630,379				-42	%		$	3,374,418			$	4,146,803				-19	%
Adjustment for certain special items:
Total change in fair value related to derivatives prior to settlement gain		(226,041	)			(632,813	)							(567,640	)			(1,648	)
ARO settlement gain		(2	)			—								(1	)			(8	)
Total revenues, as adjusted, non-GAAP	$	715,314			$	997,566				-28	%		$	2,806,777			$	4,145,147				-32	%

RANGE RESOURCES CORPORATION
CASH FLOWS FROM OPERATING ACTIVITIES
(Unaudited in thousands)
	Three Months Ended December 31,										Twelve Months Ended December 31,
		2023				2022						2023				2022
Net income	$	310,034			$	814,236				$		871,142			$	1,183,370
Adjustments to reconcile net cash provided from operating activities:
Deferred income tax expense		78,365				189,631						227,654				215,772
Depletion, depreciation and amortization		90,968				90,847						350,165				353,420
Abandonment and impairment of unproved properties		2,051				16,289						46,359				28,608
Derivative fair value (income) loss		(291,059	)			(448,181	)					(821,154	)			1,188,506
Cash settlements on derivative financial instruments		65,018				(184,632	)					253,514				(1,190,154	)
Divestiture contract obligation, including accretion		28,215				11,975						99,595				69,766
Allowance for bad debts		—				(250	)					—				(250	)
Amortization of deferred issuance costs and other		1,144				1,438						4,735				7,959
Deferred and stock-based compensation		7,683				12,562						67,849				107,959
(Gain) loss on sale of assets		(101	)			139						(454	)			(409	)
Loss (gain) on early extinguishment of debt		1				261						(438	)			69,493
Changes in working capital:
Accounts receivable		(65,334	)			129,358						223,081				(3,286	)
Other current assets		8,235				1,040						(1,285	)			(18,438	)
Accounts payable		7,234				(35,215	)					(77,057	)			17,077
Accrued liabilities and other		(16,359	)			13,157						(265,814	)			(164,649	)
Net changes in working capital		(66,224	)			108,340						(121,075	)			(169,296	)
Net cash provided from operating activities	$	226,095			$	612,655				$		977,892			$	1,864,744
RECONCILIATION OF NET CASH PROVIDED FROM OPERATING ACTIVITIES, AS REPORTED, TO CASH FLOW FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL, a non-GAAP measure
	Three Months Ended December 31,										Twelve Months Ended December 31,
		2023				2022						2023				2022
Net cash provided from operating activities, as reported	$	226,095			$	612,655				$		977,892			$	1,864,744
Net changes in working capital		66,224				(108,340	)					121,075				169,296
Exploration expense		7,193				6,654						25,280				25,194
Lawsuit settlements		114				722						1,052				1,498
Transportation, gathering, processing and compression settlements		—				—						—				7,500
Non-cash compensation adjustment and other		272				1,256						655				2,839
Cash flow from operations before changes in working capital – non-GAAP measure	$	299,898			$	512,947				$		1,125,954			$	2,071,071
ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING
(Unaudited, in thousands)
	Three Months Ended December 31,										Twelve Months Ended December 31,
		2023				2022						2023				2022
Basic:
Weighted average shares outstanding		241,258				240,625						241,130				246,918
Stock held by deferred compensation plan		(2,425	)			(5,677	)					(4,144	)			(6,060	)
Adjusted basic		238,833				234,948						236,986				240,858
Dilutive:
Weighted average shares outstanding		241,258				240,625						241,130				246,918
Dilutive stock options under treasury method		477				(403	)					(1,293	)			(539	)
Adjusted dilutive		241,735				240,222						239,837				246,379

RANGE RESOURCES CORPORATION
RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES AND DERIVATIVE FAIR VALUE INCOME (LOSS) TO CALCULATED CASH REALIZED NATURAL GAS, NGLs AND OIL PRICES WITH AND WITHOUT THIRD PARTY TRANSPORTATION, GATHERING AND COMPRESSION FEES, a non-GAAP measure
(Unaudited, in thousands, except per unit data)
	Three Months Ended December 31,													Twelve Months Ended December 31,
		2023				2022				%					2023				2022				%
Natural gas, NGL and oil sales components:
Natural gas sales	$	320,393			$	770,571							$		1,234,308			$	3,364,111
NGL sales		238,423				269,517									933,791				1,308,574
Oil sales		44,463				46,609									166,562				238,407
Total oil and gas sales, as reported	$	603,279			$	1,086,697				-44	%		$		2,334,661			$	4,911,092				-52	%
Derivative fair value income (loss), as reported:	$	291,059			$	448,181							$		821,154			$	(1,188,506	)
Cash settlements on derivative financial instruments – (gain) loss:
Natural gas		(59,846	)			203,422									(256,693	)			1,119,940
NGLs		—				(6,505	)								—				12,168
Crude Oil		2,828				12,215									11,179				82,546
Contingent consideration - divestiture		(8,000	)			(24,500	)								(8,000	)			(24,500	)
Total change in fair value related to commodity derivatives prior to settlement, a non-GAAP measure	$	226,041			$	632,813							$		567,640			$	1,648
Transportation, gathering, processing and compression components:
Natural gas	$	152,058			$	163,768							$		588,970			$	677,316
NGLs		130,833				130,460									524,114				565,614
Oil		170				—									857				11
Total transportation, gathering, processing and compression, as reported	$	283,061			$	294,228							$		1,113,941			$	1,242,941
Natural gas, NGL and oil sales, including cash-settled derivatives: (c)
Natural gas sales	$	380,239			$	567,149							$		1,491,001			$	2,244,171
NGL sales		238,423				276,022									933,791				1,296,406
Oil sales		41,635				34,394									155,383				155,861
Total	$	660,297			$	877,565				-25	%		$		2,580,175			$	3,696,438				-30	%
Production of oil and gas during the periods: (a)
Natural gas (mcf)		141,716,744				139,608,416				2	%				538,084,671				539,442,624				0	%
NGL (bbl)		9,571,519				9,918,111				-3	%				37,939,700				36,392,033				4	%
Oil (bbl)		656,533				616,051				7	%				2,475,306				2,715,681				-9	%
Gas equivalent (mcfe) (b)		203,085,056				202,813,388				0	%				780,574,707				774,088,908				1	%
Production of oil and gas – average per day: (a)
Natural gas (mcf)		1,540,399				1,517,483				2	%				1,474,205				1,477,925				0	%
NGL (bbl)		104,038				107,806				-3	%				103,944				99,704				4	%
Oil (bbl)		7,136				6,696				7	%				6,782				7,440				-9	%
Gas equivalent (mcfe) (b)		2,207,446				2,204,493				0	%				2,138,561				2,120,792				1	%
Average prices, excluding derivative settlements and before third party transportation costs:
Natural gas (mcf)	$	2.26			$	5.52				-59	%		$		2.29			$	6.24				-63	%
NGL (bbl)	$	24.91			$	27.17				-8	%		$		24.61			$	35.96				-32	%
Oil (bbl)	$	67.72			$	75.66				-10	%		$		67.29			$	87.79				-23	%
Gas equivalent (mcfe) (b)	$	2.97			$	5.36				-45	%		$		2.99			$	6.34				-53	%
Average prices, including derivative settlements before third party transportation costs: (c)
Natural gas (mcf)	$	2.68			$	4.06				-34	%		$		2.77			$	4.16				-33	%
NGL (bbl)	$	24.91			$	27.83				-10	%		$		24.61			$	35.62				-31	%
Oil (bbl)	$	63.42			$	55.83				14	%		$		62.77			$	57.39				9	%
Gas equivalent (mcfe) (b)	$	3.25			$	4.33				-25	%		$		3.31			$	4.78				-31	%
Average prices, including derivative settlements and after third party transportation costs: (d)
Natural gas (mcf)	$	1.61			$	2.89				-44	%		$		1.68			$	2.90				-42	%
NGL (bbl)	$	11.24			$	14.68				-23	%		$		10.80			$	20.08				-46	%
Oil (bbl)	$	63.16			$	55.82				13	%		$		62.43			$	57.39				9	%
Gas equivalent (mcfe) (b)	$	1.86			$	2.88				-35	%		$		1.88			$	3.17				-41	%
Transportation, gathering and compression expense per mcfe	$	1.39			$	1.45				-4	%		$		1.43			$	1.61				-11	%

(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, processing and compression costs.

RANGE RESOURCES CORPORATION
RECONCILIATION OF INCOME BEFORE INCOME TAXES AS REPORTED TO INCOME BEFORE INCOME TAXES EXCLUDING CERTAIN ITEMS, a non-GAAP measure
(Unaudited, in thousands, except per share data)
	Three Months Ended December 31,												Twelve Months Ended December 31,
		2023				2022				%				2023				2022				%
Income from operations before income taxes, as reported	$	386,946			$	997,823				-61	%		$	1,100,343			$	1,413,830				-22	%
Adjustment for certain special items:
(Gain) loss on sale of assets		(101	)			139								(454	)			(409	)
Gain on ARO settlements		(2	)			—								(1	)			(8	)
Change in fair value related to derivatives prior to settlement		(226,041	)			(632,813	)							(567,640	)			(1,648	)
Abandonment and impairment of unproved properties		2,051				16,289								46,359				28,608
Loss (gain) on early extinguishment of debt		1				261								(438	)			69,493
Transportation, gathering, processing and compression settlements		—				—								—				7,500
Lawsuit settlements		114				722								1,052				1,498
Exit costs		28,279				12,088								99,940				70,337
Brokered natural gas and marketing – stock-based compensation		491				571								2,095				2,439
Direct operating – stock-based compensation		443				376								1,723				1,459
Exploration expenses – stock-based compensation		315				415								1,250				1,578
General & administrative – stock-based compensation		9,389				9,778								35,850				42,023
Deferred compensation plan – non-cash adjustment		(2,953	)			1,963								26,593				61,880
Income before income taxes, as adjusted		198,932				407,612				-51	%			746,672				1,698,580				-56	%
Income tax (benefit) expense, as adjusted
Current		(1,453	)			(6,044	)							1,547				14,688
Deferred (a)		47,208				101,903								170,189				424,645
Net income excluding certain items, a non-GAAP measure	$	153,177			$	311,753				-51	%		$	574,936			$	1,259,247				-54	%
Non-GAAP income per common share
Basic	$	0.64			$	1.33				-52	%		$	2.43			$	5.23				-54	%
Diluted	$	0.63			$	1.30				-52	%		$	2.40			$	5.11				-53	%
Non-GAAP diluted shares outstanding, if dilutive		241,735				240,222								239,837				246,379

(a) Taxes are estimated to be approximately 23% for 2023 and deferred taxes were estimated to be 25% for 2022.

RANGE RESOURCES CORPORATION
RECONCILIATION OF NET INCOME, EXCLUDING CERTAIN ITEMS AND ADJUSTED EARNINGS PER SHARE, non-GAAP measures
(In thousands, except per share data)
	Three Months Ended December 31,									Twelve Months Ended December 31,
		2023				2022					2023				2022
Net income, as reported	$	310,034			$	814,236				$	871,142			$	1,183,370
Adjustment for certain special items:
(Gain) loss on sale of assets		(101	)			139					(454	)			(409	)
Gain on ARO settlements		(2	)			—					(1	)			(8	)
Loss (gain) on early extinguishment of debt		1				261					(438	)			69,493
Change in fair value related to derivatives prior to settlement		(226,041	)			(632,813	)				(567,640	)			(1,648	)
Transportation, gathering, processing and compression settlements		—				—					—				7,500
Abandonment and impairment of unproved properties		2,051				16,289					46,359				28,608
Lawsuit settlements		114				722					1,052				1,498
Exit costs		28,279				12,088					99,940				70,337
Stock-based compensation		10,638				11,140					40,918				47,499
Deferred compensation plan		(2,953	)			1,963					26,593				61,880
Tax impact		31,157				87,728					57,465				(208,873	)
Net income excluding certain items, a non-GAAP measure	$	153,177			$	311,753				$	574,936			$	1,259,247
Net income per diluted share, as reported	$	1.27			$	3.31				$	3.57			$	4.69
Adjustment for certain special items per diluted share:
(Gain) loss on sale of assets		(0.00	)			0.00					(0.00	)			(0.00	)
Gain on ARO settlements		(0.00	)			—					(0.00	)			(0.00	)
Loss (gain) on early extinguishment of debt		0.00				0.00					(0.00	)			0.28
Change in fair value related to derivatives prior to settlement		(0.94	)			(2.63	)				(2.37	)			(0.01	)
Transportation, gathering, processing and compression settlements		—				—					—				0.03
Abandonment and impairment of unproved properties		0.01				0.07					0.19				0.12
Lawsuit settlements		0.00				0.00					0.00				0.01
Exit costs		0.12				0.05					0.42				0.29
Stock-based compensation		0.04				0.05					0.17				0.19
Deferred compensation plan		(0.01	)			0.01					0.11				0.25
Adjustment for rounding differences		—				(0.01	)				0.01				—
Tax impact		0.13				0.37					0.24				(0.85	)
Dilutive share impact (rabbi trust and other)		0.01				0.08					0.06				0.11
Net income per diluted share, excluding certain items, a non-GAAP measure	$	0.63			$	1.30				$	2.40			$	5.11
Adjusted earnings per share, a non-GAAP measure:
Basic	$	0.64			$	1.33				$	2.43			$	5.23
Diluted	$	0.63			$	1.30				$	2.40			$	5.11

RANGE RESOURCES CORPORATION
RECONCILIATION OF CASH MARGIN PER MCFE, a non-GAAP measure
(Unaudited, in thousands, except per unit data)
	Three Months EndedDecember 31,									Twelve Months EndedDecember 31,
		2023				2022					2023				2022
Revenues
Natural gas, NGL and oil sales, as reported	$	603,279			$	1,086,697				$	2,334,661			$	4,911,092
Derivative fair value income (loss), as reported		291,059				448,181					821,154				(1,188,506	)
Less non-cash fair value gain		(226,041	)			(632,813	)				(567,640	)			(1,648	)
Brokered natural gas and marketing and other, as reported		47,019				95,501					218,603				424,217
Less ARO settlement		(2	)			—					(1	)			(8	)
Cash revenues		715,314				997,566					2,806,777				4,145,147
Expenses
Direct operating, as reported		22,643				22,658					96,085				84,286
Less direct operating stock-based compensation		(443	)			(376	)				(1,723	)			(1,459	)
Transportation, gathering and compression, as reported		283,061				294,228					1,113,941				1,242,941
Less transportation, gathering and compression settlements		—				—					—				(7,500	)
Taxes other than income, as reported		4,083				11,178					23,726				35,367
Brokered natural gas and marketing, as reported		44,810				96,531					202,884				427,048
Less brokered natural gas and marketing stock-based compensation		(491	)			(571	)				(2,095	)			(2,439	)
General and administrative, as reported		43,975				42,072					164,740				168,085
Less G&A stock-based compensation		(9,389	)			(9,778	)				(35,850	)			(42,023	)
Less lawsuit settlements		(114	)			(722	)				(1,052	)			(1,498	)
Interest expense, as reported		30,086				37,233					124,004				165,145
Less amortization of deferred financing costs		(1,352	)			(1,508	)				(5,384	)			(8,283	)
Cash expenses		416,869				490,945					1,679,276				2,059,670
Cash margin, a non-GAAP measure	$	298,445			$	506,621				$	1,127,501			$	2,085,477
Mmcfe produced during period		203,085				202,813					780,575				774,089
Cash margin per mcfe	$	1.47			$	2.50				$	1.44			$	2.69
RECONCILIATION OF INCOME BEFORE INCOME TAXES TO CASH MARGIN
(Unaudited, in thousands, except per unit data)
	Three Months EndedDecember 31,									Twelve Months EndedDecember 31,
		2023				2022					2023				2022
Income before income taxes, as reported	$	386,946			$	997,823				$	1,100,343			$	1,413,830
Adjustments to reconcile income before income taxes to cash margin:
ARO settlements		(2	)			—					(1	)			(8	)
Derivative fair value (income) loss		(291,059	)			(448,181	)				(821,154	)			1,188,506
Net cash receipts (payments) on derivative settlements		65,018				(184,632	)				253,514				(1,190,154	)
Transportation, gathering and compression settlements		—				—					—				7,500
Exploration expense		7,193				6,654					25,280				25,194
Lawsuit settlements		114				722					1,052				1,498
Exit costs		28,279				12,088					99,940				70,337
Deferred compensation plan		(2,953	)			1,963					26,593				61,880
Stock-based compensation (direct operating, brokered natural gas and marketing, general and administrative and termination costs)		10,638				11,140					40,918				47,499
Interest – amortization of deferred financing costs		1,352				1,508					5,384				8,283
Depletion, depreciation and amortization		90,968				90,847					350,165				353,420
(Gain) loss on sale of assets		(101	)			139					(454	)			(409	)
Loss (gain) on early extinguishment of debt		1				261					(438	)			69,493
Abandonment and impairment of unproved properties		2,051				16,289					46,359				28,608
Cash margin, a non-GAAP measure	$	298,445			$	506,621				$	1,127,501			$	2,085,477