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Range Resources Corporation (RAX.F)

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5.99+0.11 (+1.87%)
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Previous Close5.88
Open5.99
Bid5.99 x 40000
Ask6.23 x 40000
Day's Range5.99 - 5.99
52 Week Range1.59 - 6.95
Volume64
Avg. Volume152
Market Cap1.594B
Beta (5Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-7.47
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateDec. 12, 2019
1y Target EstN/A
  • Range Resources (RRC) Reports Q2 Loss, Lags Revenue Estimates
    Zacks

    Range Resources (RRC) Reports Q2 Loss, Lags Revenue Estimates

    Range Resources (RRC) delivered earnings and revenue surprises of 41.18% and -17.52%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?

  • GlobeNewswire

    Range Announces Second Quarter 2020 Financial Results & North Louisiana Asset Sale

    FORT WORTH, Texas, Aug. 03, 2020 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its second quarter 2020 financial results.  Second Quarter Highlights – * Well costs averaged less than $600 per lateral foot, including facility costs, the lowest in Appalachia * Transportation, gathering, processing and compression expense improved $0.15 per mcfe, or 10% versus prior year * Direct operating expense improved $0.05 per mcfe, or 31% versus prior year * G&A expense (before certain items) improved $0.05 per mcfe, or 28% versus prior year * Production taxes improved $0.02 per mcfe, or 40% versus prior year * Interest expense improved $0.02 per mcfe, or 8% versus prior year * DD&A expense improved $0.19 per mcfe, or 28% versus prior year * Total cash unit costs improved $0.29 per mcfe, or 14% versus prior year * Production averaged 2,349 Mmcfe per day, approximately 71% natural gas * Repurchased approximately $47 million of outstanding notes principal at an average 20% discount to par * In July, signed purchase and sale agreement to divest North Louisiana assets for gross proceeds of $245 million, plus an additional $90 million contingent on future commodity pricesCommenting on the quarter, Jeff Ventura, the Company’s CEO said, “Range continued to make steady progress in the second quarter - significantly improving our cost structure, operating safely, and methodically developing our core asset with peer-leading well costs and capital efficiency.  After the sale of our North Louisiana assets, Range’s cost structure and capital productivity will take another meaningful step forward, driven by material improvements in our cash unit costs and a base decline solidly under 20%.  Our shallow base decline and peer leading well costs provide Range a sustaining capital requirement per mcfe that we believe is the lowest amongst peers, providing us a solid foundation for generating corporate returns.  In 2020, we expect Range to reduce total debt outstanding for the third consecutive year in a row, reflecting our commitment to disciplined capital allocation and a strong balance sheet.  Range remains well-positioned to successfully navigate the current commodity environment and benefit from an improved outlook for natural gas and natural gas liquids, particularly given Range’s industry-leading inventory of core natural gas and liquids wells.”Financial DiscussionExcept 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.GAAP revenues for second quarter 2020 totaled $377 million, GAAP net cash provided from operating activities (including changes in working capital) was $79 million, and GAAP earnings was a loss of $147 million ($0.61 per diluted share). Non-GAAP revenues for second quarter 2020 totaled $502 million, and cash flow from operations before changes in working capital, a non-GAAP measure, was $81 million.  Adjusted earnings comparable to analysts’ estimates, a non-GAAP measure, was a loss of $25 million ($0.10 per diluted share) in second quarter 2020.North Louisiana Asset SaleSubsequent to June 30, Range signed a purchase and sale agreement to divest the Company’s North Louisiana assets for gross proceeds of $245 million, with the potential for $90 million in additional proceeds contingent on future commodity prices.  At the time of the sale, the assets were producing approximately 160 Mmcfe per day, and Range did not have any drilling and completion activity planned for the assets this year.  Per the agreement, Range will retain certain commitments through their remaining term.  Range intends to use $28.5 million of the sale proceeds to reduce a portion of the retained commitments.  The transaction is expected to close in August with an effective date of February 1, 2020.Capital ExpendituresSecond quarter 2020 drilling and completion expenditures were $99 million.  In addition, during the quarter, a combined $5 million was spent on acreage and gathering systems.  Total year-to-date expenditures were $235 million at the end of the second quarter.  Well costs, including all facilities, averaged less than $600 per foot in the second quarter, the lowest normalized well costs in Appalachia.  Range remains on track to spend at or below its total capital budget of $430 million for 2020.Financial Position and Buyback Activity                                                 At the end of the second quarter, Range had $639 million drawn on its revolver and over $1.4 billion of additional borrowing capacity under the commitment amount. Range expects its $3.0 billion borrowing base to be unchanged following the sale of its North Louisiana assets.  Following the planned closing on the Company’s North Louisiana asset sale in August, Range’s liquidity is expected to exceed $1.6 billion.Range repurchased and retired approximately $47 million in principal amount of its senior and subordinated notes during the second quarter at a weighted average discount to par of 20%.  Range also repurchased 200,000 shares of the Company’s common stock during the second quarter at an average price of $2.22 per share.  In total, Range has repurchased $360 million in debt principal at a discount and ten million shares since second half 2019. Unit Costs and PricingThe following table details Range’s unit costs per mcfe(a):Expenses 2Q 2020  ($/Mcfe)  2Q 2019  ($/Mcfe)   Increase  (Decrease)           Direct operating(a)$0.11 $0.16  (31%) Transportation, gathering, processing and compression 1.30  1.45  (10%) Production and ad valorem taxes 0.03  0.05  (40%) General and administrative (G&A)(a) 0.13  0.18  (28%) Interest expense(a) 0.22  0.24  (8%) Total cash unit costs(b) 1.79  2.08  (14%) Depletion, depreciation and amortization (DD&A) 0.49  0.68  (28%) Total unit costs plus DD&A(b)$2.28 $2.76  (17%) (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 second quarter 2020:  2Q20 Production & Realized Pricing   Natural Gas  (Mcf)  NGLs (Bbl) Oil  (Bbl) Natural Gas  Equivalent (Mcfe) Net Production per day 1,660,743 106,772 7,913 2,348,856           Average NYMEX price $1.72   $27.09   Differential, including basis hedging   (0.31)    (12.28)   Realized prices before NYMEX hedges   1.41 $12.80  14.81   Settled NYMEX hedges   0.61   0.71  30.21   Average realized prices after hedges (a) $ 2.02 $ 13.51 $ 45.03 $ 2.19 (a)    May not add due to rounding.Second quarter 2020 natural gas, NGLs and oil price realizations (including the impact of derivative settlements which correspond to analysts’ estimates) averaged $2.19 per mcfe.  Additional detail on commodity price realizations can be found in the Supplemental Tables provided on the Company’s website.  * The average natural gas price, including the impact of basis hedging, was $1.41 per mcf, or a ($0.31) differential to NYMEX.  In the second quarter, Range sold additional natural gas volume in Appalachia following a pipeline outage in May that affected a portion of Range’s transportation to the Gulf Coast.  This minor impact to differentials was offset by lower gas transportation expense in the quarter.    * Pre-hedge NGL realizations were $12.80 per barrel, or a $0.37 per barrel premium to the Mont Belvieu weighted barrel and approximately 47% of WTI (West Texas Intermediate).  Lower NGL prices in the second quarter were partially offset by lower processing costs.   * Crude oil and condensate price realizations, before realized hedges, averaged $14.81 per barrel, or $12.28 below WTI.  Condensate pricing in the second quarter was impacted by weakness in regional demand.  However, regional condensate demand has increased following the second quarter, and Range expects differentials and fundamentals to improve in second half 2020. As a result, Range deferred some liquids-rich activity into second half 2020 and its Appalachia condensate production is expected to increase versus the second quarter.  Operational DiscussionThe table below summarizes estimated activity for 2020 regarding the number of wells to sales for each area.  Wells TIL 2Q 2020 Calendar 2020 Planned TIL Remaining 2020 SW PA Super-Rich0 3 3 SW PA Wet6 31 13 SW PA Dry15 33 10 Total Wells21 67 26 Production by AreaTotal production for second quarter 2020 averaged approximately 2,349 net Mmcfe per day.  The southwest Appalachia area averaged 2,083 net Mmcfe per day during the quarter, a 6% increase over second quarter 2019.  The northeast Marcellus properties averaged 86 net Mmcf per day and North Louisiana production during second quarter 2020 averaged approximately 179 net Mmcfe per day. Second quarter 2020 North Louisiana production includes the benefit of one-time land and legal adjustments as part of the divestiture process.Marketing and TransportationDuring the quarter, Range sold additional natural gas volume in Appalachia following a third-party pipeline outage in early May affecting a portion of Range’s transportation that takes natural gas to the Gulf Coast.  This had a minor impact to natural gas differentials during the quarter and was mostly offset by lower gas transportation expense.  Range continues to benefit from its diverse set of natural gas transportation outlets as unexpected events in any one market do not materially impact the overall portfolio.Domestic U.S. natural gas production declined significantly during the quarter, led by associated gas shut-ins and legacy basin declines in response to the price of both oil and natural gas.  Range expects recently announced activity reductions for the industry to weigh on second half 2020 production levels, more than offsetting the return of shut-in production, while LNG export demand recovers from current levels.  Evidenced by one of the lightest 2021 hedge positions among natural gas producers, Range anticipates that a sustained move higher in the forward curve for natural gas is needed to incentivize activity from dry gas producing basins to avoid extremely low storage levels next year.As previously disclosed, entering second quarter, demand for gasoline and jet fuel were directly impacted by COVID-19 related reductions in vehicle and air travel.  The abrupt change in demand put temporary pressure on condensate pricing during the quarter.  Production and sales were unaffected as Range’s marketing team found domestic or international outlets for all products.  The Northeast condensate market began to rebound in the months of June and July, with substantial improvements in pricing, pointing to a better second half of the year. Range experienced healthy NGL demand during the second quarter as a result of its strong and diverse customer base as well as a flexible transportation portfolio that allows access to multiple domestic and international markets.  The Company increased its access to waterborne exports via Mariner East and Marcus Hook during the second quarter, where LPG export premiums at Marcus Hook have remained stable at a few cents per gallon above Mont Belvieu index.  Range expects NGL and condensate fundamentals to continue strengthening during the second half of 2020, as a lack of U.S. drilling and completions activity is expected to result in declining supply while demand continues to recover.  Range’s liquids-weighted activity during the balance of 2020 is set to take advantage of this improving macro environment for both condensate and NGL pricing.Guidance – 2020  Production per day GuidanceProduction for full-year 2020 is expected to average approximately 2.25 Bcfe per day, reflecting adjustments associated with the sale of North Louisiana assets.  Full-year 2020 Appalachia production is expected to average approximately 2.15 Bcfe per day.Full Year 2020 Expense Guidance   Prior GuidanceUpdated Guidance Direct operating expense:$0.14 - $0.16 per mcfe$0.11 - $0.13 per mcfe Transportation, gathering, processing and compression expense:$1.37 - $1.40 per mcfe$1.32 - $1.36 per mcfe Production tax expense:$0.04 - $0.05 per mcfe$0.03 - $0.04 per mcfe Exploration expense:$30 - $38 million$28 - $34 million G&A expense:$0.14 - $0.16 per mcfe$0.14 - $0.15 per mcfe Interest expense:$0.22 - $0.24 per mcfe$0.22 - $0.24 per mcfe DD&A expense:$0.48 - $0.52 per mcfe$0.48 - $0.52 per mcfe Net brokered gas marketing expense:$10 - $16 million$10 - $16 million Full Year 2020 Price GuidanceBased on current market indications and the anticipated sale of Range’s North Louisiana assets in August, Range expects to average the following price differentials for its production in 2020.  Prior GuidanceUpdated Guidance Natural Gas:(1)NYMEX minus $0.20 to $0.26NYMEX minus $0.22 to $0.28 Natural Gas Liquids:(2)Mont Belvieu plus $0.50 to $1.50 per bblMont Belvieu plus $0.50 to $1.50 per bbl Oil/Condensate:WTI minus $8.00 to $9.00 per bblWTI minus $8.00 to $10.00 per bbl (1) Including basis hedging. (2) Weighting based on 53% ethane, 27% propane, 7% normal butane, 4% iso-butane and 9% natural gasoline.Hedging StatusRange hedges portions of its expected future production to increase the predictability of cash flow and to help maintain a more flexible financial position.  Range has over 70% of its remaining 2020 natural gas production hedged at a weighted average floor price of $2.57 per Mmbtu.  Similarly, Range has hedged over 80% of its remaining 2020 projected crude oil production at an average floor price of $58.12.  Please see Range’s detailed hedging schedule posted at the end of the financial tables below and on its website at www.rangeresources.com. Range has also hedged Marcellus and other natural gas basis to limit volatility between NYMEX and regional prices.  The fair value of basis hedges was a loss of $4.5 million as of June 30, 2020.  The Company also has propane basis swap contracts and freight swaps which lock in the differential between Mont Belvieu and international propane indices.  The combined fair value of these contracts was a loss of $4.0 million at June 30, 2020.  Conference Call Information A conference call to review the financial results is scheduled on Tuesday, August 4 at 9:00 a.m. ET.  A webcast of the call may be accessed at www.rangeresources.com. The webcast will be archived for replay on the Company's website until September 4, 2020.To participate in the call, dial 877-928-8777 and provide conference code 1543996 about 15 minutes prior to the scheduled start time.Non-GAAP Financial MeasuresAdjusted 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).  The Company provides additional comparative information on prior periods along with non-GAAP revenue disclosures on its website. 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 line in the statement of operations 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 quarterly report on Form 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.RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused in stacked-pay projects in the Appalachian Basin. The Company pursues an organic development strategy targeting high return, low-cost projects within its large inventory of low risk development drilling opportunities.  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. 2020-13 SOURCE:   Range Resources Corporation Investor Contacts:     Laith Sando, Vice President – Investor Relations  817-869-4267  lsando@rangeresources.com     John Durham, Senior Financial Analyst  817-869-1538  jdurham@rangeresources.com     Range Media Contacts:     Mark Windle, Manager of Corporate Communications  724-873-3223  mwindle@rangeresources.com   RANGE RESOURCES CORPORATIONSTATEMENTS 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 June 30, Six Months Ended June 30,   2020   2019  %  2020   2019   %                       Revenues and other income:                     Natural gas, NGLs and oil sales (a)$349,258  $563,579    $781,354  $1,235,233     Derivative fair value (loss)/income (6,303)  195,245     226,872   133,514     Brokered natural gas, marketing and other (b) 33,309   91,940     61,698   230,083     ARO settlement loss (b) (12)  —     (12)  —     Other (b) 294   665     554   736     Total revenues and other income 376,546   851,429  -56%  1,070,466   1,599,566   -33%                       Costs and expenses:                     Direct operating 23,960   33,432     55,545   66,068     Direct operating – non-cash stock-based compensation (c) 434   549     884   1,140     Transportation, gathering, processing and compression  278,875   301,219     563,640   603,874     Production and ad valorem taxes  5,557   9,889     14,576   21,199     Brokered natural gas and marketing 37,993   100,564     70,204   232,421     Brokered natural gas and marketing – non-cash stock-based compensation (c) 168   553     581   1,001     Exploration 7,655   7,721     14,402   15,444     Exploration – non-cash stock-based compensation (c)  372   388     702   876     Abandonment and impairment of unproved properties  5,524   12,770     10,937   25,429     General and administrative  28,333   38,505     61,343   74,799     General and administrative – non-cash stock-based compensation (c) 9,179   9,500     17,208   19,138     General and administrative – lawsuit settlements 776   1,190     1,591   1,896     General and administrative – rig release penalty —   1,436     —   1,436     General and administrative – bad debt expense  —   —     400   —     Exit and termination costs 10,297   2,180     11,892   2,180     Exit and termination costs – non-cash stock-based compensation (c) —   26     —   26     Deferred compensation plan (d) 12,587   (11,142)    4,050   (7,561)    Interest expense 46,489   49,922     91,946   99,671     Interest expense – amortization of deferred financing costs (e) 2,135   1,805     4,196   3,593     Gain on early extinguishment of debt (8,991)  —     (21,914)  —     Depletion, depreciation and amortization  104,626   141,505     207,612   280,223     Impairment of proved properties —   —     77,000   —     Loss (gain) on sale of assets 426   (5,867)    (121,673)  (5,678)    Total costs and expenses 566,395   696,145  -19%  1,065,122   1,437,175   -26%                       (Loss) income before income taxes (189,849)  155,284  -222%  5,344   162,391   -97%                       Income tax (benefit) expense:                     Current (3   —     (366)  —     Deferred (43,277)  40,099     7,304   45,787       (43,280)  40,099     6,938   45,787                           Net (loss) income$(146,569) $115,185  -227% $(1,594) $116,604   -101%                       Net (Loss) Income Per Common Share:                     Basic$(0.61) $0.46    $(0.01) $0.46     Diluted$(0.61) $0.46    $(0.01) $0.46                           Weighted average common shares outstanding, as reported:                     Basic 239,472   247,770  -3%  242,717   247,773   -2% Diluted 239,472   248,436  -4%  242,717   249,042   -3% (a)  See separate natural gas, NGLs and oil sales information table. (b)  Included in Brokered natural gas, marketing and other revenues in the 10-Q. (c)  Costs associated with stock compensation and restricted stock amortization, which have been reflected in the categories associated with the direct personnel costs, which are combined with the cash costs in the 10-Q. (d)  Reflects the change in market value of the vested Company stock held in the deferred compensation plan. (e)  Included in interest expense in the 10-Q. RANGE RESOURCES CORPORATIONBALANCE SHEETS        (In thousands)June 30,   December 31,  2020  2019   (Unaudited)   (Audited)  Assets        Current assets$188,587  $290,954  Derivative assets 146,236   137,554  Natural gas and oil properties, successful efforts method 5,993,626   6,041,035  Transportation and field assets 3,723   5,375  Operating lease right-of-use assets 52,367   62,053  Other 67,672   75,432   $6,452,211  $6,612,403           Liabilities and Stockholders’ Equity        Current liabilities$522,554  $551,032  Asset retirement obligations 2,393   2,393  Derivative liabilities 5,306   13,119           Bank debt 628,221   464,319  Senior notes 2,510,256   2,659,844  Senior subordinated notes 26,656   48,774  Total debt 3,165,133   3,172,937           Deferred tax liability 167,548   160,196  Derivative liabilities 10,001   949  Deferred compensation liability 58,676   64,070  Operating lease liabilities 35,104   41,068  Asset retirement obligations and other liabilities 149,680   259,151           Common stock and retained earnings 2,366,654   2,355,512  Other comprehensive loss (644)  (788) Common stock held in treasury stock (30,194)  (7,236) Total stockholders’ equity 2,335,816   2,347,488   $6,452,211  $6,612,403  RECONCILIATION OF TOTAL REVENUES AND OTHER INCOME TO TOTAL REVENUE EXCLUDING CERTAIN ITEMS, a non-GAAP measure              (Unaudited, in thousands)               Three Months Ended June 30,  Six Months Ended June 30,     2020  2019  %   2020   2019  %                        Total revenues and other income, as reported$376,546 $851,429  -56% $1,070,466  $1,599,566  -33% Adjustment for certain special items:                     Total change in fair value related to derivatives prior to settlement (gain) loss 125,803  (161,738)     (7,443)  (75,173)    ARO settlement loss 12  —      12   —     Total revenues, as adjusted, non-GAAP$502,361 $689,691  -27% $1,063,035  $1,524,393  -30% RANGE RESOURCES CORPORATIONCASH FLOWS FROM OPERATING ACTIVITIES                (Unaudited in thousands)                                  Three Months Ended June 30,  Six Months Ended June 30,   2020  2019  2020  2019                   Net (loss) income$(146,569) $115,185  $(1,594) $116,604  Adjustments to reconcile net cash provided from continuing operations:                Deferred income tax (benefit) expense (43,277)  40,099   7,304   45,787  Depletion, depreciation, amortization and impairment 104,626   141,505   284,612   280,223  Abandonment and impairment of unproved properties 5,524   12,770   10,937   25,429  Derivative fair value loss (income) 6,303   (195,245)  (226,872)  (133,514) Cash settlements on derivative financial instruments 119,500   33,507   219,429   58,341  Allowance for bad debts —   —   400   —  Amortization of deferred issuance costs and other 1,741   1,436   3,398   3,243  Deferred and stock-based compensation 22,637   (385)  23,113   13,727  Loss (gain) on sale of assets and other 426   (5,867)  (121,673)  (5,678) Gain on early extinguishment of debt (8,991)  —   (21,914)  —                   Changes in working capital:                Accounts receivable 19,045   67,422   103,390   201,428  Inventory and other 376   (272)  (4,056)  (5,035) Accounts payable (46,013)  1,299   (27,353)  (29,132) Accrued liabilities and other 43,434   (26,632)  (45,853)  (125,907) Net changes in working capital 16,842   41,817   26,128   41,354  Net cash provided from operating activities$78,762  $184,822  $203,268  $445,516                                                     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 June 30,  Six Months Ended June 30,   2020  2019  2020  2019  Net cash provided from operating activities, as reported$78,762  $184,822  $203,268  $445,516  Net changes in working capital (16,842)  (41,817)  (26,128)  (41,354) Exploration expense 7,655   7,721   14,402   15,444  Lawsuit settlements 776   1,190   1,591   1,896  Exit and termination costs 10,297   2,180   11,892   2,180  Rig release penalty —   1,436   —   1,436  Non-cash compensation adjustment 509   628   1,122   1,243  Cash flow from operations before changes in working capital – non-GAAP measure$81,157  $156,160  $206,147  $426,361                                                     ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING                (Unaudited, in thousands)                                  Three Months Ended June 30,  Six Months Ended June 30,   2020  2019  2020  2019  Basic:                Weighted average shares outstanding 245,879   251,242   247,516   250,784  Stock held by deferred compensation plan (6,407)  (3,472)  (4,799)  (3,011) Adjusted basic 239,472   247,770   242,717   247,773                   Dilutive:                Weighted average shares outstanding 245,879   251,242   247,516   250,784  Dilutive stock options under treasury method (6,407)  (2,806)  (4,799)  (1,742) Adjusted dilutive 239,472   248,436   242,717   249,042                   RANGE RESOURCES CORPORATIONRECONCILIATION 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 June 30,  Six Months Ended June 30,        2020  2019  %  2020   2019  % Natural gas, NGL and oil sales components:                      Natural gas sales$214,207  $343,623     $467,456  $778,343     NGL sales 124,383   167,027      267,622   364,840     Oil sales 10,668   52,929      46,276   92,050     Total oil and gas sales, as reported$349,258  $563,579  -38% $781,354  $1,235,233  -37%                        Derivative fair value (loss) income, as reported:$(6,303) $195,245     $226,872  $133,514     Cash settlements on derivative financial instruments – (gain) loss:                      Natural gas (90,837)  (20,396)     (171,009)  (19,524)    NGLs (6,905)  (15,918)     (16,948)  (40,782)    Crude Oil (21,758)  2,807      (31,472)  1,965     Total change in fair value related to derivatives prior to settlement, a non-GAAP measure$(125,803) $161,738     $7,443  $75,173                            Transportation, gathering, processing and compression components:                      Natural gas$167,367  $185,353     $337,208  $374,435     NGLs 110,718   115,866      225,642   229,439     Oil 790   —      790   —     Total transportation, gathering, processing and compression, as reported$278,875  $301,219     $563,640  $603,874                            Natural gas, NGL and oil sales, including cash-settled derivatives: (c)                      Natural gas sales$305,044  $364,019     $638,465  $797,867     NGL sales 131,288   182,945      284,570   405,622     Oil sales 32,426   50,122      77,748   90,085     Total$468,758  $597,086  -21%  1,000,783   1,293,574  -23%                        Production of oil and gas during the periods (a):                      Natural gas (mcf) 151,127,582   143,163,003  6%  296,888,174   283,684,666  5% NGL (bbl) 9,716,261   9,847,268  -1%  19,349,296   19,459,815  -1% Oil (bbl) 720,125   982,324  -27%  1,588,422   1,787,874  -11% Gas equivalent (mcfe) (b) 213,745,898   208,140,555  3%  422,514,482   411,170,800  3%                        Production of oil and gas – average per day (a):                      Natural gas (mcf) 1,660,743   1,573,220  6%  1,631,254   1,567,319  4% NGL (bbl) 106,772   108,212  -1%  106,315   107,513  -1% Oil (bbl) 7,913   10,795  -27%  8,728   9,878  -12% Gas equivalent (mcfe) (b) 2,348,856   2,287,259  3%  2,321,508   2,271,662  2%                        Average prices, excluding derivative settlements and before third party transportation costs:                      Natural gas (mcf)$1.42  $2.40  -41% $1.57  $2.74  -43% NGL (bbl)$12.80  $16.96  -25% $13.83  $18.75  -26% Oil (bbl)$14.81  $53.88  -73% $29.13  $51.49  -43% Gas equivalent (mcfe) (b)$1.63  $2.71  -40% $1.85  $3.00  -38%                        Average prices, including derivative settlements before third party transportation costs: (c)                      Natural gas (mcf)$2.02  $2.54  -21% $2.15  $2.81  -24% NGL (bbl)$13.51  $18.58  -27% $14.71  $20.84  -29% Oil (bbl)$45.03  $51.02  -12% $48.95  $50.39  -3% Gas equivalent (mcfe) (b)$2.19  $2.87  -24% $2.37  $3.15  -25%                        Average prices, including derivative settlements and after third party   transportation costs: (d)                      Natural gas (mcf)$0.91  $1.25  -27% $1.01  $1.49  -32% NGL (bbl)$2.12  $6.81  -69% $3.05  $9.05  -66% Oil (bbl)$43.93  $51.02  -14% $48.45  $50.39  -4% Gas equivalent (mcfe) (b)$0.89  $1.42  -38% $1.03  $1.68  -38%                        Transportation, gathering and compression expense per mcfe$1.30  $1.45  -10% $1.33  $1.47  -9% (a)  Represents volumes sold regardless of when produced. (b)  Oil and NGLs are converted at the rate of one barrel equals six mcfe based upon the approximate relative energy content of oil to natural gas, which is not necessarily indicative of the relationship of oil and natural gas prices. (c)  Excluding third party transportation, gathering and compression costs. (d)  Net of transportation, gathering and compression costs. RANGE RESOURCES CORPORATIONRECONCILIATION OF (LOSS) INCOME BEFORE INCOME TAXES AS REPORTED TO INCOME BEFORE INCOME TAXES EXCLUDING CERTAIN ITEMS, a non-GAAP measure      (Unaudited, in thousands, except per share data)       Three Months Ended June 30,  Six Months Ended June 30,    2020   2019  %   2020   2019  %                         (Loss) income from operations before income taxes, as reported$(189,849) $155,284  (222)% $5,344  $162,391  (97)% Adjustment for certain special items:                      Loss (gain) on sale of assets 426   (5,867)     (121,673)  (5,678)    (Gain) loss on ARO settlements 12   —      12   —     Change in fair value related to derivatives prior to settlement 125,803   (161,738)     (7,443)  (75,173)    Abandonment and impairment of unproved properties 5,524   12,770      10,937   25,429     Rig release penalty —   1,436      —   1,436     Gain on early extinguishment of debt (8,991)  —      (21,914)  —     Impairment of proved property —   —      77,000   —     Lawsuit settlements 776   1,190      1,591   1,896     Exit and termination costs 10,297   2,180      11,892   2,180     Exit and termination costs – non-cash stock-based compensation —   26      —   26     Brokered natural gas and marketing – non-cash stock-based compensation 168   553      581   1,001     Direct operating – non-cash stock-based compensation 434   549      884   1,140     Exploration expenses – non-cash stock-based compensation 372   388      702   876     General & administrative – non-cash stock-based compensation 9,179   9,500      17,208   19,138     Deferred compensation plan – non-cash adjustment 12,587   (11,142)     4,050   (7,561)                           (Loss) income before income taxes, as adjusted (33,262)  5,129  -749 %  (20,829)  127,101  -116 %                        Income tax expense (benefit), as adjusted                      Current (3)  —      (366)  —     Deferred (a) (8,315)  1,282      (5,207)  31,792                            Net (loss) income excluding certain items, a non-GAAP measure$(24,944) $3,847  -748 % $(15,256) $95,309  -116 %                        Non-GAAP (loss) income per common share                      Basic$(0.10) $0.02  -600 % $(0.06) $0.38  -116 % Diluted$(0.10) $0.02  -600 % $(0.06) $0.38  -116 %                        Non-GAAP diluted shares outstanding, if dilutive 239,472   248,436      242,717   249,042                            (a)  Deferred taxes are estimated to be approximately 25% for 2020 and 2019.     RANGE RESOURCES CORPORATIONRECONCILIATION OF NET INCOME (LOSS), EXCLUDING CERTAIN ITEMS AND ADJUSTMENT EARNINGS PER SHARE, non-GAAP measures                (In thousands, except per share data)                 Three Months Ended June 30,  Six Months Ended   June 30,    2020   2019   2020   2019                   Net (loss) income, as reported$(146,569) $115,185  $(1,594) $116,604  Adjustment for certain special items:                Loss (gain) on sale of assets 426   (5,867)  (121,673)  (5,678) Loss (gain) on ARO settlements 12   —   12   —  Gain on early extinguishment of debt (8,991)  —   (21,914)  —  Change in fair value related to derivatives prior to settlement 125,803   (161,738)  (7,443)  (75,173) Impairment of proved property —   —   77,000   —  Abandonment and impairment of unproved properties 5,524   12,770   10,937   25.429  Lawsuit settlements 776   1,190   1,591   1,896  Rig release penalty —   1,436   —   1,436  Exit and termination costs 10,297   2,180   11,892   2,180  Non-cash stock-based compensation 10,153   11,016   19,375   22,181  Deferred compensation plan 12,587   (11,142)  4,050   (7,561) Tax impact (34,962)  38,817   12,511   13,995                   Net (loss) income excluding certain items, a non-GAAP measure$(24,944) $3,847  $(15,256) $95,309                   Net (loss) income per diluted share, as reported$(0.61) $0.46  $(0.01) $0.46  Adjustment for certain special items per diluted share:                (Gain) loss on sale of assets 0.00   (0.02)  (0.50)  (0.02) Loss (gain) on ARO settlements 0.00   —   0.00   —  Gain on early extinguishment of debt (0.04)  —   (0.09)  —  Change in fair value related to derivatives prior to settlement 0.53   (0.65)  (0.03)  (0.30) Impairment of proved property —   —   0.32   —  Abandonment and impairment of unproved properties 0.02   0.05   0.05   0.10  Lawsuit settlements 0.00   0.00   0.01   0.01  Rig release penalty —   0.01   —   0.01  Exit and termination costs 0.04   0.01   0.05   0.01  Non-cash stock-based compensation 0.04   0.04   0.08   0.09  Deferred compensation plan 0.05   (0.04)  0.02   (0.03) Adjustment for rounding differences 0.02   —   (0.01)  (0.01) Tax impact (0.15)  0.16   0.05   0.06                   Net (loss) income per diluted share, excluding certain items, a    non-GAAP measure$(0.10) $0.02  $(0.06) $0.38                   Adjusted (loss) earnings per share, a non-GAAP measure:                Basic$(0.10) $0.02  $(0.06) $0.38  Diluted$(0.10) $0.02  $(0.06) $0.38                   RANGE RESOURCES CORPORATIONRECONCILIATION OF CASH MARGIN PER MCFE, a non-GAAP measure                (Unaudited, in thousands, except per unit data)                 Three Months Ended June 30,  Six Months Ended   June 30,    2020   2019   2020   2019                   Revenues                Natural gas, NGL and oil sales, as reported$349,258  $563,579  $781,354  $1,235,233  Derivative fair value income (loss), as reported (6,303)  195,245   226,872   133,514    Less non-cash fair value (gain) loss 125,803   (161,738)  (7,443)  (75,173) Brokered natural gas and marketing and other, as reported 33,591   92,605     62,240   230,819    Less ARO settlement and other (gains) losses (282)  (665)  (542)  (736)   Cash revenue applicable to production 502,067   689,026   1,062,481   1,523,657                   Expenses                Direct operating, as reported 24,394   33,981   56,429   67,208    Less direct operating stock-based compensation (434)  (549)  (884)  (1,140) Transportation, gathering and compression, as reported 278,875   301,219   563,640   603,874  Production and ad valorem taxes, as reported 5,557   9,889   14,576   21,199  Brokered natural gas and marketing, as reported 38,161   101,117   70,785   233,422    Less brokered natural gas and marketing stock-based compensation (168)  (553)  (581)  (1,001) General and administrative, as reported 38,288   49,195   80,542   95,833    Less G&A stock-based compensation (9,179)  (9,500)  (17,208)  (19,138)   Less lawsuit settlements (776)  (1,190)  (1,591)  (1,896) Interest expense, as reported 48,624   51,727   96,142   103,264    Less amortization of deferred financing costs (2,135)  (1,805)  (4,196)  (3,593)   Cash expenses 421,207   533,531   857,654   1,098,032                   Cash margin, a non-GAAP measure$80,860  $155,495  $204,827  $425,625                   Mmcfe produced during period 213,746   208,141   422,514   411,171                   Cash margin per mcfe$0.38  $0.75  $0.48  $1.04                                    RECONCILIATION OF (LOSS) INCOME BEFORE INCOME TAXES TO CASH MARGIN                (Unaudited, in thousands, except per unit data)                 Three Months Ended June 30,  Six Months Ended   June 30,    2020   2019   2020   2019                   (Loss) income before income taxes, as reported$(189,849) $155,284  $  5,344  $162,391  Adjustments to reconcile (loss) income before income taxes to cash    margin:                ARO settlements and other gains (282)  (665)  (542)  (736) Derivative fair value loss (income) 6,303   (195,245)  (226,872)  (133,514) Net cash receipts on derivative settlements 119,500   33,507   219,429   58,341  Exploration expense 7,655   7,721   14,402   15,444  Lawsuit settlements 776   1,190   1,591   1,896  Rig release penalty —   1,436   —   1,436  Exit and termination costs 10,297   2,180   11,892   2,180  Deferred compensation plan 12,587   (11,142)  4,050   (7,561) Stock-based compensation (direct operating, brokered natural gas and marketing, general and administrative and termination costs) 10,153   11,016   19,375   22,181  Interest – amortization of deferred financing costs 2,135   1,805   4,196   3,593  Depletion, depreciation and amortization 104,626   141,505   207,612   280,223  Loss (gain) on sale of assets 426   (5,867)  (121,673)  (5,678) Gain on early extinguishment of debt (8,991)  —   (21,914)  —  Impairment of proved property and other assets —   —   77,000   —  Abandonment and impairment of unproved properties 5,524   12,770   10,937   25,429  Cash margin, a non-GAAP measure$80,860  $155,495  $204,827  $425,625                   RANGE RESOURCES CORPORATIONHEDGING POSITION AS OF June 30, 2020 – (Unaudited)    Daily Volume Hedge Price  Gas  1           Jul-Oct 2020 3-way Collar60,000 Mmbtu $1.75 / $2.00 x $2.53  3Q 2020 Swaps1,206,522 Mmbtu $2.58  4Q 2020 Swaps1,087,147 Mmbtu $2.60        Apr-Oct 2021 Collars60,000 Mmbtu $2.60 x $3.00  2021 3-way Collars240,000 Mmbtu $1.99 / $2.33 x $2.60  2021 Swaps70,000 Mmbtu $2.61        Oil 2           3Q 2020 Swaps8,000 bbls $58.19  4Q 2020 Swaps6,000 bbls $58.02        2021 Swaps1,000 bbls $55.00              C3 Propane            3Q 2020 Swaps3,022 bbls $0.470/gallon        nC4 Butane 3           3Q 2020 Swaps2,500 bbls $0.570/gallon        C5 Natural Gasoline            3Q 2020 Swaps1,674 bbls $0.732/gallon (1) Range sold natural gas call swaptions of 180,000 Mmbtu/d for calendar 2021 at an average strike price of $2.825 per Mmbtu.  Range also sold 60,000 Mmbtu/d of 3Q20 $2.50 strike calls.(2) Range sold 500 bbls/d of 3Q20 $59.00 strike WTI calls, and call swaption of 1,000 bbls/d for calendar 2021 at an average strike price of $55.00.(3) Range sold nC4 butane calls of 2,500 bbls/d for 3Q20 at an average strike price of $0.57 per gallon.SEE WEBSITE FOR OTHER SUPPLEMENTAL INFORMATION FOR THE PERIODS AND ADDITIONAL HEDGING DETAILS

  • Why Range Resources Stock Fell as Much as 13% on July 27
    Motley Fool

    Why Range Resources Stock Fell as Much as 13% on July 27

    The company updated investors on some key metrics, and those suggest that second-quarter earnings will be rough reading.