FORT WORTH, Texas, Feb. 21, 2024 (GLOBE NEWSWIRE) — 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 millionCash flow from operations, before working capital changes, of $1.1 billionReduced net debt by $292 million, paid $77 million in dividends, and repurchased $19 million of sharesNet production averaged 2,139 Mmcfe per day, approximately 69% natural gasAll-in capital spending of $614 million, or $0.79 per mcfeProved reserves of 18.1 Tcfe with positive performance revisionsIncreased 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, respectivelyNet 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 3SW PA Wet 27 29SW PA Dry 11 20NE PA Dry 2 3Total 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 Gas
Equivalent (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 $3.07Settled NYMEX hedges 0.28 (4.30) — 0.18Average 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 additions207 Performance revisions611 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 $11.7 billion using the same proven reserve volumes.
2023 SEC
Pricing(a)Strip Price Average(b) Natural Gas Price ($/MMBtu)$2.62$3.57WTI Oil Price ($/Bbl)$78.10$63.49NGL Price ($/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 mcfeTransportation, gathering, processing and compression expense:$1.45 – $1.55 per mcfeOther tax expense:$0.04 – $0.05 per mcfeExploration expense:$22 – $28 millionG&A expense:$0.17 – $0.19 per mcfeNet interest expense:$0.14 – $0.16 per mcfeDD&A expense:$0.45 – $0.46 per mcfeNet 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 $0.45Natural Gas Liquids (including ethane):(2)Mont Belvieu minus $1.00 to plus $1.00 per barrelOil/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 Relations
817-869-4267
lsando@rangeresources.com
Range Media Contact:
Mark Windle, Director of Corporate Communications
724-873-3223
mwindle@rangeresources.com
RANGE RESOURCES CORPORATION STATEMENTS OF 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 Ended
December 31, Twelve Months Ended
December 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 Ended
December 31, Twelve Months Ended
December 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