• Range Announces Fourth Quarter 2022 Results and 2023 Guidance

    Source: Nasdaq GlobeNewswire / 27 Feb 2023 16:35:01   America/New_York

    FORT WORTH, Texas, Feb. 27, 2023 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its fourth quarter 2022 financial results and plans for 2023.

    Full-Year 2022 Highlights –

    • Generated record cash flow from operations of $1.9 billion
    • Returned $1.5 billion to shareholders through $400 million in share repurchases, $39 million in dividends and $1.1 billion in debt reduction
    • Net production averaged 2,121 Mmcfe per day
    • All-in capital spending of $492 million, or $0.64 per mcfe
    • Proved reserves of 18.1 Tcfe with an after-tax discounted future net cash flow of $24.5 billion
    • Estimated future development costs of $0.41 per mcfe for proved undeveloped reserves
    • Increased hedge positions for 2023 and 2024 to approximately 55% and 35% of natural gas production with weighted-average floors of $3.57 and $3.75 per MMBtu, respectively
    • Net Debt to EBITDAX of 0.8x (Non-GAAP) at year-end 2022

    2023 Production and Capital Guidance –

    • All-in 2023 capital budget of $570 to $615 million planned to maintain production at 2.12 to 2.16 Bcfe per day
    • 2023 all-in maintenance capital expected to be approximately $0.76 per mcfe, the lowest amongst U.S. natural gas producers

    Commenting on the 2022 results and 2023 plans, Jeff Ventura, the Company’s CEO said, “The Company successfully managed a great market opportunity in 2022 – generating record free cash flow, materially strengthening our financial foundation and returning significant capital to shareholders. We reduced debt by over $1 billion and expanded our return of capital program with $400 million in share repurchases and an annualized dividend of $0.32 per share. As we enter 2023, the progress made during the past year both financially and operationally puts Range in the strongest position in Company history. We are excited about the opportunity to develop Range’s world-class inventory over the coming decades into a growing market for natural gas and natural gas liquids.” 

    Financial Discussion

    Except for generally accepted accounting principles (“GAAP”) reported amounts, specific expense categories exclude non-cash impairments, unrealized mark-to-market adjustment on derivatives, non-cash stock compensation and other items shown separately on the attached tables. “Unit costs” as used in this release are composed of direct operating, transportation, gathering, processing and compression, taxes other than income, general and administrative, interest and depletion, depreciation and amortization costs divided by production. See “Non-GAAP Financial Measures” for a definition of each of the non-GAAP financial measures and the tables that reconcile each of the non-GAAP measures to their most directly comparable GAAP financial measure.

    Financial Position

    During the fourth quarter, Range purchased 3.19 million shares at an average price of approximately $26.87 per share. As of year-end, Range had approximately 238.9 million shares outstanding and $1.1 billion of availability on the current share repurchase program.  

    During 2022, Range reduced debt by a total of $1.08 billion, representing the Company’s fifth consecutive year of debt reduction. At year-end, Range’s net debt was approximately $1.87 billion, consisting of $1.85 billion of senior notes and $19 million bank facility borrowings. On a trailing twelve-month basis, Range’s leverage ratio, a non-GAAP metric, defined as Net-Debt-to-EBITDAX was approximately 0.8x.

    In the fourth quarter 2022, Range realized a total of $24.5 million in contingent derivative settlement gains related to an asset divestment completed in 2020. Range expects to receive the cash proceeds in the first half of 2023. Range has the potential to receive an additional $21 million in contingent payments based on natural gas, NGL and oil prices in 2023. At year-end 2022, the fair value of these remaining contingent payments was approximately $13.1 million.

    Capital Expenditures

    Fourth quarter 2022 drilling and completions expenditures were $99.9 million and $9.5 million was invested in acreage and gathering facilities. Total 2022 capital budget expenditures were $492 million, including $461 million on drilling and completion, and a combined $31 million on acreage, gas gathering systems and other investments.   $11 million of fourth quarter capital was invested in securing equipment being utilized for the 2023 operational plan.

    Fourth Quarter 2022 Results

    GAAP revenues for fourth quarter 2022 totaled $1.63 billion, GAAP net cash provided from operating activities (including changes in working capital) was $613 million, and GAAP net income was $814 million ($3.31 per diluted share).  Fourth quarter earnings results include a $448 million mark-to-market derivative gain due to decreases in commodity prices.

    Non-GAAP revenues for fourth quarter 2022 totaled $998 million, and cash flow from operations before changes in working capital, a non-GAAP measure, was $513 million.  Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $312 million ($1.30 per diluted share) in fourth quarter 2022.

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

    Expenses 4Q 2022
    (per mcfe)    		 3Q 2022
    (per mcfe)    		   Increase (Decrease)
            
    Direct operating $0.11 $0.11  0%
    Transportation, gathering, processing and compression  1.45  1.65  (12%)
    Taxes other than income  0.06  0.05  20%
    General and administrative(a)  0.15  0.15  0%
    Interest expense(a)  0.18  0.19  (5%)
    Total cash unit costs(b)  1.95  2.14  (9%)
    Depletion, depreciation and amortization (DD&A)  0.45  0.46  (2%)
    Total unit costs plus DD&A(b) $ 2.39 $ 2.60  (8%)


    (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 2022:

     4Q22 Production & Realized Pricing
      Natural Gas
    (Mcf)
    		 Oil (Bbl)
    		 NGLs
    (Bbl)
    		 Natural Gas
    Equivalent
    (Mcfe)
        
             
    Net production per day  1,517,483   6,696   107,806   2,204,493 
             
    Average NYMEX price $6.26  $82.74  $27.92   
    Differential, including basis hedging  (0.55)  (7.08)  (0.75)  
    Realized prices before NYMEX hedges  5.71   75.66   27.17  $5.49 
    Settled NYMEX hedges  (1.65)  (19.83)  0.66   (1.16)
    Average realized prices after hedges $ 4.06  $ 55.83  $ 27.83  $ 4.33 


    Fourth quarter 2022 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $4.33 per mcfe.

    • The average natural gas price, including the impact of basis hedging, was $5.71 per mcf, or a ($0.55) per mcf differential to NYMEX. Regional markets experienced wide basis pricing during the quarter, primarily related to the month of October, but have subsequently improved. Range’s 2023 natural gas differential is expected to be ($0.35) to ($0.45) relative to NYMEX.

    • Crude oil and condensate price realizations, before realized hedges, averaged $75.66 per barrel, or $7.08 below WTI (West Texas Intermediate). Range’s 2023 condensate differential is expected to be ($9.00) to ($13.00) relative to NYMEX.

    • Pre-hedge NGL realizations were $27.17 per barrel. The average NGL price, including settled index hedges was $27.83 per barrel. Range’s 2023 NGL differential is expected to be ($1.00) to +$1.00 relative to a Mont Belvieu equivalent barrel.

    2022 Proved Reserves

    Summary of Changes in Proved Reserves

    (in Bcfe)
    Balance at December 31, 2021 17,775 
      
    Extensions, discoveries and additions1,668 
    Performance revisions73 
    Locations re-entered to Development Plan716 
    Reclassification of PUD to unproved under SEC 5-year rule(1,381)
    Price revisions1 
    Production(774)
      
    Balance at December 31, 2022 18,078 


    As shown in the table below, the present value (PV10) of reserves under SEC methodology was $29.6 billion. For comparison, the PV10 using January 31, 2023 strip prices equates to $15.1 billion using the same proven reserve volumes.

         2022 SEC
    Pricing(a)    		Strip Price Average(b)
        
    Natural Gas Price ($/MMBtu) $6.36$4.22
    WTI Oil Price ($/Bbl) $94.13$63.15
    NGL Price ($/Bbl) $38.35$24.11
        
    Proved Reserves PV10 ($ billions) $29.6$15.1


    a)SEC benchmark prices adjusted for energy content, quality and basis differentials were $6.08 per mcf and $87.14 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 ($0.37) and an average realized oil differential of ($6.99) per barrel, which equate to $4.24 per mcf and $52.60 per barrel over the life of the reserves.


    Year-end 2022 reserves included 7.1 Tcfe of proved undeveloped reserves from 367 wells planned to be developed within the next five years with a projected development cost of $0.41 per mcfe. Beyond the five-year reserve calculation window, Range has thousands of high-quality well locations in the Marcellus and further upside in the Utica and Upper Devonian horizons. Range also has a network of more than 250 existing well pads that provide Range the opportunity to develop thousands of future wells while utilizing existing roads, pads and infrastructure. Consistent with recent years more than half of Range’s wells expected to turn to sales in 2023 are from pad sites with existing production.

    2023 Capital Program and Production Guidance

    Range’s 2023 all-in capital budget is expected to be $570 to $615 million. The capital budget includes approximately $540 million to $565 million for drilling and completion costs and $30 - $50 million for acreage, leasehold and other investments. 

    Consistent with recent years, Range’s development plan for 2023 will target a maintenance program that holds production approximately flat. Due to efficiencies gained through second half 2022 and into early 2023, Range expects to have a slight build of in-process well inventory during 2023 that will provide optionality into the 2024 and 2025 planning process. There is approximately $30 million included in the 2023 capital plan for this increased inventory. Range’s 2023 plan is expected to deliver an all-in maintenance capital cost of approximately $0.76 per mcfe, which is expected to be the lowest-cost program in Appalachia.

    The table below summarizes expected 2023 activity and 2022 regarding the number of wells to sales in each area.

      Planned Wells
    TIL in 2023
    		 Wells TIL in
    2022
    SW PA Super-Rich 3 4
    SW PA Wet 31 21
    SW PA Dry 24 23
    NE PA Dry 3 7
    Total Appalachia 61 55


    Guidance – 2023

    Capital & Production Guidance

    Range is targeting a maintenance program in 2023, holding production approximately flat at 2.12 – 2.16 Bcfe per day, with ~30% attributed to liquids production. Range’s 2023 all-in capital budget is $570 million - $615 million.

    Full Year 2023 Expense Guidance  

    Direct operating expense:$0.11 - $0.13 per mcfe
    Transportation, gathering, processing and compression expense:$1.48 - $1.58 per mcfe
    Other tax expense:$0.04 - $0.05 per mcfe
    Exploration expense:$22 - $28 million
    G&A expense:$0.17 - $0.19 per mcfe
    Net interest expense:$0.14 - $0.16 per mcfe
    DD&A expense:$0.46 - $0.48 per mcfe
    Net brokered gas marketing expense:$10 - $14 million


    Full Year 2023 Price Guidance

    Based on recent market indications, Range expects to average the following price differentials for its production in 2023.

    Natural Gas:(1)NYMEX minus $0.35 to $0.45
    Natural Gas Liquids (including ethane):(2)Mont Belvieu minus $1.00 to plus $1.00 per barrel
    Oil/Condensate:WTI minus $9.00 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 maintain a strong, flexible financial position. Please see the detailed hedging schedule posted on the Range website under Investor Relations - Financial Information.

    Conference Call Information

    A conference call to review the financial results is scheduled on Tuesday, February 28 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 28th.

    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 Report on Form 10-K. 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 is relevant and useful to 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 creditors and security analysts to evaluate estimated net cash flows from proved reserves on a more comparable basis.

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

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

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

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

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

    SOURCE: Range Resources Corporation

    Range Investor Contacts:

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

    Range Media Contacts:

    Mark Windle, Director of Corporate Communications
    724-873-3223
    mwindle@rangeresources.com


    RANGE RESOURCES CORPORATION

    STATEMENTS OF OPERATIONS                       
    Based on GAAP reported earnings with additional                       
    details of items included in each line in Form 10-K                       
    (Unaudited, in thousands, except per share data)                       
                            
     Three Months Ended December 31, Twelve Months Ended December 31,
      2022   2021   %   2022   2021   % 
                            
    Revenues and other income:                       
    Natural gas, NGLs and oil sales (a)$1,086,697  $1,140,520      $4,911,092  $3,215,027     
    Derivative fair value gain (loss) 448,181   309,566       (1,188,506)  (650,216)    
    Brokered natural gas, marketing and other (b) 93,335   116,692       419,776   364,029     
    ARO settlement gain (loss) (b) —   —       8   (3)    
    Other (b) 2,166   52       4,433   1,386     
    Total revenues and other income 1,630,379   1,566,830   4%  4,146,803   2,930,223   42%
                            
    Costs and expenses:                       
    Direct operating 22,282   17,310       82,827   73,977     
    Direct operating – stock-based compensation (c) 376   324       1,459   1,310     
    Transportation, gathering, processing and compression 294,228   320,785       1,235,441   1,174,469     
    Transportation, gathering, processing and compression – settlements —   —       7,500   —     
    Taxes other than income 11,178   9,515       35,367   30,648     
    Brokered natural gas and marketing 95,960   119,656       424,609   365,494     
    Brokered natural gas and marketing – stock-based compensation (c) 571   455       2,439   1,794     
    Exploration 6,654   6,717       25,194   22,048     
    Exploration – non-cash stock-based compensation (c) 415   391       1,578   1,507     
    Abandonment and impairment of unproved properties 16,289   —       28,608   7,206     
    General and administrative 31,290   30,331       124,282   119,677     
    General and administrative – stock-based compensation (c) 9,778   11,041       42,023   39,673     
    General and administrative – lawsuit settlements 722   510       1,498   8,885     
    General and administrative – rig release penalty 532   —       532   —     
    General and administrative – bad debt expense (250)  200       (250)  200     
    Exit costs 12,088   12,104       70,337   21,661     
    Deferred compensation plan (d) 1,963   (21,200)      61,880   68,351     
    Interest expense 35,725   54,004       156,862   218,043     
    Interest expense – amortization of deferred financing costs (e) 1,508   2,358       8,283   9,293     
    Loss on early extinguishment of debt 261   —       69,493   98     
    Depletion, depreciation and amortization 90,847   92,427       353,420   364,555     
    Loss (gain) on sale of assets 139   23       (409)  (701)    
    Total costs and expenses 632,556   656,951   -4%  2,732,973   2,528,188   8%
                            
    Income before income taxes 997,823   909,879   10%  1,413,830   402,035   252%
                            
    Income tax (benefit) expense:                       
    Current (6,044)  763       14,688   7,984     
    Deferred 189,631   17,750       215,772   (17,727)    
      183,587   18,513       230,460   (9,743)    
                            
    Net income$814,236  $891,366   -9% $1,183,370  $411,778   187%
                            
    Net Income Per Common Share:                       
    Basic$3.38  $3.57      $4.79  $1.65     
    Diluted$3.31  $3.47      $4.69  $1.61     
                            
    Weighted average common shares outstanding, as reported:                       
    Basic 234,948   243,369   -3%  240,858   242,862   -1%
    Diluted 240,222   250,441   -4%  246,379   249,314   -1%


    (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, 
      2022   2021 
      (Audited)   (Audited) 
    Assets       
    Current assets$538,662  $730,927 
    Derivative assets 41,915   44,339 
    Natural gas and oil properties, successful efforts method 5,890,404   5,754,656 
    Transportation and field assets 2,434   3,494 
    Operating lease right-of-use assets 84,070   40,832 
    Other 68,077   86,259 
     $6,625,562  $6,660,507 
            
    Liabilities and Stockholders’ Equity       
    Current liabilities$864,678  $766,371 
    Asset retirement obligations 4,570   5,310 
    Derivative liabilities 151,417   162,767 
    Current maturities of long-term debt —   218,017 
            
    Bank debt 9,509   — 
    Senior notes 1,832,451   2,707,770 
    Total debt 1,841,960   2,707,770 
            
    Deferred tax liabilities 333,571   117,642 
    Derivative liabilities 15,495   8,216 
    Deferred compensation liabilities 99,907   137,102 
    Operating lease liabilities 20,903   24,861 
    Asset retirement obligations and other liabilities 112,981   101,509 
    Divestiture contract obligation 304,074   325,279 
            
    Common stock and retained deficit 3,305,198   2,115,820 
    Other comprehensive gain (loss) 467   (150)
    Common stock held in treasury (429,659)  (30,007)
    Total stockholders’ equity 2,876,006   2,085,663 
     $6,625,562  $6,660,507 


    RECONCILIATION OF TOTAL REVENUES AND OTHER INCOME TO TOTAL REVENUE EXCLUDING CERTAIN ITEMS, a non-GAAP measure   
    (Unaudited, in thousands)   
     Three Months Ended December 31, Twelve Months Ended December 31, 
      2022   2021   %   2022   2021   %  
                             
    Total revenues and other income, as reported$1,630,379  $1,566,830   4% $4,146,803  $2,930,223   42% 
    Adjustment for certain special items:                        
    Total change in fair value related to derivatives prior to settlement (gain) loss (632,813)  (590,414)      (1,648)  130,203      
    ARO settlement (gain) loss —   —       (8)  3      
    Total revenues, as adjusted, non-GAAP$997,566  $976,416   2% $4,145,147  $3,060,429   35% 


    RANGE RESOURCES CORPORATION

    CASH FLOWS FROM OPERATING ACTIVITIES               
    (Unaudited in thousands)               
                    
     Three Months Ended December 31,  Twelve Months Ended December 31, 
      2022   2021   2022   2021 
                    
    Net income$814,236  $891,366  $1,183,370  $411,778 
    Adjustments to reconcile net cash provided from continuing operations:               
    Deferred income tax expense (benefit) 189,631   17,750   215,772   (17,727)
    Depletion, depreciation, amortization and impairment 90,847   92,427   353,420   364,555 
    Abandonment and impairment of unproved properties 16,289   —   28,608   7,206 
    Derivative fair value (income) loss (448,181)  (309,566)  1,188,506   650,216 
    Cash settlements on derivative financial instruments (184,632)  (280,848)  (1,190,154)  (520,013)
    Divestiture contract obligation 11,975   11,873   69,766   20,340 
    Allowance for bad debts (250)  200   (250)  200 
    Amortization of deferred issuance costs and other 1,438   2,094   7,959   8,347 
    Deferred and stock-based compensation 12,562   (9,590)  107,959   110,356 
    Loss (gain) on sale of assets and other 139   23   (409)  (701)
    Loss on early extinguishment of debt 261   —   69,493   98 
                    
    Changes in working capital:               
    Accounts receivable 129,358   (134,334)  (3,286)  (250,538)
    Prepaid and other 1,040   2,434   (18,438)  (1,140)
    Accounts payable (35,215)  4,918   17,077   39,231 
    Accrued liabilities and other 13,157   28,912   (164,649)  (29,260)
    Net changes in working capital 108,340   (98,070)  (169,296)  (241,707)
    Net cash provided from operating activities$612,655  $317,659  $1,864,744  $792,948 
                    
                    
                    
    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 December 31,  Twelve Months Ended December 31, 
      2022   2021   2022   2021 
    Net cash provided from operating activities, as reported$612,655  $317,659  $1,864,744  $792,948 
    Net changes in working capital (108,340)  98,070   169,296   241,707 
    Exploration expense 6,654   6,717   25,212   22,048 
    Lawsuit settlements 722   510   1,498   8,885 
    Transportation, gathering, processing and compression settlements —   —   7,500   — 
    Non-cash compensation adjustment and other 1,256   1,096   2,821   4,549 
    Cash flow from operations before changes in working capital – non-GAAP measure$512,947  $424,052  $2,071,071  $1,070,137 
                    
                    
                    
    ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING               
    (Unaudited, in thousands)               
                    
     Three Months Ended December 31,  Twelve Months Ended December 31, 
      2022   2021   2022   2021 
    Basic:               
    Weighted average shares outstanding 240,625   249,794   246,918   249,400 
    Stock held by deferred compensation plan (5,677)  (6,425)  (6,060)  (6,538)
    Adjusted basic 234,948   243,369   240,858   242,862 
                    
    Dilutive:               
    Weighted average shares outstanding 240,625   249,794   246,918   249,400 
    Dilutive stock options under treasury method (403)  647   (539)  (86)
    Adjusted dilutive 240,222   250,441   246,379   249,314 
                    
                    


    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, 
      2022   2021   %   2022   2021   % 
    Natural gas, NGL and oil sales components:                       
    Natural gas sales$770,571  $743,948      $3,364,111  $1,896,231     
    NGL sales 269,517   340,653       1,308,574   1,135,826     
    Oil sales 46,609   55,919       238,407   182,970     
    Total oil and gas sales, as reported$1,086,697  $1,140,520   -5% $4,911,092  $3,215,027   53%
                            
    Derivative fair value income (loss), as reported:$448,181  $309,566      $(1,188,506) $(650,216)    
    Cash settlements on derivative financial instruments – (gain) loss:                       
    Natural gas 203,422   282,434       1,119,940   415,228     
    NGLs (6,505)  13,939       12,168   91,838     
    Crude Oil 12,215   13,975       82,546   42,447     
    Contingent consideration - divestiture (24,500)  (29,500)      (24,500)  (29,500)    
    Total change in fair value related to commodity derivatives prior to settlement, a non-GAAP measure (e)$632,813  $590,414      $1,648  $(130,203)    
                            
    Transportation, gathering, processing and compression components:                       
    Natural gas$163,768  $175,828      $677,316  $661,990     
    NGLs 130,460   144,920       565,614   511,568     
    Oil —   37       11   911     
    Total transportation, gathering, processing and compression, as reported$294,228  $320,785      $1,242,941  $1,174,469     
                            
    Natural gas, NGL and oil sales, including cash-settled derivatives: (c)                       
    Natural gas sales$567,149  $461,514      $2,244,171  $1,481,003     
    NGL sales 276,022   326,714       1,296,406   1,043,988     
    Oil sales 34,394   41,944       155,861   140,523     
    Total$877,565  $830,172   6% $3,696,438  $2,665,514   39%
                            
    Production of oil and gas during the periods: (a)                       
    Natural gas (mcf) 139,608,416   141,092,053   -1%  539,442,624   541,021,442   0%
    NGL (bbl) 9,918,111   9,395,605   6%  36,392,033   36,372,862   0%
    Oil (bbl) 616,051   798,054   -23%  2,715,681   3,044,026   -11%
    Gas equivalent (mcfe) (b) 202,813,388   202,254,009   0%  774,088,908   777,522,772   0%
                            
    Production of oil and gas – average per day: (a)                       
    Natural gas (mcf) 1,517,483   1,533,609   -1%  1,477,925   1,482,251   0%
    NGL (bbl) 107,806   102,126   6%  99,704   99,652   0%
    Oil (bbl) 6,696   8,675   -23%  7,440   8,340   -11%
    Gas equivalent (mcfe) (b) 2,204,493   2,198,413   0%  2,120,792   2,130,199   0%
                            
    Average prices, excluding derivative settlements and before third party transportation costs:                       
    Natural gas (mcf)$5.52  $5.27   5% $6.24  $3.50   78%
    NGL (bbl)$27.17  $36.26   -25% $35.96  $31.23   15%
    Oil (bbl)$75.66  $70.07   8% $87.79  $60.11   46%
    Gas equivalent (mcfe) (b)$5.36  $5.64   -5% $6.34  $4.13   53%
                            
    Average prices, including derivative settlements before third party transportation costs: (c)                       
    Natural gas (mcf)$4.06  $3.27   24% $4.16  $2.74   52%
    NGL (bbl)$27.83  $34.77   -20% $35.62  $28.70   24%
    Oil (bbl)$55.83  $52.56   6% $57.39  $46.16   24%
    Gas equivalent (mcfe) (b)$4.33  $4.10   5% $4.78  $3.43   39%
                            
    Average prices, including derivative settlements and after third party transportation costs: (d)                       
    Natural gas (mcf)$2.89  $2.02   43% $2.90  $1.51   92%
    NGL (bbl)$14.68  $19.35   -24% $20.08  $14.64   37%
    Oil (bbl)$55.82  $52.51   6% $57.39  $45.86   25%
    Gas equivalent (mcfe) (b)$2.88  $2.52   14% $3.17  $1.92   65%
                            
    Transportation, gathering and compression expense per mcfe$1.45  $1.59   -9% $1.61  $1.51   6%


    (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,
      2022   2021   %   2022   2021   % 
                            
    Income from operations before income taxes, as reported$997,823  $909,879   10% $1,413,830  $402,035   252%
    Adjustment for certain special items:                       
    Loss (gain) on sale of assets 139   23       (409)  (701)    
    (Gain) loss on ARO settlements —   —       (8)  3     
    Change in fair value related to derivatives prior to settlement (632,813)  (590,414)      (1,648)  130,203     
    Abandonment and impairment of unproved properties 16,289   —       28,608   7,206     
    Loss on early extinguishment of debt 261   —       69,493   98     
    Transportation, gathering, processing and compression settlements —   —       7,500   —     
    Lawsuit settlements 722   510       1,498   8,885     
    Exit costs 12,088   12,104       70,337   21,661     
    Brokered natural gas and marketing – non-cash stock-based compensation 571   455       2,439   1,794     
    Direct operating – non-cash stock-based compensation 376   324       1,459   1,310     
    Exploration expenses – non-cash stock-based compensation 415   391       1,578   1,507     
    General & administrative – non-cash stock-based compensation 9,778   11,041       42,023   39,673     
    Deferred compensation plan – non-cash adjustment 1,963   (21,200)      61,880   68,351     
                            
    Income before income taxes, as adjusted 407,612   323,113   26%  1,698,580   682,025   149%
                            
    Income tax (benefit) expense, as adjusted                       
    Current (6,044)  763       14,688   7,984     
    Deferred (a) 101,903   80,778       424,645   170,506     
    Net income excluding certain items, a non-GAAP measure$311,753  $241,572   29% $1,259,247  $503,535   150%
                            
    Non-GAAP income per common share                       
    Basic$1.33  $0.99   34% $5.23  $2.07   153%
    Diluted$1.30  $0.96   35% $5.11  $2.02   153%
                            
    Non-GAAP diluted shares outstanding, if dilutive 240,222   250,441       246,379   249,314     


    (a)Deferred taxes are estimated to be approximately 25% for 2022 and 2021.

         

    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,    		 
      2022   2021    2022   2021  
                      
    Net income, as reported$814,236  $891,366   $1,183,370  $411,778  
    Adjustment for certain special items:                 
    Loss (gain) on sale of assets 139   23    (409)  (701) 
    (Gain) loss on ARO settlements —   —    (8)  3  
    Loss on early extinguishment of debt 261   —    69,493   98  
    Change in fair value related to derivatives prior to settlement (632,813)  (590,414)   (1,648)  130,203  
    Transportation, gathering, processing and compression settlements —   —    7,500   —  
    Abandonment and impairment of unproved properties 16,289   —    28,608   7,206  
    Lawsuit settlements 722   510    1,498   8,885  
    Exit costs 12,088   12,104    70,337   21,661  
    Non-cash stock-based compensation 11,140   12,211    47,499   44,284  
    Deferred compensation plan 1,963   (21,200)   61,880   68,351  
    Tax impact 87,728   (63,028)   (208,873)  (188,233) 
                      
    Net income excluding certain items, a non-GAAP measure$311,753  $241,572   $1,259,247  $503,535  
                      
    Net income per diluted share, as reported$3.31  $3.47   $4.69  $1.61  
    Adjustment for certain special items per diluted share:                 
    Loss (gain) on sale of assets 0.00   0.00    (0.00)  (0.00) 
    (Gain) loss on ARO settlements —   —    (0.00)  0.00  
    Loss on early extinguishment of debt 0.00   —    0.28   0.00  
    Change in fair value related to derivatives prior to settlement (2.63)  (2.36)   (0.01)  0.52  
    Transportation, gathering, processing and compression settlements —   —    0.03   —  
    Abandonment and impairment of unproved properties 0.07   —    0.12   0.03  
    Lawsuit settlements 0.00   0.00    0.01   0.04  
    Exit costs 0.05   0.05    0.29   0.09  
    Non-cash stock-based compensation 0.05   0.05    0.19   0.18  
    Deferred compensation plan 0.01   (0.08)   0.25   0.27  
    Adjustment for rounding differences (0.01)  —    —   —  
    Tax impact 0.37   (0.25)   (0.85)  (0.76) 
    Dilutive share impact (rabbi trust and other) 0.08   0.08    0.11   0.04  
                      
    Net income per diluted share, excluding certain items, a non-GAAP measure$1.30  $0.96   $5.11  $2.02  
                      
    Adjusted earnings per share, a non-GAAP measure:                 
    Basic$1.33  $0.99   $5.23  $2.07  
    Diluted$1.30  $0.96   $5.11  $2.02  
                      

    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,    		  
      2022   2021    2022   2021  
                      
    Revenues                 
    Natural gas, NGL and oil sales, as reported$1,086,697  $1,140,520   $4,911,092  $3,215,027  
    Derivative fair value income (loss), as reported 448,181   309,566    (1,188,506)  (650,216) 
    Less non-cash fair value (gain) loss (632,813)  (590,414)   (1,648)  130,203  
    Brokered natural gas and marketing and other, as reported 95,501   116,744    424,217   365,412  
    Less ARO settlement and other (gains) losses (2,166)  (52)   (4,441)  (1,383) 
    Cash revenue applicable to production 995,400   976,364    4,140,714   3,059,043  
                      
    Expenses                 
    Direct operating, as reported 22,658   17,634    84,286   75,287  
    Less direct operating stock-based compensation (376)  (324)   (1,459)  (1,310) 
    Transportation, gathering and compression, as reported 294,228   320,785    1,242,941   1,174,469  
    Less transportation, gathering and compression settlements —   —    (7,500)  —  
    Taxes other than income, as reported 11,178   9,515    35,367   30,648  
    Brokered natural gas and marketing, as reported 96,531   120,111    427,048   367,288  
    Less brokered natural gas and marketing stock-based compensation (571)  (455)   (2,439)  (1,794) 
    General and administrative, as reported 42,072   42,082    168,085   168,435  
    Less G&A stock-based compensation (9,778)  (11,041)   (42,023)  (39,673) 
    Less lawsuit settlements (722)  (510)   (1,498)  (8,885) 
    Interest expense, as reported 37,233   56,362    165,145   227,336  
    Less amortization of deferred financing costs (1,508)  (2,358)   (8,283)  (9,293) 
    Cash expenses 490,945   551,801    2,059,670   1,982,508  
                      
    Cash margin, a non-GAAP measure$504,455  $424,563   $2,081,044  $1,076,535  
                      
    Mmcfe produced during period 202,813   202,254    774,089   777,523  
                      
    Cash margin per mcfe$2.49  $2.10   $2.69  $1.38  
                      
                      
    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,    		  
      2022   2021    2022   2021  
                      
    Income before income taxes, as reported$997,823  $909,879   $1,413,830  $402,035  
    Adjustments to reconcile income before income taxes to cash margin:                 
    ARO settlements and other gains (2,166)  (52)   (4,441)  (1,383) 
    Derivative fair value (income) loss (448,181)  (309,566)   1,188,506   650,216  
    Net cash payments on derivative settlements (184,632)  (280,848)   (1,190,154)  (520,013) 
    Transportation, gathering and compression settlements —   —    7,500   —  
    Exploration expense 6,654   6,717    25,194   22,048  
    Lawsuit settlements 722   510    1,498   8,885  
    Exit costs 12,088   12,104    70,337   21,661  
    Deferred compensation plan 1,963   (21,200)   61,880   68,351  
    Stock-based compensation (direct operating, brokered natural gas and marketing, general and administrative and termination costs) 11,140   12,211    47,499   44,284  
    Interest – amortization of deferred financing costs 1,508   2,358    8,283   9,293  
    Depletion, depreciation and amortization 90,847   92,427    353,420   364,555  
    Loss (gain) on sale of assets 139   23    (409)  (701) 
    Loss on early extinguishment of debt 261   —    69,493   98  
    Abandonment and impairment of unproved properties 16,289   —    28,608   7,206  
    Cash margin, a non-GAAP measure$504,455  $424,563   $2,081,044  $1,076,535  
                      

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