• Range Announces Third Quarter 2023 Results

    Source: Nasdaq GlobeNewswire / 24 Oct 2023 16:45:01   America/New_York

    FORT WORTH, Texas, Oct. 24, 2023 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its third quarter 2023 financial results.

    Third Quarter 2023 Highlights –

    • Cash flow from operating activities of $150 million
    • Cash flow from operations, before working capital changes, of $240 million
    • Capital spending was $151 million, approximately 25% of the 2023 budget
    • Production averaged 2.12 Bcfe per day, approximately 68% natural gas
    • Price realizations including hedges of $3.09 per mcfe – premium of $0.54 over NYMEX natural gas
    • NGL realizations of $24.44 per barrel – premium of $0.63 over Mont Belvieu equivalent
    • Natural gas differentials, including basis hedging, averaged ($0.56) per mcf to NYMEX

    Commenting on the quarter, Dennis Degner, the Company’s CEO said, “Third quarter results continued to showcase the resilience of Range’s business. Range’s competitive cost structure, low relative capital intensity, liquids optionality and thoughtful hedging allowed us to generate strong full-cycle margins despite challenged natural gas prices. Strong operational execution, longer laterals, and consistent well results are driving a 2023 maintenance production plan that requires only 51 wells to be turned to sales this year. The Range team remains focused on efficiently developing our Marcellus assets to create value for shareholders into what we expect is an improving macro outlook 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.

    Third Quarter 2023 Results

    GAAP revenues for third quarter 2023 totaled $610 million, GAAP net cash provided from operating activities (including changes in working capital) was $150 million, and GAAP net income was $49 million ($0.20 per diluted share).  Third quarter earnings results include a $38 million mark-to-market derivative gain due to decreases in commodity prices.

    Non-GAAP revenues for third quarter 2023 totaled $649 million, and cash flow from operations before changes in working capital, a non-GAAP measure, was $240 million.  Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $111 million ($0.46 per diluted share) in third quarter 2023.

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

    Expenses 3Q 2023
    (per mcfe)    		 3Q 2022
    (per mcfe)    		  Increase (Decrease)
           
    Direct operating(a) $0.11  $0.11  0%
    Transportation, gathering,
    processing and compression(a)    		  1.42   1.65  (14%)
    Taxes other than income  0.02   0.05  (60%)
    General and administrative(a)  0.15   0.15  0%
    Interest expense(a)  0.15   0.19  (21%)
    Total cash unit costs(b)       1.86   2.15  (13%)
    Depletion, depreciation and
    amortization (DD&A)    		  0.45   0.46  (2%)
    Total unit costs plus DD&A(b) $ 2.31  $ 2.61  (12%)

    (a)   Excludes stock-based compensation, one-time settlements, and amortization of deferred financing costs.
    (b)   Totals may not be exact due to rounding.

    The following table details Range’s average production and realized pricing for third quarter 2023(a):

     3Q23 Production & Realized Pricing
      Natural Gas
    (Mcf)
    		 Oil
    (Bbl)
    		 NGLs
    (Bbl)    		 Natural Gas
    Equivalent (Mcfe)
                     
    Net production per day  1,448,972   6,386   105,957   2,123,027 
               
    Average NYMEX price $2.55  $82.12  $23.81     
    Differential, including basis hedging  (0.56)  (11.43)  0.63     
    Realized prices before NYMEX hedges  1.99   70.69   24.44   2.79 
    Settled NYMEX hedges  0.48   (8.56)  —   0.30 
    Average realized prices after hedges $ 2.47  $ 62.13  $ 24.44  $
    		3.09
    		 

    (a)   Totals may not be exact due to rounding

    Third quarter 2023 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $3.09 per mcfe.

    • The average natural gas price, including the impact of basis hedging, was $1.99 per mcf, or a ($0.56) per mcf differential to NYMEX. The Company now expects full-year 2023 natural gas differentials versus NYMEX to be within a range of ($0.40) to ($0.45) per mcf.

    • Range’s pre-hedge NGL price during the quarter was $24.44 per barrel, approximately $0.63 above the Mont Belvieu weighted equivalent. Fourth quarter 2023 differentials are expected to fall within the range of minus $1.00 to plus $1.00 per barrel, resulting in a premium differential for full year 2023.

    • Crude oil and condensate price realizations, before realized hedges, averaged $70.69 per barrel, or $11.43 below WTI (West Texas Intermediate). Range continues to expect the 2023 condensate differential to average $9.00-$13.00 below WTI.

    Capital Expenditures and Operational Activity

    Third quarter 2023 drilling and completion expenditures were $146 million. In addition, during the quarter, approximately $5 million was invested in acreage leasehold, gathering systems and other. Total capital spending through third quarter was $478 million, representing approximately 80% of Range’s capital budget for 2023.
      
    The table below summarizes expected 2023 activity regarding the number of wells to sales in each area. Range still expects to turn to sales approximately 650,000 feet of lateral this year, though longer laterals have reduced the number of wells required versus original plans for 61 wells in 2023.

     Wells TIL
    3Q 2023    		 2023
    Planned TIL    		 Remaining
    2023
    SW PA Super-Rich0 3 0
    SW PA Wet6 25 9
    SW PA Dry13 20 0
    NE PA Dry0 3 3
    Total Wells19 51 12


    Financial Position and Buyback Activity

    As of September 30, 2023, Range had net debt outstanding of approximately $1.63 billion, consisting of $1.79 billion of senior notes and $163 million in cash. Range did not repurchase shares during the third quarter.

    Guidance – 2023

    Capital & Production Guidance

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

    Updated Full Year 2023 Expense Guidance

    Direct operating expense:$0.11 - $0.13 per mcfe
    Transportation, gathering, processing and compression expense:$1.43 - $1.46 per mcfe
    Taxes other than income:$0.04 - $0.05 per mcfe
    Exploration expense:$22 - $28 million
    G&A expense:$0.17 - $0.19 per mcfe
    Interest expense:$0.14 - $0.16 per mcfe
    DD&A expense:$0.46 - $0.48 per mcfe
    Net brokered gas marketing expense:$0 - $5 million


    Updated     2023 Price Guidance

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

    FY 2023 Natural Gas:(1)NYMEX minus $0.40 to $0.45
    4Q 2023 Natural Gas Liquids:(2)MB minus $1.00 to +$1.00 per barrel
    FY 2023 Oil/Condensate:WTI minus $9.00 to $13.00

    (1) Including basis hedging
    (2) Mont Belvieu-equivalent pricing based on weighting of 53% ethane, 27% propane, 8% normal butane, 4% iso-butane and 8% natural gasoline.

    Hedging Status

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

    Range has also hedged 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 September 30, 2023, was a net gain of $17.1 million.

    Conference Call Information

    A conference call to review the financial results is scheduled on Wednesday, October 25 at 8:00 AM Central Time (9:00 AM Eastern Time). Please click here to pre-register for the conference call and obtain a dial in number with passcode.

    A simultaneous webcast of the call may be accessed at www.rangeresources.com. The webcast will be archived for replay on the Company's website until November 24th.

    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 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 September 30, Nine Months Ended September 30,
      2023   2022   %   2023   2022   % 
                            
    Revenues and other income:                       
    Natural gas, NGLs and oil sales (a)$526,718  $1,435,152      $1,731,382  $3,824,395     
    Derivative fair value income (loss) 38,394   (457,708)      530,095   (1,636,687)    
    Brokered natural gas, marketing and other (b) 43,325   132,681       162,092   326,441     
    ARO settlement (loss) gain (b) (1)  8       (1)  8     
    Interest income (b) 1,279   381       4,016   422     
    Other (b) 9   31       5,477   1,845     
    Total revenues and other income 609,724   1,110,545   -45%  2,433,061   2,516,424   -3%
                            
    Costs and expenses:                       
    Direct operating 22,123   20,918       72,162   60,545     
    Direct operating – stock-based compensation (c) 439   372       1,280   1,083     
    Transportation, gathering, processing and compression 277,207   323,019       830,880   941,213     
    Transportation, gathering, processing and compression – settlements —   —       —   7,500     
    Taxes other than income 4,756   9,057       19,643   24,189     
    Brokered natural gas and marketing 45,723   126,622       156,470   328,649     
    Brokered natural gas and marketing – stock-based compensation (c) 483   663       1,604   1,868     
    Exploration 6,658   7,105       18,087   18,540     
    Exploration – stock-based compensation (c) 312   393       935   1,163     
    Abandonment and impairment of unproved properties 11,012   3,186       44,308   12,319     
    General and administrative 29,581   30,085       93,366   92,992     
    General and administrative – stock-based compensation (c) 8,446   10,402       26,461   32,245     
    General and administrative – lawsuit settlements 66   81       938   776     
    Exit costs 10,684   11,065       71,661   58,249     
    Deferred compensation plan (d) 8,997   5,795       29,546   59,917     
    Interest expense 29,260   37,173       89,886   121,137     
    Interest expense – amortization of deferred financing costs (e) 1,339   1,563       4,032   6,775     
    (Gain) loss on early extinguishment of debt   —   —       (439)  69,232     
    Depletion, depreciation and amortization 87,619   90,471       259,197   262,573     
    Gain on sale of assets (109)  (135)      (353)  (548)    
    Total costs and expenses 544,596   677,835   -20%  1,719,664   2,100,417   -18%
                            
    Income before income taxes 65,128   432,710   -85%  713,397   416,007   71%
                            
    Income tax expense:                       
    Current 601   6,981       3,000   20,732     
    Deferred 15,097   52,642       149,289   26,141     
      15,698   59,623       152,289   46,873     
                            
    Net income$49,430  $373,087   -87% $561,108  $369,134   52%
                            
    Net Income Per Common Share:                       
    Basic$0.20  $1.52      $2.30  $1.48     
    Diluted$0.20  $1.49      $2.27  $1.45     
                            
    Weighted average common shares outstanding, as reported:                       
    Basic 241,338   239,768   1%  239,455   242,850   -1%
    Diluted 243,937   245,023   0%  242,144   248,360   -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 CORPORATION
     
    BALANCE SHEETS       
    (In thousands) September 30,   December 31, 
      2023   2022 
      (Unaudited)   (Audited) 
    Assets       
    Current assets$422,571  $538,662 
    Derivative assets 217,020   41,915 
    Natural gas and oil properties, successful efforts method 6,071,332   5,890,404 
    Other property and equipment 1,562   2,434 
    Operating lease right-of-use assets 37,801   84,070 
    Other 95,649   68,077 
     $6,845,935  $6,625,562 
            
    Liabilities and Stockholders’ Equity       
    Current liabilities$638,943  $864,678 
    Asset retirement obligations 4,570   4,570 
    Derivative liabilities —   151,417 
            
    Bank debt —   9,509 
    Senior notes 1,773,436   1,832,451 
    Total debt 1,773,436   1,841,960 
            
    Deferred tax liabilities 482,869   333,571 
    Derivative liabilities 417   15,495 
    Deferred compensation liabilities 65,404   99,907 
    Operating lease liabilities 17,605   20,903 
    Asset retirement obligations and other liabilities 115,243   112,981 
    Divestiture contract obligation 299,868   304,074 
            
    Common stock and retained deficit 3,886,387   3,305,198 
    Other comprehensive loss 495   467 
    Common stock held in treasury (439,302)  (429,659)
    Total stockholders’ equity 3,447,580   2,876,006 
     $6,845,935  $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
    September 30,    		  Nine Months Ended
    September 30,    		 
      2023   2022  %   2023   2022  % 
                          
    Total revenues and other income, as reported$609,724  $1,110,545  -45% $2,433,061  $2,516,424  -3%
    Adjustment for certain special items:                     
    Total change in fair value related to derivatives prior to settlement loss (gain) 39,048   (6,969)     (341,599)  631,165    
    ARO settlement loss (gain) 1   (8)     1   (8)   
    Total revenues, as adjusted, non-GAAP$648,773  $1,103,568  -41% $2,091,463  $3,147,581  -34%


     
    RANGE RESOURCES CORPORATION
                    
    CASH FLOWS FROM OPERATING ACTIVITIES               
    (Unaudited in thousands)               
                    
     Three Months Ended September 30,  Nine Months Ended September 30, 
      2023   2022   2023   2022 
                    
    Net income$49,430  $373,087  $561,108  $369,134 
    Adjustments to reconcile net cash provided from continuing operations:               
    Deferred income tax expense 15,097   52,642   149,289   26,141 
    Depletion, depreciation and amortization 87,619   90,471   259,197   262,573 
    Abandonment and impairment of unproved properties 11,012   3,186   44,308   12,319 
    Derivative fair value (income) loss (38,394)  457,708   (530,095)  1,636,687 
    Cash settlements on derivative financial instruments 77,442   (464,677)  188,496   (1,005,522)
    Divestiture contract obligation, including accretion 10,606   10,930   71,380   57,791 
    Amortization of deferred issuance costs and other 997   1,401   3,591   6,521 
    Deferred and stock-based compensation 18,763   17,242   60,166   95,397 
    Gain on sale of assets (109)  (135)  (353)  (548)
    (Gain) loss on early extinguishment of debt —   —   (439)  69,232 
                    
    Changes in working capital:               
    Accounts receivable (29,566)  (25,446)  288,415   (132,644)
    Other current assets (6,522)  3,621   (9,520)  (19,478)
    Accounts payable (8,147)  15,918   (84,291)  52,292 
    Accrued liabilities and other (37,976)  (14,979)  (249,455)  (177,806)
    Net changes in working capital (82,211)  (20,886)  (54,851)  (277,636)
    Net cash provided from operating activities$150,252  $520,969  $751,797  $1,252,089 
                    
                    
                    
    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 September 30,  Nine Months Ended September 30, 
      2023   2022   2023   2022 
    Net cash provided from operating activities, as reported$150,252  $520,969  $751,797  $1,252,089 
    Net changes in working capital 82,211   20,886   54,851   277,636 
    Exploration expense 6,658   7,105   18,087   18,540 
    Lawsuit settlements 66   81   938   776 
    Transportation, gathering, processing and compression settlements —   —   —   7,500 
    Non-cash compensation adjustment and other 335   672   383   1,583 
    Cash flow from operations before changes in working capital – non-GAAP measure$239,522  $549,713  $826,056  $1,558,124 
                    
                    
                    
    ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING               
    (Unaudited, in thousands)               
                    
     Three Months Ended September 30,  Nine Months Ended September 30, 
      2023   2022   2023   2022 
    Basic:               
    Weighted average shares outstanding 244,446   245,468   244,179   249,038 
    Stock held by deferred compensation plan (3,108)  (5,700)  (4,724)  (6,188)
    Adjusted basic 241,338   239,768   239,455   242,850 
                    
    Dilutive:               
    Weighted average shares outstanding 244,446   245,468   244,179   249,038 
    Dilutive stock options under treasury method (509)  (445)  (2,035)  (678)
    Adjusted dilutive 243,937   245,023   242,144   248,360 


     
    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 September 30, Nine Months Ended September 30,
      2023   2022   %   2023   2022   % 
    Natural gas, NGL and oil sales components:                       
    Natural gas sales$246,976  $1,053,863      $913,915  $2,593,540     
    NGLs sales 238,211   325,989       695,368   1,039,057     
    Oil sales 41,531   55,300       122,099   191,798     
    Total oil and gas sales, as reported$526,718  $1,435,152   -63% $1,731,382  $3,824,395   -55%
                            
    Derivative fair value income (loss), as reported:$38,394  $(457,708)     $530,095  $(1,636,687)    
    Cash settlements on derivative financial instruments – (gain) loss:                       
    Natural gas (82,472)  449,713       (196,847)  916,518     
    NGLs —   (4,150)      —   18,673     
    Crude Oil 5,030   19,114       8,351   70,331     
    Total change in fair value related to commodity derivatives prior to settlement, a non-GAAP measure$(39,048) $6,969      $341,599  $(631,165)    
                            
    Transportation, gathering, processing and compression components:                       
    Natural gas$142,202  $176,324      $436,912  $513,548     
    NGLs 134,754   146,695       393,281   435,154     
    Oil 251   —       687   11     
    Total transportation, gathering, processing and compression, as reported$277,207  $323,019      $830,880  $948,713     
                            
    Natural gas, NGL and oil sales, including cash-settled derivatives: (c)                       
    Natural gas sales$329,448  $604,150      $1,110,762  $1,677,022     
    NGLs sales 238,211   330,139       695,368   1,020,384     
    Oil sales 36,501   36,186       113,748   121,467     
    Total$604,160  $970,475   -38%  1,919,878   2,818,873   -32%
                            
    Production of oil and gas during the periods (a):                       
    Natural gas (mcf) 133,305,469   136,862,857   -3%  396,367,927   399,834,208   -1%
    NGLs (bbl) 9,748,012   9,235,626   6%  28,368,181   26,473,922   7%
    Oil (bbl) 587,488   653,000   -10%  1,818,773   2,099,630   -13%
    Gas equivalent (mcfe) (b) 195,318,469   196,194,613   0%  577,489,651   571,275,520   1%
                            
    Production of oil and gas – average per day (a):                       
    Natural gas (mcf) 1,448,972   1,487,640   -3%  1,451,897   1,464,594   -1%
    NGLs (bbl) 105,957   100,387   6%  103,913   96,974   7%
    Oil (bbl) 6,386   7,098   -10%  6,662   7,691   -13%
    Gas equivalent (mcfe) (b) 2,123,027   2,132,550   0%  2,115,347   2,092,584   1%
                            
    Average prices, excluding derivative settlements and before third party transportation costs:                       
    Natural gas (mcf)$1.85  $7.70   -76% $2.31  $6.49   -64%
    NGLs (bbl)$24.44  $35.30   -31% $24.51  $39.25   -38%
    Oil (bbl)$70.69  $84.69   -17% $67.13  $91.35   -27%
    Gas equivalent (mcfe) (b)$2.70  $7.31   -63% $3.00  $6.69   -55%
                            
    Average prices, including derivative settlements before third party transportation costs: (c)                       
    Natural gas (mcf)$2.47  $4.41   -44% $2.80  $4.19   -33%
    NGLs (bbl)$24.44  $35.75   -32% $24.51  $38.54   -36%
    Oil (bbl)$62.13  $55.42   12% $62.54  $57.85   8%
    Gas equivalent (mcfe) (b)$3.09  $4.95   -37% $3.32  $4.93   -33%
                            
    Average prices, including derivative settlements and after third party transportation costs: (d)                       
    Natural gas (mcf)$1.40  $3.13   -55% $1.70  $2.91   -42%
    NGLs (bbl)$10.61  $19.86   -47% $10.65  $22.11   -52%
    Oil (bbl)$61.70  $55.41   11% $62.16  $57.85   7%
    Gas equivalent (mcfe) (b)$1.67  $3.30   -49% $1.89  $3.27   -42%
                            
    Transportation, gathering and compression expense per mcfe$1.42  $1.65   -14% $1.44  $1.66   -13%


     (a)Represents volumes sold regardless of when produced.
     (b)Oil and NGLs are converted at the rate of one barrel equals six mcfe based upon the approximate relative energy content of oil to natural gas, which is not necessarily indicative of the relationship of oil and natural gas prices.
     (c)Excluding third party transportation, gathering and compression costs.
     (d)Net of transportation, gathering and compression costs.
       


    RANGE RESOURCES CORPORATION
          
    RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES AS REPORTED TO INCOME BEFORE INCOME TAXES EXCLUDING CERTAIN ITEMS, a non-GAAP measure     
    (Unaudited, in thousands, except per share data)     
     Three Months Ended September 30,  Nine Months Ended September 30, 
      2023   2022   %   2023   2022   % 
                            
    Income from operations before income taxes, as reported$65,128  $432,710   -85% $713,397  $416,007   71%
    Adjustment for certain special items:                       
    Gain on sale of assets (109)  (135)      (353)  (548)    
    Loss (gain) on ARO settlements 1   (8)      1   (8)    
    Change in fair value related to derivatives prior to settlement 39,048   (6,969)      (341,599)  631,165     
    Abandonment and impairment of unproved properties 11,012   3,186       44,308   12,319     
    (Gain) loss on early extinguishment of debt —   —       (439)  69,232     
    Transportation, gathering, processing and compression settlements —   —       —   7,500     
    Lawsuit settlements 66   81       938   776     
    Exit costs 10,684   11,065       71,661   58,249     
    Brokered natural gas and marketing – stock-based compensation 483   663       1,604   1,868     
    Direct operating – stock-based compensation 439   372       1,280   1,083     
    Exploration expenses – stock-based compensation 312   393       935   1,163     
    General & administrative – stock-based compensation 8,446   10,402       26,461   32,245     
    Deferred compensation plan – adjustment 8,997   5,795       29,546   59,917     
                            
    Income before income taxes, as adjusted 144,507   457,555   -68%  547,740   1,290,968   -58%
                            
    Income tax expense, as adjusted                       
    Current (a) 601   6,981       3,000   20,732     
    Deferred (a) 32,636   114,389       122,981   322,742     
                            
    Net income excluding certain items, a non-GAAP measure$111,270  $336,185   -67% $421,759  $947,494   -55%
                            
    Non-GAAP income per common share                       
    Basic$0.46  $1.40   -67% $1.76  $3.90   -55%
    Diluted$0.46  $1.37   -66% $1.74  $3.82   -54%
                            
    Non-GAAP diluted shares outstanding, if dilutive 243,937   245,023       242,144   248,360     


     (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 ADJUSTMENT EARNINGS PER SHARE, non-GAAP measures               
    (In thousands, except per share data)               
     Three Months Ended September 30,  Nine Months Ended September 30, 
      2023   2022   2023   2022 
                    
    Net income, as reported$49,430  $373,087  $561,108  $369,134 
    Adjustment for certain special items:               
    Gain on sale of assets (109)  (135)  (353)  (548)
    Loss (gain) on ARO settlements 1   (8)  1   (8)
    (Gain) loss on early extinguishment of debt —   —   (439)  69,232 
    Change in fair value related to derivatives prior to settlement 39,048   (6,969)  (341,599)  631,165 
    Transportation, gathering, processing and compression settlements —   —   —   7,500 
    Abandonment and impairment of unproved properties 11,012   3,186   44,308   12,319 
    Lawsuit settlements 66   81   938   776 
    Exit costs 10,684   11,065   71,661   58,249 
    Stock-based compensation 9,680   11,830   30,280   36,359 
    Deferred compensation plan 8,997   5,795   29,546   59,917 
    Tax impact (17,539)  (61,747)  26,308   (296,601)
                    
    Net income excluding certain items, a non-GAAP measure$111,270  $336,185  $421,759  $947,494 
                    
    Net income per diluted share, as reported$0.20  $1.49  $2.27  $1.45 
    Adjustment for certain special items per diluted share:               
    Gain on sale of assets (0.00)  (0.00)  (0.00)  (0.00)
    Loss (gain) on ARO settlements 0.00   (0.00)  0.00   (0.00)
    (Gain) loss on early extinguishment of debt —   —   (0.00)  0.28 
    Change in fair value related to derivatives prior to settlement 0.16   (0.03)  (1.41)  2.54 
    Transportation, gathering, processing and compression settlements —   —   —   0.03 
    Abandonment and impairment of unproved properties 0.05   0.01   0.18   0.05 
    Lawsuit settlements 0.00   0.00   0.00   0.00 
    Exit costs 0.04   0.05   0.30   0.23 
    Stock-based compensation 0.04   0.05   0.13   0.15 
    Deferred compensation plan 0.04   0.02   0.12   0.24 
    Adjustment for rounding differences —   —   —   0.01 
    Tax impact (0.07)  (0.25)  0.11   (1.19)
    Dilutive share impact (rabbi trust and other) —   0.03   0.04   0.03 
                    
    Net income per diluted share, excluding certain items, a non-GAAP measure$0.46  $1.37  $1.74  $3.82 
                    
    Adjusted earnings per share, a non-GAAP measure:               
    Basic$0.46  $1.40  $1.76  $3.90 
    Diluted$0.46  $1.37  $1.74  $3.82 


     
    RANGE RESOURCES CORPORATION
                    
    RECONCILIATION OF CASH MARGIN PER MCFE, a non-GAAP measure               
    (Unaudited, in thousands, except per unit data)               
     Three Months Ended September 30,  Nine Months Ended September 30, 
      2023   2022   2023   2022 
                    
    Revenues               
    Natural gas, NGL and oil sales, as reported$526,718  $1,435,152  $1,731,382  $3,824,395 
    Derivative fair value income (loss), as reported 38,394   (457,708)  530,095   (1,636,687)
    Less non-cash fair value loss (gain) 39,048   (6,969)  (341,599)  631,165 
    Brokered natural gas and marketing and other, as reported 44,612   133,101   171,584   328,716 
    Less ARO settlement 1   (8)  1   (8)
    Cash revenues 648,773   1,103,568   2,091,463   3,147,581 
                    
    Expenses               
    Direct operating, as reported 22,562   21,290   73,442   61,628 
    Less direct operating stock-based compensation (439)  (372)  (1,280)  (1,083)
    Transportation, gathering and compression, as reported 277,207   323,019   830,880   948,713 
    Less transportation, gathering and compression settlements —   —   —   (7,500)
    Taxes other than income, as reported 4,756   9,057   19,643   24,189 
    Brokered natural gas and marketing, as reported 46,206   127,285   158,074   330,517 
    Less brokered natural gas and marketing stock-based compensation (483)  (663)  (1,604)  (1,868)
    General and administrative, as reported 38,093   40,568   120,765   126,013 
    Less G&A stock-based compensation (8,446)  (10,402)  (26,461)  (32,245)
    Less lawsuit settlements (66)  (81)  (938)  (776)
    Interest expense, as reported 30,599   38,736   93,918   127,912 
    Less amortization of deferred financing costs (1,339)  (1,563)  (4,032)  (6,775)
    Cash expenses 408,650   546,874   1,262,407   1,568,725 
                    
    Cash margin, a non-GAAP measure$240,123  $556,694  $829,056  $1,578,856 
                    
    Mmcfe produced during period 195,319   196,195   577,490   571,276 
                    
    Cash margin per mcfe$1.23  $2.84  $1.44  $2.76 
                    
                    
    RECONCILIATION OF INCOME BEFORE INCOME TAXES TO CASH MARGIN               
    (Unaudited, in thousands, except per unit data)               
     Three Months Ended September 30,  Nine Months Ended September 30, 
      2023   2022   2023   2022 
                    
    Income before income taxes, as reported$65,128  $432,710  $713,397  $416,007 
    Adjustments to reconcile income before income taxes to cash margin:               
    ARO settlements 1   (8)  1   (8)
    Derivative fair value (income) loss (38,394)  457,708   (530,095)  1,636,687 
    Net cash receipts (payments) on derivative settlements 77,442   (464,677)  188,496   (1,005,522)
    Transportation, gathering and compression settlements —   —   —   7,500 
    Exploration expense 6,658   7,105   18,087   18,540 
    Lawsuit settlements 66   81   938   776 
    Exit costs 10,684   11,065   71,661   58,249 
    Deferred compensation plan 8,997   5,795   29,546   59,917 
    Stock-based compensation (direct operating, brokered natural gas and marketing, general and administrative and termination costs) 9,680   11,830   30,280   36,359 
    Interest – amortization of deferred financing costs 1,339   1,563   4,032   6,775 
    Depletion, depreciation and amortization 87,619   90,471   259,197   262,573 
    Gain on sale of assets (109)  (135)  (353)  (548)
    (Gain) loss on early extinguishment of debt —   —   (439)  69,232 
    Abandonment and impairment of unproved properties 11,012   3,186   44,308   12,319 
    Cash margin, a non-GAAP measure$240,123  $556,694  $829,056  $1,578,856 



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