• Range Announces First Quarter 2023 Results

    Source: Nasdaq GlobeNewswire / 24 Apr 2023 16:35:01   America/New_York

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

    First Quarter 2023 Highlights –

    • Cash flow from operating activities of $475 million
    • Cash flow from operations, before working capital changes, of $400 million
    • Capital spending was $152 million, approximately 26% of the 2023 budget
    • Repurchased 400,000 shares at an average of $24.16 per share
    • Accumulated cash balance of $228 million
    • Price realizations including hedges of $4.00 per mcfe – premium of $0.54 over NYMEX natural gas
    • NGL realizations of $27.60 per barrel – premium of $1.63 over Mont Belvieu equivalent
    • Natural gas differentials, including basis hedging, averaged ($0.14) per mcf to NYMEX
    • Production averaged 2.14 Bcfe per day, approximately 70% natural gas

    Commenting on the quarter, Jeff Ventura, the Company’s CEO said, “Today, Range is in the best operational and financial shape in Company history and the future of the Marcellus is bright as we sit at the very low end of the global cost curve with one of the lowest emissions intensities of any play. Range’s multi-decade inventory, efficient operations and access to diversified markets place our business in a desirable position to deliver significant long-term value and competitive returns to shareholders. The Range team remains focused on efficiently developing our Marcellus assets to bring that value to shareholders and I believe our first quarter results demonstrate continued success in achieving corporate objectives.”  

    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.

    First Quarter 2023 Results

    GAAP revenues for first quarter 2023 totaled $1.2 billion, GAAP net cash provided from operating activities (including changes in working capital) was $475 million, and GAAP net income was $481 million ($1.95 per diluted share).  First quarter earnings results include a $368 million mark-to-market derivative gain due to decreases in commodity prices.

    Non-GAAP revenues for first quarter 2023 totaled $853 million, and cash flow from operations before changes in working capital, a non-GAAP measure, was $400 million.  Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $239 million ($0.99 per diluted share) in first quarter 2023.

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

    Expenses 1Q 2023
    (per mcfe)    		 1Q 2022
    (per mcfe)    		   Increase
    (Decrease)
             
    Direct operating(a) $0.14 $0.11  27% 
    Transportation, gathering,
    processing and compression(a)    		  1.48  1.60  (8%) 
    Taxes other than income  0.04  0.04  0% 
    General and administrative(a)  0.17  0.17  0% 
    Interest expense(a)  0.16  0.24  (33%) 
    Total cash unit costs(b)       1.99       2.15  (7%) 
    Depletion, depreciation and
    amortization (DD&A)    		  0.45  0.46  (2%) 
    Total unit costs plus DD&A(b) $ 2.44 $ 2.61  (7%) 

    (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 first quarter 2023(a):

     1Q23 Production & Realized Pricing
      Natural Gas
    (Mcf)

    		 Oil (Bbl)

    		 NGLs
    (Bbl)

    		 Natural Gas
    Equivalent
    (Mcfe)

        
             
    Net production per day  1,484,956   6,367   103,219  2,142,475
             
    Average NYMEX price $3.46  $76.07  $25.97  
    Differential, including basis hedging  (0.14)  (9.30)  1.63  
    Realized prices before NYMEX hedges  3.32       66.77   27.60  3.83
    Settled NYMEX hedges  0.26   (3.81)      —  0.17
    Average realized prices after hedges $ 3.58  $ 62.96  $ 27.60 $ 4.00

    (a)   Totals may not be exact due to rounding

    First quarter 2023 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $4.00 per mcfe.

    • The average natural gas price, including the impact of basis hedging, was $3.32 per mcf, or a ($0.14) per mcf differential to NYMEX. The Company continues to expect an average 2023 natural gas differential versus NYMEX to be within a range of ($0.35) to ($0.45) per mcf.

    • Range’s pre-hedge NGL price for 1Q was $27.60 per barrel, approximately $1.63 above the Mont Belvieu weighted equivalent.

    • Crude oil and condensate price realizations, before realized hedges, averaged $66.77 per barrel, or $9.30 below WTI (West Texas Intermediate). Range continues to expect the 2023 condensate differential to average $9.00-$13.00 below WTI.

    Share Buyback and Financial Position

    During the first quarter, Range purchased 400,000 shares at an average price of approximately $24.16 per share. Range currently has approximately 241 million shares outstanding and $1.1 billion of availability on the share repurchase program.

    As of March 31, 2023, Range had net debt outstanding of approximately $1.62 billion, consisting of $1.85 billion of senior notes and $228 million in cash.

    Capital Expenditures and Operational Activity

    First quarter 2023 drilling and completion expenditures were $139 million. In addition, during the quarter, approximately $12 million was invested in acreage leasehold and gathering systems. First quarter capital spending represented approximately 26% of Range’s total capital budget in 2023.
      
    The table below summarizes expected 2023 activity regarding the number of wells to sales in each area.  

       Wells TIL
    1Q 2023    		 2023
    Planned TIL    		 Remaining
    2023
    SW PA Super-Rich  2 3 1
    SW PA Wet  3 31 28
    SW PA Dry  4 24 20
    NE PA Dry  0 3 3
    Total Wells  9 61 52

    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:$1.48 - $1.58 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:$8 - $10 million

    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 $0.35 to $0.45
    FY 2023 Natural Gas Liquids (including ethane):(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 Marcellus and other basis differentials for natural gas to limit volatility between benchmark and regional prices. The combined fair value of natural gas basis hedges as of March 31, 2023, was a net loss of $50.3 million.

    Conference Call Information

    A conference call to review the financial results is scheduled on Tuesday, April 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 May 25th.

    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 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 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 March 31,
      2023   2022   % 
    Revenues and other income:           
    Natural gas, NGLs and oil sales (a)$736,282  $1,032,351     
    Derivative fair value income (loss) 367,967   (939,057)    
    Brokered natural gas, marketing and other (b) 77,417   87,423     
    Other (b) 4,694   19     
    Total revenues and other income 1,186,360   180,736   556%
                
    Costs and expenses:           
    Direct operating 26,569   19,939     
    Direct operating – stock-based compensation (c) 415   349     
    Transportation, gathering, processing and compression 285,483   297,787     
    Taxes other than income   7,894   7,079     
    Brokered natural gas and marketing 66,407   92,604     
    Brokered natural gas and marketing – stock-based
       compensation (c)    		 661   519     
    Exploration 4,284   4,247     
    Exploration – non-cash stock-based compensation (c) 320   452     
    Abandonment and impairment of unproved properties 7,510   1,996     
    General and administrative 33,422   30,473     
    General and administrative – stock-based compensation (c) 9,600   11,573     
    General and administrative – lawsuit settlements 124   491     
    Exit costs 12,323   11,115     
    Deferred compensation plan (d) 9,396   73,343     
    Interest expense 30,857   45,101     
    Interest expense – amortization of deferred financing costs (e) 1,345   2,074     
    Loss on early extinguishment of debt —   69,210     
    Depletion, depreciation and amortization 86,562   85,604     
    Gain on sale of assets (138)  (331)    
    Total costs and expenses 583,034   753,625   -23%
                
    Income (loss) before income taxes 603,326   (572,889)  205%
                
    Income tax expense (benefit):           
    Current 2,699   4,751     
    Deferred 119,180   (120,832)    
      121,879   (116,081)    
                
    Net income (loss)$481,447  $(456,808)  205%
                
    Net Income (Loss) Per Common Share:           
    Basic$1.98  $(1.86)    
    Diluted$1.95  $(1.86)    
                
    Weighted average common shares outstanding, as reported:           
    Basic 238,019   245,350   -3%
    Diluted 240,882   245,350   -2%

    (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) March 31,   December 31, 
      2023   2022 
      (Unaudited)   (Audited) 
    Assets       
    Current assets$546,235  $538,662 
    Derivative assets 231,381   41,915 
    Natural gas and oil properties, successful efforts method 5,950,245   5,890,404 
    Transportation and field assets 2,087   2,434 
    Operating lease right-of-use assets 67,608   84,070 
    Other 84,711   68,077 
     $6,882,267  $6,625,562 
            
    Liabilities and Stockholders’ Equity       
    Current liabilities$736,311  $864,678 
    Asset retirement obligations 4,570   4,570 
    Derivative liabilities 16,019   151,417 
            
    Bank debt —   9,509 
    Senior notes 1,833,238   1,832,451 
    Total long-term debt 1,833,238   1,841,960 
            
    Deferred tax liability 452,753   333,571 
    Derivative liabilities 6,861   15,495 
    Deferred compensation liability 103,711   99,907 
    Operating lease liabilities 18,953   20,903 
    Asset retirement obligations and other liabilities 114,662   112,981 
    Divestiture contract obligation 289,734   304,074 
            
    Common stock and retained deficit 3,742,451   3,305,198 
    Other comprehensive income 476   467 
    Common stock held in treasury (437,472)  (429,659)
    Total stockholders’ equity 3,305,455   2,876,006 
     $6,882,267  $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 March 31,
      2023   2022   % 
                
    Total revenues and other income, as reported$1,186,360  $180,736   556%
    Adjustment for certain special items:           
    Total change in fair value related to derivatives prior to settlement (gain) loss (333,499)  805,922     
    Total revenues, as adjusted, non-GAAP$852,861  $986,658   -14%

    RANGE RESOURCES CORPORATION

    CASH FLOWS FROM OPERATING ACTIVITIES       
    (Unaudited in thousands)       
            
     Three Months Ended March 31, 
      2023   2022 
            
    Net income (loss)$481,447  $(456,808)
    Adjustments to reconcile net cash provided from continuing operations:       
    Deferred income tax expense (benefit) 119,180   (120,832)
    Depletion, depreciation, amortization and impairment 86,562   85,604 
    Abandonment and impairment of unproved properties 7,510   1,996 
    Derivative fair value (income) loss (367,967)  939,057 
    Cash settlements on derivative financial instruments 34,468   (133,135)
    Divestiture contract obligation 12,215   10,954 
    Amortization of deferred issuance costs and other 1,310   1,965 
    Deferred and stock-based compensation 20,681   86,113 
    Gain on sale of assets and other (138)  (331)
    Loss on early extinguishment of debt —   69,210 
            
    Changes in working capital:       
    Accounts receivable 225,213   58,674 
    Prepaid and other (5,335)  (5,908)
    Accounts payable (10,822)  51,996 
    Accrued liabilities and other (129,368)  (182,141)
    Net changes in working capital 79,688   (77,379)
    Net cash provided from operating activities$474,956  $406,414 
            
            
            
    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 March 31,
      2023   2022 
    Net cash provided from operating activities, as reported$474,956  $406,414 
    Net changes in working capital (79,688)  77,379 
    Exploration expense 4,284   4,247 
    Lawsuit settlements 124   491 
    Non-cash compensation adjustment and other (146)  393 
    Cash flow from operations before changes in working capital – non-GAAP measure$399,530  $488,924 
            
            
            
    ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING       
    (Unaudited, in thousands)       
            
     Three Months Ended March 31,
      2023   2022 
    Basic:       
    Weighted average shares outstanding 243,667   251,561 
    Stock held by deferred compensation plan (5,648)  (6,211)
    Adjusted basic 238,019   245,350 
            
    Dilutive:       
    Weighted average shares outstanding 243,667   251,561 
    Dilutive stock options under treasury method (2,785)  (6,211)
    Adjusted dilutive 240,882   245,350 
            
            


    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 March 31, 
      2023   2022   % 
    Natural gas, NGL and oil sales components:           
    Natural gas sales$441,580  $629,923     
    NGL sales 256,440   338,369     
    Oil sales 38,262   64,059     
    Total oil and gas sales, as reported$736,282  $1,032,351   -29%
                
    Derivative fair value income (loss), as reported:$367,967  $(939,057)    
    Cash settlements on derivative financial instruments – (gain) loss:           
    Natural gas (36,650)  99,458     
    NGLs —   12,318     
    Crude Oil 2,182   21,359     
    Total change in fair value related to commodity derivatives prior to settlement, a non-GAAP measure$333,499  $(805,922)    
                
    Transportation, gathering, processing and compression components:           
    Natural gas$152,589  $160,436     
    NGLs 132,712   137,340     
    Oil 182   11     
    Total transportation, gathering, processing and compression, as reported$285,483  $297,787     
                
    Natural gas, NGL and oil sales, including cash-settled derivatives: (c)           
    Natural gas sales$478,230  $530,465     
    NGL sales 256,440   326,051     
    Oil sales 36,080   42,700     
    Total$770,750  $899,216   -14%
                
    Production of oil and gas during the periods: (a)           
    Natural gas (mcf) 133,646,064   131,250,337   2%
    NGL (bbl) 9,289,739   8,453,445   10%
    Oil (bbl) 573,036   730,462   -22%
    Gas equivalent (mcfe) (b) 192,822,714   186,353,779   3%
                
    Production of oil and gas – average per day: (a)           
    Natural gas (mcf) 1,484,956   1,458,337   2%
    NGL (bbl) 103,219   93,927   10%
    Oil (bbl) 6,367   8,116   -22%
    Gas equivalent (mcfe) (b) 2,142,475   2,070,598   3%
                
    Average prices, excluding derivative settlements and before third party
    transportation costs:    		           
    Natural gas (mcf)$3.30  $4.80   -31%
    NGL (bbl)$27.60  $40.03   -31%
    Oil (bbl)$66.77  $87.70   -24%
    Gas equivalent (mcfe) (b)$3.82  $5.54   -31%
                
    Average prices, including derivative settlements before third party
    transportation costs: (c)    		           
    Natural gas (mcf)$3.58  $4.04   -11%
    NGL (bbl)$27.60  $38.57   -28%
    Oil (bbl)$62.96  $58.46   8%
    Gas equivalent (mcfe) (b)$4.00  $4.83   -17%
                
    Average prices, including derivative settlements and after third party
    transportation costs: (d)    		           
    Natural gas (mcf)$2.44  $2.82   -14%
    NGL (bbl)$13.32  $22.32   -40%
    Oil (bbl)$62.64  $58.44   7%
    Gas equivalent (mcfe) (b)$2.52  $3.23   -22%
                
    Transportation, gathering and compression expense per mcfe$1.48  $1.60   -7%

    (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 March 31, 
      2023   2022   % 
                
    Income (loss) from operations before income taxes, as reported$603,326  $(572,889)  205%
    Adjustment for certain special items:           
    Gain on sale of assets (138)  (331)    
    Change in fair value related to derivatives prior to settlement (333,499)  805,922     
    Abandonment and impairment of unproved properties 7,510   1,996     
    Loss on early extinguishment of debt —   69,210     
    Lawsuit settlements 124   491     
    Exit costs 12,323   11,115     
    Brokered natural gas and marketing – non-cash stock-based
    compensation    		 661   519     
    Direct operating – non-cash stock-based compensation 415   349     
    Exploration expenses – non-cash stock-based compensation 320   452     
    General & administrative – non-cash stock-based compensation 9,600   11,573     
    Deferred compensation plan – non-cash adjustment 9,396   73,343     
                
    Income before income taxes, as adjusted 310,038   401,750   -23%
                
    Income tax expense, as adjusted           
    Current 2,699   4,751     
    Deferred (a) 68,610   100,438     
    Net income excluding certain items, a non-GAAP measure$238,729  $296,562   -20%
                
    Non-GAAP income per common share           
    Basic$1.00  $1.21   -17%
    Diluted$0.99  $1.18   -16%
                
    Non-GAAP diluted shares outstanding, if dilutive 240,882   251,132     
                

    (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 (LOSS), EXCLUDING
    CERTAIN ITEMS AND ADJUSTED EARNINGS PER SHARE, non-GAAP measures    		       
    (In thousands, except per share data)       
     Three Months Ended
    March 31,    		 
      2023   2022 
            
    Net income (loss), as reported$481,447  $(456,808)
    Adjustment for certain special items:       
    Gain on sale of assets (138)  (331)
    Loss on early extinguishment of debt —   69,210 
    Change in fair value related to derivatives prior to settlement (333,499)  805,922 
    Abandonment and impairment of unproved properties 7,510   1,996 
    Lawsuit settlements 124   491 
    Exit costs 12,323   11,115 
    Non-cash stock-based compensation 10,996   12,893 
    Deferred compensation plan 9,396   73,343 
    Tax impact 50,570   (221,269)
            
    Net income excluding certain items, a non-GAAP measure$238,729  $296,562 
            
    Net income (loss) per diluted share, as reported$1.95  $(1.86)
    Adjustment for certain special items per diluted share:       
    Gain on sale of assets (0.00)  (0.00)
    Loss on early extinguishment of debt —   0.28 
    Change in fair value related to derivatives prior to settlement (1.38)  3.21 
    Abandonment and impairment of unproved properties 0.03   0.01 
    Lawsuit settlements 0.00   0.00 
    Exit costs 0.05   0.04 
    Non-cash stock-based compensation 0.05   0.05 
    Deferred compensation plan 0.04   0.29 
    Tax impact 0.21   (0.88)
    Dilutive share impact (rabbi trust and other) 0.04   0.04 
            
    Net income per diluted share, excluding certain items, a non-
          GAAP measure    		$0.99  $1.18 
            
    Adjusted earnings per share, a non-GAAP measure:       
    Basic$1.00  $1.21 
    Diluted$0.99  $1.18 
            

    RANGE RESOURCES CORPORATION

    RECONCILIATION OF CASH MARGIN PER MCFE, a non-GAAP measure       
    (Unaudited, in thousands, except per unit data)       
     Three Months Ended
    March 31,    		 
      2023   2022 
            
    Revenues       
    Natural gas, NGL and oil sales, as reported$736,282  $1,032,351 
    Derivative fair value income (loss), as reported 367,967   (939,057)
    Less non-cash fair value (gain) loss (333,499)  805,922 
    Brokered natural gas and marketing and other, as reported 82,111   87,442 
    Less ARO settlement and other (gains) losses (4,694)  (19)
    Cash revenue applicable to production 848,167   986,639 
            
    Expenses       
    Direct operating, as reported 26,984   20,288 
    Less direct operating stock-based compensation (415)  (349)
    Transportation, gathering and compression, as reported 285,483   297,787 
    Taxes other than income, as reported 7,894   7,079 
    Brokered natural gas and marketing, as reported 67,068   93,123 
    Less brokered natural gas and marketing stock-based
    compensation    		 (661)  (519)
    General and administrative, as reported 43,146   42,537 
    Less G&A stock-based compensation (9,600)  (11,573)
    Less lawsuit settlements (124)  (491)
    Interest expense, as reported 32,202   47,175 
    Less amortization of deferred financing costs (1,345)  (2,074)
    Cash expenses 450,632   492,983 
            
    Cash margin, a non-GAAP measure$397,535  $493,656 
            
    Mmcfe produced during period 192,823   186,354 
            
    Cash margin per mcfe$2.06  $2.65 
            
            
    RECONCILIATION OF INCOME BEFORE INCOME TAXES TO CASH MARGIN       
    (Unaudited, in thousands, except per unit data)       
     Three Months Ended
    March 31,    		 
      2023   2022 
            
    Income (loss) before income taxes, as reported$603,326  $(572,889)
    Adjustments to reconcile income before income taxes to
    cash margin:    		       
    ARO settlements and other gains (4,694)  (19)
    Derivative fair value (income) loss (367,967)  939,057 
    Net cash receipts (payments) on derivative settlements 34,468   (133,135)
    Exploration expense 4,284   4,247 
    Lawsuit settlements 124   491 
    Exit costs 12,323   11,115 
    Deferred compensation plan 9,396   73,343 
    Stock-based compensation (direct operating, brokered natural gas
    and marketing, general and administrative and termination costs)    		 10,996   12,893 
    Interest – amortization of deferred financing costs 1,345   2,074 
    Depletion, depreciation and amortization 86,562   85,604 
    Gain on sale of assets (138)  (331)
    Loss on early extinguishment of debt —   69,210 
    Abandonment and impairment of unproved properties 7,510   1,996 
    Cash margin, a non-GAAP measure$397,535  $493,656 


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