3 unchanged sentences
(In thousands, except per share data)
+Added: September 30,
Current assets:
31 unchanged sentences
Common stock, $ 0.01 par, 475,000,000 shares authorized, 262,886,690 issued at
−Removed: June 30, 2022 and 259,795,554 issued at December 31, 2021
−Removed: Common stock held in treasury, 14,601,535 shares at June 30, 2022 and 10,002,646
+Added: September 30, 2022 and 259,795,554 issued at December 31, 2021
+Added: Common stock held in treasury, 20,603,035 shares at September 30, 2022 and 10,002,646
shares at December 31, 2021
Additional paid-in capital
−Removed: Accumulated other comprehensive loss
+Added: Accumulated other comprehensive income (loss)
Retained deficit
−Removed: Total stockholders’
+Added: Total stockholders' equity
Total liabilities and stockholders’
3 unchanged sentences
(Unaudited, in thousands, except per share data)
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
Revenues and other income:
20 unchanged sentences
Net income (loss) per common share:
+Added: Dividends declared per share
Weighted average common shares outstanding:
3 unchanged sentences
(Unaudited, in thousands)
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
Net income (loss)
8 unchanged sentences
(Unaudited, in thousands)
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
Operating activities:
+Added: Net income (loss)
Adjustments to reconcile net loss to net cash provided from operating activities:
−Removed: Deferred income tax (benefit) expense
+Added: Deferred income tax expense (benefit)
Depletion, depreciation and amortization and impairment of proved properties
27 unchanged sentences
Repayment of senior or senior subordinated notes
+Added: Dividends paid
Treasury stock purchases
13 unchanged sentences
comprehensive
+Added: (loss) income
Balance as of December 31, 2021
11 unchanged sentences
Balance as of June 30, 2022
+Added: Issuance of common stock
+Added: Cash dividends paid
+Added: ($ 0.08 per share)
+Added: Stock-based compensation
+Added: Treasury stock
+Added: Other comprehensive income
+Added: Balance as of September 30, 2022
The accompanying notes are an integral part of these consolidated financial statements.
19 unchanged sentences
Balance as of June 30, 2021
+Added: Issuance of common stock
+Added: Stock-based compensation
+Added: Treasury stock
+Added: Other comprehensive income
+Added: Balance as of September 30, 2021
The accompanying notes are an integral part of these consolidated financial statements.
11 unchanged sentences
These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2021 Annual Report on Form 10-K filed with the SEC on February 22, 2022.
−Removed: The results of operations for the second quarter and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year.
+Added: The results of operations for third quarter and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year.
(3) NEW ACCOUNTING STANDARDS
Not Yet Adopted
−Removed: No accounting standards were adopted in second quarter or six months ended June 30, 2022 that had a material impact on our consolidated financial statements.
+Added: No accounting standards were adopted in third quarter or nine months ended September 30, 2022 that had a material impact on our consolidated financial statements.
(4) REVENUES FROM CONTRACTS WITH CUSTOMERS
3 unchanged sentences
Brokered revenue attributable to each product sales type is included here because the volume of product that we purchase is subsequently sold to separate counterparties in accordance with existing sales contracts under which we also sell our production.
−Removed: Accounts receivable attributable to our revenue contracts with customers was $ 601.7 million at June 30, 2022 and $ 460.2 million at December 31, 2021.
+Added: Accounts receivable attributable to our revenue contracts with customers was $ 624.5 million at September 30, 2022 and $ 460.2 million at December 31, 2021.
Revenue attributable to each of our identified revenue streams is disaggregated below (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Natural gas sales
3 unchanged sentences
Other marketing revenue (1)
−Removed: (1) The six months ended June 30, 2021 includes $ 8.8 million received as part of a capacity release agreement.
+Added: (1) The nine months ended September 30, 2021 includes $ 8.8 million received as part of a capacity release agreement.
(5) INCOME TAXES
3 unchanged sentences
Income taxes for discrete items are computed and recorded in the period that a specific transaction occurs.
−Removed: For the three months and six months ended June 30, 2022 and 2021, our overall effective tax rate was different than the federal statutory rate due primarily to state income taxes, equity compensation, valuation allowances and other tax items.
+Added: For three months and nine months ended September 30, 2022 and 2021, our overall effective tax rate was different than the federal statutory rate due primarily to state income taxes, equity compensation, valuation allowances and other tax items.
Current income taxes reflect estimated state income taxes due for 2022 which is based on our estimated earnings, taking into account state tax rates and laws regarding NOL limitations.
−Removed: We continue to evaluate the realizability of federal and state deferred tax assets and based upon significant increases in commodity prices and other positive evidence, we released a portion of our federal and state valuation allowances in first six months 2022.
−Removed: On July 12, 2022, the commonwealth of Pennsylvania enacted legislation to reduce the corporate income tax rate over a series of years.
−Removed: We are currently evaluating the impact of this new corporate income tax rate.
+Added: We continue to evaluate the realizability of federal and state deferred tax assets and based upon significant increases in commodity prices and other positive evidence, we released a portion of our federal and state valuation allowances in first nine months 2022.
+Added: On July 12, 2022, the Commonwealth of Pennsylvania enacted legislation to reduce the corporate income tax rate from 9.99 % to 8.99 % in 2023 and continue to reduce that rate by 0.5 % per year beginning in 2024 and declining to 4.99 % in 2031 and thereafter.
+Added: We have evaluated the impact of this new corporate income tax rate and in third quarter 2022, we recorded a $ 20.7 million tax benefit.
(6) INCOME (LOSS) PER COMMON SHARE
3 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Net income (loss), as reported
9 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Weighted average common shares outstanding –
3 unchanged sentences
Weighted average common shares outstanding –
−Removed: Weighted average common shares outstanding-basic for second quarter 2022 excludes 6.7 million shares of restricted stock held in our deferred compensation plan compared to 7.1 million shares in second quarter 2021 (although all awards are issued and outstanding upon grant).
−Removed: Weighted average common shares outstanding-basic for first six months 2022 excludes 6.4 million shares of restricted stock compared to 6.6 million for first six months 2021.
−Removed: For the three months ended June 30, 2022, equity grants of 2,000 shares were outstanding but not included in the computation of diluted net income because the grant prices were greater than the average market price of the common shares and would be anti-dilutive to the computations.
−Removed: Due to our net loss for second quarter 2021 and in both the first six months 2022 and 2021, we excluded all equity grants from the computation of net loss per share because the effect would have been anti-dilutive to the computations.
+Added: Weighted average common shares outstanding-basic for third quarter 2022 excludes 5.7 million shares of restricted stock held in our deferred compensation plan compared to 6.5 million shares in third quarter 2021 (although all awards are issued and outstanding upon grant).
+Added: Weighted average common shares outstanding-basic for first nine months 2022 excludes 6.2 million shares of restricted stock compared to 6.6 million for first nine months 2021.
+Added: For the three months ended September 30, 2022, equity grants of 2,000 shares and for the first nine months 2022, 3,000 shares were outstanding but not included in the computation of diluted net income because the grant prices were greater than the average market price of the common shares and would be anti-dilutive to the computations.
+Added: Due to our net loss for third quarter 2021 and first nine months 2021, we excluded all equity grants from the computation of net loss per share because the effect would have been anti-dilutive to the computations.
(7) Capitalized Costs and Accumulated Depreciation, Depletion and Amortization (a)
+Added: September 30,
(in thousands)
7 unchanged sentences
We had the following debt outstanding as of the dates shown below.
−Removed: No interest was capitalized during the three or six months ended June 30, 2022 or the year ended December 31, 2021 (in thousands).
+Added: No interest was capitalized during nine months ended September 30, 2022 or the year ended December 31, 2021 (in thousands).
+Added: September 30,
Senior notes:
15 unchanged sentences
The bank credit facility also provides for a borrowing base subject to periodic redeterminations and for event-driven unscheduled redeterminations.
−Removed: As of June 30, 2022, our bank group was composed of seventeen financial institutions.
+Added: As of September 30, 2022, our bank group was composed of seventeen financial institutions.
The borrowing base may be increased or decreased based on our request and sufficient proved reserves, as determined by the bank group.
3 unchanged sentences
We may elect, from time to time, to convert all or any part of our SOFR loans to base rate loans or to convert all or any of the base rate loans to SOFR loans.
−Removed: The weighted average interest rate was 4.1 % for second quarter 2022 compared to 2.0 % for second quarter 2021.
−Removed: The weighted average interest rate was 3.4 % for first six months 2022 compared to 2.1 % for first six months 2021.
+Added: The weighted average interest rate was 5.7 % for third quarter 2022 compared to 2.0 % for third quarter 2021.
+Added: The weighted average interest rate was 3.7 % for first nine months 2022 compared to 2.1 % for first nine months 2021.
A commitment fee is paid on the undrawn balance based on an annual rate of 0.30 % to 0.375 %.
−Removed: At June 30, 2022, the commitment fee was 0.37 % and the interest rate margin was 1.75 % on our SOFR loans and 0.75 % on our ABR loans.
−Removed: On June 30, 2022, bank commitments totaled $ 1.5 billion and we had $ 1.0 million outstanding on our bank credit facility.
+Added: At September 30, 2022, the commitment fee was 0.30 % and the interest rate margin was 1.75 % on our SOFR loans and 0.75 % on our ABR loans.
+Added: As part of our redetermination completed September 2022, our borrowing base was reaffirmed for $ 3.0 billion and our bank commitment was also reaffirmed at $ 1.5 billion.
+Added: On September 30, 2022, we had no outstanding borrowings on our bank credit facility.
Additionally, we had $ 330.5 million of undrawn letters of credit, leaving $ 1.2 billion of committed borrowing capacity available under the facility.
14 unchanged sentences
We recognized a loss on early extinguishment of debt in first quarter 2022 of $ 69.2 million which represents expensing of the remaining deferred financing costs and the call premium costs.
+Added: Senior Note Redemption
If we experience a change of control, noteholders may require us to repurchase all or a portion of our senior notes at 101 % of the aggregate principal amount plus accrued and unpaid interest, if any.
−Removed: During second quarter 2022, we retired our 5.00% senior notes due 2022 and our 5.875% senior notes due 2022.
+Added: During second quarter 2022, we retired our 5.00% senior notes due 2022 and our 5.875% senior notes due 2022 on their maturity date.
+Added: We currently intend to retire our outstanding long-term debt as it matures, is callable or when market conditions are favorable to repurchase in the open market.
+Added: In September 2022, we purchased in the open market $ 3.8 million aggregate principal amount of our 5.00 % senior notes due 2023 with no gain or loss recognized.
Range is a holding company that owns no operating assets and has no significant operations independent of its subsidiaries.
5 unchanged sentences
Debt Covenants
−Removed: Our bank credit facility contains negative covenants that limit our ability, among other things, to pay cash dividends, incur additional indebtedness, sell assets, enter into certain hedging contracts, change the nature of our business or operations, merge, consolidate or make certain investments.
−Removed: We are required to maintain maximum consolidated debt to EBITDAX ratio (as defined in the bank credit facility agreement) of 3.75 x and a minimum current ratio of 1.0 x (as defined in the bank credit facility agreement).
−Removed: We were in compliance with applicable covenants under the bank credit facility at June 30, 2022.
+Added: Our bank credit facility contains negative covenants that limit our ability, among other things, to pay cash dividends, incur additional indebtedness, sell assets, enter into certain hedging contracts, change the nature of our business or operations,
+Added: merge, consolidate or make certain investments.
+Added: We are required to maintain a maximum consolidated debt to EBITDAX ratio (as defined in the bank credit facility agreement) of 3.75 x and a minimum current ratio (as defined in the bank credit facility agreement) of 1.0 x.
+Added: We were in compliance with applicable covenants under the bank credit facility at September 30, 2022.
(9) ASSET RETIREMENT OBLIGATIONS
2 unchanged sentences
The inputs are calculated based on historical data as well as current estimated costs.
−Removed: A reconciliation of our liability for plugging and abandonment costs for the six months ended June 30, 2022 and the year ended December 31, 2021 is as follows (in thousands):
+Added: A reconciliation of our liability for plugging and abandonment costs for nine months ended September 30, 2022 and the year ended December 31, 2021 is as follows (in thousands):
+Added: September 30,
Beginning of period
10 unchanged sentences
We do not enter into these arrangements for speculative or trading purposes.
−Removed: We utilize commodity swaps, collars, three-way collars or swaptions to (1) reduce the effect of price volatility of the commodities we produce and sell and (2) support our annual capital budget and investment plans.
−Removed: The fair value of our derivative contracts, represented by the estimated amount that would be realized upon termination, based on a comparison of the contract price and a reference price, generally the New York Mercantile Exchange (NYMEX) for natural gas and crude oil or Mont Belvieu for NGLs, approximated a net loss of $ 802.1 million at June 30, 2022.
+Added: We utilize commodity swaps, collars or three-way collars to (1) reduce the effect of price volatility of the commodities we produce and sell and (2) support our annual capital budget and investment plans.
+Added: The fair value of our derivative contracts, represented by the estimated amount that would be realized upon termination, based on a comparison of the contract price and a reference price, generally the New York Mercantile Exchange (NYMEX) for natural gas and crude oil or Mont Belvieu for NGLs, approximated a net loss of $ 816.0 million at September 30, 2022.
These contracts expire monthly through December 2024.
−Removed: The following table sets forth our commodity-based derivative volumes by year as of June 30, 2022, excluding our basis swaps and divestiture contingent consideration which are discussed separately below:
+Added: The following table sets forth our commodity-based derivative volumes by year as of September 30, 2022, excluding our basis swaps and divestiture contingent consideration which are discussed separately below:
Contract Type
1 unchanged sentence
Weighted Average Hedge Price
−Removed: Natural Gas (1)
490,000 Mmbtu/day
12 unchanged sentences
4,000 bbls/day
−Removed: NGLs (NC4-Butane)
−Removed: July-September 2022
−Removed: 2,000 bbls/day
NGLs (C5-Natural Gasoline)
1 unchanged sentence
2,000 bbls/day
−Removed: We also sold natural gas call swaptions of 40,000 Mmbtu/day for 2023 at a weighted average price of $ 2.91 Mmbtu/day .
Every derivative instrument is required to be recorded on the balance sheet as either an asset or a liability measured at its fair value.
1 unchanged sentence
Basis Swap Contracts
−Removed: In addition to the swaps, collars and swaptions described above, at June 30, 2022, we had natural gas basis swap contracts which lock in the differential between NYMEX Henry Hub and certain of our physical pricing indices.
+Added: In addition to the swaps and collars described above, at September 30, 2022, we had natural gas basis swap contracts which lock in the differential between NYMEX Henry Hub and certain of our physical pricing indices.
These contracts settle monthly through December 2025 and include a total volume of 232,425,000 Mmbtu.
−Removed: The fair value of these contracts was a gain of $ 2.5 million at June 30, 2022.
+Added: The fair value of these contracts was a gain of $ 23.8 million at September 30, 2022.
Divestiture Contingent Consideration
2 unchanged sentences
All changes in the fair value are recognized as a gain or loss in earnings in the period they occur in derivative fair value income or loss in our consolidated statements of operations.
−Removed: For first six months 2022, this fair value has increased $ 8.1 million for a fair value of $ 34.8 million as of June 30, 2022.
+Added: For first nine months 2022, this fair value has increased $ 7.8 million for a fair value of $ 34.4 million as of September 30, 2022.
Derivative Assets and Liabilities
−Removed: The combined fair value of derivatives included in the accompanying consolidated balance sheets as of June 30, 2022 and December 31, 2021 is summarized below.
+Added: The combined fair value of derivatives included in the accompanying consolidated balance sheets as of September 30, 2022 and December 31, 2021 is summarized below.
The assets and liabilities are netted where derivatives with both gain and loss positions are held by a single counterparty and we have master netting arrangements.
The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands):
−Removed: June 30, 2022
+Added: September 30, 2022
Offset in the
7 unchanged sentences
–basis swaps
+Added: –swaps
–collars
–C2 ethane swaps
−Removed: –NC4 butane swaps
–C5 natural gasoline swaps
1 unchanged sentence
Divestiture contingent consideration
−Removed: June 30, 2022
+Added: September 30, 2022
(Liabilities)
7 unchanged sentences
–swaps
−Removed: –swaptions
–collars
4 unchanged sentences
–C2 ethane swaps
−Removed: –NC4 butane swaps
−Removed: –C5 natural gasoline swaps
–C5 natural gasoline collars
39 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Commodity swaps
36 unchanged sentences
The following tables present the fair value hierarchy for assets and liabilities measured at fair value, on a recurring basis (in thousands):
−Removed: Fair Value Measurements at June 30, 2022 using:
+Added: Fair Value Measurements at September 30, 2022 using:
Quoted Prices
Identical Assets
+Added: September 30,
Trading securities held in the deferred
5 unchanged sentences
–basis swaps
−Removed: –swaptions
Divestiture contingent consideration
15 unchanged sentences
Derivatives in Level 2 are measured at fair value with a market approach using third-party pricing services which have been corroborated with data from active markets or broker quotes.
−Removed: As of June 30, 2022, a portion of our natural gas and oil derivative instruments contain swaptions where the counterparty has the right, but not the obligation, to enter into a fixed price swap on a pre-determined date.
−Removed: If exercised, the swaption contract becomes a swap treated consistently with our fixed-price swaps.
−Removed: In addition to our swaptions in Level 3 at June 30, 2022, we have NGLs collars.
+Added: As of September 30, 2022, a portion of our natural gas and oil derivative instruments are NGLs collars.
Derivatives in Level 3 are also measured at fair value with a market approach using third-party pricing services which have been corroborated with data from active markets or broker quotes.
However, the subjectivity in the volatility factors utilized can cause a significant change in the fair value measurement of our derivatives in Level 3 and is considered a significant unobservable input.
−Removed: At June 30, 2022, for our swaptions, we used a weighted average implied volatility of 44 % for natural gas.
−Removed: We also utilized a range of implied volatilities from 48 % to 55 % for our NGLs collars with a weighted average implied volatility of 49 %.
+Added: We have utilized a range of implied volatilities from 55 % to 61 % for our NGLs collars with a weighted average implied volatility of 57 %.
The following is a reconciliation of the beginning and ending balances for derivative instruments classified as Level 3 in the fair value hierarchy (in thousands):
+Added: September 30,
Balance at December 31, 2021
2 unchanged sentences
Transfers out of Level 3
−Removed: Balance at June 30, 2022
+Added: Balance at September 30, 2022
Divestiture Contingent Consideration.
5 unchanged sentences
Interest, dividends, and mark-to-market gains or losses are included in deferred compensation plan expense in the accompanying consolidated statements of operations.
−Removed: For second quarter 2022, interest and dividends were $ 175,000 and the mark-to-market adjustment was a loss of $ 9.6 million compared to interest and dividends of $ 118,000 and a mark-to-market gain of $ 2.3 million in second quarter 2021.
−Removed: For first six months 2022, interest and dividends were $ 291,000 and the mark-to-market adjustment was a loss of $ 14.0 million compared to interest and dividends of $ 227,000 and mark-to-market adjustment of a gain of $ 4.3 million in first six months 2021.
+Added: For third quarter 2022, interest and dividends were $ 318,000 and the mark-to-market adjustment was a loss of $ 2.6 million compared to interest and dividends of $ 314,000 and a mark-to-market loss of $ 1.2 million in third quarter 2021.
+Added: For first nine months 2022, interest and dividends were $ 609,000 and the mark-to-market adjustment was a loss of $ 16.6 million compared to interest and dividends of $ 541,000 and mark-to-market adjustment of a gain of $ 3.1 million in first nine months 2021.
Fair Values –
−Removed: The following presents the carrying amounts and the fair values of our financial instruments as of June 30, 2022 and December 31, 2021 (in thousands):
−Removed: June 30, 2022
+Added: The following presents the carrying amounts and the fair values of our financial instruments as of September 30, 2022 and December 31, 2021 (in thousands):
+Added: September 30, 2022
December 31, 2021
22 unchanged sentences
Concentrations of Credit Risk
−Removed: As of June 30, 2022, our primary concentrations of credit risk are the risks of not collecting accounts receivable and the risk of a counterparty’s failure to perform under derivative obligations.
+Added: As of September 30, 2022, our primary concentrations of credit risk are the risks of not collecting accounts receivable and the risk of a counterparty’s failure to perform under derivative obligations.
Most of our receivables are from a diverse group of companies, including major energy companies, pipeline companies, local distribution companies, financial institutions and end-users in various industries.
Letters of credit or other appropriate assurances are obtained as deemed necessary to limit our risk of loss.
−Removed: Our allowance for uncollectable receivables was $ 564,000 at June 30, 2022 and $ 568,000 at December 31, 2021.
+Added: Our allowance for uncollectable receivables was $ 564,000 at September 30, 2022 and $ 568,000 at December 31, 2021.
Our derivative exposure to credit risk is diversified primarily among major investment grade financial institutions, where we have master netting agreements which provide for offsetting payables against receivables from separate derivative contracts.
To manage counterparty risk associated with our derivatives, we select and monitor our counterparties based on our assessment of their financial strength and/or credit ratings.
−Removed: We may also limit the level of exposure with any single counterparty.
−Removed: At June 30, 2022, our derivative counterparties include fifteen financial institutions, of which all but five are secured lenders in our bank credit facility.
−Removed: At June 30, 2022, our net derivative liability includes a net receivable of $ 2.3 million from three of these counterparties that are not participants in our bank credit facility and an aggregate net payable of $ 4.9 million to two of these counterparties.
+Added: We may also limit the level of exposure with any
+Added: single counterparty.
+Added: At September 30, 2022, our derivative counterparties include fifteen financial institutions, of which all but five are secured lenders in our bank credit facility.
+Added: At September 30, 2022, our net derivative liability includes a net receivable of $ 15.6 million from four of these counterparties that are not participants in our bank credit facility and an aggregate net payable of $ 697,000 to one of these counterparties.
Allowance for Expected Credit Losses.
11 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Direct operating expense
26 unchanged sentences
Each unit granted represents one share of our common stock.
−Removed: These units are settled in stock and the amount of the payout is based on (1) the vesting percentage, which can range from zero to 200 % based on performance achieved, which is determined by the Compensation Committee and (2) the value of our common stock on the vesting date.
−Removed: Dividend equivalents may accrue during the performance period and are paid in stock at the end of the performance period.
+Added: These units are settled in stock and the amount of the payout is based on the vesting percentage, which can range from zero to 200 % and (1) the internal performance achieved, which is determined by the Compensation Committee and (2) for our TSR Awards, the value of our common stock on the vesting date compared to our peers.
+Added: Dividend equivalents accrue during the performance period and are paid in stock at the end of the performance period.
The performance period is for three years .
2 unchanged sentences
Equity Awards
−Removed: In first six months 2022, we granted 1.4 million restricted stock Equity Awards to employees at an average grant date fair value of $ 18.50 which generally vest over a three-year period compared to 2.3 million at an average grant date fair value of $ 10.20 in first six months 2021.
−Removed: We recorded compensation expense for these outstanding awards of $ 10.9 million in first six months 2022 compared to $ 10.3 million in the same period of 2021.
+Added: In first nine months 2022, we granted 1.4 million restricted stock Equity Awards to employees at an average grant date fair value of $ 18.59 which generally vest over a three-year period compared to 2.3 million at an average grant date fair value of $ 10.20 in first nine months 2021.
+Added: We recorded compensation expense for these outstanding awards of $ 15.9 million in first nine months 2022 compared to $ 15.0 million in the same period of 2021.
Restricted stock Equity Awards are not issued to employees until such time as they are vested.
2 unchanged sentences
Liability Awards
−Removed: In first six months 2022, we granted 602,000 shares of restricted stock Liability Awards as compensation to employees at an average grant date fair value of $ 20.43 which generally vest at the end of a three-year period and 47,000 shares were granted to non-employee directors at an average price of $ 27.52 with vesting at the end of one year.
−Removed: In first six months 2021, we granted 1.2 million shares of restricted stock Liability Awards as compensation to employees at an average grant date fair value of $ 9.30 with vesting generally at the end of a three-year period and 97,000 shares were granted to non-employee directors at an average price of $ 11.99 with vesting at the end of one year.
−Removed: We recorded compensation expense for these Liability Awards of $ 6.9 million in first six months 2022 compared to $ 5.7 million in first six months 2021.
+Added: In first nine months 2022, we granted 603,000 shares of restricted stock Liability Awards as compensation to employees at an average grant date fair value of $ 20.43 which generally vest at the end of a three-year period and 47,000 shares were granted to non-employee directors at an average price of $ 27.52 with vesting at the end of one year.
+Added: In first nine months 2021, we granted 1.2 million shares of restricted stock Liability Awards as compensation to employees at an average grant date fair value of $ 9.30 with vesting generally at the end of a three-year period and 102,000 shares were granted to non-employee directors at an average price of $ 12.49 with vesting at the end of one year.
+Added: We recorded compensation expense for these Liability Awards of $ 10.3 million in first nine months 2022 compared to $ 8.4 million in first nine months 2021.
The majority of these awards are held in our deferred compensation plan, are classified as a liability and are remeasured at fair value each reporting period.
This mark-to-market amount is reported as deferred compensation expense in our consolidated statements of operations (see additional discussion below).
−Removed: The following is a summary of the status of our non-vested restricted stock outstanding at June 30, 2022:
+Added: The following is a summary of the status of our non-vested restricted stock outstanding at September 30, 2022:
Restricted Stock
7 unchanged sentences
Outstanding at December 31, 2021
−Removed: Outstanding at June 30, 2022
+Added: Outstanding at September 30, 2022
Stock-Based Performance Units
3 unchanged sentences
If the performance metric for the applicable period is not met, that portion is considered forfeited and there is an adjustment to the expense recorded.
−Removed: See additional information above for shares granted in first six months 2021 and 2022.
−Removed: The following is a summary of our non-vested internal performance awards outstanding at June 30, 2022:
+Added: See additional information above for shares granted in first nine months 2021 and 2022.
+Added: The following is a summary of our non-vested internal performance awards outstanding at September 30, 2022:
Average Grant
3 unchanged sentences
Vested and issued (b)
−Removed: Outstanding at June 30, 2022
+Added: Outstanding at September 30, 2022
Amounts granted reflect the number of performance units granted;
2 unchanged sentences
For the awards issued during 2019, the aggregate payout was approximately 116 % of target with a positive performance adjustment of 158,793 shares.
−Removed: We recorded compensation expense for these awards of $ 3.5 million in first six months 2022 compared to expense of $ 1.8 million in first six months 2021.
+Added: We recorded compensation expense for these awards of $ 5.3 million in first nine months 2022 compared to expense of $ 3.8 million in first nine months 2021.
TSR-PSUs granted are earned, or not earned, based on the comparative performance of Range’s common stock measured against a predetermined group of companies in the peer group over a three-year performance period.
3 unchanged sentences
The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the life of the grant.
−Removed: The following assumptions were used to estimate the fair value of TSR-PSUs granted during first six months 2022 and 2021:
−Removed: Six Months Ended
+Added: The following assumptions were used to estimate the fair value of TSR-PSUs granted during first nine months 2022 and 2021:
+Added: Nine Months Ended
+Added: September 30,
Risk-free interest rate
7 unchanged sentences
Vested and issued (b)
−Removed: Outstanding at June 30, 2022
+Added: Outstanding at September 30, 2022
These amounts reflect the number of performance units granted.
1 unchanged sentence
Includes TSR-PSUs awards granted in 2019 where the return on our common stock was 127 % and therefore, the performance multiple and actual payout was 183 %.
−Removed: We recorded TSR-PSUs compensation expense of $ 1.5 million in first six months 2022 compared to $ 1.2 million in the same period of 2021.
+Added: We recorded TSR-PSUs compensation expense of $ 2.3 million in first nine months 2022 compared to $ 1.9 million in the same period of 2021.
Fair value is amortized over the performance period with no adjustment to the expense recorded for actual targets achieved.
−Removed: Other Post Retirement Benefits
−Removed: Effective fourth quarter 2017, as part of our officer succession plan, we implemented a post retirement benefit plan to assist in providing health care to officers who are active employees (including their spouses) and have met certain age and service requirements.
−Removed: These benefits are not funded in advance and are provided up to age 65 or at the date they become eligible for Medicare, subject to various cost-sharing features.
−Removed: There was approximately $ 70,000 of estimated prior service costs amortized from accumulated other comprehensive income into general and administrative expense in second quarter 2022 compared to approximately $ 90,000 in second quarter 2021.
−Removed: There was approximately $ 145,000 of estimated prior service costs amortized from accumulated other comprehensive income into general and administrative expense in first six months 2022 compared to approximately $ 185,000 in the same period of 2021.
−Removed: Those employees that qualify for this retirement health care plan are required to provide reasonable notice of retirement and provide one year of service after an equity grant date to be fully vested in the grant.
Deferred Compensation Plan
3 unchanged sentences
The assets of the plan are held in a grantor trust, which we refer to as the Rabbi Trust, and are therefore available to satisfy the claims of our general creditors in the event of bankruptcy or insolvency.
−Removed: Our stock held in the Rabbi Trust is treated as a liability award as employees are allowed to take withdrawals from the Rabbi Trust either in cash or in Range stock.
+Added: Our common stock held in the Rabbi Trust is treated as a liability award as employees are allowed to take withdrawals from the Rabbi Trust either in cash or in Range stock.
The liability for the vested portion of the stock held in the Rabbi Trust is reflected as deferred compensation liability in the accompanying consolidated balance sheets and is adjusted to fair value each reporting period by a charge or credit to deferred compensation plan expense on our consolidated statements of operations.
2 unchanged sentences
Changes in the market value of the marketable securities and changes in the fair value of the deferred compensation plan liability are charged or credited to deferred compensation plan expense each quarter.
−Removed: We recorded a mark-to-market gain of $ 19.2 million in second quarter 2022 compared to a mark-to-market loss of $ 35.5 million in second quarter 2021.
−Removed: We recorded mark-to-market loss of $ 54.1 million in first six months 2022 compared to mark-to-market loss of $ 55.3 million in first six months 2021.
−Removed: The Rabbi Trust held 5.7 million shares ( 4.8 million of which were vested) of Range stock at June 30, 2022 compared to 6.2 million shares ( 5.4 million of which were vested) at December 31, 2021.
+Added: We recorded a mark-to-market loss of $ 5.8 million in third quarter 2022 compared to a mark-to-market loss of $ 34.3 million in third quarter 2021.
+Added: We recorded mark-to-market loss of $ 59.9 million in first nine months 2022 compared to mark-to-market loss of $ 89.6 million in first nine months 2021.
+Added: The Rabbi Trust held 5.7 million shares ( 5.1 million of which were vested) of Range stock at September 30, 2022 compared to 6.2 million shares ( 5.4 million of which were vested) at December 31, 2021.
(13) EXIT AND TERMINATION COSTS
−Removed: In August 2020, we sold our North Louisiana assets and retained certain gathering, transportation and processing obligations which extend into 2030.
+Added: In third quarter 2020, we sold our North Louisiana assets and retained certain gathering, transportation and processing obligations which extend into 2030.
These are contracts where we will not realize any future benefit.
The estimated obligations are included in current and long-term divestiture contract obligation in our consolidated balance sheets.
−Removed: In first six months 2022, we recorded accretion expense of $ 22.1 million compared to $ 25.0 million in the same period of the prior year.
+Added: In first nine months 2022, we recorded accretion expense of $ 33.0 million compared to $ 36.6 million in the same period of the prior year.
In second quarter 2022, we recorded a net adjustment of $ 24.8 million to increase this obligation for a change in our forecasted drilling plans of the buyer along with adjusting the difference between estimated and actual payments.
In second quarter 2021, we recorded a net favorable adjustment of $ 28.2 million to reduce this obligation due to a reduction of certain contractual payments compared to those originally estimated along with a change in our forecasted drilling plans of the buyer.
−Removed: The estimated discounted divestiture contract obligation was $ 414.2 million at June 30, 2022.
+Added: The estimated discounted divestiture contract obligation was $ 401.2 million at September 30, 2022.
In second quarter 2020, we negotiated capacity releases on certain transportation pipelines in Pennsylvania effective May 31, 2020 and extending through the remainder of the contract.
−Removed: The estimated remaining discounted obligation for these transportation capacity releases as of June 30, 2022 was $ 6.2 million.
+Added: The estimated remaining discounted obligation for these transportation capacity releases as of September 30, 2022 was $ 5.7 million.
Termination Costs
−Removed: The following summarizes our exit and termination costs for the three and six months ended June 30, 2022 and 2021 (in thousands):
+Added: The following summarizes our exit and termination costs for the three and nine months ended September 30, 2022 and 2021 (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Severance costs
2 unchanged sentences
Divestiture contract obligation (including accretion
−Removed: The following details the accrued exit and termination cost liability activity for the six months ended June 30, 2022 (in thousands):
+Added: The following details the accrued exit and termination cost liability activity for the nine months ended September 30, 2022 (in thousands):
Balance at December 31, 2021
1 unchanged sentence
Changes in estimate
−Removed: Balance at June 30, 2022
+Added: Balance at September 30, 2022
Includes the divestiture contract obligation and the transportation contract capacity release obligation.
3 unchanged sentences
The following is a schedule of changes in the number of common shares outstanding since the beginning of 2021:
+Added: September 30,
Beginning balance
5 unchanged sentences
Ending balance
+Added: Subsequent to third quarter 2022, we purchased approximately $ 17.3 million shares of our common stock through October 21, 2022.
Stock Repurchase Program
−Removed: In 2019, the board of directors approved a stock purchase program to acquire up to $ 100.0 million of our outstanding stock.
+Added: In 2019, the board of directors approved a stock purchase program to acquire up to $ 100.0 million of our outstanding common stock.
In early 2022, our board authorized an additional repurchase of up to $ 430.0 million of our outstanding common stock for an aggregate available amount at that time of $ 500.0 million.
+Added: On October 21, 2022, our board of directors authorized an additional repurchase of up to $ 1.0 billion for common stock repurchases.
Under this program, we may repurchase shares in open market transactions, from time to time, in accordance with applicable SEC rules and federal securities laws.
−Removed: In first six months 2022, we repurchased 5,100,000 shares at an aggregate cost of $ 146.0 million, including repurchases of $ 13.1 million ( 500,000 shares) that were purchased in June 2022 and settled in July 2022.
−Removed: The following is a schedule of the change in treasury shares for the three and six months ended June 30, 2022:
+Added: In first nine months 2022, we repurchased 10,810,000 shares at an aggregate cost of $ 313.9 million, including repurchases of $ 5.1 million ( 208,500 shares) that were purchased in September 2022 and settled in October 2022.
+Added: The following is a schedule of the change in treasury shares for the three and nine months ended September 30, 2022:
+Added: September 30,
+Added: September 30,
Beginning balance
3 unchanged sentences
(15) SUPPLEMENTAL CASH FLOW INFORMATION
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
(in thousands)
13 unchanged sentences
We have incurred and will continue to incur capital, operating and remediation expenditures as a result of environmental laws and regulations.
−Removed: As of June 30, 2022, liabilities for remediation were not material.
−Removed: We are not aware of any environmental claims existing as of June 30, 2022 that have not been provided for or would otherwise have a material impact on our financial position or results of operations.
+Added: As of September 30, 2022, liabilities for remediation were not material.
+Added: We are not aware of any environmental claims existing as of September 30, 2022 that have not been provided for or would otherwise have a material impact on our financial position or results of operations.
Environmental liabilities normally involve estimates that are subject to revision until final resolution, settlement or remediation occurs.
−Removed: On March 4, 2021 a putative class action lawsuit was filed in the Western District of Pennsylvania in Case No.
−Removed: 2:21-CV-301 (Jacobowitz v.
−Removed: Range Resources Corporation et al.) in which the plaintiff sought to represent a class of Range stockholders who purchased or acquired stock from April 29, 2016 to February 10, 2021.
−Removed: This lawsuit was transferred to the U.S.
−Removed: District Court for the Northern District of Texas (Fort Worth Division) and claimed that Range misclassified certain wells as inactive rather than having plugged the wells and that such alleged misclassification affected the determination of our asset retirement
−Removed: obligation accrual.
−Removed: On March 31, 2022, the court granted our motion to dismiss and each claim was dismissed with prejudice and no further appeal was filed.
−Removed: Additionally, on January 20, 2022, a derivative action styled as Lewis v.
−Removed: Ventura et al.
−Removed: was filed under seal in the Northern District of Texas (Case No.
−Removed: 4-22CV-051-0) asserting similar allegations as those alleged in the Jacobowitz matter.
−Removed: On May 13, 2022, a notice of voluntary dismissal of that lawsuit was filed with the court by the plaintiff.
Transportation, Gathering and Processing Contracts
1 unchanged sentence
Our commitments would increase by a total of approximately $ 800.0 million upon completion of the construction.
+Added: Lease Commitments
+Added: During third quarter 2022, we extended a lease for a fleet used in our operations through the end of 2023.
+Added: As of September 30, 2022, there is a remaining obligation of $ 60.0 million under this operating lease.
(17) Costs Incurred for Property Acquisition, Exploration and Development (a)
+Added: September 30,
(in thousands)
5 unchanged sentences
Total costs incurred
−Removed: Includes costs incurred whether capitalized or expensed.
+Added: (a) Includes costs incurred whether capitalized or expensed.
MANAGEMENT’S DISCUSSION AND ANA LYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
5 unchanged sentences
Our strategy to achieve our business objective is to generate consistent cash flows from reserves and production through internally generated drilling projects occasionally coupled with complementary acquisitions and divestitures of non-core or, at times, core assets.
−Removed: In addition, we target funding our capital spending to at or below operating cash flow.
Our revenues, profitability and future growth depend substantially on prevailing prices for natural gas, NGLs and oil and on our ability to economically find, develop, acquire, produce and market these reserves.
2 unchanged sentences
operate safely and efficiently;
−Removed: target capital spending at or below operating cash flow;
achieve competitive returns on investments;
18 unchanged sentences
Prices for natural gas, NGLs and oil that we produce significantly impact our revenues and cash flows.
−Removed: Natural gas, NGLs and oil benchmarks increased in second quarter 2022 when compared to the same period of 2021 and also increased in first six months 2022 when compared to the same period of 2021.
+Added: Natural gas, NGLs and oil benchmarks increased in third quarter 2022 when compared to the same period of 2021 and also increased in first nine months 2022 when compared to the same period of 2021.
As a result, we experienced a significant increase in price realizations.
5 unchanged sentences
In addition, in response to continued supply chain disruptions attributable to the virus, the Russia-Ukraine conflict and global monetary policies over the last few years, cost inflation is occurring.
−Removed: Specifically, our 2022 capital program is primarily being impacted by inflation in steel, diesel and labor.
−Removed: The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the three and six months ended June 30, 2022 and 2021:
+Added: Specifically, our 2022 capital program is primarily being impacted by inflation in steel, fuel and labor, among other items.
+Added: We continue to assess and monitor the impact and consequences of these factors on our operations.
+Added: The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the three and nine months ended September 30, 2022 and 2021:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Average NYMEX prices (a)
6 unchanged sentences
Consolidated Results of Operations
−Removed: Overview of Second Quarter 2022 Results
−Removed: During second quarter 2022, we recognized net income of $452.9 million, or $1.77 per diluted common share compared to a loss of $156.5 million, or $0.65 per diluted common share during second quarter 2021.
−Removed: The higher net income in second quarter 2022 compared to second quarter 2021 reflects the impact of significantly higher commodity prices on both natural gas, NGLs and oil sales and our reported derivative fair value loss.
+Added: Overview of Third Quarter 2022 Results
+Added: During third quarter 2022, we recognized net income of $373.1 million, or $1.49 per diluted common share compared to a loss of $350.3 million, or $1.44 per diluted common share during third quarter 2021.
+Added: The higher net income in third quarter 2022 compared to third quarter 2021 reflects the impact of significantly higher commodity prices on both our natural gas, NGLs and oil sales and on our reported derivative fair value loss.
See page 32 for more information on our derivative fair value loss.
−Removed: For second quarter 2022, we experienced a significant increase in revenue from the sale of natural gas, NGLs and oil due to a 111% increase in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) partially offset by slightly lower production volumes when compared to the same quarter of 2021.
−Removed: Daily production averaged 2.1 Bcfe in both the second quarter 2022 and 2021.
−Removed: Our second quarter 2022 financial and operating performance included the following results:
−Removed: reduced total debt by $217.1 million utilizing cash on hand and operating cash flows;
−Removed: cash flow from operating activities increased $150.5 million from second quarter 2021;
−Removed: revenue from the sale of natural gas, NGLs and oil increased 118% from the same period of 2021 with a 121% increase in average realized prices (before cash settlements on our derivatives) partially offset by slightly lower production volumes;
+Added: For third quarter 2022, we experienced a significant increase in revenue from the sale of natural gas, NGLs and oil due to a 65% increase in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) when compared to the same quarter of 2021.
+Added: Daily production averaged 2.1 Bcfe in both the third quarter 2022 and 2021.
+Added: Our third quarter 2022 financial and operating performance included the following results:
+Added: cash flow from operating activities increased $329.1 million from third quarter 2021;
+Added: paid $19.5 million of dividends, or $0.08 per share;
+Added: repurchased $176.0 million of our common stock;
+Added: enhanced liquidity with the accumulation of cash totaling $157.1 million;
+Added: revenue from the sale of natural gas, NGLs and oil increased 69% from the same period of 2021 with a 69% increase in average realized prices (before cash settlements on our derivatives);
revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) increased 41% from the same period of 2021;
−Removed: direct operating expense per mcfe was $0.11 in second quarter 2022 compared to $0.10 in the same period of 2021 due to higher contract labor and service costs partially offset by lower workover costs;
−Removed: general and administrative expense per mcfe increased 10% from same quarter 2021 primarily due to higher salaries and benefits, higher stock-based compensation and higher general office expenses including technology costs;
+Added: direct operating expense per mcfe was $0.11 in third quarter 2022 compared to $0.10 in the same period of 2021 due to higher contract labor, water handling/hauling and service costs partially offset by lower workover costs;
+Added: general and administrative expense per mcfe decreased 16% from same quarter 2021 primarily due to lower legal expenses, including legal settlements;
reduced depletion, depreciation and amortization (“DD&A”) rate per mcfe by 2% from the same period of 2021.
−Removed: Our cash flow from operating activities in second quarter 2022 was $324.7 million, an increase of $150.5 million from second quarter 2021 with significantly higher realized prices when compared to second quarter 2021 partially offset by slightly lower production volumes and the impact of negative working capital due to higher commodity prices.
−Removed: Overview of First Six Months 2022 Results
−Removed: During first six months 2022, we recognized a net loss of $4.0 million, or $0.02 per diluted common share compared to a net loss of $129.3 million, or $0.53 per diluted common share during first six months 2021.
−Removed: The improvement in our net loss for first six months 2022 compared to 2021 reflects the impact of significantly higher commodity prices on both natural gas, NGLs and oil sales and our reported derivative fair value loss.
−Removed: Given the significant increase in commodity prices, our derivative fair value loss, which includes the non-cash fair value adjustment related to our derivatives, was $1.2 billion in the first six months 2022 compared to $307.6 million in the first six months of the prior year.
+Added: Our cash flow from operating activities in third quarter 2022 was $521.0 million, an increase of $329.1 million from third quarter 2021 with significantly higher realized prices when compared to third quarter 2021 and a favorable impact from the change in negative working capital.
+Added: Overview of First Nine Months 2022 Results
+Added: During first nine months 2022, we recognized a net income of $369.1 million, or $1.45 per diluted common share compared to a net loss of $479.6 million, or $1.98 per diluted common share during first nine months 2021.
+Added: The improvement in our net income for first nine months 2022 compared to 2021 reflects the impact of significantly higher commodity prices on both our natural gas, NGLs and oil sales and on our reported derivative fair value loss.
+Added: Given the significant increase in commodity prices, our derivative fair value loss, which includes the non-cash fair value adjustment related to our derivatives, was $1.6 billion in the first nine months 2022 compared to $959.8 million in the first nine months of the prior year.
For additional information on our derivative fair value loss, see page 32.
−Removed: For first six months 2022, we experienced an increase in revenue from the sale of natural gas, NGLs and oil due to a 110% increase in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) somewhat offset by slightly lower production volumes, a loss on extinguishment of debt and higher exit costs when compared to the same period of 2021.
−Removed: Daily production averaged 2.1 Bcfe in both the first six months 2022 and 2021.
−Removed: Our first six months 2022 financial and operating performance included the following results:
+Added: For first nine months 2022, we experienced an increase in revenue from the sale of natural gas, NGLs and oil due to a 91% increase in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) somewhat offset by slightly lower production volumes, a loss on extinguishment of debt and higher exit costs when compared to the same period of 2021.
+Added: Daily production averaged 2.1 Bcfe in both the first nine months 2022 and 2021.
+Added: Our first nine months 2022 financial and operating performance included the following results:
reduced total debt by $571.9 million with cash on hand and operating cash flows;
realized a significant improvement in our debt metrics from year-end 2021;
+Added: paid $19.5 million of dividends;
+Added: repurchased $308.9 million of our common stock;
reduced future interest expense through debt reduction combined with refinancing a portion of 9.25% senior notes due 2026 with 4.75% senior notes due 2030;
−Removed: cash flow from operating activities increased $447.7 million from first six months 2021;
+Added: cash flow from operating activities increased $776.8 million from first nine months 2021;
revenue from the sale of natural gas, NGLs and oil increased 84% from the same period of 2021 with a 85% increase in average realized prices (before cash settlements on our derivatives) partially offset by slightly lower production volumes;
revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) increased 54% from the same period of 2021;
−Removed: direct operating expense per mcfe was $0.11 in first six months 2022 compared to $0.10 in the same period of 2021 due to higher contract labor and higher service and water handling hauling costs partially offset by lower workover costs;
−Removed: general and administrative expense per mcfe for the first six months 2022 increased 10% from same period of 2021 primarily due to higher stock-based compensation, higher salaries and benefits and higher general office expenses including technology cost;
+Added: direct operating expense per mcfe was $0.11 in first nine months 2022 compared to $0.10 in the same period of 2021 due to higher contract labor and higher service and water handling/hauling costs partially offset by lower workover costs;
+Added: general and administrative expense per mcfe for the first nine months 2022 was the same compared to the same period of 2021;
reduced DD&A rate per mcfe by 2% from the same period of 2021.
−Removed: Our cash flow from operating activities in first six months 2022 was $731.1 million, an increase of $447.7 million from same period of 2021 with significantly higher realized prices when compared to same period of 2021 partially offset by slightly lower production volumes and higher negative working capital.
+Added: Our cash flow from operating activities in first nine months 2022 was $1.3 billion, an increase of $776.8 million from same period of 2021 with significantly higher realized prices when compared to same period of 2021 partially offset by slightly lower production volumes and higher negative working capital due to higher commodity prices.
Natural Gas, NGLs and Oil Sales, Production and Realized Price Calculations
1 unchanged sentence
Our revenues are generally recognized when control of the product is transferred to the customer and collectability is reasonably assured.
−Removed: In second quarter 2022, natural gas, NGLs and oil sales increased 118% compared to second quarter 2021 with a 121% increase in average realized prices (before cash settlements on our derivatives) partially offset by a 1% reduction in production volumes.
−Removed: In first six months 2022, natural gas, NGLs and oil sales increased 95% compared to first six months 2021 with a 97% increase in average realized prices partially offset by a 1% reduction in production volumes.
−Removed: The following table illustrates the primary components of natural gas, NGLs and oil sales for the three and six months ended June 30, 2022 and 2021 (in thousands):
+Added: In third quarter 2022, natural gas, NGLs and oil sales increased 69% compared to third quarter 2021 with a 69% increase in average realized prices (before cash settlements on our derivatives).
+Added: In first nine months 2022, natural gas, NGLs and oil sales increased 84% compared to first nine months 2021 with an 85% increase in average realized prices partially offset by a 1% reduction in production volumes.
+Added: The following table illustrates the primary components of natural gas, NGLs and oil sales for the three and nine months ended September 30, 2022 and 2021 (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Natural gas, NGLs and oil sales
1 unchanged sentence
Our production is determined by drilling success which offsets the natural decline of our natural gas and oil reserves through production.
−Removed: Our production for the three and six months ended June 30, 2022 and 2021 is set forth in the following table:
+Added: Our production for the three and nine months ended September 30, 2022 and 2021 is set forth in the following table:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Production (a)
8 unchanged sentences
Oil and NGLs volumes are converted to mcfe at the rate of one barrel equals six mcf based upon the approximate relative energy content of oil to natural gas, which is not indicative of the relationship between oil and natural gas prices.
−Removed: Our average realized price received (including all derivative settlements and third-party transportation costs) during second quarter 2022 was $3.29 per mcfe compared to $1.56 per mcfe in second quarter 2021.
−Removed: Our average realized price received (including all derivative settlements and third party transportation costs) during first six months 2022 was $3.26 per mcfe compared to $1.55 per mcfe in first six months 2021.
+Added: Our average realized price received (including all derivative settlements and third-party transportation costs) during third quarter 2022 was $3.30 per mcfe compared to $2.00 per mcfe in third quarter 2021.
+Added: Our average realized price received (including all derivative settlements and third party transportation costs) during first nine months 2022 was $3.27 per mcfe compared to $1.71 per mcfe in first nine months 2021.
We believe computed final realized prices should include the total impact of transportation, gathering, processing and compression expense.
2 unchanged sentences
Average realized prices (excluding derivative settlements) do include transportation costs where we receive net revenue proceeds from purchasers.
−Removed: Average realized price calculations for three and six months ended June 30, 2022 and 2021 are shown below:
+Added: Average realized price calculations for three and nine months ended September 30, 2022 and 2021 are shown below:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Average Prices
23 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Average natural gas differentials below NYMEX
−Removed: Realized (losses) gains on basis hedging
+Added: Realized gains on basis hedging
The following tables reflect our production and average realized commodity prices (excluding derivative settlements and third-party transportation costs paid by Range) (in thousands, except prices):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Price (per mcf)
2 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Price (per bbl)
1 unchanged sentence
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Price (per bbl)
2 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Price (per mcfe)
2 unchanged sentences
NGLs and oil sales
−Removed: Transportation, gathering, processing and compression expense was $327.9 million in second quarter 2022 compared to $282.8 million in second quarter 2021.
−Removed: These third-party costs are higher in second quarter 2022 when compared to second quarter 2021 due to the impact of higher NGLs prices which results in higher processing costs, higher electricity and fuel costs.
−Removed: In addition, second quarter 2022 includes a one-time adjustment of $7.5 million that reflects a one-time settlement regarding transportation, gathering and processing charges.
−Removed: Transportation, gathering, processing and compression expense was $625.7 million in first six months 2022 compared to $557.2 million in the same period of the prior year.
−Removed: These third-party costs are higher in first six months 2022 when compared to the same period of 2021 due to the impact of higher NGLs prices which results in higher processing costs and higher electricity and fuel costs.
+Added: Transportation, gathering, processing and compression expense was $323.0 million in third quarter 2022 compared to $296.5 million in third quarter 2021.
+Added: These third-party costs are higher in third quarter 2022 when compared to third quarter 2021 due to higher fuel prices, higher electricity costs and the impact of higher NGLs prices which result in higher processing costs.
+Added: Transportation, gathering, processing and compression expense was $948.7 million in first nine months 2022 compared to $853.7 million in the same period of the prior year.
+Added: These third-party costs are higher in first nine months 2022 when compared to the same period of 2021 due to the impact of higher NGLs prices which results in higher processing costs along with higher electricity and fuel costs.
+Added: In addition, second quarter 2022 included a one-time adjustment of $7.5 million that reflects a one-time settlement regarding transportation, gathering and processing charges.
We have included these costs in the calculation of average realized prices (including all derivative settlements and third-party transportation expenses paid by Range).
−Removed: The following table summarizes transportation, gathering, processing and compression expense for the three and six months ended June 30, 2022 and 2021 on a per mcf and per barrel basis (in thousands, except for costs per unit):
+Added: The following table summarizes transportation, gathering, processing and compression expense for the three and nine months ended September 30, 2022 and 2021 on a per mcf and per barrel basis (in thousands, except for costs per unit):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Transportation, gathering,
3 unchanged sentences
Oil (per bbl)
−Removed: Derivative fair value loss was $239.9 million in second quarter 2022 compared to a loss of $249.7 million in second quarter 2021.
−Removed: Derivative fair value loss was $1.2 billion in first six months 2022 compared to a loss of $307.6 million in the same period of the prior year.
+Added: Derivative fair value loss was $457.7 million in third quarter 2022 compared to a loss of $652.2 million in third quarter 2021.
+Added: Derivative fair value loss was $1.6 billion in first nine months 2022 compared to a loss of $959.8 million in the same period of the prior year.
All of our derivatives are accounted for using the mark-to-market accounting method.
2 unchanged sentences
Gains on our derivatives generally indicate potentially lower wellhead revenues in the future while losses indicate potentially higher future wellhead revenues.
−Removed: The following table summarizes the impact of our commodity derivatives for three and six months ended June 30, 2022 and 2021 (in thousands):
+Added: The following table summarizes the impact of our commodity derivatives for the three and nine months ended September 30, 2022 and 2021 (in thousands):
Three Months Ended
−Removed: Six Months Ended
−Removed: Derivative fair value loss per consolidated statements of
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
+Added: Derivative fair value loss per consolidated
+Added: statements of operations
Non-cash fair value gain (loss):
5 unchanged sentences
Total non-cash fair value gain (loss) (1)
−Removed: Net cash payment on derivative settlements:
+Added: Net cash (payment) receipt on derivative settlements:
Natural gas derivatives
9 unchanged sentences
This also includes the change in fair value of our divestiture contingent consideration.
−Removed: Brokered natural gas, marketing and other revenue in second quarter 2022 was $108.2 million compared to $62.6 million in second quarter 2021 which is the result of significantly higher broker sales prices somewhat offset by lower broker sales volumes (volumes not related to our production).
−Removed: Brokered natural gas, marketing and other revenue was $195.6 million in first six months 2022 compared to $143.1 million in first six months 2021 which is the result of significantly higher broker sales prices somewhat offset by lower broker sales volumes.
−Removed: First six months 2021 also includes $8.8 million received as part of a capacity release agreement.
+Added: Brokered natural gas, marketing and other revenue in third quarter 2022 was $133.1 million compared to $105.6 million in third quarter 2021 which is the result of significantly higher broker sales prices somewhat offset by lower broker sales volumes (volumes not related to our production).
+Added: Brokered natural gas, marketing and other revenue was $328.7 million in first nine months 2022 compared to $248.7 million in first nine months 2021 which is the result of significantly higher broker sales prices somewhat offset by lower broker sales volumes.
+Added: First nine months 2021 also included $8.8 million received as part of a capacity release agreement.
We continue to optimize our transportation portfolio using these volumes.
2 unchanged sentences
We believe some of our expense fluctuations are best analyzed on a unit-of-production or per mcfe basis.
−Removed: The following table presents information about certain of our expenses on a per mcfe basis for the three and six months ended June 30, 2022 and 2021:
+Added: The following table presents information about certain of our expenses on a per mcfe basis for the three and nine months ended September 30, 2022 and 2021:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Direct operating expense
3 unchanged sentences
Depletion, depreciation and amortization expense
−Removed: Direct operating expense was $20.1 million in second quarter 2022 compared to $19.8 million in second quarter 2021.
+Added: Direct operating expense was $21.3 million in third quarter 2022 compared to $20.2 million in third quarter 2021.
Direct operating expenses include normally recurring expenses to operate and produce our wells, non-recurring well workovers and repair-related expenses.
−Removed: Our direct operating costs increased in second quarter 2022 primarily due to higher contract labor and services partially offset by lower workover costs.
−Removed: Our costs for services, labor and supplies have recently increased due to increased demand for those items, supply chain disruptions and inflation.
−Removed: Our production volumes decreased 1% in second quarter 2022 compared to the same period of the prior year.
−Removed: We incurred $203,000 of workover costs in second quarter 2022 compared to $1.7 million in second quarter 2021.
−Removed: On a per mcfe basis, direct operating expense was $0.11 in second quarter 2022 compared to $0.10 in the same quarter of the prior year due to higher contract labor and services somewhat offset by lower workover costs.
−Removed: Direct operating expense was $40.3 million in first six months 2022 compared to $37.4 million in the same period of the prior year due to higher contract labor and higher services and water handling/hauling costs somewhat offset by lower workover costs.
−Removed: Our production volumes decreased 1% in first six months 2022 compared to the same period of the prior year.
−Removed: We incurred $1.1 million of workover costs in first six months 2022 compared to $2.4 million in first six months 2021.
+Added: Our direct operating costs increased in third quarter 2022 primarily due to higher contract labor and services and higher water handling/hauling costs partially offset by lower workover costs.
+Added: Our costs for services, labor and supplies have increased due to increased demand for those items, supply chain disruptions and inflation.
+Added: Our production volumes were only slightly lower in third quarter 2022 compared to the same period of the prior year.
+Added: We incurred $223,000 of workover costs in third quarter 2022 compared to $896,000 in third quarter 2021.
+Added: On a per mcfe basis, direct operating expense was $0.11 in third quarter 2022 compared to $0.10 in the same quarter of the prior year due to higher water handling/hauling costs.
+Added: Direct operating expense was $61.6 million in first nine months 2022 compared to $57.7 million in the same period of the prior year due to higher contract labor and higher services and water handling/hauling costs somewhat offset by lower workover costs.
+Added: Our production volumes decreased 1% in first nine months 2022 compared to the same period of the prior year.
+Added: We incurred $1.3 million of workover costs in first nine months 2022 compared to $3.3 million in first nine months 2021.
On a per mcfe basis, direct operating costs increased 10%, from $0.10 to $0.11 with the increase due to higher water handling/handling costs and higher contract labor and services somewhat offset by lower workover costs.
−Removed: The following table summarizes direct operating expense per mcfe for the three and six months ended June 30, 2022 and 2021:
+Added: The following table summarizes direct operating expense per mcfe for the three and nine months ended September 30, 2022 and 2021:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Direct operating
6 unchanged sentences
which functions as a tax on unconventional natural gas and oil production from the Marcellus Shale in Pennsylvania.
−Removed: This impact fee was $7.5 million in second quarter 2022 compared to $8.4 million in second quarter 2021.
+Added: This impact fee was $8.4 million in third quarter 2022 compared to $7.1 million in third quarter 2021 due to higher natural gas prices.
The impact fee is based on drilling activities and is adjusted based on prevailing natural gas prices.
−Removed: Production and ad valorem taxes includes an impact fee of $14.1 million in first six months 2022 compared to $13.0 million in the first six months 2021 due to higher natural gas prices.
−Removed: The following table summarizes production and ad valorem taxes per mcfe for the three and six months ended June 30, 2022 and 2021:
+Added: Production and ad valorem taxes includes an impact fee of $22.5 million in first nine months 2022 compared to $20.1 million in first nine months 2021 due to higher natural gas prices.
+Added: The following table summarizes production and ad valorem taxes per mcfe for the three and nine months ended September 30, 2022 and 2021:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Production and ad valorem taxes
1 unchanged sentence
Total production and ad valorem taxes
−Removed: General and administrative (G&A) expense was $43.5 million in second quarter 2022 compared to $40.2 million in second quarter 2021.
−Removed: The second quarter 2022 increase of $3.3 million when compared to the same period of 2021 is primarily due to higher stock-based compensation expense of $888,000, higher general office expenses including technology costs and higher salaries and benefits somewhat offset by lower legal expenses.
−Removed: On a per mcfe basis, second quarter 2022 G&A expense was 10% higher than second quarter 2021 primarily due to higher general office expenses and higher salaries and benefits.
−Removed: G&A expense for first six months 2022 increased $8.3 million when compared to the same period 2021 due to higher stock-based compensation of $3.1 million, higher salaries and benefits of $2.0 million and higher general office expenses including technology costs partially offset by lower legal expenses.
−Removed: On a per mcfe basis, first six months 2022 G&A expense increased 10% from first six months 2021 due to higher stock-based compensation, higher salaries and benefits and higher general office expenses.
−Removed: The following table summarizes G&A expenses on a per mcfe basis for the three and six months ended June 30, 2022 and 2021:
+Added: General and administrative (G&A) expense was $41.2 million in third quarter 2022 compared to $49.1 million in third quarter 2021.
+Added: The third quarter 2022 decrease of $7.9 million when compared to the same period of 2021 is primarily due to lower legal expenses (including legal settlements) of $9.0 million partially offset by higher stock-based compensation and higher general office expenses.
+Added: On a per mcfe basis, third quarter 2022 G&A expense was 16% lower than third quarter 2021 primarily due to lower legal expenses.
+Added: G&A expense for first nine months 2022 increased $409,000 when compared to the same period 2021 with higher stock-based compensation of $3.6 million, higher salaries and benefits of $2.1 million and higher general office expenses including technology costs offset by lower legal expenses, including legal settlements.
+Added: On a per mcfe basis, first nine months 2022 G&A expense is equal to the first nine months 2021.
+Added: The following table summarizes G&A expenses on a per mcfe basis for the three and nine months ended September 30, 2022 and 2021:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
General and administrative
2 unchanged sentences
Total general and administrative expense
−Removed: Interest expense was $42.0 million in second quarter 2022 compared to $57.3 million in second quarter 2021.
−Removed: Interest expense was $89.2 million for first six months 2022 compared to $114.2 million for first six months 2021.
−Removed: The following table presents information about interest expense per mcfe for the three and six months ended June 30, 2022 and 2021:
+Added: Interest expense was $38.7 million in third quarter 2022 compared to $56.8 million in third quarter 2021.
+Added: Interest expense was $127.9 million for first nine months 2022 compared to $171.0 million for first nine months 2021.
+Added: The following table presents information about interest expense per mcfe for the three and nine months ended September 30, 2022 and 2021:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Bank credit facility
−Removed: Amortization of deferred financing costs
+Added: Amortization of deferred
+Added: financing costs and other
Total interest expense
−Removed: Average debt outstanding ($000’s)
+Added: Average debt outstanding
Average interest rate (a)
Includes commitment fees but excludes debt issue costs and amortization of discounts and premiums.
−Removed: On an absolute basis, the decrease in interest expense for second quarter 2022 from the same period of 2021 was primarily due to lower overall average interest rates and lower overall average outstanding debt balances.
−Removed: Average debt outstanding on the bank credit facility for second quarter 2022 was $90.0 million compared to $195.5 million in second quarter 2021 and the weighted average interest rate on the bank credit facility was 4.1% in second quarter 2022 compared to 2.0% in second quarter 2021.
−Removed: On an absolute basis, the decrease in interest expense for first six months 2022 from the same period 2021 was primarily due to lower overall average interest rates and lower outstanding debt balances.
−Removed: Average debt outstanding on the bank credit facility was $77.6 million for first six months 2022 compared to $208.0 million for first six months 2021 and the weighted average interest rates on the bank credit facility was 3.4% in first six months 2022 compared to 2.1% in first six months 2021.
−Removed: Depletion, depreciation and amortization expense was $86.5 million in second quarter 2022 compared to $90.6 million in second quarter 2021.
−Removed: This decrease is due to a 2% decrease in depletion rates and a 1% decrease in production volumes.
−Removed: Depletion expense, the largest component of DD&A expense, was $0.45 per mcfe in second quarter 2022 compared to $0.46 per mcfe in second quarter 2021.
−Removed: We have historically adjusted our depletion rates in the fourth quarter of each year
−Removed: based on the year-end reserve report and at other times during the year when circumstances indicate there has been a significant change in reserves or costs.
−Removed: DD&A expense was $172.1 million in first six months 2022 compared to $179.0 million in the same period 2021.
+Added: On an absolute basis, the decrease in interest expense for third quarter 2022 from the same period of 2021 was primarily due to lower overall average outstanding debt balances and lower overall average interest rates.
+Added: Average debt outstanding on the bank credit facility for third quarter 2022 was $21.9 million compared to $139.0 million in third quarter 2021 and the weighted average interest rate on the bank credit facility was 5.7% in third quarter 2022 compared to 2.0% in third quarter 2021.
+Added: On an absolute basis, the decrease in interest expense for first nine months 2022 from the same period 2021 was primarily due to lower overall outstanding debt balances and lower overall average interest rates.
+Added: Average debt outstanding on the bank credit facility was $59.0 million for first nine months 2022 compared to $185.0 million for first nine months 2021 and the weighted average interest rates on the bank credit facility was 3.7% in first nine months 2022 compared to 2.1% in first nine months 2021.
+Added: Depletion, depreciation and amortization expense was $90.5 million in third quarter 2022 compared to $93.1 million in third quarter 2021.
+Added: This decrease is due to a 2% decrease in depletion rates.
+Added: Depletion expense, the largest component of DD&A expense, was $0.45 per mcfe in third quarter 2022 compared to $0.46 per mcfe in third quarter 2021.
+Added: We have historically adjusted our depletion rates in the fourth quarter of each year based on the year-end reserve report and at other times during the year when circumstances indicate there has been a significant change in reserves or costs.
+Added: DD&A expense was $262.6 million in first nine months 2022 compared to $272.1 million in the same period 2021.
This is due to a 2% decrease in depletion rates and a 1% decrease in production volumes.
−Removed: Depletion expense per mcfe was $0.45 in first six months 2022 compared to $0.46 in the same period of 2021.
−Removed: The following table summarizes DD&A expense per mcfe for the three and six months ended June 30, 2022 and 2021:
+Added: Depletion expense per mcfe was $0.45 in first nine months 2022 compared to $0.46 in the same period of 2021.
+Added: The following table summarizes DD&A expense per mcfe for the three and nine months ended September 30, 2022 and 2021:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Depletion and amortization
5 unchanged sentences
Stock-based compensation includes the amortization of restricted stock grants and PSUs.
−Removed: The following table details the allocation of stock-based compensation to functional expense categories for the three and six months ended June 30, 2022 and 2021 (in thousands):
+Added: The following table details the allocation of stock-based compensation to functional expense categories for the three and nine months ended September 30, 2022 and 2021 (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Direct operating expense
3 unchanged sentences
Total stock-based compensation
−Removed: Brokered natural gas and marketing expense was $110.1 million in second quarter 2022 compared to $69.0 million in second quarter 2021 due to significantly higher commodity prices somewhat offset by lower broker purchase volumes (volumes not related to our production).
−Removed: Brokered natural gas marketing expense was $203.2 million in first six months 2022 compared to $141.3 million in first six months 2021 due to significantly higher commodity prices somewhat offset by lower broker purchased volumes.
−Removed: The following table details our brokered natural gas, marketing and other net margin for the three and six months ended June 30, 2022 and 2021 (in thousands):
+Added: Brokered natural gas and marketing expense was $127.3 million in third quarter 2022 compared to $105.8 million in third quarter 2021 due to significantly higher commodity prices somewhat offset by lower broker purchase volumes (volumes not related to our production).
+Added: Brokered natural gas marketing expense was $330.5 million in first nine months 2022 compared to $247.2 million in first nine months 2021 due to significantly higher commodity prices somewhat offset by lower broker purchased volumes.
+Added: The following table details our brokered natural gas, marketing and other net margin for the three and nine months ended September 30, 2022 and 2021 (in thousands):
Three Months Ended
−Removed: Six Months Ended
−Removed: Brokered natural gas and marketing
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
+Added: Brokered natural gas and
Brokered natural gas sales
4 unchanged sentences
Other marketing expense
−Removed: Net brokered natural gas and marketing margin
−Removed: The six months ended June 30, 2021 includes $8.8 million received as part of a capacity release agreement.
+Added: Net brokered natural gas and
+Added: marketing margin
+Added: The nine months ended September 30, 2021 includes $8.8 million received as part of a capacity release agreement.
Includes transportation costs.
−Removed: Exploration expense was $7.5 million in second quarter 2022 compared to $5.0 million in second quarter 2021 due to higher delay rentals and other expense.
−Removed: Exploration expense was $12.2 million in first six months 2022 compared to $10.6 million in first six months 2021 due to higher delay rentals and other expense.
−Removed: The following table details our exploration expense for the three and six months ended June 30, 2022 and 2021 (in thousands):
+Added: Exploration expense was $7.5 million in third quarter 2022 compared to $5.9 million in third quarter 2021 due to higher delay rentals and other expense.
+Added: Exploration expense was $19.7 million in first nine months 2022 compared to $16.4 million in first nine months 2021 due to higher delay rentals and other expense.
+Added: The following table details our exploration expense for the three and nine months ended September 30, 2022 and 2021 (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Delay rentals and other
2 unchanged sentences
Total exploration expense
−Removed: Abandonment and impairment of unproved properties was $7.1 million in second quarter 2022 compared to $2.2 million in second quarter 2021.
−Removed: Abandonment and impairment of unproved properties was $9.1 million in first six months 2022 compared to $5.2 million in the same period of 2021.
−Removed: Abandonment and impairment of unproved properties for second quarter and first six months 2022 increased when compared to the same periods of 2021 due to higher estimated lease expirations in Pennsylvania.
−Removed: Exit and termination costs was $36.1 million in second quarter 2022 compared to a gain of $15.9 million in second quarter 2021.
−Removed: In second quarter 2022, we recorded $11.3 million accretion expense primarily related to retained liabilities for certain gathering, transportation and processing obligations extending until 2030 compared to accretion expense of $12.2 million in the same quarter of the prior year.
−Removed: The second quarter 2022 also includes an unfavorable adjustment of $24.8 million to increase this obligation for a change in our forecasted drilling plans of the buyer and other adjustments.
−Removed: The second quarter 2021 also includes a gain of $28.2 million to reduce our original estimate of these obligations due to payments being lower than our forecast and a change in the forecasted drilling plans of the buyer.
−Removed: Exit and termination costs was $47.2 million in first six months 2022 compared to a gain of $2.2 million in first six months 2021.
−Removed: We recorded accretion expense of $22.4 million in first six months 2022 compared to accretion expense of $25.4 million in the same period of 2021.
−Removed: The first six months 2022 includes an unfavorable adjustment of $24.8 million to increase this obligation for a change in our forecasted drilling plans of the buyer and other adjustments compared to a favorable adjustment of $28.2 million in the same period of 2021 to reduce our original estimate of the obligations.
−Removed: Deferred compensation plan was income of $19.2 million in second quarter 2022 compared to a loss of $35.5 million in second quarter 2021.
+Added: Abandonment and impairment of unproved properties was $3.2 million in third quarter 2022 compared to $2.0 million in third quarter 2021.
+Added: Abandonment and impairment of unproved properties was $12.3 million in first nine months 2022 compared to $7.2 million in the same period of 2021.
+Added: Abandonment and impairment of unproved properties for third quarter and first nine months 2022 increased when compared to the same periods of 2021 due to higher estimated lease expirations in Pennsylvania.
+Added: Exit and termination costs was $11.1 million in third quarter 2022 compared to $11.8 million in third quarter 2021.
+Added: In third quarter 2022, we recorded $11.1 million accretion expense primarily related to retained liabilities for certain gathering, transportation and processing obligations extending until 2030 compared to accretion expense of $11.8 million in the same quarter of the prior year.
+Added: Exit and termination costs was $58.2 million in first nine months 2022 compared to $9.6 million in first nine months 2021.
+Added: We recorded accretion expense of $33.5 million in first nine months 2022 compared to accretion expense of $37.2 million in the same period of 2021.
+Added: The first nine months 2022 includes an unfavorable adjustment of $24.8 million to increase this obligation for a change in our forecasted drilling plans of the buyer and other adjustments compared to a favorable adjustment of $28.2 million in the same period of 2021 due to a reduction of certain contractual payments compared to those originally estimated along with a change in our forecasted drilling plans of the buyer.
+Added: Deferred compensation plan was a loss of $5.8 million in third quarter 2022 compared to a loss of $34.3 million in third quarter 2021.
This non-cash item relates to the increase or decrease in value of the liability associated with our common stock that is vested and held in our deferred compensation plan.
The deferred compensation liability is adjusted to fair value by a charge or a credit to deferred compensation plan expense.
−Removed: Our stock price decreased from $30.38 at March 31, 2022 to $24.75 at June 30, 2022.
−Removed: In the same period of the prior year, our stock price increased from $10.33 at March 31, 2021 to $16.76 at June 30, 2021.
−Removed: During first six months 2022, deferred compensation was a loss of $54.1 million compared to a loss of $55.3 million in the same period of 2021.
−Removed: Our stock price increased from $17.83 at December 31, 2021 to $24.75 at June 30, 2022.
−Removed: In the same period of the prior year, our stock price increased from $6.70 at December 31, 2020 to $16.76 at June 30, 2021.
−Removed: Loss on early extinguishment of debt was a loss of $22,000 in second quarter 2022 compared to a loss of $63,000 in the same period of the prior year.
−Removed: Loss on extinguishment of debt was $69.2 million in first six months 2022 compared to $98,000 in the same period of the prior year.
+Added: Our stock price increased from $24.75 at June 30, 2022 to $25.26 at September 30, 2022.
+Added: In the same period of the prior year, our stock price increased from $16.76 at June 30, 2021 to $22.63 at September 30, 2021.
+Added: During first nine months 2022, deferred compensation was a loss of $59.9 million compared to a loss of $89.6 million in the same period of 2021.
+Added: Our stock price increased from $17.83 at December 31, 2021 to $25.26 at September 30, 2022.
+Added: In the same period of the prior year, our stock price increased from $6.70 at December 31, 2020 to $22.63 at September 30, 2021.
+Added: Loss on early extinguishment of debt was a loss of $69.2 million in first nine months 2022 compared to $98,000 in the same period of the prior year.
In first quarter 2022, we announced a call for the redemption of $850.0 million of our outstanding 9.25% senior notes due 2026.
1 unchanged sentence
We recognized a loss on early extinguishment of debt in first quarter 2022 of $69.2 million, net of transaction costs and the expensing of the remaining deferred financing costs on the repurchased debt.
−Removed: Income tax expense (benefit) was an expense of $103.3 million in second quarter 2022 compared to benefit of $1.3 million in second quarter 2021.
−Removed: Income tax benefit was $12.8 million in first six months 2022 compared to an expense of $1.4 million in the same period of 2021.
+Added: Income tax expense (benefit) was an expense of $59.6 million in third quarter 2022 compared to benefit of $29.7 million in third quarter 2021.
+Added: Income tax expense was $46.9 million in first nine months 2022 compared to benefit of $28.3 million in the same period of 2021.
The 2022 and 2021 effective tax rates were different than the statutory tax rate due to state income taxes, equity compensation, valuation allowances and other discrete tax items.
+Added: In third quarter 2022, we recorded a $20.7 million tax benefit related to the reduction in the Commonwealth of Pennsylvania corporate income tax rates enacted on July 12, 2022.
Management’s Discussion and Analysis of Financial Condition, Capital Resources and Liquidity
7 unchanged sentences
Production receipts, however, often lag payments to the counterparties.
−Removed: As of June 30, 2022, we have entered into derivative agreements covering 196.4 Bcfe for the remainder of 2022, 270.6 Bcfe for 2023 and 104.5 Bcfe for 2024, not including our basis swaps.
−Removed: The following table presents sources and uses of cash and cash equivalents for the six months ended June 30, 2022 and 2021 (in thousands):
−Removed: Six Months Ended
+Added: As of September 30, 2022, we have entered into derivative agreements covering 94.4 Bcfe for the remainder of 2022, 297.9 Bcfe for 2023 and 173.1 Bcfe for 2024, not including our basis swaps.
+Added: The following table presents sources and uses of cash and cash equivalents for the nine months ended September 30, 2022 and 2021 (in thousands):
+Added: Nine Months Ended
+Added: September 30,
Sources of cash and cash equivalents
5 unchanged sentences
Uses of cash and cash equivalents
−Removed: Additions to natural gas and oil properties
+Added: Additions to natural gas properties
Repayment on credit facility
3 unchanged sentences
Treasury stock purchases
+Added: Dividends paid
Debt issuance costs
1 unchanged sentence
Sources of Cash and Cash Equivalents
−Removed: Cash flows provided from operating activities in first six months 2022 was $731.1 million compared to $283.4 million in first six months 2021.
+Added: Cash flows provided from operating activities in first nine months 2022 was $1.3 billion compared to $475.3 million in first nine months 2021.
Cash provided from operating activities is largely dependent upon commodity prices and production volumes, net of the effects of settlement of our derivative contracts.
−Removed: The increase in cash provided from operating activities from first six months 2021 to first six months 2022 reflects significantly higher realized prices partially offset by lower production volumes.
−Removed: As of June 30, 2022, we have hedged more than 55% of our projected total production for the remainder of 2022, with more than 60% of our projected natural gas production hedged.
+Added: The increase in cash provided from operating activities from first nine months 2021 to first nine months 2022 reflects significantly higher realized prices partially offset by lower production volumes.
+Added: As of September 30, 2022, we have hedged more than 50% of our projected total production for the remainder of 2022, with more than 55% of our projected natural gas production hedged.
Net cash provided from operating activities was affected by a 1% decrease in production and working capital changes or the timing of cash receipts and disbursements.
−Removed: Changes in working capital (as reflected in our consolidated statements of cash flows) for first six months 2022 were negative $256.8 million compared to a negative $73.7 million for first six months 2021.
−Removed: Issuance of senior notes in first six months 2022 includes the issuance of $500.0 million new 4.75% senior notes due 2030.
+Added: Changes in working capital (as reflected in our consolidated statements of cash flows) for first nine months 2022 were negative $277.6 million compared to a negative $143.6 million for first nine months 2021.
+Added: Issuance of senior notes in first nine months 2022 includes the issuance of $500.0 million new 4.75% senior notes due 2030.
Uses of Cash and Cash Equivalents
−Removed: Additions to natural gas and oil properties for first six months 2022 were consistent with expectations relative to our announced 2022 capital budget.
−Removed: We currently believe our 2022 capital program will approach the high-end of our announced range of $460.0 million to $480.0 million due to the impact of cost inflation.
−Removed: Repayment of senior notes for first six months 2022 includes the redemption of our $850.0 million aggregate principal amount 9.25% senior notes due 2026 along with the retirement of our 5.00% senior notes due 2022 and our 5.87% notes due 2022.
+Added: Additions to natural gas properties for first nine months 2022 were consistent with expectations relative to our announced 2022 capital budget.
+Added: We continue to monitor inflationary pressures given the labor market, commodity prices and supply chain challenges.
+Added: We currently believe our 2022 capital program will approach the high-end of our announced range of $460.0 million to $480.0 million with any increase in our 2022 capital program due to the impact of cost inflation.
+Added: Repayment of senior notes for first nine months 2022 includes the redemption of our $850.0 million aggregate principal amount 9.25% senior notes due 2026 along with the retirement of our 5.00% senior notes due 2022 and our 5.875% notes due 2022.
From time to time, we may continue to repurchase our senior notes based upon prevailing market or other conditions at the time.
−Removed: Treasury stock purchases for first six months 2022 include the repurchase of 4.6 million shares as part of our previously announced stock repurchase program.
+Added: Treasury stock purchases for first nine months 2022 include the repurchase of 10.6 million shares as part of our previously announced stock repurchase program.
Liquidity and Capital Resources
1 unchanged sentence
We continue to manage the duration and level of our drilling and completion commitments in order to maintain flexibility with regard to our activity level and capital expenditures.
−Removed: As of June 30, 2022, we had cash on hand in the amount of $356,000 and availability under our credit facility of $1.2 billion.
+Added: As of September 30, 2022, we had cash on hand in the amount of $157.1 million and availability under our credit facility of $1.2 billion.
Sources of Cash
We expect our 2022 capital program to be funded by cash flows from operations.
−Removed: During the six months ended June 30, 2022, we generated $731.1 million of cash flows from operating activities.
−Removed: As of June 30, 2022, we had approximately $1.5 billion of liquidity, consisting of $1.2 billion available under our bank credit facility and $356,000 of cash on hand.
+Added: During the nine months ended September 30, 2022, we generated $1.3 billion of cash flows from operating activities.
+Added: As of September 30, 2022, we had approximately $1.4 billion of liquidity, consisting of $1.2 billion available under our bank credit facility and $157.1 million of cash on hand.
Our borrowing base can be adjusted as a result of changes in commodity prices, acquisitions or divestitures of proved properties or financing activities.
1 unchanged sentence
In early January 2022, we issued $500.0 million aggregate principal amount of new 4.75% senior notes due 2030 and used the proceeds, cash on hand and our credit facility to fully redeem our 9.25% senior notes due 2026 in February 2022.
−Removed: Although we expect cash flows and capacity under the existing credit facility to be sufficient to fund our expected 2022 capital program, we may also elect to raise funds through new debt or equity offerings or from other sources of financing.
+Added: Although we expect cash flows and capacity under the existing credit facility to be sufficient to fund our expected 2022 capital program, we may also have the option to raise funds through new debt or equity offerings or from other sources of financing.
All of our sources of liquidity can be affected by the general conditions of the broader economy, the global pandemic, force majeure events and fluctuations in commodity prices, operating costs and volumes produced, all of which affect us and our industry.
2 unchanged sentences
Our bank credit facility is secured by substantially all of our assets.
−Removed: As of June 30, 2022, we had $1.0 million of outstanding borrowings under our bank credit facility and we maintained a borrowing base of $3.0 billion and aggregate lender commitments of $1.5 billion.
−Removed: We also have undrawn letters of credit of $330.5 million as of June 30, 2022.
−Removed: We were in compliance with the applicable covenants under the bank credit facility as of June 30, 2022.
−Removed: The borrowing base is subject to regular, semi-annual redeterminations and is dependent on a number of factors but primarily the lender’s assessment of future cash flows.
−Removed: Our scheduled borrowing base redetermination was completed in the spring of 2022.
+Added: As of September 30, 2022, we had no outstanding borrowings under our bank credit facility and we maintained a borrowing base of $3.0 billion and aggregate lender commitments of $1.5 billion.
+Added: We also have undrawn letters of credit of $330.5 million as of September 30, 2022.
+Added: We were in compliance with the applicable covenants under the bank credit facility as of September 30, 2022.
+Added: The borrowing base is subject to regular, semi-annual redeterminations and is dependent on a number of factors but primarily the lender’s assessment of our future cash flows.
+Added: Our scheduled borrowing base redetermination was completed in September 2022 with our borrowing base and commitments reaffirmed.
On April 14, 2022 we entered into an amended and restated revolving bank credit facility.
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See Note 8 for additional information.
−Removed: Our daily weighted-average bank credit facility debt balance was $77.6 million for first six months ended June 30, 2022 compared to $208.0 million for the same period of the prior year.
+Added: Our daily weighted-average bank credit facility debt balance was $59.0 million for first nine months ended September 30, 2022 compared to $185.0 million for the same period of the prior year.
As of April 14, 2022, borrowings under the amended and restated revolving bank credit facility can either be at the alternate base rate (ABR, as defined in the bank credit facility agreement) plus a spread ranging from 0.75% to 1.75% or at the secured overnight financing rate (SOFR, as defined in the bank credit facility agreement) plus a spread ranging from 1.75% to 2.75%.
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We may elect, from time to time, to convert all or any part of our SOFR loans to base rate loans or to convert all or any of the base rate loans to SOFR loans.
−Removed: We use cash for the development, exploration and acquisition of natural gas and oil properties and for the payment of gathering, transportation and processing costs, operating, general and administrative costs, taxes and debt obligations, including interest.
+Added: We use cash for the development, exploration and acquisition of natural gas properties and for the payment of gathering, transportation and processing costs, operating, general and administrative costs, taxes and debt obligations, including interest, dividends and share repurchases.
Expenditures for the development, exploration and acquisition of natural gas and oil properties are the primary use of our capital resources.
−Removed: During first six months 2022, we funded $231.1 million of capital expenditures as reported in our consolidated statement of cash flows.
+Added: During first nine months 2022, we funded $376.3 million of capital expenditures as reported in our consolidated statement of cash flows with operating cash flows.
The amount of our future capital expenditures will depend upon a number of factors including our cash flows from operating, investing and financing activities, infrastructure availability, supply and demand fundamentals and our ability to execute our development program.
−Removed: In addition, the impact of commodity prices on investment opportunities, the availability of capital and the timing and results of our development activities may lead to
−Removed: changes in funding requirements for future development.
+Added: In addition, the impact of commodity prices on investment opportunities, the availability of capital and the timing and results of our development activities may lead to changes in funding requirements for future development.
We periodically review our budget to assess changes in current and projected cash flows, debt requirements and other factors.
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As part of our strategy for 2022, we will continue to focus on improving our debt metrics.
−Removed: We expect our quarterly cash dividend to be reinstated in the second half of 2022 at a quarterly dividend rate of $0.08 per share or an $0.32 per share annual distribution.
+Added: Our quarterly cash dividend was reinstated in third quarter of 2022 at a quarterly dividend rate of $0.08 per share or a $0.32 per share annual distribution.
+Added: See also Cash Dividend Payments below.
Details regarding the record and payment dates will be announced at such time the dividend is declared by our board of directors.
−Removed: In early 2022, the Board approved an increase to our share repurchase program, where we are now authorized to repurchase an additional $430.0 million of our outstanding shares of common stock for an aggregate available at the time of $500.0 million.
−Removed: During the first six months 2022, we repurchased 5.1 million shares of our common stock at an aggregate cost of $146.0 million (including 500,000 shares purchased in June and settled in July).
−Removed: The total remaining share repurchase authorization was approximately $354.0 million at June 30, 2022.
+Added: In early 2022, the board of directors approved an increase to our share repurchase program, where we were authorized to repurchase an additional $430.0 million of our outstanding shares of common stock for an aggregate available at the time of $500.0 million.
+Added: During the first nine months 2022, we repurchased 10.8 million shares of our common stock at an aggregate cost of $313.9 million (including 208,500 shares purchased in September and settled in October).
+Added: The total remaining share repurchase authorization was approximately $186.1 million at September 30, 2022.
+Added: On October 21, 2022, our board of directors approved an additional repurchase of up to $1.0 billion of our outstanding common stock for this program.
Shelf Registration
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Cash Dividend Payments
−Removed: In January 2020, we announced that the Board of Directors suspended the dividend on our common stock.
+Added: On August 30, 2022, our board of directors approved a dividend of $0.08 per share payable on September 30, 2022 to stockholders of record at the close of business on September 15, 2022.
The determination of the amount of future dividends, if any, to be declared and paid is at the sole discretion of the board of directors and primarily depends on cash flow, capital expenditures, debt covenants and various other factors.
−Removed: We expect our quarterly cash dividend to be reinstated in the second half of 2022.
Cash Contractual Obligations
Our contractual obligations include long-term debt, operating leases, derivative obligations, asset retirement obligations and transportation, processing and gathering commitments including the divestiture contractual commitment.
−Removed: As of June 30, 2022, we do not have any significant off-balance sheet debt or other such unrecorded obligations and we have not guaranteed any debt of any unrelated party.
−Removed: As of June 30, 2022, we had a total of $330.5 million of undrawn letters of credit under our bank credit facility.
+Added: As of September 30, 2022, we do not have any significant off-balance sheet debt or other such unrecorded obligations and we have not guaranteed any debt of any unrelated party.
+Added: As of September 30, 2022, we had a total of $330.5 million of undrawn letters of credit under our bank credit facility.
Since December 31, 2021, there have been no material changes to our contractual obligations other than the changes to our indebtedness as discussed further in Note 8 and changes to our commitments as discussed in Note 16.
Interest Rates
−Removed: At June 30, 2022, we had approximately $2.4 billion of debt outstanding which bore interest at fixed rates averaging 5.7%.
−Removed: Bank debt totaling $1.0 million bears interest at a floating rate, which was 1.5% at June 30, 2022.
−Removed: The 30-day SOFR rate at June 30, 2022 was approximately 1.7%.
−Removed: A 1% increase in short-term interest rates on the floating-rate debt outstanding on June 30, 2022, would result in approximately $10,000 in additional interest expense.
+Added: At September 30, 2022, we had approximately $2.4 billion of debt outstanding which bore interest at fixed rates averaging 5.7%.
+Added: We had no variable rate debt outstanding at September 30, 2022.
Off-Balance Sheet Arrangements
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We are also exposed to market risks related to changes in interest rates.
−Removed: These risks did not change materially from December 31, 2021 to June 30, 2022.
+Added: These risks did not change materially from December 31, 2021 to September 30, 2022.
Commodity Price Risk
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Our program may also include a three-way collar which is a combination of three options.
−Removed: At June 30, 2022, our derivative program includes swaps, collars, three-way collars and swaptions.
−Removed: The fair value of these contracts, represented by the estimated amount that would be realized upon immediate liquidation based on a comparison of the contract price and a reference price, generally NYMEX for natural gas and crude oil or Mont Belvieu for NGLs, as of June 30, 2022, approximated a net unrealized pretax loss of $802.1 million.
+Added: At September 30, 2022, our derivative program includes swaps, collars and three-way collars.
+Added: The fair value of these contracts, represented by the estimated amount that would be realized upon immediate liquidation based on a comparison of the contract price and a reference price, generally NYMEX for natural gas and crude oil or Mont Belvieu for NGLs, as of September 30, 2022, approximated a net unrealized pretax loss of $816.0 million.
These contracts expire monthly through December 2024.
−Removed: At June 30, 2022, the following commodity derivative contracts were outstanding, excluding our basis swaps which are discussed below:
+Added: At September 30, 2022, the following commodity derivative contracts were outstanding, excluding our basis swaps which are discussed below:
Contract Type
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Fair Market Value
−Removed: Natural Gas (1)
(in thousands)
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4,000 bbls/day
−Removed: NGLs (NC4-Butane)
−Removed: July-September 2022
−Removed: 2,000 bbls/day
NGLs (C5-Natural Gasoline)
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2,000 bbls/day
−Removed: We also sold natural gas call swaptions of 40,000 Mmbtu/day for 2023 at a weighted average price of $2.91.
−Removed: The fair market value of these swaptions at June 30, 2022 was a net derivative liability of $26.0 million.
We believe NGLs prices are somewhat seasonal, particularly for propane.
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If commodity price changes in one region are not reflected in other regions, derivative commodity instruments may no longer provide the expected hedge, resulting in increased basis risk.
−Removed: Therefore, in addition to the swaps, collars, three-way collars and swaptions discussed above, we have entered into natural gas basis swap agreements.
+Added: Therefore, in addition to the swaps, collars and three-way collars discussed above, we have entered into natural gas basis swap agreements.
The price we receive for our gas production can be more or less than the NYMEX Henry Hub price because of basis adjustments, relative quality and other factors.
Basis swap agreements effectively fix the basis adjustments.
−Removed: The fair value of the natural gas basis swaps was a gain of $2.5 million June 30, 2022 and they settle monthly through December 2024.
−Removed: At June 30, 2022, we are entitled to receive contingent consideration associated with the sale of our North Louisiana assets, annually through 2023, of up to $45.5 million based on future achievement of certain natural gas and oil prices based on published indexes along with the realized NGLs prices of the buyer.
−Removed: The fair value at June 30, 2022 was a gain of $34.8 million.
−Removed: The following table shows the fair value of our derivatives and the hypothetical changes in fair value that would result from a 10% and a 25% change in commodity prices at June 30, 2022.
+Added: The fair value of the natural gas basis swaps was a gain of $23.8 million September 30, 2022 and they settle monthly through December 2025.
+Added: At September 30, 2022, we are entitled to receive contingent consideration associated with the sale of our North Louisiana assets, annually through 2023, of up to $45.5 million based on future achievement of certain natural gas and oil prices based on published indexes along with the realized NGLs prices of the buyer.
+Added: The fair value at September 30, 2022 was a gain of $34.4 million.
+Added: The following table shows the fair value of our derivatives and the hypothetical changes in fair value that would result from a 10% and a 25% change in commodity prices at September 30, 2022.
We remain at risk for possible changes in the market value of commodity derivative instruments;
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Our derivative contracts are with multiple counterparties to minimize our exposure to any individual counterparty.
−Removed: At June 30, 2022, our derivative counterparties include fifteen financial institutions, of which all but five are secured lenders in our bank credit facility.
+Added: At September 30, 2022, our derivative counterparties include fifteen financial institutions, of which all but five are secured lenders in our bank credit facility.
Counterparty credit risk is considered when determining the fair value of our derivative contracts.
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We attempt to balance variable rate debt, fixed rate debt and debt maturities to manage interest costs, interest rate volatility and financing risk.
−Removed: This is accomplished through a mix of fixed rate senior and variable rate bank debt.
−Removed: At June 30, 2022, we had $2.4 billion of debt outstanding which bears interest at fixed rates averaging 5.7%.
−Removed: Bank debt totaling $1.0 million bears interest at a floating rate, which was 1.5% at June 30, 2022.
−Removed: The 30-day SOFR rate an June 30, 2022 was approximately 1.7%.
−Removed: A 1% increase in short-term interest rates on the floating-rate debt outstanding on June 30, 2022, would result in approximately $10,000 in additional interest expense.
+Added: This is accomplished through a mix of fixed rate senior and, at times, variable rate bank debt.
+Added: At September 30, 2022, we had $2.4 billion of debt outstanding which bears interest at fixed rates averaging 5.7%.
+Added: We had no variable rate bank debt outstanding as of September 30, 2022.
CONTROLS A ND PROCEDURES
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Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC.
−Removed: Based upon the evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective as of June 30, 2022 at the reasonable assurance level.
+Added: Based upon the evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective as of September 30, 2022 at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
−Removed: There was no change in our system of internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the three months ended June 30, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
+Added: There was no change in our system of internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the three months ended September 30, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
P ART II –
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.