3 unchanged sentences
(In thousands, except per share data)
−Removed: September 30,
Current assets:
15 unchanged sentences
Accrued liabilities
+Added: Deferred compensation liabilities
Accrued interest
−Removed: Derivative liabilities
Divestiture contract obligation
−Removed: Current maturities of long-term debt
+Added: Derivative liabilities
Total current liabilities
10 unchanged sentences
Common stock, $ 0.01 par, 475,000,000 shares authorized, 265,686,795 issued at
−Removed: September 30, 2022 and 259,795,554 issued at December 31, 2021
−Removed: Common stock held in treasury, 20,603,035 shares at September 30, 2022 and 10,002,646
−Removed: shares at December 31, 2021
+Added: March 31, 2023 and 262,887,265 issued at December 31, 2022
+Added: Common stock held in treasury, 24,324,065 shares at March 31, 2023 and 24,001,535 shares
+Added: at December 31, 2022
Additional paid-in capital
−Removed: Accumulated other comprehensive income (loss)
+Added: Accumulated other comprehensive income
Retained deficit
5 unchanged sentences
(Unaudited, in thousands, except per share data)
−Removed: Three Months Ended September 30,
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Revenues and other income:
Natural gas, NGLs and oil sales
−Removed: Derivative fair value loss
+Added: Derivative fair value income (loss)
Brokered natural gas, marketing and other
3 unchanged sentences
Transportation, gathering, processing and compression
−Removed: Production and ad valorem taxes
+Added: Taxes other than income
Brokered natural gas and marketing
1 unchanged sentence
General and administrative
−Removed: Exit and termination costs
Deferred compensation plan
13 unchanged sentences
(Unaudited, in thousands)
−Removed: Three Months Ended September 30,
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Net income (loss)
1 unchanged sentence
Postretirement benefits:
−Removed: Amortization of prior service costs
−Removed: Income tax expense
+Added: Amortization of prior service costs/actuarial gain
+Added: Income tax (benefit) expense
Total comprehensive income (loss)
3 unchanged sentences
(Unaudited, in thousands)
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Operating activities:
4 unchanged sentences
Abandonment and impairment of unproved properties
−Removed: Derivative fair value loss
+Added: Derivative fair value (income) loss
Cash settlements on derivative financial instruments
23 unchanged sentences
Issuance of senior notes
−Removed: Repayment of senior or senior subordinated notes
+Added: Repayment of senior notes
Dividends paid
5 unchanged sentences
Net cash used in financing activities
−Removed: (Decrease) increase in cash and cash equivalents
+Added: Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
3 unchanged sentences
CONSOLIDATED STATEMENTS O F STOCKHOLDERS’
−Removed: (Unaudited, in thousands)
+Added: (Unaudited, in thousands, except per share data)
Fiscal Year 2023
comprehensive
−Removed: (loss) income
Balance as of December 31, 2022
Issuance of common stock
−Removed: Issuance of common stock
−Removed: upon vesting of PSUs
+Added: Issuance of common stock upon
+Added: vesting of PSUs
Stock-based compensation
+Added: Cash dividends paid ($ 0.08 per
Treasury stock
+Added: Excise tax on stock repurchases
Other comprehensive income
Balance as of March 31, 2023
−Removed: Issuance of common stock
−Removed: Stock-based compensation
−Removed: Treasury stock
−Removed: Other comprehensive income
−Removed: Balance as of June 30, 2022
−Removed: Issuance of common stock
−Removed: Cash dividends paid
−Removed: ($ 0.08 per share)
−Removed: Stock-based compensation
−Removed: Treasury stock
−Removed: Other comprehensive income
−Removed: Balance as of September 30, 2022
The accompanying notes are an integral part of these consolidated financial statements.
1 unchanged sentence
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’
−Removed: (Unaudited, in thousands, except per share data)
+Added: (Unaudited, in thousands)
Fiscal Year 2022
8 unchanged sentences
Balance as of March 31, 2022
−Removed: Issuance of common stock
−Removed: Issuance of common stock
−Removed: upon vesting of PSUs
−Removed: Stock-based compensation
−Removed: Treasury stock
−Removed: Other comprehensive income
−Removed: Balance as of June 30, 2021
−Removed: Issuance of common stock
−Removed: Stock-based compensation
−Removed: Treasury stock
−Removed: Other comprehensive income
−Removed: Balance as of September 30, 2021
The accompanying notes are an integral part of these consolidated financial statements.
2 unchanged sentences
(1) SUMMARY OF ORGANIZATION AND NATURE OF BUSINESS
−Removed: Range Resources Corporation is a Fort Worth, Texas-based independent natural gas, natural gas liquids (NGLs) and oil company engaged in the exploration, development and acquisition of natural gas properties in the Appalachian region of the United States.
+Added: Range Resources Corporation is a Fort Worth, Texas-based independent natural gas, natural gas liquids (NGLs) and crude oil and condensate company engaged in the exploration, development and acquisition of natural gas and liquids properties in the Appalachian region of the United States.
Our objective is to build stockholder value through returns-focused development of natural gas properties.
6 unchanged sentences
These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2022 Annual Report on Form 10-K filed with the SEC on February 27, 2023.
−Removed: 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.
+Added: The results of operations for first quarter ended March 31, 2023 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 third quarter or nine months ended September 30, 2022 that had a material impact on our consolidated financial statements.
+Added: No accounting standards were adopted in first quarter 2023 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 $ 624.5 million at September 30, 2022 and $ 460.2 million at December 31, 2021.
+Added: Other marketing revenue for the three months ended March 31, 2023 includes the receipt of a $ 3.6 million make-whole payment.
+Added: Accounts receivable attributable to our revenue contracts with customers was $ 243.9 million at March 31, 2023 and $ 463.3 million at December 31, 2022.
Revenue attributable to each of our identified revenue streams is disaggregated below (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Natural gas sales
3 unchanged sentences
Other marketing revenue
−Removed: (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 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.
+Added: For three months ended March 31, 2023 and 2022, 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 2023 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 nine months 2022.
−Removed: 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.
−Removed: 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: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Net income (loss), as reported
9 unchanged sentences
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Weighted average common shares outstanding –
3 unchanged sentences
Weighted average common shares outstanding –
−Removed: 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).
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: Weighted average common shares outstanding −
+Added: basic for first quarter 2023 excludes 5.6 million shares of restricted stock held in our deferred compensation plan compared to 6.2 million shares in first quarter 2022 (although all awards are issued and outstanding upon grant).
+Added: For the three months ended March 31, 2023, equity grants of 4,000 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 first quarter 2022, 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)
−Removed: 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 nine months ended September 30, 2022 or the year ended December 31, 2021 (in thousands).
−Removed: September 30,
+Added: No interest was capitalized during three months ended March 31, 2023 or the year ended December 31, 2022 (in thousands).
Senior notes:
2 unchanged sentences
4.75 % senior notes due 2030
−Removed: 5.00 % senior notes due 2023
−Removed: 5.875 % senior notes due 2022
−Removed: 8.25 % senior notes due 2029
−Removed: 9.25 % senior notes due 2026
Total senior notes
−Removed: Unamortized premium
Unamortized debt issuance costs
Total debt net of debt issuance costs
−Removed: Less current maturities of long-term debt
−Removed: Total long-term debt
In April 2022, we entered into an amended and restated revolving bank facility, which we refer to as our bank debt or our bank credit facility, which is secured by substantially all of our assets and has a maturity date of April 14, 2027 .
1 unchanged sentence
The bank credit facility also provides for a borrowing base subject to periodic redeterminations and for event-driven unscheduled redeterminations.
−Removed: As of September 30, 2022, our bank group was composed of seventeen financial institutions.
+Added: As of March 31, 2023, 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 5.7 % for third quarter 2022 compared to 2.0 % for third quarter 2021.
−Removed: The weighted average interest rate was 3.7 % for first nine months 2022 compared to 2.1 % for first nine months 2021.
+Added: The weighted average interest rate was 8.4 % for first quarter 2023 compared to 2.5 % for first quarter 2022.
A commitment fee is paid on the undrawn balance based on an annual rate of 0.375 % to 0.50 %.
−Removed: 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.
−Removed: 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.
−Removed: On September 30, 2022, we had no outstanding borrowings on our bank credit facility.
+Added: At March 31, 2023, the commitment fee was 0.375 % 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 in March 2023, our borrowing base was reaffirmed for $ 3.0 billion and our bank commitment was also reaffirmed at $ 1.5 billion.
+Added: On March 31, 2023, we had no outstanding borrowings on our bank credit facility.
Additionally, we had $ 292.3 million of undrawn letters of credit, leaving $ 1.2 billion of committed borrowing capacity available under the facility.
−Removed: New Senior Notes
−Removed: In January 2022, we issued $ 500.0 million aggregate principal amount of 4.75 % senior notes due 2030 (the "4.75% Notes") for net proceeds of $ 492.5 million after underwriting expenses and commissions of $ 7.5 million.
−Removed: The 4.75 % Notes, issued at par, were offered to qualified institutional buyers and to non-U.S.
−Removed: persons outside the United States in compliance with Rule 144A (for life) and Regulation S of the Securities Act of 1933, as amended (the "Securities Act").
−Removed: Interest due on the 4.75 % Notes is payable semi-annually in February and August and is unconditionally guaranteed on a senior unsecured basis by all of our subsidiary guarantors.
−Removed: On or after February 1, 2027, we may redeem the 4.75 % Notes, in whole or in part and from time to time, at 100 % of the principal amounts plus accrued and unpaid interest.
−Removed: We may redeem the notes prior to their maturity at redemption prices based on a premium, plus accrued and unpaid interest as described in the indenture governing the 4.75 % Notes.
−Removed: Upon occurrence of certain changes in control, we must offer to repurchase the 4.75 % Notes.
−Removed: The 4.75 % Notes are unsecured and are subordinated to all of our existing and future secured debt, rank equally with all of our existing and future unsecured debt and rank senior to all of our existing and future subordinated debt.
−Removed: On the closing of the issuance of the 4.75 % Notes, we used the proceeds, along with cash on hand and our bank credit facility, to redeem $ 850.0 million of our 9.25 % senior notes due 2026.
−Removed: Early Redemption
−Removed: In first quarter 2022, we announced a call for the redemption of $ 850.0 million of our outstanding 9.25% senior notes due 2026 .
−Removed: The redemption price equaled 106.938 % of par plus accrued and unpaid interest.
−Removed: The redemption date was February 1, 2022.
−Removed: 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.
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 on their maturity date.
−Removed: 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.
−Removed: 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,
−Removed: merge, consolidate or make certain investments.
+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, merge, consolidate or make certain investments.
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.
−Removed: We were in compliance with applicable covenants under the bank credit facility at September 30, 2022.
+Added: We were in compliance with applicable covenants under the bank credit facility as of and for the three months ended March 31, 2023.
(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 nine months ended September 30, 2022 and the year ended December 31, 2021 is as follows (in thousands):
−Removed: September 30,
+Added: A reconciliation of our liability for plugging and abandonment costs for three months ended March 31, 2023 and the year ended December 31, 2022 is as follows (in thousands):
Beginning of period
11 unchanged sentences
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.
−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 $ 816.0 million at September 30, 2022.
+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 gain of $ 249.6 million at March 31, 2023.
These contracts expire monthly through December 2024.
−Removed: 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:
+Added: The following table sets forth our commodity-based derivative volumes by year as of March 31, 2023, excluding our basis swaps and divestiture contingent consideration which are discussed separately below:
Contract Type
7 unchanged sentences
429,235 Mmbtu/day
−Removed: Three-way Collars
−Removed: 149,863 Mmbtu/day
−Removed: 469,235 Mmbtu/day
5,000 bbls/day
−Removed: 5,123 bbls/day
January-September 2024
−Removed: NGLs (C2-Ethane)
−Removed: 4,000 bbls/day
−Removed: NGLs (C5-Natural Gasoline)
−Removed: 1,500 bbls/day
−Removed: 2,000 bbls/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 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.
+Added: In addition to the swaps and collars described above, at March 31, 2023, 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 2026 and include a total volume of 366,702,500 Mmbtu.
−Removed: The fair value of these contracts was a gain of $ 23.8 million at September 30, 2022.
+Added: The fair value of these contracts was a loss of $ 50.3 million at March 31, 2023.
Divestiture Contingent Consideration
−Removed: In addition to the derivatives described above, our right to receive contingent consideration in conjunction with the sale of our North Louisiana assets was determined to be a derivative financial instrument that is not designated as a hedging instrument.
−Removed: The remaining contingent consideration of up to $ 45.5 million is based on future achievement of natural gas and oil prices based on published indexes and realized NGLs prices of the buyer for the years 2022 and 2023.
+Added: In addition to the derivatives described above, our right to receive contingent consideration in conjunction with the sale of our North Louisiana assets in third quarter 2020 was determined to be a derivative financial instrument that is not designated as a hedging instrument.
+Added: The remaining contingent consideration of up to $ 21.0 million is based on future achievement of natural gas and oil prices based on published indexes and realized NGLs prices of the buyer for 2023.
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 nine months 2022, this fair value has increased $ 7.8 million for a fair value of $ 34.4 million as of September 30, 2022.
+Added: For first three months 2023, this fair value has decreased $ 3.9 million for a fair value of $ 9.2 million as of March 31, 2023.
+Added: We currently expect to receive $ 24.5 million for the year ended December 31, 2022 which is reflected in current assets in the accompanying consolidated balance sheet.
Derivative Assets and Liabilities
−Removed: 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.
+Added: The combined fair value of derivatives included in the accompanying consolidated balance sheets as of March 31, 2023 and December 31, 2022 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: September 30, 2022
+Added: March 31, 2023
Offset in the
4 unchanged sentences
Derivative assets:
+Added: –swaps
–collars
3 unchanged sentences
–collars
−Removed: –C2 ethane swaps
−Removed: –C5 natural gasoline swaps
−Removed: –C5 natural gasoline collars
Divestiture contingent consideration
−Removed: September 30, 2022
+Added: March 31, 2023
(Liabilities)
8 unchanged sentences
–collars
−Removed: –three-way collars
–basis swaps
–swaps
−Removed: –collars
−Removed: –C2 ethane swaps
−Removed: –C5 natural gasoline collars
December 31, 2022
9 unchanged sentences
–basis swaps
−Removed: –swaps
−Removed: –C3 propane spread
−Removed: –C5 natural gasoline swaps
−Removed: –C5 natural gasoline collars
−Removed: –swaps
+Added: –collars
Divestiture contingent consideration
9 unchanged sentences
–swaps
−Removed: –swaptions
–collars
–three-way collars
−Removed: –calls
–basis swaps
–swaps
−Removed: –C3 propane spread
−Removed: –C5 natural gasoline swaps
−Removed: –C5 natural gasoline collars
−Removed: –swaps
The effects of our derivatives on our consolidated statements of operations are summarized below (in thousands):
−Removed: Derivative Fair Value (Loss) Income
+Added: Derivative Fair Value Income (Loss)
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Commodity swaps
29 unchanged sentences
The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities within the levels of the fair value hierarchy.
−Removed: Significant uses of fair value measurements include:
−Removed: impairment assessments of long-lived assets;
−Removed: recorded value of derivative instruments and trading securities.
−Removed: The need to test long-lived assets can be based on several indicators, including a significant reduction in prices of natural gas, oil and condensate, NGLs, unfavorable adjustments to reserves, significant changes in the expected timing of production, other changes to contracts or changes in the regulatory environment in which a property is located.
Fair Values –
1 unchanged sentence
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 September 30, 2022 using:
+Added: Fair Value Measurements at March 31, 2023 using:
Quoted Prices
Identical Assets
−Removed: September 30,
Trading securities held in the deferred
13 unchanged sentences
–swaps
−Removed: –calls
–collars
1 unchanged sentence
–basis swaps
−Removed: –swaptions
−Removed: –freight swaps
Divesture contingent consideration
1 unchanged sentence
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 September 30, 2022, a portion of our natural gas and oil derivative instruments are NGLs collars.
−Removed: 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.
−Removed: 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: We have utilized a range of implied volatilities from 55 % to 61 % for our NGLs collars with a weighted average implied volatility of 57 %.
−Removed: 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):
−Removed: September 30,
−Removed: Balance at December 31, 2021
−Removed: Total losses:
−Removed: Included in earnings
−Removed: Transfers out of Level 3
−Removed: Balance at September 30, 2022
−Removed: Divestiture Contingent Consideration.
−Removed: In August 2020, we completed the sale of our North Louisiana assets where we are entitled to receive contingent consideration based on future achievement of natural gas and oil prices based on published indexes along with NGLs prices based on the realized NGLs prices of the buyer.
−Removed: We used an option pricing model to estimate the fair value of the contingent consideration using significant Level 2 inputs that include quoted future commodity prices based on active markets.
Trading securities.
2 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 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.
−Removed: 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.
+Added: For first quarter 2023, interest and dividends were $ 179,000 and the mark-to-market adjustment was a gain of $ 3.1 million compared to interest and dividends of $ 115,000 and a mark-to-market loss of $ 4.3 million in first quarter 2022.
+Added: Divestiture Contingent Consideration.
+Added: In August 2020, we completed the sale of our North Louisiana assets where we are entitled to receive contingent consideration based on future achievement of natural gas and oil prices based on published indexes along with NGLs prices based on the realized NGLs prices of the buyer.
+Added: We used an option pricing model to estimate the fair value of the contingent consideration using significant Level 2 inputs that include quoted future commodity prices based on active markets.
Fair Values –
−Removed: 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):
−Removed: September 30, 2022
+Added: The following presents the carrying amounts and the fair values of our financial instruments as of March 31, 2023 and December 31, 2022 (in thousands):
+Added: March 31, 2023
December 31, 2022
8 unchanged sentences
4.75 % senior notes due 2030 (b)
−Removed: 4.875 % senior notes due 2025 (b)
−Removed: 9.25 % senior notes due 2026 (b)
−Removed: 8.25 % senior notes due 2029 (b)
−Removed: 4.75 % senior notes due 2030 (b)
Deferred compensation plan (c)
8 unchanged sentences
Concentrations of Credit Risk
−Removed: 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.
+Added: As of March 31, 2023, 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 September 30, 2022 and $ 568,000 at December 31, 2021.
+Added: Our allowance for uncollectable receivables was $ 308,000 at March 31, 2023 and $ 314,000 at December 31, 2022.
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
−Removed: single counterparty.
−Removed: At September 30, 2022, our derivative counterparties include fifteen financial institutions, of which all but five are secured lenders in our bank credit facility.
−Removed: 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.
+Added: We may also limit the level of exposure with any single counterparty.
+Added: At March 31, 2023, our derivative counterparties include fourteen financial institutions, of which all but six are secured lenders in our bank credit facility.
+Added: At March 31, 2023, our net derivative asset includes an aggregate net payable of $ 22.0 million to five counterparties not included in our bank credit facility and a receivable from the remaining counterparty of $ 6.8 million.
Allowance for Expected Credit Losses.
2 unchanged sentences
(12) STOCK-BASED COMPENSATION PLANS
−Removed: Stock-Based Awards
+Added: Description of the Plans
We have two active equity-based stock plans:
6 unchanged sentences
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Direct operating expense
5 unchanged sentences
Restricted Stock Awards .
−Removed: We grant restricted stock units under our equity-based stock compensation plans.
+Added: We grant restricted stock units under our equity-based stock compensation plans to our employees.
These restricted stock units, which we refer to as restricted stock Equity Awards, generally vest over a three-year period, contingent on the recipient’s continued employment.
The grant date fair value of the Equity Awards is based on the fair market value of our common stock on the date of grant.
+Added: Beginning in 2023, we began granting restricted stock under our equity-based compensation plans that vests at the end of a three-year period for employee grants and a one-year period for non-employee directors.
+Added: Vesting is also based upon the employee's continued employment with us.
+Added: The grant date fair value of these Equity Awards is based on the fair market value of our common stock on the date of grant.
+Added: Prior to vesting, recipients of restricted stock typically earn dividends payable in cash upon vesting but they have no voting rights prior to vesting.
The Compensation Committee also grants restricted stock to certain employees and non-employee directors of the board of directors as part of their compensation.
−Removed: In addition, we also grant restricted stock to certain employees for retention purposes.
−Removed: Compensation expense is recognized over the balance of the vesting period, which is typically three years for employee grants and one year vesting for non-employee directors.
−Removed: In early 2021, vesting for new grants of restricted stock Liability Awards changed to a three-year cliff vesting from a ratable 30%- 30 %- 40 % vesting schedule.
+Added: Compensation expense is recognized over the balance of the vesting period, which is typically at the end of three years for employee grants and at the end of a one-year period for non-employee directors.
All restricted stock awards are issued at prevailing market prices at the time of the grant and the vesting is based upon an employee’s continued employment with us.
Prior to vesting, all restricted stock award recipients have the right to vote such stock and receive dividends thereon.
−Removed: Upon grant of these restricted shares, which we refer to as restricted stock Liability Awards, the majority of these shares are generally placed in our deferred compensation plan and, upon vesting, withdrawals are allowed in either cash or in stock.
+Added: Upon grant of these restricted shares, which we refer to as restricted stock Liability Awards, these shares are placed in our deferred compensation plan and, upon vesting, withdrawals are allowed in either cash or in stock.
These Liability Awards are classified as a liability and are remeasured at fair value each reporting period.
This mark-to-market amount is reported in deferred compensation plan expense in the accompanying consolidated statements of operations.
−Removed: Historically, we have used authorized but unissued shares of stock when restricted stock is granted.
−Removed: However, we can also utilize treasury shares.
−Removed: Stock-Based Performance Units .
−Removed: We grant three types of performance share awards:
−Removed: two based on internal performance conditions which are measured against internal performance metrics and one based on market conditions measured based on Range’s performance relative to a predetermined peer group (TSR Awards or TSR-PSUs).
−Removed: In first quarter 2021, our internal performance metrics were changed to focus on debt reduction and to include an environmental component.
−Removed: For shares granted in 2021, the performance conditions will be measured against internal metrics of Debt/EBITDAX (earnings before interest, taxes, depreciation, amortization and exploration expense) and emission intensity performance.
−Removed: For shares granted in first quarter 2022, the performance conditions will be measured against internal metrics of total net debt (total debt less cash on hand) and emission intensity performance.
+Added: Stock-Based Performance Awards - (PSUs).
+Added: We grant two types of performance share awards:
+Added: one based on performance conditions measured against internal performance metrics and one based on market conditions measured based on Range’s performance relative to a predetermined peer group (TSR Awards).
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 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: 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 metrics 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.
Dividend equivalents accrue during the performance period and are paid in stock at the end of the performance period.
−Removed: The performance period is for three years .
−Removed: Prior to 2021, the performance period for the internal performance metrics was based on annual performance targets earned over a three-year period.
+Added: The performance period is three years .
Restricted Stock –
Equity Awards
−Removed: 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.
−Removed: 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.
−Removed: Restricted stock Equity Awards are not issued to employees until such time as they are vested.
−Removed: Employees do not have the option to receive cash.
+Added: In first three months 2023, we granted 1.6 million restricted stock Equity Awards to employees at an average grant date fair value of $ 25.01 compared to 1.4 million at an average grant date fair value of $ 18.47 in first three months 2022.
+Added: We recorded compensation expense for these outstanding awards of $ 7.5 million in first three months 2023 compared to $ 5.9 million in the same period of 2022.
+Added: Restricted stock Equity Awards are not issued until such time as they are vested and grantees do not have the option to receive cash.
Restricted Stock –
Liability Awards
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: In first three months 2023, we granted 11,000 shares of restricted stock Liability Awards as compensation to employees at an average grant date fair value of $ 24.70 which generally vest at the end of a three-year period.
+Added: In first three months 2022, we granted 602,000 shares of restricted stock Liability Awards as compensation to employees at an average grant date fair value of $ 20.42 with vesting generally at the end of a three-year period.
+Added: We recorded compensation expense for these Liability Awards of $ 1.8 million in first three months 2023 compared to $ 3.6 million in first three months 2022.
+Added: 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 September 30, 2022:
−Removed: Restricted Stock
−Removed: Equity Awards
−Removed: Restricted Stock
−Removed: Liability Awards
−Removed: Average Grant
−Removed: Date Fair Value
−Removed: Average Grant
−Removed: Date Fair Value
−Removed: Outstanding at December 31, 2021
−Removed: Outstanding at September 30, 2022
Stock-Based Performance Units
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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 nine months 2021 and 2022.
−Removed: The following is a summary of our non-vested internal performance awards outstanding at September 30, 2022:
−Removed: Average Grant
−Removed: Date Fair Value
−Removed: Outstanding at December 31, 2021
−Removed: Units granted (a)
−Removed: Vested and issued (b)
−Removed: Outstanding at September 30, 2022
−Removed: Amounts granted reflect the number of performance units granted;
−Removed: however, the actual payout of shares will be between zero and 200 % depending on achievement of specifically identified performance targets.
−Removed: Units granted in first quarter 2022 were to our CEO, CFO and COO only.
−Removed: 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 $ 5.3 million in first nine months 2022 compared to expense of $ 3.8 million in first nine months 2021.
−Removed: 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.
−Removed: The fair value of the TSR-PSUs is estimated on the date of grant using a Monte Carlo simulation model which utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award.
+Added: In first three months 2023, we granted 81,000 internal performance units compared to 153,000 in the same period of the prior year.
+Added: We recorded compensation expense for these awards of $ 948,000 in first three months 2023 compared to expense of $ 1.7 million in first three months 2022.
+Added: These awards 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.
+Added: The fair value of the TSR Awards is estimated on the date of grant using a Monte Carlo simulation model which utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award.
The fair value is recognized as stock-based compensation expense over the three-year performance period.
1 unchanged sentence
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 nine months 2022 and 2021:
−Removed: Nine Months Ended
−Removed: September 30,
+Added: The following assumptions were used to estimate the fair value of these awards granted during first three months 2023 and 2022:
+Added: Three Months Ended
Risk-free interest rate
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Grant date fair value per unit
−Removed: The following is a summary of our non-vested TSR-PSUs award activities:
+Added: In first three months 2023, we granted 64,000 TSR Awards compared to 112,000 in the same period of the prior year.
+Added: We recorded compensation expense of $ 482,000 in first three months 2023 compared to $ 773,000 in the same period of 2022.
+Added: Fair value is amortized over the performance period with no adjustment to the expense recorded for actual targets achieved.
+Added: The following is a summary of the activity for our restricted stock and performance awards at March 31, 2023:
+Added: Restricted Stock
+Added: Equity Awards
+Added: Restricted Stock
+Added: Liability Awards
+Added: Performance Awards
Average Grant
Date Fair Value
+Added: Average Grant
+Added: Date Fair Value
+Added: Average Grant
+Added: Date Fair Value
Outstanding at December 31, 2022
−Removed: Units granted (a)
−Removed: Vested and issued (b)
−Removed: Outstanding at September 30, 2022
−Removed: These amounts reflect the number of performance units granted.
−Removed: The actual payout of shares may be between zero and 200 % of the performance units granted depending on the total shareholder return ranking compared to our peer companies at the vesting date.
−Removed: 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 $ 2.3 million in first nine months 2022 compared to $ 1.9 million in the same period of 2021.
−Removed: Fair value is amortized over the performance period with no adjustment to the expense recorded for actual targets achieved.
+Added: Outstanding at March 31, 2023
+Added: Amounts granted reflect performance units initially granted.
+Added: The actual payout will be between zero and 200 % depending on achievement of either total stockholder return ranking compared to our peers at the vesting date or on the achievement of internal performance targets.
Deferred Compensation Plan
Our deferred compensation plan gives non-employee directors and officers the ability to defer all or a portion of their salaries, bonuses or director fees and invest in Range common stock or make other investments at the individual’s discretion.
−Removed: Range provides a partial matching contribution to officers which vests over three years .
−Removed: In early 2021, vesting for the matching contribution was changed to a three-year cliff vesting schedule.
+Added: Range provides a partial matching contribution to officers which vests at the end of three years .
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.
4 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 loss of $ 5.8 million in third quarter 2022 compared to a mark-to-market loss of $ 34.3 million in third quarter 2021.
−Removed: 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.
−Removed: 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.
−Removed: (13) EXIT AND TERMINATION COSTS
+Added: We recorded a mark-to-market loss of $ 9.4 million in first quarter 2023 compared to a mark-to-market loss of $ 73.3 million in first quarter 2022.
+Added: The Rabbi Trust held 5.5 million shares ( 5.2 million of which were vested) of Range stock at March 31, 2023 compared to 5.6 million shares ( 5.3 million of which were vested) at December 31, 2022.
+Added: (13) EXIT COSTS
In third quarter 2020, we sold our North Louisiana assets and retained certain gathering, transportation and processing obligations which extend into 2030.
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The estimated obligations are included in current and long-term divestiture contract obligation in our consolidated balance sheets.
−Removed: 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.
−Removed: 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.
−Removed: 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 $ 401.2 million at September 30, 2022.
+Added: In first three months 2023, we recorded accretion expense of $ 10.2 million compared to $ 11.0 million in the same period of the prior year.
+Added: The estimated discounted divestiture contract obligation was $ 375.1 million at March 31, 2023.
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 September 30, 2022 was $ 5.7 million.
−Removed: Termination Costs
−Removed: The following summarizes our exit and termination costs for the three and nine months ended September 30, 2022 and 2021 (in thousands):
+Added: The estimated remaining discounted obligation for these transportation capacity releases as of March 31, 2023 was $ 4.5 million.
+Added: The following summarizes our exit costs for the three months ended March 31, 2023 and 2022 (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Severance costs
Transportation contract capacity releases
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Divestiture contract obligation (including accretion
−Removed: The following details the accrued exit and termination cost liability activity for the nine months ended September 30, 2022 (in thousands):
+Added: The following details the accrued exit cost liability activity for the three months ended March 31, 2023 (in thousands):
Balance at December 31, 2022
1 unchanged sentence
Changes in estimate
−Removed: Balance at September 30, 2022
+Added: Balance at March 31, 2023
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 2022:
−Removed: September 30,
Beginning balance
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Ending balance
−Removed: Subsequent to third quarter 2022, we purchased approximately $ 17.3 million shares of our common stock through October 21, 2022.
Stock Repurchase Program
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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 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.
−Removed: The following is a schedule of the change in treasury shares for the three and nine months ended September 30, 2022:
−Removed: September 30,
−Removed: September 30,
+Added: In first three months 2023, we repurchased 400,000 shares at an aggregate cost of $ 9.7 million, including repurchases of $ 1.9 million ( 77,000 shares) that were purchased in March and settled in April.
+Added: The following is a schedule of the change in treasury shares for the three months ended March 31, 2023:
+Added: Three Months Ended
Beginning balance
3 unchanged sentences
(15) SUPPLEMENTAL CASH FLOW INFORMATION
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended
(in thousands)
4 unchanged sentences
Increase in asset retirement costs capitalized
−Removed: Increase (decrease) in accrued capital expenditures
+Added: Increase in accrued capital expenditures
(16) COMMITMENTS AND CONTINGENCIES
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We have incurred and will continue to incur capital, operating and remediation expenditures as a result of environmental laws and regulations.
−Removed: As of September 30, 2022, liabilities for remediation were not material.
−Removed: 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.
+Added: As of March 31, 2023, liabilities for remediation were not material.
+Added: We are not aware of any environmental claims existing as of March 31, 2023 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: Transportation, Gathering and Processing Contracts
−Removed: During second quarter 2022, we entered into an extension of certain long-term gathering agreements that is contingent on the completion of certain construction by the gathering company which is expected to be completed in 2024.
−Removed: Our commitments would increase by a total of approximately $ 800.0 million upon completion of the construction.
−Removed: Lease Commitments
−Removed: During third quarter 2022, we extended a lease for a fleet used in our operations through the end of 2023.
−Removed: 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)
−Removed: September 30,
(in thousands)
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Overview of Our Business
−Removed: We are a Fort Worth, Texas-based independent natural gas, natural gas liquids (NGLs) and oil company primarily engaged in the exploration, development and acquisition of natural gas properties in the Appalachian region of the United States.
+Added: We are a Fort Worth, Texas-based independent natural gas, natural gas liquids (NGLs) and crude oil and condensate company primarily engaged in the exploration, development and acquisition of natural gas properties in the Appalachian region of the United States.
We operate in one segment and have a single company-wide management team that administers all properties as a whole rather than by discrete operating segments.
1 unchanged sentence
Our overarching business objective is to build stockholder value through returns-focused development of natural gas properties.
−Removed: 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.
+Added: 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 assets.
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.
1 unchanged sentence
Our primary near-term focus includes the following:
−Removed: operate safely and efficiently;
+Added: operate safely while being good stewards of the environment;
achieve competitive returns on investments;
−Removed: reduce emissions and target net-zero Scope 1 and Scope 2 greenhouse gas emissions by year-end 2025;
manage liquidity and further improve financial strength;
1 unchanged sentence
improve operational efficiencies and economic returns;
+Added: reduce emissions and target net-zero Scope 1 and Scope 2 greenhouse gas emissions by year-end 2025;
attract and retain quality employees;
12 unchanged sentences
Market Conditions
−Removed: 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 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.
−Removed: As a result, we experienced a significant increase in price realizations.
−Removed: As we continue to monitor the impact of the actions of OPEC and other large producing nations, the Russia-Ukraine conflict, global inventories of oil and gas and the uncertainty associated with recovering oil demand, future monetary policy and governmental policies aimed at transitioning towards lower carbon energy, we expect prices for some or all of the commodities we produce to remain volatile.
−Removed: NYMEX natural gas futures have shown strong improvements based on market expectations that associated gas-related activity in oil basins and dry gas basin activity will show modest rates of growth compared with the past due to infrastructure constraints, capital discipline and core inventory exhaustion.
+Added: As we begin 2023, we believe we are positioned for sustainable long-term success.
+Added: We continue to monitor the impact of the actions of OPEC and other large producing nations, the Russia-Ukraine conflict, global inventories of oil and natural gas, future monetary policy and governmental policies aimed at transitioning towards lower carbon energy and we expect prices for some or all of the commodities we produce to remain volatile.
+Added: For the short-term, natural gas prices declined based on the relatively mild winter and down time at an LNG export facility.
+Added: Longer term natural gas futures have remained strong based on market expectations that associated gas-related activity in oil basins and dry gas basin activity will show modest rates of growth when compared with the past due to infrastructure constraints, capital discipline and core inventory exhaustion.
In addition, the global energy crisis further highlighted the low cost and low emissions shale gas resource base in North America, supporting continued strong structural demand growth for U.S.
−Removed: LNG exports, domestic industrial gas demand and power generation.
−Removed: factors such as the pace and extent of tightening global monetary policy and the effectiveness of responses to combat the COVID-19 virus may impact the recovery of world economic growth and the demand for oil, natural gas and NGLs.
−Removed: 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, fuel and labor, among other items.
+Added: liquified natural gas exports, domestic industrial gas demand and power generation.
+Added: Other factors such as geopolitical disruptions, supply chain disruptions, cost inflation and the pace and
+Added: extent of tightening global monetary policy may impact the supply and demand for oil, natural gas and NGLs.
We continue to assess and monitor the impact and consequences of these factors on our operations.
−Removed: 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:
+Added: While expected commodity prices have declined in 2023 compared to prior year, we believe market data supports a positive outlook given significant new demand is currently under construction.
+Added: Our reduced debt levels combined with risk reduction through hedging have us well positioned within the industry.
+Added: Prices for natural gas, NGLs and oil that we produce significantly impact our revenues and cash flows.
+Added: Natural gas, NGLs and oil benchmarks decreased in first quarter 2023 when compared to the same period of 2022.
+Added: As a result, we experienced a decrease in price realizations.
+Added: The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the three months ended March 31, 2023 and 2022:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Average NYMEX prices (a)
6 unchanged sentences
Consolidated Results of Operations
−Removed: Overview of Third Quarter 2022 Results
−Removed: 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.
−Removed: 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.
−Removed: See page 32 for more information on our derivative fair value loss.
−Removed: 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.
−Removed: Daily production averaged 2.1 Bcfe in both the third quarter 2022 and 2021.
−Removed: Our third quarter 2022 financial and operating performance included the following results:
−Removed: cash flow from operating activities increased $329.1 million from third quarter 2021;
+Added: Overview of First Quarter 2023 Results
+Added: During first quarter 2023, we recognized net income of $481.4 million, or $1.95 per diluted common share compared to a loss of $456.8 million, or $1.86 per diluted common share during first quarter 2022.
+Added: The higher net income in first quarter 2023 compared to first quarter 2022 reflects the impact of lower commodity prices on our reported derivative fair value income (loss) partially offset by the impact of lower commodity prices on our natural gas, NGLs and oil sales.
+Added: See page 29 for more information on our derivative fair value income (loss).
+Added: For first quarter 2023, we experienced a decrease in revenue from the sale of natural gas, NGLs and oil due to a 22% decrease 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 2022 somewhat offset by slightly higher production volumes.
+Added: Daily production averaged 2.1 Bcfe in both first quarter 2023 and 2022.
+Added: Our first quarter 2023 financial and operating performance included the following results:
+Added: cash flow from operating activities increased $68.5 million from first quarter 2022;
paid $19.3 million of dividends, or $0.08 per share;
1 unchanged sentence
enhanced liquidity with the accumulation of cash totaling $227.6 million;
−Removed: 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);
−Removed: 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 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;
−Removed: general and administrative expense per mcfe decreased 16% from same quarter 2021 primarily due to lower legal expenses, including legal settlements;
+Added: revenue from the sale of natural gas, NGLs and oil decreased 29% from the same period of 2022 with a 31% decrease in average realized prices (before cash settlements on our derivatives);
+Added: revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) decreased 14% from the same period of 2022;
+Added: transportation, gathering, processing and compression per mcfe was $1.48 in first quarter 2023 compared to $1.60 in the same period of 2022;
+Added: direct operating expense per mcfe was $0.14 in first quarter 2023 compared to $0.11 in the same period of 2022 primarily due to higher production enhancing workover projects and higher water handling/hauling costs;
+Added: general and administrative expense per mcfe decreased 4% from same period of 2022 primarily due to the impact of higher production volumes;
reduced depletion, depreciation and amortization (“DD&A”) rate per mcfe by 2% from the same period of 2022.
−Removed: 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.
−Removed: Overview of First Nine Months 2022 Results
−Removed: 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.
−Removed: 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.
−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 $1.6 billion in the first nine months 2022 compared to $959.8 million in the first nine months of the prior year.
−Removed: For additional information on our derivative fair value loss, see page 32.
−Removed: 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.
−Removed: Daily production averaged 2.1 Bcfe in both the first nine months 2022 and 2021.
−Removed: Our first nine months 2022 financial and operating performance included the following results:
−Removed: reduced total debt by $571.9 million with cash on hand and operating cash flows;
−Removed: realized a significant improvement in our debt metrics from year-end 2021;
−Removed: paid $19.5 million of dividends;
−Removed: repurchased $308.9 million of our common stock;
−Removed: 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 $776.8 million from first nine months 2021;
−Removed: 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;
−Removed: 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 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;
−Removed: general and administrative expense per mcfe for the first nine months 2022 was the same compared to the same period of 2021;
−Removed: reduced DD&A rate per mcfe by 2% from the same period of 2021.
−Removed: 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.
+Added: Our cash flow from operating activities in first quarter 2023 was $475.0 million, an increase of $68.5 million from first quarter 2022 with a favorable impact from the change in working capital partially offset by lower 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 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).
−Removed: 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.
−Removed: 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):
+Added: In first quarter 2023, natural gas, NGLs and oil sales decreased 29% compared to first quarter 2022 with a 31% decrease in average realized prices (before cash settlements on our derivatives) partially offset by a 3% increase in production.
+Added: The following table illustrates the primary components of natural gas, NGLs and oil sales for the three months ended March 31, 2023 and 2022 (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: 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 nine months ended September 30, 2022 and 2021 is set forth in the following table:
+Added: Our production for the three months ended March 31, 2023 and 2022 is set forth in the following table:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: 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 third quarter 2022 was $3.30 per mcfe compared to $2.00 per mcfe in third quarter 2021.
−Removed: 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.
+Added: Our average realized price received (including all derivative settlements and third-party transportation costs) during first quarter 2023 was $2.52 per mcfe compared to $3.23 per mcfe in first quarter 2022.
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 nine months ended September 30, 2022 and 2021 are shown below:
+Added: Average realized price calculations for three months ended March 31, 2023 and 2022 are shown below:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Average Prices
23 unchanged sentences
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Average natural gas differentials below NYMEX
2 unchanged sentences
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Price (per mcf)
2 unchanged sentences
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Price (per bbl)
1 unchanged sentence
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Price (per bbl)
2 unchanged sentences
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Price (per mcfe)
2 unchanged sentences
NGLs and oil sales
−Removed: Transportation, gathering, processing and compression expense was $323.0 million in third quarter 2022 compared to $296.5 million in third quarter 2021.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: Transportation, gathering, processing and compression expense was $285.5 million in first quarter 2023 compared to $297.8 million in first quarter 2022.
+Added: These third-party costs are lower in first quarter 2023 when compared to first quarter 2022 due to lower fuel prices, lower electricity costs and the impact of lower NGLs prices which result in lower processing costs.
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 nine months ended September 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 months ended March 31, 2023 and 2022 on a per mcf and per barrel basis (in thousands, except for costs per unit):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Transportation, gathering,
3 unchanged sentences
Oil (per bbl)
−Removed: Derivative fair value loss was $457.7 million in third quarter 2022 compared to a loss of $652.2 million in third quarter 2021.
−Removed: 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.
+Added: Derivative fair value income (loss) was income of $368.0 million in first quarter 2023 compared to a loss of $939.1 million in first quarter 2022.
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 the three and nine months ended September 30, 2022 and 2021 (in thousands):
+Added: The following table summarizes the impact of our commodity derivatives for the three months ended March 31, 2023 and 2022 (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Derivative fair value loss per consolidated
+Added: Derivative fair value income (loss) per consolidated
statements of operations
−Removed: Non-cash fair value gain (loss):
+Added: Non-cash fair value income (loss):
Natural gas derivatives
3 unchanged sentences
Divestiture contingent consideration
−Removed: Total non-cash fair value gain (loss) (1)
−Removed: Net cash (payment) receipt on derivative settlements:
+Added: Total non-cash fair value income (loss) (1)
+Added: Net cash receipt (payment) on derivative settlements:
Natural gas derivatives
1 unchanged sentence
NGLs derivatives
−Removed: Total net cash payment
+Added: Total net cash receipt (payment)
Non-cash fair value adjustments on commodity derivatives is a non-U.S.
5 unchanged sentences
This also includes the change in fair value of our divestiture contingent consideration.
−Removed: 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).
−Removed: 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.
−Removed: First nine months 2021 also included $8.8 million received as part of a capacity release agreement.
+Added: Brokered natural gas, marketing and other revenue in first quarter 2023 was $82.1 million compared to $87.4 million in first quarter 2022 which is the result of significantly lower broker sales prices somewhat offset by significantly higher broker sales volumes (volumes not related to our production).
+Added: The three months ended March 31, 2023 includes the receipt of a $3.6 million make-whole payment.
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 nine months ended September 30, 2022 and 2021:
+Added: The following table presents information about certain of our expenses on a per mcfe basis for the three months ended March 31, 2023 and 2022:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Direct operating expense
−Removed: Production and ad valorem tax expense
+Added: Taxes other than income
General and administrative expense
1 unchanged sentence
Depletion, depreciation and amortization expense
−Removed: Direct operating expense was $21.3 million in third quarter 2022 compared to $20.2 million in third quarter 2021.
+Added: Direct operating expense was $27.0 million in first quarter 2023 compared to $20.3 million in first quarter 2022.
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 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 direct operating costs increased in first quarter 2023 primarily due to higher workover costs, higher water handling/hauling costs and higher contract labor and services.
Our costs for services, labor and supplies have increased due to increased demand for those items, supply chain disruptions and inflation.
−Removed: Our production volumes were only slightly lower in third quarter 2022 compared to the same period of the prior year.
−Removed: We incurred $223,000 of workover costs in third quarter 2022 compared to $896,000 in third quarter 2021.
−Removed: 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.
−Removed: 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.
−Removed: Our production volumes decreased 1% in first nine months 2022 compared to the same period of the prior year.
−Removed: We incurred $1.3 million of workover costs in first nine months 2022 compared to $3.3 million in first nine months 2021.
−Removed: 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 nine months ended September 30, 2022 and 2021:
+Added: Our production volumes were slightly higher in first quarter 2023 compared to the same period of the prior year.
+Added: We incurred $2.9 million of workover costs in first quarter 2023 compared to $881,000 in first quarter 2022.
+Added: These costs are expected to enhance production from existing wells.
+Added: On a per mcfe basis, direct operating expense was $0.14 in first quarter 2023 compared to $0.11 in the same quarter of the prior year due to higher workover costs and higher water handling/hauling costs.
+Added: The following table summarizes direct operating expense per mcfe for the three months ended March 31, 2023 and 2022:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Direct operating
2 unchanged sentences
Total direct operating expense
−Removed: Production and ad valorem taxes are paid based on market prices rather than hedged prices.
−Removed: This expense category is predominately comprised of the Pennsylvania impact fee.
+Added: Taxes other than income expense is predominately comprised of the Pennsylvania impact fee which is paid based on market commodity prices.
In February 2012, the Commonwealth of Pennsylvania enacted an “impact fee”
which functions as a tax on unconventional natural gas and oil production from the Marcellus Shale in Pennsylvania.
−Removed: 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.
+Added: This impact fee was $6.8 million in first quarter 2023 compared to $6.6 million in first quarter 2022.
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 $22.5 million in first nine months 2022 compared to $20.1 million in first nine months 2021 due to higher natural gas prices.
−Removed: The following table summarizes production and ad valorem taxes per mcfe for the three and nine months ended September 30, 2022 and 2021:
+Added: This category also includes franchise, real estate and other taxes.
+Added: The following table summarizes taxes other than income per mcfe for the three months ended March 31, 2023 and 2022:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Production and ad valorem taxes
−Removed: Production and ad valorem taxes
−Removed: Total production and ad valorem taxes
−Removed: General and administrative (G&A) expense was $41.2 million in third quarter 2022 compared to $49.1 million in third quarter 2021.
−Removed: 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.
−Removed: On a per mcfe basis, third quarter 2022 G&A expense was 16% lower than third quarter 2021 primarily due to lower legal expenses.
−Removed: 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.
−Removed: On a per mcfe basis, first nine months 2022 G&A expense is equal to the first nine months 2021.
−Removed: The following table summarizes G&A expenses on a per mcfe basis for the three and nine months ended September 30, 2022 and 2021:
+Added: Taxes other than income
+Added: Total taxes other than income
+Added: General and administrative (G&A) expense was $43.1 million in first quarter 2023 compared to $42.5 million in first quarter 2022.
+Added: The first quarter 2023 increase of $609,000 when compared to the same period of 2022 is primarily due to higher salaries and benefits of $3.0 million partially offset by lower stock-based compensation and lower legal fees.
+Added: On a per mcfe basis, first quarter 2023 G&A expense was 4% lower than first quarter 2022 primarily due to the impact of higher production volumes and lower stock-based compensation.
+Added: The following table summarizes G&A expenses on a per mcfe basis for the three months ended March 31, 2023 and 2022:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
General and administrative
2 unchanged sentences
Total general and administrative expense
−Removed: Interest expense was $38.7 million in third quarter 2022 compared to $56.8 million in third quarter 2021.
−Removed: Interest expense was $127.9 million for first nine months 2022 compared to $171.0 million for first nine months 2021.
−Removed: The following table presents information about interest expense per mcfe for the three and nine months ended September 30, 2022 and 2021:
+Added: Interest expense was $32.2 million in first quarter 2023 compared to $47.2 million in first quarter 2022.
+Added: The following table presents information about interest expense per mcfe for the three months ended March 31, 2023 and 2022:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Bank credit facility
5 unchanged sentences
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 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Depletion, depreciation and amortization expense was $90.5 million in third quarter 2022 compared to $93.1 million in third quarter 2021.
−Removed: This decrease is due to a 2% decrease in depletion rates.
−Removed: 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: On an absolute basis, the decrease in interest expense for first quarter 2023 from the same period of 2022 was primarily due to lower overall average outstanding debt balances.
+Added: Average debt outstanding on the bank credit facility for first quarter 2023 was $32.0 million compared to $65.3 million in first quarter 2022 and the weighted average interest rate on the bank credit facility was 8.4% in first quarter 2023 compared to 2.5% in first quarter 2022.
+Added: Depletion, depreciation and amortization expense was $86.6 million in first quarter 2023 compared to $85.6 million in first quarter 2022.
+Added: This increase is due to a 3% increase in production volumes partially offset by a 2% decrease in depletion rates.
+Added: Depletion expense, the largest component of DD&A expense, was $0.44 per mcfe in first quarter 2023 compared to $0.45 per mcfe in first quarter 2022.
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.
−Removed: DD&A expense was $262.6 million in first nine months 2022 compared to $272.1 million in the same period 2021.
−Removed: 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 nine 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 nine months ended September 30, 2022 and 2021:
+Added: The following table summarizes DD&A expense per mcfe for the three months ended March 31, 2023 and 2022:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Depletion and amortization
3 unchanged sentences
Our total operating expenses also include other expenses that generally do not trend with production.
−Removed: These expenses include stock-based compensation, brokered natural gas and marketing expense, exploration expense, abandonment and impairment of unproved properties, exit and termination costs, deferred compensation plan expenses, loss or gain on early extinguishment of debt and gain or loss on sale of assets.
+Added: These expenses include stock-based compensation, brokered natural gas and marketing expense, exploration expense, abandonment and impairment of unproved properties, exit and termination costs, deferred compensation plan expenses and loss or gain on early extinguishment of debt.
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 nine months ended September 30, 2022 and 2021 (in thousands):
+Added: The following table details the allocation of stock-based compensation to functional expense categories for the three months ended March 31, 2023 and 2022 (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Direct operating expense
3 unchanged sentences
Total stock-based compensation
−Removed: 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).
−Removed: 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.
−Removed: 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):
+Added: Brokered natural gas and marketing expense was $67.1 million in first quarter 2023 compared to $93.1 million in first quarter 2022 due to significantly lower commodity prices partially offset by significantly higher broker purchase volumes (volumes not related to our production).
+Added: Other marketing revenue for the three months ended March 31, 2023 includes the receipt of a $3.6 million make-whole payment.
+Added: The following table details our brokered natural gas, marketing and other net margin for the three months ended March 31, 2023 and 2022 (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Brokered natural gas and
7 unchanged sentences
marketing margin
−Removed: 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 third quarter 2022 compared to $5.9 million in third quarter 2021 due to higher delay rentals and other expense.
−Removed: 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.
−Removed: The following table details our exploration expense for the three and nine months ended September 30, 2022 and 2021 (in thousands):
+Added: Exploration expense was $4.6 million in first quarter 2023 compared to $4.7 million in first quarter 2022 due to lower delay rentals and other expense.
+Added: The following table details our exploration expense for the three months ended March 31, 2023 and 2022 (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Delay rentals and other
2 unchanged sentences
Total exploration expense
−Removed: Abandonment and impairment of unproved properties was $3.2 million in third quarter 2022 compared to $2.0 million in third quarter 2021.
−Removed: 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.
−Removed: 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.
−Removed: Exit and termination costs was $11.1 million in third quarter 2022 compared to $11.8 million in third quarter 2021.
−Removed: 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.
−Removed: Exit and termination costs was $58.2 million in first nine months 2022 compared to $9.6 million in first nine months 2021.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: Abandonment and impairment of unproved properties expense was $7.5 million in first quarter 2023 compared to $2.0 million in first quarter 2022.
+Added: Abandonment and impairment of unproved properties for first quarter 2023 increased when compared to the same period of 2022 due to higher estimated lease expirations in Pennsylvania.
+Added: Exit costs were $12.3 million in first quarter 2023 compared to $11.1 million in first quarter 2022.
+Added: In first quarter 2023, we recorded $10.3 million accretion expense primarily related to retained liabilities for certain gathering, transportation and processing obligations extending until 2030 compared to accretion expense of $11.1 million in the same quarter of the prior year.
+Added: Deferred compensation plan expense was a loss of $9.4 million in first quarter 2023 compared to a loss of $73.3 million in first quarter 2022.
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 increased from $24.75 at June 30, 2022 to $25.26 at September 30, 2022.
−Removed: 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.
−Removed: 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.
−Removed: Our stock price increased from $17.83 at December 31, 2021 to $25.26 at September 30, 2022.
−Removed: 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.
−Removed: 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.
+Added: Our stock price increased from $25.02 at December 31, 2022 to $26.47 at March 31, 2023.
+Added: In the same period of the prior year, our stock price increased from $17.83 at December 31, 2021 to $30.38 at March 31, 2022.
+Added: Loss on early extinguishment of debt was a loss of $69.2 million in first three months 2022.
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 $59.6 million in third quarter 2022 compared to benefit of $29.7 million in third quarter 2021.
−Removed: 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.
+Added: Income tax expense (benefit) was an expense of $121.9 million in first quarter 2023 compared to benefit of $116.1 million in first quarter 2022.
The 2023 and 2022 effective tax rates were different than the statutory tax rate due to state income taxes, equity compensation, valuation allowances and other discrete tax items.
−Removed: 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 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.
−Removed: The following table presents sources and uses of cash and cash equivalents for the nine months ended September 30, 2022 and 2021 (in thousands):
−Removed: Nine Months Ended
−Removed: September 30,
+Added: As of March 31, 2023, we have entered into derivative agreements covering 226.1 Bcfe for the remainder of 2023 and 213.4 Bcfe for 2024, not including our basis swaps.
+Added: The following table presents sources and uses of cash and cash equivalents for the three months ended March 31, 2023 and 2022 (in thousands):
+Added: Three Months Ended
Sources of cash and cash equivalents
15 unchanged sentences
Sources of Cash and Cash Equivalents
−Removed: 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.
+Added: Cash flows provided from operating activities in first three months 2023 was $475.0 million compared to $406.4 million in first three months 2022.
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 nine months 2021 to first nine months 2022 reflects significantly higher realized prices partially offset by lower production volumes.
−Removed: 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.
−Removed: 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 nine months 2022 were negative $277.6 million compared to a negative $143.6 million for first nine months 2021.
−Removed: Issuance of senior notes in first nine months 2022 includes the issuance of $500.0 million new 4.75% senior notes due 2030.
+Added: The increase in cash provided from operating activities from first three months 2022 to first three months 2023 reflects the impact of a favorable change in working capital (the timing of cash receipts and disbursements) and slightly higher production volumes partially offset by lower realized prices.
+Added: As of March 31, 2023, we have hedged more than 40% of our projected total production for the remainder of 2023, with more than 50% of our projected natural gas production hedged.
+Added: Changes in working capital (as reflected in our consolidated statements of cash flows) for first three months 2023 were positive $79.7 million compared to a negative $77.4 million for first three months 2022.
Uses of Cash and Cash Equivalents
−Removed: Additions to natural gas properties for first nine months 2022 were consistent with expectations relative to our announced 2022 capital budget.
+Added: Additions to natural gas properties for first three months 2023 were consistent with expectations relative to our announced 2023 capital budget.
We continue to monitor inflationary pressures given the labor market, commodity prices and supply chain challenges.
−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 with any increase in our 2022 capital program due to the impact of cost inflation.
−Removed: 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.
−Removed: 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 nine months 2022 include the repurchase of 10.6 million shares as part of our previously announced stock repurchase program.
+Added: Treasury stock purchases for first three months 2023 include the repurchase of 323,000 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 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.
+Added: As of March 31, 2023, we had cash on hand in the amount of $227.6 million and availability under our credit facility of $1.2 billion.
Sources of Cash
We expect our 2023 capital program to be funded by cash flows from operations.
−Removed: During the nine months ended September 30, 2022, we generated $1.3 billion of cash flows from operating activities.
−Removed: 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.
+Added: During the three months ended March 31, 2023, we generated $475.0 million of cash flows from operating activities.
+Added: As of March 31, 2023, we had approximately $1.4 billion of liquidity, consisting of $1.2 billion available under our bank credit facility and $227.6 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.
We may draw on our bank credit facility to meet short-term cash requirements.
−Removed: 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.
Although we expect cash flows and capacity under the existing credit facility to be sufficient to fund our expected 2023 capital program, we may also have the option to raise funds through new debt or equity offerings or from other sources of financing.
−Removed: 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.
−Removed: We have no control over market prices for natural gas, NGLs or oil, although we may be able to influence the amount of realized revenues through the use of derivative contracts as part of our commodity price risk management.
+Added: All of our sources of liquidity can be affected by the general conditions of the broader economy, force majeure events and fluctuations in commodity prices, operating costs and volumes produced, all of which affect us and our industry.
+Added: We have no control over market prices for natural gas, NGLs or oil, although we may be able to influence realized revenues through the use of derivative contracts as part of our commodity price risk management.
Bank Credit Facility
Our bank credit facility is secured by substantially all of our assets.
−Removed: 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.
−Removed: We also have undrawn letters of credit of $330.5 million as of September 30, 2022.
−Removed: We were in compliance with the applicable covenants under the bank credit facility as of September 30, 2022.
+Added: As of March 31, 2023, 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 $292.3 million as of March 31, 2023.
+Added: We were in compliance with the applicable covenants under the bank credit facility as of March 31, 2023.
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.
−Removed: Our scheduled borrowing base redetermination was completed in September 2022 with our borrowing base and commitments reaffirmed.
−Removed: On April 14, 2022 we entered into an amended and restated revolving bank credit facility.
−Removed: The new facility has a maximum facility amount of $4.0 billion, a borrowing base of $3.0 billion and aggregate lender commitments of $1.5 billion.
−Removed: The maturity of the new bank credit facility is April 14, 2027.
−Removed: See Note 8 for additional information.
−Removed: 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.
−Removed: 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%.
+Added: Our scheduled borrowing base redetermination was completed in March 2023 with our borrowing base and commitments reaffirmed.
+Added: Our daily weighted-average bank credit facility debt balance was $32.0 million for first three months ended March 31, 2023 compared to $65.3 million for the same period of the prior year.
+Added: 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%.
The applicable spread is dependent upon borrowings relative to the borrowing base.
1 unchanged sentence
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.
−Removed: Expenditures for the development, exploration and acquisition of natural gas and oil properties are the primary use of our capital resources.
−Removed: 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.
+Added: Expenditures for the development, exploration and acquisition of natural gas properties are the primary use of our capital resources.
+Added: During first three months 2023, we funded $138.3 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.
4 unchanged sentences
The amounts involved may be material.
−Removed: Our next significant long-term debt maturity is in the amount of $528.6 million due 2023 which is callable in December 2022.
−Removed: As part of our strategy for 2022, we will continue to focus on improving our debt metrics.
−Removed: 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: Our next significant long-term debt maturity is in the amount of $750.0 million due 2025.
+Added: As part of our strategy for 2023, we will continue to focus on improving our financial strength.
+Added: Our quarterly cash dividend was reinstated in third quarter of 2022.
See also Cash Dividend Payments below.
−Removed: 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 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.
−Removed: 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).
−Removed: The total remaining share repurchase authorization was approximately $186.1 million at September 30, 2022.
−Removed: 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.
+Added: During the first three months 2023, we repurchased 400,000 shares of our common stock at an aggregate cost of $9.7 million (including 77,000 shares purchased in March and settled in April).
+Added: The total remaining share repurchase authorization was approximately $1.1 billion at March 31, 2023.
Shelf Registration
1 unchanged sentence
Cash Dividend Payments
−Removed: 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.
+Added: On March 1, 2023, our board of directors approved a dividend of $0.08 per share payable on March 31, 2023 to stockholders of record at the close of business on March 15, 2023.
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.
1 unchanged sentence
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 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.
−Removed: As of September 30, 2022, we had a total of $330.5 million of undrawn letters of credit under our bank credit facility.
−Removed: 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.
+Added: As of March 31, 2023, 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 March 31, 2023, we had a total of $292.3 million of undrawn letters of credit under our bank credit facility.
+Added: Since December 31, 2022, there have been no material changes to our contractual obligations.
Interest Rates
−Removed: At September 30, 2022, we had approximately $2.4 billion of debt outstanding which bore interest at fixed rates averaging 5.7%.
−Removed: We had no variable rate debt outstanding at September 30, 2022.
+Added: At March 31, 2023, we had approximately $1.9 billion of debt outstanding which bore interest at fixed rates averaging 5.9%.
+Added: We had no variable rate debt outstanding at March 31, 2023.
Off-Balance Sheet Arrangements
22 unchanged sentences
While management believes that these forward-looking statements are reasonable when made, there can be no assurance that future developments affecting us will be those that we anticipate.
−Removed: All comments concerning our expectations for future revenues and operating results are based on our current forecasts for our existing operations and do not include the potential impact of any future events.
+Added: All comments concerning our expectations for future revenues and operating results are based on our current
+Added: forecasts for our existing operations and do not include the potential impact of any future events.
We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
21 unchanged sentences
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 September 30, 2022.
+Added: These risks did not change materially from December 31, 2022 to March 31, 2023.
Commodity Price Risk
3 unchanged sentences
Our derivatives program can also include collars, which establish a minimum floor price and a predetermined ceiling price.
−Removed: We have also entered into natural gas derivative instruments containing a fixed price swap and a sold option (which we refer to as a swaption).
Our program may also include a three-way collar which is a combination of three options.
−Removed: At September 30, 2022, our derivative program includes swaps, collars and three-way collars.
−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 September 30, 2022, approximated a net unrealized pretax loss of $816.0 million.
+Added: At March 31, 2023, 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 March 31, 2023, approximated a net unrealized pretax gain of $249.6 million.
These contracts expire monthly through December 2024.
−Removed: At September 30, 2022, the following commodity derivative contracts were outstanding, excluding our basis swaps which are discussed below:
+Added: At March 31, 2023, the following commodity derivative contracts were outstanding, excluding our basis swaps which are discussed below:
Contract Type
1 unchanged sentence
Weighted Average Hedge Price
−Removed: Fair Market Value
−Removed: (in thousands)
+Added: Fair Market Value (in thousands)
354,636 Mmbtu/day
4 unchanged sentences
429,235 Mmbtu/day
−Removed: Three-way Collars
−Removed: 149,863 Mmbtu/day
−Removed: 469,235Mmbtu/day
5,000 bbls/day
−Removed: 5,123 bbls/day
January-September 2024
−Removed: NLGs (C2-Ethane)
−Removed: 4,000 bbls/day
−Removed: NGLs (C5-Natural Gasoline)
−Removed: 1,500 bbls/day
−Removed: 2,000 bbls/day
We believe NGLs prices are somewhat seasonal, particularly for propane.
13 unchanged sentences
Basis swap agreements effectively fix the basis adjustments.
−Removed: 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.
−Removed: 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.
−Removed: The fair value at September 30, 2022 was a gain of $34.4 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 September 30, 2022.
+Added: The fair value of the natural gas basis swaps was a loss of $50.3 million at March 31, 2023 and they settle monthly through December 2026.
+Added: At March 31, 2023, we are entitled to receive contingent consideration associated with the sale of our North Louisiana assets, annually through 2023, of up to $21.0 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 March 31, 2023 was a gain of $9.2 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 March 31, 2023.
We remain at risk for possible changes in the market value of commodity derivative instruments;
5 unchanged sentences
Three-way collars
−Removed: Divestiture contingent consideration
+Added: Divestiture contingent
+Added: consideration
Our commodity-based derivative contracts expose us to the credit risk of non-performance by the counterparty to the contracts.
1 unchanged sentence
Our derivative contracts are with multiple counterparties to minimize our exposure to any individual counterparty.
−Removed: 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 March 31, 2023, our derivative counterparties include fourteen financial institutions, of which all but six are secured lenders in our bank credit facility.
Counterparty credit risk is considered when determining the fair value of our derivative contracts.
4 unchanged sentences
This is accomplished through a mix of fixed rate senior and, at times, variable rate bank debt.
−Removed: At September 30, 2022, we had $2.4 billion of debt outstanding which bears interest at fixed rates averaging 5.7%.
−Removed: We had no variable rate bank debt outstanding as of September 30, 2022.
+Added: At March 31, 2023, we had $1.9 billion of debt outstanding which bears interest at fixed rates averaging 5.9%.
+Added: We had no variable rate bank debt outstanding as of March 31, 2023.
CONTROLS A ND PROCEDURES
2 unchanged sentences
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 September 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 March 31, 2023 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 September 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 March 31, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
P ART II –
1 unchanged sentence
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.