3 unchanged sentences
(In thousands, except per share data)
+Added: September 30,
Current assets:
31 unchanged sentences
Common stock, $ 0.01 par, 475,000,000 shares authorized, 265,755,947 issued at
−Removed: June 30, 2023 and 262,887,265 issued at December 31, 2022
−Removed: Common stock held in treasury, 24,401,065 shares at June 30, 2023 and 24,001,535 shares
−Removed: at December 31, 2022
+Added: September 30, 2023 and 262,887,265 issued at December 31, 2022
+Added: Common stock held in treasury, 24,401,065 shares at September 30, 2023 and
+Added: 24,001,535 shares at December 31, 2022
Additional paid-in capital
7 unchanged sentences
(Unaudited, in thousands, except per share data)
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
Revenues and other income:
15 unchanged sentences
Total costs and expenses
−Removed: Income (loss) before income taxes
−Removed: Income tax (benefit) expense:
−Removed: Net income (loss)
−Removed: Net income (loss) per common share:
+Added: Income before income taxes
+Added: Income tax expense:
+Added: Net income per common share:
Dividends declared per share
2 unchanged sentences
RANGE RESOURCES CORPORATION
−Removed: CONSOLIDATED STATEMENTS OF COMP REHENSIVE INCOME (LOSS)
+Added: CONSOLIDATED STATEMENTS OF COMP REHENSIVE INCOME
(Unaudited, in thousands)
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
−Removed: Net income (loss)
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
Other comprehensive income:
2 unchanged sentences
Income tax benefit
−Removed: Total comprehensive income (loss)
+Added: Total comprehensive income
The accompanying notes are an integral part of these consolidated financial statements.
2 unchanged sentences
(Unaudited, in thousands)
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
Operating activities:
−Removed: Net income (loss)
−Removed: Adjustments to reconcile net income (loss) to net cash
−Removed: provided from operating activities:
−Removed: Deferred income tax expense (benefit)
+Added: Adjustments to reconcile net income to net cash provided from operating activities:
+Added: Deferred income tax expense
Depletion, depreciation and amortization
48 unchanged sentences
vesting of PSUs
−Removed: Stock-based compensation
−Removed: Cash dividends paid ($ 0.08 per
+Added: Stock-based compensation expense
+Added: Cash dividends paid
+Added: ($ 0.08 per share)
Treasury stock
3 unchanged sentences
Issuance of common stock
−Removed: Stock-based compensation
−Removed: Cash dividends paid ($ 0.08 per
+Added: Stock-based compensation expense
+Added: Cash dividends paid
+Added: ($ 0.08 per share)
Treasury stock
2 unchanged sentences
Balance as of June 30, 2023
+Added: Issuance of common stock
+Added: Stock-based compensation expense
+Added: Cash dividends paid
+Added: ($ 0.08 per share)
+Added: Other comprehensive income
+Added: Balance as of September 30, 2023
The accompanying notes are an integral part of these consolidated financial statements.
4 unchanged sentences
comprehensive
+Added: (loss) income
Balance as of December 31, 2021
2 unchanged sentences
upon vesting of PSUs
−Removed: Stock-based compensation
+Added: Stock-based compensation expense
Treasury stock
2 unchanged sentences
Issuance of common stock
−Removed: Stock-based compensation
+Added: Stock-based compensation expense
Treasury stock
1 unchanged sentence
Balance as of June 30, 2022
+Added: Issuance of common stock
+Added: Cash dividends paid
+Added: ($ 0.08 per share)
+Added: Stock-based compensation expense
+Added: Treasury stock
+Added: Other comprehensive income
+Added: Balance as of September 30, 2022
The accompanying notes are an integral part of these consolidated financial statements.
11 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 second quarter and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year.
+Added: The results of operations for third quarter and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the full year.
We make certain reclassifications to prior year statements to conform with the current year presentation.
2 unchanged sentences
Not Yet Adopted
−Removed: There were no issued pending accounting standards expected to have a material impact on our consolidated financial statements.
+Added: There were no issued or pending accounting standards expected to have 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: Other marketing revenue for the three months ended June 30, 2023 includes the receipt of a $ 1.5 million make-whole payment and the six months ended June 30, 2023 includes a total of $ 5.1 million in make-whole payments.
−Removed: Accounts receivable attributable to our revenue contracts with customers was $ 165.8 million at June 30, 2023 and $ 463.3 million at December 31, 2022.
+Added: Other marketing revenue for the nine months ended September 30, 2023 includes the receipt of $ 5.1 million in make-whole payments.
+Added: Accounts receivable attributable to our revenue contracts with customers was $ 208.6 million at September 30, 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: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Natural gas sales
9 unchanged sentences
Income taxes for discrete items are computed and recorded in the period that a specific transaction occurs.
−Removed: For three months and six months ended June 30, 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.
+Added: For three months and nine months ended September 30, 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: (6) INCOME (LOSS) PER COMMON SHARE
+Added: (6) INCOME PER COMMON SHARE
Basic income or loss per share attributable to common shareholders is computed as (1) income or loss attributable to common shareholders (2) less income allocable to participating securities (3) divided by weighted average basic shares outstanding.
Diluted income or loss per share attributable to common shareholders is computed as (1) basic income or loss attributable to common shareholders (2) plus diluted adjustments to income allocable to participating securities (3) divided by weighted average diluted shares outstanding.
−Removed: The following sets forth a reconciliation of income or loss attributable to common shareholders to basic income or loss attributable to common shareholders to diluted income or loss attributable to common shareholders (in thousands, except per share amounts):
+Added: The following sets forth a reconciliation of income or loss to basic income or loss attributable to common shareholders to diluted income or loss attributable to common shareholders (in thousands, except per share amounts):
Three Months Ended
−Removed: Six Months Ended
−Removed: Net income (loss), as reported
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
+Added: Net income, as reported
Participating earnings (a)
−Removed: Basic net income (loss) attributed to common
+Added: Basic net income attributed to common
Reallocation of participating earnings (a)
−Removed: Diluted net income (loss) attributed to common
−Removed: Net income (loss) per common share:
−Removed: Restricted Stock Awards represent participating securities because they participate in nonforfeitable dividends or distributions with common equity owners.
+Added: Diluted net income attributed to common
+Added: Net income per common share:
+Added: Restricted Stock Liability Awards represent participating securities because they participate in nonforfeitable dividends or distributions with common equity owners.
Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities.
2 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Weighted average common shares outstanding –
4 unchanged sentences
Weighted average common shares outstanding –
−Removed: basic for second quarter 2023 excludes 5.4 million shares of restricted stock held in our deferred compensation plan compared to 6.7 million shares in second quarter 2022 (although all awards are issued and outstanding upon grant).
+Added: basic for third quarter 2023 excludes 3.1 million shares of restricted stock held in our deferred compensation plan compared to 5.7 million shares in third quarter 2022 (although all awards are issued and outstanding upon grant).
Weighted average common shares outstanding –
−Removed: basic for first six months 2023 excludes 5.5 million shares of restricted stock held in our deferred compensation plan compared to 6.4 million shares for first six months 2022.
−Removed: For the three months ended June 30, 2022, 2,000 equity grants 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 computation.
−Removed: Due to our net loss for first six months 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.
+Added: basic for first nine months 2023 excludes 4.7 million shares of restricted stock held in our deferred compensation plan compared to 6.2 million shares for first nine months 2022.
+Added: For the three months ended September 30, 2023, equity grants of 9,000 shares compared to 2,000 shares in the same period of the prior year 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: For both the nine months ended September 30, 2023 and September 30, 2022, equity grants of 3,000 shares were outstanding but not included in the computation of diluted net income because the shares would be anti-dilutive to the computations.
(7) Capitalized Costs and Accumulated Depreciation, Depletion and Amortization (a)
+Added: September 30,
(in thousands)
7 unchanged sentences
We had the following debt outstanding as of the dates shown below.
−Removed: No interest was capitalized during the six months ended June 30, 2023 or the year ended December 31, 2022 (in thousands).
+Added: No interest was capitalized during the nine months ended September 30, 2023 or the year ended December 31, 2022 (in thousands).
+Added: September 30,
Senior notes:
8 unchanged sentences
The bank credit facility also provides for a borrowing base subject to periodic redeterminations and for event-driven unscheduled redeterminations.
−Removed: As of June 30, 2023, our bank group was composed of seventeen financial institutions.
+Added: As of September 30, 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: We had no outstanding balance on our credit facility during second quarter 2023.
−Removed: The weighted average interest rate was 4.1 % for second quarter 2022.
−Removed: The weighted average interest rate was 8.4 % for first six months 2023 compared to 3.4 % for first six months of 2022.
+Added: We had no outstanding balance on our credit facility during third quarter 2023.
+Added: The weighted average interest rate was 5.7 % for third quarter 2022.
+Added: The weighted average interest rate was 8.4 % for first nine months 2023 compared to 3.7 % for first nine months of 2022.
A commitment fee is paid on the undrawn balance based on an annual rate of 0.375 % to 0.50 %.
−Removed: At June 30, 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.
−Removed: 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.
−Removed: On June 30, 2023, we had no outstanding borrowings on our bank credit facility.
+Added: At September 30, 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 September 2023, our borrowing base was reaffirmed for $ 3.0 billion and our bank commitment was also reaffirmed at $ 1.5 billion.
+Added: On September 30, 2023, we had no outstanding borrowings on our bank credit facility.
Additionally, we had $ 262.8 million of undrawn letters of credit, leaving $ 1.2 billion of committed borrowing capacity available under the facility.
13 unchanged sentences
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 June 30, 2023.
+Added: We were in compliance with applicable covenants under the bank credit facility at September 30, 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 the six months ended June 30, 2023 and the year ended December 31, 2022 is as follows (in thousands):
+Added: A reconciliation of our liability for plugging and abandonment costs for the nine months ended September 30, 2023 and the year ended December 31, 2022 is as follows (in thousands):
+Added: September 30,
Beginning of period
11 unchanged sentences
We utilize commodity swaps, collars, three-way collars or swaptions to (1) reduce the effect of price volatility of the commodities we produce and sell and (2) support our annual capital budget, fixed costs 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 gain of $ 216.8 million at June 30, 2023.
+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 $ 192.1 million at September 30, 2023.
These contracts expire monthly through December 2026.
−Removed: The following table sets forth our commodity-based derivative volumes by year as of June 30, 2023, excluding our basis swaps and divestiture contingent consideration which are discussed separately below:
+Added: The following table sets forth our commodity-based derivative volumes by year as of September 30, 2023, excluding our basis swaps and divestiture contingent consideration which are discussed separately below:
Contract Type
14 unchanged sentences
January-September 2024
−Removed: We sold natural gas swaptions on 90,000 Mmbtu/day for 2025 at a weighted average price of $ 4.25 /Mmbtu.
−Removed: These swaptions expire December 31, 2023 .
+Added: 3,664 bbls/day
+Added: January-September 2024
+Added: We also sold natural gas swaptions of 90,000 Mmbtu/day for calendar year 2025 at a weighted average price of $ 4.25 /Mmbtu that expire December 2023 .
+Added: Additionally, we sold natural gas swaptions of 20,000 Mmbtu/day for calendar year 2026 at a weighted average price of $ 4.10 /Mmbtu that expire June 2024 .
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 commodity derivatives described above, at June 30, 2023, 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 commodity derivatives described above, at September 30, 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 357,645,000 Mmbtu.
−Removed: The fair value of these contracts was a gain of $ 30.7 million at June 30, 2023.
+Added: The fair value of these contracts was a gain of $ 17.1 million at September 30, 2023.
Divestiture Contingent Consideration
−Removed: We have the right to receive contingent consideration in conjunction with the sale of our North Louisiana assets in third quarter 2020 that is a derivative financial instrument not designated as a hedging instrument.
+Added: We have the right to receive contingent consideration in conjunction with the sale of our North Louisiana assets in August 2020 that is a derivative financial instrument not designated as a hedging instrument.
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 six months 2023, this fair value has decreased $ 4.9 million for a fair value of $ 8.1 million as of June 30, 2023.
+Added: For first nine months 2023, this fair value has decreased $ 5.7 million for a fair value of $ 7.4 million as of September 30, 2023.
Derivative Assets and Liabilities
−Removed: The combined fair value of derivatives included in the accompanying consolidated balance sheets as of June 30, 2023 and December 31, 2022 is summarized below.
+Added: The combined fair value of derivatives included in the accompanying consolidated balance sheets as of September 30, 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: June 30, 2023
+Added: September 30, 2023
Offset in the
12 unchanged sentences
Divestiture contingent consideration
−Removed: June 30, 2023
+Added: September 30, 2023
(Liabilities)
42 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Commodity swaps
32 unchanged sentences
The following tables present the fair value hierarchy for assets and liabilities measured at fair value, on a recurring basis (in thousands):
−Removed: Fair Value Measurements at June 30, 2023 using:
+Added: Fair Value Measurements at September 30, 2023 using:
Quoted Prices
Identical Assets
−Removed: Trading securities held in the deferred
−Removed: compensation plans
+Added: September 30,
+Added: Trading securities held in the deferred compensation plans
Commodity price derivatives
8 unchanged sentences
Identical Assets
−Removed: Trading securities held in the deferred
−Removed: compensation plans
+Added: Trading securities held in the deferred compensation plans
Commodity price derivatives
8 unchanged sentences
However, the subjectivity in the volatility factors utilized can cause a significant change in the fair value measurement and is considered a significant unobservable input.
−Removed: As of June 30, 2023, a portion of our natural gas instruments contain swaptions where the counterparty has the right, but not the obligation, to enter into a fixed price swap on a pre-determined date.
+Added: As of September 30, 2023, a portion of our natural gas instruments contain swaptions where the counterparty has the right, but not the obligation, to enter into a fixed price swap on a pre-determined date.
If exercised, the swaption contract becomes a swap treated consistently with our fixed-price swaps.
−Removed: At June 30, 2023, we used a weighted average implied volatility of 19 % for natural gas for our swaptions.
+Added: At September 30, 2023, we used a weighted average implied volatility of 19 % for natural gas for our swaptions.
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: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
Balance at December 31, 2022
1 unchanged sentence
Included in earnings
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 2023
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 second quarter 2023, interest and dividends were $ 435,000 and the mark-to-market adjustment was a gain of $ 2.6 million compared to interest and dividends of $ 175,000 and a mark-to-market loss of $ 9.6 million in second quarter 2022.
−Removed: For first six months 2023, interest and dividends were $ 614,000 and the mark-to-market adjustment was a gain of $ 5.7 million compared to interest and dividends of $ 291,000 and a mark-to-market loss of $ 14.0 million in first six months 2022.
+Added: For third quarter 2023, interest and dividends were $ 331,000 and the mark-to-market adjustment was a loss of $ 3.5 million compared to interest and dividends of $ 318,000 and a mark-to-market loss of $ 2.6 million in third quarter 2022.
+Added: For first nine months 2023, interest and dividends were $ 945,000 and the mark-to-market adjustment was a gain of $ 2.2 million compared to interest and dividends of $ 609,000 and a mark-to-market loss of $ 16.6 million in first nine months 2022.
Divestiture Contingent Consideration.
5 unchanged sentences
Our proved natural gas and oil properties are reviewed for impairment periodically as events or changes in circumstances indicate the carrying amount may not be recoverable.
−Removed: There were no proved property impairment charges in second quarter or first six months 2023.
+Added: There were no proved property impairment charges in third quarter or first nine months 2023.
Fair Values –
−Removed: The following presents the carrying amounts and the fair values of our financial instruments as of June 30, 2023 and December 31, 2022 (in thousands):
−Removed: June 30, 2023
+Added: The following presents the carrying amounts and the fair values of our financial instruments as of September 30, 2023 and December 31, 2022 (in thousands):
+Added: September 30, 2023
December 31, 2022
9 unchanged sentences
Deferred compensation plan (c)
−Removed: Marketable securities, which are held in our deferred compensation plans, are actively traded on major exchanges.
−Removed: The book value of our bank debt approximates fair value because of its floating rate structure.
+Added: (a) Marketable securities, which are held in our deferred compensation plans, are actively traded on major exchanges.
+Added: (b) The book value of our bank debt approximates fair value because of its floating rate structure.
The fair value of our senior notes is based on end of period market quotes which are Level 2 inputs.
−Removed: The fair value of our deferred compensation plan is updated to the closing price on the balance sheet date which is a Level 1 input.
+Added: (c) The fair value of our deferred compensation plan is updated to the closing price on the balance sheet date which is a Level 1 input.
Our current assets and liabilities include financial instruments, the most significant of which are trade accounts receivable and payable.
We believe the carrying values of our current assets and liabilities approximate fair value.
−Removed: Our fair value assessment incorporates a variety of considerations, including (1) the short-term duration of the instruments and (2) our historical and expected occurrence of bad debt expense.
+Added: Our fair value assessment incorporates a variety of considerations, including (1) the short-term duration of the instruments and (2) our historical and expected incurrence of bad debt expense.
Non-financial liabilities initially measured at fair value include asset retirement obligations, operating lease liabilities and the divestiture contract obligation that we incurred in conjunction with the sale of our North Louisiana assets.
Concentrations of Credit Risk
−Removed: As of June 30, 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.
+Added: As of September 30, 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 $ 308,000 at June 30, 2023 and $ 314,000 at December 31, 2022.
−Removed: 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.
+Added: Our allowance for uncollectible receivables was $ 308,000 at September 30, 2023 and $ 314,000 at December 31, 2022.
+Added: Our derivative exposure to credit risk is diversified primarily among major investment grade financial institutions, where we have master netting
+Added: 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.
We may also limit the level of exposure with any single counterparty.
−Removed: At June 30, 2023, our derivative counterparties include fourteen financial institutions, of which all but six are secured lenders in our bank credit facility.
−Removed: At June 30, 2023, our net derivative asset includes an aggregate net receivable of $ 20.5 million from five counterparties not included in our bank credit facility and a payable to the remaining counterparty of $ 190,000 .
+Added: At September 30, 2023, our derivative counterparties include fourteen financial institutions, of which all but six are secured lenders in our bank credit facility.
+Added: At September 30, 2023, our net derivative asset includes an aggregate net receivable of $ 15.8 million from five counterparties not included in our bank credit facility and a payable to the remaining counterparty of $ 48,000 .
Allowance for Expected Credit Losses.
11 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Direct operating expense
8 unchanged sentences
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.
−Removed: 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: 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 at the end of a one-year period for non-employee directors.
Vesting is also based upon the employee's continued employment with us.
17 unchanged sentences
Equity Awards
−Removed: In first six 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 $ 18.50 in first six months 2022.
−Removed: We recorded compensation expense for these outstanding awards of $ 15.3 million in first six months 2023 compared to $ 10.9 million in the same period of 2022.
+Added: In first nine months 2023, we granted 1.6 million restricted stock Equity Awards to employees at an average grant date fair value of $ 25.09 compared to 1.4 million at an average grant date fair value of $ 18.59 in first nine months 2022.
+Added: We recorded compensation expense for these outstanding awards of $ 23.4 million in first nine months 2023 compared to $ 15.9 million in the same period of 2022.
Restricted stock Equity Awards are not issued until such time as they are vested and grantees do not have the option to receive cash.
1 unchanged sentence
Liability Awards
−Removed: In first six 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 and 8,000 shares were granted to non-employee directors at an average price of $ 25.07 with vesting at the end of one year .
−Removed: In first six months 2022, we granted 602,000 shares of restricted stock Liability Awards as compensation to employees at an average grant date fair value of $ 20.43 with vesting generally 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: We recorded compensation expense for these Liability Awards of $ 2.7 million in first six months 2023 compared to $ 6.9 million in first six months 2022.
+Added: In first nine months 2023, we granted 13,000 shares of restricted stock Liability Awards as compensation to employees at an average grant date fair value of $ 25.61 which generally vest at the end of a three-year period and 8,000 shares were granted to non-employee directors at an average price of $ 25.07 with vesting at the end of one year .
+Added: In first nine months 2022, we granted 603,000 shares of restricted stock Liability Awards as compensation to employees at an average grant date fair value of $ 20.43 with vesting generally at the end of a three-year period and 47,000 shares were granted to non-employee directors at an average price of $ 27.52 with vesting at the end of one year .
+Added: We recorded compensation expense for these Liability Awards of $ 3.3 million in first nine months 2023 compared to $ 10.3 million in first nine months 2022.
These awards are held in our deferred compensation plan, are classified as a liability and are remeasured at fair value each reporting period.
5 unchanged sentences
If the performance metric for the applicable period is not met, that portion is considered forfeited and there is an adjustment to the expense recorded.
−Removed: In first six months 2023, we granted 81,000 internal performance units compared to 153,000 in the same period of the prior year.
−Removed: We recorded compensation expense for these awards of $ 1.4 million in first six months 2023 compared to expense of $ 3.5 million in first six months 2022.
+Added: In first nine 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 $ 1.8 million in first nine months 2023 compared to expense of $ 5.3 million in first nine months 2022.
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.
3 unchanged sentences
The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the life of the grant.
−Removed: The following assumptions were used to estimate the fair value of these awards granted during first six months 2023 and 2022:
−Removed: Six Months Ended
+Added: The following assumptions were used to estimate the fair value of these awards granted during first nine months 2023 and 2022:
+Added: Nine Months Ended
+Added: September 30,
Risk-free interest rate
1 unchanged sentence
Grant date fair value per unit
−Removed: In first six months 2023, we granted 64,000 TSR Awards compared to 112,000 in the same period of the prior year.
−Removed: We recorded compensation expense of $ 886,000 in first six months 2023 compared to $ 1.5 million in the same period of 2022.
+Added: In first nine 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 $ 1.3 million in first nine months 2023 compared to $ 2.3 million in the same period of 2022.
Fair value is amortized over the performance period with no adjustment to the expense recorded for actual targets achieved.
−Removed: The following is a summary of the activity for our restricted stock and performance awards at June 30, 2023:
+Added: The following is a summary of the activity for our restricted stock and performance awards at September 30, 2023:
Restricted Stock
9 unchanged sentences
Date Fair Value
−Removed: Outstanding at
−Removed: December 31, 2022
−Removed: Outstanding at June 30, 2023
+Added: Outstanding at December 31, 2022
+Added: Outstanding at September 30, 2023
Amounts granted reflect performance units initially granted.
2 unchanged sentences
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 at the end of three years .
+Added: Range provides a partial matching contribution to officers which generally 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 $ 11.2 million in second quarter 2023 compared to a mark-to-market gain of $ 19.2 million in second quarter 2022.
−Removed: We recorded a mark-to-market loss of $ 20.5 million in first six months 2023 compared to a mark-to-market loss of $ 54.1 million in first six months 2022.
−Removed: The Rabbi Trust held 3.1 million shares ( 2.9 million of which were vested) of Range stock at June 30, 2023 compared to 5.6 million shares ( 5.3 million of which were vested) at December 31, 2022.
+Added: We recorded a mark-to-market loss of $ 9.0 million in third quarter 2023 compared to a mark-to-market loss of $ 5.8 million in third quarter 2022.
+Added: We recorded a mark-to-market loss of $ 29.5 million in first nine months 2023 compared to a mark-to-market loss of $ 59.9 million in first nine months 2022.
+Added: The Rabbi Trust held 2.4 million shares ( 2.3 million of which were vested) of Range stock at September 30, 2023 compared to 5.6 million shares ( 5.3 million of which were vested) at December 31, 2022.
(13) EXIT COSTS
2 unchanged sentences
The estimated obligations are included in current and long-term divestiture contract obligation in our consolidated balance sheets.
+Added: In first nine months 2023, we recorded accretion expense of $ 31.6 million compared to $ 33.0 million in the same period of the prior year.
In second quarter 2023, we recorded a net adjustment of $ 37.8 million to increase this obligation primarily for higher rates due to inflation.
In second quarter 2022, we recorded a net adjustment of $ 24.8 million to increase the obligation for a change in our forecasted drilling plans of the buyer.
−Removed: In first six months 2023, we recorded accretion expense of $ 21.0 million compared to $ 22.1 million in the same period of the prior year.
−Removed: The estimated discounted divestiture contract obligation was $ 400.0 million at June 30, 2023.
+Added: The estimated discounted divestiture contract obligation was $ 389.9 million at September 30, 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 June 30, 2023 was $ 3.8 million.
−Removed: The following summarizes our exit costs for the three and six months ended June 30, 2023 and 2022 (in thousands):
+Added: The estimated remaining discounted obligation for these transportation capacity releases as of September 30, 2023 was $ 3.2 million.
+Added: The following summarizes our exit costs for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Transportation contract capacity releases
(including accretion of discount)
−Removed: Divestiture contract obligation (including accretion
−Removed: The following details the accrued exit cost liability activity for the six months ended June 30, 2023 (in thousands):
+Added: Divestiture contract obligation
+Added: (including accretion of discount)
+Added: The following details the accrued exit cost liability activity for the nine months ended September 30, 2023 (in thousands):
Balance at December 31, 2022
1 unchanged sentence
Changes in estimate
−Removed: Balance at June 30, 2023
+Added: Balance at September 30, 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: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
Beginning balance
6 unchanged sentences
Stock Repurchase Program
−Removed: In 2019, the board of directors approved a stock purchase program to acquire up to $ 100.0 million of our outstanding common stock.
−Removed: In early 2022, our board authorized an additional repurchase of up to $ 430.0 million of our outstanding common stock for an aggregate available amount at that time of $ 500.0 million.
−Removed: On October 21, 2022, our board of directors authorized an additional repurchase of up to $ 1.0 billion for common stock repurchases.
+Added: In 2019, the board of directors approved a stock repurchase program which was increased in size in 2022.
+Added: At September 30, 2023, we had a remaining authorization to repurchase up to approximately $ 1.1 billion of our common stock.
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.
Purchases under the program are made at our discretion and may change based upon market conditions.
−Removed: In first six months 2023, we repurchased 400,000 shares at an aggregate cost of $ 9.7 million.
−Removed: The following is a schedule of the change in treasury shares for the three and six months ended June 30, 2023:
+Added: In first nine months 2023, we repurchased 400,000 shares at an aggregate cost of $ 9.7 million.
+Added: The following is a schedule of the change in treasury shares for the three and nine months ended September 30, 2023:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Beginning balance
3 unchanged sentences
(15) SUPPLEMENTAL CASH FLOW INFORMATION
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
(in thousands)
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
6 unchanged sentences
We have incurred and will continue to incur capital, operating and remediation expenditures as a result of environmental laws and regulations.
−Removed: As of June 30, 2023, liabilities for remediation were not material.
−Removed: We are not aware of any environmental claims existing as of June 30, 2023 that have not been provided for or would otherwise have a material impact on our financial position or results of operations.
+Added: As of September 30, 2023, liabilities for remediation were not material.
+Added: We are not aware of any environmental claims existing as of September 30, 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.
(17) Costs Incurred for Property Acquisition, Exploration and Development (a)
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
(in thousands)
37 unchanged sentences
We believe we are positioned for sustainable long-term success.
−Removed: 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 given the complex dynamics of supply and demand that exist in the market.
+Added: We continue to monitor the impact of the actions of OPEC and other large producing nations, the Russia-Ukraine conflict, hostilities in the Middle East, 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 given the complex dynamics of supply and demand that exist in the market.
In first quarter 2023, natural gas prices declined based on the relatively mild winter and extended down time at a liquefied natural gas export facility.
Subsequently, high levels of domestic U.S.
−Removed: gas storage compared with the five-year average kept natural gas prices below $3.00 in second quarter 2023.
−Removed: 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.
+Added: gas storage compared with the five-year average kept natural gas prices below $3.00 in both the second and third quarter 2023.
+Added: Longer term natural gas futures have remained stronger 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: liquefied natural gas exports, domestic industrial gas demand and power
−Removed: Other factors such as geopolitical disruptions, supply chain disruptions, cost inflation, concerns over a potential economic recession and the pace and extent of tightening global monetary policy may impact the supply and demand for oil, natural gas and NGLs.
+Added: liquefied natural gas exports, domestic industrial gas demand and power generation.
+Added: Other factors such as geopolitical disruptions, supply chain disruptions, cost inflation, concerns over a potential economic recession and the
+Added: pace and 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.
2 unchanged sentences
Prices for natural gas, NGLs and oil that we produce significantly impact our revenues and cash flows.
−Removed: Natural gas, NGLs and oil benchmarks significantly decreased in second quarter 2023 when compared to the same period of 2022 and also decreased in first six months 2023 compared to the same period of 2022.
+Added: Natural gas, NGLs and oil benchmarks significantly decreased in third quarter 2023 when compared to the same period of 2022 and also decreased in first nine months 2023 compared to the same period of 2022.
As a result, we experienced a significant decrease in price realizations.
−Removed: The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the three and six months ended June 30, 2023 and 2022:
+Added: The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Average NYMEX prices (a)
6 unchanged sentences
Consolidated Results of Operations
−Removed: Overview of Second Quarter 2023 Results
−Removed: During second quarter 2023, we recognized net income of $30.2 million, or $0.12 per diluted common share compared to net income of $452.9 million, or $1.77 per diluted common share during second quarter 2022.
−Removed: The lower net income in second quarter 2023 compared to second quarter 2022 reflects the impact of significantly lower commodity prices on our natural gas, NGLs and oil sales and on our reported derivative fair value income (loss).
−Removed: In addition, we recorded a mark-to-market loss on our deferred compensation plan compared to a gain in the same period of the prior year.
+Added: Overview of Third Quarter 2023 Results
+Added: During third quarter 2023, we recognized net income of $49.4 million, or $0.20 per diluted common share compared to net income of $373.1 million, or $1.49 per diluted common share during third quarter 2022.
+Added: The lower net income in third quarter 2023 compared to third quarter 2022 reflects the impact of significantly lower commodity prices on our natural gas, NGLs and oil sales, on our reported derivative fair value income (loss) and on our transportation gathering, processing and compression expense.
See page 29 for more information on our derivative fair value income (loss).
−Removed: For second quarter 2023, we experienced a decrease in revenue from the sale of natural gas, NGLs and oil due to a 56% 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.
−Removed: Daily production averaged 2.1 Bcfe in both the second quarter 2023 and 2022.
−Removed: Our second quarter 2023 financial and operating performance included the following results:
−Removed: revenue from the sale of natural gas, NGLs and oil decreased 65% from the same period of 2022 with a 66% decrease in average realized prices (before cash settlements on our derivatives);
+Added: For third quarter 2023, we experienced a decrease in revenue from the sale of natural gas, NGLs and oil due to a 49% 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.
+Added: Daily production averaged 2.1 Bcfe in both the third quarter 2023 and 2022.
+Added: Our third quarter 2023 financial and operating performance included the following results:
+Added: revenue from the sale of natural gas, NGLs and oil decreased 63% from the same period of 2022 with a 63% decrease in average realized prices (before cash settlements on our derivatives) and slightly lower production volumes;
revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) decreased 38% from the same period of 2022;
−Removed: transportation, gathering, processing and compression per mcfe was $1.42 in second quarter 2023 compared to $1.74 in the same period of 2022 primarily due to lower prices;
−Removed: direct operating expense per mcfe was $0.13 in second quarter 2023 compared to $0.11 in the same period of 2022 primarily due to higher equipment costs, higher water handling/hauling costs, higher contract labor and services and higher workovers;
−Removed: general and administrative expense per mcfe decreased 9% from same period of 2022 primarily due to lower stock-based compensation costs and lower legal fees;
+Added: transportation, gathering, processing and compression per mcfe was $1.42 in third quarter 2023 compared to $1.65 in the same period of 2022 primarily due to lower commodity prices;
+Added: direct operating expense per mcfe was $0.12 in third quarter 2023 compared to $0.11 in the same period of 2022 primarily due to higher water handling/hauling costs along with higher workovers and stock-based compensation;
+Added: general and administrative expense per mcfe decreased 5% from same period of 2022 primarily due to lower general office expenses, including technology costs;
interest expense per mcfe decreased 20% from the same period of 2022 due to lower debt balances;
depletion, depreciation and amortization ("DD&A") rate per mcfe decreased 2% from the same period of 2022.
−Removed: During second quarter 2023, we continued to enhance our balance sheet, return capital to investors and preserve liquidity:
−Removed: paid $19.3 million of dividends, or $0.08 per share compared to none in second quarter 2022;
−Removed: repurchased $1.9 million of our common stock;
−Removed: repurchased in the open market $61.6 million face value of our 4.875% senior notes due 2025 at a discount;
−Removed: as of June 30, we have $162.1 million of cash along with $1.2 billion available under our credit facility.
−Removed: Our cash flow from operating activities in second quarter 2023 was $126.6 million, a decrease of $198.1 million from the second quarter 2022 with significantly lower commodity prices partially offset by a favorable impact from the change in working capital.
−Removed: Overview of First Six Months 2023 Results
−Removed: During first six months 2023, we recognized net income of $511.7 million, or $2.07 per diluted common share compared to a net loss of $4.0 million, or $0.02 per diluted common share during first six months 2022.
−Removed: The improvement in our net income for first six months 2023 compared to 2022 reflects the impact of significantly lower commodity prices on our reported derivative fair value income or loss.
−Removed: Given the significant decrease in commodity prices, our derivative fair value income or loss, which includes the non-cash fair value adjustment related to our derivatives, was a gain of $491.7 million in first six months 2023 compared to a loss of $1.2 billion in first six months of the prior year.
−Removed: In addition, first six months 2023 includes a gain on extinguishment of debt compared to a loss in the same period of the prior year offset by the impact of significantly lower commodity prices on our natural gas, NGLs and oil sales.
+Added: Third quarter 2023 also included the following highlights to enhance our balance sheet, return capital to investors and preserve liquidity:
+Added: paid $19.3 million of dividends, or $0.08 per share compared to $19.5 million, or $0.08 per share in third quarter 2022;
+Added: as of September 30, we have $162.8 million of cash on hand along with $1.2 billion available under our credit facility.
+Added: Our cash flow from operating activities in third quarter 2023 was $150.3 million, a decrease of $370.7 million from the third quarter 2022 with significantly lower commodity prices and the impact from the change in working capital.
+Added: Overview of First Nine Months 2023 Results
+Added: During first nine months 2023, we recognized net income of $561.1 million, or $2.27 per diluted common share compared to a net income of $369.1 million, or $1.45 per diluted common share during first nine months 2022.
+Added: The improvement in our net income for first nine months 2023 compared to 2022 reflects the impact of significantly lower commodity prices on our reported derivative fair value income or loss.
+Added: Given the significant decrease in commodity prices, our derivative fair value income or loss, which includes the non-cash fair value adjustment related to our derivatives, was a gain of $530.1 million in first nine months 2023 compared to a loss of $1.6 billion in first nine months of the prior year.
+Added: In addition, first nine months 2023 includes the impact of significantly lower commodity prices on our natural gas, NGLs and oil sales partially offset by a gain on extinguishment of debt compared to a loss in the same period of the prior year.
For additional information on our derivative fair value income (loss), see page 29.
−Removed: For first six months 2023, we experienced a decrease in revenue from the sale of natural gas, NGLs and oil due to a 39% decrease in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) somewhat offset by slightly higher production volumes when compared to the same period of 2022.
−Removed: Daily production averaged 2.1 Bcfe in both the first six months 2023 and 2022.
−Removed: Our first six months 2023 financial and operating performance included the following results:
+Added: For first nine months 2023, we experienced a decrease in revenue from the sale of natural gas, NGLs and oil due to a 42% decrease in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) somewhat offset by slightly higher production volumes when compared to the same period of 2022.
+Added: Daily production averaged 2.1 Bcfe in both the first nine months 2023 and 2022.
+Added: Our first nine months 2023 financial and operating performance included the following results:
revenue from the sale of natural gas, NGLs and oil decreased 55% from the same period of 2022 with a 55% decrease in average realized prices (before cash settlements on our derivatives) partially offset by slightly higher production volumes;
revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) decreased 32% from the same period of 2022;
−Removed: transportation, gathering, processing and compression per mcfe was $1.45 in first six months 2023 compared to $1.67 in the same period of 2022 due to lower prices;
−Removed: direct operating expense per mcfe was $0.13 in first six months 2023 compared to $0.11 in the same period of 2022 due to higher workovers along with higher water handling/hauling costs and higher contract labor and service costs;
−Removed: general and administrative expense per mcfe for the first six months 2023 decreased 4% from the same period of 2022 primarily due to lower stock-based compensation and lower legal fees;
+Added: transportation, gathering, processing and compression expense per mcfe was $1.44 in first nine months 2023 compared to $1.66 in the same period of 2022 primarily due to lower commodity prices;
+Added: direct operating expense per mcfe was $0.13 in first nine months 2023 compared to $0.11 in the same period of 2022 due to higher workovers along with higher water handling/hauling costs and higher contract labor and service costs;
+Added: general and administrative expense per mcfe for the first nine months 2023 decreased 5% from the same period of 2022 primarily due to lower stock-based compensation costs;
interest expense per mcfe decreased 27% from the same period of 2022 due to lower debt balances;
DD&A rate per mcfe decreased 2% from the same period of 2022.
−Removed: First six months 2023 also included the following highlights to enhance our balance sheet, return capital to investors and preserve liquidity:
−Removed: paid $38.6 million in dividends or $0.16 per share compared to none in first six months 2022;
−Removed: repurchased $9.7 million of our common stock;
+Added: First nine months 2023 also included the following highlights to enhance our balance sheet, return capital to investors and preserve liquidity:
+Added: paid $57.9 million in dividends or $0.24 per share compared to $19.5 million or $0.08 per share in first nine months 2022;
+Added: repurchased $9.7 million of our common stock compared to $308.9 million in the same period of 2022;
repurchased in the open market $61.6 million face value of our 4.875% senior notes due 2025 at a discount;
enhanced liquidity with the accumulation of cash totaling $162.8 million along with $1.2 billion available under our credit facility.
−Removed: Our cash flow from operating activities in first six months 2023 was $601.5 million, a decrease of $129.6 million from the same period of 2022 with significantly lower realized prices partially offset by slightly higher production volumes and a favorable impact from the change in working capital.
+Added: Our cash flow from operating activities in first nine months 2023 was $751.8 million, a decrease of $500.3 million from the same period of 2022 with significantly lower realized prices partially offset by slightly higher production volumes and the impact from the change in working capital.
Natural Gas, NGLs and Oil Sales, Production and Realized Price Calculations
1 unchanged sentence
Our revenues are generally recognized when control of the product is transferred to the customer and collectability is reasonably assured.
−Removed: In second quarter 2023, natural gas, NGLs and oil sales decreased 65% compared to second quarter 2022 with a 66% decrease in average realized prices (before cash settlements on our derivatives) and slightly higher production.
−Removed: In first six months 2023, natural gas, NGLs and oil sales decreased 50% compared to the same period of 2022 with a 51% decrease in average realized prices (before cash settlements on derivatives) partially offset by a 2% increase in production.
−Removed: The following table illustrates the primary components of natural gas, NGLs and oil sales for the three and six months ended June 30, 2023 and 2022 (in thousands):
+Added: In third quarter 2023, natural gas, NGLs and oil sales decreased 63% compared to third quarter 2022 with a 63% decrease in average realized prices (before cash settlements on our derivatives).
+Added: In first nine months 2023, natural gas, NGLs and oil sales decreased 55% compared to the same period of 2022 with a 55% decrease in average realized prices (before cash settlements on derivatives) partially offset by slightly higher production volumes.
+Added: The following table illustrates the primary components of natural gas, NGLs and oil sales for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Natural gas, NGLs
3 unchanged sentences
Our production is determined by drilling success which offsets the natural decline of our natural gas and oil reserves through production.
−Removed: Our production for the three and six months ended June 30, 2023 and 2022 is set forth in the following table:
+Added: Our production for the three and nine months ended September 30, 2023 and 2022 is set forth in the following table:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Production (a)
9 unchanged sentences
Oil and NGLs volumes are converted to mcfe at the rate of one barrel equals six mcf based upon the approximate relative energy content of oil to natural gas, which is not indicative of the relationship between oil and natural gas prices.
−Removed: Our average realized price received (including all derivative settlements and third-party transportation costs) during second quarter 2023 was $1.46 per mcfe compared to $3.29 per mcfe in second quarter 2022.
−Removed: Our average realized price received (including all derivative settlements and third-party transportation costs) during first six months 2023 was $1.99 per mcfe compared to $3.26 per mcfe in first six months 2022.
+Added: Our average realized price received (including all derivative settlements and third-party transportation costs) during third quarter 2023 was $1.67 per mcfe compared to $3.30 per mcfe in third quarter 2022.
+Added: Our average realized price received (including all derivative settlements and third-party transportation costs) during first nine months 2023 was $1.89 per mcfe compared to $3.27 per mcfe in first nine months 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 six months ended June 30, 2023 and 2022 are shown below:
+Added: Average realized price calculations for three and nine months ended September 30, 2023 and 2022 are shown below:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Average Prices
23 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Average natural gas differentials below NYMEX
−Removed: Realized (losses) gains on basis hedging
+Added: Realized gains on basis hedging
The following tables reflect our production and average realized commodity prices (excluding derivative settlements and third-party transportation costs paid by Range) (in thousands, except prices):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Price (per mcf)
Production (Mmcf)
+Added: Natural gas sales
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Price (per bbl)
+Added: Production (Mbbls)
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Price (per bbl)
+Added: Production (Mbbls)
+Added: Crude oil sales
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Price (per mcfe)
+Added: Production (Mmcfe)
Total natural gas,
−Removed: Transportation, gathering, processing and compression expense was $268.2 million in second quarter 2023 compared to $327.9 million in second quarter 2022.
−Removed: These third-party costs are lower in second quarter 2023 when compared to second quarter 2022 due to lower fuel prices, lower electricity costs and the impact of lower NGLs prices which result in lower processing costs.
−Removed: The second quarter 2022 included a one-time adjustment of $7.5 million for a settlement regarding transportation, gathering and processing charges.
−Removed: Transportation, gathering, processing and compression expense was $553.7 million in the first six months 2023 compared to $625.7 million in the same period of the prior year.
−Removed: These third party costs are lower in first six months 2023 when compared to the same period of 2022 due to the impact of lower NGL prices which result in lower processing costs, lower electricity and fuel costs.
+Added: NGLs and oil sales
+Added: Transportation, gathering, processing and compression expense was $277.2 million in third quarter 2023 compared to $323.0 million in third quarter 2022.
+Added: These third-party costs are lower in third quarter 2023 when compared to third quarter 2022 due to lower fuel prices, lower electricity costs and the impact of lower NGLs prices which result in lower processing costs.
+Added: Transportation, gathering, processing and compression expense was $830.9 million in the first nine months 2023 compared to $948.7 million in the same period of the prior year.
+Added: These third party costs are lower in first nine months 2023 when compared to the same period of 2022 due to the impact of lower NGL prices which result in lower processing costs, lower electricity and fuel 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 six months ended June 30, 2023 and 2022 on a per mcf and per barrel basis (in thousands, except for costs per unit):
+Added: The following table summarizes transportation, gathering, processing and compression expense for the three and nine months ended September 30, 2023 and 2022 on a per mcf and per barrel basis (in thousands, except for costs per unit):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Transportation, gathering,
3 unchanged sentences
Oil (per bbl)
−Removed: Derivative fair value income (loss) was income of $123.7 million in second quarter 2023 compared to a loss of $239.9 million in second quarter 2022.
−Removed: Derivative fair value income was $491.7 million in first six months 2023 compared to a loss of $1.2 billion in the same period of the prior year.
+Added: Derivative fair value income (loss) was income of $38.4 million in third quarter 2023 compared to a loss of $457.7 million in
+Added: third quarter 2022.
+Added: Derivative fair value income was $530.1 million in first nine months 2023 compared to a loss of $1.6 billion in the same period of the prior year.
All of our derivatives are accounted for using the mark-to-market accounting method.
2 unchanged sentences
Gains on our derivatives generally indicate potentially lower wellhead revenues in the future while losses indicate potentially higher future wellhead revenues.
−Removed: The following table summarizes the impact of our commodity derivatives for the three and six months ended June 30, 2023 and 2022 (in thousands):
+Added: The following table summarizes the impact of our commodity derivatives for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Derivative fair value income (loss) per
consolidated statements of operations
−Removed: Non-cash fair value income (loss):
+Added: Non-cash fair value (loss) income:
Natural gas derivatives
3 unchanged sentences
Divestiture contingent consideration
−Removed: Total non-cash fair value income (loss) (a)
+Added: Total non-cash fair value (loss) income (a)
Net cash receipt (payment) on derivative settlements:
10 unchanged sentences
This also includes the change in fair value of our divestiture contingent consideration.
−Removed: Brokered natural gas, marketing and other revenue in second quarter 2023 was $44.9 million compared to $108.2 million in second quarter 2022 which is the result of significantly lower broker sales prices somewhat offset by higher broker sales volumes (volumes not related to our production).
−Removed: The revenue in second quarter 2023 also includes the receipt of a $1.5 million make-whole payment and $1.8 million of interest income.
−Removed: Brokered natural gas, marketing and other revenue was $127.0 million in first six months 2023 compared to $195.6 million in first six months 2022 which is the result of significantly lower broker sales prices somewhat offset by higher broker sales volumes.
−Removed: The six months ended June 30, 2023 also includes the receipt of $5.1 million in make-whole payments and $2.7 million of interest income.
+Added: Brokered natural gas, marketing and other revenue in third quarter 2023 was $44.6 million compared to $133.1 million in third quarter 2022 which is the result of significantly lower broker sales prices somewhat offset by higher broker sales volumes (volumes not related to our production).
+Added: The revenue in third quarter 2023 also includes the receipt of $1.3 million of interest income.
+Added: Brokered natural gas, marketing and other revenue was $171.6 million in first nine months 2023 compared to $328.7 million in first nine months 2022 which is the result of significantly lower broker sales prices somewhat offset by higher broker sales volumes.
+Added: The nine months ended September 30, 2023 also includes the receipt of $5.1 million in make-whole payments and $4.0 million of interest income.
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: Our costs for certain services, labor and supplies have remained high due to on-going demand and, to a lesser extent, inflation and supply chain disruptions, all of which affected the cost of our operations throughout 2022.
−Removed: Market conditions suggest these costs will continue to stabilize in the second half of 2023.
−Removed: The following table presents information about certain of our expenses on a per mcfe basis for the three and six months ended June 30, 2023 and 2022:
+Added: Our costs for certain services, labor and supplies have been impacted by on-going demand and, to a lesser extent, inflation and supply chain disruptions, all of which affected the cost of our operations in 2022 and first nine months of 2023.
+Added: The following table presents information about certain of our expenses on a per mcfe basis for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Direct operating expense
Taxes other than income
−Removed: General and administrative
+Added: General and administrative expense
Interest expense
1 unchanged sentence
amortization expense
−Removed: Direct operating expense was $23.9 million in second quarter 2023 compared to $20.1 million in second quarter 2022.
−Removed: Direct operating expenses include normally recurring expenses to operate and produce our wells, non-recurring well workovers and repair-related expenses.
−Removed: Our direct operating costs increased in second quarter 2023 primarily due to higher water handling/hauling costs, higher equipment costs and higher contract labor and services along with higher workover costs.
−Removed: Our production volumes were slightly higher in second quarter 2023 compared to the same period of the prior year.
−Removed: We incurred $784,000 of workover costs in second quarter 2023 compared to $203,000 in second quarter 2022.
+Added: Direct operating expense was $22.6 million in third quarter 2023 compared to $21.3 million in third quarter 2022.
+Added: Direct operating expenses include normally recurring expenses to operate and produce our wells, well workovers and repair-related expenses.
+Added: Our direct operating costs increased in third quarter 2023 primarily due to higher water handling/hauling costs, higher equipment costs and higher contract labor and services along with higher workover costs.
+Added: Our production volumes were slightly lower in third quarter 2023 compared to the same period of the prior year.
+Added: We incurred $603,000 of workover costs in third quarter 2023 compared to $223,000 in third quarter 2022.
These costs are expected to enhance production from existing wells.
−Removed: On a per mcfe basis, direct operating expense was $0.13 in second quarter 2023 compared to $0.11 in the same quarter of the prior year due to higher equipment costs and higher water handling/hauling costs.
−Removed: Direct operating expense was $50.9 million in the first six months 2023 compared to $40.3 million in the same period of the prior year.
−Removed: Our direct operating costs increased in the first six months 2023 when compared to the same period of the prior year due to higher workover costs, higher water handling/hauling costs and higher contract labor and services.
−Removed: We incurred $3.7 million of workover costs in first six months 2023 compared to $1.1 million of workover costs in first six months 2022.
+Added: On a per mcfe basis, direct operating expense was $0.12 in third quarter 2023 compared to $0.11 in the same quarter of the prior year due to higher workovers and stock-based compensation expense.
+Added: Direct operating expense was $73.4 million in the first nine months 2023 compared to $61.6 million in the same period of the prior year.
+Added: Our direct operating costs increased in the first nine months 2023 when compared to the same period of the prior year due to higher workover costs, higher water handling/hauling costs, higher contract labor and services along with higher equipment costs.
+Added: We incurred $4.3 million of workover costs in first nine months 2023 compared to $1.3 million of workover costs in first nine months 2022.
These costs are expected to enhance production from existing wells.
−Removed: On a per mcfe basis direct operating costs increased $0.02 from $0.11 to $0.13 due to higher workover costs and higher water/hauling costs.
−Removed: The following table summarizes direct operating expense per mcfe for the three and six months ended June 30, 2023 and 2022:
+Added: On a per mcfe basis, direct operating costs increased $0.02 from $0.11 to $0.13 due to higher workover costs and higher water handling/hauling costs.
+Added: The following table summarizes direct operating expense per mcfe for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Direct operating
1 unchanged sentence
Stock-based compensation
−Removed: Total direct operating
+Added: Total direct operating expense
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 $6.7 million in second quarter 2023 compared to $7.5 million in second quarter 2022.
+Added: This impact fee was $4.5 million in third quarter 2023 compared to $8.4 million in third quarter 2022.
The impact fee is based on drilling activities and is adjusted based on prevailing natural gas prices.
−Removed: Taxes other than income includes an impact fee of $13.5 million in first six months 2023 compared to $14.1 million in the first six months 2022 which reflects lower natural gas prices.
+Added: Taxes other than income includes an impact fee of $18.0 million in first nine months 2023 compared to $22.5 million in first nine months 2022 which reflects lower natural gas prices.
This category also includes franchise, real estate and other taxes.
−Removed: The following table summarizes taxes other than income per mcfe for the three and six months ended June 30, 2023 and 2022:
+Added: The following table summarizes taxes other than income per mcfe for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Taxes other than income
−Removed: Total taxes other than
−Removed: General and administrative (G&A) expense was $39.5 million in second quarter 2023 compared to $42.9 million in second quarter 2022.
−Removed: The second quarter 2023 decrease of $3.4 million when compared to the same period of 2022 is primarily due to lower stock-based compensation expense and lower legal fees.
−Removed: On a per mcfe basis, second quarter 2023 G&A expense was 9% lower than second quarter 2022 primarily due to lower stock-based compensation and lower legal fees.
−Removed: G&A expense for first six months 2023 decreased $2.8 million when compared to the same period of 2022 due to lower stock-based compensation expense of $3.8 million and lower legal fees partially offset by higher salaries and benefits.
−Removed: On a per mcfe basis first six months 2023 G&A expense decreased 4% from the first six months of the prior year due to lower stock-based compensation.
−Removed: The following table summarizes G&A expenses on a per mcfe basis for the three and six months ended June 30, 2023 and 2022:
+Added: Total taxes other than income
+Added: General and administrative (G&A) expense was $38.1 million in third quarter 2023 compared to $40.6 million in third quarter 2022.
+Added: The third quarter 2023 decrease of $2.5 million when compared to the same period of 2022 is primarily due to lower stock-based compensation expense and lower general office costs, including technology costs.
+Added: On a per mcfe basis, third quarter 2023 G&A expense was 5% lower than third quarter 2022 primarily due to lower general office expenses.
+Added: G&A expense for first nine months 2023 decreased $5.2 million when compared to the same period of 2022 due to lower stock-based compensation expense of $5.8 million and lower legal fees partially offset by higher salaries and benefits.
+Added: On a per mcfe basis, first nine months 2023 G&A expense decreased 5% from first nine months of the prior year due to lower stock-based compensation.
+Added: The following table summarizes G&A expenses on a per mcfe basis for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
General and administrative
−Removed: administrative
+Added: General and administrative
+Added: Stock-based compensation
Total general and
administrative expense
−Removed: Interest expense was $31.1 million in second quarter 2023 compared to $42.0 million in second quarter 2022.
−Removed: Interest expense was $63.3 million for first six months 2023 compared to $89.2 million for first six months of 2022.
−Removed: The following table presents information about interest expense per mcfe for the three and six months ended June 30, 2023 and 2022:
+Added: Interest expense was $30.6 million in third quarter 2023 compared to $38.7 million in third quarter 2022.
+Added: Interest expense was $93.9 million for first nine months 2023 compared to $127.9 million for first nine months of 2022.
+Added: The following table presents information about interest expense per mcfe for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Bank credit facility
5 unchanged sentences
Includes commitment fees but excludes debt issuance costs.
−Removed: On an absolute basis, the decrease in interest expense for second quarter 2023 from the same period of 2022 was primarily due to lower overall average outstanding debt balances.
−Removed: We had no debt outstanding on the bank credit facility for second quarter 2023 compared to $90.0 million in second quarter 2022 and the weighted average interest rate on the bank credit facility was 4.1% in second quarter 2022.
−Removed: On an absolute basis, the decrease in interest expense for first six months 2023 from the same period in 2022 was primarily due to lower overall outstanding debt balances.
−Removed: Average debt balance outstanding on the bank credit facility was $16.0 million for first six months 2023 compared to $77.6 million for first six months 2022 and the weighted average interest rates on the bank credit facility was 8.4% in first six months 2023 compared to 3.4% in first six months 2022.
−Removed: Depletion, depreciation and amortization expense was $85.0 million in second quarter 2023 compared to $86.5 million in second quarter 2022.
+Added: On an absolute basis, the decrease in interest expense for third quarter 2023 from the same period of 2022 was primarily due to lower overall average outstanding debt balances.
+Added: We had no debt outstanding on the bank credit facility for third quarter 2023 compared to $21.9 million in third quarter 2022 and the weighted average interest rate on the bank credit facility was 5.7% in third quarter 2022.
+Added: On an absolute basis, the decrease in interest expense for first nine months 2023 from the same period of 2022 was primarily due to lower overall outstanding debt balances.
+Added: Average debt balance outstanding on the bank credit facility was $10.7 million for first nine months 2023 compared to $59.0 million for first nine months 2022 and the weighted average interest rates on the bank credit facility was 8.4% in first nine months 2023 compared to 3.7% in first nine months 2022.
+Added: Depletion, depreciation and amortization expense was $87.6 million in third quarter 2023 compared to $90.5 million in third quarter 2022.
This decrease is due to a 2% decrease in depletion rates.
−Removed: Depletion expense, the largest component of DD&A expense, was $0.44 per mcfe in second quarter 2023 compared to $0.45 per mcfe in second quarter 2022.
−Removed: DD&A expense was $171.6 million in first six months 2023 compared to $172.1 million in the same period of 2022.
+Added: Depletion expense, the largest component of DD&A expense, was $0.44 per mcfe in third quarter 2023 compared to $0.45 per mcfe in third quarter 2022.
+Added: DD&A expense was $259.2 million in first nine months 2023 compared to $262.6 million in the same period of 2022.
This decrease is due to a 2% decrease in depletion rates somewhat offset by a slight increase in production volumes.
−Removed: Depletion expense per mcfe was $0.44 in first six months 2023 compared to a $0.45 in the same period of 2022.
+Added: Depletion expense per mcfe was $0.44 in first nine months 2023 compared to a $0.45 in the same period of 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: The following table summarizes DD&A expense per mcfe for the three and six months ended June 30, 2023 and 2022:
+Added: The following table summarizes DD&A expense per mcfe for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: 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 and loss or gain on early extinguishment of debt.
+Added: These expenses include stock-based compensation, brokered natural gas and marketing expense, exploration expense, abandonment and impairment of unproved properties, exit costs, deferred compensation plan expenses and gain or loss 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 six months ended June 30, 2023 and 2022 (in thousands):
+Added: The following table details the allocation of stock-based compensation to functional expense categories for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Direct operating expense
3 unchanged sentences
Total stock-based compensation
−Removed: Brokered natural gas and marketing expense was $44.8 million in second quarter 2023 compared to $110.1 million in second quarter 2022 due to significantly lower commodity prices partially offset by higher broker purchase volumes (volumes not related to our production).
−Removed: Brokered natural gas and marketing expense was $111.9 million in first six months 2023 compared to $203.2 million in first six months 2022 due to significantly lower commodity prices partially offset by higher broker purchase volumes.
−Removed: The following table details our brokered natural gas, marketing and other net margin for the three and six months ended June 30, 2023 and 2022 (in thousands):
+Added: Brokered natural gas and marketing expense was $46.2 million in third quarter 2023 compared to $127.3 million in third quarter 2022 due to significantly lower commodity prices partially offset by higher broker purchase volumes (volumes not related to our production).
+Added: Brokered natural gas and marketing expense was $158.1 million in first nine months 2023 compared to $330.5 million in first nine months 2022 due to significantly lower commodity prices partially offset by higher broker purchase volumes.
+Added: The following table details our brokered natural gas, marketing and other net margin for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Brokered natural gas and
3 unchanged sentences
Other marketing revenue
−Removed: Brokered natural
−Removed: gas purchases (a)
+Added: Brokered natural gas purchases (a)
Brokered NGLs purchases
3 unchanged sentences
Includes transportation costs.
−Removed: Exploration expense was $7.4 million in second quarter 2023 compared to $7.5 million in second quarter 2022 with lower delay rentals and other expense offset by higher seismic costs.
−Removed: Exploration expense was $12.1 million in first six months 2023 compared to $12.2 million in first six months 2022 with lower delay rentals and other expense offset by higher seismic costs.
−Removed: The following table details our exploration expense for the three and six months ended June 30, 2023 and 2022 (in thousands):
+Added: Exploration expense was $7.0 million in third quarter 2023 compared to $7.5 million in third quarter 2022 with lower delay rentals and other expense partially offset by higher seismic costs.
+Added: Exploration expense was $19.0 million in first nine months 2023 compared to $19.7 million in first nine months 2022 with lower delay rentals and other expense partially offset by higher seismic costs.
+Added: The following table details our exploration expense for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Delay rentals and other
Personnel expense
−Removed: Stock-based compensation
+Added: Stock-based compensation expense
Total exploration expense
−Removed: Abandonment and impairment of unproved properties expense was $25.8 million in second quarter 2023 compared to $7.1 million in second quarter 2022.
−Removed: Abandonment and impairment of unproved properties was $33.3 million in first six months 2023 compared to $9.1 million in the same period of 2022.
−Removed: Abandonment and impairment of unproved properties for second quarter and first six months 2023 increased when compared to the same period of 2022 due to higher expected lease expirations in Pennsylvania.
+Added: Abandonment and impairment of unproved properties expense was $11.0 million in third quarter 2023 compared to $3.2 million in third quarter 2022.
+Added: Abandonment and impairment of unproved properties was $44.3 million in first nine months 2023 compared to $12.3 million in the same period of 2022.
+Added: Abandonment and impairment of unproved properties for third quarter and first nine months 2023 increased when compared to the same period of 2022 due to higher expected lease expirations in Pennsylvania.
When we do not intend to drill on a property prior to expiration, we have allowed acreage to expire and we expect to allow acreage to expire in the future.
−Removed: However, we also believe acres needed for future development can be leased again.
−Removed: Exit costs were $48.7 million in second quarter 2023 compared to $36.1 million in second quarter 2022.
−Removed: In second quarter 2023, we recorded $10.9 million accretion expense primarily related to retained liabilities for certain gathering, transportation and processing obligations extending until 2030 compared to accretion expense of $11.3 million in the same quarter of the prior year.
−Removed: The second quarter 2023 also includes an adjustment of $37.8 million to increase this obligation primarily due to an increase in forecasted rates due to inflation.
−Removed: The second quarter 2022 also included an adjustment of $24.8 million to increase the obligation for a change in our forecasted drilling plans of the buyer and other adjustments.
−Removed: Exit costs were $61.0 million in first six months 2023 compared to $47.2 million in first six months 2022.
−Removed: We recorded accretion expense of $21.2 million in first six months 2023 compared to accretion expense of $22.4 million in the same period of 2022.
−Removed: The first six months 2023 also includes an adjustment of $39.8 million to increase this obligation primarily for an
−Removed: increase in forecasted rates due to inflation compared to an adjustment of $24.8 million in the same period of the prior year to increase this obligation for a change in forecasted drilling plans of the buyer and other adjustments.
−Removed: Deferred compensation plan expense was a loss of $11.2 million in second quarter 2023 compared to income of $19.2 million in second quarter 2022.
+Added: However, we also believe acres needed for our future development plans can be leased again.
+Added: Exit costs were $10.7 million in third quarter 2023 compared to $11.1 million in third quarter 2022.
+Added: In third quarter 2023, we recorded $10.7 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: Exit costs were $71.7 million in first nine months 2023 compared to $58.2 million in first nine months 2022.
+Added: We recorded accretion expense of $31.9 million in first nine months 2023 compared to accretion expense of $33.5 million in the same period of 2022.
+Added: The first nine months 2023 also includes an adjustment of $39.8 million to increase this retained liability primarily for an increase in forecasted rates due to inflation compared to an adjustment of $24.8 million in the same period of the prior year to increase this obligation for a change in forecasted drilling plans of the buyer and other adjustments.
+Added: Deferred compensation plan expense was a loss of $9.0 million in third quarter 2023 compared to a loss of $5.8 million in third 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 $26.47 at March 31, 2023 to $29.40 June 30, 2023.
−Removed: In the same period of the prior year our stock price decreased from $30.38 at March 31, 2022 to $24.75 at June 30, 2022.
−Removed: During first six months 2023, deferred compensation was a loss of $20.5 million compared to a loss of $54.1 million in the same period in 2022.
−Removed: Our stock price increased from $25.02 at December 31, 2022 to $29.40 at June 30, 2023.
−Removed: In the same period of the prior year, our stock price increased from $17.83 at December 31, 2021 to $24.75 at June 30, 2022.
−Removed: (Gain) loss on early extinguishment of debt was a gain of $439,000 in both second quarter and six months ended 2023 compared to a loss of $69.2 million in first six months 2022.
+Added: Our stock price increased from $29.40 at June 30, 2023 to $32.41 September 30, 2023.
+Added: In the same period of the prior year our stock price increased from $24.75 at June 30, 2022 to $25.26 at September 30, 2022.
+Added: During first nine months 2023, deferred compensation was a loss of $29.5 million compared to a loss of $59.9 million in the same period of 2022.
+Added: Our stock price increased from $25.02 at December 31, 2022 to $32.41 at September 30, 2023.
+Added: In the same period of the prior year, our stock price increased from $17.83 at December 31, 2021 to $25.26 at September 30, 2022.
+Added: (Gain) loss on early extinguishment of debt was a gain of $439,000 in first nine months 2023, compared to a loss of $69.2 million in first nine months 2022.
In second quarter 2023, we purchased in the open market $61.6 million principal amount of 4.875% senior notes due 2025 at a discount and recorded a gain of $439,000, net of transaction costs and the expensing of deferred financing costs on the repurchased debt.
2 unchanged sentences
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 $14.7 million in second quarter 2023 compared to expense of $103.3 million in second quarter 2022.
−Removed: Income tax expense was $136.6 million in first six months 2023 compared to a benefit of $12.8 million in the same period of 2022.
+Added: Income tax expense (benefit) was an expense of $15.7 million in third quarter 2023 compared to expense of $59.6 million in third quarter 2022.
+Added: Income tax expense was $152.3 million in first nine months 2023 compared to an expense of $46.9 million in the same period of 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.
5 unchanged sentences
From time to time, we enter into various derivative contracts to provide an economic hedge of our exposure to commodity price risk associated with anticipated future natural gas, NGLs and oil production.
−Removed: The production we hedge has varied and will continue to vary from year to year depending on, among other things, our expectation of future commodity prices and capital requirements.
+Added: The production we hedge has varied and will continue to vary from year to year depending on, among other things, our expectation of future commodity prices and capital budget, fixed costs or other investment requirements.
Any payments due to counterparties under our derivative contracts should ultimately be funded by proceeds received from the sale of our production.
Production receipts, however, often lag payments to the counterparties.
−Removed: As of June 30, 2023, we have entered into derivative agreements covering 148.7 Bcfe for the remainder of 2023, 291.1 Bcfe for 2024, 149.7 Bcfe for 2025 and 11.9 Bcfe for 2026, not including our basis swaps.
−Removed: The following table presents sources and uses of cash and cash equivalents for the six months ended June 30, 2023 and 2022 (in thousands):
−Removed: Six Months Ended
+Added: As of September 30, 2023, we have entered into derivative agreements covering 76.4 Bcfe for the remainder of 2023, 297.1 Bcfe for 2024, 131.4 Bcfe for 2025 and 19.2 Bcfe for 2026, not including our basis swaps.
+Added: The following table presents sources and uses of cash and cash equivalents for the nine months ended September 30, 2023 and 2022 (in thousands):
+Added: Nine Months Ended
+Added: September 30,
Sources of cash and cash equivalents:
15 unchanged sentences
Sources of Cash and Cash Equivalents
−Removed: Cash flows provided from operating activities in first six months 2023 was $601.5 million compared to $731.1 million in first six months 2022.
+Added: Cash flows provided from operating activities in first nine months 2023 was $751.8 million compared to $1.3 billion in first nine 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 decrease in cash provided from operating activities from first six months 2022 to first six months 2023 reflects lower realized prices partially offset by the impact of a favorable change in working capital (the timing of cash receipts and disbursements).
−Removed: As of June 30, 2023, we have hedged more than 45% of our projected total production for the remainder of 2023, with more than 50% of our projected natural gas production hedged.
−Removed: Changes in working capital (as reflected in our consolidated statements of cash flows) for first six months 2023 were a positive $27.4 million compared to a negative $256.8 million for first six months 2022.
+Added: The decrease in cash provided from operating activities from first nine months 2022 to first nine months 2023 reflects significantly lower realized prices partially offset by the impact of a favorable change in working capital (the timing of cash receipts and disbursements).
+Added: As of September 30, 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 nine months 2023 was a negative $54.9 million compared to a negative $277.6 million for first nine months 2022.
Uses of Cash and Cash Equivalents
−Removed: Additions to natural gas properties for first six months 2023 were consistent with expectations relative to our announced 2023 capital budget.
−Removed: Repayment of senior notes for first six months 2023 includes the repurchase in the open market $61.6 million principal amount of our 4.875% senior notes due 2025, at a discount.
−Removed: Treasury stock purchases for first six months 2023 include the repurchase of 400,000 shares for a total of $9.7 million as part of our previously announced stock repurchase program.
+Added: Additions to natural gas properties for first nine months 2023 were consistent with expectations relative to our announced 2023 capital budget.
+Added: Repayment of senior notes for first nine months 2023 includes the repurchase in the open market $61.6 million principal amount of our 4.875% senior notes due 2025 at a discount.
+Added: Treasury stock purchases for first nine months 2023 include the repurchase of 400,000 shares for a total of $9.7 million as part of our previously announced stock repurchase program.
Liquidity and Capital Resources
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We continue to manage the duration and level of our drilling and completion commitments in order to maintain flexibility with regard to our activity level and capital expenditures.
−Removed: As of June 30, 2023, we had cash on hand in the amount of $162.1 million and availability under our credit facility of $1.2 billion.
+Added: As of September 30, 2023, we had cash on hand in the amount of $162.8 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 six months ended June 30, 2023, we generated $601.5 million of cash flows from operating activities.
−Removed: As of June 30, 2023, we had approximately $1.4 billion of liquidity, consisting of $1.2 billion available under our bank credit facility and $162.1 million of cash on hand.
+Added: During the nine months ended September 30, 2023, we generated $751.8 million of cash flows from operating activities.
+Added: As of September 30, 2023, we had approximately $1.4 billion of liquidity, consisting of $1.2 billion available under our bank credit facility and $162.8 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: 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.
+Added: Although we expect cash flows and capacity under the existing credit facility to be sufficient to fund our expected current capital program, we may also have the option to raise funds through new debt or equity offerings or from other sources of financing.
All of our sources of liquidity can be affected by the general conditions of the broader economy, force majeure events and fluctuations in commodity prices, operating costs and volumes produced, all of which affect us and our industry.
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Our bank credit facility is secured by substantially all of our assets.
−Removed: As of June 30, 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.
−Removed: We also have undrawn letters of credit of $292.9 million as of June 30, 2023.
−Removed: We were in compliance with the applicable covenants under the bank credit facility as of June 30, 2023.
+Added: As of September 30, 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 $262.8 million as of September 30, 2023.
+Added: We were in compliance with the applicable covenants under the bank credit facility as of September 30, 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 March 2023 with our borrowing base and lender commitments reaffirmed.
−Removed: Our daily weighted-average bank credit facility debt balance was $16.0 million for first six months ended June 30, 2023 compared to $77.6 million for the same period of the prior year.
−Removed: 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 September 2023 with our borrowing base and lender commitments reaffirmed.
+Added: Our daily weighted-average bank credit facility debt balance was $10.7 million for first nine months ended September 30, 2023 compared to $59.0 million for the same period of the prior year.
+Added: Borrowings under the 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.
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Expenditures for the development, exploration and acquisition of natural gas properties are the primary use of our capital resources.
−Removed: During first six months 2023, we funded $296.7 million of capital expenditures as reported in our consolidated statement of cash flows with operating cash flows.
+Added: During first nine months 2023, we funded $448.8 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.
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See also Cash Dividend Payments below.
−Removed: During first six months 2023, we repurchased 400,000 shares of our common stock at an aggregate cost of $9.7 million.
−Removed: The total remaining share repurchase authorization was approximately $1.1 billion at June 30, 2023.
+Added: During first nine months 2023, we repurchased 400,000 shares of our common stock at an aggregate cost of $9.7 million.
+Added: The total remaining share repurchase authorization was approximately $1.1 billion at September 30, 2023.
Shelf Registration
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Cash Dividend Payments
−Removed: On May 31, 2023, our board of directors approved a dividend of $0.08 per share payable on June 30, 2023 to stockholders of record at the close of business on June 16, 2023.
+Added: On August 31, 2023, the dividend committee of our board of directors approved a dividend of $0.08 per share payable on September 29, 2023 to stockholders of record at the close of business on September 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.
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Our contractual obligations include long-term debt, operating leases, derivative obligations, asset retirement obligations and transportation, processing and gathering commitments including the divestiture contractual commitment.
−Removed: As of June 30, 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.
−Removed: As of June 30, 2023, we had a total of $292.9 million of undrawn letters of credit under our bank credit facility.
+Added: As of September 30, 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 September 30, 2023, we had a total of $262.8 million of undrawn letters of credit under our bank credit facility.
Since December 31, 2022, there have been no material changes to our contractual obligations.
Interest Rates
−Removed: At June 30, 2023, we had approximately $1.8 billion of debt outstanding which bore interest at fixed rates averaging 6.0%.
−Removed: We had no variable rate debt outstanding at June 30, 2023.
+Added: At September 30, 2023, we had approximately $1.8 billion of debt outstanding which bore interest at fixed rates averaging 6.0%.
+Added: We had no variable rate debt outstanding at September 30, 2023.
Off-Balance Sheet Arrangements
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We employ various strategies, including the use of commodity derivative instruments, to manage the risks related to these price fluctuations.
−Removed: These derivative instruments apply to a varying portion of our production and providing partial price protection.
+Added: These derivative instruments apply to a varying portion of our production and provide partial price protection.
These arrangements can limit the benefit to us of increases in prices but offer protection in the event of price declines.
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We are also exposed to market risks related to changes in interest rates, based on our credit facility balance.
−Removed: These risks did not change materially from December 31, 2022 to June 30, 2023.
+Added: These risks did not change materially from December 31, 2022 to September 30, 2023.
Commodity Price Risk
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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).
−Removed: At June 30, 2023, our derivative program includes swaps, collars, three-way collars and swaptions.
−Removed: The fair value of these contracts, represented by the estimated amount that would be realized upon immediate liquidation based on a comparison of the contract price and a reference price, generally NYMEX for natural gas and crude oil or Mont Belvieu for NGLs, as of June 30, 2023, approximated a net unrealized pretax gain of $216.8 million.
+Added: At September 30, 2023, our derivative program includes swaps, collars, three-way collars and swaptions.
+Added: The fair value of these contracts, represented by the estimated amount that would be realized upon immediate liquidation based on a comparison of the contract price and a reference price, generally NYMEX for natural gas and crude oil or Mont Belvieu for NGLs, as of September 30, 2023, approximated a net unrealized pretax gain of $192.1 million.
These contracts expire monthly through December 2026.
−Removed: At June 30, 2023, the following commodity derivative contracts were outstanding, excluding our basis swaps which are discussed below:
+Added: At September 30, 2023, the following commodity derivative contracts were outstanding, excluding our basis swaps which are discussed below:
Contract Type
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January-September 2024
−Removed: We sold natural gas swaptions of 90,000 Mmbtu/day for 2025 at a weighted average price of $4.25.
−Removed: These swaptions expire December 31, 2023.
−Removed: The fair market value of these swaptions at June 30, 2023 was a net derivative liability of $2.5 million.
+Added: 3,664 bbls/day
+Added: January-September 2024
+Added: We also sold natural gas swaptions of 90,000 Mmbtu/day for calendar year 2025 at a weighted average price of $4.25/Mmbtu that expire December 2023.
+Added: Additionally, we sold natural gas swaptions of 20,000 Mmbtu/day for calendar year 2026 at a weighted average price of $4.10/Mmbtu that expire June 2024.
+Added: The fair value of these swaptions at September 30, 2023 was a net derivative liability of $2.4 million.
We believe NGLs prices are somewhat seasonal, particularly for propane.
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Basis swap agreements effectively fix the basis adjustments.
−Removed: The fair value of the natural gas basis swaps was a gain of $30.7 million at June 30, 2023 and they settle monthly through December 2026.
−Removed: At June 30, 2023, we are entitled to receive contingent consideration associated with the sale of our North Louisiana assets, for the year ended 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.
−Removed: The fair value at June 30, 2023 was a gain of $8.1 million.
−Removed: The following table shows the fair value of our derivatives and the hypothetical changes in fair value that would result from a 10% and a 25% change in commodity prices at June 30, 2023.
+Added: The fair value of the natural gas basis swaps was a gain of $17.1 million at September 30, 2023 and they settle monthly through December 2026.
+Added: At September 30, 2023, we are entitled to receive contingent consideration associated with the sale of our North Louisiana assets, for the year ended 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 September 30, 2023 was a gain of $7.4 million.
+Added: The following table shows the fair value of our derivatives and the hypothetical changes in fair value that would result from a 10% and a 25% change in commodity prices at September 30, 2023.
We remain at risk for possible changes in the market value of commodity derivative instruments;
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Three-way collars
−Removed: Divestiture contingent
−Removed: consideration
+Added: Divestiture contingent 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 June 30, 2023, our derivative counterparties include fourteen financial institutions, of which all but six are secured lenders in our bank credit facility.
+Added: At September 30, 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.
1 unchanged sentence
Interest Rate Risk
−Removed: At June 30, 2023, we had total debt of $1.8 billion.
+Added: At September 30, 2023, we had total debt of $1.8 billion.
All of our outstanding debt is based on fixed interest rates and, as a result, we do not have significant exposure to movements in market interest rates.
Our credit facility provides for variable interest rate borrowings;
−Removed: however, we did not have any borrowings outstanding as of June 30, 2023.
+Added: however, we did not have any borrowings outstanding as of September 30, 2023.
CONTROLS A ND PROCEDURES
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Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC.
−Removed: Based upon the evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective as of June 30, 2023 at the reasonable assurance level.
+Added: Based upon the evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective as of September 30, 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 June 30, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
+Added: There was no change in our system of internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the three months ended September 30, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
P ART II –
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.