3 unchanged sentences
(In thousands, except per share data)
−Removed: September 30,
Current assets:
Cash and cash equivalents
−Removed: Accounts receivable, less allowance for doubtful accounts of $ 308 and $ 314
+Added: Accounts receivable, less allowance for doubtful accounts of $ 308 in 2024 and 2023
Contingent consideration receivable
Derivative assets
+Added: Prepaid assets
Other current assets
12 unchanged sentences
Accrued interest
−Removed: Divestiture contract obligation
Derivative liabilities
+Added: Operating lease liabilities
+Added: Divestiture contract obligation
Total current liabilities
7 unchanged sentences
Commitments and contingencies
−Removed: Stockholders’
+Added: Stockholders’ Equity
Preferred stock, $ 1 par, 10,000,000 shares authorized, none issued and outstanding
Common stock, $ 0.01 par, 475,000,000 shares authorized, 267,310,053 issued at
−Removed: September 30, 2023 and 262,887,265 issued at December 31, 2022
−Removed: Common stock held in treasury, 24,401,065 shares at September 30, 2023 and
+Added: March 31, 2024 and 265,756,369 issued at December 31, 2023
+Added: Common stock held in treasury, at cost, 24,716,065 shares at March 31, 2024 and
24,716,065 shares at December 31, 2023
3 unchanged sentences
Total stockholders' equity
−Removed: Total liabilities and stockholders’
+Added: Total liabilities and stockholders’ equity
The accompanying notes are an integral part of these consolidated financial statements.
RANGE RESOURCES CORPORATION
−Removed: CO NSOLIDATED STATEMENTS OF OPERATIONS
+Added: CO NSOLIDATED STATEMENTS OF INCOME
(Unaudited, in thousands, except per share data)
−Removed: Three Months Ended September 30,
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Revenues and other income:
Natural gas, NGLs and oil sales
−Removed: Derivative fair value income (loss)
+Added: Derivative fair value income
Brokered natural gas, marketing and other
8 unchanged sentences
Deferred compensation plan
−Removed: (Gain) loss on early extinguishment of debt
+Added: Gain on early extinguishment of debt
Depletion, depreciation and amortization
10 unchanged sentences
(Unaudited, in thousands)
−Removed: Three Months Ended September 30,
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Other comprehensive income:
1 unchanged sentence
Amortization of prior service costs/actuarial gain
−Removed: Income tax benefit
+Added: Income tax expense (benefit)
Total comprehensive income
3 unchanged sentences
(Unaudited, in thousands)
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Operating activities:
3 unchanged sentences
Abandonment and impairment of unproved properties
−Removed: Derivative fair value (income) loss
+Added: Derivative fair value income
Cash settlements on derivative financial instruments
3 unchanged sentences
Gain on the sale of assets
−Removed: (Gain) loss on early extinguishment of debt
+Added: Gain on early extinguishment of debt
Changes in working capital:
16 unchanged sentences
Repayments on credit facility
−Removed: Issuance of senior notes
Repayment of senior notes
1 unchanged sentence
Treasury stock purchases
−Removed: Debt issuance costs
Taxes paid for shares withheld
3 unchanged sentences
Net cash used in financing activities
−Removed: Increase (decrease) in cash and cash equivalents
+Added: Increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
2 unchanged sentences
RANGE RESOURCES CORPORATION
−Removed: CONSOLIDATED STATEMENTS O F STOCKHOLDERS’
+Added: CONSOLIDATED STATEMENTS O F STOCKHOLDERS’ EQUITY
(Unaudited, in thousands, except per share data)
1 unchanged sentence
comprehensive
+Added: income (loss)
Balance as of December 31, 2023
3 unchanged sentences
Stock-based compensation expense
−Removed: Cash dividends paid
−Removed: ($ 0.08 per share)
−Removed: Treasury stock
−Removed: Excise tax on stock repurchases
−Removed: Other comprehensive income
+Added: Dividends ($ 0.08 per share)
+Added: Other comprehensive loss
Balance as of March 31, 2024
−Removed: Issuance of common stock
−Removed: Stock-based compensation expense
−Removed: Cash dividends paid
−Removed: ($ 0.08 per share)
−Removed: Treasury stock
−Removed: Excise tax on stock repurchases
−Removed: Other comprehensive income
−Removed: Balance as of June 30, 2023
−Removed: Issuance of common stock
−Removed: Stock-based compensation expense
−Removed: Cash dividends paid
−Removed: ($ 0.08 per share)
−Removed: Other comprehensive income
−Removed: Balance as of September 30, 2023
The accompanying notes are an integral part of these consolidated financial statements.
RANGE RESOURCES CORPORATION
−Removed: CONSOLIDATED STATEMENTS OF STOCKHOLDERS’
−Removed: (Unaudited, in thousands)
+Added: CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
+Added: (Unaudited, in thousands, except per share data)
Fiscal Year 2023
comprehensive
−Removed: (loss) income
Balance as of December 31, 2022
3 unchanged sentences
Stock-based compensation expense
−Removed: Treasury stock
+Added: Dividends ($ 0.08 per share)
+Added: Treasury stock issuance
+Added: Treasury stock repurchased
+Added: Excise tax on stock repurchases
Other comprehensive income
Balance as of March 31, 2023
−Removed: Issuance of common stock
−Removed: Stock-based compensation expense
−Removed: Treasury stock
−Removed: Other comprehensive income
−Removed: Balance as of June 30, 2022
−Removed: Issuance of common stock
−Removed: Cash dividends paid
−Removed: ($ 0.08 per share)
−Removed: Stock-based compensation expense
−Removed: Treasury stock
−Removed: Other comprehensive income
−Removed: Balance as of September 30, 2022
The accompanying notes are an integral part of these consolidated financial statements.
11 unchanged sentences
These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2023 Annual Report on Form 10-K filed with the SEC on February 21, 2024.
−Removed: 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.
−Removed: We make certain reclassifications to prior year statements to conform with the current year presentation.
+Added: The results of operations for first quarter ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year.
+Added: We make certain reclassifications to the prior year statements to conform with the current year presentation.
These reclassifications have no impact on previously reported stockholders' equity, net income or cash flows.
7 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 nine months ended September 30, 2023 includes the receipt of $ 5.1 million in make-whole payments.
−Removed: 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.
+Added: Other marketing revenue for the three months ended March 31, 2023 includes the receipt of a $ 3.6 million make-whole payment.
+Added: Accounts receivable attributable to our revenue contracts with customers was $ 161.3 million at March 31, 2024 and $ 263.9 million at December 31, 2023.
Revenue attributable to each of our identified revenue streams is disaggregated below (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Natural gas sales
7 unchanged sentences
Consequently, based upon the mix and timing of our actual earnings compared to annual projections, our effective tax rate may vary quarterly and may make comparisons not meaningful.
−Removed: The effective income tax rate is influenced by a variety of factors including geographic sources and relative magnitude of these sources of income.
−Removed: Income taxes for discrete items are computed and recorded in the period that a specific transaction occurs.
−Removed: For three months and nine months ended September 30, 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.
−Removed: 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.
+Added: For the three months ended March 31, 2024 and 2023, our overall effective tax rate was different than the federal statutory rate due primarily to state income taxes, equity compensation and the limitation of executive compensation.
+Added: Current income taxes reflect estimated state and federal income taxes due for 2024 which is based on our estimated earnings, taking into account all applicable tax rates and laws.
(6) INCOME PER COMMON SHARE
3 unchanged sentences
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Net income, as reported
Participating earnings (a)
−Removed: Basic net income attributed to common
+Added: Basic net income attributed to common shareholders
Reallocation of participating earnings (a)
−Removed: Diluted net income attributed to common
+Added: Diluted net income attributed to common shareholders
Net income per common share:
4 unchanged sentences
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Weighted average common shares outstanding –
+Added: Weighted average common shares outstanding – basic
Effect of dilutive securities:
1 unchanged sentence
based equity awards
−Removed: Weighted average common shares outstanding –
−Removed: Weighted average common shares outstanding –
−Removed: 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).
−Removed: Weighted average common shares outstanding –
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: Weighted average common shares outstanding – diluted
+Added: Weighted average common shares outstanding – basic for first quarter 2024 excludes 1.6 million shares of restricted stock held in our deferred compensation plan compared to 5.6 million shares in first quarter 2023 (although all awards are issued and outstanding upon grant).
+Added: For the three months ended March 31, 2024, equity grants of 127,000 shares compared to 4,000 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.
(7) Capitalized Costs and Accumulated Depreciation, Depletion and Amortization (a)
−Removed: September 30,
(in thousands)
7 unchanged sentences
We had the following debt outstanding as of the dates shown below.
−Removed: No interest was capitalized during the nine months ended September 30, 2023 or the year ended December 31, 2022 (in thousands).
−Removed: September 30,
+Added: No interest was capitalized during the three months ended March 31, 2024 or the year ended December 31, 2023 (in thousands).
Senior notes:
7 unchanged sentences
The bank credit facility provides for a maximum facility amount of $ 4.0 billion and an initial borrowing base of $ 3.0 billion.
−Removed: The bank credit facility also provides for a borrowing base subject to periodic redeterminations and for event-driven unscheduled redeterminations.
−Removed: As of September 30, 2023, our bank group was composed of seventeen financial institutions.
+Added: The bank credit facility also provides for a borrowing base subject to redeterminations and for event-driven unscheduled redeterminations.
+Added: As of March 31, 2024, 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.
2 unchanged sentences
The applicable spread is dependent upon borrowings relative to the borrowing base.
−Removed: 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 third quarter 2023.
−Removed: The weighted average interest rate was 5.7 % for third quarter 2022.
−Removed: The weighted average interest rate was 8.4 % for first nine months 2023 compared to 3.7 % for first nine months of 2022.
+Added: 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 part of the base rate loans to SOFR loans.
+Added: We had no outstanding balance on our credit facility during first quarter 2024.
+Added: The weighted average interest rate was 8.4 % for first quarter 2023.
A commitment fee is paid on the undrawn balance based on an annual rate of 0.375 % to 0.50 %.
−Removed: 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.
−Removed: 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.
−Removed: On September 30, 2023, we had no outstanding borrowings on our bank credit facility.
−Removed: Additionally, we had $ 262.8 million of undrawn letters of credit, leaving $ 1.2 billion of committed borrowing capacity available under the facility.
−Removed: Early Extinguishment of Debt
−Removed: In second quarter 2023, we repurchased in the open market $ 61.6 million principal amount of our 4.875 % senior notes due 2025 at a discount.
−Removed: We recognized a gain on early extinguishment of debt of $ 439,000 net of the remaining deferred financing costs on the repurchased debt.
−Removed: Although we have no obligation to do so, we may continue, from time-to-time, to retire our outstanding debt through privately negotiated transactions, open market repurchases, redemptions or otherwise.
+Added: At March 31, 2024, the commitment fee was 0.375 % and the interest rate margin was 0.75 % on our ABR loans and 1.75 % on our SOFR loans.
+Added: As part of our redetermination completed in March 2024, our borrowing base was reaffirmed at $ 3.0 billion and our bank commitment was also reaffirmed at $ 1.5 billion.
+Added: On March 31, 2024, we had no outstanding borrowings on our bank credit facility.
+Added: We had $ 173.4 million of undrawn letters of credit, leaving $ 1.3 billion of committed borrowing capacity available under the facility.
+Added: Senior Note Redemptions
If we experience a change of control, noteholders may require us to repurchase all or a portion of our senior notes at 101 % of the aggregate principal amount plus accrued and unpaid interest, if any.
+Added: We currently intend to retire our outstanding long-term debt as it matures, is callable or when market conditions are favorable to repurchase in the open market.
+Added: In first quarter 2024, we repurchased in the open market $ 15.1 million principal amount of our 4.875 % senior notes due 2025 at a discount.
+Added: We also repurchased an additional $ 4.3 million principal of our 4.875 % senior notes that was not settled until April 2024 and is included in accounts payable in the consolidated balance sheets.
+Added: We recognized a gain on early extinguishment of debt for these transactions of $ 64,000 , net of remaining deferred financing costs on the repurchased debt.
+Added: Although we have no obligation to do so, we may continue, from time-to-time, to retire our outstanding debt through privately negotiated transactions, open market repurchases, redemptions or otherwise.
Range is a holding company that owns no operating assets and has no significant operations independent of its subsidiaries.
7 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 September 30, 2023.
+Added: We were in compliance with applicable covenants under the bank credit facility at March 31, 2024.
(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 nine months ended September 30, 2023 and the year ended December 31, 2022 is as follows (in thousands):
−Removed: September 30,
+Added: A reconciliation of our liability for plugging and abandonment costs for the three months ended March 31, 2024 and the year ended December 31, 2023 is as follows (in thousands):
+Added: Three Months Ended
Beginning of period
6 unchanged sentences
Long-term asset retirement obligations
−Removed: Accretion expense is recognized as a component of depreciation, depletion and amortization expense in the accompanying consolidated statements of operations.
+Added: Accretion expense is recognized as a component of depreciation, depletion and amortization expense in the accompanying consolidated statements of income.
(10) DERIVATIVE ACTIVITIES
2 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 $ 192.1 million at September 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 $ 393.9 million at March 31, 2024.
These contracts expire monthly through December 2026.
−Removed: 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:
+Added: The following table sets forth our commodity-based derivative volumes by year as of March 31, 2024, excluding our basis swaps which are discussed separately below:
Contract Type
7 unchanged sentences
400,000 Mmbtu/day
−Removed: 436,694 Mmbtu/day
Three-way Collars
1 unchanged sentence
60,000 Mmbtu/day
−Removed: 52,500 Mmbtu/day
+Added: Crude Oil (b)
4,607 bbls/day
−Removed: January-September 2024
+Added: April - September 2024
+Added: NGLs (C3-Propane)
6,767 bbls/day
−Removed: January-September 2024
−Removed: 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 .
−Removed: 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: We also sold natural gas swaptions of 40,000 Mmbtu/day for calendar year 2026 at a weighted average price of $ 4.11 /Mmbtu that expire June 2024 .
+Added: We also sold crude oil swaptions of 2,500 bbls/day for calendar year 2025 at a weighted average price of $ 80.00 /bbl that expire through September 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 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.
−Removed: 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 $ 17.1 million at September 30, 2023.
−Removed: Divestiture Contingent Consideration
−Removed: 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.
−Removed: 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.
−Removed: All changes in the fair value are recognized as a gain or loss in earnings in the period they occur in derivative fair value income or loss in our consolidated statements of operations.
−Removed: For first nine months 2023, this fair value has decreased $ 5.7 million for a fair value of $ 7.4 million as of September 30, 2023.
+Added: In addition to the commodity derivatives described above, at March 31, 2024, we had natural gas basis swap contracts which lock in the differential between NYMEX Henry Hub and certain of our physical pricing indices.
+Added: These contracts settle through December 2028 and include a total volume of 323,405,000 Mmbtu.
+Added: The fair value of these contracts was a loss of $ 27.0 million at March 31, 2024.
Derivative Assets and Liabilities
−Removed: 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.
+Added: The combined fair value of derivatives included in the accompanying consolidated balance sheets as of March 31, 2024 and December 31, 2023 is summarized below.
The assets and liabilities are netted where derivatives with both gain and loss positions are held by a single counterparty and we have master netting arrangements.
The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands):
−Removed: September 30, 2023
−Removed: Offset in the
−Removed: Balance Sheet
−Removed: Net Amounts of
−Removed: Presented in the
−Removed: Balance Sheet
Derivative assets:
−Removed: –swaps
−Removed: –swaptions
−Removed: –collars
−Removed: –three-way collars
−Removed: –basis swaps
−Removed: –swaps
−Removed: –collars
−Removed: Divestiture contingent consideration
−Removed: September 30, 2023
−Removed: (Liabilities)
−Removed: Offset in the
−Removed: Balance Sheet
−Removed: Net Amounts of
−Removed: (Liabilities)
−Removed: Presented in the
−Removed: Balance Sheet
−Removed: Derivative (liabilities):
−Removed: –swaps
−Removed: –swaptions
−Removed: –collars
−Removed: –three-way collars
−Removed: –basis swaps
−Removed: –swaps
−Removed: December 31, 2022
−Removed: Offset in the
−Removed: Balance Sheet
−Removed: Net Amounts of
−Removed: Presented in the
−Removed: Balance Sheet
−Removed: Derivative assets:
−Removed: –swaps
−Removed: –collars
−Removed: –three-way collars
−Removed: –basis swaps
−Removed: –collars
−Removed: Divestiture contingent consideration
−Removed: December 31, 2022
−Removed: Recognized (Liabilities)
−Removed: Offset in the
−Removed: Balance Sheet
−Removed: Net Amounts of
−Removed: (Liabilities)
−Removed: Presented in the
−Removed: Balance Sheet
+Added: Gross amounts of recognized assets
+Added: Gross amounts offset in the consolidated balance sheets
+Added: Net amounts of assets presented in the consolidated balance sheets
Derivative (liabilities):
−Removed: –swaps
−Removed: –collars
−Removed: –three-way collars
−Removed: –basis swaps
−Removed: –swaps
−Removed: The effects of our derivatives on our consolidated statements of operations are summarized below (in thousands):
−Removed: Derivative Fair Value Income (Loss)
+Added: Gross amounts of recognized (liabilities)
+Added: Gross amounts offset in the consolidated balance sheets
+Added: Net amounts of (liabilities) presented in the consolidated balance sheets
+Added: The effects of our derivatives on our consolidated statements of income are summarized below (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Derivative Fair Value Income
Commodity swaps
Three-way collars
−Removed: Freight swaps
Divestiture contingent consideration
+Added: Total derivative fair value income
(11) FAIR VALUE MEASUREMENTS
12 unchanged sentences
The three levels of the fair value hierarchy are as follows:
−Removed: Level 1 –
−Removed: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date.
+Added: • Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date.
Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.
−Removed: Level 2 –
−Removed: Observable market-based inputs or unobservable inputs that are corroborated by market data.
+Added: • Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data.
These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.
−Removed: Level 3 –
−Removed: Unobservable inputs for which there is little, if any, market activity for the asset or liability being measured.
−Removed: These inputs reflect management’s best estimates of the assumptions market participants would use in determining fair value.
+Added: • Level 3 – Unobservable inputs for which there is little, if any, market activity for the asset or liability being measured.
+Added: These inputs reflect management’s best estimates of the assumptions market participants would use in determining fair value.
Our Level 3 measurements consist of instruments using standard pricing models and other valuation methods that utilize unobservable pricing inputs that are significant to the overall fair value.
2 unchanged sentences
The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities within the levels of the fair value hierarchy.
−Removed: Fair Values –
+Added: Fair Values – Recurring
We use a market approach for our recurring fair value measurements and endeavor to use the best information available.
The following tables present the fair value hierarchy for assets and liabilities measured at fair value, on a recurring basis (in thousands):
−Removed: Fair Value Measurements at September 30, 2023 using:
+Added: Fair Value Measurements at March 31, 2024 using:
Quoted Prices
Identical Assets
−Removed: September 30,
−Removed: Trading securities held in the deferred compensation plans
−Removed: Commodity price derivatives
−Removed: –swaps
−Removed: –collars
−Removed: –three-way collars
−Removed: –basis swaps
−Removed: –swaptions
−Removed: Divestiture contingent consideration
+Added: Trading securities held in the deferred compensation plan
+Added: –three-way collars
Fair Value Measurements at December 31, 2023 using:
1 unchanged sentence
Identical Assets
−Removed: Trading securities held in the deferred compensation plans
−Removed: Commodity price derivatives
−Removed: –swaps
−Removed: –collars
−Removed: –three-way collars
−Removed: –basis swaps
−Removed: Divesture contingent consideration
+Added: Trading securities held in the deferred compensation plan
+Added: –three-way collars
Our trading securities in Level 1 are exchange-traded and measured at fair value with a market approach using end of period market values.
2 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 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.
+Added: As of March 31, 2024, a portion of our natural gas and crude oil 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 September 30, 2023, we used a weighted average implied volatility of 19 % for natural gas for our swaptions.
+Added: At March 31, 2024, we used a weighted average implied volatility of 16 % for natural gas swaptions and 22 % for crude oil 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: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended
+Added: March 31, 2024
Balance at December 31, 2023
−Removed: Total losses:
−Removed: Included in earnings
−Removed: Balance at September 30, 2023
+Added: Total gains included in earnings
+Added: Balance at March 31, 2024
Trading securities.
1 unchanged sentence
We elected to adopt the fair value option to simplify our accounting for the investments in our deferred compensation plan.
−Removed: Interest, dividends, and mark-to-market gains or losses are included in deferred compensation plan expense in the accompanying consolidated statements of operations.
−Removed: For third quarter 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.
−Removed: 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.
−Removed: Divestiture Contingent Consideration.
−Removed: In August 2020, we completed the sale of our North Louisiana assets where we are entitled to receive contingent consideration based on future achievement of natural gas and oil prices based on published indexes along with NGLs prices based on the realized NGLs prices of the buyer.
−Removed: We used an option pricing model to estimate the fair value of the contingent consideration using significant Level 2 inputs that include quoted future commodity prices based on active markets.
+Added: Interest, dividends, and mark-to-market gains or losses are included in deferred compensation plan expense in the accompanying consolidated statements of income.
+Added: For first quarter 2024, interest and dividends were $ 195,000 and the mark-to-market adjustment was a gain of $ 4.2 million compared to interest and dividends of $ 179,000 and a mark-to-market gain of $ 3.1 million in first quarter 2023.
Fair Values - Non-recurring
2 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 third quarter or first nine months 2023.
−Removed: Fair Values –
−Removed: 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):
−Removed: September 30, 2023
+Added: There were no proved property impairment charges in first quarter 2024 or 2023.
+Added: Fair Values – Reported
+Added: The following presents the carrying amounts and the fair values of our financial instruments as of March 31, 2024 and December 31, 2023 (in thousands):
+Added: March 31, 2024
December 31, 2023
Commodity derivatives
−Removed: Divestiture contingent consideration
Marketable securities (a)
15 unchanged sentences
Concentrations of Credit Risk
−Removed: 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.
+Added: As of March 31, 2024, 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 uncollectible receivables was $ 308,000 at September 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
−Removed: agreements which provide for offsetting payables against receivables from separate derivative contracts.
+Added: Our allowance for uncollectible receivables was $ 308,000 at March 31, 2024 and $ 308,000 at December 31, 2023.
+Added: Our derivative exposure to credit risk is diversified primarily among major investment grade financial institutions, where we have master netting agreements which provide for offsetting payables against receivables from separate derivative contracts.
To manage counterparty risk associated with our derivatives, we select and monitor our counterparties based on our assessment of their financial strength and/or credit ratings.
We may also limit the level of exposure with any single counterparty.
−Removed: At September 30, 2023, our derivative counterparties include fourteen financial institutions, of which all but six are secured lenders in our bank credit facility.
−Removed: 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 .
+Added: At March 31, 2024, our derivative counterparties include fourteen financial institutions, of which eight are secured lenders in our bank credit facility.
+Added: At March 31, 2024, our net derivative asset includes an aggregate net receivable of $ 18.0 million from one counterparty not included in our bank credit facility and a payable to the remaining five counterparties of $ 10.5 million.
Allowance for Expected Credit Losses.
Each reporting period, we assess the recoverability of material receivables using historical data, current market conditions and reasonable and supported forecasts of future economic conditions to determine their expected collectability.
−Removed: The loss given default method is used when, based on management’s judgment, an allowance for expected credit losses should be accrued on a material receivable to reflect the net amount to be collected.
+Added: The loss given default method is used when, based on management’s judgment, an allowance for expected credit losses should be accrued on a material receivable to reflect the net amount to be collected.
(12) STOCK-BASED COMPENSATION PLANS
5 unchanged sentences
Stock-based compensation represents amortization of restricted stock and performance units.
−Removed: Unlike the other forms of stock-based compensation, the mark-to-market adjustment of the liability related to the vested restricted stock held in our deferred compensation plan is directly tied to the change in our stock price and not directly related to the functional expenses and therefore, is not allocated to the functional categories.
The following details the allocation of stock-based compensation to functional expense categories (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Direct operating expense
3 unchanged sentences
Total stock-based compensation expense
+Added: The mark-to-market adjustment of the liability related to the vested restricted stock Liability Awards held in our deferred compensation plan is directly tied to the change in our stock price and not directly related to the functional expenses and therefore, is not allocated to the functional categories above.
Stock-Based Awards
Restricted Stock Awards.
−Removed: We grant restricted stock units under our equity-based stock compensation plans to our employees.
−Removed: These restricted stock units, which we refer to as restricted stock Equity Awards, generally vest over a three-year period, contingent on the recipient’s continued employment.
+Added: We grant restricted stock units and restricted stock under our equity-based stock compensation plans to our employees, which we refer to as restricted stock Equity Awards.
+Added: The restricted stock units and restricted stock generally vest over a three-year period and are contingent on the recipient’s continued employment.
The grant date fair value of the Equity Awards is based on the fair market value of our common stock on the date of grant.
−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 at the end of a one-year period for non-employee directors.
+Added: In 2023, we began granting restricted stock (previously placed in our deferred compensation plan) 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.
−Removed: The grant date fair value of these Equity Awards is based on the fair market value of our common stock on the date of grant.
Prior to vesting, recipients of restricted stock typically earn dividends payable in cash upon vesting but they have no voting rights prior to vesting.
The Compensation Committee also grants restricted stock to certain employees and non-employee directors of the board of directors as part of their compensation.
+Added: Upon grant of these restricted shares, which we refer to as restricted stock Liability Awards, these shares are placed in our deferred compensation plan and, upon vesting, withdrawals are allowed in cash or in stock.
Compensation expense is recognized over the balance of the vesting period, which is typically at the end of three years for employee grants and at the end of a one-year period for non-employee directors.
−Removed: All restricted stock awards are issued at prevailing market prices at the time of the grant and the vesting is based upon an employee’s continued employment with us.
−Removed: Prior to vesting, all restricted stock award recipients have the right to vote such stock and receive dividends thereon.
−Removed: Upon grant of these restricted shares, which we refer to as restricted stock Liability Awards, these shares are placed in our deferred compensation plan and, upon vesting, withdrawals are allowed in either cash or in stock.
+Added: In 2023, the number of shares granted into our deferred compensation plan was reduced in favor of restricted stock Equity Awards.
+Added: All restricted stock Liability Awards are issued at prevailing market prices at the time of the grant and the vesting is based upon an employee’s continued employment with us.
+Added: Prior to vesting, Liability Award recipients have the right to vote such stock and receive dividends thereon.
These Liability Awards are classified as a liability and are remeasured at fair value each reporting period.
−Removed: This mark-to-market amount is reported in deferred compensation plan expense in the accompanying consolidated statements of operations.
+Added: This mark-to-market amount is reported in deferred compensation plan expense in the accompanying consolidated statements of income.
Stock-Based Performance Awards - (PSUs).
−Removed: We grant two types of performance share awards:
−Removed: one based on performance conditions measured against internal performance metrics and one based on market conditions measured based on Range’s performance relative to a predetermined peer group (TSR Awards).
+Added: We have typically granted two types of performance share awards:
+Added: one based on performance conditions measured against internal performance metrics and one based on market conditions measured based on Range’s performance relative to a predetermined peer group (TSR Awards).
+Added: In first quarter 2024, only TSR Awards were granted.
Each unit granted represents one share of our common stock.
−Removed: These units are settled in stock and the amount of the payout is based on the vesting percentage, which can range from zero to 200 % and (1) the internal performance metrics achieved, which is determined by the Compensation Committee and (2) for our TSR Awards, the value of our common stock on the vesting date compared to our peers.
+Added: These units are settled in stock and the amount of the payout is based on the vesting percentage, which can range from zero to 200 % and (1) the internal performance metrics achieved, which is determined by the Compensation Committee and (2) for our TSR Awards, the value of our common stock compared to our peers.
Dividend equivalents accrue during the performance period and are paid in stock at the end of the performance period.
The performance period is three years .
−Removed: Restricted Stock –
−Removed: Equity Awards
−Removed: 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.
−Removed: 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.
+Added: Restricted Stock – Equity Awards
+Added: In first three months 2024, we granted 1.2 million restricted stock Equity Awards to employees at an average grant date fair value of $ 30.23 compared to 1.6 million at an average grant date fair value of $ 25.01 in first three months 2023.
+Added: We recorded compensation expense for these outstanding awards of $ 9.7 million in first three months 2024 compared to $ 7.5 million in the same period of 2023.
Restricted stock Equity Awards are not issued until such time as they are vested and grantees do not have the option to receive cash.
−Removed: Restricted Stock –
−Removed: Liability Awards
−Removed: 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 .
−Removed: In first nine months 2022, we granted 603,000 shares of restricted stock Liability Awards as compensation to employees at an average grant date fair value of $ 20.43 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 $ 3.3 million in first nine months 2023 compared to $ 10.3 million in first nine months 2022.
+Added: Restricted Stock – Liability Awards
+Added: In first three months 2024, we granted 8,000 shares of restricted stock Liability Awards as compensation to employees at an average grant date fair value of $ 30.02 compared to 11,000 shares granted at an average grant date fair value of $ 24.70 for the same period 2023, with vesting generally at the end of a three-year period.
+Added: We recorded compensation expense for these Liability Awards of $ 460,000 in first three months 2024 compared to $ 1.8 million in first three months 2023.
These awards are held in our deferred compensation plan, are classified as a liability and are remeasured at fair value each reporting period.
−Removed: This mark-to-market amount is reported as deferred compensation expense in our consolidated statements of operations (see additional discussion below).
+Added: This mark-to-market amount is reported as deferred compensation expense in our consolidated statements of income (see additional discussion below).
Stock-Based Performance Awards
Internal Performance Metric Awards.
−Removed: These awards vest at the end of the three-year performance period.
+Added: These award s are expensed ratably over the service period and vest at the end of the three-year performance period.
The performance metrics are set by the Compensation Committee.
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 nine 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 $ 1.8 million in first nine months 2023 compared to expense of $ 5.3 million in first nine months 2022.
−Removed: These awards granted are earned, or not earned, based on the comparative performance of Range’s common stock measured against a predetermined group of companies in the peer group over a three-year performance period.
+Added: In first three months 2023, we granted 81,000 awards.
+Added: We recorded compensation expense associated with the prior year grants of $ 477,000 in first three months 2024 compared to expense of $ 948,000 in first three months 2023.
+Added: These awards granted are earned, or not earned, based on the comparative performance of Range’s common stock measured against a predetermined group of companies in the peer group over a three-year performance period.
The fair value of the TSR Awards is estimated on the date of grant using a Monte Carlo simulation model which utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award.
2 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 nine months 2023 and 2022:
−Removed: Nine Months Ended
−Removed: September 30,
+Added: The following assumptions were used to estimate the fair value of the TSR Awards granted during first three months 2024 and 2023:
+Added: Three Months Ended
Risk-free interest rate
1 unchanged sentence
Grant date fair value per unit
−Removed: In first nine 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 $ 1.3 million in first nine months 2023 compared to $ 2.3 million in the same period of 2022.
+Added: In first three months 2024, we granted 254,000 TSR Awards compared to 64,000 in the same period of the prior year.
+Added: We recorded compensation expense of $ 808,000 in first three months 2024 compared to $ 482,000 in the same period of 2023.
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 September 30, 2023:
+Added: The following is a summary of the activity for our restricted stock and performance awards at March 31, 2024:
Restricted Stock
10 unchanged sentences
Outstanding at December 31, 2023
−Removed: Outstanding at September 30, 2023
+Added: Outstanding at March 31, 2024
Amounts granted reflect performance units initially granted.
1 unchanged sentence
Deferred Compensation Plan
−Removed: 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.
+Added: 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.
Range provides a partial matching contribution to officers which generally vests at the end of three years .
1 unchanged sentence
Our common stock held in the Rabbi Trust is treated as a liability award as employees are allowed to take withdrawals from the Rabbi Trust either in cash or in Range stock.
−Removed: The liability for the vested portion of the stock held in the Rabbi Trust is reflected as deferred compensation liability in the accompanying consolidated balance sheets and is adjusted to fair value each reporting period by a charge or credit to deferred compensation plan expense on our consolidated statements of operations.
+Added: The liability for the vested portion of the stock held in the Rabbi Trust is reflected as deferred compensation liability in the accompanying consolidated balance sheets and is adjusted to fair value each reporting period by a
+Added: charge or credit to deferred compensation plan expense on our consolidated statements of income.
The assets of the Rabbi Trust, other than our common stock, are invested in marketable securities and reported at their market value as other assets in the accompanying consolidated balance sheets.
1 unchanged sentence
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 $ 9.0 million in third quarter 2023 compared to a mark-to-market loss of $ 5.8 million in third quarter 2022.
−Removed: 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.
−Removed: 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.
−Removed: (13) EXIT COSTS
−Removed: In third quarter 2020, we sold our North Louisiana assets and retained certain gathering, transportation and processing obligations which extend into 2030.
−Removed: These are contracts where we will not realize any future benefit.
−Removed: The estimated obligations are included in current and long-term divestiture contract obligation in our consolidated balance sheets.
−Removed: 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.
−Removed: In second quarter 2023, we recorded a net adjustment of $ 37.8 million to increase this obligation primarily for higher rates due to inflation.
−Removed: 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: The estimated discounted divestiture contract obligation was $ 389.9 million at September 30, 2023.
−Removed: In second quarter 2020, we negotiated capacity releases on certain transportation pipelines in Pennsylvania effective May 31, 2020 and extending through the remainder of the contract.
−Removed: The estimated remaining discounted obligation for these transportation capacity releases as of September 30, 2023 was $ 3.2 million.
−Removed: The following summarizes our exit costs for the three and nine months ended September 30, 2023 and 2022 (in thousands):
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Transportation contract capacity releases
−Removed: (including accretion of discount)
−Removed: Divestiture contract obligation
−Removed: (including accretion of discount)
−Removed: The following details the accrued exit cost liability activity for the nine months ended September 30, 2023 (in thousands):
−Removed: Balance at December 31, 2022
−Removed: Accretion of discount
−Removed: Changes in estimate
−Removed: Balance at September 30, 2023
−Removed: Includes the divestiture contract obligation and the transportation contract capacity release obligation.
+Added: We recorded a mark-to-market loss of $ 6.4 million in first quarter 2024 compared to a mark-to-market loss of $ 9.4 million in first quarter 2023.
+Added: The Rabbi Trust held 1.5 million shares ( 1.4 million vested shares) of Range stock at March 31, 2024 compared to 1.6 million shares ( 1.5 million vested shares) at December 31, 2023.
(13) CAPITAL STOCK
2 unchanged sentences
The following is a schedule of changes in the number of common shares outstanding since the beginning of 2023:
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended
+Added: March 31, 2024
+Added: December 31, 2023
Beginning balance
7 unchanged sentences
In 2019, the board of directors approved a stock repurchase program which was increased in size in 2022.
−Removed: At September 30, 2023, we had a remaining authorization to repurchase up to approximately $ 1.1 billion of our common stock.
+Added: At March 31, 2024, 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 nine 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 nine months ended September 30, 2023:
+Added: In first three months 2024, we did no t repurchase any shares.
+Added: (14) EXIT COSTS
+Added: In third quarter 2020, we sold our North Louisiana assets and retained certain gathering, transportation and processing obligations which extend into 2030.
+Added: These are contracts where we will not realize any future benefit.
+Added: The estimated obligations are included in current and long-term divestiture contract obligation in our consolidated balance sheets.
+Added: In first three months 2024, we recorded accretion expense of $ 10.3 million compared to $ 10.2 million in the same period of the prior year.
+Added: The estimated discounted divestiture contract obligation was $ 379.8 million at March 31, 2024.
+Added: 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.
+Added: The estimated remaining discounted obligation for these transportation capacity releases as of March 31, 2024 was $ 1.9 million.
+Added: The following summarizes our exit costs (including accretion of discount and any adjustments) for the three months ended March 31, 2024 and 2023 (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Beginning balance
−Removed: Rabbi trust shares distributed/sold
−Removed: Shares repurchased
−Removed: Ending balance
+Added: Transportation contract capacity releases
+Added: Divestiture contract obligation
+Added: The following details the accrued exit cost liability activity for the three months ended March 31, 2024 (in thousands):
+Added: Exit Costs (a)
+Added: Balance at December 31, 2023
+Added: Accretion of discount
+Added: Balance at March 31, 2024
+Added: (a) Includes the divestiture contract obligation and the transportation contract capacity release obligation.
(15) SUPPLEMENTAL CASH FLOW INFORMATION
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended
(in thousands)
2 unchanged sentences
Interest paid
−Removed: Non-cash investing and financing activities included:
+Added: Non-cash investing activities included:
Increase in asset retirement costs capitalized
8 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 September 30, 2023, liabilities for remediation were not material.
−Removed: 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.
+Added: As of March 31, 2024, liabilities for remediation were not material.
+Added: We are not aware of any environmental claims existing as of March 31, 2024 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.
+Added: Lease Commitments
+Added: In first quarter 2024, our total remaining lease commitments increased by $ 130.4 million primarily due to additional completions and drilling equipment contracts that were effective during first quarter 2024.
+Added: These commitments will be paid over the contractual terms over the next two years .
+Added: Transportation, Gathering and Processing Contracts
+Added: In first quarter 2024, our transportation and gathering commitments increased by approximately $ 580.0 million over the next twelve years , primarily due to contract extensions and certain agreements that were contingent on facility construction as of the end of December 31, 2023 and are now in service.
(17) Costs Incurred for Property Acquisition, Exploration and Development (a)
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended
+Added: March 31, 2024
+Added: December 31, 2023
(in thousands)
6 unchanged sentences
(a) Includes costs incurred whether capitalized or expensed.
−Removed: MANAGEMENT’S DISCUSSION AND ANA LYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
+Added: MANAGEMENT’S DISCUSSION AND ANA LYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview of Our Business
−Removed: We are a Fort Worth, Texas-based independent natural gas, natural gas liquids (NGLs) and crude oil and condensate company primarily engaged in the exploration, development and acquisition of natural gas properties in the Appalachian region of the United States.
+Added: We are an independent natural gas, natural gas liquids (NGLs), crude oil and condensate company primarily engaged in the exploration, development and acquisition of natural gas properties in the Appalachian region of the United States.
We operate in one segment and have a single company-wide management team that administers all properties as a whole rather than by discrete operating segments.
1 unchanged sentence
Our overarching business objective is to build stockholder value through returns-focused development of natural gas properties.
−Removed: Our strategy to achieve our business objective is to generate consistent cash flows from reserves and production through internally generated drilling projects occasionally coupled with complementary acquisitions and divestitures of non-core assets.
−Removed: Our revenues, profitability and future growth depend substantially on prevailing prices for natural gas, NGLs and oil and on our ability to economically find, develop, acquire, produce and market these reserves.
+Added: Our strategy to achieve our business objective is to generate consistent cash flows from reserves and production through internally generated drilling projects occasionally coupled with complementary acquisitions and divestitures of non-core or, at times, core assets.
+Added: Currently, our investment portfolio is focused on high-quality natural gas assets in the state of Pennsylvania.
+Added: Our revenues, profitability and future growth depend substantially on prevailing prices for natural gas, NGLs, crude oil and condensate and on our ability to economically find, develop, acquire and produce these reserves.
Commodity prices have been and are expected to remain volatile.
−Removed: Our primary near-term focus includes the following:
−Removed: operate safely while being good stewards of the environment;
−Removed: achieve competitive returns on investments;
−Removed: manage liquidity and further improve financial strength;
−Removed: focus on organic opportunities through disciplined capital investments;
−Removed: improve operational efficiencies and economic returns;
−Removed: reduce emissions and target net-zero Scope 1 and Scope 2 greenhouse gas emissions by year-end 2025;
−Removed: attract and retain quality employees;
−Removed: align employee incentives with our stockholders’
−Removed: interests and key business objectives.
+Added: We believe we are well-positioned to manage challenges during a low commodity price environment and that we can endure the continued volatility in current and future commodity prices by:
+Added: • exercising discipline in our capital investments;
+Added: • optimizing drilling, completion and operational efficiencies;
+Added: • maintaining a competitive cost structure;
+Added: • managing price risk through the hedging of our production;
+Added: • managing our balance sheet.
+Added: Prices for natural gas, NGLs, crude oil and condensate fluctuate widely and affect:
+Added: • our revenues, profitability and cash flow;
+Added: • the quantity of natural gas, NGLs and oil that we can economically produce;
+Added: • the quantity of natural gas, NGLs and oil shown as proved reserves;
+Added: • the amount of cash flow available to us for reinvestment;
+Added: • our ability to borrow and raise additional capital.
We prepare our financial statements in conformity with U.S.
1 unchanged sentence
We use the successful efforts method of accounting for our natural gas, NGLs and oil activities.
−Removed: Prices for natural gas, NGLs and oil fluctuate widely and affect:
−Removed: revenues, profitability and cash flow;
−Removed: the quantity of natural gas, NGLs and oil we can economically produce;
−Removed: the quantity of natural gas, NGLs and oil shown as proved reserves;
−Removed: the amount of cash flows available for reinvestment;
−Removed: our ability to borrow and raise additional capital.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the preceding consolidated financial statements and notes in Item 1.
1 unchanged sentence
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, 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.
−Removed: 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.
−Removed: Subsequently, high levels of domestic U.S.
−Removed: gas storage compared with the five-year average kept natural gas prices below $3.00 in both the second and third quarter 2023.
−Removed: 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.
−Removed: 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 generation.
−Removed: Other factors such as geopolitical disruptions, supply chain disruptions, cost inflation, concerns over a potential economic recession and the
−Removed: pace and extent of tightening global monetary policy may impact the supply and demand for oil, natural gas and NGLs.
+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 gas, future monetary fiscal 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 global market.
+Added: In first quarter 2024, natural gas prices declined primarily due to mild winter weather.
+Added: Longer term natural gas futures prices 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 compared with the past due to infrastructure constraints, moderated reinvestment rates and core inventory exhaustion.
+Added: In addition, the global energy crisis experienced in recent years further highlighted the low cost and low emissions shale gas resource base in North America, supporting continued strong structural demand growth for United States liquefied natural gas exports, domestic industrial gas demand and power generation to support anticipated data center demand growth.
+Added: Other factors such as geopolitical disruptions, supply chain disruptions, cost inflation, concerns over a potential economic recession and the pace and changes in global monetary policy may impact the demand for natural gas, NGLs and oil.
We continue to assess and monitor the impact and consequences of these factors on our operations.
−Removed: While expected commodity prices have declined in 2023 compared to prior year, we believe market data supports a positive outlook given significant new demand and export infrastructure currently under construction.
−Removed: We believe that our competitive full-cycle cost structure, robust drilling inventory, reduced debt levels and risk reduction through hedging have us well positioned within the industry.
−Removed: Prices for natural gas, NGLs and oil that we produce significantly impact our revenues and cash flows.
−Removed: Natural gas, NGLs and oil benchmarks 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.
−Removed: 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 nine months ended September 30, 2023 and 2022:
+Added: Commodity prices have remained volatile.
+Added: Benchmarks for natural gas and NGLs decreased in the first three months of 2024 compared to the same period of 2023.
+Added: As a result, we experienced decreases in our price realizations.
+Added: Despite overall lower prices, we continue to focus on creating long-term value for our stockholders along with positioning ourselves to be a responsible and reliable supplier of natural gas and NGLs.
+Added: The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the three months ended March 31, 2024 and 2023:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Average NYMEX prices (a)
2 unchanged sentences
Mont Belvieu NGLs composite (per gallon) (b)
−Removed: Based on weighted average of bid week prompt month prices on the New York Mercantile Exchange.
+Added: Based on weighted average of bid week prompt month prices on the New York Mercantile Exchange ("NYMEX").
Based on our estimated NGLs product composition per barrel.
+Added: Prices for natural gas, NGLs and oil that we produce significantly impact our revenues and cash flows.
Our price realizations (not including the impact of our derivatives) may differ from these benchmarks for many reasons, including quality, location or production being sold at different indices.
Consolidated Results of Operations
−Removed: Overview of Third Quarter 2023 Results
−Removed: 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.
−Removed: 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.
−Removed: See page 29 for more information on our derivative fair value income (loss).
−Removed: 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.
−Removed: Daily production averaged 2.1 Bcfe in both the third quarter 2023 and 2022.
−Removed: Our third quarter 2023 financial and operating performance included the following results:
−Removed: 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;
−Removed: 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 third quarter 2023 compared to $1.65 in the same period of 2022 primarily due to lower commodity prices;
−Removed: 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;
−Removed: general and administrative expense per mcfe decreased 5% from same period of 2022 primarily due to lower general office expenses, including technology costs;
−Removed: interest expense per mcfe decreased 20% from the same period of 2022 due to lower debt balances;
−Removed: depletion, depreciation and amortization ("DD&A") rate per mcfe decreased 2% from the same period of 2022.
−Removed: Third quarter 2023 also included the following highlights 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 $19.5 million, or $0.08 per share in third quarter 2022;
−Removed: as of September 30, we have $162.8 million of cash on hand along with $1.2 billion available under our credit facility.
−Removed: 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.
−Removed: Overview of First Nine Months 2023 Results
−Removed: 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.
−Removed: 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.
−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 $530.1 million in first nine months 2023 compared to a loss of $1.6 billion in first nine months of the prior year.
−Removed: 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.
−Removed: For additional information on our derivative fair value income (loss), see page 29.
−Removed: 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.
−Removed: Daily production averaged 2.1 Bcfe in both the first nine months 2023 and 2022.
−Removed: Our first nine months 2023 financial and operating performance included the following results:
−Removed: 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;
+Added: Overview of First Quarter 2024 Results
+Added: During first quarter 2024, we recognized net income of $92.1 million, or $0.38 per diluted common share compared to net income of $481.4 million, or $1.95 per diluted common share during first quarter 2023.
+Added: The lower net income in first quarter 2024 compared to first quarter 2023 is primarily due to lower realized prices.
+Added: For first quarter 2024, we experienced a decrease in revenue from the sale of natural gas, NGLs and oil due to a 19% 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 2023.
+Added: Daily production averaged 2.1 Bcfe in both the first quarter 2024 and 2023.
+Added: Our first quarter 2024 financial and operating performance included the following results:
+Added: • revenue from the sale of natural gas, NGLs and oil decreased 23% from the same period of 2023 with a 24% decrease in average realized prices (before cash settlements on our derivatives) slightly offset by higher production volumes;
• revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) decreased 11% from the same period of 2023;
−Removed: 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;
−Removed: 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;
−Removed: 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;
−Removed: interest expense per mcfe decreased 27% from the same period of 2022 due to lower debt balances;
−Removed: DD&A rate per mcfe decreased 2% from the same period of 2022.
−Removed: First nine months 2023 also included the following highlights to enhance our balance sheet, return capital to investors and preserve liquidity:
−Removed: 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;
−Removed: repurchased $9.7 million of our common stock compared to $308.9 million in the same period of 2022;
+Added: • direct operating expense per mcfe was $0.11 in first quarter 2024 compared to $0.14 in the same period of 2023 primarily due to lower workover costs along with lower water handling/hauling costs;
+Added: • transportation, gathering, processing and compression per mcfe was $1.49 in first quarter 2024 compared to $1.48 in the same period of 2023 primarily due to an increase in processed NGL volumes slightly offset by lower fuel costs;
+Added: • general and administrative expense increased 2% from same period of 2023;
+Added: • interest expense decreased 5% from the same period of 2023 due to lower debt balances.
+Added: First quarter 2024 also included the following highlights to enhance our balance sheet, return capital to investors and preserve liquidity:
+Added: • paid $19.4 million of dividends, or $0.08 per share;
• repurchased in the open market $19.4 million face value of our 4.875% senior notes due 2025 at a discount;
−Removed: 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 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.
+Added: • enhanced liquidity with the accumulation of cash on hand of $343.1 million along with $1.3 billion available under our credit facility.
+Added: We generated $331.9 million of cash from operating activities in first quarter 2024, a decrease of $143.0 million from first quarter 2023, which reflects the impact of lower realized prices.
Natural Gas, NGLs and Oil Sales, Production and Realized Price Calculations
1 unchanged sentence
Our revenues are generally recognized when control of the product is transferred to the customer and collectability is reasonably assured.
−Removed: In third quarter 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).
−Removed: 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.
−Removed: 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):
+Added: In first quarter 2024, natural gas, NGLs and oil sales decreased 23% compared to first quarter 2023 with a 24% decrease in average realized prices (before cash settlements on our derivatives).
+Added: The following table illustrates the primary components of natural gas, NGLs and oil sales for the three months ended March 31, 2024 and 2023 (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Natural gas, NGLs
−Removed: and oil sales
−Removed: Total natural gas,
−Removed: NGLs and oil sales
−Removed: Our production is determined by drilling success which offsets the natural decline of our natural gas and oil reserves through production.
−Removed: Our production for the three and nine months ended September 30, 2023 and 2022 is set forth in the following table:
+Added: Natural gas, NGLs and oil sales
+Added: Oil and condensate
+Added: Total natural gas, NGLs and oil sales
+Added: Production is maintained by drilling success as we place new wells on production which is partially offset by the natural decline of our natural gas and oil reserves through production.
+Added: Our production for the three months ended March 31, 2024 and 2023 is set forth in the following table:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Production (a)
Natural gas (mcf)
−Removed: Crude oil (bbls)
+Added: Oil and condensate (bbls)
Total (mcfe) (b)
−Removed: Average daily
−Removed: production (a)
+Added: Average daily production (a)
Natural gas (mcf)
−Removed: Crude oil (bbls)
+Added: Oil and condensate (bbls)
Total (mcfe) (b)
1 unchanged sentence
Oil and NGLs volumes are converted to mcfe at the rate of one barrel equals six mcf based upon the approximate relative energy content of oil to natural gas, which is not indicative of the relationship between oil and natural gas prices.
−Removed: Our average realized price received (including all derivative settlements and third-party transportation costs) during third quarter 2023 was $1.67 per mcfe compared to $3.30 per mcfe in third quarter 2022.
−Removed: 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.
+Added: Our average realized price received (including all derivative settlements and third-party transportation costs) during first quarter 2024 was $2.05 per mcfe compared to $2.52 per mcfe in first quarter 2023.
We believe computed final realized prices should include the total impact of transportation, gathering, processing and compression expense.
−Removed: Our average realized price (including all derivative settlements and third-party transportation costs) calculation also includes all cash settlements for derivatives.
−Removed: Average realized prices (excluding derivative settlements) do not include derivative settlements or third-party transportation costs which are reported in transportation, gathering, processing and compression expense in the accompanying consolidated statements of operations.
−Removed: Average realized prices (excluding derivative settlements) do include transportation costs where we receive net revenue proceeds from purchasers.
−Removed: Average realized price calculations for three and nine months ended September 30, 2023 and 2022 are shown below:
+Added: Our average realized prices (including all derivative settlements and third-party transportation costs) calculation also includes all cash settlements for derivatives.
+Added: Average realized prices (excluding derivative settlements) do not include derivative settlements or third-party transportation costs which are reported in transportation, gathering, processing and compression expense in the accompanying consolidated statements of income.
+Added: Average realized prices (including derivative settlements) do include transportation costs where we receive net revenue proceeds from purchasers.
+Added: Average realized price calculations for three months ended March 31, 2024 and 2023 are shown below:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Average Prices
−Removed: Average realized prices (excluding
−Removed: derivative settlements):
+Added: Average realized prices (excluding derivative settlements):
Natural gas (per mcf)
NGLs (per bbl)
−Removed: Crude oil and condensate (per bbl)
+Added: Oil and condensate (per bbl)
Total (per mcfe) (a)
−Removed: Average realized prices (including all
−Removed: derivative settlements):
+Added: Average realized prices (including all derivative settlements):
Natural gas (per mcf)
NGLs (per bbl)
−Removed: Crude oil and condensate (per bbl)
+Added: Oil and condensate (per bbl)
Total (per mcfe) (a)
−Removed: Average realized prices (including all
−Removed: derivative settlements and third-party
−Removed: transportation costs paid by Range):
+Added: Average realized prices (including all derivative settlements
+Added: and third party transportation costs paid by Range):
Natural gas (per mcf)
NGLs (per bbl)
−Removed: Crude oil and condensate (per bbl)
+Added: Oil and condensate (per bbl)
Total (per mcfe) (a)
4 unchanged sentences
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Average natural gas differentials below NYMEX
Realized gains on basis hedging
−Removed: 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):
+Added: The following tables reflect our production and average sales prices (excluding derivative settlements and third-party transportation costs paid by Range) (in thousands, except prices):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Price (per mcf)
2 unchanged sentences
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Price (per bbl)
1 unchanged sentence
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Oil and condensate
Price (per bbl)
Production (Mbbls)
−Removed: Crude oil sales
+Added: Oil and condensate
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Price (per mcfe)
Production (Mmcfe)
−Removed: Total natural gas,
−Removed: NGLs and oil sales
−Removed: Transportation, gathering, processing and compression expense was $277.2 million in third quarter 2023 compared to $323.0 million in third quarter 2022.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: Total natural gas, NGLs and oil sales
+Added: Transportation, gathering, processing and compression expense was $290.9 million in first quarter 2024 compared to $285.5 million in first quarter 2023.
+Added: These third-party costs are higher in first quarter 2024 when compared to first quarter 2023 primarily due to higher processing costs resulting from an increase in NGL volumes processed partially offset by lower fuel cost.
We have included these costs in the calculation of average realized prices (including all derivative settlements and third-party transportation expenses paid by Range).
−Removed: The following table summarizes transportation, gathering, processing and compression expense for the three and nine months ended September 30, 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 months ended March 31, 2024 and 2023 on a per mcf and per barrel basis (in thousands, except for costs per unit):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Transportation, gathering,
−Removed: processing and compression
+Added: Transportation, gathering, processing and compression
Natural gas (per mcf)
1 unchanged sentence
Oil (per bbl)
−Removed: Derivative fair value income (loss) was income of $38.4 million in third quarter 2023 compared to a loss of $457.7 million in
−Removed: third quarter 2022.
−Removed: 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.
+Added: Derivative fair value income was income of $46.6 million in first quarter 2024 compared to income of $368.0 million in first quarter 2023.
All of our derivatives are accounted for using the mark-to-market accounting method.
2 unchanged sentences
Gains on our derivatives generally indicate potentially lower wellhead revenues in the future while losses indicate potentially higher future wellhead revenues.
−Removed: The following table summarizes the impact of our commodity derivatives for the three and nine months ended September 30, 2023 and 2022 (in thousands):
+Added: The following table summarizes the impact of our commodity derivatives for the three months ended March 31, 2024 and 2023 (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Derivative fair value income (loss) per
−Removed: consolidated statements of operations
+Added: Derivative fair value income per consolidated statements of income
Non-cash fair value (loss) income:
2 unchanged sentences
NGLs derivatives
−Removed: Freight derivatives
Divestiture contingent consideration
4 unchanged sentences
NGLs derivatives
−Removed: Total net cash receipt (payment)
+Added: Total net cash receipt
Non-cash fair value adjustments on commodity derivatives is a non-U.S.
3 unchanged sentences
Non-cash fair value adjustments on commodity derivatives is not a measure of financial or operating performance under U.S.
−Removed: GAAP, nor should it be considered a substitute for derivative fair value income or loss as reported in our consolidated statements of operations.
+Added: GAAP, nor should it be considered a substitute for derivative fair value income or loss as reported in our consolidated statements of income.
This also includes the change in fair value of our divestiture contingent consideration.
−Removed: 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).
−Removed: The revenue in third quarter 2023 also includes the receipt of $1.3 million of interest income.
−Removed: 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.
−Removed: 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.
+Added: Brokered natural gas, marketing and other revenue in first quarter 2024 was $31.8 million compared to $82.1 million in first quarter 2023 which is the result of lower broker sales prices and lower broker sales volumes (volumes not related to our production).
We continue to optimize our transportation portfolio using these volumes.
+Added: Such revenue in first quarter 2024 also includes the receipt of $2.9 million of interest income compared to $1.0 million in the same period of the prior year.
+Added: Other marketing revenue for first quarter 2023 includes the receipt of a $3.6 million make-whole payment.
See also Brokered natural gas and marketing expense below for more information on our net brokered margin.
1 unchanged sentence
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 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.
−Removed: The following table presents information about certain of our expenses on a per mcfe basis for the three and nine months ended September 30, 2023 and 2022:
+Added: The following table presents information about certain of our expenses on a per mcfe basis for the three months ended March 31, 2024 and 2023:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Direct operating expense
2 unchanged sentences
Interest expense
−Removed: Depletion, depreciation and
−Removed: amortization expense
−Removed: Direct operating expense was $22.6 million in third quarter 2023 compared to $21.3 million in third quarter 2022.
−Removed: Direct operating expenses include normally recurring expenses to operate and produce our wells, well workovers and repair-related expenses.
−Removed: 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.
−Removed: Our production volumes were slightly lower in third quarter 2023 compared to the same period of the prior year.
−Removed: We incurred $603,000 of workover costs in third quarter 2023 compared to $223,000 in third quarter 2022.
−Removed: These costs are expected to enhance production from existing wells.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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 handling/hauling costs.
−Removed: The following table summarizes direct operating expense per mcfe for the three and nine months ended September 30, 2023 and 2022:
+Added: Depletion, depreciation and amortization expense
+Added: Direct operating expense was $22.2 million in first quarter 2024 compared to $27.0 million in first quarter 2023.
+Added: Direct operating expenses include normally recurring expenses to operate and produce our wells, non-recurring workover costs and repair-related expenses.
+Added: Our direct operating costs decreased in first quarter 2024 primarily due to lower workover and lower water handling/hauling costs.
+Added: We incurred $869,000 of workover costs in first quarter 2024 compared to $2.9 million in first quarter 2023.
+Added: The following table summarizes direct operating expense per mcfe for the three months ended March 31, 2024 and 2023:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Direct operating
3 unchanged sentences
Taxes other than income expense is predominately comprised of the Pennsylvania impact fee which is paid based on market commodity prices.
−Removed: 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 $4.5 million in third quarter 2023 compared to $8.4 million in third quarter 2022.
+Added: In 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.
+Added: This impact fee was $5.7 million in first quarter 2024 compared to $6.8 million in first quarter 2023.
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 $18.0 million in first nine months 2023 compared to $22.5 million in first nine months 2022 which reflects lower natural gas prices.
−Removed: 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 nine months ended September 30, 2023 and 2022:
+Added: This category also includes franchise, real estate and other applicable taxes.
+Added: First quarter 2024 includes the refund of $618,000 associated with state commercial activity taxes.
+Added: The following table summarizes taxes other than income per mcfe for the three months ended March 31, 2024 and 2023:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Taxes other than income
Total taxes other than income
−Removed: General and administrative (G&A) expense was $38.1 million in third quarter 2023 compared to $40.6 million in third quarter 2022.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: The following table summarizes G&A expenses on a per mcfe basis for the three and nine months ended September 30, 2023 and 2022:
+Added: General and administrative (G&A) expense was $43.9 million in first quarter 2024 compared to $43.1 million in first quarter 2023.
+Added: The first quarter 2024 increase of $795,000 when compared to the same period of 2023 is primarily due to aggregate impacts of cost inflation.
+Added: The following table summarizes G&A expenses on a per mcfe basis for the three months ended March 31, 2024 and 2023:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
General and administrative
1 unchanged sentence
Stock-based compensation
−Removed: Total general and
−Removed: administrative expense
−Removed: Interest expense was $30.6 million in third quarter 2023 compared to $38.7 million in third quarter 2022.
−Removed: Interest expense was $93.9 million for first nine months 2023 compared to $127.9 million for first nine months of 2022.
−Removed: The following table presents information about interest expense per mcfe for the three and nine months ended September 30, 2023 and 2022:
+Added: Total general and administrative expense
+Added: Interest expense was $30.5 million in first quarter 2024 compared to $32.2 million in first quarter 2023.
+Added: The following table presents information about interest expense per mcfe for the three months ended March 31, 2024 and 2023:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Bank credit facility
−Removed: Amortization of deferred
−Removed: financing costs and other
+Added: Amortization of deferred financing costs and other
Total interest expense
−Removed: Average debt outstanding
+Added: Average debt outstanding ($000s)
Average interest rate (a)
Includes commitment fees but excludes debt issuance costs.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Depletion, depreciation and amortization expense was $87.6 million in third quarter 2023 compared to $90.5 million in third quarter 2022.
−Removed: 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 third quarter 2023 compared to $0.45 per mcfe in third quarter 2022.
−Removed: DD&A expense was $259.2 million in first nine months 2023 compared to $262.6 million in the same period of 2022.
−Removed: 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 nine months 2023 compared to a $0.45 in the same period of 2022.
+Added: The decrease in interest expense for first quarter 2024 from the same period of 2023 was primarily due to lower average outstanding debt balances and a slightly lower average interest rate.
+Added: We had no debt outstanding on the bank credit facility for first quarter 2024 compared to $32.0 million in first quarter 2023 and the weighted average interest rate on the bank credit facility was 8.4% in first quarter 2023.
+Added: Depletion, depreciation and amortization expense was $87.1 million in first quarter 2024 compared to $86.6 million in first quarter 2023.
+Added: This increase is due to slightly higher production volumes.
+Added: Depletion expense, the largest component of DD&A expense, was $0.44 per mcfe in first quarter 2024 and first quarter 2023.
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 nine months ended September 30, 2023 and 2022:
+Added: The following table summarizes DD&A expense per mcfe for the three months ended March 31, 2024 and 2023:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Depletion and amortization
3 unchanged sentences
Our total operating expenses also include other expenses that generally do not trend with production.
−Removed: These expenses include stock-based compensation, brokered natural gas and marketing expense, exploration expense, abandonment and impairment of unproved properties, exit costs, deferred compensation plan expenses and gain or loss on early extinguishment of debt.
−Removed: Stock-based compensation includes the amortization of restricted stock grants and PSUs.
−Removed: The following table details the allocation of stock-based compensation to functional expense categories for the three and nine months ended September 30, 2023 and 2022 (in thousands):
+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 expense and gain or loss on early extinguishment of debt.
+Added: Stock-based compensation includes the amortization of restricted stock grants and performance units.
+Added: The following table details the allocation of stock-based compensation to functional expense categories for the three months ended March 31, 2024 and 2023 (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Direct operating expense
3 unchanged sentences
Total stock-based compensation
−Removed: Brokered natural gas and marketing expense was $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).
−Removed: 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.
−Removed: 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):
+Added: Brokered natural gas and marketing expense was $31.6 million in first quarter 2024 compared to $67.1 million in first quarter 2023 due to lower commodity prices and lower broker purchase volumes (volumes not related to our production).
+Added: The following table details our brokered natural gas, marketing and other net margin for the three months ended March 31, 2024 and 2023 (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Brokered natural gas and
+Added: Brokered natural gas and marketing
Brokered natural gas sales
1 unchanged sentence
Interest income
−Removed: Other marketing revenue
−Removed: Brokered natural gas purchases (a)
+Added: Other marketing revenue and other income
+Added: Brokered natural gas purchases and transportation
Brokered NGLs purchases
Other marketing expense
−Removed: Net brokered natural gas and
−Removed: marketing margin
−Removed: Includes transportation costs.
−Removed: 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.
−Removed: 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.
−Removed: The following table details our exploration expense for the three and nine months ended September 30, 2023 and 2022 (in thousands):
+Added: Net brokered natural gas and marketing margin
+Added: Exploration expense was $4.5 million in first quarter 2024 compared to $4.6 million in first quarter 2023.
+Added: The following table details our exploration expense for the three months ended March 31, 2024 and 2023 (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Delay rentals and other
2 unchanged sentences
Total exploration expense
−Removed: Abandonment and impairment of unproved properties expense was $11.0 million in third quarter 2023 compared to $3.2 million in third quarter 2022.
−Removed: 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.
−Removed: 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.
+Added: Abandonment and impairment of unproved properties expense was $2.4 million in first quarter 2024 compared to $7.5 million in first quarter 2023.
+Added: Abandonment and impairment of unproved properties for first quarter 2024 decreased when compared to the same period of 2023 due to lower 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 our future development plans can be leased again.
−Removed: Exit costs were $10.7 million in third quarter 2023 compared to $11.1 million in third quarter 2022.
−Removed: 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.
−Removed: Exit costs were $71.7 million in first nine months 2023 compared to $58.2 million in first nine months 2022.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: However, we also believe acreage needed for our future development plans can be leased again.
+Added: Exit costs were $10.3 million in first quarter 2024 compared to $12.3 million in first quarter 2023.
+Added: In first quarter 2024, we recorded $10.3 million accretion expense primarily related to retained liabilities for certain gathering, transportation and processing obligations extending until 2030 compared to accretion expense of $10.3 million in the same quarter of the prior year.
+Added: First quarter 2023 also included a $2.0 million adjustment for the difference between estimated and actual payments.
+Added: Deferred compensation plan expense was a loss of $6.4 million in first quarter 2024 compared to a loss of $9.4 million in first quarter 2023.
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 $29.40 at June 30, 2023 to $32.41 September 30, 2023.
−Removed: 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.
−Removed: 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.
−Removed: Our stock price increased from $25.02 at December 31, 2022 to $32.41 at September 30, 2023.
−Removed: 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.
−Removed: (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.
−Removed: 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.
−Removed: In first quarter 2022, we announced a call for the redemption of $850.0 million of our outstanding 9.25% senior notes due 2026.
−Removed: The redemption price equaled 106.938% of par plus accrued and unpaid interest.
−Removed: 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 $15.7 million in third quarter 2023 compared to expense of $59.6 million in third quarter 2022.
−Removed: 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.
−Removed: The 2023 and 2022 effective tax rates were different than the statutory tax rate due to state income taxes, equity compensation, valuation allowances and other discrete tax items.
−Removed: Management’s Discussion and Analysis of Financial Condition, Capital Resources and Liquidity
−Removed: Cash flows from operations are primarily affected by production volumes and commodity prices, net of the effects of settlements of our derivatives.
−Removed: Our cash flows from operations are also impacted by changes in working capital.
−Removed: Short-term liquidity needs are satisfied by borrowings under our bank credit facility and/or cash on hand.
−Removed: Because of this, and because our principal source of operating cash flows (proved reserves to be produced in future years) cannot be reported as working capital, we often have low or negative working capital.
−Removed: 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 budget, fixed costs or other investment requirements.
−Removed: Any payments due to counterparties under our derivative contracts should ultimately be funded by proceeds received from the sale of our production.
−Removed: Production receipts, however, often lag payments to the counterparties.
−Removed: 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.
−Removed: The following table presents sources and uses of cash and cash equivalents for the nine months ended September 30, 2023 and 2022 (in thousands):
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Our stock price increased from $30.44 at December 31, 2023 to $34.43 at March 31, 2024.
+Added: In the same period of the prior year our stock price increased from $25.02 at December 31, 2022 to $26.47 at March 31, 2023.
+Added: Income tax expense was an expense of $18.2 million in first quarter 2024 compared to an expense of $121.9 million in first quarter 2023.
+Added: The 2024 and 2023 effective tax rates were different than the statutory tax rates due to state income taxes, equity compensation and the limitation of our executive compensation.
+Added: Management’s Discussion and Analysis of Financial Condition, Capital Resources and Liquidity
+Added: Commodity prices are the most significant factor impacting our revenues, net income, operating cash flows, the amount of capital we invest in our business, payment of dividends and funding of share or debt repurchases.
+Added: Commodity prices have been and are expected to remain volatile.
+Added: Our top priorities for using cash provided by operations are to fund our capital budget program, debt repayments and return capital to stockholders.
+Added: We currently believe we have sufficient liquidity and capital resources to execute our business plan for the foreseeable future and across a wide range of commodity price environments.
+Added: 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.
+Added: The following table presents sources and uses of cash and cash equivalents for the three months ended March 31, 2024 and 2023 (in thousands):
+Added: Three Months Ended
Sources of cash and cash equivalents
1 unchanged sentence
Disposal of assets
−Removed: Issuance of senior notes
Borrowing on credit facility
Total sources of cash and cash equivalents
−Removed: Uses of cash and cash equivalents:
+Added: Uses of cash and cash equivalent
Additions to natural gas properties
−Removed: Repayment on credit facility
+Added: Repayments on credit facility
Acreage purchases
1 unchanged sentence
Repayment of senior notes
−Removed: Treasury stock purchases
+Added: Purchases of treasury stock
Dividends paid
−Removed: Debt issuance costs
Total uses of cash and cash equivalents
Sources of Cash and Cash Equivalents
−Removed: 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.
+Added: Cash flows provided from operating activities in first three months 2024 was $331.9 million compared to $475.0 million in first three months 2023.
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 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).
−Removed: 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.
−Removed: 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.
+Added: The decrease in cash provided from operating activities from first three months 2023 to first three months 2024 reflects lower realized prices.
+Added: As of March 31, 2024, we have hedged more than 50% of our projected natural gas production for the remainder of 2024.
+Added: Changes in working capital (as reflected in our consolidated statements of cash flows) for first three months 2024 was a positive $28.3 million compared to a positive $79.7 million for first three months 2023.
Uses of Cash and Cash Equivalents
−Removed: Additions to natural gas properties for first nine months 2023 were consistent with expectations relative to our announced 2023 capital budget.
−Removed: 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.
−Removed: 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.
+Added: Additions to natural gas properties for first three months 2024 were consistent with expectations relative to our announced 2024 capital budget.
+Added: Repayment of senior notes for first three months 2024 include the repurchase and settlement of $15.1 million principal amount of our 4.875% senior notes due 2025 at a discount.
Liquidity and Capital Resources
−Removed: Based on the current commodity price environment, we believe we have sufficient liquidity and capital resources to execute our business plan for the foreseeable future.
−Removed: We continue to manage the duration and level of our drilling and completion commitments in order to maintain flexibility with regard to our activity level and capital expenditures.
−Removed: As of September 30, 2023, we had cash on hand in the amount of $162.8 million and availability under our credit facility of $1.2 billion.
−Removed: Sources of Cash
−Removed: We expect our 2023 capital program to be funded by cash flows from operations.
−Removed: During the nine months ended September 30, 2023, we generated $751.8 million of cash flows from operating activities.
−Removed: 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.
+Added: Our main sources of liquidity are cash, internally generated cash flow from operations, capital market transactions, and our bank credit facility.
+Added: At March 31, 2024, we had approximately $1.6 billion of liquidity consisting of $343.1 million of cash on hand and $1.3 billion of availability under our bank credit facility.
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 current capital program, we may also have the option to raise funds through new debt or equity offerings or from other sources of financing.
−Removed: All of our sources of liquidity can be affected by the general conditions of the broader economy, force majeure events and fluctuations in commodity prices, operating costs and volumes produced, all of which affect us and our industry.
−Removed: We have no control over market prices for natural gas, NGLs or oil, although we may be able to influence realized revenues through the use of derivative contracts as part of our commodity price risk management.
+Added: We expect our 2024 capital program to be funded by cash flows from operations.
+Added: During the three months ended March 31, 2024, we generated $331.9 million of cash flows from operating activities.
Bank Credit Facility
Our bank credit facility is secured by substantially all of our assets.
−Removed: 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.
−Removed: We also have undrawn letters of credit of $262.8 million as of September 30, 2023.
−Removed: We were in compliance with the applicable covenants under the bank credit facility as of September 30, 2023.
−Removed: The borrowing base is subject to regular, semi-annual redeterminations and is dependent on a number of factors but primarily the lender’s assessment of our future cash flows.
−Removed: Our scheduled borrowing base redetermination was completed in September 2023 with our borrowing base and lender commitments reaffirmed.
−Removed: 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.
−Removed: 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%.
−Removed: The applicable spread is dependent upon borrowings relative to the borrowing base.
−Removed: 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.
+Added: As of March 31, 2024, 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 have undrawn letters of credit of $173.4 million as of March 31, 2024, which reduce our borrowing capacity under our bank credit facility.
+Added: The borrowing base is subject to regular, semi-annual redeterminations and is dependent on a number of factors but primarily the lenders' assessment of our future cash flows.
+Added: Our scheduled borrowing base redetermination was completed in March 2024 with our borrowing base and lender commitments reaffirmed.
+Added: We currently must comply with certain financial and non-financial covenants, including limiting dividend payments, debt incurrence and requirements that maintain certain financial ratios (as defined in our bank credit agreement).
+Added: We were in compliance with all such covenants at March 31, 2024.
+Added: Capital Requirements
We use cash for the development, exploration and acquisition of natural gas properties and for the payment of gathering, transportation and processing costs, operating, general and administrative costs, taxes and debt obligations, including interest, dividends and share repurchases.
Expenditures for the development, exploration and acquisition of natural gas properties are the primary use of our capital resources.
−Removed: 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.
+Added: During first three months 2024, we used operating cash flows to fund $155.6 million of capital expenditures as reported in our consolidated statement of cash flows within investing activities.
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.
5 unchanged sentences
Our next significant long-term debt maturity is in the amount of $669.0 million due 2025.
−Removed: As part of our strategy for 2023, we will continue to focus on improving our financial strength.
−Removed: Our quarterly cash dividend was reinstated in third quarter 2022.
−Removed: See also Cash Dividend Payments below.
−Removed: During first nine 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 September 30, 2023.
−Removed: Shelf Registration
−Removed: We have a universal shelf registration statement filed with the SEC under which we, as a well-known seasoned issuer for purposes of SEC rules, have the ability to sell an indeterminate amount of various types of debt and equity securities.
+Added: As part of our strategy for 2024, we plan to maintain or improve our financial strength.
Cash Dividend Payments
−Removed: 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.
+Added: On March 1, 2024, our board of directors approved a dividend of $0.08 per share payable on March 29, 2024 to stockholders of record at the close of business on March 15, 2024.
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.
+Added: Stock Repurchase Program
+Added: Our total remaining share repurchase authorization was approximately $1.1 billion at March 31, 2024.
+Added: Other Sources of Liquidity
+Added: We have a universal shelf registration statement filed with the SEC under which we, as a well-known seasoned issuer for purposes of SEC rules, have the future ability to sell an indeterminate amount of various types of debt and equity securities.
Cash Contractual Obligations
Our contractual obligations include long-term debt, operating leases, derivative obligations, asset retirement obligations and transportation, processing and gathering commitments including the divestiture contractual commitment.
−Removed: As of 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.
−Removed: As of September 30, 2023, we had a total of $262.8 million of undrawn letters of credit under our bank credit facility.
−Removed: Since December 31, 2022, there have been no material changes to our contractual obligations.
+Added: As of March 31, 2024, 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: In first quarter 2024, our transportation and gathering commitments increased by approximately $580.0 million over the next twelve years primarily due to contract extensions and certain agreements that were contingent on facility construction as of the end of December 31, 2023 and are now in service.
+Added: In first quarter 2024, our total remaining operating lease commitments increased by $130.4 million primarily due to additional completions and drilling equipment contracts that were effective during first quarter 2024.
+Added: These commitments will be paid over the contractual terms over the next two years.
+Added: Since December 31, 2023, there have been no material changes to our other contractual obligations.
Interest Rates
−Removed: At September 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 September 30, 2023.
+Added: At March 31, 2024, 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 March 31, 2024.
Off-Balance Sheet Arrangements
6 unchanged sentences
Forward-Looking Statements
−Removed: Certain sections of Management’s Discussion and Analysis of Financial Condition and Results of Operations include forward-looking statements concerning trends or events potentially affecting our business.
+Added: Certain sections of Management’s Discussion and Analysis of Financial Condition and Results of Operations include forward-looking statements concerning trends or events potentially affecting our business.
These statements typically contain words such as "anticipates," "believes," "expects," "targets," "plans," "estimates," "predicts," "may," "should," "would" or similar words indicating that future outcomes are uncertain.
24 unchanged sentences
In addition, a portion of our NGLs, which are 34% of proved reserves, are also impacted by changes in oil prices.
−Removed: 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 September 30, 2023.
+Added: At times, we are also exposed to market risks related to changes in interest rates.
+Added: These risks did not change materially from December 31, 2023 to March 31, 2024.
Commodity Price Risk
5 unchanged sentences
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 September 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 September 30, 2023, approximated a net unrealized pretax gain of $192.1 million.
+Added: At March 31, 2024, 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 March 31, 2024, approximated a net unrealized pretax gain of $393.9 million.
These contracts expire monthly through December 2026.
−Removed: At September 30, 2023, the following commodity derivative contracts were outstanding, excluding our basis swaps which are discussed below:
+Added: At March 31, 2024, the following commodity derivative contracts were outstanding, excluding our basis swaps which are separately discussed below:
Contract Type
1 unchanged sentence
Weighted Average Hedge Price
−Removed: Fair Market Value (in thousands)
+Added: Fair Market Value
+Added: (in thousands)
Natural Gas (a)
4 unchanged sentences
400,000 Mmbtu/day
−Removed: 436,694 Mmbtu/day
Three-way Collars
1 unchanged sentence
60,000 Mmbtu/day
−Removed: 52,500 Mmbtu/day
+Added: Crude Oil (b)
4,607 bbls/day
−Removed: January-September 2024
+Added: April - September 2024
+Added: NGLs (C3-Propane)
6,767 bbls/day
−Removed: January-September 2024
−Removed: 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.
−Removed: 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.
−Removed: The fair value of these swaptions at September 30, 2023 was a net derivative liability of $2.4 million.
+Added: We also sold natural gas swaptions of 40,000 Mmbtu/day for calendar year 2026 at a weighted average price of $4.11/Mmbtu that expire June 2024.
+Added: The fair value of these swaptions at March 31, 2024 was a net derivative liability of $358,000.
+Added: We also sold crude oil swaptions of 2,500 bbls/day for calendar year 2025 at a weighted average price of $80.00/bbl that expire through September 2024.
+Added: The fair value of these swaptions at March 31, 2024 was a net derivative liability of $1.8 million.
We believe NGLs prices are somewhat seasonal, particularly for propane.
13 unchanged sentences
Basis swap agreements effectively fix the basis adjustments.
−Removed: The fair value of the natural gas basis swaps was a gain of $17.1 million at September 30, 2023 and they settle monthly through December 2026.
−Removed: 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.
−Removed: The fair value at September 30, 2023 was a gain of $7.4 million.
−Removed: The following table shows the fair value of our derivatives and the hypothetical changes in fair value that would result from a 10% and a 25% change in commodity prices at September 30, 2023.
+Added: The fair value of the natural gas basis swaps was a loss of $27.0 million at March 31, 2024 and they settle through December 2028.
+Added: Commodity Sensitivity Analysis
+Added: The following table shows the fair value of our derivatives and the hypothetical changes in fair value that would result from a 10% and a 25% change in commodity prices at March 31, 2024.
We remain at risk for possible changes in the market value of commodity derivative instruments;
1 unchanged sentence
Hypothetical Change in Fair Value
−Removed: Hypothetical Change in Fair Value
Increase in Commodity
1 unchanged sentence
Three-way collars
−Removed: 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 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 March 31, 2024, our derivative counterparties include fourteen financial institutions, of which eight 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 September 30, 2023, we had total debt of $1.8 billion.
+Added: At March 31, 2024, we had total debt of approximately $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 September 30, 2023.
+Added: however, we did not have any borrowings outstanding as of March 31, 2024.
CONTROLS A ND PROCEDURES
2 unchanged sentences
Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC.
−Removed: Based upon the evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective as of September 30, 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 March 31, 2024 at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
−Removed: There was no change in our system of internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the three months ended September 30, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
−Removed: P ART II –
−Removed: OTHER INFORMATION
+Added: There was no change in our system of internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the three months ended March 31, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
+Added: P ART II – OTHER INFORMATION
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.