3 unchanged sentences
(In thousands, except per share data)
+Added: September 30,
Current assets:
34 unchanged sentences
Common stock, $ 0.01 par, 475,000,000 shares authorized, 267,423,909 issued at
−Removed: June 30, 2024 and 265,756,369 shares at December 31, 2023
−Removed: Common stock held in treasury, at cost, 25,020,936 shares at June 30, 2024 and
+Added: September 30, 2024 and 265,756,369 shares at December 31, 2023
+Added: Common stock held in treasury, at cost, 26,116,065 shares at September 30, 2024 and
24,716,065 shares at December 31, 2023
8 unchanged sentences
(Unaudited, in thousands, except per share data)
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
Revenues and other income:
16 unchanged sentences
Income before income taxes
−Removed: Income tax (benefit) expense:
+Added: Income tax expense:
Net income per common share:
5 unchanged sentences
(Unaudited, in thousands)
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
Other comprehensive income:
7 unchanged sentences
(Unaudited, in thousands)
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
Operating activities:
Adjustments to reconcile net income to net cash provided from operating activities:
−Removed: Deferred income tax (benefit) expense
+Added: Deferred income tax expense
Depletion, depreciation and amortization
42 unchanged sentences
comprehensive
−Removed: income (loss)
Balance as of December 31, 2023
12 unchanged sentences
Balance as of June 30, 2024
+Added: Issuance of common stock
+Added: Stock-based compensation expense
+Added: Dividends ($ 0.08 per share)
+Added: Treasury stock repurchased
+Added: Other comprehensive loss
+Added: Balance as of September 30, 2024
The accompanying notes are an integral part of these consolidated financial statements.
22 unchanged sentences
Balance as of June 30, 2023
+Added: Issuance of common stock
+Added: Stock-based compensation expense
+Added: Dividends ($ 0.08 per share)
+Added: Other comprehensive income
+Added: Balance as of September 30, 2023
The accompanying notes are an integral part of these consolidated financial statements.
2 unchanged sentences
(1) SUMMARY OF ORGANIZATION AND NATURE OF BUSINESS
−Removed: Range Resources Corporation is a Fort Worth, Texas-based independent natural gas, natural gas liquids (NGLs) and oil (predominately condensate referred to herein as "oil") company engaged in the exploration, development and acquisition of natural gas and liquids properties in the Appalachian region of the United States.
+Added: Range Resources Corporation ("Range") is a Fort Worth, Texas-based independent natural gas, natural gas liquids (NGLs) and oil (predominately condensate referred to herein as "oil") company engaged in the exploration, development and acquisition of natural gas and liquids properties in the Appalachian region of the United States.
Our objective is to build stockholder value through returns-focused development of our properties.
3 unchanged sentences
All adjustments are of a normal recurring nature unless otherwise disclosed.
−Removed: These consolidated financial statements, including selected notes, have been prepared in accordance with the applicable rules of the Securities Exchange Commission (the SEC) and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (U.S.
+Added: These consolidated financial statements, including selected notes, have been prepared in accordance with the applicable rules of the Securities Exchange Commission ("SEC") and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (U.S.
GAAP) for complete financial statements.
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 second quarter and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year.
+Added: The results of operations for third quarter and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the full year.
We make certain reclassifications to the prior year statements to conform with the current year presentation.
2 unchanged sentences
Not Yet Adopted
−Removed: There were no issued or pending accounting standards in second quarter 2024 expected to have a material impact on our consolidated financial statements.
+Added: There were no issued or pending accounting standards in third quarter 2024 that are expected to have a material impact on our consolidated financial statements.
(4) REVENUES FROM CONTRACTS WITH CUSTOMERS
3 unchanged sentences
Brokered revenue attributable to each product sales type is included here because the volume of product that we purchase is subsequently sold to separate counterparties in accordance with existing sales contracts under which we also sell our production.
−Removed: Other marketing revenue for the three months ended June 30, 2023 includes the receipt of a $ 1.5 million make-whole payment and the six months ended June 30, 2023 includes a total receipt of $ 5.1 million in make-whole payments.
−Removed: Accounts receivable attributable to our revenue contracts with customers was $ 201.4 million at June 30, 2024 and $ 263.9 million at December 31, 2023 .
+Added: Other marketing revenue for the nine months ended September 30, 2023 includes the receipt of $ 5.1 million in make-whole payments.
+Added: Accounts receivable attributable to our revenue contracts with customers was $ 177.1 million at September 30, 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: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Natural gas sales
6 unchanged sentences
We evaluate and update our annual effective income tax rate on a quarterly basis based on current and forecasted operating results and tax laws.
−Removed: 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: For the three and six months ended June 30, 2024 and 2023 , our overall effective tax rate was different than the federal statutory rate due primarily to state income taxes, tax credits, equity compensation and the limitation of executive compensation expense.
−Removed: 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.
+Added: For the three and nine months ended September 30, 2024 and 2023 , our overall effective tax rate was different than the federal statutory rate due primarily to state income taxes, tax credits, equity compensation and the limitation of executive compensation expense.
+Added: Current income taxes reflect estimated state and federal income taxes due for 2024 which are 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: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Net income, as reported
9 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Weighted average common shares outstanding – basic
2 unchanged sentences
Weighted average common shares outstanding – diluted
−Removed: Weighted average common shares outstanding – basic for second quarter 2024 excludes 1.5 million shares of restricted stock held in our deferred compensation plan compared to 5.4 million shares in second quarter 2023 (although all awards are issued and outstanding upon grant).
−Removed: Weighted average common shares outstanding – basic for first six months 2024 excludes 1.6 million shares of restricted stock held in our deferred compensation plan compared to 5.5 million shares for first six months 2023.
−Removed: For the three months ended June 30, 2024 , equity grants of 17,000 shares were outstanding but not included in the computation of diluted net income because the grant prices were greater than the average market price of the common shares and would be anti-dilutive to the computation.
−Removed: For six months ended June 30, 2024 , equity grants of 9,000 shares were outstanding but not included in the computation of diluted net income because the shares would be anti-dilutive to the computation.
+Added: Weighted average common shares outstanding – basic for third quarter 2024 excludes 811,000 shares of restricted stock held in our deferred compensation plan compared to 3.1 million shares in third quarter 2023 (although all awards are issued and outstanding upon grant).
+Added: Weighted average common shares outstanding – basic for first nine months 2024 excludes 1.3 million shares of restricted stock held in our deferred compensation plan compared to 4.7 million shares for first nine months 2023.
+Added: For the three months ended September 30, 2024 , equity grants of 8,000 shares compared to 9,000 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 computation.
+Added: For the nine months ended September 30, 2024 and in the same period of the prior year, 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 computation.
(7) Capitalized Costs and Accumulated Depreciation, Depletion and Amortization (a)
+Added: September 30,
(in thousands)
7 unchanged sentences
We had the following debt outstanding as of the dates shown below (in thousands):
+Added: September 30,
Senior notes:
7 unchanged sentences
Total long-term debt
−Removed: (a) As of June 30, 2024 , current maturities include $ 621.1 million principal amount of our 4.875 % senior notes due 2025 ( $ 620.1 million net of deferred
−Removed: financing costs).
−Removed: No interest was capitalized during the six months ended June 30, 2024 or the year ended December 31, 2023.
+Added: (a) As of September 30, 2024 , current maturities include $ 618.1 million principal amount of our 4.875 % senior notes due 2025 ( $ 617.4 million net of deferred financing costs).
+Added: No interest was capitalized during the nine months ended September 30, 2024 or the year ended December 31, 2023.
In April 2022, we entered into an amended and restated revolving bank facility, which we refer to as our bank debt or our bank credit facility, which is secured by substantially all of our assets and has a maturity date of April 14, 2027 .
1 unchanged sentence
The bank credit facility also provides for a borrowing base subject to re-determinations, including event-driven unscheduled re-determinations.
−Removed: As of June 30, 2024 , our bank group was composed of seventeen financial institutions.
+Added: As of September 30, 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.
3 unchanged sentences
We may elect, from time to time, to convert all or any part of our SOFR loans to base rate loans or to convert all or any part of the base rate loans to SOFR loans.
−Removed: We had no outstanding balance on our bank credit facility during first six months 2024 .
−Removed: The weighted average interest rate was 8.4 % for first six months 2023 .
+Added: We had no outstanding balance on our bank credit facility during first nine months 2024 .
+Added: The weighted average interest rate was 8.4 % for first nine months 2023 .
A commitment fee is paid on the undrawn balance based on an annual rate of 0.375 % to 0.50 %.
−Removed: At June 30, 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.
−Removed: As part of our re-determination completed in March 2024, our borrowing base was reaffirmed at $ 3.0 billion and our bank commitment was also reaffirmed at $ 1.5 billion.
−Removed: On June 30, 2024 , we had no outstanding borrowings on our bank credit facility.
+Added: At September 30, 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 re-determination completed in October 2024, our borrowing base was reaffirmed at $ 3.0 billion and our bank commitment was also reaffirmed at $ 1.5 billion .
+Added: On September 30, 2024 , we had no outstanding borrowings on our bank credit facility.
We had $ 169.4 million of undrawn letters of credit, leaving $ 1.3 billion of committed borrowing capacity available under the facility.
2 unchanged sentences
We currently intend to retire our outstanding long-term debt as it matures, is callable or when market conditions are favorable to repurchase through privately negotiated transactions, open market repurchases, redemptions or otherwise.
−Removed: During the six months ended June 30, 2024 , we repurchased in the open market $ 66.5 million principal amount of our 4.875 % senior notes due 2025 at a discount.
−Removed: We also repurchased in the open market an additional $ 800,000 principal amount of our 4.875 % senior notes that was traded in June but not settled until July 2024 and is included in accounts payable in the consolidated balance sheets.
+Added: During the nine months ended September 30, 2024 , we repurchased in the open market $ 70.2 million principal amount of our 4.875 % senior notes due 2025 at a discount.
We recognized a gain on early extinguishment of debt for these transactions of $ 254,000 , net of remaining deferred financing costs on the repurchased debt.
−Removed: During the six months ended June 30, 2023 , we repurchased in the open market $ 61.6 million principal amount of our 4.875 % senior notes due 2025 at a discount.
+Added: During the nine months ended September 30, 2023 , we repurchased in the open market $ 61.6 million principal amount of our 4.875 % senior notes due 2025 at a discount.
We recognized a gain on early extinguishment of debt of $ 439,000 , net of the remaining deferred financing costs on the repurchased debt.
8 unchanged sentences
We are required to maintain a maximum consolidated debt to EBITDAX ratio (as defined in the bank credit facility agreement) of 3.75 x and a minimum current ratio (as defined in the bank credit facility agreement) of 1.0 x.
−Removed: We were in compliance with applicable covenants under the bank credit facility at June 30, 2024 .
+Added: We were in compliance with applicable covenants under the bank credit facility at September 30, 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 six months ended June 30, 2024 and the year ended December 31, 2023 is as follows (in thousands):
−Removed: Six Months Ended
−Removed: June 30, 2024
+Added: A reconciliation of our liability for plugging and abandonment costs for the nine months ended September 30, 2024 and the year ended December 31, 2023 is as follows (in thousands):
+Added: Nine Months Ended
+Added: September 30, 2024
December 31, 2023
12 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 oil or Mont Belvieu for NGLs, approximated a net gain of $ 241.7 million at June 30, 2024 .
+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 oil or Mont Belvieu for NGLs, approximated a net unrealized gain of $ 207.4 million at September 30, 2024 .
These contracts expire monthly through December 2027.
−Removed: The following table sets forth our commodity-based derivative volumes by year as of June 30, 2024, excluding our basis swaps which are discussed separately below:
+Added: The following table sets forth our commodity-based derivative volumes by year as of September 30, 2024, excluding our basis swaps which are discussed separately below:
Contract Type
12 unchanged sentences
5,000 bbls/day
−Removed: July - September 2024
NGLs (C3-Propane)
7,000 bbls/day
−Removed: We also sold natural gas swaptions of 40,000 Mmbtu/day for calendar year 2026 at a weighted average price of $ 4.08 /Mmbtu that expire through October 2024 and 30,000 Mmbtu/day for calendar year 2027 at a weighted price of $ 4.10 /Mmbtu that expire in October 2024 .
−Removed: We also sold oil swaptions of 2,000 bbls/day for calendar year 2025 at a weighted average price of $ 80.00 /bbl that expire in September 2024 .
+Added: We also sold natural gas swaptions of 20,000 Mmbtu/day for calendar year 2026 at a weighted average price of $ 4.05 /Mmbtu that expire in October 2024 and 30,000 Mmbtu/day for calendar year 2027 at a weighted price of $ 4.10 /Mmbtu that expire in October 2024 .
Every derivative instrument is required to be recorded on the balance sheet as either an asset or a liability measured at its fair value.
1 unchanged sentence
Basis Swap Contracts
−Removed: In addition to the commodity derivatives described above, at June 30, 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: In addition to the commodity derivatives described above, at September 30, 2024 , we had natural gas basis swap contracts which lock in the differential between NYMEX Henry Hub and certain of our physical pricing indices.
These contracts settle through December 2028 and include a total volume of 257,470,000 Mmbtu.
−Removed: The fair value of these contracts was a gain of $ 13.9 million at June 30, 2024.
+Added: The fair value of these contracts was a loss of $ 16.9 million at September 30, 2024.
Derivative Assets and Liabilities
−Removed: The combined fair value of derivatives included in the accompanying consolidated balance sheets as of June 30, 2024 and December 31, 2023 is summarized below.
+Added: The combined fair value of derivatives included in the accompanying consolidated balance sheets as of September 30, 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):
+Added: September 30,
Derivative assets:
2 unchanged sentences
Net amounts of assets presented in the consolidated balance sheets
+Added: September 30,
Derivative (liabilities):
5 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Commodity swaps
29 unchanged sentences
The following tables present the fair value hierarchy for assets and liabilities measured at fair value, on a recurring basis (in thousands):
−Removed: Fair Value Measurements at June 30, 2024 using:
+Added: Fair Value Measurements at September 30, 2024 using:
Quoted Prices
Identical Assets
−Removed: June 30, 2024
+Added: September 30, 2024
Trading securities held in the deferred compensation plan
10 unchanged sentences
However, the subjectivity in the volatility factors utilized can cause a significant change in the fair value measurement and is considered a significant unobservable input.
−Removed: As of June 30, 2024, a portion of our natural gas and 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.
+Added: As of September 30, 2024, a portion of our natural gas instruments contain swaptions where the counterparty has the right, but not the obligation, to enter into a fixed price swap on a pre-determined date.
If exercised, the swaption contract becomes a swap treated consistently with our fixed-price swaps.
−Removed: At June 30, 2024 , we used a weighted average implied volatility of 16 % for natural gas swaptions and 22 % for oil swaptions.
+Added: At September 30, 2024 , we used a weighted average implied volatility of 17 % for natural gas swaptions.
The following is a reconciliation of the beginning and ending balances for derivative instruments classified as Level 3 in the fair value hierarchy (in thousands):
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
Balance at December 31, 2023
Total gains included in earnings
−Removed: Balance at June 30, 2024
+Added: Balance at September 30, 2024
Trading securities.
2 unchanged sentences
Interest, dividends, and mark-to-market gains or losses are included in deferred compensation plan expense in the accompanying consolidated statements of income.
−Removed: For second quarter 2024 , interest and dividends were $ 283,000 and the mark-to-market adjustment was a gain of $ 679,000 compared to interest and dividends of $ 435,000 and a mark-to-market gain of $ 2.6 million in second quarter 2023.
−Removed: For first six months 2024 , interest and dividends were $ 478,000 and the mark-to-market adjustment was a gain of $ 4.9 million compared to interest and dividends of $ 614,000 and a mark-to-market gain of $ 5.7 million in first six months 2023.
+Added: For third quarter 2024 , interest and dividends were $ 261,000 and the mark-to-market adjustment was a gain of $ 3.2 million compared to interest and dividends of $ 331,000 and a mark-to-market loss of $ 3.5 million in third quarter 2023.
+Added: For first nine months 2024 , interest and dividends were $ 739,000 and the mark-to-market adjustment was a gain of $ 8.1 million compared to interest and dividends of $ 945,000 and a mark-to-market gain of $ 2.2 million in first nine months 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 second quarter or first six months 2024 or 2023.
+Added: There were no proved property impairment charges in third quarter or first nine months 2024 or 2023.
Fair Values – Reported
−Removed: The following presents the carrying amounts and the fair values of our financial instruments as of June 30, 2024 and December 31, 2023 (in thousands):
−Removed: June 30, 2024
+Added: The following presents the carrying amounts and the fair values of our financial instruments as of September 30, 2024 and December 31, 2023 (in thousands):
+Added: September 30, 2024
December 31, 2023
17 unchanged sentences
Concentrations of Credit Risk
−Removed: As of June 30, 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.
+Added: As of September 30, 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 June 30, 2024 and $ 308,000 at December 31, 2023.
+Added: Our allowance for uncollectible receivables was $ 308,000 at September 30, 2024 and $ 308,000 at December 31, 2023.
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.
1 unchanged sentence
We may also limit the level of exposure with any single counterparty.
−Removed: At June 30, 2024 , our derivative counterparties include fifteen financial institutions, of which ten are secured lenders in our bank credit facility.
−Removed: At June 30, 2024 , our net derivative asset includes an aggregate net receivable of $ 2.5 million from three counterparties not included in our bank credit facility and a payable to the remaining two counterparties of $ 1.2 million.
+Added: Counterparty credit risk is considered when determining the fair value of our derivative contracts.
+Added: While our counterparties are primarily major investment grade financial institutions, the fair value of our derivative contracts has been adjusted to account for the risk of non-performance by certain of our counterparties, which was immaterial.
+Added: At September 30, 2024 , our derivative counterparties include fifteen financial institutions, of which ten are secured lenders in our bank credit facility.
+Added: At September 30, 2024 , our net derivative position includes an aggregate net payable of $ 5.8 million from the five counterparties not included in our bank credit facility.
Allowance for Expected Credit Losses.
10 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Direct operating expense
6 unchanged sentences
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.
−Removed: The restricted stock units and restricted stock generally vest over a three-year period and typically are contingent on the recipient’s continued employment.
+Added: The Equity Awards generally vest over a three-year period and typically 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.
2 unchanged sentences
Prior to vesting, recipients of restricted stock typically earn dividends payable in cash upon vesting but they have no voting rights prior to vesting.
−Removed: Restricted stock Equity Awards are not issued until such time as they are vested and grantees receive the awards in stock.
−Removed: We recorded compensation expense for these outstanding Equity Awards of $ 18.0 million in first six months 2024 compared to $ 15.3 million in the same period of 2023.
+Added: The Equity Awards are not issued until such time as they are vested and grantees receive the awards in stock.
+Added: We recorded compensation expense for these outstanding Equity Awards of $ 26.5 million in first nine months 2024 compared to $ 23.4 million in the same period of 2023.
Restricted Stock – Liability Awards
1 unchanged sentence
Upon grant of these restricted shares, which we refer to as restricted stock Liability Awards, these shares are placed in our deferred compensation plan (see further discussion below) and, upon vesting, withdrawals are allowed in cash or in stock.
−Removed: 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.
+Added: Compensation expense is recognized over 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.
In 2023, the number of shares granted into our deferred compensation plan was reduced in favor of restricted stock Equity Awards.
−Removed: All restricted stock Liability Awards are issued at prevailing market prices at the time of the grant and the vesting is typically based upon an employee’s continued employment with us.
−Removed: Prior to vesting, Liability Award recipients have the right to receive dividends thereon.
+Added: All Liability Awards are issued at prevailing market prices at the time of the grant and the vesting is typically based upon an employee’s continued employment with us.
+Added: Prior to vesting, Liability Award recipients typically earn dividends payable in cash upon vesting but they have no individual voting rights prior to vesting.
These Liability Awards are classified as a liability and are re-measured at fair value each reporting period.
This mark-to-market amount is reported in deferred compensation plan expense in the accompanying consolidated statements of income.
−Removed: We recorded compensation expense for these Liability Awards of $ 706,000 in first six months 2024 compared to $ 2.7 million in first six months 2023.
+Added: We recorded compensation expense for these Liability Awards of $ 955,000 in first nine months 2024 compared to $ 3.3 million in first nine months 2023.
Stock-Based Performance Awards - (PSUs)
1 unchanged sentence
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).
−Removed: In first six months 2024, only TSR Awards were granted.
+Added: In first nine months 2024, only TSR Awards were granted.
Each unit granted represents one share of our common stock.
5 unchanged sentences
The performance metrics are set by the Compensation Committee.
−Removed: 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: We recorded compensation expense associated with the prior year grants of $ 696,000 in first six months 2024 compared to expense of $ 1.4 million in first six months 2023.
+Added: If the performance metric for the applicable performance period is not met, that portion is considered forfeited and there is an adjustment to the expense recorded.
+Added: We recorded compensation expense associated with the prior year grants of $ 921,000 in first nine months 2024 compared to expense of $ 1.8 million in first nine months 2023.
These awards are earned, or not earned, based on the comparative performance of Range’s common stock measured against a predetermined group of companies in the peer group over a three-year performance period.
3 unchanged sentences
The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the life of the grant.
−Removed: We recorded compensation expense of $ 1.8 million in first six months 2024 compared to $ 886,000 in the same period of 2023 .
+Added: We recorded compensation expense of $ 2.9 million in first nine months 2024 compared to $ 1.3 million 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 assumptions were used to estimate the fair value of the TSR Awards granted during first six months 2024 and 2023:
−Removed: Six Months Ended
+Added: The following assumptions were used to estimate the fair value of the TSR Awards granted during first nine months 2024 and 2023:
+Added: Nine Months Ended
+Added: September 30,
Risk-free interest rate
2 unchanged sentences
Equity and Liability Award Summary
−Removed: The following is a summary of the activity for our restricted stock and performance awards for the six months ended June 30, 2024 and 2023:
+Added: The following is a summary of the activity for our restricted stock and performance awards for the nine months ended September 30, 2024 and 2023:
Restricted Stock
10 unchanged sentences
Outstanding at December 31, 2023
−Removed: Outstanding at June 30, 2024
+Added: Outstanding at September 30, 2024
Outstanding at December 31, 2022
−Removed: Outstanding at June 30, 2023
+Added: Outstanding at September 30, 2023
Amounts granted reflect performance units initially granted.
7 unchanged sentences
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.
−Removed: The deferred compensation liability reflects the vested market value of the marketable
−Removed: securities and Range stock held in the Rabbi Trust.
−Removed: 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 $ 1.2 million in second quarter 2024 compared to a mark-to-market loss of $ 11.2 million in second quarter 2023 .
−Removed: We recorded a mark-to-market loss of $ 7.6 million in first six months 2024 compared to a mark-to-market loss of $ 20.5 million in first six months 2023 .
−Removed: The Rabbi Trust held 811,000 shares ( 758,000 vested shares) of Range stock at June 30, 2024 compared to 1.6 million shares ( 1.5 million vested shares) at December 31, 2023 .
+Added: The deferred compensation liability reflects the vested market value of the marketable securities and Range stock held in the Rabbi Trust.
+Added: Changes in the market value of the marketable securities and changes in the fair value
+Added: of the deferred compensation plan liability are charged or credited to deferred compensation plan expense each quarter.
+Added: We recorded a mark-to-market gain of $ 1.9 million in third quarter 2024 compared to a mark-to-market loss of $ 9.0 million in third quarter 2023 .
+Added: We recorded a mark-to-market loss of $ 5.7 million in first nine months 2024 compared to a mark-to-market loss of $ 29.5 million in first nine months 2023 .
+Added: The Rabbi Trust held 813,000 shares ( 778,000 vested shares) of Range common stock at September 30, 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: Six Months Ended
−Removed: June 30, 2024
+Added: Nine Months Ended
+Added: September 30, 2024
December 31, 2023
8 unchanged sentences
In 2019, the board of directors approved a stock repurchase program which was increased in size in 2022.
−Removed: At June 30, 2024 , we had a remaining authorization to repurchase up to approximately $ 1.1 billion of our common stock.
+Added: At September 30, 2024 , we had a remaining authorization to repurchase up to approximately $ 1.0 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 second quarter 2024, we repurchased 304,871 shares at an aggregate cost of $ 10.2 million.
−Removed: In addition, we repurchased $ 9.9 million ( 295,129 shares) that were traded in June and settled in July.
−Removed: The following is a schedule of the change in treasury shares based on settlement date for the three and six months ended June 30, 2024:
+Added: In third quarter 2024, we repurchased 1.1 million shares at an aggregate cost of $ 33.9 million, which includes the repurchase of $ 9.9 million ( 295,129 shares) traded in June, but settled in July.
+Added: The following is a schedule of the change in treasury shares based on settlement date for the three and nine months ended September 30, 2024:
Three Months Ended
−Removed: June 30, 2024
−Removed: Six Months Ended June 30, 2024
+Added: September 30, 2024
+Added: Nine Months Ended September 30, 2024
Beginning balance
6 unchanged sentences
The estimated obligations are included in current and long-term divestiture contract obligation in our consolidated balance sheets.
−Removed: In first six months 2024 , we recorded accretion expense of $ 20.3 million compared to $ 21.0 million in the same period of the prior year.
−Removed: In first six months 2023, we also recorded a net adjustment of $ 39.8 million to increase the obligation for an increase in forecasted rates due to inflation.
−Removed: We have recorded no adjustments to date in 2024.
−Removed: The estimated discounted divestiture contract obligation was $ 368.8 million at June 30, 2024.
+Added: In first nine months 2024, we recorded accretion expense of $ 30.0 million compared to $ 31.6 million in the same period of the prior year.
+Added: In first nine months 2024, we also recorded a net adjustment of $ 2.1 million to decrease the obligation mainly due to a decrease in forecasted electricity costs.
+Added: In first nine months 2023, we also recorded a net adjustment of $ 39.8 million to increase the obligation for an increase in forecasted rates due to inflation.
+Added: The estimated discounted divestiture contract obligation was $ 356.1 million at September 30, 2024.
In second quarter 2020, we negotiated capacity releases on certain transportation pipelines in Pennsylvania effective May 31, 2020 and extending through the remainder of the contract.
−Removed: The estimated remaining discounted obligation for these transportation capacity releases as of June 30, 2024 was $ 1.2 million.
−Removed: The following summarizes our exit costs (including accretion of discount and any adjustments) for the three and six months ended June 30, 2024 and 2023 (in thousands):
+Added: The estimated remaining discounted obligation for these transportation capacity releases as of September 30, 2024 was $ 495,000 .
+Added: The following summarizes our exit costs (including accretion of discount and any adjustments) for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Transportation contract capacity releases
Divestiture contract obligation
−Removed: The following details the accrued exit cost liability activity for the six months ended June 30, 2024 (in thousands):
+Added: The following details the accrued exit cost liability activity for the nine months ended September 30, 2024 (in thousands):
Exit Costs (a)
1 unchanged sentence
Accretion of discount
−Removed: Balance at June 30, 2024
+Added: Changes in estimate
+Added: Balance at September 30, 2024
(a) Includes the divestiture contract obligation and the transportation contract capacity release obligation.
(15) SUPPLEMENTAL CASH FLOW INFORMATION
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
(in thousands)
Net cash provided from operating activities included:
−Removed: Income taxes paid to taxing authorities
+Added: Income taxes refunded from or (paid to) taxing authorities
Interest paid
10 unchanged sentences
We have incurred and will continue to incur capital, operating and remediation expenditures as a result of environmental laws and regulations.
−Removed: As of June 30, 2024, liabilities for remediation were not material.
−Removed: We are not aware of any environmental claims existing as of June 30, 2024 that have not been provided for or would otherwise have a material impact on our financial position or results of operations.
+Added: As of September 30, 2024, liabilities for remediation were not material.
+Added: We are not aware of any environmental claims existing as of September 30, 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.
1 unchanged sentence
In first quarter 2024, our transportation and gathering commitments over the next twelve years increased by approximately $ 580.0 million from December 31, 2023, primarily due to contract extensions and certain agreements that were contingent on facility construction as of the end of 2023 and are now in service.
−Removed: There were no significant changes to firm transportation, gathering and processing minimum commitments in the second quarter 2024.
−Removed: In addition to the above, during second quarter 2024 we entered into an amendment of an existing contract that will expand gathering, processing and transportation capacity by 300,000 Mmcf/day, contingent on the completion of construction and is expected to be in service in 2026.
−Removed: We have a related contingent minimum commitment associated with the de-ethanization capacity.
+Added: There were no significant changes to firm transportation, gathering and processing minimum commitments in the second or third quarter 2024.
+Added: In addition to the above, we entered into amendments of existing contracts that will expand gathering and processing capacity by 300,000 Mmcf/day and transportation capacity by 250,000 Mmbtu/day, contingent on the completion of construction of the relevant facilities and expected to be in service in 2026.
+Added: We have a related contingent minimum commitment for the de-ethanization capacity associated with this processing expansion.
Beginning on the in-service date this capacity will total 40,000 bbls/day, increasing by 5,000 bbls/day after one year of service, and continues through the end of the agreement.
+Added: We also entered into a new contract for propane export terminal capacity that is contingent on the completion of construction of the relevant facilities and is expected to be in service in 2026.
+Added: This capacity will be 10,000 bbls/day for the first year and increases to 20,000 bbls/day for the remainder of the term.
( 17) SUSPENDED EXPLORATORY WELL COSTS
3 unchanged sentences
There were no capitalized exploratory well costs in 2023.
−Removed: The following table reflects the changes in capitalized exploratory well costs for the six months ended June 30, 2024 (in thousands):
−Removed: Six Months Ended
−Removed: June 30, 2024
+Added: The following table reflects the changes in capitalized exploratory well costs for the nine months ended September 30, 2024 (in thousands):
+Added: Nine Months Ended
+Added: September 30, 2024
Balance at beginning of period
6 unchanged sentences
(18) Costs Incurred for Property Acquisition, Exploration and Development (a)
−Removed: Six Months Ended
−Removed: June 30, 2024
+Added: Nine Months Ended
+Added: September 30, 2024
December 31, 2023
35 unchanged sentences
We believe we are positioned for sustainable long-term success.
−Removed: We continue to monitor the impact of the actions of OPEC and other large hydrocarbon producing nations, the Russia-Ukraine conflict, hostilities in the Middle East, global inventories of oil and gas, future monetary and 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 energy markets.
−Removed: In first quarter 2024, natural gas prices declined primarily due to mild winter weather, but prices partially recovered in late second quarter 2024 based on signs of lower industry well completion activity and supply declines.
+Added: We continue to monitor the impact of the actions of OPEC and other large hydrocarbon producing nations, the Russia-Ukraine conflict, hostilities in the Middle East, global inventories of oil and gas, future monetary and fiscal policy and governmental policies aimed at transitioning towards lower carbon energy, and we expect prices for the commodities we produce to remain volatile given the complex dynamics of supply and demand that exist in the global energy markets.
+Added: In first quarter 2024, natural gas prices declined primarily due to mild winter weather, but prices partially recovered in third quarter 2024 based on signs of lower industry well completion activity and supply declines, along with growth in demand for natural gas fired electricity generation.
Longer term natural gas futures prices remain 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.
−Removed: 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: 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.
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.
1 unchanged sentence
Commodity prices have remained volatile.
−Removed: Benchmarks for natural gas decreased in second quarter 2024 and first six months 2024 compared to the same periods of 2023.
−Removed: Benchmarks for NGLs increased in second quarter 2024 compared to the same period of 2023 and remained flat for the first six months 2024 compared to 2023.
−Removed: As a result, we experienced increases in our price realizations for the quarter ended June 30, 2024.
+Added: Benchmarks for natural gas and NGLs decreased in third quarter 2024 and first nine months 2024 compared to the same periods of 2023.
+Added: As a result, we experienced decreases in our price realizations for the quarter and nine months ended September 30, 2024.
Despite overall year-to-date 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.
−Removed: The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the three and six months ended June 30, 2024 and 2023:
+Added: The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Average NYMEX prices (a)
7 unchanged sentences
Consolidated Results of Operations
−Removed: Overview of Second Quarter 2024 Results
−Removed: During second quarter 2024, we recognized net income of $28.7 million, or $0.12 per diluted common share compared to net income of $30.2 million, or $0.12 per diluted common share during second quarter 2023.
−Removed: The lower net income in second quarter 2024 compared to second quarter 2023 is primarily due to lower derivative fair value income (non-cash fair value adjustment related to our derivatives), slightly offset by higher realized prices.
−Removed: For second quarter 2024, we experienced an increase in revenue from the sale of natural gas, NGLs and oil due to a 14% increase in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) when compared to the same quarter of 2023, combined with a slight increase of production.
−Removed: Daily production averaged 2.2 Bcfe in second quarter 2024 and 2.1 Bcfe in the same period of 2023.
−Removed: Our second quarter 2024 financial and operating performance included the following results:
+Added: Overview of Third Quarter 2024 Results
+Added: During third quarter 2024, we recognized net income of $50.7 million, or $0.21 per diluted common share compared to net income of $49.4 million, or $0.20 per diluted common share during third quarter 2023.
+Added: The higher net income in third quarter 2024 compared to third quarter 2023 is primarily due to higher production slightly offset by lower realized prices.
+Added: In third quarter 2024, we experienced an increase in revenue from the sale of natural gas, NGLs and oil due to a 4% increase in production.
+Added: 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 remained flat.
+Added: Daily production averaged 2.2 Bcfe in third quarter 2024 and 2.1 Bcfe in the same period of 2023.
+Added: Our third quarter 2024 financial and operating performance included the following results:
• revenue from the sale of natural gas, NGLs and oil increased 1% from the same period of 2023 due to a 4% increase in production volumes, partially offset by a 3% decrease in average realized prices (before cash settlements on our derivatives);
• revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) increased 7% from the same period of 2023;
−Removed: • direct operating expense per mcfe was $0.12 in second quarter 2024 compared to $0.13 in the same period of 2023 primarily due to lower water hauling costs, lower workovers and lower equipment costs;
−Removed: • transportation, gathering, processing and compression per mcfe was $1.44 in second quarter 2024 compared to $1.42 in the same period of 2023, primarily due to an increase in fixed gathering and transportation costs;
−Removed: • general and administrative expense increased 2% from the same period of 2023 primarily due to aggregate impacts of cost inflation;
+Added: • direct operating expense per mcfe was $0.12 in third quarter 2024 compared to $0.12 in the same period of 2023;
+Added: • transportation, gathering, processing and compression per mcfe was $1.51 in third quarter 2024 compared to $1.42 in the same period of 2023, primarily due to an increase in NGLs volumes and prices;
+Added: • general and administrative expense per mcfe was $0.20 in third quarter 2024 compared to $0.20 in the same period of 2023;
• interest expense decreased 4% from the same period of 2023 due to lower debt balances.
−Removed: Second quarter 2024 also included the following highlights to enhance our balance sheet, return capital to investors and preserve liquidity:
+Added: Third quarter 2024 also included the following highlights to enhance our balance sheet, return capital to investors and preserve liquidity:
• paid $19.3 million of dividends, or $0.08 per share;
−Removed: • repurchased $20.1 million of our common stock, of which $10.2 million settled during the quarter;
+Added: • repurchased $24.0 million of our common stock and settled $9.9 million of our common stock that was traded in June 2024 ;
• repurchased in the open market $3.0 million face value of our 4.875% senior notes due 2025 at a discount;
• maintained substantial liquidity with the accumulation of cash on hand of $277.5 million along with $1.3 billion available under our credit facility.
−Removed: We generated $148.8 million of cash from operating activities in second quarter 2024, an increase of $22.2 million from second quarter 2023, which reflects the impact of higher realized prices.
−Removed: Overview of First Six Months 2024 Results
−Removed: During first six months 2024, we recognized net income of $120.8 million, or $0.49 per diluted common share compared to net income of $511.7 million, or $2.07 per diluted common share during the same period of 2023.
−Removed: The lower net income in first six months 2024 compared to the same period of 2023 is primarily due to lower derivative fair value income (non-cash fair value adjustment related to our derivatives) combined with lower realized prices.
−Removed: For first six months 2024, we experienced a decrease in revenue from the sale of natural gas, NGLs and oil due to a 7% decrease in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) when compared to the same period of 2023.
−Removed: Daily production averaged 2.1 Bcfe in both the six months ended June 30, 2024 and 2023.
−Removed: Our first six months 2024 financial and operating performance included the following results:
−Removed: • revenue from the sale of natural gas, NGLs and oil decreased 13% from the same period of 2023 with a 15% decrease in average realized prices (before cash settlements on our derivatives) slightly offset by higher production volumes;
−Removed: • revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) decreased 2% from the same period of 2023;
−Removed: • direct operating expense per mcfe was $0.11 in first six months 2024 compared to $0.13 in the same period of 2023 primarily due to lower workover costs along with lower water hauling costs;
−Removed: • transportation, gathering, processing and compression per mcfe was $1.47 in first six months 2024 compared to $1.45 in the same period of 2023 primarily due to an increase in fixed gathering and transportation costs;
−Removed: • general and administrative expense increased 2% from the same period of 2023 primarily due to aggregate impacts of cost inflation;
+Added: We generated $245.9 million of cash from operating activities in third quarter 2024, an increase of $95.7 million from third quarter 2023, which reflects the impact of higher working capital.
+Added: Overview of First Nine Months 2024 Results
+Added: During first nine months 2024, we recognized net income of $171.5 million, or $0.70 per diluted common share compared to net income of $561.1 million, or $2.27 per diluted common share during the same period of 2023.
+Added: The lower net income in first nine months 2024 compared to the same period of 2023 is primarily due to lower derivative fair value income (non-cash fair value adjustment related to our derivatives) combined with lower realized prices slightly offset by higher production.
+Added: For first nine months 2024, we experienced a decrease in revenue from the sale of natural gas, NGLs and oil due to a 5% decrease in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) when compared to the same period of 2023.
+Added: Daily production averaged 2.2 Bcfe in the nine months ended September 30, 2024 compared to 2.1 Bcfe in the same period of the prior year.
+Added: Our first nine months 2024 financial and operating performance included the following results:
+Added: • revenue from the sale of natural gas, NGLs and oil decreased 9% from the same period of 2023 with an 11% decrease in average realized prices (before cash settlements on our derivatives) slightly offset by higher production volumes;
+Added: • revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) increased 1% from the same period of 2023;
+Added: • direct operating expense per mcfe was $0.12 in first nine months 2024 compared to $0.13 in the same period of 2023 primarily due to lower workover costs along with lower water hauling costs;
+Added: • transportation, gathering, processing and compression per mcfe was $1.48 in first nine months 2024 compared to $1.44 in the same period of 2023 primarily due to an increase in NGLs volumes and prices;
+Added: • general and administrative expense per mcfe was $0.21 in first nine months 2024 compared to $0.21 in the same period of 2023;
• interest expense decreased 5% from the same period of 2023 due to lower debt balances.
−Removed: First six months 2024 also included the following highlights to enhance our balance sheet, return capital to investors and preserve liquidity:
+Added: First nine months 2024 also included the following highlights to enhance our balance sheet, return capital to investors and preserve liquidity:
• paid $58.1 million of dividends, or $0.24 per share;
−Removed: • repurchased $20.1 million of our common stock, of which $10.2 million settled during the first six months;
+Added: • repurchased $44.1 million of our common stock;
• repurchased in the open market $70.2 million face value of our 4.875% senior notes due 2025 at a discount;
• maintained substantial liquidity with the accumulation of cash on hand of $277.5 million along with $1.3 billion available under our credit facility.
−Removed: We generated $480.7 million of cash from operating activities in first six months 2024, a decrease of $120.8 million from first six months 2023, which reflects the impact of lower working capital and lower realized prices.
+Added: We generated $726.6 million of cash from operating activities in first nine months 2024, a decrease of $25.2 million from first nine months 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: The following table illustrates the primary components of natural gas, NGLs and oil sales for the three and six months ended June 30, 2024 and 2023 (in thousands):
+Added: The following table illustrates the primary components of natural gas, NGLs and oil sales for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Natural gas, NGLs and oil sales
Total natural gas, NGLs and oil sales
−Removed: Production is maintained through drilling success as new wells are placed on production, which is partially offset by the natural decline in production through existing wells.
−Removed: Our production for the three and six months ended June 30, 2024 and 2023 is set forth in the following table:
+Added: Production is maintained through drilling success as new wells are placed in production, which is partially offset by the natural decline in production through existing wells.
+Added: Our production for the three and nine months ended September 30, 2024 and 2023 is set forth in the following table:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Production (a)
6 unchanged sentences
Oil and NGLs volumes are converted to mcfe at the rate of one barrel equals six mcf based upon the approximate relative energy content of oil to natural gas, which is not indicative of the relationship between oil and natural gas prices.
−Removed: Our average realized price received (including all derivative settlements and third-party transportation costs) during second quarter 2024 was $1.66 per mcfe compared to $1.46 per mcfe in second quarter 2023.
−Removed: Our average realized price received (including all derivative settlements and third-party transportation costs) during first six months 2024 was $1.85 per mcfe compared to $1.99 per mcfe in first six months 2023.
+Added: Our average realized price received (including all derivative settlements and third-party transportation costs) during third quarter 2024 was $1.67 per mcfe compared to $1.67 per mcfe in third quarter 2023.
+Added: Our average realized price received (including all derivative settlements and third-party transportation costs) during first nine months 2024 was $1.79 per mcfe compared to $1.89 per mcfe in first nine months 2023.
We believe computed final realized prices should include the total impact of transportation, gathering, processing and compression expense.
Our average realized prices (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 income.
−Removed: Average realized prices (including derivative settlements) do include transportation costs where we receive net revenue proceeds from purchasers.
−Removed: Average realized price calculations for three and six months ended June 30, 2024 and 2023 are shown below:
+Added: Our 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: Our average realized prices (including derivative settlements) do include transportation costs where we receive net revenue proceeds from purchasers.
+Added: Our average realized price calculations for three and nine months ended September 30, 2024 and 2023 are shown below:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Average Prices
20 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Average natural gas differentials below NYMEX
2 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Price (per mcf)
2 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Price (per bbl)
1 unchanged sentence
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Price (per bbl)
1 unchanged sentence
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Price (per mcfe)
Production (Mmcfe)
−Removed: Total natural gas, NGLs and oil sales
−Removed: Transportation, gathering, processing and compression expense was $281.5 million in second quarter 2024 compared to $268.2 million in second quarter 2023.
−Removed: These third-party costs are higher in second quarter 2024 when compared to second quarter 2023 primarily due to higher fixed gathering and transportation costs, higher electricity costs and the impact of higher NGLs prices which result in higher processing costs.
−Removed: Transportation, gathering, processing and compression expense was $572.4 million in first six months 2024 compared to $553.7 million in the same period of the prior year.
−Removed: These third-party costs are higher in first six months 2024 when compared to the same period of 2023 due to higher fixed gathering and transportation costs and higher electricity costs, slightly offset by lower fuel costs.
+Added: Total natural gas,
+Added: NGLs and oil sales
+Added: Transportation, gathering, processing and compression expense was $306.2 million in third quarter 2024 compared to $277.2 million in third quarter 2023.
+Added: These third-party costs are higher in third quarter 2024 when compared to third quarter 2023 primarily due to an increase in NGLs volumes and prices.
+Added: Transportation, gathering, processing and compression expense was $878.5 million in first nine months 2024 compared to $830.9 million in the same period of the prior year.
+Added: These third-party costs are higher in first nine months 2024 when compared to the same period of 2023 due to an increase in NGLs volumes and prices.
We have included these costs in the calculation of average realized prices (including all derivative settlements and third-party transportation expenses paid by Range).
−Removed: The following table summarizes transportation, gathering, processing and compression expense for the three and six months ended June 30, 2024 and 2023 on a per mcf and per barrel basis (in thousands, except for costs per unit):
+Added: The following table summarizes transportation, gathering, processing and compression expense for the three and nine months ended September 30, 2024 and 2023 on a per mcf and per barrel basis (in thousands, except for costs per unit):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Transportation, gathering
3 unchanged sentences
Oil (per bbl)
−Removed: Derivative fair value income was income of $16.8 million in second quarter 2024 compared to income of $123.7 million in second quarter 2023.
−Removed: Derivative fair value income was $63.4 million in first six months 2024 compared to income of $491.7 million in the same period of the prior year.
+Added: Derivative fair value income was $47.1 million in third quarter 2024 compared to $38.4 million in third quarter 2023.
+Added: Derivative fair value income was $110.5 million in first nine months 2024 compared to $530.1 million in the same period of the prior year.
All of our derivatives are accounted for using the mark-to-market accounting method.
2 unchanged sentences
Gains on our derivatives generally indicate potentially lower wellhead revenues in the future while losses indicate potentially higher future wellhead revenues.
−Removed: The following table summarizes the impact of our commodity derivatives for the three and six months ended June 30, 2024 and 2023 (in thousands):
+Added: The following table summarizes the impact of our commodity derivatives for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Derivative fair value income per consolidated statements of income
17 unchanged sentences
This also includes the change in fair value of our divestiture contingent consideration.
−Removed: Brokered natural gas, marketing and other revenue in second quarter 2024 was $34.8 million compared to $44.9 million in second quarter 2023, which is the result of lower broker sales volumes (volumes not related to our production) slightly offset by higher broker sales prices.
+Added: Brokered natural gas, marketing and other revenue in third quarter 2024 was $34.6 million compared to $44.6 million in third quarter 2023, which is the result of lower broker sales volumes (volumes not related to our production) combined with lower broker sales prices.
We continue to optimize our transportation portfolio using these volumes.
−Removed: Other revenue in second quarter 2024 also includes $3.4 million of interest income compared to $1.8 million in the same period of the prior year.
−Removed: Other marketing revenue for second quarter 2023 includes the receipt of a $1.5 million make-whole payment.
−Removed: Brokered natural gas, marketing and other revenue was $66.6 million in first six months 2024 compared to $127.0 million in first six months 2023, which is the result of lower broker sales prices combined with lower broker sales volumes.
−Removed: Such revenue in first six months 2024 also includes the receipt of $6.3 million of interest income compared to $2.7 million in the same period of the prior year.
−Removed: The six months ended June 30, 2023 also includes $5.1 million in make-whole payments.
+Added: Other revenue in third quarter 2024 also includes $3.2 million of interest income compared to $1.3 million in the same period of the prior year.
+Added: Brokered natural gas, marketing and other revenue was $101.2 million in first nine months 2024 compared to $171.6 million in first nine months 2023, which is the result of lower broker sales volumes combined with lower broker sales prices.
+Added: Other revenue in first nine months 2024 also includes $9.5 million of interest income compared to $4.0 million in the same period of the prior year.
+Added: The nine months ended September 30, 2023 also includes $5.1 million in make-whole payments.
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: The following table presents information about certain of our expenses on a per mcfe basis for the three and six months ended June 30, 2024 and 2023:
+Added: The following table presents information about certain of our expenses on a per mcfe basis for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Direct operating expense
3 unchanged sentences
Depletion, depreciation and amortization expense
−Removed: Direct operating expense was $22.8 million in second quarter 2024 compared to $23.9 million in second quarter 2023.
+Added: Direct operating expense was $25.3 million in third quarter 2024 compared to $22.6 million in third quarter 2023.
Direct operating expenses include normally recurring expenses to operate and produce our wells, non-recurring workover costs and repair-related expenses.
−Removed: Our direct operating costs decreased in second quarter 2024 primarily due to lower water hauling costs, lower workover costs and lower equipment costs.
−Removed: We incurred $644,000 of workover costs in second quarter 2024 compared to $784,000 in second quarter 2023.
−Removed: Direct operating expense was $44.9 million in first six months 2024 compared to $50.9 million in the same period of the prior year.
−Removed: Our direct operating costs decreased in first six months 2024 when compared to the same period of the prior year due to lower workover costs, lower water hauling costs and lower contract labor and services.
−Removed: We incurred $1.5 million of workover costs in first six months 2024 compared to $3.7 million of workover costs in first six months 2023.
+Added: Our direct operating costs increased in third quarter 2024 primarily due to higher water hauling costs, pumping expenses and contract labor and service expenses.
+Added: We incurred $690,000 of workover costs in third quarter 2024 compared to $603,000 in third quarter 2023.
+Added: Direct operating expense was $70.2 million in first nine months 2024 compared to $73.4 million in the same period of the prior year.
+Added: Our direct operating costs decreased in first nine months 2024 when compared to the same period of the prior year due to lower workover costs and lower water hauling costs.
+Added: We incurred $2.2 million of workover costs in first nine months 2024 compared to $4.3 million of workover costs in first nine months 2023.
These costs are expected to enhance production from existing wells.
−Removed: The following table summarizes direct operating expense per mcfe for the three and six months ended June 30, 2024 and 2023:
+Added: The following table summarizes direct operating expense per mcfe for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Direct operating
4 unchanged sentences
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.
−Removed: This impact fee was $4.6 million in second quarter 2024 compared to $6.7 million in second quarter 2023.
−Removed: This impact fee was $10.4 million in first six months 2024 compared to $13.5 million in first six months 2023, which reflects lower natural gas prices.
+Added: This impact fee was $4.9 million in third quarter 2024 compared to $4.5 million in third quarter 2023.
+Added: This impact fee was $15.3 million in first nine months 2024 compared to $18.0 million in first nine months 2023, which reflects lower natural gas prices.
The impact fee is based on drilling activities and is adjusted based on prevailing natural gas prices.
This category also includes franchise, real estate and other applicable taxes.
−Removed: First six months 2024 includes a refund of $618,000 associated with state commercial activity taxes.
−Removed: The following table summarizes taxes other than income per mcfe for the three and six months ended June 30, 2024 and 2023:
+Added: The following table summarizes taxes other than income per mcfe for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Taxes other than income
Total taxes other than income
−Removed: General and administrative (G&A) expense was $40.1 million in second quarter 2024 compared to $39.5 million in second quarter 2023.
−Removed: The second quarter 2024 increase of $615,000 when compared to the same period of 2023 is primarily due to aggregate impacts of cost inflation.
−Removed: G&A expense for first six months 2024 was $84.1 million compared to $82.7 million in the same period of 2023.
+Added: General and administrative (G&A) expense was $41.5 million in third quarter 2024 compared to $38.1 million in third quarter 2023.
+Added: The third quarter 2024 increase of $3.4 million when compared to the same period of 2023 is primarily due to aggregate impacts of cost inflation.
+Added: G&A expense for first nine months 2024 was $125.6 million compared to $120.8 million in the same period of 2023.
The increase of $4.8 million is primarily due to aggregate impacts of cost inflation.
−Removed: The following table summarizes G&A expenses on a per mcfe basis for the three and six months ended June 30, 2024 and 2023:
+Added: The following table summarizes G&A expenses on a per mcfe basis for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
General and administrative
2 unchanged sentences
Total general and administrative
−Removed: Interest expense was $29.7 million in second quarter 2024 compared to $31.1 million in second quarter 2023.
−Removed: Interest expense was $60.2 million in first six months 2024 compared to $63.3 million in first six months 2023.
−Removed: The following table presents information about interest expense per mcfe for the three and six months ended June 30, 2024 and 2023:
+Added: Interest expense was $29.3 million in third quarter 2024 compared to $30.6 million in third quarter 2023.
+Added: Interest expense was $89.5 million in first nine months 2024 compared to $93.9 million in first nine months 2023.
+Added: The following table presents information about interest expense per mcfe for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Bank credit facility (a)
6 unchanged sentences
Excludes deferred financing costs.
−Removed: The decrease in interest expense for second quarter 2024 from the same period of 2023 was primarily due to lower average outstanding debt balances.
−Removed: We had no debt outstanding on the bank credit facility for second quarter 2024 or the same period 2023.
−Removed: The decrease in interest expense for first six months 2024 from the same period of 2023 was primarily due to lower average outstanding debt balances.
−Removed: We had no debt outstanding on the bank credit facility for first six months 2024 compared to a $16.0 million average debt balance for first six months 2023 and the weighted average interest rate on the credit facility was 8.4% in first six months 2023.
−Removed: Depletion, depreciation and amortization (DD&A) expense was $87.6 million in second quarter 2024 compared to $85.0 million in second quarter 2023.
+Added: The decrease in interest expense for third quarter 2024 from the same period of 2023 was primarily due to lower average outstanding debt balances.
+Added: We had no debt outstanding on the bank credit facility for third quarter 2024 or the same period of 2023.
+Added: The decrease in interest expense for first nine months 2024 from the same period of 2023 was primarily due to lower average outstanding debt balances.
+Added: We had no debt outstanding on the bank credit facility for first nine months 2024 compared to a $10.7 million average debt balance for first nine months 2023 and the weighted average interest rate on the credit facility was 8.4% in first nine months 2023.
+Added: Depletion, depreciation and amortization (DD&A) expense was $91.1 million in third quarter 2024 compared to $87.6 million in third quarter 2023.
This increase is due to slightly higher production volumes.
−Removed: Depletion expense, the largest component of DD&A expense, was $0.44 per mcfe in second quarter 2024 compared to $0.44 per mcfe in second quarter 2023.
−Removed: DD&A expense was $174.7 million in first six months 2024 compared to $171.6 million in the same period of 2023.
+Added: Depletion expense, the largest component of DD&A expense, was $0.44 per mcfe in third quarter 2024 compared to $0.44 per mcfe in third quarter 2023.
+Added: DD&A expense was $265.9 million in first nine months 2024 compared to $259.2 million in the same period of 2023.
This increase is due to a slight increase in production volumes.
−Removed: Depletion expense was $0.44 per mcfe in first six months 2024 compared to $0.44 in the same period of 2023.
+Added: Depletion expense was $0.44 per mcfe in first nine months 2024 compared to $0.44 in the same period of 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 six months ended June 30, 2024 and 2023:
+Added: The following table summarizes DD&A expense per mcfe for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Depletion and amortization
5 unchanged sentences
Stock-based compensation includes the amortization of restricted stock grants and performance units.
−Removed: The following table details the allocation of stock-based compensation to functional expense categories for the three and six months ended June 30, 2024 and 2023 (in thousands):
+Added: The following table details the allocation of stock-based compensation to functional expense categories for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Direct operating expense
3 unchanged sentences
Total stock-based compensation expense
−Removed: Brokered natural gas and marketing expense was $34.1 million in second quarter 2024 compared to $44.8 million in second quarter 2023 due to lower broker purchase volumes (volumes not related to our production) slightly offset by higher commodity prices.
−Removed: Brokered natural gas and marketing expense was $65.7 million in first six months 2024 compared to $111.9 million in first six months 2023 due to lower commodity prices and lower broker purchase volumes.
−Removed: The following table details our brokered natural gas, marketing and other net margin for the three and six months ended June 30, 2024 and 2023(in thousands):
+Added: Brokered natural gas and marketing expense was $32.6 million in third quarter 2024 compared to $46.2 million in third quarter 2023 due to lower broker purchase volumes (volumes not related to our production) and lower commodity prices.
+Added: Brokered natural gas and marketing expense was $98.3 million in first nine months 2024 compared to $158.1 million in first nine months 2023 due to lower commodity prices and lower broker purchase volumes.
+Added: The following table details our brokered natural gas, marketing and other net margin for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended
−Removed: Six Months Ended
−Removed: Brokered natural gas and marketing
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
+Added: Brokered natural gas, marketing and other
Brokered natural gas sales
6 unchanged sentences
Net brokered natural gas, marketing and other net margin
−Removed: Exploration expense was $6.7 million in second quarter 2024 compared to $7.4 million in second quarter 2023 due to lower seismic costs.
−Removed: Exploration expense was $11.2 million in first six months 2024 compared to $12.1 million in first six months 2023 due to lower seismic costs slightly offset by higher delay rentals.
−Removed: The following table details our exploration expense for the three and six months ended June 30, 2024 and 2023 (in thousands):
+Added: Exploration expense was $7.3 million in third quarter 2024 compared to $7.0 million in third quarter 2023 due to higher delay rental costs slightly offset by lower seismic costs.
+Added: Exploration expense was $18.5 million in first nine months 2024 compared to $19.0 million in first nine months 2023 due to lower seismic costs slightly offset by higher delay rentals.
+Added: The following table details our exploration expense for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended
−Removed: Six Months Ended
+Added: September 30,
+Added: Nine Months Ended
+Added: September 30,
Delay rentals and other
2 unchanged sentences
Total exploration expense
−Removed: Abandonment and impairment of unproved properties expense was $1.5 million in second quarter 2024 compared to $25.8 million in second quarter 2023.
−Removed: Abandonment and impairment of unproved properties was $3.9 million in first six months 2024 compared to $33.3 million in the same period of 2023.
−Removed: Abandonment and impairment of unproved properties for second quarter 2024 and first six months 2024 decreased when compared to the same periods of 2023 due to lower expected lease expirations in Pennsylvania.
+Added: Abandonment and impairment of unproved properties expense was $4.7 million in third quarter 2024 compared to $11.0 million in third quarter 2023.
+Added: Abandonment and impairment of unproved properties was $8.6 million in first nine months 2024 compared to $44.3 million in the same period of 2023.
+Added: Abandonment and impairment of unproved properties for third quarter 2024 and first nine months 2024 decreased when compared to the same periods 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.
However, we also believe acreage needed for our future development plans can be leased again.
−Removed: Exit costs were $10.1 million in second quarter 2024 compared to $48.7 million in second quarter 2023.
−Removed: In second quarter 2024, we recorded $10.1 million accretion expense primarily related to retained liabilities for certain gathering, transportation and processing obligations extending through 2030 compared to accretion expense of $10.9 million in the same quarter of the prior year.
−Removed: Second quarter 2023 also included an adjustment of $37.8 million to increase this obligation primarily due to an increase in forecasted rates due to inflation.
−Removed: Exit costs were $20.4 million in first six months 2024 compared to $61.0 million in first six months 2023.
−Removed: We recorded accretion expense of $20.4 million in first six months 2024 compared to accretion expense of $21.2 million in the same period of 2023.
−Removed: The first six months 2023 includes an adjustment of $39.8 million to increase this obligation primarily for an increase in forecasted rates due to inflation.
−Removed: There have been no adjustments made in 2024.
−Removed: Deferred compensation plan expense was a loss of $1.2 million in second quarter 2024 compared to a loss of $11.2 million in second quarter 2023.
+Added: Exit costs were $7.6 million in third quarter 2024 compared to $10.7 million in third quarter 2023.
+Added: In third quarter 2024, we recorded $9.7 million accretion expense primarily related to retained liabilities for certain gathering, transportation and processing obligations extending through 2030 compared to accretion expense of $10.7 million in the same quarter of the prior year.
+Added: Third quarter 2024 includes an adjustment of $2.1 million to decrease this obligation mainly due to a decrease in forecasted electricity costs.
+Added: Exit costs were $28.1 million in first nine months 2024 compared to $71.7 million in first nine months 2023.
+Added: We recorded accretion expense of $30.2 million in first nine months 2024 compared to accretion expense of $31.9 million in the same period of 2023.
+Added: First nine months 2024 includes an adjustment of $2.1 million to decrease this obligation mainly due to a decrease in forecasted electricity costs compared to adjustments of $39.8 million in first nine months 2023 to increase this obligation primarily for an increase in forecasted rates due to inflation.
+Added: Deferred compensation plan was a gain of $1.9 million in third quarter 2024 compared to a loss of $9.0 million in third 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.
−Removed: The deferred compensation liability is adjusted to fair value by a charge or a credit to deferred compensation plan expense.
−Removed: Our stock price decreased from $34.43 at March 31, 2024 to $33.53 at June 30, 2024.
−Removed: In the same period of the prior year our stock price increased from $26.47 at March 31, 2023 to $29.40 at June 30, 2023.
−Removed: During first six months 2024, deferred compensation plan expense was a loss of $7.6 million compared to a loss of $20.5 million in the same period of 2023.
−Removed: Our stock price increased from $30.44 at December 31, 2023 to $33.53 at June 30, 2024.
−Removed: In the same period of the prior year, our stock price increased from $25.02 at December 31, 2022 to $29.40 at June 30, 2023.
−Removed: Income tax (benefit) expense was a benefit of $18.7 million in second quarter 2024 compared to an expense of $14.7 million in second quarter 2023.
−Removed: Income tax benefit was $490,000 in first six months 2024 compared to an expense of $136.6 million in the same period of 2023.
+Added: The deferred compensation liability is adjusted to fair value by a charge or a credit to deferred compensation plan expense based on the number of vested shares in the plan at the time.
+Added: Our stock price decreased from $33.53 at June 30, 2024 to $30.76 at September 30, 2024.
+Added: In the same period of the prior year our stock price increased from $29.40 at June 30, 2023 to $32.41 at September 30, 2023.
+Added: During first nine months 2024, deferred compensation plan expense was a loss of $5.7 million compared to a loss of $29.5 million in the same period of 2023.
+Added: Our stock price increased from $30.44 at December 31, 2023 to $30.76 at September 30, 2024.
+Added: In the same period of the prior year, our stock price increased from $25.02 at December 31, 2022 to $32.41 at September 30, 2023.
+Added: Income tax expense was $15.6 million in third quarter 2024 compared to $15.7 million in third quarter 2023.
+Added: Income tax expense was $15.1 million in first nine months 2024 compared to an $152.3 million in the same period of 2023.
The 2024 and 2023 effective tax rates were different than the statutory tax rates due to state income taxes, tax credits, equity compensation and the limitation of our executive compensation expense.
5 unchanged sentences
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: The following table presents sources and uses of cash and cash equivalents for the six months ended June 30, 2024 and 2023 (in thousands):
−Removed: Six Months Ended
+Added: The following table presents sources and uses of cash and cash equivalents for the nine months ended September 30, 2024 and 2023 (in thousands):
+Added: Nine Months Ended
+Added: September 30,
Sources of cash and cash equivalents
13 unchanged sentences
Sources of Cash and Cash Equivalents
−Removed: Cash flows provided from operating activities in first six months 2024 was $480.7 million compared to $601.5 million in first six months 2023.
+Added: Cash flows provided from operating activities in first nine months 2024 were $726.6 million compared to $751.8 million in first nine 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 six months 2023 to first six months 2024 reflects lower working capital and lower realized prices.
−Removed: As of June 30, 2024, we have hedged more than 50% of our projected natural gas production for the remainder of 2024.
−Removed: Changes in working capital (as reflected in our consolidated statements of cash flows) for first six months 2024 was a negative $53.0 million compared to a positive $27.4 million for first six months 2023.
+Added: The decrease in cash provided from operating activities from first nine months 2023 to first nine months 2024 reflects lower realized prices.
+Added: As of September 30, 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 nine months 2024 was a negative $49.8 million compared to a negative $54.9 million for first nine months 2023.
Uses of Cash and Cash Equivalents
−Removed: Additions to natural gas properties for first six months 2024 were consistent with expectations relative to our announced 2024 capital budget.
−Removed: Repayment of senior notes for first six months 2024 includes the repurchase and settlement of $66.5 million principal amount of our 4.875% senior notes due 2025 at a discount.
−Removed: Treasury stock purchases for first six months 2024 include the repurchase and settlement of 305,000 shares for a total of $10.2 million as part of our previously announced stock repurchase program.
+Added: Additions to natural gas properties for first nine months 2024 were consistent with expectations relative to our announced 2024 capital budget.
+Added: Repayment of senior notes for first nine months 2024 includes the repurchase and settlement of $70.2 million principal amount of our 4.875% senior notes due 2025 at a discount.
+Added: Treasury stock purchases for first nine months 2024 include the repurchase and settlement of 1.4 million shares for a total of $44.1 million as part of our previously announced stock repurchase program.
Liquidity and Capital Resources
−Removed: Our main sources of liquidity are cash, internally generated cash flow from operations, capital market transactions and our bank credit facility.
−Removed: At June 30, 2024, we had approximately $1.6 billion of liquidity consisting of $251.1 million of cash on hand and $1.3 billion of availability under our bank credit facility.
+Added: Our main sources of liquidity are cash on hand, internally generated cash flow from operations, capital market transactions and our bank credit facility.
+Added: At September 30, 2024, we had approximately $1.6 billion of liquidity consisting of $277.5 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.
1 unchanged sentence
We expect our 2024 capital program to be funded by cash flows from operations.
−Removed: During the six months ended June 30, 2024, we generated $480.7 million of cash flows from operating activities.
+Added: During the nine months ended September 30, 2024, we generated $726.6 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 June 30, 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.
−Removed: We have undrawn letters of credit of $169.2 million as of June 30, 2024, which reduce our borrowing capacity under our bank credit facility.
+Added: As of September 30, 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 $169.4 million as of September 30, 2024, which reduce our borrowing capacity under our bank credit facility.
The borrowing base is subject to regular, semi-annual re-determinations and is dependent on a number of factors but primarily the lenders' assessment of our future cash flows.
−Removed: Our scheduled borrowing base re-determination was completed in March 2024 with our borrowing base and lender commitments reaffirmed.
+Added: Our scheduled borrowing base re-determination was completed in October 2024 with our borrowing base and lender commitments reaffirmed.
We currently must comply with certain financial and non-financial covenants, including limiting dividend payments, debt incurrence and requirements that we maintain certain financial ratios (as defined in our bank credit facility agreement).
−Removed: We were in compliance with all such covenants at June 30, 2024.
+Added: We were in compliance with all such covenants at September 30, 2024.
Capital Requirements
1 unchanged sentence
Expenditures for the development, exploration and acquisition of natural gas properties are the primary use of our capital resources.
−Removed: During first six months 2024, we used operating cash flows to fund $322.2 million of capital expenditures as reported in our consolidated statement of cash flows within investing activities.
+Added: During first nine months 2024, we used operating cash flows to fund $478.4 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 principal amount of $618.1 million due 2025 and is therefore classified as current on the balance sheet.
−Removed: As part of our strategy for 2024, we plan to maintain or improve our financial strength.
Cash Dividend Payments
−Removed: On May 31, 2024, our board of directors approved a dividend of $0.08 per share payable on June 28, 2024 to stockholders of record at the close of business on June 14, 2024.
+Added: On August 30, 2024, our board of directors approved a dividend of $0.08 per share payable on September 27, 2024 to stockholders of record at the close of business on September 13, 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.
Stock Repurchase Program
−Removed: Our total remaining share repurchase authorization was approximately $1.1 billion at June 30, 2024.
+Added: Our total remaining share repurchase authorization was approximately $1.0 billion at September 30, 2024.
Other Sources of Liquidity
4 unchanged sentences
Interest Rates
−Removed: At June 30, 2024, we had approximately $1.7 billion of debt outstanding which bore interest at fixed rates averaging 6.0%.
−Removed: We had no variable rate debt outstanding at June 30, 2024.
+Added: At September 30, 2024, we had approximately $1.7 billion of debt outstanding which bore interest at fixed rates averaging 6.0%.
+Added: We had no variable rate debt outstanding at September 30, 2024.
Off-Balance Sheet Arrangements
34 unchanged sentences
At times, we are also exposed to market risks related to changes in interest rates.
−Removed: These risks did not change materially from December 31, 2023 to June 30, 2024.
+Added: These risks did not change materially from December 31, 2023 to September 30, 2024.
Commodity Price Risk
4 unchanged sentences
Our program may also include a three-way collar which is a combination of three options.
−Removed: We have also entered into natural gas and oil derivative instruments containing a fixed price swap and a sold option (which we refer to as a swaption).
−Removed: At June 30, 2024, 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 oil or Mont Belvieu for NGLs, approximated a net unrealized pretax gain of $241.7 million as of June 30, 2024.
+Added: 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).
+Added: At September 30, 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 oil or Mont Belvieu for NGLs, approximated a net unrealized gain of $207.4 million as of September 30, 2024.
These contracts expire monthly through December 2027.
−Removed: At June 30, 2024, the following commodity derivative contracts were outstanding, excluding our basis swaps which are separately discussed below:
+Added: At September 30, 2024, the following commodity derivative contracts were outstanding, excluding our basis swaps which are separately discussed below:
Contract Type
14 unchanged sentences
5,000 bbls/day
−Removed: July - September 2024
NGLs (C3-Propane)
7,000 bbls/day
−Removed: We also sold natural gas swaptions of 40,000 Mmbtu/day for calendar year 2026 at a weighted average price of $4.08/Mmbtu that expire through October 2024 and 30,000 MMbtu/day for 2027 at a weighted average price of $4.10 Mmbtu/day that expire in October 2024.
−Removed: The fair value of these swaptions at June 30, 2024 was a net derivative liability of $1.1 million.
−Removed: We also sold oil swaptions of 2,000 bbls/day for calendar year 2025 at a weighted average price of $80.00/bbl that expire in September 2024.
−Removed: The fair value of these swaptions at June 30, 2024 was a net derivative liability of $967,000.
+Added: We also sold natural gas swaptions of 20,000 Mmbtu/day for calendar year 2026 at a weighted average price of $4.05/Mmbtu that expire in October 2024 and 30,000 MMbtu/day for 2027 at a weighted average price of $4.10 Mmbtu/day that expire in October 2024.
+Added: The fair value of these swaptions at September 30, 2024 was a net derivative liability of $9,000.
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 $13.9 million at June 30, 2024, and they settle through December 2028.
+Added: The fair value of the natural gas basis swaps was a loss of $16.9 million at September 30, 2024, and they settle through December 2028.
Commodity Sensitivity Analysis
−Removed: The following table shows the fair value of our derivatives and the hypothetical changes in fair value that would result from a 10% and a 25% change in commodity prices at June 30, 2024.
+Added: The following table shows the fair value of our derivatives and the hypothetical changes in fair value that would result from a 10% and a 25% change in commodity prices at September 30, 2024.
We remain at risk for possible changes in the market value of commodity derivative instruments;
7 unchanged sentences
Our derivative contracts are with multiple counterparties to minimize our exposure to any individual counterparty.
−Removed: At June 30, 2024, our derivative counterparties include fifteen financial institutions, of which ten are secured lenders in our bank credit facility.
+Added: At September 30, 2024, our derivative counterparties include fifteen financial institutions, of which ten are secured lenders in our bank credit facility.
Counterparty credit risk is considered when determining the fair value of our derivative contracts.
1 unchanged sentence
Interest Rate Risk
−Removed: At June 30, 2024, we had total debt of approximately $1.7 billion.
+Added: At September 30, 2024, we had total debt of approximately $1.7 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 bank credit facility provides for variable interest rate borrowings;
−Removed: however, we did not have any borrowings outstanding as of June 30, 2024.
+Added: however, we did not have any borrowings outstanding as of September 30, 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 June 30, 2024 at the reasonable assurance level.
+Added: Based upon the evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective as of September 30, 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 June 30, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
+Added: There was no change in our system of internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the three months ended September 30, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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.