3 unchanged sentences
(In thousands, except per share data)
−Removed: September 30,
Current assets:
Cash and cash equivalents
−Removed: Accounts receivable, less allowance for doubtful accounts of $ 308 in 2024 and 2023
−Removed: Contingent consideration receivable
+Added: Accounts receivable, less allowance for doubtful accounts of $ 250 and $ 255
Derivative assets
3 unchanged sentences
Derivative assets
−Removed: Natural gas properties, successful efforts method
−Removed: Accumulated depletion and depreciation
−Removed: Other property and equipment
−Removed: Accumulated depreciation and amortization
+Added: Natural gas and oil properties, net (successful efforts method)
+Added: Other property and equipment, net
Operating lease right-of-use assets
21 unchanged sentences
Common stock, $ 0.01 par, 475,000,000 shares authorized, 268,487,931 issued at
−Removed: September 30, 2024 and 265,756,369 shares at December 31, 2023
−Removed: Common stock held in treasury, at cost, 26,116,065 shares at September 30, 2024 and
+Added: March 31, 2025 and 267,435,419 shares at December 31, 2024
+Added: Common stock held in treasury, at cost, 28,591,527 shares at March 31, 2025 and
26,766,065 shares at December 31, 2024
8 unchanged sentences
(Unaudited, in thousands, except per share data)
−Removed: Three Months Ended September 30,
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Revenues and other income:
Natural gas, NGLs and oil sales
−Removed: Derivative fair value income
−Removed: Brokered natural gas, marketing and other
+Added: Derivative fair value (loss) income
+Added: Brokered natural gas and marketing
Total revenues and other income
9 unchanged sentences
Depletion, depreciation and amortization
−Removed: Gain on the sale of assets
Total costs and expenses
8 unchanged sentences
(Unaudited, in thousands)
−Removed: Three Months Ended September 30,
−Removed: Nine Months Ended September 30,
−Removed: Other comprehensive income:
+Added: Three Months Ended March 31,
+Added: Other comprehensive (loss) income:
Postretirement benefits:
Amortization of prior service costs/actuarial gain
−Removed: Income tax expense (benefit)
+Added: Income tax expense
Total comprehensive income
3 unchanged sentences
(Unaudited, in thousands)
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Operating activities:
−Removed: Adjustments to reconcile net income to net cash provided from operating activities:
+Added: Adjustments to reconcile net income to net cash provided from
+Added: operating activities:
Deferred income tax expense
1 unchanged sentence
Abandonment and impairment of unproved properties
−Removed: Derivative fair value income
+Added: Derivative fair value loss (income)
Cash settlements on derivative financial instruments
20 unchanged sentences
Financing activities:
−Removed: Borrowings on credit facility
−Removed: Repayments on credit facility
Repayment of senior notes
11 unchanged sentences
RANGE RESOURCES CORPORATION
−Removed: CONSOLIDATED STATEMENTS O F STOCKHOLDERS’ EQUITY
+Added: CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited, in thousands, except per share data)
−Removed: Fiscal Year 2024
comprehensive
5 unchanged sentences
Dividends ($ 0.09 per share)
−Removed: Other comprehensive loss
−Removed: Balance as of March 31, 2024
−Removed: Issuance of common stock
−Removed: Stock-based compensation expense
−Removed: Dividends ($ 0.08 per share)
Treasury stock repurchased
−Removed: Other comprehensive loss
−Removed: Balance as of June 30, 2024
−Removed: Issuance of common stock
−Removed: Stock-based compensation expense
−Removed: Dividends ($ 0.08 per share)
−Removed: Treasury stock repurchased
+Added: Excise tax on stock repurchases
Other comprehensive loss
−Removed: Balance as of September 30, 2024
−Removed: The accompanying notes are an integral part of these consolidated financial statements.
−Removed: RANGE RESOURCES CORPORATION
−Removed: CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
−Removed: (Unaudited, in thousands, except per share data)
−Removed: Fiscal Year 2023
+Added: Balance as of March 31, 2025
comprehensive
5 unchanged sentences
Dividends ($ 0.08 per share)
−Removed: Treasury stock issuance
−Removed: Treasury stock repurchased
−Removed: Excise tax on stock repurchases
−Removed: Other comprehensive income
+Added: Other comprehensive loss
Balance as of March 31, 2024
−Removed: Issuance of common stock
−Removed: Stock-based compensation expense
−Removed: Dividends ($ 0.08 per share)
−Removed: Treasury stock repurchased
−Removed: Excise tax on stock repurchases
−Removed: Other comprehensive income
−Removed: Balance as of June 30, 2023
−Removed: Issuance of common stock
−Removed: Stock-based compensation expense
−Removed: Dividends ($ 0.08 per share)
−Removed: Other comprehensive income
−Removed: Balance as of September 30, 2023
The accompanying notes are an integral part of these consolidated financial statements.
RANGE RESOURCES CORPORATION
−Removed: NOTES TO CONSOLIDATED FINANC IAL STATEMENTS (UNAUDITED)
−Removed: (1) SUMMARY OF ORGANIZATION AND NATURE OF BUSINESS
−Removed: 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.
−Removed: Our objective is to build stockholder value through returns-focused development of our properties.
−Removed: Range is a Delaware corporation with our common stock listed and traded on the New York Stock Exchange under the symbol "RRC."
−Removed: (2) BASIS OF PRESENTATION
−Removed: These consolidated financial statements are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair statement of the results for the periods reported.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
+Added: (1) BASIS OF FINANCIAL STATEMENT PRESENTATION
+Added: Range Resources Corporation ("Range" or "the Company") is an 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: During interim periods, the Company follows the same accounting policies disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 25, 2025 (the "Form 10-K"), except for any new accounting pronouncements adopted during the interim period.
+Added: These consolidated financial statements are unaudited and should be read in conjunction with the Notes to the Consolidated Financial Statements and information presented in the Form 10-K.
+Added: In management's opinion, the accompanying consolidated financial statements reflect all adjustments necessary for a fair statement of the results for the periods reported.
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 ("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.
−Removed: GAAP) for complete financial statements.
−Removed: These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2023 Annual Report on Form 10-K filed with the SEC on February 21, 2024.
−Removed: The results of operations for third quarter and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the full year.
+Added: The results of operations for any interim period 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.
These reclassifications have no impact on previously reported stockholders' equity, net income or cash flows.
−Removed: (3) NEW ACCOUNTING STANDARDS
−Removed: Not Yet Adopted
−Removed: 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.
(2) REVENUES FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue
−Removed: We have three material revenue streams in our business:
−Removed: natural gas sales, NGLs sales and oil sales.
−Removed: Brokered revenue attributable to each product sales type is included here because the volume of product that we purchase is subsequently sold to separate counterparties in accordance with existing sales contracts under which we also sell our production.
−Removed: Other marketing revenue for the nine months ended September 30, 2023 includes the receipt of $ 5.1 million in make-whole payments.
−Removed: Accounts receivable attributable to our revenue contracts with customers was $ 177.1 million at September 30, 2024 and $ 263.9 million at December 31, 2023 .
+Added: All of the Company's revenues from contracts with customers have title transfer in the United States ("U.S.") and are recognized at the point in time when control is transferred to the customer and collectibility is reasonably assured.
+Added: Accounts receivable attributable to our revenue contracts with customers wa s $ 326.5 million at March 31, 2025 and $ 291.5 million at December 31, 2024 .
Revenue attributable to each of our identified revenue streams is disaggregated below (in thousands):
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended March 31,
Natural gas sales
2 unchanged sentences
Sales of purchased NGLs
−Removed: Interest income
Other marketing revenue
1 unchanged sentence
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: 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: For the three months ended March 31, 2025, our overall effective tax rate was different than the federal statutory rate due primarily to tax credits, state income taxes and equity compensation.
Current income taxes reflect estimated state and federal income taxes due for 2025 which are based on our estimated earnings, taking into account all applicable tax rates and laws.
−Removed: (6) INCOME PER COMMON SHARE
−Removed: Basic income or loss per share attributable to common shareholders is computed as (1) income or loss attributable to common shareholders (2) less income allocable to participating securities (3) divided by weighted average basic shares outstanding.
−Removed: Diluted income or loss per share attributable to common shareholders is computed as (1) basic income or loss attributable to common shareholders (2) plus diluted adjustments to income allocable to participating securities (3) divided by weighted average diluted shares outstanding.
−Removed: The following sets forth a reconciliation of income or loss to basic income or loss attributable to common shareholders to diluted income or loss attributable to common shareholders (in thousands, except per share amounts):
+Added: (4) N ET INCOME PER COMMON SHARE
+Added: The following sets forth a reconciliation of net income to basic net income attributable to common shareholders to diluted net income attributable to common shareholders (in thousands, except per share amounts):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Net income, as reported
4 unchanged sentences
Net income per common share:
−Removed: Restricted Stock Liability Awards represent participating securities because they participate in non-forfeitable dividends or distributions with common equity owners.
+Added: (a) Restricted Stock Liability Awards (discussed in Note 9 ) represent participating securities because they participate in non-forfeitable dividends or distributions with common equity owners.
Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities.
2 unchanged sentences
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: 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 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).
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: (7) Capitalized Costs and Accumulated Depreciation, Depletion and Amortization (a)
−Removed: September 30,
−Removed: (in thousands)
−Removed: Natural gas properties:
−Removed: Properties subject to depletion
−Removed: Unproved properties
−Removed: Accumulated depletion and depreciation
−Removed: Net capitalized costs
−Removed: (a) Includes capitalized asset retirement costs and the associated accumulated amortization.
+Added: Weighted average common shares outstanding – basic for first quarter 2025 exclu des 741,000 s hares of restricted stock held in our deferred compensation plan compared to 1.6 million shares in first quarter 2024 (although all awards are issued and outstanding upon grant).
+Added: For the three months ended March 31, 2025, equity grants of 245,000 sh ares compared to 127,000 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.
(5) INDEBTEDNESS
We had the following debt outstanding as of the dates shown below (in thousands):
−Removed: September 30,
Senior notes:
7 unchanged sentences
Total long-term debt
−Removed: (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).
−Removed: No interest was capitalized during the nine months ended September 30, 2024 or the year ended December 31, 2023.
+Added: (a) As of March 31, 2025 , current maturities include $ 606.5 million principal amount of our 4.875 % senior notes due 2025 ( $ 606.4 million net of deferred financing costs).
+Added: We expect to repay the current maturities with a combination of cash on hand and borrowings under the credit facility.
+Added: No interest was capitalized during the three months ended March 31, 2025 or the year ended December 31, 2024.
+Added: We were in compliance with applicable covenants under the bank credit facility and its senior notes at March 31, 2025.
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 September 30, 2024 , our bank group was composed of seventeen financial institutions.
+Added: As of March 31, 2025 , 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 nine months 2024 .
−Removed: 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 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.
−Removed: 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 .
−Removed: On September 30, 2024 , we had no outstanding borrowings on our bank credit facility.
+Added: At March 31, 2025 , 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 March 2025, our borrowing base was reaffirmed at $ 3.0 billion and our bank commitment was also reaffirmed at $ 1.5 billion .
+Added: On March 31, 2025 , we had no outstanding borrowings on our bank credit facility.
We had $ 164.1 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 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.
−Removed: 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 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.
+Added: During the three months ended March 31, 2025 , we repurchased in the open market $ 2.2 million principal a mount of our 4.875 % senior notes due 2025 at a discount.
+Added: We recognized a $ 3,000 gain on early extinguishment of debt for these transactions, net of remaining deferred financing costs on the repurchased debt.
+Added: During the three months ended March 31, 2024 , we repurchased in the open market $ 15.1 million principal amount of our 4.875 % senior notes due 2025 at a discount.
We recognized a gain on early extinguishment of debt of $ 64,000 , net of the remaining deferred financing costs on the repurchased debt.
5 unchanged sentences
• if Range designates any restricted subsidiary that is a guarantor to be an unrestricted subsidiary in accordance with the terms of the indenture.
−Removed: Debt Covenants
−Removed: Our bank credit facility contains negative covenants that limit our ability, among other things, to pay cash dividends, incur additional indebtedness, sell assets, enter into certain hedging contracts, change the nature of our business or operations, merge, consolidate or make certain investments.
−Removed: We are required to maintain a maximum consolidated debt to EBITDAX ratio (as defined in the bank credit facility agreement) of 3.75 x and a minimum current ratio (as defined in the bank credit facility agreement) of 1.0 x.
−Removed: We were in compliance with applicable covenants under the bank credit facility at September 30, 2024 .
(6) ASSET RETIREMENT OBLIGATIONS
−Removed: Our asset retirement obligations primarily represent the estimated present value of the amounts we will incur to plug, abandon and remediate our producing properties at the end of their productive lives.
−Removed: Significant inputs used in determining such obligations include estimates of plugging and abandonment costs, estimated future inflation rates and well lives.
−Removed: The inputs are calculated based on historical data as well as current estimated costs.
−Removed: A reconciliation of our liability for plugging and abandonment costs for the nine months ended September 30, 2024 and the year ended December 31, 2023 is as follows (in thousands):
−Removed: Nine Months Ended
−Removed: September 30, 2024
+Added: Activity related to our liability for plugging and abandonment costs for the three months ended March 31, 2025 and the year ended December 31, 2024 is as follows (in thousands):
+Added: Three Months Ended
+Added: March 31, 2025
December 31, 2024
7 unchanged sentences
Long-term asset retirement obligations
−Removed: Accretion expense is recognized as a component of depreciation, depletion and amortization expense in the accompanying consolidated statements of income.
(7) DERIVATIVE ACTIVITIES
−Removed: We use commodity-based derivative contracts to manage exposure to commodity price fluctuations.
−Removed: We do not enter into these arrangements for speculative or trading purposes.
−Removed: We utilize commodity swaps, collars, three-way collars or swaptions to (1) reduce the effect of price volatility of the commodities we produce and sell and (2) support our annual capital budget, 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 unrealized gain of $ 207.4 million at September 30, 2024 .
−Removed: These contracts expire monthly through December 2027.
−Removed: 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:
+Added: The following table sets forth our commodity-based derivative volumes by year as of March 31, 2025, excluding our basis swaps which are discussed separately below.
+Added: All fair values presented in the table below utilize Level 2 inputs, except where noted.
+Added: All fair market values ("FMV") presented in thousands:
Contract Type
2 unchanged sentences
Natural Gas (a)
−Removed: 300,000 Mmbtu/day
+Added: April - December 2025
400,000 Mmbtu/day
+Added: April - December 2025
Three-way Collars
4 unchanged sentences
50,000 Mmbtu/day
−Removed: 30,000 Mmbtu/day
4,000 bbls/day
NGLs (C3-Propane)
+Added: April - May 2025
6,459 bbls/day
−Removed: 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 .
−Removed: Every derivative instrument is required to be recorded on the balance sheet as either an asset or a liability measured at its fair value.
−Removed: We recognize all changes in fair value of these derivatives as earnings in derivative fair value income or loss in the periods in which they occur.
+Added: (a) We also sold natural gas swaptions of 150,000 Mmbtu/day for calendar year 2026 at a weighted average price of $ 4.00 /Mmbtu that expire through August 2025 and 30,000 Mmbtu/day for calendar year 2027 at a weighted average price of $ 4.00 /Mmbtu that expire in November 2025 .
+Added: The fair value of these contracts as of March 31, 2025 , which utilizes Level 3 inputs, was a derivative liability of $ 30.3 million.
Basis Swap Contracts
−Removed: 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.
+Added: In addition to the commodity derivatives described above, at March 31, 2025 , 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 216,867,500 Mmbtu.
−Removed: The fair value of these contracts was a loss of $ 16.9 million at September 30, 2024.
+Added: The fair value of these contracts was a gain of $ 11.7 million at March 31, 2025.
Derivative Assets and Liabilities
−Removed: 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.
+Added: The combined fair value of derivatives included in the accompanying consolidated balance sheets as of March 31, 2025 and December 31, 2024 is summarized below.
The assets and liabilities are netted where derivatives with both gain and loss positions are held by a single counterparty and we have master netting arrangements.
The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands):
−Removed: September 30,
Derivative assets:
2 unchanged sentences
Net amounts of assets presented in the consolidated balance sheets
−Removed: September 30,
Derivative (liabilities):
2 unchanged sentences
Net amounts of (liabilities) presented in the consolidated balance sheets
−Removed: Derivative Fair Value Income
+Added: Derivative Fair Value (Loss) Income
The effects of our derivatives on our consolidated statements of income are summarized below (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Commodity swaps
−Removed: Three-way collars
−Removed: Divestiture contingent consideration
−Removed: Total derivative fair value income
+Added: Natural gas derivatives
+Added: NGLs derivatives
+Added: Oil derivatives
+Added: Total derivative fair value (loss) income
(8) FAIR VALUE MEASUREMENTS
−Removed: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
−Removed: There are three approaches for measuring the fair value of assets and liabilities:
−Removed: the market approach, the income approach and the cost approach, each of which includes multiple valuation techniques.
−Removed: The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.
−Removed: The income approach uses valuation techniques to measure fair value by converting future amounts, such as cash flows or earnings, into a single present value amount using current market expectations about those future amounts.
−Removed: The cost approach is based on the amount that would currently be required to replace the service capacity of an asset.
−Removed: This is often referred to as current replacement cost.
−Removed: The cost approach assumes that the fair value would not exceed what it would cost a market participant to acquire or construct a substitute asset of comparable utility, adjusted for obsolescence.
−Removed: The fair value accounting standards do not prescribe which valuation technique should be used when measuring fair value and does not prioritize among the techniques.
−Removed: These standards establish a fair value hierarchy that prioritizes the inputs used in applying the various valuation techniques.
−Removed: Inputs broadly refer to the assumptions that market participants use to make pricing decisions, including assumptions about risk.
−Removed: Level 1 inputs are given the highest priority in the fair value hierarchy while Level 3 inputs are given the lowest priority.
−Removed: The three levels of the fair value hierarchy are as follows:
−Removed: • Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date.
−Removed: Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.
−Removed: • Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data.
−Removed: These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.
−Removed: • Level 3 – Unobservable inputs for which there is little, if any, market activity for the asset or liability being measured.
−Removed: These inputs reflect management’s best estimates of the assumptions market participants would use in determining fair value.
−Removed: Our Level 3 measurements consist of instruments using standard pricing models and other valuation methods that utilize unobservable pricing inputs that are significant to the overall fair value.
−Removed: Valuation techniques that maximize the use of observable inputs are favored.
−Removed: Assets and liabilities are classified in their entirety based on the lowest priority level of input that is significant to the fair value measurement.
−Removed: The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities within the levels of the fair value hierarchy.
−Removed: Fair Values – Recurring
−Removed: We use a market approach for our recurring fair value measurements and endeavor to use the best information available.
−Removed: The following tables present the fair value hierarchy for assets and liabilities measured at fair value, on a recurring basis (in thousands):
−Removed: Fair Value Measurements at September 30, 2024 using:
−Removed: Quoted Prices
−Removed: Identical Assets
−Removed: September 30, 2024
−Removed: Trading securities held in the deferred compensation plan
−Removed: –three-way collars
−Removed: Fair Value Measurements at December 31, 2023 using:
−Removed: Quoted Prices
−Removed: Identical Assets
−Removed: December 31, 2023
−Removed: Trading securities held in the deferred compensation plan
−Removed: –three-way collars
−Removed: Our trading securities in Level 1 are exchange-traded and measured at fair value with a market approach using end of period market values.
−Removed: Derivatives in Level 2 are measured at fair value with a market approach using third-party pricing services which have been corroborated with data from active markets or broker quotes.
−Removed: Derivatives in Level 3 are also measured at fair value with a market approach using third-party pricing services which have been corroborated with data from active markets or broker quotes.
−Removed: However, the subjectivity in the volatility factors utilized can cause a significant change in the fair value measurement and is considered a significant unobservable input.
−Removed: 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.
+Added: The Company follows the authoritative guidance for measuring fair value of assets and liabilities in its financial statements.
+Added: For further information on the fair value hierarchy, refer to Note 2 of the Notes to the Consolidated Financial Statements in the Form 10-K.
+Added: As of March 31, 2025, 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 September 30, 2024 , we used a weighted average implied volatility of 17 % for natural gas swaptions.
+Added: At March 31, 2025, we used a weighted average implied volatility of 25 % fo r 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: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended
+Added: March 31, 2025
Balance at December 31, 2024
−Removed: Total gains included in earnings
−Removed: Balance at September 30, 2024
−Removed: Trading securities.
−Removed: Our trading securities held in the deferred compensation plan are accounted for using the mark-to-market accounting method and are included in other assets in the accompanying consolidated balance sheets.
−Removed: We elected to adopt the fair value option to simplify our accounting for the investments in our deferred compensation plan.
−Removed: Interest, dividends, and mark-to-market gains or losses are included in deferred compensation plan expense in the accompanying consolidated statements of income.
−Removed: 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.
−Removed: 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.
−Removed: Fair Values - Non-recurring
−Removed: Certain assets are measured at fair value on a non-recurring basis.
−Removed: These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances.
−Removed: Our proved natural gas and oil properties are reviewed for impairment periodically as events or changes in circumstances indicate the carrying amount may not be recoverable.
−Removed: There were no proved property impairment charges in third quarter or first nine months 2024 or 2023.
−Removed: Fair Values – Reported
−Removed: 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):
−Removed: September 30, 2024
+Added: Total losses included in earnings
+Added: Balance at March 31, 2025
+Added: The following presents the carrying amounts and the fair values and hierarchy of our financial instruments as of March 31, 2025 and December 31, 2024 (in thousands):
+Added: March 31, 2025
December 31, 2024
−Removed: Commodity derivatives
−Removed: Marketable securities (a)
+Added: Commodity derivatives (a)
+Added: Marketable securities (b)
(Liabilities):
−Removed: Commodity derivatives
−Removed: Bank credit facility (b)
−Removed: 4.875 % senior notes due 2025 (b)
−Removed: 8.25 % senior notes due 2029 (b)
−Removed: 4.75 % senior notes due 2030 (b)
−Removed: Deferred compensation plan (c)
−Removed: (a) Marketable securities, which are held in our deferred compensation plans, are actively traded on major exchanges.
−Removed: (b) The book value of our bank debt approximates fair value because of its floating rate structure.
+Added: Commodity derivatives (a)
+Added: Bank credit facility (c)
+Added: 4.875 % senior notes due 2025 (c)
+Added: 8.25 % senior notes due 2029 (c)
+Added: 4.75 % senior notes due 2030 (c)
+Added: Deferred compensation plan (d)
+Added: (a) Fair values for commodity derivatives utilize Level 2 inputs with the exception of swaptions, which utilize Level 3 inputs.
+Added: Fair value of swaption contracts as of March 31, 2025 was a derivative liability of $ 30.3 million.
+Added: (b) Marketable securities, which are held in our deferred compensation plans, are actively traded on major exchanges, which is a level 1 input.
+Added: (c) The book value of our bank debt approximates fair value because of its floating rate structure.
The fair value of our senior notes is based on end of period market quotes which are Level 2 inputs.
−Removed: (c) The fair value of our deferred compensation plan is updated to the closing price on the balance sheet date, which is a Level 1 input.
+Added: Debt is presented on the balance sheet at carrying value.
+Added: (d) The fair value of our deferred compensation plan is updated to the closing price of the marketable securities held in the plan on the balance sheet date, which is a Level 1 input.
Our current assets and liabilities include financial instruments, the most significant of which are trade accounts receivable and payable.
1 unchanged sentence
Our fair value assessment incorporates a variety of considerations, including (1) the short-term duration of the instruments and (2) our historical and expected incurrence of bad debt expense.
+Added: Our allowance for uncollectible receivables was $ 250,000 at March 31, 2025 and $ 255,000 at December 31, 2024.
Non-financial liabilities initially measured at fair value include asset retirement obligations, operating lease liabilities and the divestiture contract obligation that we incurred in conjunction with the sale of our North Louisiana assets.
+Added: Certain assets are measured at fair value on a non-recurring basis.
+Added: These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances.
+Added: 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.
+Added: There were no proved property
+Added: impairment charges for first three months 2025 or 2024.
Concentrations of Credit Risk
−Removed: 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.
−Removed: 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.
−Removed: Letters of credit or other appropriate assurances are obtained as deemed necessary to limit our risk of loss.
−Removed: Our allowance for uncollectible receivables was $ 308,000 at September 30, 2024 and $ 308,000 at December 31, 2023.
−Removed: Our derivative exposure to credit risk is diversified primarily among major investment grade financial institutions, where we have master netting agreements which provide for offsetting payables against receivables from separate derivative contracts.
+Added: As of March 31, 2025, 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.
To manage counterparty risk associated with our derivatives, we select and monitor our counterparties based on our assessment of their financial strength and/or credit ratings.
−Removed: We may also limit the level of exposure with any single counterparty.
Counterparty credit risk is considered when determining the fair value of our derivative contracts.
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.
−Removed: At September 30, 2024 , our derivative counterparties include fifteen financial institutions, of which ten are secured lenders in our bank credit facility.
−Removed: 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.
−Removed: Allowance for Expected Credit Losses.
−Removed: Each reporting period, we assess the recoverability of material receivables using historical data, current market conditions and reasonable and supported forecasts of future economic conditions to determine their expected collectability.
−Removed: The loss given default method is used when, based on management’s judgment, an allowance for expected credit losses should be accrued on a material receivable to reflect the net amount to be collected.
+Added: At March 31, 2025 , our derivative counterparties include fourteen financial institutions, of which ten are secured lenders in our bank credit facility.
+Added: At March 31, 2025 , our net derivative position includes an aggregate net payable of $ 262,000 to one of the counterparties and a net receivable of $ 5.4 million from three of the counterparties not included in our bank credit facility.
(9) STOCK-BASED COMPENSATION PLANS
−Removed: Description of the Plans
−Removed: We have two active equity-based stock plans:
−Removed: our Amended and Restated 2005 Equity-Based Incentive Compensation Plan and our Amended and Restated 2019 Equity-Based Compensation Plan.
−Removed: Under these plans, various awards may be issued to non-employee directors and employees pursuant to decisions of the Compensation Committee, which is composed of only non-employee, independent directors.
Total Stock-Based Compensation Expense
+Added: Refer to Note 10 of the Notes to the Consolidated Financial Statements in the Form 10-K for further description of the various types of stock-based compensation awards, their valuations and their award terms.
Stock-based compensation represents amortization of restricted stock and performance units.
1 unchanged sentence
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Direct operating expense
3 unchanged sentences
Total stock-based compensation expense
−Removed: The mark-to-market adjustment of the liability related to the vested restricted stock Liability Awards held in our deferred compensation plan is directly tied to the change in our stock price and not directly related to the functional expenses and, therefore, is not allocated to the functional categories above.
−Removed: Restricted Stock – Equity Awards
−Removed: 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 Equity Awards generally vest over a three-year period and typically are contingent on the recipient’s continued employment.
−Removed: The grant date fair value of the Equity Awards is based on the fair market value of our common stock on the date of grant.
−Removed: In 2023, we began granting restricted stock (previously placed in our deferred compensation plan) that vests at the end of a three-year period for certain officer grants and at the end of a one-year period for non-employee directors.
−Removed: Vesting is also typically based upon the officer's continued employment with us.
−Removed: 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: The 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 $ 26.5 million in first nine months 2024 compared to $ 23.4 million in the same period of 2023.
−Removed: Restricted Stock – Liability Awards
−Removed: The Compensation Committee also grants restricted stock to certain employees and non-employee directors of the board of directors as part of their compensation.
−Removed: 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 vesting period, which is typically at the end of three years for employee grants and at the end of a one-year period for non-employee directors.
−Removed: In 2023, the number of shares granted into our deferred compensation plan was reduced in favor of restricted stock Equity Awards.
−Removed: 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.
−Removed: Prior to vesting, Liability Award recipients typically earn dividends payable in cash upon vesting but they have no individual voting rights prior to vesting.
−Removed: These Liability Awards are classified as a liability and are re-measured at fair value each reporting period.
−Removed: This mark-to-market amount is reported in deferred compensation plan expense in the accompanying consolidated statements of income.
−Removed: 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.
−Removed: Stock-Based Performance Awards - (PSUs)
−Removed: We have granted two types of performance share awards:
−Removed: one based on performance conditions measured against internal performance metrics and one based on market conditions measured based on Range’s performance relative to a predetermined peer group (TSR Awards).
−Removed: In first nine months 2024, only TSR Awards were granted.
−Removed: Each unit granted represents one share of our common stock.
−Removed: These units are settled in stock and the amount of the payout is based on the vesting percentage, which can range from zero to 200 % and (1) the internal performance metrics achieved, which is determined by the Compensation Committee and (2) for our TSR Awards, the value of our common stock compared to our peers.
−Removed: Dividend equivalents accrue during the performance period and are paid in stock at the end of the performance period.
−Removed: The performance period is three years .
−Removed: Internal Performance Metric Awards.
−Removed: These awards are expensed ratably over the service period and vest at the end of the three-year performance period.
−Removed: The performance metrics are set by the Compensation Committee.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: The mark-to-market adjustment of the liability related to the restricted stock Liability Awards held in our deferr ed compensation plan is directly tied to the change in our stock price and not directly related to the functional expenses and, therefore, is not allocated to the functional categories above.
+Added: Time-based - Equity Awards.
+Added: These awards (" Equity Awards ") are expensed ratably over the service period associated with the awards based on fair value.
+Added: Fair value is based on prevailing market price on the date of grant and is expensed over a service period up to three years.
+Added: We recorded compensation expense for these outstanding Equity Award s of $ 10.1 million i n first three months 2025 compared to $ 9.7 million in the same period of 2024.
+Added: Time-based - Liability Awards.
+Added: These awards (" Liability Awards ") are recognized ratably over the service period associated with the awards based on the grant date fair value of the award but marked-to-market every period due to the option of cash conversion upon distribution.
+Added: These awards are contributed into the Deferred Compensation Plan (discussed below).
+Added: We recorded compensation expense for these restricted stock Liability Awards of $ 191,000 in first three months 2025 compared to $ 460,000 in the same period of 2024.
+Added: Beginning in 2023, time-based equity awards were granted in lieu of liability-based equity awards for certain employees.
+Added: Performance-based TSR Awards ("TSRs" or "TSR Awards").
The fair value of the TSR Awards is estimated on the date of grant using a Monte Carlo simulation model which utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award.
−Removed: The fair value is recognized as stock-based compensation expense over the three-year performance period.
Expected volatilities utilized in the model were estimated using a combination of a historical period consistent with the remaining performance period of three years and option-implied volatilities.
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 $ 2.9 million in first nine months 2024 compared to $ 1.3 million in the same period of 2023 .
+Added: We recorded compensation expense of $ 1.3 million in first three months 2025 compared to $ 808,000 in the same period of 2024 .
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 nine months 2024 and 2023:
−Removed: Nine Months Ended
−Removed: September 30,
+Added: The following assumptions were used to estimate the fair value of the TSR Awards granted during first three months 2025 and 2024:
+Added: Three Months Ended March 31,
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 nine months ended September 30, 2024 and 2023:
−Removed: Restricted Stock
+Added: The following is a summary of the activity for our time-based and performance-based stock awards for the three months ended March 31, 2025:
Equity Awards
−Removed: Restricted Stock
Liability Awards
−Removed: Performance Awards
+Added: Performance-Based
Average Grant
5 unchanged sentences
Outstanding at December 31, 2024
−Removed: Outstanding at September 30, 2024
−Removed: Outstanding at December 31, 2022
−Removed: Outstanding at September 30, 2023
−Removed: Amounts granted reflect performance units initially granted.
+Added: Outstanding at March 31, 2025
+Added: (a) Amounts granted reflect performance units initially granted.
The actual payout will be between zero and 200 % depending on achievement of either total stockholder return ranking compared to our peers over the performance period or on the achievement of internal performance targets.
Deferred Compensation Plan
−Removed: Our deferred compensation plan gives non-employee directors and officers the ability to defer all or a portion of their salaries, bonuses or director fees and invest in Range common stock or make other investments at the individual’s discretion.
−Removed: Range provides a partial matching contribution to participating officers which generally vests at the end of three years .
−Removed: The assets of the plan are held in a grantor trust, which we refer to as the Rabbi Trust, and are therefore available to satisfy the claims of our general creditors in the event of bankruptcy or insolvency.
−Removed: Our common stock held in the Rabbi Trust is treated as a liability award as employees are allowed to take withdrawals from the Rabbi Trust either in cash or in Range stock.
−Removed: The liability for the vested portion of the stock held in the Rabbi Trust is reflected as deferred compensation liability in the accompanying consolidated balance sheets and is adjusted to fair value each reporting period by a charge or credit to deferred compensation plan expense on our consolidated statements of income.
−Removed: 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 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
−Removed: of the deferred compensation plan liability are charged or credited to deferred compensation plan expense each quarter.
−Removed: We recorded a mark-to-market gain of $ 1.9 million in third quarter 2024 compared to a mark-to-market loss of $ 9.0 million in third quarter 2023 .
−Removed: 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 .
−Removed: 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 .
+Added: The assets of our deferred compensation plan are held in a grantor trust, which we refer to as the Rabbi Trust, and are therefore available to satisfy the claims of our general creditors in the event of bankruptcy or insolvency.
+Added: Our common stock held in the Rabbi Trust is accounted for as Liability Awards and is adjusted to fair value each reporting period by a charge or credit to deferred compensation plan expense on our consolidated statements of income.
+Added: We recorded a mark-to-mar ket loss of $ 2.9 million in first quarter 2025 compared to a mark-to-market loss of $ 6.4 million in first quarter 2024 .
+Added: The Rabbi Trust held 621,000 shares ( 609,000 vested shares) of Range com mon stock at March 31, 2025 compared to 742,000 shares ( 724,000 vested shares) at December 31, 2024.
+Added: Trading securities.
+Added: Our trading securities held in the deferred compensation plan are accounted for using the mark-to-market accounting method and are included in other assets in the accompanying consolidated balance sheets.
+Added: We elected to adopt the fair value option to simplify our accounting for the investments in our deferred compensation plan.
+Added: Interest, dividends, and mark-to-market gains or losses are included in the changes in our deferred compensation assets (reported in Other Assets) and liabilities on the accompanying consolidated balance sheets.
+Added: For first quarter 2025, interest and dividends were $ 133,000 and the mark-to-market adjustment was a loss of $ 928,000 compared to interest and dividends of $ 195,000 and a mark-to-market gain of $ 4.2 million in first quarter 2024 .
(10) CAPITAL STOCK
−Removed: We have authorized capital stock of 485.0 million shares, which includes 475.0 million shares of common stock and 10.0 million shares of preferred stock.
−Removed: We currently have no preferred stock issued or outstanding.
−Removed: The following is a schedule of changes in the number of common shares outstanding since the beginning of 2023:
−Removed: Nine Months Ended
−Removed: September 30, 2024
−Removed: December 31, 2023
−Removed: Beginning balance
−Removed: Restricted stock grants
−Removed: Restricted stock units vested
−Removed: Performance stock units issued
−Removed: Performance stock dividends
−Removed: Treasury shares
−Removed: Ending balance
−Removed: Stock Repurchase Program
−Removed: In 2019, the board of directors approved a stock repurchase program which was increased in size in 2022.
−Removed: At September 30, 2024 , we had a remaining authorization to repurchase up to approximately $ 1.0 billion of our common stock.
−Removed: Under this program, we may repurchase shares in open market transactions, from time to time, in accordance with applicable SEC rules and federal securities laws.
−Removed: Purchases under the program are made at our discretion and may change based upon market conditions.
−Removed: 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.
−Removed: 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:
+Added: Treasury Stock
+Added: As of March 31, 2025, we had a remaining authorization to repurchase up to approximately $ 948.6 million of our common stock.
+Added: In first quarter 2025, we repurchas ed 1.8 million shares at an aggregate cost of $ 67.5 million ($ 67.9 million including the 1 % excise tax).
+Added: In addition, we repurchased 1,100 shares of our common stock ($ 44,000 ) traded in March but settled in April.
+Added: The following is a schedule of the change in treasury shares based on settlement date for the three months ended March 31, 2025:
Three Months Ended
−Removed: September 30, 2024
−Removed: Nine Months Ended September 30, 2024
+Added: March 31, 2025
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 nine months 2024, we recorded accretion expense of $ 30.0 million compared to $ 31.6 million in the same period of the prior year.
−Removed: 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.
−Removed: 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.
−Removed: The estimated discounted divestiture contract obligation was $ 356.1 million at September 30, 2024.
−Removed: In second quarter 2020, we negotiated capacity releases on certain transportation pipelines in Pennsylvania effective May 31, 2020 and extending through the remainder of the contract.
−Removed: The estimated remaining discounted obligation for these transportation capacity releases as of September 30, 2024 was $ 495,000 .
−Removed: 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):
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Transportation contract capacity releases
−Removed: Divestiture contract obligation
−Removed: The following details the accrued exit cost liability activity for the nine months ended September 30, 2024 (in thousands):
−Removed: Exit Costs (a)
+Added: In first three months 2025, we recorded accretion expense of $ 8.9 million compared to $ 10.3 million in the same period of the prior year.
+Added: The following details the accrued exit cost liability activity for the three months ended March 31, 2025 (in thousands):
Balance at December 31, 2024
1 unchanged sentence
Changes in estimate
−Removed: Balance at September 30, 2024
−Removed: (a) Includes the divestiture contract obligation and the transportation contract capacity release obligation.
+Added: Balance at March 31, 2025
(12) SUPPLEMENTAL CASH FLOW INFORMATION
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended March 31,
(in thousands)
Net cash provided from operating activities included:
−Removed: Income taxes refunded from or (paid to) taxing authorities
+Added: Income taxes paid to taxing authorities
Interest paid
1 unchanged sentence
Increase in asset retirement costs capitalized
−Removed: Increase in accrued capital expenditures
+Added: (Decrease) Increase in accrued capital expenditures
(13) COMMITMENTS AND CONTINGENCIES
6 unchanged sentences
We have incurred and will continue to incur capital, operating and remediation expenditures as a result of environmental laws and regulations.
−Removed: As of September 30, 2024, liabilities for remediation were not material.
−Removed: 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.
+Added: As of March 31, 2025, liabilities for remediation were not material.
+Added: We are not aware of any environmental claims existing as of March 31, 2025 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.
Transportation, Gathering and Processing Contracts
−Removed: 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 or third quarter 2024.
−Removed: 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.
−Removed: We have a related contingent minimum commitment for the de-ethanization capacity associated with this processing expansion.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: There were no significant changes to firm transportation, gathering and processing minimum commitments or contingent commitments in first quarter 2025 .
( 14) SUSPENDED EXPLORATORY WELL COSTS
2 unchanged sentences
If an exploratory well is determined to be impaired, the well costs are charged to exploration expense in the accompanying consolidated statements of income.
−Removed: There were no capitalized exploratory well costs in 2023.
−Removed: The following table reflects the changes in capitalized exploratory well costs for the nine months ended September 30, 2024 (in thousands):
−Removed: Nine Months Ended
−Removed: September 30, 2024
+Added: The following table reflects the changes in capitalized exploratory well costs for the three months ended March 31, 2025:
+Added: Three Months Ended
+Added: March 31, 2025
+Added: (in thousands)
Balance at beginning of period
5 unchanged sentences
Capitalized exploratory well costs that have been capitalized for a period greater than one year
−Removed: (18) Costs Incurred for Property Acquisition, Exploration and Development (a)
−Removed: Nine Months Ended
−Removed: September 30, 2024
+Added: (15) NATURAL GAS AND OIL EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES
+Added: Capitalized Costs and Accumulated Depreciation, Depletion and Amortization (a)
+Added: (in thousands)
+Added: Natural gas properties:
+Added: Properties subject to depletion
+Added: Unproved properties
+Added: Accumulated depletion and depreciation
+Added: Net capitalized costs
+Added: (a) Includes capitalized asset retirement costs and the associated accumulated amortization.
+Added: Costs Incurred for Property Acquisition, Exploration and Development (b)
+Added: Three Months Ended
+Added: March 31, 2025
December 31, 2024
6 unchanged sentences
Total costs incurred
−Removed: (a) Includes costs incurred whether capitalized or expensed.
+Added: (b) Includes costs incurred whether capitalized or expensed.
MANAGEMENT’S DISCUSSION AND ANA LYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
8 unchanged sentences
Commodity prices have been and are expected to remain volatile.
−Removed: We believe we are well-positioned to manage challenges during a low commodity price environment and that we can endure the continued volatility in current and future commodity prices by:
+Added: We believe we are well-positioned to manage challenges during a low commodity price environment and that we can endure the continued fluctuations in current and future commodity prices by:
• exercising discipline in our capital investments;
−Removed: • optimizing drilling, completion and operational efficiencies;
• maintaining a competitive cost structure;
+Added: • diversifying sales outlets;
• managing price risk through the hedging of our production;
−Removed: • managing our balance sheet.
+Added: • managing a strong balance sheet;
+Added: • optimizing drilling, completion and operational efficiencies.
Prices for natural gas, NGLs and oil fluctuate widely and affect:
• our revenues, profitability and cash flow;
+Added: • the amount of cash flow available to us for reinvestment or return to our stockholders;
• the quantity of natural gas, NGLs and oil that we can economically produce;
• the quantity of natural gas, NGLs and oil shown as proved reserves;
−Removed: • the amount of cash flow available to us for reinvestment;
• our ability to borrow and raise additional capital, if needed.
5 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 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 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.
−Removed: 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.
+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 gas, NGLs and oil, future monetary and fiscal policy, potential tariffs and their impacts on global trade and energy demands and governmental policies aimed at transitioning towards lower carbon energy.
+Added: 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 2025, natural gas prices increased primarily due to winter weather and larger than expected exports from new U.S.
+Added: LNG export facilities.
+Added: Longer term natural gas futures prices remain constructive based on market expectations of continued LNG expansion, power demand and associated gas-related activity in oil basins and dry gas basin activity will show modest rates of growth due to infrastructure constraints, moderated reinvestment rates and core inventory exhaustion.
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.
−Removed: 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.
+Added: Other factors such as geopolitical disruptions, supply chain disruptions, cost inflation, concerns over a potential economic recession and the pace of changes in global monetary policy may impact global demand for natural gas, NGLs and oil.
We continue to assess and monitor the impact and consequences of these factors on our operations.
−Removed: Commodity prices have remained volatile.
−Removed: Benchmarks for natural gas and NGLs decreased in third quarter 2024 and first nine months 2024 compared to the same periods of 2023.
−Removed: As a result, we experienced decreases in our price realizations for the quarter and nine months ended September 30, 2024.
−Removed: 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 nine months ended September 30, 2024 and 2023:
+Added: Benchmarks for natural gas and NGLs increased in first quarter 2025 compared to the same period of 2024.
+Added: As a result, we experienced increases in our price realizations for the quarter ended March 31, 2025.
+Added: With these increasing prices, we continue to focus on
+Added: creating long-term value for our stockholders along with positioning ourselves to be a responsible and reliable supplier of natural gas and NGLs.
+Added: The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the three months ended March 31, 2025 and 2024:
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Average NYMEX prices (a)
2 unchanged sentences
Mont Belvieu NGLs composite (per gallon) (b)
−Removed: Based on weighted average of bid week prompt month prices on the New York Mercantile Exchange ("NYMEX").
−Removed: Based on our estimated NGLs product composition per barrel.
+Added: (a) Based on weighted average of bid week prompt month prices on the New York Mercantile Exchange ("NYMEX").
+Added: (b) Based on our estimated NGLs product composition per barrel.
Prices for natural gas, NGLs and oil that we produce significantly impact our revenues and cash flows.
1 unchanged sentence
Consolidated Results of Operations
−Removed: Overview of Third Quarter 2024 Results
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Daily production averaged 2.2 Bcfe in third quarter 2024 and 2.1 Bcfe in the same period of 2023.
−Removed: Our third quarter 2024 financial and operating performance included the following results:
−Removed: • 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);
−Removed: • 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 third quarter 2024 compared to $0.12 in the same period of 2023;
−Removed: • 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;
−Removed: • general and administrative expense per mcfe was $0.20 in third quarter 2024 compared to $0.20 in the same period of 2023;
−Removed: • interest expense decreased 4% from the same period of 2023 due to lower debt balances.
−Removed: Third quarter 2024 also included the following highlights to enhance our balance sheet, return capital to investors and preserve liquidity:
−Removed: • paid $19.3 million of dividends, or $0.08 per share;
−Removed: • repurchased $24.0 million of our common stock and settled $9.9 million of our common stock that was traded in June 2024 ;
−Removed: • repurchased in the open market $3.0 million face value of our 4.875% senior notes due 2025 at a discount;
−Removed: • 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 $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.
−Removed: Overview of First Nine Months 2024 Results
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Our first nine months 2024 financial and operating performance included the following results:
−Removed: • 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: Overview of First Quarter 2025 Results
+Added: In first quarter 2025, we experienced an increase in revenue from the sale of natural gas, NGLs and oil when compared to the same quarter of 2024, due to an increase of 21% in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) and a 2% increase in total production.
+Added: Daily production averaged 2.2 Bcfe in first quarter 2025 and 2.1 Bcfe in the same period of 2024.
+Added: During first quarter 2025, we recognized net income of $97.1 million, or $0.40 per diluted common share compared to net income of $92.1 million, or $0.38 per diluted common share during first quarter 2024.
+Added: The higher net income in first quarter 2025 compared to first quarter 2024 is primarily due to increased realized prices offset by a higher unrealized derivative fair value loss.
+Added: Our first quarter 2025 financial and operating performance included the following results:
+Added: • revenue from the sale of natural gas, NGLs and oil increased 40% from the same period of 2024 due to a 37% increase in average realized prices (before cash settlements on our derivatives) combined with a 2% increase in production volumes;
• revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) increased 16% from the same period of 2024;
−Removed: • 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;
−Removed: • 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;
−Removed: • general and administrative expense per mcfe was $0.21 in first nine months 2024 compared to $0.21 in the same period of 2023;
+Added: • direct operating expense per mcfe increased to $0.13 in first quarter 2025 compared to $0.11 in the same period of 2024 due to an increase in water hauling, pumping costs and increased winter operations activity;
+Added: • transportation, gathering, processing and compression per mcfe was $1.55 in first quarter 2025 compared to $1.49 in the same period of 2024, primarily due to an increase in NGLs volumes and prices;
+Added: • general and administrative expense per mcfe was $0.21 in first quarter 2025 compared to $0.23 in the same period of 2024 due largely to timing of expenses;
• interest expense decreased 4% from the same period of 2024 due to lower debt balances.
−Removed: First nine months 2024 also included the following highlights to enhance our balance sheet, return capital to investors and preserve liquidity:
−Removed: • paid $58.1 million of dividends, or $0.24 per share;
−Removed: • repurchased $44.1 million of our common stock;
−Removed: • repurchased in the open market $70.2 million face value of our 4.875% senior notes due 2025 at a discount;
+Added: First quarter 2025 also included the following highlights to enhance our balance sheet and return capital to investors :
+Added: • paid $21.6 million of dividends, increasing per share dividend by 12.5% to $0.09 per share compared to $0.08 per share in the same period of 2024;
+Added: • repurchased $67.5 million (1.8 million shares) of our common stock;
+Added: • repurchased in the open market $2.2 million principal amount of our 4.875% senior notes due 2025 at a discount;
• maintained substantial liquidity with the accumulation of cash on hand of $344.6 million along with $1.3 billion available under our credit facility.
−Removed: 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.
+Added: We generated $330.1 million of cash from operating activities in first quarter 2025, a slight decrease of $1.8 million from first quarter 2024, which reflects the impact of lower working capital.
Natural Gas, NGLs and Oil Sales, Production and Realized Price Calculations
1 unchanged sentence
Our revenues are generally recognized when control of the product is transferred to the customer and collectability is reasonably assured.
−Removed: 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):
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: The following table illustrates the primary components of natural gas, NGLs and oil sales for the three months ended March 31, 2025 and 2024 (in thousands):
+Added: Three Months Ended March 31,
Natural gas, NGLs and oil sales
1 unchanged sentence
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.
−Removed: Our production for the three and nine months ended September 30, 2024 and 2023 is set forth in the following table:
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Our production for the three months ended March 31, 2025 and 2024 is set forth in the following table:
+Added: Three Months Ended March 31,
Production (a)
4 unchanged sentences
Total (mcfe) (b)
−Removed: Represents volumes sold regardless of when produced.
−Removed: Oil and NGLs volumes are converted to mcfe at the rate of one barrel equals six mcf based upon the approximate relative energy content of oil to natural gas, which is not indicative of the relationship between oil and natural gas prices.
−Removed: Our average realized price received (including all derivative settlements and third-party transportation costs) during third quarter 2024 was $1.67 per mcfe compared to $1.67 per mcfe in third quarter 2023.
−Removed: 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.
+Added: (a) Represents volumes sold regardless of when produced.
+Added: (b) 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.
+Added: Our average realized price received (including all derivative settlements and third-party transportation costs) during first quarter 2025 was $2.48 per mcfe compared to $2.05 per mcfe in first quarter 2024.
We believe computed final realized prices should include the total impact of transportation, gathering, processing and compression expense.
2 unchanged sentences
Our average realized prices (including derivative settlements) do include transportation costs where we receive net revenue proceeds from purchasers.
−Removed: Our average realized price calculations for three and nine months ended September 30, 2024 and 2023 are shown below:
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Our average realized price calculations for three months ended March 31, 2025 and 2024 are shown below:
+Added: Three Months Ended March 31,
Average Prices
15 unchanged sentences
Total (per mcfe) (a)
−Removed: 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.
+Added: (a) 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.
Realized prices include the impact of basis differentials and gains or losses realized from our basis hedging.
2 unchanged sentences
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
Average natural gas differentials below NYMEX
1 unchanged sentence
The following tables reflect our production and average sales prices (excluding derivative settlements and third-party transportation costs paid by Range) (in thousands, except prices):
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended March 31,
Price (per mcf)
1 unchanged sentence
Natural gas sales
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended March 31,
Price (per bbl)
Production (Mbbls)
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended March 31,
Price (per bbl)
Production (Mbbls)
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended March 31,
Price (per mcfe)
Production (Mmcfe)
−Removed: Total natural gas,
−Removed: NGLs and oil sales
−Removed: Transportation, gathering, processing and compression expense was $306.2 million in third quarter 2024 compared to $277.2 million in third quarter 2023.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: Total natural gas, NGLs and oil sales
+Added: Transportation, gathering, processing and compression expense was $306.1 million in first quarter 2025 compared to $290.9 million in first quarter 2024.
+Added: These third-party costs are higher in first quarter 2025 when compared to first quarter 2024 primarily due to an increase in NGLs volumes and prices.
+Added: Gas transportation expense increased due to an increase in fuel cost caused by higher prices combined with an increase in electric compression cost.
We have included these costs in the calculation of average realized prices (including all derivative settlements and third-party transportation expenses paid by Range).
−Removed: The following table summarizes transportation, gathering, processing and compression expense for the three and nine months ended September 30, 2024 and 2023 on a per mcf and per barrel basis (in thousands, except for costs per unit):
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: The following table summarizes transportation, gathering, processing and compression expense for the three months ended March 31, 2025 and 2024 on a per mcf and per barrel basis (in thousands, except for costs per unit):
+Added: Three Months Ended March 31,
Transportation, gathering
3 unchanged sentences
Oil (per bbl)
−Removed: Derivative fair value income was $47.1 million in third quarter 2024 compared to $38.4 million in third quarter 2023.
−Removed: 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.
+Added: Total (per mcfe)
+Added: Derivative fair value (loss) was $159.0 million in first quarter 2025 compared to income of $46.6 million in first quarter 2024.
All of our derivatives are accounted for using the mark-to-market accounting method.
2 unchanged sentences
Gains on our derivatives generally indicate potentially lower wellhead revenues in the future while losses indicate potentially higher future wellhead revenues.
−Removed: The following table summarizes the impact of our commodity derivatives for the three and nine months ended September 30, 2024 and 2023 (in thousands):
+Added: The following table summarizes the impact of our commodity derivatives for the three months ended March 31, 2025 and 2024 (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Derivative fair value income per consolidated statements of income
+Added: Derivative fair value (loss) income per consolidated statements of income
Non-cash fair value (loss) income:
2 unchanged sentences
Oil derivatives
−Removed: Divestiture contingent consideration
−Removed: Total non-cash fair value (loss) income ⁽ᵃ⁾
+Added: Total non-cash fair value loss ⁽ᵃ⁾
Net cash receipt (payment) on derivative settlements:
3 unchanged sentences
Total net cash receipt
−Removed: Non-cash fair value adjustments on commodity derivatives is a non-U.S.
+Added: (a) Non-cash fair value adjustments on commodity derivatives is a non-U.S.
GAAP measure.
3 unchanged sentences
GAAP, nor should it be considered a substitute for derivative fair value income or loss as reported in our consolidated statements of income.
−Removed: This also includes the change in fair value of our divestiture contingent consideration.
−Removed: 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.
+Added: Brokered natural gas and marketing revenue was $54.4 million in first quarter 2025 compared to $28.8 million in first quarter 2024, which is the result of higher broker sales price slightly offset by lower broker sales volumes (volumes not related to our production).
We continue to optimize our transportation portfolio using these volumes.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: Other income was $3.2 million in first quarter 2025 compared to $3.0 million in first quarter 2024.
+Added: This includes $3.1 million of interest income and a $62,000 gain on sale of assets in 2025 compared to $2.9 million of interest income and an $87,000 gain on sale of assets in 2024.
+Added: In the 2024 interim periods, interest income was included within brokered natural gas and marketing revenue and other and gain on sale of assets was its own discrete line in prior interim financial statements.
+Added: In 2025 and for the comparable interim period presented, we reclassified both of these items into other income in the accompanying consolidated statements of income.
Operating Costs per Mcfe
We believe some of our expense fluctuations are best analyzed on a unit-of-production or per mcfe basis.
−Removed: The following table presents information about certain of our expenses on a per mcfe basis for the three and nine months ended September 30, 2024 and 2023:
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: The following table presents information about certain of our expenses on a per mcfe basis for the three months ended March 31, 2025 and 2024:
+Added: Three Months Ended March 31,
Direct operating expense
3 unchanged sentences
Depletion, depreciation and amortization expense
−Removed: Direct operating expense was $25.3 million in third quarter 2024 compared to $22.6 million in third quarter 2023.
+Added: Direct operating expense was $25.4 million in first quarter 2025 compared to $22.2 million in first quarter 2024.
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 increased in third quarter 2024 primarily due to higher water hauling costs, pumping expenses and contract labor and service expenses.
−Removed: We incurred $690,000 of workover costs in third quarter 2024 compared to $603,000 in third quarter 2023.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: These costs are expected to enhance production from existing wells.
−Removed: The following table summarizes direct operating expense per mcfe for the three and nine months ended September 30, 2024 and 2023:
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Our direct operating costs increased in first quarter 2025 primarily due to higher water hauling, pumping costs and increased winter operations activity.
+Added: We incurred $789,000 of workover costs in first quarter 2025 compared to $869,000 in first quarter 2024.
+Added: The following table summarizes direct operating expense per mcfe for the three months ended March 31, 2025 and 2024:
+Added: Three Months Ended March 31,
Direct operating
2 unchanged sentences
Total direct operating expense
−Removed: Taxes other than income expense is predominately comprised of the Pennsylvania impact fee which is paid based on market commodity prices.
−Removed: 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 $4.9 million in third quarter 2024 compared to $4.5 million in third quarter 2023.
−Removed: 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.
+Added: Taxes other than income expense is predominately comprised of the Pennsylvania impact fee which functions as a tax on unconventional natural gas and oil production from the Marcellus Shale in Pennsylvania.
+Added: This impact fee was $6.8 million in first quarter 2025 compared to $5.7 million in first quarter 2024.
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: The following table summarizes taxes other than income per mcfe for the three and nine months ended September 30, 2024 and 2023:
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: The following table summarizes taxes other than income per mcfe for the three months ended March 31, 2025 and 2024:
+Added: Three Months Ended March 31,
Taxes other than income
Total taxes other than income
−Removed: General and administrative (G&A) expense was $41.5 million in third quarter 2024 compared to $38.1 million in third quarter 2023.
−Removed: 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.
−Removed: G&A expense for first nine months 2024 was $125.6 million compared to $120.8 million in the same period of 2023.
−Removed: 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 nine months ended September 30, 2024 and 2023:
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: General and administrative (G&A) expense was $41.7 million in first quarter 2025 compared to $43.9 million in first quarter 2024.
+Added: The first quarter 2025 decrease of $2.2 million when compared to the same period of 2024 is primarily due to lower consulting fees and timing of expenses.
+Added: The following table summarizes G&A expenses on a per mcfe basis for the three months ended March 31, 2025 and 2024:
+Added: Three Months Ended March 31,
General and administrative
1 unchanged sentence
Stock-based compensation
−Removed: Total general and administrative
−Removed: Interest expense was $29.3 million in third quarter 2024 compared to $30.6 million in third quarter 2023.
−Removed: Interest expense was $89.5 million in first nine months 2024 compared to $93.9 million in first nine months 2023.
−Removed: The following table presents information about interest expense per mcfe for the three and nine months ended September 30, 2024 and 2023:
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Total general and administrative expense
+Added: Interest expense was $29.2 million in first quarter 2025 compared to $30.5 million in first quarter 2024.
+Added: The following table presents information about interest expense per mcfe for the three months ended March 31, 2025 and 2024:
+Added: Three Months Ended March 31,
Bank credit facility (a)
4 unchanged sentences
Average interest rate (b)
−Removed: Includes commitment fees.
−Removed: Excludes deferred financing costs.
−Removed: The decrease in interest expense for third 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 third quarter 2024 or the same period of 2023.
−Removed: 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.
−Removed: 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.
−Removed: Depletion, depreciation and amortization (DD&A) expense was $91.1 million in third quarter 2024 compared to $87.6 million in third quarter 2023.
−Removed: 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 third quarter 2024 compared to $0.44 per mcfe in third quarter 2023.
−Removed: DD&A expense was $265.9 million in first nine months 2024 compared to $259.2 million in the same period of 2023.
−Removed: This increase is due to a slight increase in production volumes.
−Removed: Depletion expense was $0.44 per mcfe in first nine months 2024 compared to $0.44 in the same period of 2023.
+Added: (a) Includes commitment fees.
+Added: (b) Excludes deferred financing costs.
+Added: The decrease in interest expense for first quarter 2025 from the same period of 2024 was primarily due to lower average outstanding debt balances.
+Added: We had no debt outstanding on the bank credit facility for first quarter 2025 or the same period of 2024.
+Added: Depletion, depreciation and amortization (DD&A) expense was $90.6 million in first quarter 2025 compared to $87.1 million in first quarter 2024.
+Added: This increase is due to a higher depletion rate combined with slightly higher production volumes.
+Added: Depletion expense, the largest component of DD&A expense, was $0.45 per mcfe in first quarter 2025 compared to $0.44 per mcfe in first quarter 2024.
We have historically adjusted our depletion rates in the fourth quarter of each year based on the year-end reserve report and at other times during the year when circumstances indicate there has been a significant change in reserves or costs.
−Removed: The following table summarizes DD&A expense per mcfe for the three and nine months ended September 30, 2024 and 2023:
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: The following table summarizes DD&A expense per mcfe for the three months ended March 31, 2025 and 2024:
+Added: Three Months Ended March 31,
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 nine months ended September 30, 2024 and 2023 (in thousands):
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Direct operating expense
−Removed: Brokered natural gas and marketing expense
−Removed: Exploration expense
−Removed: General and administrative expense
−Removed: Total stock-based compensation expense
−Removed: 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.
−Removed: 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.
−Removed: 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):
+Added: See Note 9 to our consolidated financial statements for more information on allocation of stock-based compensation by functional expense categories.
+Added: Brokered natural gas and marketing expense was $58.2 million in first quarter 2025 compared to $31.6 million in first quarter 2024 due to higher commodity prices slightly offset by lower broker purchase volumes (volumes not related to our production).
+Added: The following table details our brokered natural gas and marketing net margin for the three months ended March 31, 2025 and 2024 (in thousands):
Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Brokered natural gas, marketing and other
+Added: Brokered natural gas and marketing
Brokered natural gas sales
Brokered NGLs sales
−Removed: Interest income
−Removed: Other marketing revenue and other income
+Added: Other marketing revenue
Brokered natural gas purchases and transportation
1 unchanged sentence
Other marketing expense
−Removed: Net brokered natural gas, marketing and other net margin
−Removed: 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.
−Removed: 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.
−Removed: The following table details our exploration expense for the three and nine months ended September 30, 2024 and 2023 (in thousands):
−Removed: Three Months Ended
−Removed: September 30,
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Net brokered natural gas and marketing net margin
+Added: Exploration expense was $6.4 million in first quarter 2025 compared to $4.5 million in first quarter 2024 mainly due to higher delay rentals.
+Added: The following table details our exploration expense for the three months ended March 31, 2025 and 2024 (in thousands):
+Added: Three Months Ended March 31,
Delay rentals and other
2 unchanged sentences
Total exploration expense
−Removed: Abandonment and impairment of unproved properties expense was $4.7 million in third quarter 2024 compared to $11.0 million in third quarter 2023.
−Removed: 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.
−Removed: 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.
+Added: Abandonment and impairment of unproved properties expense was $4.6 million in first quarter 2025 compared to $2.4 million in first quarter 2024.
+Added: Abandonment and impairment of unproved properties for first quarter 2025 increased when compared to the same period of 2024 due to higher expected lease expirations in Pennsylvania.
When we do not intend to drill on a property prior to expiration, we have allowed acreage to expire and we expect to allow acreage to expire in the future.
However, we also believe acreage needed for our future development plans can be leased again.
−Removed: Exit costs were $7.6 million in third quarter 2024 compared to $10.7 million in third quarter 2023.
−Removed: 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.
−Removed: Third quarter 2024 includes an adjustment of $2.1 million to decrease this obligation mainly due to a decrease in forecasted electricity costs.
−Removed: Exit costs were $28.1 million in first nine months 2024 compared to $71.7 million in first nine months 2023.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: Exit costs were $8.9 million in first quarter 2025 compared to $10.3 million in first quarter 2024.
+Added: In first quarter 2025, we recorded $8.9 million accretion expense primarily related to retained liabilities for certain gathering, transportation and processing obligations extending through 2030 compared to accretion expense of $10.3 million in the same quarter of the prior year.
+Added: Deferred compensation plan expense was $2.9 million in first quarter 2025 compared to $6.4 million in first quarter 2024.
This non-cash item relates to the increase or decrease in value of the liability associated with our common stock that is vested and held in our deferred compensation plan.
The deferred compensation liability is adjusted to fair value by a charge or a credit to deferred compensation plan expense based on the number of vested shares in the plan at the time.
−Removed: Our stock price decreased from $33.53 at June 30, 2024 to $30.76 at September 30, 2024.
−Removed: 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.
−Removed: 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.
−Removed: Our stock price increased from $30.44 at December 31, 2023 to $30.76 at September 30, 2024.
−Removed: 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.
−Removed: Income tax expense was $15.6 million in third quarter 2024 compared to $15.7 million in third quarter 2023.
−Removed: Income tax expense was $15.1 million in first nine months 2024 compared to an $152.3 million in the same period of 2023.
−Removed: 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.
+Added: Our stock price increased from $35.98 at December 31, 2024 to $39.93 at March 31, 2025.
+Added: In the same period of the prior year, our stock price increased from $30.44 at December 31, 2023 to $34.43 at March 31, 2024.
+Added: Income tax expense was $12.7 million in first quarter 2025 compared to an expense of $18.2 million in first quarter 2024.
+Added: The 2025 and 2024 effective tax rates were different than the statutory tax rates due to tax credits, state income taxes and equity compensation.
Management’s Discussion and Analysis of Financial Condition, Capital Resources and Liquidity
1 unchanged sentence
Commodity prices have been and are expected to remain volatile.
−Removed: Our top priorities for using cash provided by operations are to fund our capital budget program, debt repayments and return capital to stockholders.
+Added: Our top priorities for using cash provided by operations are to fund our capital program, return capital to stockholders and further reduce debt.
We currently believe we have sufficient liquidity and capital resources to execute our business plan for the foreseeable future and across a wide range of commodity price environments.
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 nine months ended September 30, 2024 and 2023 (in thousands):
−Removed: Nine Months Ended
−Removed: September 30,
+Added: The following table presents sources and uses of cash and cash equivalents for the three months ended March 31, 2025 and 2024 (in thousands):
+Added: Three Months Ended
Sources of cash and cash equivalents
1 unchanged sentence
Disposal of assets
−Removed: Borrowing on credit facility
Total sources of cash and cash equivalents
−Removed: Uses of cash and cash equivalent
+Added: Uses of cash and cash equivalents
Additions to natural gas properties
−Removed: Repayments on credit facility
Acreage purchases
5 unchanged sentences
Sources of Cash and Cash Equivalents
−Removed: 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.
+Added: Cash flows provided from operating activities in first three months 2025 were $330.1 million compared to $331.9 million in first three months 2024.
Cash provided from operating activities is largely dependent upon commodity prices and production volumes, net of the effects of settlement of our derivative contracts.
−Removed: The decrease in cash provided from operating activities from first nine months 2023 to first nine months 2024 reflects lower realized prices.
−Removed: As of September 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 nine months 2024 was a negative $49.8 million compared to a negative $54.9 million for first nine months 2023.
+Added: As of March 31, 2025, we have hedged more than 30% of our projected natural gas production for the remainder of 2025.
+Added: Changes in working capital (as reflected in our consolidated statements of cash flows) for first three months 2025 was a negative $61.4 million compared to a positive $28.3 million for first three months 2024.
Uses of Cash and Cash Equivalents
−Removed: Additions to natural gas properties for first nine months 2024 were consistent with expectations relative to our announced 2024 capital budget.
−Removed: 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.
−Removed: 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.
+Added: Additions to natural gas properties for first three months 2025 were consistent with expectations relative to our announced 2025 capital budget.
+Added: Repayment of senior notes for first three months 2025 includes the repurchase and settlement of $2.2 million principal amount of our 4.875% senior notes due 2025 at a discount.
+Added: Treasury stock purchases for first three months 2025 include the repurchase and settlement of 1.8 million shares for a total of $67.5 million (excluding cost of 1% excise tax) as part of our previously announced stock repurchase program.
Liquidity and Capital Resources
Our main sources of liquidity are cash on hand, internally generated cash flow from operations, capital market transactions and our bank credit facility.
−Removed: 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.
+Added: At March 31, 2025, we had approximately $1.6 billion of liquidity consisting of $344.6 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 2025 capital program to be funded by cash flows from operations.
−Removed: During the nine months ended September 30, 2024, we generated $726.6 million of cash flows from operating activities.
+Added: During the three months ended March 31, 2025, we generated $330.1 million of cash flows from operating activities.
Bank Credit Facility
Our bank credit facility is secured by substantially all of our assets.
−Removed: As of September 30, 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 $169.4 million as of September 30, 2024, which reduce our borrowing capacity under our bank credit facility.
+Added: As of March 31, 2025, 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 $164.1 million as of March 31, 2025, 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 October 2024 with our borrowing base and lender commitments reaffirmed.
+Added: Our scheduled borrowing base re-determination was completed in March 2025 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 September 30, 2024.
+Added: We were in compliance with all such covenants at March 31, 2025.
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 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.
+Added: During first three months 2025, we used operating cash flows to fund $158.3 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.
6 unchanged sentences
Cash Dividend Payments
−Removed: 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.
+Added: On February 28, 2025, our board of directors approved a dividend of $0.09 per share payable on March 28, 2025, to stockholders of record at the close of business on March 14, 2025.
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 $1.0 billion at September 30, 2024.
+Added: Our total remaining share repurchase authorization was approximately $948.6 million at March 31, 2025.
Other Sources of Liquidity
4 unchanged sentences
Interest Rates
−Removed: At September 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 September 30, 2024.
+Added: At March 31, 2025, 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 March 31, 2025.
Off-Balance Sheet Arrangements
1 unchanged sentence
However, as is customary in the oil and gas industry, we have various contractual work commitments, some of which are described above under Cash Contractual Obligations.
−Removed: Inflation and Changes in Prices
+Added: Changes in Prices and Costs
Our revenues, the value of our assets and our ability to obtain bank loans or additional capital on attractive terms have been and will continue to be affected by changes in natural gas, NGLs and oil prices and the costs to produce our reserves.
Natural gas, NGLs and oil prices are subject to significant fluctuations that are beyond our ability to control or predict.
−Removed: Certain of our costs and expenses are affected by general inflation and we expect costs for the remainder of 2024 to continue to be a function of supply and demand.
+Added: Certain of our costs and expenses are affected by general inflation and tariffs.
+Added: We expect costs for the remainder of 2025 to continue to be a function of supply and demand.
Forward-Looking Statements
16 unchanged sentences
dollar denominated.
−Removed: We are exposed to market risks related to the volatility of natural gas, NGLs and oil prices.
+Added: These risks have not materially changed and should be read in conjunction with Item 7A Quantitative and Qualitative Disclosures about Market Risk as presented in the Form 10-K.
+Added: We are exposed to market risks related to natural gas, NGLs and oil prices, which are difficult to predict.
We employ various strategies, including the use of commodity derivative instruments, to manage the risks related to these price fluctuations.
3 unchanged sentences
Realized prices are primarily driven by worldwide prices for oil and regional index prices for North American natural gas production.
−Removed: However, natural gas and NGLs prices are becoming global commodities similar to oil.
−Removed: Natural gas and oil prices have been volatile and unpredictable for many years.
+Added: However, natural gas and NGLs prices have become global commodities similar to oil.
Changes in natural gas prices affect us more than changes in oil prices because approximately 64% of our December 31, 2024 proved reserves are natural gas and 1% of proved reserves are oil.
−Removed: In addition, a portion of our NGLs, which are 34% of proved reserves, are also impacted by changes in oil prices.
+Added: In addition, a portion of our NGLs, which are 35% of proved reserves, are also impacted by changes in oil and gas prices.
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 September 30, 2024.
+Added: These risks did not change materially from December 31, 2024 to March 31, 2025.
+Added: We believe NGLs prices are somewhat seasonal, particularly for propane.
+Added: Therefore, the relationship of NGLs prices to NYMEX WTI (or West Texas Intermediate) will vary due to product components, seasonality and geographic supply and demand.
+Added: We sell NGLs in several regional U.S markets, some of which are exported to international markets by other parties.
+Added: If we are not able to sell or store NGLs, we may be required to curtail production or shift our drilling activities to dry gas areas.
+Added: The Appalachian region has finite local demand and infrastructure to accommodate ethane.
+Added: We have agreements where we have contracted to either sell or transport ethane from our Marcellus Shale area.
+Added: We cannot ensure these facilities will remain available.
+Added: If we are not able to sell ethane under at least one of these agreements, we may be required to curtail production or, as we have done in the past, purchase or divert natural gas to blend with our residue gas.
Commodity Price Risk
5 unchanged sentences
We have also entered into natural gas derivative instruments containing a fixed price swap and a sold option (which we refer to as a swaption).
−Removed: At September 30, 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 gain of $207.4 million as of September 30, 2024.
+Added: At March 31, 2025, 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 loss of $108.3 million as of March 31, 2025.
These contracts expire monthly through December 2027.
−Removed: At September 30, 2024, the following commodity derivative contracts were outstanding, excluding our basis swaps which are separately discussed below:
−Removed: Contract Type
−Removed: Volume Hedged
−Removed: Weighted Average Hedge Price
−Removed: Fair Market Value
−Removed: (in thousands)
−Removed: Natural Gas (a)
−Removed: 300,000 Mmbtu/day
−Removed: 416,848 Mmbtu/day
−Removed: Three-way Collars
−Removed: 133,152 Mmbtu/day
−Removed: 400,000 Mmbtu/day
−Removed: Three-way Collars
−Removed: 138,959 Mmbtu/day
−Removed: 100,000 Mmbtu/day
−Removed: 30,000 Mmbtu/day
−Removed: 5,000 bbls/day
−Removed: NGLs (C3-Propane)
−Removed: 7,000 bbls/day
−Removed: 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.
−Removed: The fair value of these swaptions at September 30, 2024 was a net derivative liability of $9,000.
−Removed: We believe NGLs prices are somewhat seasonal, particularly for propane.
−Removed: Therefore, the relationship of NGLs prices to NYMEX WTI (or West Texas Intermediate) will vary due to product components, seasonality and geographic supply and demand.
−Removed: We sell NGLs in several regional and international markets.
−Removed: If we are not able to sell or store NGLs, we may be required to curtail production or shift our drilling activities to dry gas areas.
−Removed: The Appalachian region has limited local demand and infrastructure to accommodate ethane.
−Removed: We have agreements where we have contracted to either sell or transport ethane from our Marcellus Shale area.
−Removed: We cannot ensure that these facilities will remain available.
−Removed: If we are not able to sell ethane under at least one of these agreements, we may be required to curtail production or, as we have done in the past, purchase or divert natural gas to blend with our rich residue gas.
+Added: For additional information over our derivative contracts, see Note 7 to the accompanying consolidated financial statements.
Other Commodity Risk
5 unchanged sentences
Basis swap agreements effectively fix the basis adjustments.
−Removed: 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.
+Added: The fair value of the natural gas basis swaps was a gain of $11.7 million at March 31, 2025, 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 September 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 March 31, 2025.
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 September 30, 2024, our derivative counterparties include fifteen financial institutions, of which ten are secured lenders in our bank credit facility.
+Added: At March 31, 2025, our derivative counterparties include fourteen 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 September 30, 2024, we had total debt of approximately $1.7 billion.
+Added: At March 31, 2025, 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 September 30, 2024.
+Added: however, we did not have any borrowings outstanding as of March 31, 2025.
CONTROLS A ND PROCEDURES
2 unchanged sentences
Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC.
−Removed: Based upon the evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective as of September 30, 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 March 31, 2025 at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
−Removed: There was no change in our system of internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the three months ended September 30, 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 March 31, 2025 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.