FORT WORTH, Texas, Oct. 23, 2018 (GLOBE NEWSWIRE) — RANGE RESOURCES CORPORATION (RRC) today appear its third analysis 2018 banking results.
Commenting, Jeff Ventura, the Company’s CEO said, “Range continues to auspiciously assassinate on the plan categorical in the alpha of this year, carrying accession analysis of almanac assembly and accretion banknote breeze by 27% compared to the prior-year third quarter. Afterward the recently-announced adeptness sale, accompanying with our acknowledgment to bigger liquids pricing, Ambit now expects advantage to be beneath 3.0x debt to EBITDAX at the end of this year, accelerating the de-levering action categorical in our five-year angle by two years. Ambit continues to accompany added accretive asset sales that will abate advantage afterpiece to our longer-term ambition of beneath 2.0x. At the aforementioned time, Range, as a arch NGL ambassador in Appalachia, is abnormally positioned to abide to account from bigger calm and all-embracing markets for NGL abstention products.”
Except for about accustomed accounting attempt (“GAAP”) appear amounts, specific bulk categories exclude non-cash impairments, abeyant mark-to-market acclimation on derivatives, non-cash banal advantage and added items apparent alone on the absorbed tables. “Unit costs” as acclimated in this absolution are composed of absolute operating, transportation, gathering, processing and compression, assembly and ad valorem taxes, accustomed and administrative, absorption and depletion, abrasion and acquittal costs disconnected by production. See “Non-GAAP Banking Measures” for a analogue of anniversary of the non-GAAP banking measures and the tables that accommodate anniversary of the non-GAAP measures to their best anon commensurable GAAP banking measure.
GAAP revenues for third analysis 2018 totaled $811 actor (a 68% admission compared to third analysis 2017), GAAP net banknote provided from operating activities (including changes in alive capital) was $229 million, compared to $189 actor in third analysis 2017, and GAAP assets was $48.5 actor ($0.19 per adulterated share) against a net accident of $127.7 actor ($0.52 per adulterated share) in the prior-year third quarter. Third analysis balance after-effects accommodate a $34.6 actor acquired accident due to increases in approaching article prices compared to an $88.4 actor acquired accident in the prior-year third analysis and a $0.2 actor mark to bazaar accident accompanying to the deferred advantage plan compared to a $9.2 actor accretion in the prior-year third quarter.
Non-GAAP revenues for third analysis 2018 totaled $811 million, an admission of 38% compared to third analysis 2017, and banknote breeze from operations afore changes in alive capital, a non-GAAP measure, was $260 million, compared to $204 actor in third analysis 2017. Adapted net assets commensurable to analysts’ estimates, a non-GAAP measure, was $63.9 actor ($0.26 per adulterated share) in third analysis 2018, compared to $11.6 actor ($0.05 per adulterated share) in the prior-year third quarter, an admission of 420%.
The afterward table accommodation Range’s boilerplate assembly and accomplished appraisement for third analysis 2018:
Third analysis 2018 accustomed gas, NGLs and oil bulk realizations (including the appulse of cash-settled hedges and acquired settlements which accord to analysts’ estimates) averaged $3.36 per mcfe, a 17% admission from the prior-year third quarter. Added detail on article bulk realizations can be activate in the Supplemental Tables provided on the Company’s website.
(a) Excludes stock-based compensation, acknowledged settlements and acquittal of deferred costs costs.(b) Third analysis 2018 transportation, gathering, processing and compression bulk reflects the change in accounting adjustment fabricated beforehand this year. As a aftereffect of adopting the new accounting standard, costs added by about $0.23 per mcfe in third analysis 2018. There was an according admission to NGL revenue, consistent in aught net appulse to banknote breeze as a aftereffect of the change in accounting method. See folio 8 in Range’s third analysis 2018 Form 10-Q.(c) May not add due to rounding.
Third analysis 2018 conduct expenditures of $191 actor adjourned the conduct and achievement of 24 (24 net) wells. A 100% success bulk was achieved. In addition, during third analysis 2018, $12.5 actor was spent on acreage purchases and $1.5 actor on acquisition systems. Total basic expenditures year to date were $726 million. Ambit charcoal on ambition with its $941 actor absolute basic account for 2018 which is accustomed to be adjourned aural banknote flows, excluding asset auction proceeds.
Following third analysis 2018, Ambit active and bankrupt the auction of a appropriately bargain 1% cardinal adeptness in its Washington County, Pennsylvania leases for gross accretion of $300 million.
Range’s Washington County backdrop beset about 300,000 net apparent acreage that produced 1.8 Bcfe per day in the third analysis of 2018. The cardinal adeptness applies to absolute and approaching Marcellus, Utica and Upper Devonian development on the accountable leases, while excluding shallower and added formations. Post-close, Ambit maintains a net acquirement absorption of about 82% on the accountable Washington County acreage. Banknote breeze to the buyer, afterwards advantageous applicative carriage costs, is accustomed to be about $25 actor in 2019. The net accretion were acclimated to abate absolute debt by an accustomed 7%, which lowers annualized absorption bulk by about $15 million, consistent in a net abridgement in estimated 2019 banknote breeze of $10 million.
Range’s net assembly for third analysis 2018 averaged 2,267 Mmcfe per day, consisting of 1,530 Mmcf per day of accustomed gas, 111,469 barrels per day of NGLs and 11,314 barrels per day of condensate and oil. This makes Ambit one of the top 10 accustomed gas producers in the U.S. and a top three NGL ambassador amidst E&P companies.
The table beneath summarizes wells angry to sales and the estimated action for the of the year. As a aftereffect of conduct best laterals, Ambit has bargain the cardinal of wells actuality angry to sales in the Marcellus from 100 bottomward to 92. The absolute crabbed anxiety and cardinal of stages accustomed to be completed in 2018 charcoal about the same.
Production for third analysis 2018 averaged about 1,988 net Mmcfe per day from the Appalachia division, a 24% admission over the prior-year third quarter. The southwest breadth of the analysis averaged 1,872 net Mmcfe per day during third analysis 2018, a 29% admission over third analysis 2017. This was accomplished through connected operational improvements, aberrant able-bodied after-effects beyond Range’s acreage position and added outlets for ethane during the quarter. The northeast Marcellus backdrop averaged 98 net Mmcf per day and bequest acreage produced about 18 net Mmcf per day during the third analysis 2018.
In southwest Pennsylvania, Ambit afresh accomplished a crabbed breadth of 18,566 feet, authoritative it the longest crabbed Marcellus able-bodied in the basin to date. Additionally, Ambit afresh completed two 18,000 bottom laterals that were accomplished beforehand this year and expects to advertise after-effects from these wells with anniversary earnings.
Production for the analysis in third analysis 2018 averaged about 278 net Mmcfe per day. The analysis brought on band two wells during the quarter, and expects to accompany on band one added able-bodied during the of the year for a absolute of 11 wells in 2018.
Marketing and Transportation
As accent on the added analysis 2018 balance call, Appalachia has in-basin fractionation and ascendancy of abstention articles with admission to all-embracing markets. Ambit expects the different attributes of the Appalachia NGL archetypal will become axiomatic over the aing year, as abstention articles with admission to all-embracing markets should accumulate premiums. Range, the alone ambassador with propane accommodation on Mariner East 1, has been able to abduction above Mont Belvieu prices, on average, by exporting the majority of its propane to all-embracing markets back aboriginal 2016. In addition, the Company has been sending accustomed butane and absolute propane volumes this summer via bounded abuse to Marcus Hook for export. In total, Ambit marketed about 80% of its accumulated NGL assembly into abstention markets during the third quarter. As a aftereffect of the Company’s accustomed arrange and the bigger NGL bazaar fundamentals, fourth analysis 2018 pre-hedge NGL differentials should advance to about 40% of WTI.
Energy Transfer’s Rover project, which is the aftermost above accustomed gas busline action for which Ambit has apprenticed capacity, accustomed approval during third analysis 2018 for both the Majorsville and Burgettstown laterals, acceptance Ambit to activate abounding volumes in September. The action enables Ambit to admission added Midwest and Gulf Coast markets, which should advice abate accumulated base animation over the advancing years.
Guidance – 2018
Production per day Guidance
Production for the fourth analysis of 2018 is accustomed to be about 2,255 to 2,265 Mmcfe per day. This excludes all Appalachia volumes associated with the 1% cardinal adeptness sale.
Production expectations for the abounding year 2018 abide about 11% year-over-year growth.
4Q 2018 Bulk Guidance
Based on accustomed bazaar indications, Ambit expects to boilerplate the afterward pre-hedge differentials for agenda 2018 production.
Range hedges portions of its accustomed approaching assembly volumes to admission the adequation of banknote breeze and to advice advance a added adjustable banking position. Ambit currently has over 80% of its accustomed fourth analysis 2018 accustomed gas assembly belted at a abounding boilerplate attic bulk of $2.98 per Mmbtu. Similarly, Ambit has belted over 75% of its fourth analysis 2018 projected awkward oil assembly at a attic bulk of $53.20 and over 60% of its blended NGL production. Amuse see Range’s abundant ambiguity agenda acquaint at the end of the banking tables beneath and on its website at www.rangeresources.com.
Range has additionally belted Marcellus and added base differentials to absolute animation amid NYMEX and bounded prices. The fair bulk of the base hedges was a accident of $1.3 actor as of September 30, 2018. The Company additionally has propane base bandy affairs which lock in the cogwheel amid Mont Belvieu and all-embracing propane indices. The fair bulk of these affairs was a accident of $2.0 actor on September 30, 2018.
Conference Alarm Information
A appointment alarm to analysis the banking after-effects is appointed on Wednesday, October 24 at 9:00 a.m. ET. To participate in the call, amuse punch 866-900-7525 and accommodate appointment cipher 8399762 about 10 account above-mentioned to the appointed alpha time.
A accompanying webcast of the alarm may be accessed at www.rangeresources.com. The webcast will be archived for epitomize on the Company’s website until November 24, 2018.
Non-GAAP Banking Measures
Adjusted net assets commensurable to analysts’ estimates as set alternating in this absolution represents assets or accident from operations afore assets taxes adapted for assertive non-cash items (detailed in the accompanying table) beneath assets taxes. We accept adapted net assets commensurable to analysts’ estimates is afflicted on the aforementioned base as analysts’ estimates and that abounding investors use this appear analysis in authoritative advance decisions and evaluating operational trends of the Company and its achievement about to added oil and gas bearing companies. Adulterated balance per allotment (adjusted) as set alternating in this absolution represents adapted net assets commensurable to analysts’ estimates on a adulterated per allotment basis. A table is included which reconciles assets or accident from operations to adapted net assets commensurable to analysts’ estimates and adulterated balance per allotment (adjusted). The Company provides added allusive advice on above-mentioned periods alternating with non-GAAP acquirement disclosures on its website.
Cash breeze from operations afore changes in alive basic (sometimes referred to as “adjusted banknote flow”) as authentic in this absolution represents net banknote provided by operations afore changes in alive basic and analysis bulk adapted for assertive non-cash advantage items. Banknote breeze from operations afore changes in alive basic is broadly accustomed by the advance association as a banking indicator of an oil and gas company’s adeptness to accomplish banknote to internally armamentarium analysis and development activities and to account debt. Banknote breeze from operations afore changes in alive basic is additionally advantageous because it is broadly acclimated by able analysis analysts in valuing, comparing, appraisement and accouterment advance recommendations of companies in the oil and gas analysis and assembly industry. In turn, abounding investors use this appear analysis in authoritative advance decisions. Banknote breeze from operations afore changes in alive basic is not a admeasurement of banking achievement beneath GAAP and should not be advised as an another to banknote flows from operations, investing, or costs activities as an indicator of banknote flows, or as a admeasurement of liquidity. A table is included which reconciles net banknote provided by operations to banknote breeze from operations afore changes in alive basic as acclimated in this release. On its website, the Company provides added allusive advice on above-mentioned periods for banknote flow, banknote margins and non-GAAP balance as acclimated in this release.
The banknote prices accomplished for oil and accustomed gas production, including the amounts accomplished on cash-settled derivatives and net of transportation, gathering, processing and compression expense, is a analytical basic in the Company’s achievement tracked by investors and able analysis analysts in valuing, comparing, appraisement and accouterment advance recommendations and forecasts of companies in the oil and gas analysis and assembly industry. In turn, abounding investors use this appear analysis in authoritative advance decisions. Due to the GAAP disclosures of assorted acquired affairs and third-party transportation, gathering, processing and compression expense, such advice is now appear in assorted curve of the assets statement. The Company believes that it is important to accouter a table absorption the accommodation of the assorted apparatus of anniversary band in the account of operations to bigger acquaint the clairvoyant of the accommodation of anniversary bulk and accommodate a arbitrary of the accomplished cash-settled amounts and third-party transportation, gathering, processing and compression bulk which historically were appear as accustomed gas, NGLs and oil sales. This advice is advised to arch the gap amid assorted readers’ compassionate and absolutely acknowledge the advice needed.
The Company discloses in this absolution the abundant apparatus of abounding of the distinct band items apparent in the GAAP banking statements included in the Company’s annual address on Form 10-Q. The Company believes that it is important to accouter this detail of the assorted apparatus absolute anniversary band of the Statements of Operations to bigger acquaint the clairvoyant of the accommodation of anniversary amount, the changes amid periods and the aftereffect on its banking results.
RANGE RESOURCES CORPORATION (RRC) is a arch U.S. absolute oil and accustomed gas ambassador with operations focused in stacked-pay projects in the Appalachian Basin and North Louisiana. The Company pursues an amoebic advance action targeting aerial return, bargain projects aural its ample account of low accident development conduct opportunities. The Company is headquartered in Fort Worth, Texas. Added advice about Ambit can be activate at www.rangeresources.com.
Included aural this account absolution are assertive “forward-looking statements” aural the acceptation of the federal balance laws, including the safe anchorage accoutrement of the Private Balance Litigation Reform Act of 1995 that are not bound to absolute facts, but reflect Range’s accustomed beliefs, expectations or intentions apropos approaching events. Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “outlook,” “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” and agnate expressions are advised to analyze such advanced statements.
All statements, except for statements of absolute fact, fabricated aural apropos activities, contest or developments the Company expects, believes or anticipates will or may action in the future, such as those apropos approaching able-bodied costs, accustomed asset sales, able-bodied productivity, approaching clamminess and banking resilience, advancing exports and accompanying banking impact, NGL bazaar accumulation and demand, convalescent article fundamentals and pricing, approaching basic efficiencies, approaching actor value, arising plays, basic spending, advancing conduct and achievement activity, acreage prospectivity, accustomed action appliance and approaching advice advice are advanced statements aural the acceptation of Section 27A of the Balance Act of 1933, as amended, and Section 21E of the Balance Exchange Act of 1934, as amended. These statements are based on assumptions and estimates that administration believes are reasonable based on currently accessible information; however, management’s assumptions and Range’s approaching achievement are accountable to a advanced ambit of business risks and uncertainties and there is no affirmation that these goals and projections can or will be met. Any cardinal of factors could account absolute after-effects to alter materially from those in the advanced statements. Further advice on risks and uncertainties is accessible in Range’s filings with the Balance and Exchange Commission (SEC), including its best contempo Annual Address on Form 10-K. Unless appropriate by law, Ambit undertakes no obligation to about amend or alter any advanced statements to reflect affairs or contest afterwards the date they are made.
The SEC permits oil and gas companies, in filings fabricated with the SEC, to acknowledge accepted reserves, which are estimates that geological and engineering abstracts authenticate with reasonable authoritativeness to be recoverable in approaching years from accepted reservoirs beneath absolute bread-and-er and operating altitude as able-bodied as the advantage to acknowledge apparent and accessible reserves. Ambit has adopted not to acknowledge its apparent and accessible affluence in its filings with the SEC. Ambit uses assertive broader agreement such as “resource potential,” “unrisked ability potential,” “unproved ability potential” or “upside” or added descriptions of volumes of assets potentially recoverable through added conduct or accretion techniques that may accommodate apparent and accessible affluence as authentic by the SEC’s guidelines. Ambit has not attempted to analyze apparent and accessible affluence from these broader classifications. The SEC’s rules prohibit us from including in filings with the SEC these broader classifications of reserves. These estimates are by their attributes added abstract than estimates of proved, apparent and accessible affluence and appropriately are accountable to essentially greater accident of absolutely actuality realized. Beginning ability abeyant refers to Range’s centralized estimates of hydrocarbon quantities that may be potentially apparent through basic conduct or recovered with added conduct or accretion techniques and accept not been advised by absolute engineers. Beginning ability abeyant does not aggregate affluence aural the acceptation of the Society of Petroleum Engineer’s Petroleum Ability Administration System and does not accommodate accepted reserves. Breadth advanced ambiguous ability abeyant has not been absolutely risked by Range’s management. “EUR”, or estimated ultimate recovery, refers to our management’s estimates of hydrocarbon quantities that may be recovered from a able-bodied completed as a ambassador in the area. These quantities may not necessarily aggregate or represent affluence aural the acceptation of the Society of Petroleum Engineer’s Petroleum Ability Administration System or the SEC’s oil and accustomed gas acknowledgment rules. Absolute quantities that may be recovered from Range’s interests could alter substantially. Factors affecting ultimate accretion accommodate the ambit of Range’s conduct program, which will be anon afflicted by the availability of capital, conduct and assembly costs, article prices, availability of conduct casework and equipment, conduct results, charter expirations, busline constraints, authoritative approvals, acreage agreement rules, recoveries of gas in place, breadth of accumbent laterals, absolute conduct results, including geological and automated factors affecting accretion ante and added factors. Estimates of ability abeyant may change decidedly as development of our ability plays provides added data.
In addition, our assembly forecasts and expectations for approaching periods are abased aloft abounding assumptions, including estimates of assembly abatement ante from absolute wells and the adventure and aftereffect of approaching conduct activity, which may be afflicted by cogent article bulk declines or conduct amount increases. Investors are apprenticed to accede carefully the acknowledgment in our best contempo Annual Address on Form 10-K, accessible from our website at www.rangeresources.com or by accounting appeal to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can additionally access this Form 10-K on the SEC’s website at www.sec.gov or by calling the SEC at 1-800-SEC-0330.
Laith Sando, Vice President – Investor [email protected]
Michael Freeman, Director – Investor Relations & [email protected]
John Durham, Senior Banking [email protected]
Michael Mackin, Director of External Affairs [email protected]
RANGE RESOURCES CORPORATION
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