What changed in RANGE RESOURCES CORP's 10-K — 2023 vs 2024
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Paragraph-level year-over-year comparison of RANGE RESOURCES CORP's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.
+287 added−506 removedSource: 10-K (2025-02-25) vs 10-K (2024-02-21)
Top changes in RANGE RESOURCES CORP's 2024 10-K
287 paragraphs added · 506 removed · 81 edited across 7 sections
- Item 7. Management's Discussion & Analysis+187 / −159
- Item 6. [Reserved]+1 / −244
- Item 1A. Risk Factors+84 / −90 · 70 edited
- Item 5. Market for Registrant's Common Equity+10 / −7 · 6 edited
- Item 4. Mine Safety Disclosures+2 / −3 · 2 edited
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
70 edited+14 added−20 removed130 unchanged
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
70 edited+14 added−20 removed130 unchanged
2023 filing
2024 filing
Biggest changeThese statutes include the federal Endangered Species Act of 1973 ("ESA"), the Migratory Bird Treaty Act, the CWA, CERCLA and similar state programs. The United States Fish and Wildlife Service ("FWS") may designate critical habitat and suitable habitat areas that it believes are necessary for survival of threatened or endangered species.
Biggest changeFor example, the United States Fish and Wildlife Service as well as state agencies may designate critical habitat and suitable habitat areas that it believes are necessary for survival of threatened or endangered species. A critical habitat or suitable habitat designation could result in material restrictions to land use and delay, restrict or even prevent our operations.
In addition, derivative transactions may expose us to the risk of financial loss in certain circumstances, including instances in which: • our production is less than expected; • the counterparties to our futures contracts fail to perform on their contract obligations; or • an event materially impacts natural gas, NGLs or oil prices or the relationship between the hedged price index and the natural gas or oil sales prices we receive.
In addition, derivative transactions may expose us to the risk of financial loss in certain circumstances, including instances in which: • our production is less than expected; • the counterparties to our futures contracts fail to perform on their contract obligations; or • an event materially impacts natural gas, NGLs or oil prices or the relationship between the hedged price index and the natural gas, NGLs or oil sales prices we receive.
Risks that we face while completing horizontal wells include, but are not limited to, the following: • the ability to fracture stimulate the planned number of stages; • the ability to run tools the entire length of the wellbore during completion operations; and • the ability to successfully clean out the wellbore after completion of the final fracture stimulation stage.
Risks that we face while completing horizontal wells include, but are not limited to, the following: • the ability to fracture and stimulate the planned number of stages; • the ability to run tools the entire length of the wellbore during completion operations; and • the ability to successfully clean out the wellbore after completion of the final fracture stimulation stage.
We are more heavily exposed to the extensive and evolving regulatory environment in Pennsylvania which may lead to additional costs, delays or interruptions of construction, development and production from our wells. See also The natural gas industry is subject to extensive regulation below.
We are more heavily exposed to the extensive and evolving regulatory environment in Pennsylvania which may lead to additional costs, delays or interruptions of construction, development and production from our wells. See also, below, The natural gas industry is subject to extensive regulation .
Fuel conservation measures, alternative fuel requirements, governmental requirements for renewable energy resources, increasing consumer demand for alternatives to oil and natural gas, technological advances in fuel economy and energy generation or storage devices (such as battery technology) may in the future, reduce the demand for and, in turn the prices of, natural gas, NGLs and oil that we sell.
Fuel conservation measures, alternative fuel requirements, governmental requirements for renewable energy resources, increasing consumer demand for alternatives to oil and natural gas, technological advances in fuel economy and energy generation or storage devices (such as battery technology) may in the future reduce the demand for, and in turn the prices of, the natural gas, NGLs and oil that we sell.
None of our senior management team nor any of the other officers are subject to an employment agreement and therefore retaining them as employees is less certain than if they were parties to an employment agreement. The unanticipated loss of one or more of these individuals could have a material adverse effect on our business.
None of our senior management team nor any of our other officers are subject to an employment agreement and therefore retaining them as employees is less certain than if they were parties to an employment agreement. The unanticipated loss of one or more of these individuals could have a material adverse effect on our business.
In order to align interests and encourage ownership, we issue restricted stock and performance share units to our employees and directors as part of their compensation. In addition, we may issue additional shares of common stock, additional senior notes or other securities or debt convertible into common stock to extend maturities or fund capital expenditures, including acquisitions.
In order to align interests and encourage ownership, we issue restricted stock, restricted stock units and performance share units to our employees and directors as part of their compensation. In addition, we may issue additional shares of common stock, additional senior notes or other securities or debt convertible into common stock to extend maturities or fund capital expenditures, including acquisitions.
If any of these security breaches were to occur, they could lead to harm to our employees or losses of sensitive information, losses of critical infrastructure or capabilities essential to our operations and could have a material adverse effect on our reputation, financial position, and results of operations or cash flows.
If any of these security breaches were to occur, they could lead to harm to our employees or losses of sensitive information, losses of critical infrastructure or capabilities essential to our operations and could have a material adverse effect on our reputation, financial position, results of operations or cash flows.
Reserve estimation is a subjective process that involves estimating volumes to be recovered from underground accumulations of natural gas and oil that cannot be directly measured. As a result, different petroleum engineers, each using industry-accepted geologic and engineering practices and scientific methods, may calculate different estimates of reserves and future net cash flows based on the same available data.
Reserve estimation is a subjective process that involves estimating volumes to be recovered from underground accumulations of natural gas, NGLs and oil that cannot be directly measured. As a result, different petroleum engineers, each using industry-accepted geologic and engineering practices and scientific methods, may calculate different estimates of reserves and future net cash flows based on the same available data.
As a natural gas and oil producer, we face various security threats, including: • cybersecurity threats to gain unauthorized access to sensitive information or to render data or computer systems unusable; • threats to the security or operations at our physical facilities and infrastructure or third-party facilities and infrastructure, such as processing plants and pipelines; or • threats from terrorist acts or other geopolitical events.
As a natural gas, NGLs and oil producer, we face various security threats, including: • cybersecurity threats to gain unauthorized access to sensitive information or to render data or computer systems unusable; • threats to the security or operations at our physical facilities and infrastructure or third-party facilities and infrastructure, such as processing plants and pipelines; or • threats from terrorist acts or other geopolitical events.
These events could damage our reputation and lead to financial losses from unauthorized disbursement of funds, remedial actions, loss of business and/or potential liability. We may be unable to anticipate, detect or prevent future attacks, particularly as methodologies utilized by attackers change frequently and are not 32 recognized until launched.
These events could damage our reputation and lead to financial losses from unauthorized disbursement of funds, remedial actions, loss of business and/or potential liability. We may be unable to anticipate, detect or prevent future attacks, particularly as methodologies utilized by attackers change frequently and are not recognized until launched.
As part of that debate, there is also general belief that increased levels of GHGs, including carbon dioxide and methane, have contributed to and continue to contribute to climate change which has led to numerous regulatory, political, litigation and financial risks associated with the production of fossil fuels and emissions of GHGs. Our operations result in GHGs.
As part of that debate, there is general belief that increased levels of GHGs, including carbon dioxide and methane, have contributed to and continue to contribute to climate change which has led to numerous regulatory, political, litigation and financial risks associated with the production of fossil fuels and emissions of GHGs. Our operations result in GHGs.
This may also depend upon political outcomes as there have been certain candidates seeking election to various state and federal offices or their appointees, who have made pledges to restrict GHG emissions, ban hydraulic fracturing of oil and natural gas wells and ban new leases for production of oil and natural gas on federal lands.
This may also depend upon political outcomes as there have been certain candidates seeking election to various state and federal offices or their appointees, who have made pledges to restrict GHG emissions, ban hydraulic fracturing of oil and natural gas wells and ban new leases for production of natural gas, NGLs and oil on federal lands.
To the extent the 1% excise tax applies to repurchases of shares under our common stock repurchases program, the number of shares we repurchase and our cash flow may be affected. In 2012, Pennsylvania enacted legislation creating a tax referred to as the natural gas impact fee applicable to production in Pennsylvania, where all of our acreage is located.
To the extent the 1% excise tax applies to repurchases of shares under our common stock repurchases program, the number of shares we repurchase and our cash flow may be affected. In 2012, Pennsylvania enacted legislation creating a tax referred to as the natural gas impact fee applicable to production in Pennsylvania, where essentially all of our acreage is located.
If any of 26 these third-party pipelines or other facilities become partially or fully unavailable to transport or process our product, or if the natural gas quality specifications for a natural gas pipeline or facility change so as to restrict our ability to transport natural gas on those pipelines or facilities, our revenues could be adversely affected.
If any of these third-party pipelines or other facilities become partially or fully unavailable to transport or process our product, or if the natural gas quality specifications for a natural gas pipeline or facility change so as to restrict our ability to transport natural gas on those pipelines or facilities, our revenues could be adversely affected.
A number of advocacy groups, both domestically and internationally, have campaigned for governmental and private action to promote change at public companies related to ESG matters, including through investment and voting practices of investment advisors, public pension funds, universities and other members of the investing community.
A number of advocacy groups, both domestically and 23 internationally, have campaigned for governmental and private action to promote change at public companies related to ESG matters, including through investment and voting practices of investment advisors, public pension funds, universities and other members of the investing community.
The cost to settle legal proceedings (asserted or unasserted) or satisfy any resulting judgment against us in such proceedings could result in a substantial liability or the loss of interests, which could materially and adversely impact our cash flows, operating results and financial condition.
The cost to settle legal proceedings (asserted or unasserted) or satisfy any resulting judgment against 25 us in such proceedings could result in a substantial liability or the loss of interests, which could materially and adversely impact our cash flows, operating results and financial condition.
We are also exposed to some credit risk related to our bank credit facility to the extent that one or more of our lenders experiences liquidity problems and is unable to provide necessary funding to us under our existing revolving line of credit.
We are also exposed to some credit risk 17 related to our bank credit facility to the extent that one or more of our lenders experiences liquidity problems and is unable to provide necessary funding to us under our existing revolving line of credit.
Estimates of proved reserves depend on many assumptions relating to current and future economic 29 conditions and commodity prices as well as the projected productivity of our wells and infrastructure to gather, process, store and/or transport our products to market.
Estimates of proved reserves depend on many assumptions relating to current and future economic conditions and commodity prices as well as the projected productivity of our wells and infrastructure to gather, process, store and/or transport our products to market.
Approval from one or more local governmental bodies, some following a public hearing, may be required before commencing construction of our facilities which can result in delay, increased expense or in some cases, prevention of development.
Approval from one or more local governmental bodies, some following a public hearing, may be required before commencing construction of facilities which can result in delay, increased expense or, in some cases, prevention of development.
Matters subject to laws and regulations affecting our business include, but are not limited to: the amount and types of substances and material that may be released into the environment, including GHGs; responding to unexpected releases of regulated substances or materials to the environment; the sourcing and disposal of water used in the drilling and completions process; permits, performance rules and reporting obligations concerning drilling, completion and production operations; threatened or endangered species and waterway protection efforts; and climate related initiatives.
Matters subject to laws and regulations affecting our business include, but are not limited to: the amount and types of substances and material that may be released into the environment, including GHGs; responding to unexpected releases of regulated substances or materials to the environment; the sourcing, transport and disposal of water used in the drilling and completions process; permits, 21 performance rules and reporting obligations concerning drilling, completion and production operations; threatened or endangered species and waterway protection efforts; and climate related initiatives.
Continued hostilities in areas around the world and the occurrence or threat of terrorist attacks in the United States or other countries could adversely affect the global economy in unpredictable ways, including the disruption of energy supplies and markets, increased volatility in commodity prices or the possibility that the infrastructure on which we rely could be a direct target or an indirect casualty of an act of terrorism and, in turn, could materially and adversely affect our business and results of operations.
Continued hostilities in areas around the world and the occurrence or threat of terrorist attacks in the United States, other countries or international waters could adversely affect the global economy in unpredictable ways, including the disruption of energy supplies and markets, increased volatility in commodity prices or the possibility that the infrastructure on which we rely could be a direct target or an indirect casualty of an act of terrorism and, in turn, could materially and adversely affect our business and results of operations.
There is no way to conclusively know in advance of drilling and testing whether any particular prospect will yield natural gas, NGLs or oil in commercially viable quantities.
There is no way to conclusively know in advance of drilling and testing whether any particular prospect will yield natural gas, NGLs or oil in 18 commercially viable quantities.
Additionally, local governments in Pennsylvania are authorized to adopt and implement ordinances and impose certain restrictions regarding siting of our well sites, tank pads and other related facilities.
Additionally, local governments in Pennsylvania are authorized to adopt and implement ordinances and impose certain restrictions regarding siting of well sites, tank pads and other related facilities.
If our access to capital were limited as a result of various factors, which could include a decrease in revenues due to lower natural gas, NGLs and oil prices or decreased production or deterioration of the credit and capital markets, we would have a reduced ability to fund our operations and replace our reserves resulting in stress on our financial flexibility.
If our access to capital were limited as a result of various factors, which could include a decrease in revenues due to lower natural gas, NGLs and oil prices or decreased production or deterioration of the credit and capital markets, we would have a reduced ability to fund our operations and replace our reserves resulting in reduced financial flexibility.
Liquidity, asset quality, cost structure, product mix (natural gas, NGLs and crude oil) and projected commodity pricing levels are also considered by the rating agencies.
Liquidity, asset quality, cost structure, product mix (natural gas, NGLs and oil) and projected commodity pricing levels are also considered by the rating agencies.
A total shut-in of production could severely affect us due to a lack of cash flow, and if a substantial portion of the production volume is hedged at lower than market prices, our obligation to the counterparty under those financial hedges would have to be paid from borrowings thus further adversely affecting our financial condition.
A total shut-in of production could severely affect us due to a lack of cash flow, and if a substantial portion of the production volume is hedged at lower than market prices, our obligation to the counterparty under those financial hedges might have to be paid from borrowings thus further adversely affecting our financial condition.
Moreover, new initiatives or regulations could include restrictions on our ability to conduct certain operations such as hydraulic fracturing or disposal of substances generated by our operations, including, but not limited to, produced water, drilling fluids and other wastes associated with our operations or propose new setback distances.
Moreover, new initiatives or regulations could propose new setback distances or further restrictions on our ability to conduct certain operations such as hydraulic fracturing or disposal of substances generated by our operations, including, but not limited to, produced water, drilling fluids and other wastes associated with our operations.
The impact of 30 changing demand for oil and natural gas services and products may have a material adverse effect on our business, financial condition, results of operations and cash flows. Legal, tax and regulatory risks U.S. or state tax legislation may adversely affect our business, results of operations, financial condition and cash flow .
The impact of changing demand for natural gas, NGLs and oil services and products may have a material adverse effect on our business, financial condition, results of operations and cash flows. Legal, tax and regulatory risks U.S. or state tax legislation may adversely affect our business, results of operations, financial condition and cash flow .
Risks related to the industry in which we operate The natural gas industry is subject to extensive regulation . Natural gas, NGLs, condensate and other hydrocarbons, as well as our operations to produce these products, are subject to extensive laws, regulations, and ordinances at the federal, state and local level.
Risks related to the industry in which we operate The natural gas industry is subject to extensive regulation . Natural gas, NGLs, oil and other hydrocarbons, as well as our operations to produce these products, are subject to extensive laws, regulations, and ordinances at the federal, state and local level.
A cyberattack on a vendor or a service provider could result in supply chain disruptions, which could delay or halt development projects. A cyberattack on our accounting or human resources systems could expose us to liability if personal information is obtained.
A cyberattack on a vendor or a service provider could result in supply chain disruptions, which could delay or halt development projects. A cyberattack on our accounting or human resources systems could expose us to liability if confidential and/or personal information is obtained.
Furthermore, where we choose not to engage in derivative transactions in the future, we may be more adversely affected by decreases in natural gas, NGLs or oil prices than our competitors who utilize derivative transactions.
Furthermore, if we choose not to engage in derivative transactions in the future, we may be more adversely affected by decreases in natural gas, NGLs or oil prices than our competitors who utilize derivative transactions.
Historically, we have funded our capital expenditures through a combination of cash flow from operations, our bank credit facility and debt and equity issuances. We have also engaged in asset monetization transactions.
Historically, we have funded our capital expenditures through a combination of cash flow from operations and our bank credit facility and, in limited circumstances, debt and equity issuances. We have also engaged in asset monetization transactions.
The lack of available capacity on these systems and facilities could result in the shut-in of producing wells or the delay or discontinuance of development plans for properties. See also above Our producing properties are concentrated in the Pennsylvania portion of the Appalachian Basin, making us vulnerable to risks associated with operating in one geographic and political region.
The lack of available capacity on these systems and facilities could result in the shut-in of producing wells or the delay or discontinuance of development plans for properties. See also above Our producing properties are concentrated in Pennsylvania, making us vulnerable to risks associated with operating in one geographic and political region.
Such activist efforts could result in the following: • delay or denial of drilling permits; • restrictions on or prevention of installation or operation of production, gathering or processing facilities; • restrictions on or prevention of the use of certain operating practices, such as hydraulic fracturing, or the disposal of related materials, such as hydraulic fracturing fluids and produced water; • additional regulatory burdens; • increased severance and/or other taxes; • cyber-attacks; • legal challenges or lawsuits; • negative publicity about our business or the oil and gas industry in general; • increased costs of doing business; • reduction in demand for our products; and • other adverse effects on our ability to develop our properties and expand production.
Such activist efforts could result in the following: • delay or denial of drilling permits or leases; • restrictions on or prevention of installation or operation of production, gathering or processing facilities; 24 • restrictions on or prevention of the use of certain operating practices, such as hydraulic fracturing, or the disposal of related materials, such as hydraulic fracturing fluids and produced water; • additional regulatory burdens; • increased severance and/or other taxes; • cyberattacks; • legal challenges or lawsuits; • negative publicity about our business or the oil and gas industry in general; • increased costs of doing business; • reduction in demand for our products; and • other adverse effects on our ability to develop our properties and expand production.
The amount available for borrowing under our bank credit facility is subject to a borrowing base, which is determined by our lenders, taking into account our estimated proved reserves and is subject to periodic redeterminations based on pricing models determined by the lenders at such time.
The amount available for borrowing under our bank credit facility is subject to a borrowing base, which is determined by our lenders, taking into account our estimated proved reserves and is subject to periodic re-determinations based on pricing models determined by the lenders at such time.
We are a borrower under fixed rate senior notes and maintain a bank credit facility which had no debt outstanding as of December 31, 2023. Our exploration and development program requires substantial capital resources depending on the level of drilling and the expected cost of services. Existing operations also require ongoing capital expenditures.
We are a borrower under fixed rate senior notes and maintain a bank credit facility which had no debt borrowings as of December 31, 2024. Our exploration and development program requires substantial capital resources depending on the level of drilling and the expected cost of services. Existing operations also require ongoing capital expenditures.
Information concerning our reserves and future net cash flow are estimates and are not certain to match our results . There are numerous uncertainties inherent in estimating quantities of proved natural gas and oil reserves and their values, including many factors beyond our control.
Information concerning our reserves and future net cash flow are estimates and may not match our results . There are numerous uncertainties inherent in estimating quantities of proved natural gas and oil reserves and their values, including many factors beyond our control.
We use a significant amount of water in our hydraulic fracturing operations. Our inability to locate sufficient amounts of water or dispose of or recycle water used in our operations may have a material adverse effect on our financial condition, results of operations and cash flows. Water is an essential component of our drilling and hydraulic fracturing processes.
Our inability to locate sufficient amounts of water or dispose of or recycle water used in our operations may have a material adverse effect on our financial condition, results of operations and cash flows. Water is an essential component of our drilling and hydraulic fracturing processes.
While the final form and substance of these requirements are not yet known and the ultimate scope and impact on our business is uncertain, compliance with the proposed rule may result in increased legal, accounting, operational, technology and financial compliance costs.
While the final form and substance of these rules are not yet known and the ultimate scope and impact on our business is uncertain, compliance with the rules may result in increased legal, accounting, operational, technology and financial compliance costs.
Our ability to drill and develop these locations depends on a number of uncertainties, including natural gas and oil prices, the availability and cost of capital, drilling and production costs, the availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, permits, regulatory and zoning approvals and other factors.
Our ability to drill and develop these locations depends on a number of uncertainties, including natural gas, NGLs and oil prices, the availability and cost of capital, drilling and production costs, the availability of drilling services and equipment, drilling results, obtaining lease agreements and managing lease expirations, transportation constraints, permits, 19 regulatory and zoning approvals and other factors.
These factors include: • most significantly, changes in natural gas, NGLs and oil prices; • variations in drilling, recompletions, acquisitions and operating results; • changes in governmental regulation and/or taxation; • changes in financial estimates by securities analysts; • changes in market valuations of comparable companies; • expectations regarding our capital program, including any determination by our board of directors regarding repurchasing stock or paying dividends; • changes in key personnel; or • future sales of additional stock and changes in our capital structure.
These factors include: • most significantly, changes in natural gas, NGLs and oil prices; • global economic conditions; • fluctuations in the broader equity market; • variations in drilling, recompletions, acquisitions and operating results; • changes in governmental regulation and/or taxation; • changes in financial estimates by securities analysts; • changes in market valuations of comparable companies; • expectations regarding our capital program, including any determination by our board of directors regarding repurchasing stock or paying dividends; • changes in key personnel; or • future sales of additional stock and changes in our capital structure.
On November 1, 2023, the Pennsylvania Commonwealth Court ruled that funds generated through the RGGI are an unconstitutional tax, effectively preventing the state from participating in RGGI. Pennsylvania Governor Josh Shapiro appealed that decision to the state's Supreme Court.
On November 1, 2023, the Pennsylvania Commonwealth Court ruled that funds generated through the RGGI are an unconstitutional tax, 22 effectively preventing the state from participating in RGGI. Pennsylvania Governor Josh Shapiro appealed that decision to the state's Supreme Court and that appeal remains pending.
Financial risks for fossil fuel energy companies, including natural gas producers, are also on the rise as stockholders and bondholders concerned about the potential effects of fossil fuels on climate change may elect to shift some or all of their investments away from fossil fuel based energy.
Financial risks exist for fossil fuel energy companies, including natural gas producers, as in recent years, stockholders and bondholders are concerned about the potential effects of fossil fuels on climate change and may elect to shift some or all of their investments away from fossil fuel based energy.
Increases in our level of debt may: • require us to dedicate a substantial portion of our cash flows from operations to the payment of our indebtedness, reducing the funds available for our operations or return of capital to stockholders; • may make us vulnerable to increases in interest rates; • increase our vulnerability to a downturn in commodity prices or the general economy; • place us at a competitive disadvantage compared to our competitors with lower debt service obligations; • limit our operating flexibility due to financial and other restrictive covenants; and • limit our flexibility to maintain or grow our business and plan for, or react to, changes in our business and the industry in which we operate.
Increases in our level of debt may: • require us to dedicate a substantial portion of our cash flows from operations to the payment of our indebtedness, reducing the funds available for our operations or return of capital to stockholders; • make us vulnerable to increases in interest rates; • increase our vulnerability to a downturn in commodity prices or the general economy; • place us at a competitive disadvantage compared to our competitors with lower debt service obligations; • limit our operating flexibility due to financial and other restrictive covenants; • limit our flexibility to maintain or grow our business and plan for, or react to, changes in our business and the industry in which we operate; and • limit or prevent our ability to pay dividends and other restricted payments (as defined in our bank credit facility).
The issuance of additional shares of common stock results in dilution of the interests of existing stockholders. One way to reverse the effects of dilution is by the acquisition of our stock. On December 31, 2023, our share repurchase program has $1.1 billion remaining.
The issuance of additional shares of common stock results in dilution of the interests of existing stockholders. One way to reverse the effects of dilution is by the acquisition of our stock. On December 31, 2024, our share repurchase program had $1.0 billion remaining.
Our producing properties are concentrated in the Pennsylvania portion of the Appalachian Basin, making us vulnerable to risks associated with operating in one geographic and political region . Essentially 100% of our total estimated proved reserves are located in the Appalachian Basin in Pennsylvania. We are additionally vulnerable to processing and transportation constraints for our products.
Our producing properties are concentrated in Pennsylvania, making us vulnerable to risks associated with operating in one geographic and political region . Essentially 100% of our total estimated proved reserves are located in Pennsylvania. We are additionally vulnerable to processing and transportation constraints for our products in this area.
These factors include: 21 • events that impact domestic and foreign supply of, and demand for, natural gas, NGLs and oil, including impacts from global health pandemics and related concerns; • the continued operation of liquefied natural gas (LNG) facilities to supply foreign markets with natural gas and the ability to transport the product to markets due to shipping restrictions or terrorist threats and attacks; • changes in weather patterns and climate, including natural disasters such as hurricanes and tornadoes; • technological advances affecting energy consumption, storage and energy supply; • the production levels of non-OPEC countries, including production levels in the United States’ shale plays; • general economic conditions worldwide; • the price and availability of, and demand for, alternative and competing forms of energy, such as nuclear, hydroelectric, wind and solar; • the level of drilling, completion and production activities by other companies, and variability therein, in response to market conditions; • the effect of worldwide energy conservation efforts; • the ability of the members of OPEC and other exporting nations to agree to production controls; • military, economic and political conditions in natural gas and oil producing regions; • the cost of exploring for, developing, producing, transporting and marketing natural gas, NGLs and oil; and • domestic (federal, state and local) and foreign governmental regulations and taxation, including further legislation requiring, subsidizing or providing tax benefits for the use of alternative energy sources and fuels.
These factors include: • events that impact domestic and foreign supply of, and demand for, natural gas, NGLs and oil; • the continued operation of export facilities to supply foreign markets with natural gas and natural gas liquids and the ability to transport the product to markets due to shipping restrictions, armed conflict or terrorist threats and attacks; • changes in weather patterns and events, including natural disasters such as hurricanes, floods, wildfires and tornadoes; • technological advances affecting energy consumption, storage and energy supply; • the production levels of non-OPEC countries, including production levels in the United States’ shale plays; • general economic conditions worldwide; • the price and availability of, and demand for, alternative and competing forms of energy, such as nuclear, geothermal, hydroelectric, wind and solar; • the level of drilling, completion and production activities by other companies, and variability therein, in response to market conditions; • the effect of worldwide energy conservation efforts; • the ability of the members of OPEC and other exporting nations to agree to and comply with production controls; • military, economic and political conditions in natural gas and oil producing regions; • the cost of exploring for, developing, producing, transporting and marketing natural gas, NGLs and oil; and • domestic (federal, state and local) and foreign governmental regulations, tariffs and taxation, including further legislation requiring, subsidizing or providing tax benefits for the use of alternative energy sources and fuels.
Natural gas prices are likely to affect us more than oil prices because approximately 64% of our proved reserves were natural gas as of December 31, 2023 and, at times in the past, natural gas prices have been low compared to our costs to produce.
Natural gas prices are likely to affect us the most because approximately 64% of our proved reserves were natural gas as of December 31, 2024 and, at times in the past, natural gas prices have been low compared to our costs to produce.
By continuing to focus on cost control initiatives and actions, which increase our drilling, completion and operating efficiencies, we are able to mitigate some inflationary pressures. 22 Our debt obligations may limit our liquidity and financial flexibility .
By continuing to focus on cost control initiatives and actions, which increase our drilling, completion and operating efficiencies, we may be able to mitigate some inflationary pressures in the future. Our debt obligations may limit our liquidity and financial flexibility .
Furthermore, our drilling and producing operations may be curtailed, delayed, or canceled as a result of a variety of factors, including, but not limited to: • increases in the costs, shortages or delivery delays of drilling rigs, equipment, water for hydraulic fracturing services, labor, or other services; • unexpected operational events and drilling conditions; • reductions in natural gas, NGLs or oil prices; • limitations in the market for natural gas, NGLs or oil; • facility or equipment malfunctions or operator error; • equipment failures or accidents; • loss of title and other title-related issues; • pipe or cement failures and casing collapses; • compliance with, or changes in, permitting, environmental, tax and other governmental requirements; • environmental hazards, such as natural gas leaks, oil spills, pipeline and tank ruptures, and unauthorized discharges of hazardous materials; • lost or damaged oilfield drilling and service tools; • unusual or unexpected geological formations; • loss of drilling fluid circulation; • pressure or irregularities in geological formations; • fires, surface craterings, blowouts or explosions; • uncontrollable flows of oil, natural gas or well fluids; • availability and timely issuance of required governmental permits and licenses; and • civil unrest or protest activities. 24 If any of these factors were to occur, we could lose all or a part of our investment or we could fail to realize the expected benefits, either of which could materially and adversely affect our revenue and profitability.
Furthermore, our drilling and producing operations may be curtailed, delayed, or canceled as a result of a variety of factors, including, but not limited to: • increases in the costs, shortages or delivery delays of drilling rigs, equipment, water for hydraulic fracturing services, labor, or other services; • unexpected operational events and drilling conditions; • reductions in natural gas, NGLs or oil prices; • limitations in the market for natural gas, NGLs or oil; • facility or equipment malfunctions or operator error; • equipment failures or accidents; • loss of title and other title-related issues; • pipe or cement failures and casing collapses; • compliance with, or changes in, permitting, environmental, tax and other governmental requirements; • environmental hazards, such as natural gas leaks, oil spills, pipeline and tank ruptures, and unauthorized discharges of hazardous materials; • lost or damaged oilfield drilling and service tools; • unusual or unexpected geological formations; • loss of drilling fluid circulation; • pressure or irregularities in geological formations; • fires, surface craterings, blowouts or explosions; • uncontrollable flows of oil, natural gas or well fluids; • availability and timely issuance of required governmental permits and licenses; and • civil unrest or protest activities.
Historical declines in natural gas and NGLs commodity prices have adversely affected our business by: • reducing the amount of natural gas, NGLs and oil that we can economically produce; • reducing our revenues, operating income and cash flows; • reducing the amount of cash flows available for capital expenditures; • increasing the cost of obtaining capital, such as equity and debt financings; and • reducing the standardized measure of discounted future net cash flows relating to natural gas, NGLs and oil.
Historical declines in natural gas, NGLs and oil commodity prices have adversely affected our business by: • reducing the amount of natural gas, NGLs and oil that we can economically produce; • reducing our revenues, operating income and cash flows; • reducing the amount of cash flows available for capital expenditures; • increasing the cost of obtaining capital, such as equity and debt financings; and • reducing the standardized measure of discounted future net cash flows relating to natural gas, NGLs and oil. 16 If demand for natural gas, NGLs and oil is reduced, the prices we receive for and our ability to market and produce our natural gas, NGLs and oil may be negatively affected.
In such an event, we might not be able to obtain alternative financing or, if we are able to obtain such financing, we might not be able to obtain it on terms acceptable to us, which would negatively affect our ability to continue our business plan, make capital expenditures and finance our operations. 23 Derivative transactions may limit our potential gains and involve other risks .
In such an event, we might not be able to obtain alternative financing or, if we are able to obtain such financing, we might not be able to obtain it on terms acceptable to us, which would negatively affect our ability to continue our business plan, make capital expenditures and finance our operations.
For example, setting a goal of net zero Scope 1 and 2 GHG emissions by 2025; however, there are a variety of factors that may prevent us from meeting that 28 goal including but not limited to operational malfunctions, availability of equipment and services, engineering results, capital constraints and availability and success of carbon offsetting initiatives.
However, there are a variety of factors that may prevent us from meeting that goal, including but not limited to operational malfunctions, availability of equipment and services, engineering results, capital constraints and availability and success of carbon offsetting initiatives.
Institutional lenders who provide financing to fossil fuel energy companies also have been under pressure from activists and are the subject of lobbying to not provide funding for fossil fuel production.
Institutional lenders who provide financing to fossil fuel energy companies are at times under pressure from activists and are the subject of lobbying to not provide funding for fossil fuel production, although this trend has recently decreased.
Our stock price may be volatile and stockholders may not be able to resell shares of our common stock at or above the price they paid . The price of our common stock fluctuates significantly, which may result in losses for investors. The market price of our common stock has been volatile.
However, this program may be suspended, modified or discontinued by the board of directors at any time. Our stock price may be volatile and stockholders may not be able to resell shares of our common stock at or above the price they paid . The price of our common stock fluctuates significantly, which may result in losses for investors.
If demand for natural gas, NGLs and oil is reduced, the prices we receive for and our ability to market and produce our natural gas, NGLs and oil may be negatively affected. Volatility in natural gas, NGLs and oil markets and the price we receive for our production is largely determined by various factors beyond our control.
Volatility in natural gas, NGLs and oil markets and the price we receive for our production is largely determined by various factors beyond our control.
We may fail to meet expectations of our stockholders or of securities analysts at some time in the future and our stock price could decline as a result. General risk factors Our business could be negatively affected by security threats, including cybersecurity threats and other disruptions .
We may fail to meet expectations of our stockholders or of securities analysts at some time in the future and our stock price could decline as a result.
To manage our exposure to commodity price volatility, we currently, and likely will in the future, enter into derivative arrangements, utilizing commodity derivatives ("hedges") with respect to a portion of our future production. Hedges are generally designed to lock in prices for commodities to limit volatility and increase the predictability of cash flow.
Derivative transactions may limit our potential gains and involve other risks . To manage our exposure to commodity price volatility, we currently, and likely will in the future, enter into derivative arrangements, utilizing commodity derivatives ("hedges") with respect to a portion of our future production.
Currently there are a few states that have elected to ban hydraulic fracturing altogether, including Washington, New York, Maryland, Vermont and Oregon (which temporarily suspended hydraulic fracturing until 2025). Should Pennsylvania or the federal government ban hydraulic fracturing, it would preclude economic development of our Marcellus Shale reserves resulting in severe financial consequences to us.
Currently there are a few states that have elected to ban or severely limit hydraulic fracturing. Should Pennsylvania or the federal government ban hydraulic fracturing, it would preclude economic development of our Marcellus Shale reserves resulting in severe financial consequences to us. We use a significant amount of water in our hydraulic fracturing operations.
Limitation or restrictions on our ability to secure sufficient amounts of water (including limitations from natural causes such as drought) could impact our operations. If we are unable to obtain water to use in our operations from local sources, we may need to obtain it from new sources and transport the water to drilling sites, resulting in increased costs.
Limitation or restrictions on our ability to secure sufficient amounts of water (including limitations from natural causes such as drought) and transport it could impact our operations.
From January 1, 2021 to December 31, 2023, the price of our common stock reported by the New York Stock Exchange ranged from a low of $6.78 per share to a high of $37.88 per share.
The market price of our common stock has been volatile. From January 1, 2022 to December 31, 2024, the price of our common stock reported by the New York Stock Exchange ranged from a low of $16.71 per share to a high of $39.33 per share.
These hedging transactions can limit our potential gains if natural gas, NGLs and oil prices rise above the price established by the hedge.
Hedges are generally designed to lock in future prices for commodities to limit volatility and increase the predictability of cash flow. These hedging transactions can limit our potential gains if natural gas, NGLs and oil prices rise above the price established by the hedge.
Additionally, our insurance is subject to exclusions and limitations. Our insurance does not cover every potential risk associated with our operations, including the potential loss of significant revenues.
Additionally, our insurance is subject to exclusions and limitations. Our insurance does not cover every potential risk associated with our operations, including the potential loss of significant revenues. We can provide no assurance that our insurance coverage will adequately protect us against liability from all potential consequences, damages and losses.
Additionally, operations may be impacted by the existence of wetlands or other environmentally sensitive areas based upon the scope of the CWA and its protection of waters of the United States.
Similarly, operations may be impacted, delayed or even prevented by the existence of wetlands or other environmentally sensitive areas based upon the scope of the CWA and its protection of waters of the United States as well as state laws such as the Pennsylvania Clean Streams Law and related regulations and permitting requirements.
Some of these institutional lenders may elect not to provide funding for us which could result in restriction, delay or cancellation of drilling programs or development or production activities or impair our ability to operate economically. On March 21, 2022, the SEC issued a proposed rule regarding the enhancement and standardization of mandatory climate-related disclosures.
Some of these institutional lenders may elect not to provide funding for us which could result in restriction, delay or cancellation of drilling programs, development or production activities or impair our ability to operate economically. On March 6, 2024, the SEC adopted rules that would require public companies to disclose extensive climate change-related information in certain of their SEC filings.
We can provide no assurance that our insurance coverage will adequately protect us against liability from all potential consequences, damages and losses. 25 We may elect not to purchase insurance in instances where we determine that the cost of available insurance is excessive relative to the risks we believe are presented. However, such determinations may prove to be incorrect.
We may elect not to purchase insurance in instances where we determine that the cost of available insurance is excessive relative to the risks we believe are presented. However, such determinations may prove to be incorrect. Further, some forms of insurance may become unavailable in the future.
Our business depends on natural gas and oil transportation and NGLs processing facilities which are owned by others and depends on our ability to contract with those parties .
Compliance with environmental and permit requirements governing the withdrawal, storage and use of recycled water, surface water or groundwater may increase costs and cause delays, interruptions or termination of our operations. Our business depends on natural gas and oil transportation and NGLs processing facilities which are owned by others and on our ability to contract with those parties .
Because of these uncertain factors, we do not know if all of the numerous drilling locations we have identified will ever be drilled. In addition, unless production is established within the spacing units covering the undeveloped acres for which some of the drilling locations are obtained, the leases for such acreage will expire.
Unless production is established within the spacing units covering acreage subject to an expiration, the leases for such acreage will expire. Because of these uncertain factors, our actual drilling activities may materially differ from those presently identified.
The United States government has issued public warnings that indicate that energy assets might be specific targets of cybersecurity threats.
Payment of dividends may be limited or prevented due to the restrictions that are defined within our bank credit facility. 26 General risk factors Our business could be negatively affected by security threats, including cybersecurity threats and other disruptions . The United States government has issued public warnings that indicate that energy assets might be specific targets of cybersecurity threats.
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Our operations involve utilizing drilling and completion techniques as developed by us and our service providers.
Added
If any of these factors were to occur, we could lose all or a part of our investment or we could fail to realize the expected benefits, either of which could materially and adversely affect our revenue and profitability. Our operations involve utilizing drilling and completion techniques as developed by us and our service providers.
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These risks are greater at times and in areas where the pace of our exploration and development activity slows. As such, our actual drilling activities may materially differ from those presently identified.
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For example, in January 2024, the DEP announced that it would implement a policy requiring natural gas well operators to disclose chemicals they use in drilling and hydraulic fracturing operations before the chemicals are used on-site.
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Further, some forms of insurance may become unavailable in the future.
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Further, in November 2024, 20 Cecil Township, located in Washington County, Pennsylvania, increased the setback distance for oil and gas operations from 500 feet to 2,500 feet from protected structures like residences and businesses and 5,000 feet from schools and hospitals, and separately, the DEP received a citizen petition for rulemaking to expand setback distances from natural gas operations across Pennsylvania.
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For example, in November 2023, Pennsylvania Governor Josh Shapiro instructed the DEP to take immediate action to pursue formal rulemakings and policy changes, including new requirements for the disclosure of chemicals used in drilling, improved control of methane emissions aligned with federal policy, stronger drilling waste protections (including inspection of secondary containment) and corrosion protections for gathering lines that transport natural gas.
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If we are unable to obtain water to use in our operations from local sources, we may need to obtain it from new sources and transport the water to drilling sites, resulting in increased costs. We must either dispose of or recycle water used in our operations.
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We must either dispose of or recycle water used in our operations. Compliance with environmental and permit requirements governing the withdrawal, storage and use of recyled water, surface water or groundwater may increase costs and cause delays, interruptions or termination of our operations.
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These statutes include the federal ESA, the Migratory Bird Treaty Act, the CWA, CERCLA and similar state programs including under the Pennsylvania Oil and Gas Act and the Clean Streams Law and related regulations.
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Item 3. Legal Proceedings
Legal Proceedings — active lawsuits and investigations
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Item 3. Legal Proceedings
Legal Proceedings — active lawsuits and investigations
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2023 filing
2024 filing
Biggest changeWhile we cannot predict with certainty whether these notices of violation will result in fines and/or penalties, if fines and/or penalties are imposed, they may result in monetary sanctions, individually or in the aggregate, in excess of $250,000. ITEM 4. MINE SA FETY DISCLOSURES Not applicable. 34 PART II
Biggest changeWhile we cannot predict with certainty whether these notices of violation will result in fines and/or penalties, if fines and/or penalties are imposed, they may result in monetary sanctions, individually or in the aggregate, in excess of $250,000. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 29 PART II
We will continue to evaluate our litigation quarterly and will establish and adjust any litigation reserves as appropriate to reflect our assessment of the then-current status of litigation. 33 Environmental Proceedings From time to time, we receive notices of violation from governmental and regulatory authorities in areas in which we operate relating to alleged violations of environmental statutes or the rules and regulations promulgated thereunder.
We will continue to evaluate our litigation quarterly and will establish and adjust any litigation reserves as appropriate to reflect our assessment of the then-current status of litigation. 28 Environmental Proceedings From time to time, we receive notices of violation from governmental and regulatory authorities in areas in which we operate relating to alleged violations of environmental statutes or the rules and regulations promulgated thereunder.
Item 4. Mine Safety Disclosures
Mine Safety Disclosures — required of mining issuers
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Item 4. Mine Safety Disclosures
Mine Safety Disclosures — required of mining issuers
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2023 filing
2024 filing
Biggest changeMarket for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 35 Market for Common Stock 35 Holders of Record 35 Dividends 35 Equity Compensation Plan Information 35 Purchases of Equity Securities by Issuer and Affiliated Purchases 35 Stockholder Return Performance Presentation 36 i TABLE OF CONTENTS (continued) Page ITEM 6. [Reserved] 36 ITEM 7.
Biggest changeMarket for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 30 Market for Common Stock 30 Holders of Record 30 Dividends 30 Equity Compensation Plan Information 30 Purchases of Equity Securities by Issuer and Affiliated Purchasers 30 Stockholder Return Performance Presentation 31 i TABLE OF CONTENTS (continued) Page
ITEM 4. Mine Safety Disclosures 34 PART II ITEM 5.
ITEM 4. Mine Safety Disclosures 29 PART II ITEM 5.
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Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Management's Discussion and Analysis of Results of Operations 38 Management's Discussion and Analysis of Financial Condition, Cash Flows, Capital Resources and Liquidity 47 Management's Discussion of Critical Accounting Estimates 52
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
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Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
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2023 filing
2024 filing
Biggest changeThe graph assumes that $100 was invested in the Company’s common stock and each index on December 31, 2018 and that dividends were reinvested. 2018 2019 2020 2021 2022 2023 Range Resources Corporation $ 100 $ 51 $ 71 $ 189 $ 267 $ 328 S&P Oil & Gas Exploration & Production Index 100 89 55 90 128 129 S&P Small Cap 600 Index 100 123 137 173 145 168 2023 Self-Constructed Peer Group (a) 100 81 74 142 202 210 (a) The 2023 Self-Constructed Peer Group includes the following twelve companies: Antero Resources Corporation, Chesapeake Energy Corporation, CNX Resources, Comstock Resources, Inc., Coterra Energy, Inc., EQT Corporation, Matador Resources, Murphy Oil, PDC Energy (included through August 2023 when it was acquired by Chevron Corp.), SM Energy Company, Southwestern Energy Company and the S&P 500 index and is weighted based on stock market capitalization.
Biggest changeThe graph assumes that $100 was invested in the Company’s common stock and each index on December 31, 2019 and that dividends were reinvested. 2019 2020 2021 2022 2023 2024 Range Resources Corporation $ 100 $ 138 $ 368 $ 519 $ 639 $ 762 S&P Oil & Gas Exploration & Production Index 100 62 101 143 144 140 S&P Small Cap 600 Index 100 111 141 118 137 149 2024 Self-Constructed Peer Group (a) 100 76 142 212 212 255 (a) The 2024 Self-Constructed Peer Group includes the following fifteen companies: Antero Resources Corporation, Callon Petroleum Company (included through February 2024 when it was acquired by Apache Corporation), Chesapeake Energy Corporation (Expand Energy Corporation from October 2024 through December 2024), Civitas Resources, Inc., Chord Energy Corporation, CNX Resources Corporation, Comstock Resources, Inc., Coterra Energy, Inc., EQT Corporation, Magnolia Oil & Gas Corporation, Matador Resources Company, Marathon Oil Corporation (included through November 2024 when it was acquired by Conoco Phillips), Murphy Oil, SM Energy Company, Southwestern Energy Company (included through September 2024 when it was acquired by Chesapeake Energy Corporation to form Expand Energy Corporation) and the S&P 400.
Management’s Discussion and Analysis of Financial Condition and Results of Operations. Equity Compensa tion Plan Information The information required by this item is incorporated herein by reference to the 2024 Proxy Statement, which will be filed with the SEC not later than 120 days after December 31, 2023.
Management’s Discussion and Analysis of Financial Condition and Results of Operations. Equity Compensa tion Plan Information The information required by this item is incorporated herein by reference to our 2025 Proxy Statement, which will be filed with the SEC not later than 120 days after December 31, 2024.
ITEM 5. M ARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market for Common Stock Our common stock is listed on the New York Stock Exchange ("NYSE") under the symbol "RRC". During 2023, trading volume averaged approximately 3.7 million shares per day.
ITEM 5. M ARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market for Common Stock Our common stock is listed on the NYSE under the symbol "RRC." During 2024, trading volume averaged approximately 2.3 million shares per day.
Holders of Record Pursuant to the records of our transfer agent, as of February 19, 2024, there were approximately 846 holders of record of our common stock. Dividends The payment of dividends is subject to the formal declaration by the board of directors.
Holders of Record Pursuant to the records of our transfer agent, as of February 21, 2025, there were approximately 820 holders of record of our common stock. Dividends The payment of dividends is subject to the formal declaration by the board of directors.
Purchases of Equity S e curities by the Issuer and Affiliated Purchasers In 2019, our board of directors authorized a $100 million common stock repurchase program. In 2022, our board of directors increased the authorization under the program.
Purchases of Equity S e curities by the Issuer and Affiliated Purchasers In 2019, our board of directors authorized a common stock repurchase program. In 2022, our board of directors increased the authorization under the program. Shares repurchased as of December 31, 2024, were held as treasury stock and we have approximately $1.0 billion of remaining authorization under the program.
Purchases of our common stock in fourth quarter 2023 were as follows: Three Months Ended December 31, 2023 Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Amount of Shares that May Yet Be Purchased Under Plans or Programs October 2023 50,000 $ 29.84 50,000 $ 1,089,244,444 November 2023 — $ — — $ 1,089,244,444 December 2023 265,000 $ 29.74 265,000 $ 1,081,359,316 315,000 315,000 35 Stockhol der Return Performance Presentation The following graph is included in accordance with the SEC’s executive compensation disclosure rules.
Purchases of our common stock in fourth quarter 2024 were as follows: Period Total Number of Shares Purchased Average Price Paid Per Share (a) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Amount of Shares that May Yet Be Purchased Under Plans or Programs October 2024 100,000 $ 30.40 100,000 $ 1,034,183,625 November 2024 100,000 $ 29.74 100,000 $ 1,031,209,315 December 2024 450,000 $ 33.58 450,000 $ 1,016,098,568 650,000 650,000 (a) Includes any fees, commissions, or other expenses associated with the share repurchases. 30 Stockhol der Return Performance Presentation The following graph is included in accordance with the SEC’s executive compensation disclosure rules.
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As of December 31, 2023, these repurchased shares are held as treasury stock and we have approximately $1.1 billion of remaining authorization under the program.
Added
These repurchases are based on trade date, although certain repurchases may not have settled until the following month.
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The 2024 Self-Constructed Peer Group is a market capitalization-weighted index in which each of the seven Compensation Peer Group companies with the highest percentage of dry gas reserves are included twice.
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The seven companies included twice are Antero Resources Corporation, Chesapeake Energy Corporation (Expand Energy Corporation from October 2024 through December 2024), CNX Resources Corporation, Comstock Resources, Inc., Coterra Energy Inc., EQT Corporation and Southwestern Energy Company (included through September 2024 when it was acquired by Chesapeake Energy Corporation to form Expand Energy Corporation).
Added
The above performance graph shall not be deemed "filed" for purposes of Section 18 Exchange Act, or otherwise subject to the liabilities under that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 6. [Reserved]
Selected Financial Data — reserved (removed by SEC in 2021)
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Item 6. [Reserved]
Selected Financial Data — reserved (removed by SEC in 2021)
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2023 filing
2024 filing
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ITEM 6. RE SERVED 36 ITEM 7 . MANAGEMENT’S DISCUSSIO N AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion is intended to assist you in understanding our business and results of operations together with our present financial condition and should be read in conjunction with the information under Item 8.
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ITEM 6. [Reserved] 31 ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 32 Management's Discussion and Analysis of Results of Operations 32 Management's Discussion and Analysis of Financial Condition, Cash Flows, Capital Resources and Liquidity 41 Management's Discussion of Critical Accounting Estimates 45
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Financial Statements and Supplementary Data and other financial information found elsewhere in this Form 10-K. See also matters referenced in the foregoing pages under "Disclosures Regarding Forward-Looking Statements." The following tables and discussions set forth key operating and financial data for the years ended December 31, 2023 and 2022.
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For similar discussions of the year ended December 31, 2022 compared to December 31, 2021 results, refer to Item 7. "Managements’ Discussion and Analysis of Financial Condition and Results of Operations" under Part II of our annual report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on February 27, 2023.
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Overview of Our Business We are an independent natural gas, natural gas liquids ("NGLs,") crude oil and condensate company engaged in the exploration, development and acquisition of natural gas and crude oil properties located in the Appalachian region of the United States.
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We operate in one segment and have a single company-wide management team that administers all properties as a whole rather than by discrete operating segments. We measure financial performance as a single enterprise and not on an area-by-area basis. Our overarching business objective is to build stockholder value through returns-focused development of natural gas properties.
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Our strategy to achieve our business objective is to generate consistent cash flows from reserves and production through internally generated drilling projects occasionally coupled with complementary acquisitions and divestitures of non-core or, at times, core assets. Currently, our investment portfolio is focused on high quality natural gas assets in the state of Pennsylvania.
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Our revenues, profitability and future growth depend substantially on prevailing prices for natural gas, NGLs, crude oil and condensate and on our ability to economically find, develop, acquire and produce natural gas, NGLs and oil reserves. Commodity prices have been and are expected to remain volatile.
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We believe we are well-positioned to manage any challenges during a low commodity price environment and that we can endure the continued volatility in current and future commodity prices by: • exercising discipline in our capital investments; • optimizing drilling, completion and operational efficiencies; • maintaining a competitive cost structure; • managing price risk through the hedging of our production; and • managing our balance sheet.
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Prices for natural gas, NGLs, crude oil and condensate fluctuate widely and affect: • our revenues, profitability and cash flow; • 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; • the amount of cash flow available to us for reinvestment; and • our ability to borrow and raise additional capital.
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We prepare our financial statements in conformity with U.S. GAAP, which require us to make estimates and assumptions that affect our reported results of operations and the amount of our reported assets, liabilities and proved natural gas, NGLs and oil reserves. We use the successful efforts method of accounting for our natural gas, NGLs and oil activities.
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Our corporate headquarters is located in Fort Worth, Texas.
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Key 2023 highlights include: Financial and operating results: • We recorded net income of $871.1 million for the year ended December 31, 2023; • Average daily production was 2.14 Bcfe during the year; • Repurchased 715,000 shares of common stock via the share repurchase program leaving $1.1 billion available under the repurchase program; • Paid dividends of $77.2 million, ending the year with $212.0 million in cash on hand; and • Executed opportunistic debt repurchases of $61.6 million in the open market. 37 Corporate sustainability highlights and initiatives: • Completed the MiQ certification for our Southwest Pennsylvania assets and earned an "A" grade; • Continued to recycle approximately 100% of our produced water; • Implemented the use of compressed air pneumatic controllers; • Achieved a 28% reduction in number of workforce recordable injuries (both employee and contractor) with a Total Recordable Incident Rate of 0.34; • Achieved a 70% reduction in preventable vehicle incidents with six incidents in 2023; and • Continued board of directors refreshment through the appointment of one new director.
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Management’s Discussion and Analysis of Results of Operations Commodity prices have remained volatile. Benchmarks for natural gas, oil and NGLs decreased in 2023 compared to 2022 and, as a result, we experienced significant decreases in our price realizations when compared to the same period of 2022.
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Despite lower prices, we continued to focus on creating long-term value for our stockholders along with positioning ourselves to be a responsible and reliable supplier of natural gas. Overview of 2023 Results During 2023, we recognized net income of $871.1 million, or $3.57 per diluted common share compared to $1.2 billion, or $4.69 per diluted common share during 2022.
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The decrease in net income for the year ended December 31, 2023 when compared to 2022 is primarily due to significantly lower realized prices.
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For the year ended December 31, 2023, we experienced a decrease in revenue from the sale of natural gas, NGLs and oil due to a 41% decrease in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) when compared to 2022.
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Daily production in 2023 averaged 2.14 Bcfe compared to 2.12 Bcfe in 2022.
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During 2023, our financial and operating performance included the following results: • revenue from the sale of natural gas, NGLs and oil decreased 52% from the same period of 2022 with a 53% decrease in average realized prices (before cash settlements on our derivatives) partially offset by slightly higher production volumes; • revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) decreased 30% from the same period of 2022; • transportation, gathering, processing and compression expense per mcfe was $1.43 in 2023 compared to $1.61 in the same period of 2022 primarily due to the impact of lower commodity prices; • direct operating expense per mcfe was $0.12 in 2023 compared to $0.11 in the same period of 2022 due to higher workover costs; • general and administrative expense per mcfe for 2023 decreased 5% from the same period of 2022 due to lower stock-based compensation; • interest expense per mcfe for 2023 decreased 24% from the same period of 2022 due to lower debt balances; • our DD&A rate per mcfe for 2023 decreased 2% from the same period of 2022; • drilled 47.4 net wells with a 100% success rate; • cash flow from operating activities for 2023 was 48% lower than the same period of 2022 due to lower commodity prices; and • our capital budget spending for 2023 was $613.6 million, which was within our initially announced range of $570.0 million to $615.0 million.
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The year ended December 31, 2023 also included the following highlights to enhance our balance sheet, return capital to investors and preserve liquidity: • paid $77.2 million in dividends or $0.32 per share compared to $0.16 in 2022; • repurchased $19.0 million of our common stock compared to $399.7 million in 2022; • repurchased in the open market $61.6 million face value of our 4.875% senior notes due 2025 at a discount; and • enhanced liquidity with the accumulation of cash on hand of $212.0 million along with $1.3 billion available under our credit facility. 38 We generated $977.9 million of cash from operating activities in 2023, a decrease of $886.9 million from 2022 which reflects significantly lower realized prices partially offset by lower comparative working capital outflows.
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Acquisitions During 2023, we invested $40.1 million to acquire unproved acreage compared to $28.7 million in 2022. We continue selective acreage leasing and lease renewals to consolidate our acreage positions in the Marcellus Shale play in Pennsylvania. 2024 Outlook As we enter 2024, we believe we are positioned for sustainable long-term success.
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For 2024, we expect our capital budget to be in the range of $620 million to $670 million for natural gas, NGLs, crude oil and condensate related activities, excluding proved property acquisitions, for which we do not budget.
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As has been our historical practice, we will periodically review our capital expenditures throughout the year and may adjust the budget based on commodity prices, drilling success and other factors. We expect our 2024 capital budget to achieve production similar to our 2023 production.
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Our 2024 capital budget is focused on continuing to improve corporate returns and generating free cash flow. We expect it to be funded with operating cash flow. The prices we receive for our natural gas, NGLs and oil production are largely based on current market prices, which are beyond our control.
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The price risk on a portion of our forecasted natural gas, NGLs and oil production for 2024 is partially mitigated by entering into commodity derivative contracts and we intend to continue to enter into these types of contracts. We believe it is likely that commodity prices will continue to be volatile during 2024.
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Market Conditions We believe we are positioned for sustainable long-term success.
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We continue to monitor the impact of the actions of OPEC and other large producing nations, the Russia-Ukraine conflict, hostilities in the Middle East, global inventories of oil and gas, future monetary policy and governmental policies aimed at transitioning towards lower carbon energy and we expect prices for some or all of the commodities we produce to remain volatile given the complex dynamics of supply and demand that exist in the global market.
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In fourth quarter 2023, natural gas prices declined based on the relatively mild early days of winter and delays to a large liquefied natural gas export project in-service date.
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Longer term natural gas futures prices have remained stronger based on market expectations that associated gas-related activity in oil basins and dry gas basin activity will show modest rates of growth compared with the past due to infrastructure constraints, capital discipline and core inventory exhaustion.
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In addition, the global energy crisis further highlighted the low cost and low emissions shale gas resource base in North America, supporting continued strong structural demand growth for United States liquefied natural gas exports, domestic industrial gas demand and power generation.
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Other factors such as geopolitical disruptions, supply chain disruptions, cost inflation, concerns over a potential economic recession and the pace and extent of tightening global monetary policy may impact the demand for oil, natural gas and NGLs. We continue to assess and monitor the impact and consequences of these factors on our operations.
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Prices for various quantities of natural gas, NGLs and oil that we produce significantly impact our revenues and cash flows. Prices for commodities, such as hydrocarbons, are inherently volatile.
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Recently, natural gas prices have decreased, when compared to December 2023, with the average NYMEX monthly settlement price for natural gas decreasing to $2.49 per mcf for February 2024 with the recent mild winter weather. Crude oil prices have increased, when compared to December 2023, to $73.86 per barrel in January 2024.
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The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the years ended December 31, 2023 and 2022.
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Year Ended December 31, 2023 2022 Benchmarks: Average NYMEX prices (a) Natural gas (per mcf) $ 2.75 $ 6.64 Oil (per bbl) $ 77.54 $ 94.90 Mont Belvieu NGLs composite (per gallon) (b) $ 0.56 $ 0.90 (a) Based on average of monthly last day settlement prices on the New York Mercantile Exchange ("NYMEX").
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(b) Based on our estimated NGLs product composition per barrel.
Removed
Our price realizations (not including the impact of our derivatives) may differ from the benchmarks for many reasons, including quality, location, or production being sold at different indices. 39 Natural Gas, NGLs and Oil Sales, Production and Realized Price Calculations Our revenues vary from year to year as a result of changes in realized commodity prices and production volumes.
Removed
In 2023, natural gas, NGLs and oil sales decreased 52% from 2022 with a 53% decrease in realized prices (excluding cash settlements on our derivatives) partially offset by slightly higher production volumes.
Removed
The following table illustrates the primary components of natural gas, NGLs, crude oil and condensate sales for the last two years (in thousands): Year Ended December 31, 2023 2022 Change % Change Natural gas, NGLs and Oil sales Natural gas $ 1,234,308 $ 3,364,111 $ (2,129,803 ) (63 %) NGLs 933,791 1,308,574 (374,783 ) (29 %) Oil and condensate 166,562 238,407 (71,845 ) (30 %) Total natural gas, NGLs and oil sales $ 2,334,661 $ 4,911,092 $ (2,576,431 ) (52 %) Production is maintained through drilling success as we place new wells on production which is partially offset by the natural decline of our natural gas and oil reserves through production.
Removed
Our production for the last two years is set forth in the following table: Year Ended December 31, 2023 2022 Change % Change Production (a) Natural gas (mcf) 538,084,671 539,442,624 (1,357,953 ) — % NGLs (bbls) 37,939,700 36,392,033 1,547,667 4 % Crude oil and condensate (bbls) 2,475,306 2,715,681 (240,375 ) (9 %) Total (mcfe) (b) 780,574,707 774,088,908 6,485,799 1 % Average daily production (a) Natural gas (mcf) 1,474,205 1,477,925 (3,720 ) — % NGLs (bbls) 103,944 99,704 4,240 4 % Crude oil and condensate (bbls) 6,782 7,440 (658 ) (9 %) Total (mcfe) (b) 2,138,561 2,120,792 17,769 1 % (a) Represents volumes sold regardless of when produced.
Removed
(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 and natural gas, which is not indicative of the relationship between oil and natural gas prices. 40 Our average realized price (including all derivative settlements and third-party transportation costs paid by Range) received during 2023 was $1.88 per mcfe compared to $3.17 per mcfe in 2022.
Removed
The majority of our production is sold at market-sensitive prices. Generally, if the related commodity index declines, the price we receive for our production will also decline. Because we record transportation costs on two separate bases, as required by U.S. GAAP, we believe computed final realized prices should include the impact of transportation, gathering, processing and compression expense.
Removed
Average sales prices (excluding derivative settlements) do not include any derivative settlements or third-party transportation costs which are reported in transportation, gathering and compression expense on the accompanying consolidated statements of income. Average sales prices (excluding derivative settlements) do include transportation costs where we receive net proceeds from the purchaser.
Removed
Our average realized price (including all derivative settlements and third-party transportation costs paid by Range) calculation includes all cash settlements for derivatives. Our derivative settlements included in our realized price calculations do not include settlements of contingent consideration related to the sale of our North Louisiana properties.
Removed
Average realized price calculations for the last two years are shown below: Year Ended December 31, 2023 2022 Change % Change Average Prices Average sales prices (excluding derivative settlements): Natural gas (per mcf) $ 2.29 $ 6.24 $ (3.95 ) (63 %) NGLs (per bbl) 24.61 35.96 (11.35 ) (32 %) Crude oil (per bbl) 67.29 87.79 (20.50 ) (23 %) Total (per mcfe) (a) 2.99 6.34 (3.35 ) (53 %) Average realized prices (including all derivative settlements): Natural gas (per mcf) $ 2.77 $ 4.16 $ (1.39 ) (33 %) NGLs (per bbl) 24.61 35.62 (11.01 ) (31 %) Crude oil (per bbl) 62.77 57.39 5.38 9 % Total (per mcfe) (a) 3.31 4.78 (1.47 ) (31 %) Average realized prices (including all derivative settlements and third-party transportation costs paid by Range): Natural gas (per mcf) $ 1.68 $ 2.90 $ (1.22 ) (42 %) NGLs (per bbl) 10.80 20.08 (9.28 ) (46 %) Crude oil (per bbl) 62.43 57.39 5.04 9 % Total (per mcfe) (a) 1.88 3.17 (1.29 ) (41 %) (a) Oil and NGLs volumes are converted 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
Realized prices include the impact of basis differentials and gains or losses realized from our basis hedging. The prices we receive for our natural gas can be more or less than the NYMEX price because of adjustments for delivery location, relative quality and other factors.
Removed
The following table provides this impact on a per mcf basis: Year Ended December 31, 2023 2022 Average natural gas differentials below NYMEX $ (0.46 ) $ (0.40 ) Realized gains on basis hedging $ 0.05 $ 0.11 The following tables reflect our production and average realized commodity prices (excluding derivative settlements and third-party transportation costs paid by Range) (in thousands, except prices): Year Ended December 31, 2022 Price Variance Volume Variance 2023 Natural gas Price (per mcf) $ 6.24 $ (3.95 ) $ — $ 2.29 Production (Mmcf) 539,443 — (1,358 ) 538,085 Natural gas sales $ 3,364,111 $ (2,121,335 ) $ (8,468 ) $ 1,234,308 41 Year Ended December 31, 2022 Price Variance Volume Variance 2023 NGLs Price (per bbl) $ 35.96 $ (11.35 ) $ — $ 24.61 Production (Mbbls) 36,392 — 1,548 37,940 NGLs sales $ 1,308,574 $ (430,434 ) $ 55,651 $ 933,791 Year Ended December 31, 2022 Price Variance Volume Variance 2023 Crude oil Price (per bbl) $ 87.79 $ (20.50 ) $ — $ 67.29 Production (Mbbls) 2,716 — (241 ) 2,475 Crude oil sales $ 238,407 $ (50,742 ) $ (21,103 ) $ 166,562 Year Ended December 31, 2022 Price Variance Volume Variance 2023 Consolidated Price (per mcfe) $ 6.34 $ (3.35 ) $ — $ 2.99 Production (Mmcfe) 774,089 — 6,486 780,575 Total natural gas, NGLs and oil sales $ 4,911,092 $ (2,617,579 ) $ 41,148 $ 2,334,661 Transportation, gathering, processing and compression expense was $1.1 billion in 2023 and $1.2 billion in 2022.
Removed
These third-party costs are lower than the prior year due to lower fuel and lower electricity costs along with the impact of lower NGLs prices which results in lower processing costs. We have included these costs in the calculation of average realized prices (including all derivative settlements and third-party transportation expenses paid by Range).
Removed
The following table summarizes transportation, gathering, processing and compression expense for the last two years (in thousands) and on a per mcf and per barrel basis: Year Ended December 31, 2023 2022 Change % Change Transportation, gathering, processing and compression Natural gas $ 588,970 $ 677,316 $ (88,346 ) (13 %) NGLs 524,114 565,614 (41,500 ) (7 %) Oil 857 11 846 7,691 % Total $ 1,113,941 $ 1,242,941 $ (129,000 ) (10 %) Natural gas (per mcf) $ 1.09 $ 1.26 $ (0.17 ) (13 %) NGLs (per bbl) $ 13.81 $ 15.54 $ (1.73 ) (11 %) Oil (per bbl) $ 0.35 $ — $ 0.35 100 % 42 Derivative fair value income (loss) was a gain of $821.2 million in 2023 compared to a loss of $1.2 billion in 2022.
Removed
All of our derivatives are accounted for using the mark-to-market accounting method. Mark-to-market accounting treatment creates volatility in our revenues as unrealized gains and losses from derivatives are included in total revenues. As commodity prices increase or decrease, such changes will have an opposite effect on the mark-to-market value of our derivatives.
Removed
Gains on our derivatives generally indicate lower wellhead revenues in the future while losses indicate higher future wellhead revenues. At December 31, 2023, our commodity derivative contracts were recorded at their fair value, which was a net derivative asset of $424.4 million, an increase of $563.0 million from the $138.6 million net derivative liability recorded as of December 31, 2022.
Removed
We have also entered into basis swap agreements to limit volatility caused by changing differentials between NYMEX and regional prices received. These basis swaps are marked to market and we recognized a net derivative asset of $18.3 million as of December 31, 2023 compared to a net derivative asset of $521,000 as of December 31, 2022.
Removed
The following table summarizes the impact of our commodity derivatives for the last two years (in thousands): Year Ended December 31, 2023 2022 Derivative fair value income (loss) per consolidated statements of income $ 821,154 $ (1,188,506 ) Non-cash fair value income (loss): (1) Natural gas derivatives $ 557,419 $ (2,392 ) Oil derivatives 23,301 14,783 NGLs derivatives — 2,931 Freight derivatives — (114 ) Contingent consideration (13,080 ) (13,560 ) Total non-cash fair value income (loss) (1) $ 567,640 $ 1,648 Net cash receipt (payment) on derivative settlements: Natural gas derivatives $ 256,693 $ (1,119,940 ) Oil derivatives (11,179 ) (82,546 ) NGLs derivatives — (12,168 ) Contingent consideration 8,000 24,500 Total net cash receipt (payment) $ 253,514 $ (1,190,154 ) (1) Non-cash fair value adjustments on commodity derivatives is a non-GAAP measure.
Removed
Non-cash fair value adjustments on commodity derivatives only represent the net change between periods of the fair market values of commodity derivative positions and exclude the impact of settlements on commodity derivatives during the period.
Removed
We believe that non-cash fair value adjustments on commodity derivatives is a useful supplemental disclosure to differentiate non-cash fair market value adjustments from settlements on commodity derivatives during the period.
Removed
Non-cash fair value adjustments on commodity derivatives is not a measure of financial or operating performance under GAAP, nor should it be considered a substitute for derivative fair value income or loss as reported in our consolidated statements of income. Brokered natural gas, marketing and other revenue was $218.6 million in 2023 compared to $424.2 million in 2022.
Removed
We enter into purchase transactions with third parties and separate sale transactions with third parties at different times to utilize available pipeline capacity and to fulfill sales commitments in the event of operational upsets.
Removed
The 2023 period includes $195.7 million of revenue from the sale of natural gas that is not related to our production (brokered) and $1.8 million of revenue from the sale of NGLs that is not related to our production, the receipt of $5.1 million in make-whole payments and $5.9 million of interest income.
Removed
The 2022 period includes $408.6 million of revenue from the brokered sale of natural gas and $2.8 million of revenue from the sale of NGLs that is not related to our production and $2.5 million of interest income. These brokered revenues decreased compared to 2022 due to lower sales prices partially offset by higher brokered volumes.
Removed
Costs and Expenses per mcfe We believe some of our expense fluctuations are best analyzed on a unit-of-production, or per mcfe, basis.
Removed
The following presents information about certain of our expenses on a per mcfe basis for the last two years: Year Ended December 31, 2023 2022 Change % Change Direct operating expense $ 0.12 $ 0.11 $ 0.01 9 % Taxes other than income expense 0.03 0.05 (0.02 ) (40 %) General and administrative expense 0.21 0.22 (0.01 ) (5 %) Interest expense 0.16 0.21 (0.05 ) (24 %) Depletion, depreciation and amortization expense 0.45 0.46 (0.01 ) (2 %) 43 Direct operating expense was $96.1 million in 2023 compared to $84.3 million in 2022.
Removed
Direct operating expenses include normally recurring expenses to operate and produce our wells, non-recurring workover and repair-related expenses. On an absolute dollar basis, our direct operating expenses for 2023 increased 14% from the prior year primarily due to higher water hauling/handling costs, higher labor costs and higher workover costs.
Removed
We incurred $4.5 million of workover costs in 2023 compared to $3.0 million of workover costs in 2022. On a per mcfe basis, operating expense for 2023 increased $0.01, or 9% from the same period of 2022, with the increase due to higher workover costs.
Removed
Stock-based compensation expense represents the amortization of equity grants as part of the compensation of field employees.
Removed
The following table summarizes direct operating expenses per mcfe for the last two years: Year Ended December 31, 2023 2022 Change % Change Direct operating Lease operating expense $ 0.11 $ 0.11 $ — — % Workovers 0.01 — 0.01 100 % Stock-based compensation — — — — % Total direct operating expense $ 0.12 $ 0.11 $ 0.01 9 % Taxes other than income expense was $23.7 million in 2023 compared to $35.4 million in 2022.
Removed
This expense category is primarily the Pennsylvania impact fee. In 2012, Pennsylvania enacted an "impact fee" on unconventional natural gas and oil production which includes the Marcellus Shale. The impact fee is based upon the year wells are drilled and the fee varies, like a severance tax, based upon natural gas prices.
Removed
The year ended December 31, 2023 includes a $21.8 million impact fee compared to $33.2 million in the year ended December 31, 2022, with the decrease primarily due to lower natural gas prices. This category also includes other taxes such as franchise, real estate and commercial activity taxes.
Removed
The following table summarizes taxes other than income per mcfe for the last two years: Year Ended December 31, 2023 2022 Change % Change Taxes other than income Impact fee $ 0.03 $ 0.04 $ (0.01 ) (25 %) Other — 0.01 (0.01 ) (100 %) Total taxes other than income $ 0.03 $ 0.05 $ (0.02 ) (40 %) General and administrative expense was $164.7 million for 2023 compared to $168.1 million for 2022.
Removed
The decrease in 2023, when compared to 2022, is primarily due to lower stock-based compensation and lower legal expenses partially offset by higher salaries and benefit costs. As of December 31, 2023, the number of general and administrative employees was the same when compared to December 31, 2022.
Removed
On a per mcfe basis, general and administrative expense for 2023 was 5% lower when compared to the same period of 2022 due to lower stock-based compensation. Stock-based compensation expense represents the amortization of stock-based compensation awards granted to our employees and our non-employee directors as part of their compensation.
Removed
The following table summarizes general and administrative expenses per mcfe for the last two years: Year Ended December 31, 2023 2022 Change % Change General and administrative General and administrative $ 0.16 $ 0.16 $ — — % Stock-based compensation 0.05 0.06 (0.01 ) (17 %) Total general and administrative expense $ 0.21 $ 0.22 $ (0.01 ) (5 %) 44 Interest expense was $124.0 million for 2023 compared to $165.1 million for 2022.
Removed
The following table summarizes interest expense per mcfe for the last two years: Year Ended December 31, 2023 2022 Change % Change Bank credit facility $ 0.01 $ 0.01 $ — — % Senior notes 0.14 0.19 (0.05 ) (26 %) Amortization of deferred financing costs and other 0.01 0.01 — — % Total interest expense $ 0.16 $ 0.21 $ (0.05 ) (24 %) Average debt outstanding (in thousands) $ 1,821,940 $ 2,510,107 $ (688,167 ) (27 %) Average interest rate (a) 6.5 % 6.25 % 0.25 % 4 % (a) Includes commitment fees but excludes amortization of debt issue costs.
Removed
On an absolute basis, the decrease in interest expense for 2023 from 2022 was primarily due to lower overall outstanding average debt balances. See Note 6 to our consolidated financial statements for additional information.
Removed
Average debt outstanding on the bank credit facility for 2023 was $8.0 million compared to $48.4 million for 2022 and the weighted average interest rate on the bank credit facility was 8.4% for 2023 compared to 4.1% in 2022. Depletion, depreciation and amortization ("DD&A") was $350.2 million in 2023 compared to $353.4 million in 2022.
Removed
The decrease in 2023 when compared to 2022 is due to a 2% decrease in depletion rates. On a per mcfe basis, DD&A decreased to $0.45 in 2023 compared to $0.46 in 2022. Depletion expense, the largest component of DD&A, was $0.44 per mcfe in 2023 compared to $0.45 per mcfe in 2022.
Removed
We have historically adjusted our depletion rates in the fourth quarter of each year based on our 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 expenses per mcfe for the last two years: Year Ended December 31, 2023 2022 Change % Change DD&A Depletion and amortization $ 0.44 $ 0.45 $ (0.01 ) (2 %) Accretion and other 0.01 0.01 — — % Total DD&A expenses $ 0.45 $ 0.46 $ (0.01 ) (2 %) Other Operating Expenses Our total operating expenses also include other expenses that generally do not trend with production.
Removed
These expenses include stock-based compensation, brokered natural gas and marketing, exploration expense, abandonment and impairment of unproved properties, exit costs, deferred compensation plan and gain or loss on early extinguishment of debt.
Removed
The following table details stock-based compensation that is allocated to functional expense categories for the last two years (in thousands): 2023 2022 Direct operating expense $ 1,723 $ 1,459 Brokered natural gas and marketing expense 2,095 2,439 Exploration expense 1,250 1,578 General and administrative expense 35,850 42,023 Total stock-based compensation $ 40,918 $ 47,499 Stock-based compensation includes the amortization of restricted stock and performance-based grants. 45 Brokered natural gas and marketing expense was $202.9 million in 2023 compared to $427.0 million in 2022.
Removed
We enter into purchase transactions with third parties and separate sale transactions with third parties at different times to utilize available pipeline capacity and fulfill sales commitments in the event of operational upsets. The decrease in these costs reflects lower purchase prices partially offset by higher purchased volumes.
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Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
0 edited+187 added−159 removed0 unchanged
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
0 edited+187 added−159 removed0 unchanged
2023 filing
2024 filing
Removed
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 7A. Quantitative and Qualitative Disclosures about Market Risk. We incur gathering and transportation expense to move our production from the wellhead, tanks and processing plants to purchaser-specified delivery points.
Added
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion is intended to assist you in understanding our business and results of operations together with our present financial condition and should be read in conjunction with the information under Item 8.
Removed
These expenses vary and are primarily based on volume, distance shipped and the fee charged by the third-party gatherers and transporters. We also have processing contracts based on percent of proceeds. Transportation capacity on these gathering and transportation systems and pipelines is occasionally constrained.
Added
Financial Statements and Supplementary Data and other financial information found elsewhere in this Form 10-K. See also matters referenced in the foregoing pages under "Disclosures Regarding Forward-Looking Statements." The following tables and discussions set forth key operating and financial data for the years ended December 31, 2024 and 2023.
Removed
Our Appalachian production is transported on third-party pipelines on which we hold a certain amount of long-term contractual capacity. We attempt to balance sales, storage and transportation positions, which can include purchase of commodities from third parties for resale, to utilize contracted transportation capacity.
Added
For similar discussions of the year ended December 31, 2023 compared to December 31, 2022 results, refer to Item 7. Managements’ Discussion and Analysis of Financial Condition and Results of Operations under Part II of our annual report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 21, 2024.
Removed
We have not experienced significant difficulty to date in finding a market for all of our production as it becomes available or in transporting our production to those markets; however, there is no assurance that we will always be able to transport and market all of our production or obtain favorable prices.
Added
Overview of Our Business We are an independent natural gas, NGLs and oil company engaged in the exploration, development and acquisition of natural gas and oil properties located in the Appalachian region of the United States.
Removed
We have entered into several ethane agreements to sell or transport ethane from our Marcellus Shale area. For more information, see Item 1A. Risk Factors – Our business depends on natural gas and oil transportation and NGLs processing facilities, most of which are owned by others and depends on our ability to contract with those parties.
Added
We operate in one segment and have a single company-wide management team that administers all properties as a whole rather than by discrete operating segments. We measure financial performance as a single enterprise and not on an area-by-area basis. Our overarching business objective is to build stockholder value through returns-focused development of natural gas, NGLs and oil properties.
Removed
Seasonal Nature of Business Generally, but not always, the demand for natural gas and propane decreases during the spring and fall months and increases during the winter months and, in some areas, also increases during the summer months. Seasonal anomalies such as mild winters or hot summers also may impact this demand.
Added
Our strategy to achieve our business objective is to generate consistent cash flows from reserves and production through internally generated drilling projects occasionally coupled with complementary acquisitions and divestitures of non-core or, at times, core assets. Currently, our investment portfolio is focused on high quality natural gas assets in the state of Pennsylvania.
Removed
In addition, pipelines, utilities, local distribution companies and industrial end-users utilize natural gas storage facilities and purchase some of their anticipated winter requirements during the summer. This can also impact the seasonality of demand. Exports can also impact demand based on the seasonality of global markets.
Added
Our revenues, profitability and future growth depend substantially on prevailing prices for natural gas, NGLs and oil and on our ability to economically find, develop, acquire and produce natural gas, NGLs and oil reserves. Commodity prices have been and are expected to remain volatile.
Removed
Mark ets Our ability to produce and market natural gas, NGLs and oil profitably depends on numerous factors beyond our control. The effect of these factors cannot be accurately predicted or anticipated.
Added
We believe we are well-positioned to manage any challenges during a low commodity price environment and that we can endure the continued volatility in current and future commodity prices by: • exercising discipline in our capital investments; • optimizing drilling, completion and operational efficiencies; • maintaining a competitive cost structure; • managing price risk through the hedging of our production; and • managing our balance sheet.
Removed
Although we cannot predict the occurrence of events that may affect commodity prices or the degree to which commodity prices will be affected, the prices for any commodity that we produce will generally approximate current market prices in the geographic region of the production.
Added
Prices for natural gas, NGLs, and oil fluctuate widely and affect: • our revenues, profitability and cash flow; • 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; • the amount of cash flow available to us for reinvestment or return to our stockholders; and • our ability to borrow and raise additional capital.
Removed
Governmental Regulation Enterprises that sell securities in public markets are subject to regulatory oversight by federal agencies such as the SEC. The NYSE, a private stock exchange, also requires us to comply with listing requirements for our common stock.
Added
We prepare our financial statements in conformity with U.S. GAAP, which require us to make estimates and assumptions that affect our reported results of operations and the amount of our reported assets, liabilities and proved natural gas, NGLs and oil reserves. We use the successful efforts method of accounting for our natural gas, NGLs and oil activities.
Removed
This regulatory oversight imposes on us the responsibility for establishing and maintaining disclosure controls and procedures and internal controls over financial reporting and ensuring that the financial statements and other information included in submissions to the SEC do not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made in such submissions not misleading.
Added
Management’s Discussion and Analysis of Results of Operations Commodity prices have remained volatile. Benchmarks for natural gas and oil decreased in 2024 compared to 2023 while NGLs benchmarks remained comparable. As a result, we experienced decreases in our price realizations when compared to the same period of 2023.
Removed
Failure to comply with the NYSE listing rules and regulations of the SEC could subject us to litigation from public or private plaintiffs. Failure to comply with the rules of the NYSE could also result in the de-listing of our common stock, which could have an adverse effect on the market price of our common stock.
Added
Despite lower prices, we continued to focus on creating long-term value for our stockholders along with positioning ourselves to be a responsible and reliable supplier of natural gas, NGLs and oil. 32 Overview of 2024 Results During 2024, we recognized net income of $266.3 million, or $1.09 per diluted common share compared to $871.1 million, or $3.57 per diluted common share during 2023.
Removed
Compliance with some of these rules and regulations is costly and regulations are subject to change or reinterpretation. Exploration and development and the production and sale of oil and gas are subject to extensive federal, state and local regulations, mandates and trade agreements.
Added
The decrease in net income for the year ended December 31, 2024 when compared to 2023 is primarily due to lower realized prices and lower derivative fair value income which are partially offset by higher production.
Removed
Governmental policies affecting the energy industry, such as taxes, tariffs, duties, price controls, subsidies, incentives, foreign exchange rates and import and export restrictions, can influence the viability and volume of production of certain commodities, the volume and types of imports and exports, whether unprocessed or processed commodity products are traded, and industry profitability.
Added
For the year ended December 31, 2024, we experienced a decrease in revenue from the sale of natural gas, NGLs and oil due to a 2% decrease in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) when compared to 2023.
Removed
For example, in the past the United States government has imposed tariffs on certain foreign imports and the resulting retaliation by those foreign governments has disrupted aspects of the energy market. Disruption and uncertainty of this sort can affect the price of oil and natural gas and may cause us to change our plans for exploration and production levels.
Added
Daily production in 2024 averaged 2.18 Bcfe compared to 2.14 Bcfe in 2023.
Removed
An overview of relevant federal, state and local regulations is set forth below. We believe we are in substantial compliance with currently applicable laws and regulations, and the continued substantial compliance with existing requirements will not have a material adverse effect on our financial position, cash flows or results of operations.
Added
During 2024, our financial and operating performance included the following results: • revenue from the sale of natural gas, NGLs and oil decreased 5% from the same period of 2023 with a 7% decrease in average realized prices (before cash settlements on our derivatives) partially offset by slightly higher production volumes; • revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) increased 3% from the same period of 2023; • transportation, gathering, processing and compression expense per mcfe was $1.48 in 2024 compared to $1.43 in the same period of 2023 primarily due to the increase of NGLs volumes and prices; • direct operating expense per mcfe was $0.12 in 2024 compared to $0.12 in the same period of 2023; • general and administrative expense per mcfe for 2024 increased 5% from the same period of 2023 primarily due to higher employee costs; • interest expense per mcfe for 2024 decreased 6% from the same period of 2023 due to lower debt balances; • our DD&A rate per mcfe for 2024 remained the same when compared to the same period of 2023; • drilled 52 net wells with a 100% success rate; and • our capital investment for 2024 was $654.0 million, which was within our initially announced range of $620.0 million to $670.0 million.
Removed
However, current regulatory requirements may change, currently unforeseen environmental incidents may occur, or past non-compliance with environmental laws or regulations may 12 be discovered. See Item 1A. Risk Factors – The natural gas industry is subject to extensive regulation . We do not believe we are affected differently by these regulations than others in the industry. General Overview.
Added
The year ended December 31, 2024 also included the following highlights to enhance our balance sheet, return capital to investors and preserve liquidity: • paid $77.5 million in dividends or $0.32 per common share compared to $0.32 per common share in 2023; • repurchased $65.3 million of our common stock compared to $19.0 million in 2023; • repurchased in the open market $79.7 million face value of our 4.875% senior notes due 2025 at a discount; and • enhanced liquidity with the accumulation of cash on hand of $304.5 million along with $1.3 billion available under our credit facility.
Removed
Our oil and gas operations are subject to various federal, state and local laws and regulations.
Added
We generated $944.5 million of cash from operating activities in 2024, which is $33.4 million lower when compared to 2023 and reflects lower realized prices combined with higher comparative working capital outflows.
Removed
Generally speaking, these regulations relate to matters that include, but are not limited to: • leases; • acquisition of seismic data; • location of wells, pads, roads, impoundments, facilities or rights of way; • size of drilling and spacing units or proration units; • number of wells that may be drilled in a unit; • unitization or pooling of oil and gas properties; • drilling, casing and completion of wells; • issuance of permits in connection with exploration, drilling, production, gathering, processing and transportation; • well production, maintenance, operations and security; • spill prevention and containment plans; • emissions permitting or limitations; • protection of endangered species; • use, transportation, storage and disposal of hazardous waste, fluids and materials incidental to oil and gas operations; • surface usage and the restoration of properties upon which wells have been drilled; • calculation and disbursement of royalty payments and production taxes; • plugging and abandoning of wells; • hydraulic fracturing; • water withdrawal and water transfer; • operation of underground injection wells to dispose of produced water and other liquids; • marketing of production; • transportation of production; and • health and safety of employees and contract service providers.
Added
The year ended December 31, 2024 also included the following highlights that emphasized our corporate sustainability and initiatives: • completed the MiQ certification for our Southwest Pennsylvania assets and re-certified an "A" grade; • continued to recycle approximately 100% of our produced water; and • expanded the installation and use of compressed air pneumatic controllers.
Removed
In August 2005, the United States Congress ("Congress") enacted the Energy Policy Act of 2005 ("EPAct 2005").
Added
Acquisitions During 2024, we invested $57.9 million to acquire unproved acreage compared to $40.1 million in 2023. We continue selective acreage leasing and lease renewals to consolidate our acreage positions in the Marcellus Shale play in Pennsylvania. Outlook for 2025 As we enter 2025, we believe we are positioned for sustainable long-term success.
Removed
Among other matters, EPAct 2005 amends the Natural Gas Act ("NGA") to make it unlawful for "any entity," including otherwise non-jurisdictional producers such as Range, to use any deceptive or manipulative device or contrivance in connection with the purchase or sale of natural gas or the purchase or sale of transportation services subject to regulation by the Federal Energy Regulatory Commission (the "FERC"), in contravention of rules prescribed by the FERC.
Added
For 2025, we expect our capital budget to be in the range of $650 million to $690 million for natural gas, NGLs and oil related activities, excluding any potential acquisitions, for 33 which we do not budget.
Removed
In January 2006, the FERC issued rules implementing this provision.
Added
As has been our historical practice, we will periodically review our capital expenditures throughout the year and may adjust the budget based on commodity prices, drilling success and other factors. We expect our 2025 capital budget to achieve modest growth in production relative to 2024 production, while also supporting our longer-term operational plans.
Removed
The rules make it unlawful in connection with the purchase or sale of natural gas subject to the jurisdiction of the FERC, or the purchase or sale of transportation services subject to the jurisdiction of the FERC, for any entity, directly or indirectly, to use or employ any device, scheme or artifice to defraud; to make any untrue statement of material fact or omit any such statement necessary to make the statements not misleading; or to engage in any act or practice that operates as a fraud or deceit upon any person.
Added
Our 2025 capital budget is focused on generating free cash flow while efficiently developing our resource base to achieve competitive full cycle returns for our stockholders. The prices we receive for our natural gas, NGLs and oil production are largely based on current market prices, which are beyond our control.
Removed
EPAct 2005 also gives the FERC authority to impose civil penalties for violations of the NGA.
Added
The price risk on a portion of our forecasted natural gas, NGLs and oil production for 2025 is partially mitigated by entering into commodity derivative contracts, and we intend to continue to enter into these types of contracts. We believe it is likely that commodity prices will continue to be volatile during 2025.
Removed
On January 11, 2024, FERC issued a final rule increasing the maximum civil penalty for violations of the NGA from $1,496,035 per day per violation to $1,544,521 per day per violation to account for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Improvement Act of 2015.
Added
Market Conditions We believe we are positioned for sustainable long-term success.
Removed
The anti-manipulation rule does not apply to activities that relate only to intrastate or other non-jurisdictional sales or gathering, but does apply to activities or otherwise non-jurisdictional entities to the extent the activities are conducted in connection with gas sales, purchases or transportation subject to the FERC’s jurisdiction which includes the reporting requirements under Order 704 (as defined and described below).
Added
We continue to monitor the impact of the actions of OPEC and other large producing nations, the Russia-Ukraine conflict, hostilities in the Middle East, global inventories of gas, NGLs and oil, future monetary and fiscal policy and governmental policies aimed at transitioning towards lower carbon energy, and we expect prices for commodities we produce to remain volatile given the complex dynamics of supply and demand that exist in the global energy markets.
Removed
Therefore, EPAct 2005 was a significant expansion of the FERC’s enforcement authority. Range has not been affected differently than any other producer of natural gas by this act.
Added
In fourth quarter 2024, natural gas prices declined based on the relatively mild early days of winter in the United States.
Removed
Failure to comply with applicable laws and regulations with respect to EPAct 2005 could result in substantial penalties and the regulatory burden on the industry increases the cost of doing business and affects profitability.
Added
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 due to infrastructure constraints, moderated reinvestment rates and core inventory exhaustion.
Removed
Although we believe we are in substantial compliance with all applicable laws and regulations with respect to EPAct 2005, such laws and regulations are frequently amended or reinterpreted. Therefore, we are unable to predict the future costs or impact of compliance.
Added
In addition, the global energy crisis experienced in recent years further highlighted the low cost and low emissions shale gas resource base in North America, supporting continued strong structural demand growth for United States liquefied natural gas exports, domestic industrial gas demand and power generation.
Removed
Additional proposals and proceedings that affect the oil and natural gas industry are regularly considered by Congress, the states, the FERC, other federal regulatory entities and the courts.
Added
Other factors such as geopolitical disruptions, supply chain disruptions, cost inflation, concerns over a potential economic recession and the pace and changes in global monetary policy may impact the demand for natural gas, NGLs and oil. We continue to assess and monitor the impact and consequences of these factors on our operations.
Removed
We cannot predict when or whether any such proposals may become effective. 13 In December 2007, the FERC issued a final rule on the annual natural gas transaction reporting requirements, as amended by subsequent orders on rehearing ("Order 704").
Added
Prices for various quantities of natural gas, NGLs and oil that we produce significantly impact our revenues and cash flows. Prices for commodities, such as hydrocarbons, are inherently volatile.
Removed
Under Order 704, wholesale buyers and sellers of more than 2.2 million Mmbtus of physical natural gas in the previous calendar year, including natural gas gatherers and marketers, are required to report to the FERC, on May 1 st of each year, aggregate volumes of natural gas purchased or sold at wholesale in the prior calendar year to the extent such transactions utilize, contribute to, or may contribute to the formation of price indices.
Added
Recently, natural gas prices have increased when compared to the fourth quarter 2024, with the average NYMEX monthly settlement price for natural gas increasing to $3.51 per mcf for January and $3.54 per mcf for February 2025 following cold winter weather. Oil prices slightly increased from December 2024, to $75.10 per barrel in January 2025.
Removed
It is the responsibility of the reporting entity to determine which individual transactions should be reported based on the guidance of Order 704. Order 704 also requires market participants to indicate whether they report prices to any index publishers and, if so, whether their reporting complies with the FERC’s policy statement on price reporting.
Added
The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the years ended December 31, 2024 and 2023.
Removed
Intrastate gas pipeline transportation rates are subject to regulation by state regulatory commissions. The basis for intrastate gas pipeline regulation, and the degree of regulatory oversight and scrutiny given to intrastate gas pipeline rates, varies from state to state.
Added
Year Ended December 31, 2024 2023 Benchmarks: Average NYMEX prices (a) Natural gas (per mcf) $ 2.27 $ 2.75 Oil (per bbl) 76.17 77.54 Mont Belvieu NGLs composite (per gallon) (b) 0.56 0.56 (a) Based on average of monthly last day settlement prices on the New York Mercantile Exchange ("NYMEX"). (b) Based on our estimated NGLs product composition per barrel.
Removed
Additional proposals and proceedings that might affect the gas industry are considered from time to time by Congress, the FERC, state regulatory bodies and the courts. We cannot predict when or if any such proposals might become effective or their impact, if any, on our operations.
Added
Our price realizations (not including the impact of our derivatives) may differ from the benchmarks for many reasons, including quality, location, or production being sold at different prices. 34 Natural Gas, NGLs and Oil Sales, Production and Realized Price Calculations Our revenues vary from year to year as a result of changes in realized commodity prices and production volumes.
Removed
We believe that the regulation of intrastate gas pipeline transportation rates will not affect our operations in any way that is materially different from its effects on similarly situated competitors. Natural gas processing. We depend on gas processing operations owned and operated by third parties.
Added
In 2024, natural gas, NGLs and oil sales decreased 5% from 2023 with a 7% decrease in realized prices (excluding cash settlements on our derivatives) partially offset by slightly higher production volumes.
Removed
There can be no assurance that these processing operations will continue to be unregulated in the future. However, although the processing facilities may not be directly related, other laws and regulations may affect the availability of gas for processing, such as state regulation of production rates and maximum daily production allowable from gas wells, which could impact our processing.
Added
The following table illustrates the primary components of natural gas, NGLs and oil sales for the last two years (in thousands): Year Ended December 31, 2024 2023 Change % Natural gas, NGLs and oil sales Natural gas $ 1,052,442 $ 1,234,308 $ (181,866 ) (15 )% NGLs 1,020,903 933,791 87,112 9 % Oil 140,505 166,562 (26,057 ) (16 )% Total natural gas, NGLs and oil sales $ 2,213,850 $ 2,334,661 $ (120,811 ) (5 )% Production is maintained through drilling success as we place new wells on production, which is partially offset by the natural decline of our natural gas, NGLs and oil reserves through production.
Removed
Gas gathering. Section 1(b) of the NGA exempts gas gathering facilities from FERC jurisdiction. We believe that our gathering facilities meet the tests the FERC has traditionally used to establish a pipeline system’s status as a non-jurisdictional gatherer. There is, however, no bright-line test for determining the jurisdictional status of pipeline facilities.
Added
Our production for the last two years is set forth in the following table: Year Ended December 31, 2024 2023 Change % Production (a) Natural gas (mcf) 545,415,974 538,084,671 7,331,303 1 % NGLs (bbls) 39,622,576 37,939,700 1,682,876 4 % Oil (bbls) 2,180,528 2,475,306 (294,778 ) (12 )% Total (mcfe) (b) 796,234,598 780,574,707 15,659,891 2 % Average daily production (a) Natural gas (mcf) 1,490,208 1,474,205 16,003 1 % NGLs (bbls) 108,258 103,944 4,314 4 % Oil (bbls) 5,958 6,782 (824 ) (12 )% Total (mcfe) (b) 2,175,504 2,138,561 36,943 2 % (a) Represents volumes sold regardless of when produced.
Removed
Moreover, the distinction between FERC-regulated transmission services and federally unregulated gathering services is the subject of litigation from time to time, so the classification and regulation of some of our gathering facilities may be subject to change based on future determinations by the FERC and the courts.
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 and natural gas, which is not indicative of the relationship between oil and natural gas prices. 35 Our average realized price (including all derivative settlements and third-party transportation costs paid by Range) received during 2024 was $1.84 per mcfe compared to $1.88 per mcfe in 2023.
Removed
Thus, we cannot guarantee that the jurisdictional status of our gas gathering facilities will remain unchanged. We depend on gathering facilities owned and operated by third parties to gather production from our properties, and therefore we are affected by the rates charged by these third parties for gathering services.
Added
The majority of our production is sold at market-sensitive prices. We believe computed final realized prices should include the impact of transportation, gathering, processing and compression expense. Average sales prices (excluding derivative settlements) do not include any derivative settlements or third-party transportation costs which are reported in transportation, gathering and compression expense on the accompanying consolidated statements of income.
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Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
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Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
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2023 filing
2024 filing
Biggest changeITEM 7A. Quantitative and Qualitative Disclosures about Market Risk 56 Market Risk 56 Commodity Price Risk 57 Other Commodity Risk 57 Commodity Sensitivity Analysis 57 Counterparty Risk 58 Interest Rate Risk 58 ITEM 8. Financial Statements and Supplementary Data F- 1
Biggest changeITEM 7A. Quantitative and Qualitative Disclosures about Market Risk 47 Commodity Price Risk 47 Derivative Instruments 47 Other Commodity Risk 47 Commodity Sensitivity Analysis 48 Counterparty Risk 48 Interest Rate Risk 48 ITEM 8. Financial Statements and Supplementary Data F- 1