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What changed in RANGE RESOURCES CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of RANGE RESOURCES CORP's 2024 and 2025 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 2025 report.

+233 added−219 removedSource: 10-K (2026-02-24) vs 10-K (2025-02-25)

Top changes in RANGE RESOURCES CORP's 2025 10-K

233 paragraphs added · 219 removed · 187 edited across 6 sections

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

57 edited+24 added−14 removed143 unchanged
Biggest changeThe 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.
Biggest changeSee also above, Our producing properties are concentrated in Pennsylvania, making us vulnerable to risks associated with operating in one geographic and political region. Although we have some contractual control over the transportation of our products, material changes in these business relationships, including the financial condition of the contractual counterparties, could materially affect our operations.
In that case, the market price of our common stock could decline or, if severe enough, the entire value of an investment in our securities could become worthless. Economic risks related to our business Volatility of natural gas, NGLs and oil prices significantly affects our cash flow and capital resources and could hamper our ability to operate economically.
In that case, the market price of our common stock could decline or, if severe enough, the entire value of an investment in our securities could become worthless. Economic risks related to our business Volatility of natural gas, NGLs and oil prices affects our cash flow and capital resources and could significantly hamper our ability to operate economically.
Our operations may be impacted by new and amended laws and regulations and reinterpretations of existing laws and regulations or increased government enforcement relating to environmental laws. For example, properly handled drilling fluids and produced water are currently exempt from regulation as hazardous waste under RCRA, and instead are regulated under RCRA’s non-hazardous waste provisions.
Our operations may be impacted by new and amended laws and regulations, reinterpretations of existing laws and regulations or increased government enforcement relating to environmental laws. For example, properly handled drilling fluids and produced water are currently exempt from regulation as hazardous waste under RCRA, and instead are regulated under RCRA’s non-hazardous waste provisions.
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.
However, this program may be suspended, modified or discontinued by our 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.
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.
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; • 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.
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.
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 land 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; 19 • 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.
Some of these environmental laws and regulations may impose strict, joint and several liability regardless of fault or knowledge, which could subject us to liability for conduct that was lawful at the time it occurred, or conditions caused by prior owners or operators or which relate to third party sites where we have taken materials for recycling or disposal.
Some of these environmental laws and regulations may impose strict, joint and several liability regardless of fault or knowledge, which could subject us to liability for conduct that was lawful at the time it occurred, or conditions caused by prior owners or operators or 22 which relate to third-party sites where we have taken materials for recycling or disposal.
If any of these hazards occur, we could sustain substantial losses as a result of: • personal injury or loss of life; • damage to or destruction of property, natural resources and equipment; • pollution or other environmental damage; • investigatory and cleanup responsibilities; • regulatory investigations and penalties or lawsuits; • suspension of operations by regulatory authorities; and • repairs and remediation to resume operations.
If any of these hazards occur, we could sustain substantial losses as a result of: • personal injury or loss of life; • damage to or destruction of property, natural resources and equipment; • pollution or other environmental damage; • investigatory and cleanup responsibilities; • regulatory investigations and penalties or lawsuits; • suspension of operations by regulatory authorities; and 20 • repairs and remediation to resume operations.
These cost increases could reduce our profitability, cash flow and ability to conduct development activities as planned . We rely on third-party contractors to provide key services and equipment for our operations. Historically, our capital and operating costs have risen during periods of increasing oil, NGLs and gas prices.
These cost increases could reduce our profitability, cash flow and ability to conduct development activities as planned . We rely on third-party contractors to provide key services and equipment for our operations. Historically, our capital and operating costs have risen during periods of increasing natural gas, NGLs and oil prices.
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.
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, regulatory and zoning approvals and other factors.
Increased levels of drilling activity in the natural gas and oil industry could lead to increased costs of some drilling equipment, materials and supplies. Such costs may rise faster than increases in our revenue, thereby negatively impacting our profitability, cash flow and ability to conduct development activities as planned and on budget.
Increased levels of drilling activity in the natural gas, NGLs and oil industry could lead to increased costs of some drilling equipment, materials and supplies. Such costs may rise faster than increases in our revenue, thereby negatively impacting our profitability, cash flow and ability to conduct development activities as planned and on budget.
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).
Increases in our level of debt may: • require us to dedicate a greater 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).
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.
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.
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.
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.
Furthermore, the shift to a hybrid systems model including on-premises and cloud environments has transformed how systems interconnect, how data is stored, how users interact with applications and what end user devices are utilized. This shift has resulted in additional cybersecurity risk.
Furthermore, the shift to a hybrid systems model including on-premises and cloud environments has transformed how 27 systems interconnect, how data is stored, how users interact with applications and what end user devices are utilized. This shift has resulted in additional cybersecurity risk.
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.
In such an event, we 18 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.
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.
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.
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.
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 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, NGLs 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, sanctions, tariffs and taxation, including further legislation requiring, subsidizing or providing tax benefits for the use of alternative energy sources and fuels.
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.
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.
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.
These statutes include the federal ESA, the Migratory Bird Treaty Act, the CWA, CERCLA and similar state programs, including the Pennsylvania Oil and Gas Act and the Clean Streams Law and related regulations.
In January 2025, the Federal Reserve issued a statement announcing it has withdrawn from the Network of Central Banks and Supervisors for the Greening of the Financial System.
However in January 2025, the Federal Reserve issued a statement announcing it has withdrawn from the Network of Central Banks and Supervisors for the Greening of the Financial System.
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.
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, transportation 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.
Also, in November 2021, the Federal Reserve issued a statement in support of the efforts of the Network of Greening the Financial System, of which the Federal Reserve is a member, to identify key issues and potential solutions for the climate-related challenges most relevant to central banks and supervisory authorities.
For example, in November 2021, the Federal Reserve issued a statement in support of the efforts of the Network of Greening the Financial System, of which the Federal Reserve is a member, to identify key issues and potential solutions for the climate-related challenges most relevant to central banks and supervisory authorities.
For additional details please refer to Government Regulation in Item 1 , Environmental and Occupational Health and Safety Matters , specifically the Air emissions and Climate change sections above.
For additional details please refer to Governmental Regulation in Item 1 , Environmental and Occupational Health and Safety Matters , specifically the Air emissions and Climate change sections above.
Natural gas, NGLs and oil prices are volatile, and a decline in prices adversely affects our profitability and financial condition. As a commodity business, the oil and gas industry is typically cyclical and we expect the volatility to continue.
Natural gas, NGLs and oil prices are volatile, and a decline in prices could adversely affect our profitability and financial condition. As a commodity business, the oil and gas industry is typically cyclical and we expect the volatility to continue.
To a limited extent, we maintain business interruption insurance related to three third-party processing plants and connecting lines for our wells in Pennsylvania where we are insured for potential catastrophic losses from the interruption of production caused by a covered loss of or damage to the processing plants; however, such insurance is limited and may not adequately protect us from all potential consequences, damages and losses.
To a limited extent, we maintain business interruption insurance related to key facilities and connecting lines for our wells in Pennsylvania where we are insured for potential catastrophic losses from the interruption of production caused by a covered loss of or damage to the processing plants; however, such insurance is limited and may not adequately protect us from all potential consequences, damages and losses.
These cost increases result from a variety of factors beyond our control, such as increases in the cost of electricity, steel and other raw materials that we and our vendors rely upon; increased demand for labor, services and materials as drilling and completions activity increases; and increased taxes.
These cost increases result from a variety of factors beyond our control, such as increases in the cost of electricity, steel and other raw materials that we and our vendors rely upon; increased demand for labor, services and materials as drilling and completions activity increases; tariffs on foreign goods; and increased taxes.
Companies which do not adapt to or comply with investor or stockholder ESG expectations and standards or which are perceived to have not responded appropriately to the growing concern for ESG issues, regardless of whether there is a legal requirement to do so, may suffer from reputational damage and the financial condition, results of operations or cash flows of such a company could be materially and adversely affected.
Companies which do not adapt to or comply with investor or stockholder ESG expectations and standards or which are perceived to have not responded appropriately to the growing concern for ESG issues, regardless of whether there is a legal requirement to do so, may suffer from reputational damage and the financial condition, results of operations or cash flows of such a company could be materially and adversely affected, or could also have limited access to certain capital markets.
Spills or other unauthorized releases of hazardous or regulated substances by us, our contractors or resulting from our operations could expose us to material losses, expenditures and liabilities, civil and criminal liabilities, under environmental laws and regulation and we are currently and have in the past been involved in such investigations, remediation and monitoring activities.
Spills or other unauthorized releases of hazardous or regulated substances by us, our contractors or resulting from our operations could expose us to material losses, expenditures and liabilities, including civil and criminal liabilities, in each case under environmental laws and regulations and we are currently and have in the past been involved in such investigations, remediation and monitoring activities.
The Pennsylvania Office of the Attorney General has publicly announced investigations and charges generally related to our industry in Pennsylvania.
The Pennsylvania Office of the Attorney General has previously announced investigations and charges generally related to our industry in Pennsylvania.
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.
Natural gas prices are likely to affect us the most because approximately 65% of our proved reserves were natural gas as of December 31, 2025 and, at times in the past, natural gas prices have been low compared to our costs to produce.
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.
We are a borrower under fixed rate senior notes and maintain a floating rate bank credit facility which had $118.0 million of borrowings as of December 31, 2025. 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.
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.
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, which may become more sophisticated with the use of artificial intelligence; • 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.
Federal and state regulation of natural gas and oil production and transportation, tax and energy policies, changes in supply and demand, pipeline pressures, damage to or destruction of pipelines and general economic conditions could adversely affect our ability to produce, gather and transport natural gas, NGLs and oil.
Federal and state regulation of natural gas and oil production and transportation, tax and energy policies, changes in supply and demand, pipeline pressures, damage to or destruction of pipelines, obstacles or impediments due to coal or other mineral extraction activities and general economic conditions could adversely affect our ability to produce, gather and transport natural gas, NGLs and oil.
At this time, we cannot predict the potential impact of such laws, regulations, regional or international initiatives or compacts, litigation, ESG ratings or financing restrictions due to climate concerns on our future consolidated financial condition, results of operations or cash flows; however, such impacts could be material and have material negative consequences to our business.
At this time, we cannot predict the potential impact of such laws, regulations, regional or international initiatives or compacts, litigation, ESG ratings or financing restrictions due to climate concerns on our future consolidated financial condition, results of operations or cash flows; however, such impacts could be material and have material negative consequences to our business. 24 Information concerning our reserves and future net cash flow are estimates and may not match our results .
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.
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. Oil and natural gas development generates GHG emissions.
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.
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, 2025, our share repurchase program had $785.5 million remaining authorization.
Further, the loss of key technical professionals with extensive experience in our core operating area could be difficult to replace if they were to leave and the loss of such employees could adversely affect the costs of drilling, completing and operating our wells. Risks related to our common stock Common stockholders may be diluted if additional shares are issued .
Further, the loss of key technical professionals with extensive experience in our core operating area could be difficult to replace if they were to leave and the loss of such employees could adversely affect the costs of drilling, completing and operating our wells.
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.
Should Pennsylvania or the federal government ban hydraulic fracturing, it would preclude economic development of our Marcellus Shale reserves potentially resulting in severe negative financial consequences to us. We use a significant amount of water in our hydraulic fracturing operations.
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.
The market price of our common stock has been volatile. From January 1, 2023 to December 31, 2025, the price of our common stock reported by the New York Stock Exchange ranged from a low of $22.61 per share to a high of $43.50 per share.
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.
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.
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.
There are numerous uncertainties inherent in estimating quantities of proved natural gas, NGLs and oil reserves and their values, including many factors beyond our control.
Climate related regulations and initiatives could expose us to significant costs and restrictions on operations . There is an ongoing public debate as to the extent to which our climate is changing, the potential causes of climate change and its potential impacts.
There is an ongoing public debate as to the extent to which our climate is changing, the potential causes of climate change and its potential impacts.
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.
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. Payment of dividends may be limited or prevented due to the restrictions that are defined within our bank credit facility.
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.
Further, in November 2024, Cecil Township, located in Washington County, Pennsylvania, adopted an ordinance that 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. See also above Land Use and Setbacks.
Further, new legislation, proposed rulemaking and ordinance amendments affecting the industry are under constant review for more expansive requirements and rules on our products and operations. Compliance with new and expanding laws from numerous governmental departments and agencies often increases our cost of doing business, delays our operations and decreases our profitability.
Further, new legislation, proposed rulemaking and ordinance amendments affecting the industry are under constant review often with more expansive requirements and rules on our products and operations.
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.
Subsequent legal challenges resulted in a July 2022 Commonwealth Court of Pennsylvania order staying Pennsylvania’s participation in RGGI, and, in November 2023, the 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 then appealed to the Pennsylvania Supreme Court.
In other cases, we have entered into firm transportation arrangements where we are obligated to pay fees on minimum volumes regardless of actual volume throughput.
In some cases, we do not purchase firm transportation on third-party facilities and, as a result, our production transportation can be interrupted by those having firm arrangements. In other cases, we have entered into firm transportation arrangements where we are obligated to pay fees on minimum volumes regardless of actual volume throughput.
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.
Despite the declining trend, some 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.
We may incur significant costs associated with responding to these initiatives and such actions may materially adversely affect our financial results. Complying with any resulting additional legal or regulatory requirements that are substantial or prevent our activity could have a material adverse effect on our business, financial condition, cash flows and results of operations.
Complying with any resulting additional legal or regulatory requirements that are substantial or prevent our activity could have a material adverse effect on our business, financial condition, cash flows and results of operations. 25 Conservation measures and technological advances could reduce demand for oil and natural gas .
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 .
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. Competition in the oil and gas industry is intense, making it more difficult for us to acquire properties, market products and secure and retain trained personnel.
We have initiated our own internal goals to reduce GHG emissions from our operations, such as us setting a goal of net zero Scope 1 and 2 GHG emissions by 2025, which we expect to achieve.
We also initiated our 23 own internal goals to reduce GHG emissions to net zero Scope 1 and 2 GHG emissions by 2025, which we achieved in 2024 and maintained in 2025.
Our management team has specifically identified and scheduled certain drilling locations for future multi-year drilling activities on our existing acreage.
Our identified drilling locations are scheduled out over multiple years, making them susceptible to uncertainties that could materially alter the occurrence or timing of their drilling . Our management team has specifically identified and scheduled certain drilling locations for future multi-year drilling activities on our existing acreage.
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 .
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. Unless we replace our reserves, our reserves and production will decline, which could adversely affect our business, financial condition and results of operations.
Our identified drilling locations are scheduled out over multiple years, making them susceptible to uncertainties that could materially alter the occurrence or timing of their drilling . Unless we successfully replace the reserves that we produce, our reserves will decline as reserves are depleted, eventually resulting in a decrease in production and lower revenues and cash flow from operations.
Unless we successfully replace the reserves that we produce, our reserves will decline as reserves are depleted, eventually resulting in a decrease in natural gas, NGLs and oil production and lower revenues and cash flow from operations. Our future production is, therefore, highly dependent on our level of success in finding or acquiring additional reserves.
However, management’s assessment of pending claims and litigation could be inaccurate and subsequent events could result in material liabilities from such claims or litigation. Our success depends on key members of our management and our ability to attract and retain experienced technical and other professional personnel .
However, management’s assessment of pending claims and litigation could be inaccurate and subsequent events could result in material liabilities from such claims or litigation. 26 Risks related to our common stock Common stockholders may be diluted if additional shares are issued .
Certain potential legislation, such as a ban on hydraulic fracturing, could even preclude our ability to economically develop our reserves.
Compliance with new and expanding laws from numerous governmental departments and agencies often increases our cost of doing business, delays our operations and decreases our profitability and additional uncertainty can be introduced through varying court interpretations of such laws. Certain potential legislation, such as a ban on hydraulic fracturing, could even preclude our ability to economically develop our reserves.
Removed
Although we have some contractual control over the transportation of our products, material changes in these business relationships, including the financial condition of the contractual counterparties, could materially affect our operations. In some cases, we do not purchase firm transportation on third-party facilities and as a result, our production transportation can be interrupted by those having firm arrangements.
Added
Our ability to acquire additional drilling locations and to find and develop reserves in the future will depend on our ability to evaluate and select suitable properties and to consummate transactions in a highly competitive environment for acquiring properties, marketing products and securing equipment and trained personnel.
Removed
In September 2020, the PEQB approved a draft resolution to enter the Regional Greenhouse Gas Initiative ("RGGI"), a cooperative effort among the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont to cap and reduce power sector CO 2 emissions from fossil-fuel-fired electric power plants.
Added
Also, there is substantial competition for capital available for investment in the oil and natural gas industry. Many of our competitors possess and employ financial, technical and personnel resources substantially greater than ours.
Removed
However, in response to the PEQB's resolution to join the RGGI, the Pennsylvania General Assembly adopted a resolution on December 15, 2021, expressing its disapproval of the state's efforts to enroll in RGGI, stating that the RGGI would drive up energy costs and result in thousands of lost jobs. On January 10, 2022, former Governor Wolf vetoed the disapproval resolution.
Added
Those companies may be able to pay more for productive natural gas properties and exploratory drilling locations and to evaluate, bid for and purchase a greater number of properties and prospects than our financial or personnel resources permit.
Removed
In April 2022, the Pennsylvania senate failed to override former Governor Wolf's veto and as a result, Pennsylvania officially joined the RGGI. However, in July 2022, the Commonwealth Court of Pennsylvania issued an order blocking the state from participating in the RGGI until the court ruled on its constitutionality.
Added
In addition, other companies may be able to offer better compensation packages to attract and retain qualified personnel than we are able to offer. The cost to attract and retain qualified personnel may increase substantially in the future.
Removed
Moreover, in 2023, Pennsylvania Governor Josh Shapiro created the "RGGI Working Group" and tasked them with measuring RGGI or an alternative against a three-part test: protect and create energy jobs, take real action to address climate change, and ensure reliable, affordable power for consumers in the long-term.
Added
We may not be able to successfully compete in the future in acquiring prospective reserves, developing reserves, marketing hydrocarbons, attracting and retaining trained personnel and raising additional capital, which could have a material adverse effect on our business. 17 Our debt obligations may limit our liquidity and financial flexibility .
Removed
While the RGGI Working Group agreed that a cap-and-trade regulation would meet these goals, they did not conclude that RGGI is the correct program for Pennsylvania, citing wider concerns regarding increased energy costs and job loss.
Added
Separately, the DEP received a citizen petition for rulemaking to expand setback distances from natural gas operations across Pennsylvania. On December 9, 2025, the Pennsylvania Environmental Quality Board (PEQB) accepted the citizen petition for rulemaking moving the petition forward for the DEP’s review and study of the requested rulemaking.
Removed
The RGGI Working Group gave Governor Shapiro a list of recommendations in a four-page memo, suggesting, among other things, Governor Shapiro explore a cap-and-trade program that includes Washington, D.C. and 13 states whose electric grids are run by PJM Interconnection, while encouraging the PJM-run states to reach consensus on carbon trading.
Added
We do not expect action on the requested rulemaking for the foreseeable future and believe that the petition and requested rulemaking are unlawful. We will continue to monitor this petition, the requested rulemaking and any related developments to assess potential impacts to our operations. Currently there are a few states that have elected to ban or severely limit hydraulic fracturing.
Removed
As a result on March 13, 2024, Governor Shapiro announced a proposal to adopt a carbon-pricing program in the state similar to RGGI. As part of that announcement, Governor Shapiro said he would support legislation to make Pennsylvania’s power plant owners pay for their greenhouse gas emissions and require utilities to buy more electricity from renewable sources.
Added
We may not be able to replace reserves through our exploration, development and extraction activities or by acquiring properties at acceptable costs which would result in a reduction in proved reserves and production over time.
Removed
More recently, in September 2024, the Pennsylvania Senate voted in favor of a bill repealing the carbon tax portion of RGGI, but the bill was not considered in the Pennsylvania House of Representatives prior to the conclusion of the legislative session. The same legislation was reintroduced in 2025 and passed the Pennsylvania Senate in 2025.
Added
If we are unable to 21 replace our current and future production, our revenues will decrease and our business, financial condition and results of operations may be adversely affected. 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 .
Removed
The reintroduced legislation awaits consideration in the Pennsylvania House of Representatives. In the absence of participation in the RGGI, the DEP is evaluating other regulations to achieve the emissions reductions.
Added
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. Changes in intrastate pipeline rate design for Section 311 service could increase fixed transportation costs and reduce flexibility.
Removed
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.
Added
If intrastate pipelines that provide interstate transportation under the Natural Gas Policy Act Section 311 adopt or maintain rate designs with higher fixed (reservation) charges, our transportation costs could increase and our flexibility to manage volumes through variable charges could decline.
Removed
We continue to evaluate a range of technology and other measures, such as carbon offsets, that could assist with meeting this goal. Failure or a perception (whether or not valid) of failure to meet our GHG emissions goals could damage our reputation and negatively impact our stock price.

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Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeWe 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.
Biggest changeEnvironmental 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.
Added
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.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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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.
Biggest changeThe graph assumes that $100 was invested in the Company’s common stock and each index on December 31, 2020 and that dividends were reinvested. 2020 2021 2022 2023 2024 2025 Range Resources Corporation $ 100 $ 266 $ 375 $ 462 $ 551 $ 545 S&P Oil & Gas Exploration & Production Index 100 167 242 251 248 243 S&P Small Cap 600 Index 100 127 106 123 134 142 2025 Self-Constructed Peer Group (a) 100 169 248 253 301 319 (a) The 2025 Self-Constructed Peer Group includes the SPDR S&P Midcap 400 and the SPDR S&P Oil and Gas E&P ETF and the following thirteen companies: Antero Resources Corporation, Civitas Resources, Inc., Chord Energy Corporation, CNX Resources Corporation, Comstock Resources, Inc., Coterra Energy, Inc., EQT Corporation, Expand Energy Corporation, Magnolia Oil & Gas Corporation, Matador Resources, Murphy Oil, Ovintiv Inc. and SM Energy Company.
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.
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 2026 Proxy Statement, which will be filed with the SEC not later than 120 days after December 31, 2025.
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.
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 2025, trading volume averaged approximately 2.9 million shares per day.
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 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, 2025, were held as treasury stock and we have approximately $785.5 million of remaining authorization under the program.
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.
Holders of Record Pursuant to the records of our transfer agent, as of February 20, 2026, there were approximately 795 registered 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 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.
Purchases of our common stock in fourth quarter 2025 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 2025 239,289 $ 35.25 239,289 $ 831,049,000 November 2025 247,400 $ 37.95 247,400 $ 821,659,000 December 2025 1,002,600 $ 36.04 1,002,600 $ 785,530,000 1,489,289 1,489,289 (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.
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.
The 2025 Self-Constructed Peer Group is a market capitalization-weighted index in which each of the six Compensation Peer Group companies with the highest percentage of dry gas reserves are included twice. The six companies included twice are Antero Resources Corporation, CNX Resources Corporation, Comstock Resources, Inc., Coterra Energy Inc., EQT Corporation and Expand Energy Corporation.
Removed
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).

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeITEM 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
Biggest changeITEM 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 33 Management's Discussion and Analysis of Financial Condition, Cash Flows, Capital Resources and Liquidity 40 Management's Discussion of Critical Accounting Estimates 44

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeDuring 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.
Biggest changeDuring 2025, our financial and operating performance included the following results: • revenue from the sale of natural gas, NGLs and oil increased 27% from the same period of 2024 with a 24% increase in average realized prices (before cash settlements on our derivatives) combined with a 2% increase in production volumes; • revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) increased 11% from the same period of 2024; 33 • transportation, gathering, processing and compression expense per mcfe was $1.50 in 2025 compared to $1.48 in the same period of 2024 primarily due to the increase of electricity costs and FERC rates; • direct operating expense per mcfe increased to $0.13 in 2025 compared to $0.12 in the same period of 2024 due to an increase in workover costs; • general and administrative expense per mcfe for 2025 remained the same at $0.22 compared to the same period of 2024; • interest expense per mcfe for 2025 decreased 13% from the same period of 2024 due to lower debt balances; • our DD&A rate per mcfe for 2025 remained the same compared to the same period of 2024; • drilled and completed 53 net wells with a 100% success rate; The year ended December 31, 2025 also included the following returns of capital and balance sheet highlights: • paid $85.7 million in dividends, increasing per share dividend by 12.5% to an annual $0.36 per common share compared to $0.32 per common share in 2024; • repurchased $230.6 million of our common stock compared to $65.3 million in 2024; • repurchased in the open market $2.2 million principal amount of our 4.875% senior notes due 2025 at a discount and repaid the remaining $606.5 million principal balance of our 4.875% senior notes due 2025 at par by utilizing cash on hand and borrowing on our credit facility; • maintained substantial liquidity with the accumulation of cash on hand of $204,000 along with $1.7 billion available under our credit facility; • enabled longer laterals and enhanced efficiency through continued selective acreage leasing and lease renewals to consolidate our acreage positions in the Marcellus Shale play in Pennsylvania by investing $51.8 million to acquire unproved acreage; and • our capital investment for 2025 was $673.8 million, which was within our announced range of $650.0 million to $690.0 million.
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.
Overview of Our Business We are an independent natural gas, NGLs and oil company engaged in the exploration, development and acquisition of natural gas, NGLs and oil properties located in the Appalachian region of the United States.
Income Taxes We are subject to income and non-income-based taxes under federal, state and local jurisdictions in which we operate. Historically, we have generated and carried forward net operating losses ("NOL") in amounts sufficient to offset the majority of our taxable income at the federal level.
Income Taxes We are subject to income-based and non-income-based taxes under federal, state and local jurisdictions in which we operate. Historically, we have generated and carried forward net operating losses ("NOL") in amounts sufficient to offset the majority of our taxable income at the federal level.
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.
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 global demand for natural gas, NGLs and oil. We continue to assess and monitor the impact and consequences of these factors on our business and operations.
Under the successful efforts method of accounting, successful exploration drilling costs and all development costs are capitalized and these costs are systematically charged to expense using the units of production method based on proved developed natural gas and oil reserves as estimated by our engineers and audited by independent engineers.
Under the successful efforts method of accounting, successful exploration drilling costs and all development costs are capitalized and these costs are systematically charged to expense using the units of production method based on proved developed natural gas, NGLs and oil reserves as estimated by our engineers and audited by independent engineers.
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.
This expense category is primarily the Pennsylvania impact fee. In 2012, Pennsylvania enacted an "impact fee" on unconventional natural gas, NGLs 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.
We believe our short-term and long-term liquidity is adequate to fund our current 42 operations and our near-term and long-term funding requirements including our capital spending programs, repayment of debt maturities and dividends.
We believe our short-term and long-term liquidity is adequate to fund our current operations and our near-term and long-term funding requirements including our capital spending programs, repayment of debt maturities and dividends.
Delivery Commitments We have various volume delivery commitments that we expect to be able to fulfill from our own production; however, we may purchase third-party volumes to satisfy our commitments or pay demand fees for commitment shortfalls, should they occur. As of December 31, 2024, our delivery commitments through 2037 are included in Note 13 to our consolidated financial statements.
Delivery Commitments We have various volume delivery commitments that we expect to be able to fulfill from our own production; however, we may purchase third-party volumes to satisfy our commitments or pay demand fees for commitment shortfalls, should they occur. As of December 31, 2025, our delivery commitments through 2037 are included in Note 13 to our consolidated financial statements.
The next scheduled borrowing base re-determination is during the spring of 2025. We currently must comply with certain financial and non-financial covenants, including limiting dividend payments, debt incurrence and requirements that we maintain certain financial ratios (as defined in our bank credit agreement). We were in compliance with all such covenants at December 31, 2024.
The next scheduled borrowing base re-determination is during the spring of 2026. We currently must comply with certain financial and non-financial covenants, including limiting dividend payments, debt incurrence and requirements that we maintain certain financial ratios (as defined in our bank credit agreement). We were in compliance with all such covenants at December 31, 2025.
All derivative instruments, other than those that meet the normal purchase and normal sale scope exception or other derivative scope exceptions, are recorded at fair market value in accordance with GAAP and are included in our consolidated balance sheets as assets or liabilities. At December 31, 2024, our derivatives program includes swaps, collars, three-way-collars and swaptions.
All derivative instruments, other than those that meet the normal purchase and normal sale scope exception or other derivative scope exceptions, are recorded at fair market value in accordance with GAAP and are included in our consolidated balance sheets as assets or liabilities. At December 31, 2025, our derivatives program includes swaps, collars, three-way-collars and swaptions.
(b) Includes amounts expected to be received as sublease income. (c) Derivative obligations represent net liabilities determined in accordance with master netting arrangements for commodity derivatives that were valued as of December 31, 2024. Our derivatives are measured and recorded at fair value and are subject to market and credit risk.
(b) Includes amounts expected to be received as sublease income. (c) Derivative obligations represent net liabilities determined in accordance with master netting arrangements for commodity derivatives that were valued as of December 31, 2025. Our derivatives are measured and recorded at fair value and are subject to market and credit risk.
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.
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 2026 capital budget to achieve modest growth in production relative to 2025 production, while also supporting our longer-term operational plans.
The ultimate liquidation value will be dependent upon actual future commodity prices which may differ materially from the inputs used to determine fair value as of December 31, 2024. See Note 8 to our consolidated financial statements. (d) The obligations above represent our minimum financial commitments pursuant to the terms of these contracts.
The ultimate liquidation value will be dependent upon actual future commodity prices which may differ materially from the inputs used to determine fair value as of December 31, 2025. See Note 8 to our consolidated financial statements. (d) The obligations above represent our minimum financial commitments pursuant to the terms of these contracts.
We currently pay federal income taxes and state income taxes in the Commonwealth of Pennsylvania. See Note 4 to our consolidated financial statements for more information. 44 Proved Reserves To maintain and grow production and cash flow, we must continue to develop existing proved reserves and locate or acquire new natural gas, NGLs and oil reserves.
We currently pay federal income taxes and state income taxes in the Commonwealth of Pennsylvania. See Note 4 to our consolidated financial statements for more information. 43 Proved Reserves To maintain and grow production and cash flow, we must continue to develop existing proved reserves and locate or acquire new natural gas, NGLs and oil reserves.
The following table summarizes DD&A expenses per mcfe for the last two years: Year Ended December 31, 2024 2023 Change % DD&A Depletion and amortization $ 0.44 $ 0.44 $ — — % Depreciation — — — — % Accretion and other 0.01 0.01 — — % Total DD&A expense $ 0.45 $ 0.45 $ — — % Other Operating Expenses Our total operating expenses also include other expenses that generally do not trend with production.
The following table summarizes DD&A expenses per mcfe for the last two years: Year Ended December 31, 2025 2024 Change % DD&A Depletion and amortization $ 0.44 $ 0.44 $ — — % Depreciation — — — — % Accretion and other 0.01 0.01 — — % Total DD&A expense $ 0.45 $ 0.45 $ — — % Other Operating Expenses Our total operating expenses also include other expenses that generally do not trend with production.
It should not be assumed that the standardized measure is the current market value of our estimated proved reserves. 46 Accounting Standards Not Yet Adopted Refer to Note 2 to our consolidated financial statements for a discussion of new accounting pronouncements that may affect us in the future. I TEM 7A.
It should not be assumed that the standardized measure is the current market value of our estimated proved reserves. 45 Accounting Standards Not Yet Adopted Refer to Note 2 to our consolidated financial statements for a discussion of new accounting pronouncements that may affect us in the future. I TEM 7A.
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.
The price risk on a portion of our forecasted natural gas, NGLs and oil production for 2026 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 2026.
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.
Prices for natural gas, NGLs, and oil fluctuate widely and affect: • our revenues, profitability and cash flow; • the amount of cash flow available to us for reinvestment or return to our stockholders; • the quantity of natural gas, NGLs and oil that we can economically produce; • the quantity of natural gas, NGLs and oil shown as proved reserves; and • our ability to borrow and raise additional capital, if needed.
None of the risks discussed below changed materially from December 31, 2023 to December 31, 2024. Commodity Price Risk We are exposed to market risks related to the volatility of natural gas, NGLs and oil prices as the volatility of these prices continues to impact our industry. We expect commodity prices to remain volatile and unpredictable in the future.
None of the risks discussed below changed materially from December 31, 2024 to December 31, 2025. Commodity Price Risk We are exposed to market risks related to the volatility of natural gas, NGLs and oil prices as the volatility of these prices continues to impact our industry. We expect commodity prices to remain volatile and unpredictable in the future.
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.
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, 2025 and 2024.
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.
Longer term natural gas futures prices remain constructive 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.
Actual results could differ from the estimates and assumptions used. 45 Estimated Quantities of Net Reserves We use the successful efforts method of accounting for natural gas, NGLs and oil producing activities as opposed to the alternate acceptable full cost method.
Actual results could differ from the estimates and assumptions used. 44 Estimated Quantities of Net Reserves We use the successful efforts method of accounting for natural gas, NGLs and oil producing activities as opposed to the alternate acceptable full cost method.
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.
Our revenues, profitability and future growth depend substantially on prevailing prices for natural gas, NGLs and oil and on our ability to economically find, develop, acquire, produce and sell these reserves. Commodity prices have been and are expected to remain volatile.
C ommodity Sensitivity Analysis The following table shows the fair value of our derivative contracts and the hypothetical change in fair value that would result from a 10% and a 25% change in commodity prices at December 31, 2024.
C ommodity Sensitivity Analysis The following table shows the fair value of our derivative contracts and the hypothetical change in fair value that would result from a 10% and a 25% change in commodity prices at December 31, 2025.
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.
Our 2026 capital budget is focused on generating free cash flow while efficiently developing our resource base to achieve competitive full cycle 32 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.
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 and marketing revenue was $133.0 million in 2024 compared to $206.6 million in 2023.
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 and marketing revenue was $172.6 million in 2025 compared to $133.0 million in 2024.
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.
For similar discussions of the year ended December 31, 2024 compared to December 31, 2023 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, 2024, which was filed with the SEC on February 25, 2025.
Although we expect cash flows to be sufficient to fund our expected 2025 capital program, we may elect to use the bank credit facility or raise funds through new debt or equity offerings or from other sources of financing. Bank Credit Facility Our bank credit facility is secured by substantially all of our assets.
Although we expect cash flows to be sufficient to fund our expected 2026 capital program and operations, we may elect to use the bank credit facility or raise funds through new debt or equity offerings or from other sources of financing. Bank Credit Facility Our bank credit facility is secured by substantially all of our assets.
The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the years ended December 31, 2024 and 2023.
The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the years ended December 31, 2025 and 2024.
At December 31, 2024, the after-tax present value of estimated future net cash flows from our proved reserves was $4.7 billion compared to $6.8 billion at December 31, 2023. The present value of future net cash flows does not purport to be an estimate of the fair market value of our proved reserves.
At December 31, 2025, the after-tax present value of estimated future net cash flows from our proved reserves was $9.6 billion compared to $4.7 billion at December 31, 2024. The present value of future net cash flows does not purport to be an estimate of the fair market value of our proved reserves.
We also have undrawn letters of credit of $165.3 million as of December 31, 2024 which reduce the borrowing capacity under our bank credit facility. The borrowing base is subject to regular, semi-annual re-determinations and is dependent on a number of factors but primarily the lenders' assessment of our future cash flows.
We also have undrawn letters of credit of $165.2 million as of December 31, 2025 which reduce the borrowing capacity under our bank credit facility. The borrowing base is subject to regular, annual re-determinations and is dependent on a number of factors but primarily the lenders' assessment of our future cash flows.
These expenses include stock-based compensation (including the amortization of restricted stock and performance-based grants), 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.
These expenses include stock-based compensation (including the amortization of time-based stock awards and performance-based stock awards), 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.
The present value of our estimated future net cash flows at December 31, 2023 was $7.9 billion. This present value was calculated based on the unweighted average first-day-of-the-month oil and gas prices for the prior twelve months held flat for the life of the reserves, in accordance with SEC rules.
The present value of our estimated future net cash flows at December 31, 2024 was $5.5 billion. This present value was calculated based on the unweighted average first-day-of-the-month oil and gas prices for the prior twelve months held flat for the life of the reserves, in accordance with SEC rules.
See Note 6 to our consolidated financial statements for more information. Capital Requirements Our material cash requirements include the following contractual and other potential or expected obligations: Capital Budget Our approved capital budget for 2025 is $650 million to $690 million.
See Note 6 to our consolidated financial statements for more information. Capital Requirements Our material cash requirements include the following contractual and other potential or expected obligations: Capital Budget Our approved capital budget for 2026 is $650 million to $700 million.
See additional information and a summary of these revisions and additions in Note 16 to our consolidated financial statements. Future Net Cash Flows. At December 31, 2024, the present value (discounted at 10%) of estimated future net cash flows from our proved reserves was $5.5 billion.
See additional information and a summary of these revisions and additions in Note 16 to our consolidated financial statements. Future Net Cash Flows. At December 31, 2025, the present value (discounted at 10%) of estimated future net cash flows from our proved reserves was $11.6 billion.
See also Brokered natural gas and marketing expense below for more information on our net brokered margin. Other income was $13.5 million in 2024 compared to $12.5 million in 2023.
See also Brokered natural gas and marketing expense below for more information on our net brokered margin. Other income was $5.8 million in 2025 compared to $13.5 million in 2024.
Exit costs were $37.2 million in 2024 compared to $99.9 million in 2023. In August 2020, we completed the sale of our North Louisiana operations in a transaction that included the retention of certain related gathering, transportation and processing obligations extending until 2030.
Exit costs were $25.7 million in 2025 compared to $37.2 million in 2024. In August 2020, we completed the sale of our North Louisiana operations in a transaction that included the retention of certain related gathering, transportation and processing obligations extending until 2030.
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 and lower purchased volumes.
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 increase in these costs reflects higher purchase prices partially offset by lower purchased volumes.
Natural gas prices affect us more than oil prices because approximately 64% of our December 31, 2024 proved reserves were natural gas compared to 1% of proved reserves were oil. In addition, a portion of our NGLs, which are 35% of our year-end proved reserves, are also impacted by changes in oil prices.
Natural gas prices affect us more than oil prices because approximately 65% of our December 31, 2025 proved reserves were natural gas compared to 1% of proved reserves were oil. In addition, a portion of our NGLs, which are 34% of our year-end proved reserves, are also impacted by changes in oil prices.
See Note 10 to our consolidated financial statements for more information on allocation of stock-based compensation to functional expense categories. Brokered natural gas and marketing expense was $140.5 million in 2024 compared to $202.9 million in 2023.
See Note 10 to our consolidated financial statements for more information on allocation of stock-based compensation to functional expense categories. Brokered natural gas and marketing expense was $185.6 million in 2025 compared to $140.5 million in 2024.
Deferred compensation plan expense was $9.6 million in 2024 compared to $26.6 million in 2023. Our stock price increased to $35.98 at December 31, 2024 from $30.44 at December 31, 2023. This non-cash item relates to the increase or decrease in value of the liability associated with our common stock that is vested and held in our deferred compensation plan.
Deferred compensation plan expense was $1.4 million in 2025 compared to $9.6 million in 2024. Our stock price decreased to $35.26 at December 31, 2025 from $35.98 at December 31, 2024. This non-cash item relates to the increase or decrease in value of the liability associated with our common stock that is vested and held in our deferred compensation plan.
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.
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. Currently, our investment portfolio is focused on high quality natural gas and NGLs assets in the Commonwealth of Pennsylvania.
These costs decreased when compared to 2023 due to lower estimated lease expirations in Pennsylvania. Impairment of individually insignificant unproved properties is assessed and amortized on an aggregate basis based on our average holding period, expected forfeiture rate and anticipated drilling success.
These costs increased compared to 2024 due to higher estimated lease expirations in Pennsylvania. Impairment of individually insignificant unproved properties is assessed and amortized on an aggregate basis based on our average holding period, expected forfeiture rate and anticipated drilling success.
At December 31, 2024, our derivative counterparties include fifteen financial institutions, of which all but five are secured lenders in our bank credit facility. Counterparty credit risk is considered when determining the fair value of our derivative contracts.
At December 31, 2025, our derivative counterparties include fourteen financial institutions, of which all but four are secured lenders in our bank credit facility. Counterparty credit risk is considered when determining the fair value of our derivative contracts.
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.
Year Ended December 31, 2025 2024 Benchmarks: Average NYMEX prices (a) Natural gas (per mcf) $ 3.43 $ 2.27 Oil (per bbl) 64.52 76.17 Mont Belvieu NGLs composite (per gallon) (b) 0.55 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.
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. These brokered revenues decreased compared to 2023 due to lower brokered volumes and sales prices.
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. These brokered revenues increased compared to 2024 due to higher sales prices partially offset by lower brokered volumes.
These contracts expire monthly through December 2027. Their fair value, represented by the estimated amount that would be realized upon immediate liquidation as of December 31, 2024, approximated a net derivative asset of $96.1 million compared to a net derivative asset of $424.4 million at December 31, 2023.
These contracts expire monthly through December 2028. Their fair value, represented by the estimated amount that would be realized upon immediate liquidation as of December 31, 2025, approximated a net derivative asset of $74.0 million compared to a net derivative asset of $96.1 million at December 31, 2024.
The following table summarizes direct operating expenses per mcfe for the last two years: Year Ended December 31, 2024 2023 Change % Direct operating Lease operating expense $ 0.12 $ 0.11 $ 0.01 9 % Workovers — 0.01 (0.01 ) (100 )% Stock-based compensation — — — — % Total direct operating expense $ 0.12 $ 0.12 $ (0.00 ) (0 )% Taxes other than income expense was $21.6 million in 2024 compared to $23.7 million in 2023.
The following table summarizes direct operating expenses per mcfe for the last two years: Year Ended December 31, 2025 2024 Change % Direct operating Lease operating expense $ 0.12 $ 0.12 $ — — % Workovers 0.01 — 0.01 100 % Stock-based compensation — — — — % Total direct operating expense $ 0.13 $ 0.12 $ 0.01 8 % Taxes other than income expense was $32.8 million in 2025 compared to $21.6 million in 2024.
The following table summarizes taxes other than income per mcfe for the last two years: Year Ended December 31, 2024 2023 Change % Taxes other than income Impact fee $ 0.03 $ 0.03 $ — — % Other — — — — % Total taxes other than income $ 0.03 $ 0.03 $ — — % General and administrative expense was $172.1 million for 2024 compared to $164.7 million for 2023.
The following table summarizes taxes other than income per mcfe for the last two years: Year Ended December 31, 2025 2024 Change % Taxes other than income Impact fee $ 0.04 $ 0.03 $ 0.01 33 % Other — — — — % Total taxes other than income $ 0.04 $ 0.03 $ 0.01 33 % General and administrative expense was $178.3 million for 2025 compared to $172.1 million for 2024.
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.
We believe we are well-positioned to manage any challenges that could occur during price variations and that we can endure the continued fluctuations in current and future commodity prices by: • exercising discipline in our capital investments; • maintaining a competitive cost structure; • diversifying sales outlets; • managing price risk through partial hedging of our production; • maintaining a strong balance sheet; and • optimizing drilling, completion and operational efficiencies.
During 2024, we purchased on the open market $79.7 million principal amount of 4.875% senior notes due 2025 at a discount and recorded a gain of $257,000, net of transaction costs and the expensing of deferred financing costs on the repurchased debt.
During 2024, we purchased on the open market $79.7 million principal amount of 4.875% senior notes due in May of 2025 at a discount and recognized a gain on early extinguishment of debt of $257,000 net of transaction costs and the expensing of debt issuance costs on the repurchased debt.
The following table summarizes general and administrative expenses per mcfe for the last two years: Year Ended December 31, 2024 2023 Change % General and administrative General and administrative $ 0.17 $ 0.16 $ 0.01 6 % Stock-based compensation 0.05 0.05 — — % Total general and administrative expense $ 0.22 $ 0.21 $ 0.01 5 % Interest expense was $118.8 million for 2024 compared to $124.0 million for 2023.
The following table summarizes general and administrative expenses per mcfe for the last two years: Year Ended December 31, 2025 2024 Change % General and administrative General and administrative $ 0.17 $ 0.17 $ — — % Stock-based compensation 0.05 0.05 — — % Total general and administrative expense $ 0.22 $ 0.22 $ — — % Interest expense was $104.9 million for 2025 compared to $118.8 million for 2024.
Cash provided from operating activities is largely dependent upon commodity prices and production volumes, net of the effects of settlement of our derivative contracts. The decrease in cash provided from operating activities in 2024 from 2023 reflects lower realized prices combined with higher working capital outflow (the timing of cash receipts and disbursements).
Cash provided from operating activities is largely dependent upon commodity prices and production volumes, net of the effects of settlement of our derivative contracts. The increase in cash provided from operating activities in 2025 from 2024 reflects higher realized prices and lower working capital outflow.
The increase in 2024, when compared to 2023, is primarily due to higher salary and benefit related costs and higher stock-based compensation. As of December 31, 2024, the number of general and administrative employees increased by 1% when compared to December 31, 2023.
The increase in 2025, compared to 2024, is primarily due to higher salary and benefit related costs and higher stock-based compensation. As of December 31, 2025, the number of general and administrative employees remained similar compared to December 31, 2024.
The following is a summary of income tax expense (in thousands): Year Ended December 31, 2024 2023 Income tax (benefit) expense Current tax expense $ 8,165 $ 1,547 Deferred income tax (benefit) expense (23,900 ) 227,654 Total income tax (benefit) expense $ (15,735 ) $ 229,201 Combined federal and state effective income tax rate (6.3 )% 20.8 % Management’s Discussion and Analysis of Financial Condition, Cash Flows, Capital Resources and Liquidity Commodity prices are the most significant factor impacting our revenues, net income, operating cash flows, the amount of capital we invest in our business, payment of dividends and funding of share or debt repurchases.
The following is a summary of income tax expense (in thousands): Year Ended December 31, 2025 2024 Income tax expense (benefit) Current tax expense $ 9,394 $ 8,165 Deferred income tax expense (benefit) 164,272 (23,900 ) Total income tax expense (benefit) $ 173,666 $ (15,735 ) Combined federal and state effective income tax rate 20.9 % (6.3 )% Management’s Discussion and Analysis of Financial Condition, Cash Flows, Capital Resources and Liquidity Commodity prices are the most significant factor impacting our revenues, net income, operating cash flows, the amount of capital we have available to invest in our business, pay dividends and fund share or debt repurchases.
The following presents information about certain of our expenses on a per mcfe basis for the last two years: Year Ended December 31, 2024 2023 Change % Direct operating expense $ 0.12 $ 0.12 $ — — % Taxes other than income 0.03 0.03 — — % General and administrative expense 0.22 0.21 0.01 5 % Interest expense 0.15 0.16 (0.01 ) (6 )% Depletion, depreciation and amortization expense 0.45 0.45 — — % 38 Direct operating expense was $95.3 million in 2024 compared to $96.1 million in 2023.
The following presents information about certain of our expenses on a per mcfe basis for the last two years: Year Ended December 31, 2025 2024 Change % Direct operating expense $ 0.13 $ 0.12 $ 0.01 8 % Taxes other than income 0.04 0.03 0.01 33 % General and administrative expense 0.22 0.22 — — % Interest expense 0.13 0.15 (0.02 ) (13 )% Depletion, depreciation and amortization expense 0.45 0.45 — — % 37 Direct operating expense was $102.2 million in 2025 compared to $95.3 million in 2024.
Exploration expense in 2024 was higher when compared to the prior year due to higher delay rentals partially offset by lower seismic costs. Stock-based compensation represents the amortization of equity stock grants as part of the compensation of our exploration staff.
Exploration expense in 2025 was higher compared to the prior year due to higher delay rentals, seismic costs and personnel expense. Stock-based compensation represents the amortization of equity stock grants as part of the compensation of our exploration staff.
Estimates prepared by third parties may be higher or lower than those included herein. Independent petroleum consultants audited approximately 96% of our reserves in both 2024 and 2023. Historical variances between our reserve estimates and the aggregate estimates of our consultants have been approximately 5%. The reserves included in this report are those reserves estimated by our petroleum engineering staff.
Estimates prepared by third parties may be higher or lower than those included herein. Independent petroleum consultants audited approximately 96% of our reserves in 2025 and 2024. Historical variances between our reserve estimates and the aggregate estimates of our consultants have been approximately 6% or less.
Depletion expense, the largest component of DD&A, was $0.44 per mcfe in 2024 compared to $0.44 per mcfe in 2023. 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.
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.
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.
Management’s Discussion and Analysis of Results of Operations Overview of 2025 Results For the year ended December 31, 2025, we experienced an increase in revenue from the sale of natural gas, NGLs and oil due to a 14% increase in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) compared to 2024.
The following table details our brokered natural gas and marketing net margin which includes the net effect of these third-party transactions for the last two years (in thousands): Year Ended December 31, 2024 2023 Brokered natural gas and marketing Brokered natural gas sales $ 119,767 $ 195,656 Brokered NGLs sales 5,370 1,834 Other marketing revenue 7,911 9,062 Brokered natural gas purchases and transportation (123,851 ) (191,659 ) Brokered NGLs purchases (4,947 ) (1,632 ) Other marketing expense (11,747 ) (9,593 ) Net brokered natural gas and marketing net margin $ (7,497 ) $ 3,668 Exploration expense was $26.8 million in 2024 compared to $26.5 million in 2023.
The following table details our brokered natural gas and marketing net margin which includes the net effect of these third-party transactions for the last two years (in thousands): Year Ended December 31, 2025 2024 Brokered natural gas and marketing Brokered natural gas sales $ 164,191 $ 119,767 Brokered NGLs sales 2,443 5,370 Other marketing revenue 5,939 7,911 Brokered natural gas purchases and transportation (171,010 ) (123,851 ) Brokered NGLs purchases (2,267 ) (4,947 ) Other marketing expense (12,277 ) (11,747 ) Net brokered natural gas and marketing net margin $ (12,981 ) $ (7,497 ) Exploration expense was $30.2 million in 2025 compared to $26.8 million in 2024.
Average realized price calculations for the last two years are shown below: Year Ended December 31, 2024 2023 Change % Average Prices Average realized prices (excluding derivative settlements): Natural gas (per mcf) $ 1.93 $ 2.29 $ (0.36 ) (16 )% NGLs (per bbl) 25.77 24.61 1.16 5 % Oil (per bbl) 64.44 67.29 (2.85 ) (4 )% Total (per mcfe) (a) 2.78 2.99 (0.21 ) (7 )% Average realized prices (including all derivative settlements): Natural gas (per mcf) $ 2.70 $ 2.77 $ (0.07 ) (3 )% NGLs (per bbl) 25.86 24.61 1.25 5 % Oil (per bbl) 68.77 62.77 6.00 10 % Total (per mcfe) (a) 3.32 3.31 0.01 0 % Average realized prices (including all derivative settlements and third-party transportation costs paid by Range): Natural gas (per mcf) $ 1.58 $ 1.68 $ (0.10 ) (6 )% NGLs (per bbl) 11.62 10.80 0.82 8 % Oil (per bbl) 67.87 62.43 5.44 9 % Total (per mcfe) (a) 1.84 1.88 (0.04 ) (2 )% (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.
Average realized price calculations for the last two years are shown below: Year Ended December 31, 2025 2024 Change % Average Prices Average realized prices (excluding derivative settlements): Natural gas (per mcf) $ 3.08 $ 1.93 $ 1.15 60 % NGLs (per bbl) 24.15 25.77 (1.62 ) (6 )% Oil (per bbl) 53.68 64.44 (10.76 ) (17 )% Total (per mcfe) (a) 3.45 2.78 0.67 24 % Average realized prices (including derivative settlements): Natural gas (per mcf) $ 3.29 $ 2.70 $ 0.59 22 % NGLs (per bbl) 24.28 25.86 (1.58 ) (6 )% Oil (per bbl) 55.06 68.77 (13.71 ) (20 )% Total (per mcfe) (a) 3.60 3.32 0.28 8 % Average realized prices (including derivative settlements and third-party transportation costs paid by Range): Natural gas (per mcf) $ 2.17 $ 1.58 $ 0.59 37 % NGLs (per bbl) 9.67 11.62 (1.95 ) (17 )% Oil (per bbl) 53.35 67.87 (14.52 ) (21 )% Total (per mcfe) (a) 2.10 1.84 0.26 14 % (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.
In addition to the contractual obligations listed in the table below, our consolidated balance sheet at December 31, 2024 reflects accrued interest payable associated with commitment fees on our bank debt of $1.3 million, which is payable in first quarter 2025. 43 The following summarizes our contractual financial obligations at December 31, 2024 and their future maturities.
In addition to the contractual obligations listed in the table below, our consolidated balance sheet at December 31, 2025 reflects accrued interest payable associated with our bank credit facility and senior notes of $31.9 million, which is payable in 2026. The following summarizes our contractual financial obligations at December 31, 2025 and their future maturities.
Other Sources of Liquidity We have a universal shelf registration statement filed with the SEC under which we, as a "well-known seasoned issuer" for purposes of SEC rules, have the ability to sell an indeterminate amount of various types of debt and equity securities.
Other Sources of Liquidity We have a universal shelf registration statement filed with the SEC under which we, as a "well-known seasoned issuer" for purposes of SEC rules, have the ability to sell an indeterminate amount of various types of debt and equity securities. 42 Cash Contractual Obligations Our contractual obligations include long-term debt, operating leases, derivative obligations, asset retirement obligations and transportation, gathering and processing commitments.
The fair value of the natural gas basis swaps, which expire monthly through December 2028, was a net derivative liability of $29.2 million at December 31, 2024 and the volumes are for 266,640,000 Mmbtu.
The fair value of the natural gas basis swaps, which expire monthly through December 2029, was a net derivative liability of $8.1 million at December 31, 2025 and the total volumes are for 161,290,000 Mmbtu.
Commodity prices have been and are expected to remain volatile. Our top priorities for using cash provided by operations are to fund our capital budget program, repay debt and return capital to stockholders.
Commodity prices have been and are expected to remain volatile. Our top priorities for using cash provided by operations are to fund our capital budget program, return capital to stockholders, and maintain a strong balance sheet, while making prudent investments in our business.
The following table summarizes interest expense per mcfe for the last two years: Year Ended December 31, 2024 2023 Change % Bank credit facility (a) $ 0.01 $ 0.01 $ — — % Senior notes 0.13 0.14 (0.01 ) (7 )% Amortization of deferred financing costs and other 0.01 0.01 — — % Total interest expense $ 0.15 $ 0.16 $ (0.01 ) (6 )% Average debt outstanding ($000s) $ 1,741,648 $ 1,821,940 $ (80,292 ) (4 )% Average interest rate (b) 6.5 % 6.5 % — % — % (a) Includes commitment fees.
The following table summarizes interest expense per mcfe for the last two years: Year Ended December 31, 2025 2024 Change % Bank credit facility (a) $ 0.02 $ 0.01 $ 0.01 100 % Senior notes 0.10 0.13 (0.03 ) (23 )% Amortization of debt issuance costs and other 0.01 0.01 — — % Total interest expense $ 0.13 $ 0.15 $ (0.02 ) (13 )% Average debt outstanding ($000) $ 1,435,942 $ 1,741,648 $ (305,706 ) (18 )% Average interest rate (b) 7.0 % 6.5 % 0.5 % 8 % (a) Includes commitment fees.
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.
Outlook for 2026 As we enter 2026, we believe we are positioned for sustainable long-term success. For 2026, we expect our capital budget to be in the range of $650 million to $700 million for natural gas, NGLs and oil related activities, excluding any potential acquisitions, for which we do not budget.
The following table shows capital investments and reconciles to additions to natural gas and oil properties as presented on our consolidated statements of cash flows for the last two years (in thousands): 2024 2023 Additions due to natural gas and oil properties $ 593,998 $ 571,607 Change in capital expenditure accrual for proved properties (23,318 ) 1,204 Change in other non-cash capital expenditures (254 ) (992 ) Additions to natural gas and oil properties $ 570,426 $ 571,819 Repayment of senior notes for 2024 includes the repurchase of $79.7 million principal of our 4.875% senior notes due 2025, at a discount.
The following table shows capital investments and reconciles to additions to natural gas, NGLs and oil properties as presented on our consolidated statements of cash flows for the last two years (in thousands): 2025 2024 Additions due to natural gas, NGLs and oil properties $ 616,909 $ 593,998 Change in capital expenditure accrual for proved properties (34,533 ) (23,318 ) Change in other non-cash capital expenditures (887 ) (254 ) Additions to natural gas, NGLs and oil properties $ 581,489 $ 570,426 Repayment of senior notes for 2025 includes the payoff of principal of our 4.875% senior notes due 2025 at its maturity date through utilization of cash and borrowing on our credit facility.
We currently expect our DD&A rate to be approximately $0.45 per mcfe in 2025. Estimated reserves are used as the basis for calculating the expected future cash flows from property asset groups, which are used to determine whether that property may be impaired.
Estimated reserves are used as the basis for calculating the expected future cash flows from property asset groups, which are used to determine whether that property may be impaired.
The following table summarizes the impact of our commodity derivatives for the last two years (in thousands): Year Ended December 31, 2024 2023 Derivative fair value income per consolidated statements of income $ 56,726 $ 821,154 Non-cash fair value (loss) income: ⁽ᵃ⁾ Natural gas derivatives $ (364,467 ) $ 557,419 NGLs derivatives — — Oil derivatives (11,199 ) 23,301 Divestiture contingent consideration — (13,080 ) Total non-cash fair value (loss) income ⁽ᵃ⁾ $ (375,666 ) $ 567,640 Net cash receipt (payment) on derivative settlements: Natural gas derivatives $ 419,199 $ 256,693 NGLs derivatives 3,743 — Oil derivatives 9,450 (11,179 ) Divestiture contingent consideration — 8,000 Total net cash receipt $ 432,392 $ 253,514 (a) Non-cash fair value adjustments on commodity derivatives is a non-GAAP measure.
The following table summarizes the impact of our commodity derivatives for the last two years (in thousands): Year Ended December 31, 2025 2024 Derivative fair value income per consolidated statements of income $ 121,535 $ 56,726 Non-cash fair value loss: (a) Natural gas derivatives $ (1,138 ) $ (364,467 ) NGLs derivatives — — Oil derivatives — (11,199 ) Total non-cash fair value loss (a) $ (1,138 ) $ (375,666 ) Net cash receipt on derivative settlements: Natural gas derivatives $ 114,864 $ 419,199 NGLs derivatives 5,096 3,743 Oil derivatives 2,713 9,450 Total net cash receipt $ 122,673 $ 432,392 (a) Non-cash fair value adjustments on commodity derivatives is a non-GAAP measure.
Year End December 31, 2024 2023 (Mmcfe) Proved Reserves: Beginning of year 18,113,125 18,077,656 Reserve revisions 75,765 608,784 Reserve extensions, discoveries and additions 749,362 207,260 Sales (10,542 ) — Production (796,235 ) (780,575 ) End of year 18,131,475 18,113,125 Proved Developed Reserves: Beginning of year 11,535,852 10,933,180 End of year 11,930,793 11,535,852 Reserve Revisions and Additions.
Year End December 31, 2025 2024 (Mmcfe) Proved Reserves: Beginning of year 18,131,475 18,113,125 Reserve revisions 264,073 75,765 Reserve extensions, discoveries and additions 562,372 749,362 Sales — (10,542 ) Production (816,058 ) (796,235 ) End of year 18,141,862 18,131,475 Proved Developed Reserves: Beginning of year 11,930,793 11,535,852 End of year 12,801,132 11,930,793 Reserve Revisions and Additions.
The following table details our exploration related expenses for the last two years (in thousands): Year Ended December 31, 2024 2023 Change % Exploration Seismic $ 229 $ 1,687 $ (1,458 ) (86 )% Delay rentals and other 19,256 17,644 1,612 9 % Personnel expense 6,004 5,949 55 — % Stock-based compensation expense 1,354 1,250 104 8 % Total exploration expense $ 26,843 $ 26,530 $ 313 1 % 40 Abandonment and impairment of unproved properties was $8.4 million in 2024 compared to $46.4 million in 2023.
The following table details our exploration related expenses for the last two years (in thousands): Year Ended December 31, 2025 2024 Change % Exploration Delay rentals and other $ 21,550 $ 19,256 $ 2,294 12 % Seismic 1,024 229 795 347 % Personnel expense 6,250 6,004 246 4 % Stock-based compensation expense 1,355 1,354 1 0 % Total exploration expense $ 30,179 $ 26,843 $ 3,336 12 % 39 Abandonment and impairment of unproved properties was $28.9 million in 2025 compared to $8.4 million in 2024.
In the year ended December 31, 2023, we recorded $41.9 million of accretion expense related to these retained liabilities, and we recorded adjustments of $57.7 million to increase this obligation for a change in forecasted drilling plans of the buyer and an increase in forecasted rates due to inflation. See Note 14 to our consolidated financial statements for further detail.
In the year ended December 31, 2024, we recorded $39.2 million of accretion expense related to these retained liabilities, and we recorded an adjustment of $2.1 million to decrease this obligation mainly due to a decrease in forecasted electricity costs. See Note 14 to our consolidated financial statements for further detail.
During 2023, we purchased on the open market $61.6 million principal amount of 4.875% senior notes due in May of 2025. We recognized a gain on early extinguishment of debt of $438,000 net of transaction costs and the expensing of deferred financing costs on the repurchased debt.
During 2025, we repurchased in the open market $2.2 million principal amount of our 4.875% senior notes due 2025 at a discount and recorded a gain of $3,000, net of transaction costs and the expensing of debt issuance costs on the repurchased debt.
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.
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.
Average sales prices (excluding derivative settlements) do include transportation costs where we receive net proceeds from the purchaser. Our average realized price (including all derivative settlements and third-party transportation costs paid by Range) calculation includes all cash settlements for derivatives.
Our average realized price (including derivative settlements and third-party transportation costs paid by Range) calculation includes cash settlements for derivatives.
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.
Prices for various quantities of natural gas, NGLs and oil that we produce significantly impact our revenues and cash flows. Our price realizations (not including the impact of our derivatives) may differ from the benchmarks for many reasons, including quality, location, or production being sold at different prices.
Income tax benefit was $15.7 million in 2024 compared to an expense of $229.2 million in 2023. Income tax expense was lower than prior year due to lower operating income combined with the impact of changes in our valuation allowances and generation of tax credits in 2024. See Note 4 to our consolidated financial statements for further detail.
Income tax expense was $173.7 million in 2025 compared to a benefit of $15.7 million in 2024. Income tax expense was higher than prior year due to higher operating income in 2025 combined with the impact of prior year decreases in our valuation allowances and generation of tax credits in 2024.
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.
Market Conditions We continue to monitor the impact of the actions of OPEC and other large producing nations, the Russia-Ukraine conflict, tensions in the Middle East, global inventories of natural gas, NGLs and oil, future U.S infrastructure investment, future monetary and fiscal policy, tariffs and their impacts on global trade and energy demand and governmental policies aimed at transitioning towards lower carbon energy.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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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
Biggest changeITEM 7A. Quantitative and Qualitative Disclosures about Market Risk 46 Commodity Price Risk 46 Derivative Instruments 46 Other Commodity Risk 47 Commodity Sensitivity Analysis 47 Counterparty Risk 47 Interest Rate Risk 47 ITEM 8. Financial Statements and Supplementary Data F- 1

Other RRC 10-K year-over-year comparisons