FORT WORTH, Oct. 24, 2022 - Range Resources Corp. (NYSE: RRC) today announced its third quarter 2022 financial results.
Third Quarter 2022 Highlights -
Highest cash flow from operating activities in Company history ? $521 million
Highest cash flow from operations, before working capital changes, in Company history ? $550 million
Capital spending was $138 million, approximately 29% of the 2022 budget
Quarterly dividend of $0.08 per quarter initiated in September
Share repurchase authorization increased by $1 billion in October
Repurchased 5.7 million shares at an average of $29.41 per share
Realizations before NYMEX hedges of $7.40 per mcfe
Natural gas differentials, including basis hedging, averaged ($0.38) per mcf to NYMEX
Pre-hedge NGL realizations of $35.30 per barrel
Production averaged 2.13 Bcfe per day, approximately 70% natural gas
Commenting on the quarter, Jeff Ventura, the Company's CEO said, "Range delivered record free cash flow and cash flow per share in the third quarter, allowing us to reduce net debt while increasing returns of capital to shareholders. Range has unlocked a massive inventory of high-quality wells in the Marcellus, measured in decades, and translated that inventory into a business capable of generating healthy free cash flow and returns of capital through the cycles. As a result of Range's organic operational and financial performance, commitment to disciplined spending and confidence in free cash flow sustainability, we are tripling our share repurchase authorization to $1.5 billion. We continue to view share repurchases as a compelling investment, given favorable long-term fundamentals and the underlying value of our de-risked multi-decade core inventory. This repeatable, low-risk, low-decline asset base underpins Range's peer-leading capital intensity and resilient free cash flow profile."
Financial Discussion
Except for generally accepted accounting principles ("GAAP") reported amounts, specific expense categories exclude non-cash impairments, unrealized mark-to-market adjustment on derivatives, non-cash stock compensation and other items shown separately on the attached tables. "Unit costs" as used in this release are composed of direct operating, transportation, gathering, processing and compression, production, and ad valorem taxes, general and administrative, interest and depletion, depreciation and amortization costs divided by production. See "Non-GAAP Financial Measures" for a definition of each of the non-GAAP financial measures and the tables that reconcile each of the non-GAAP measures to their most directly comparable GAAP financial measure.
Third Quarter 2022 Results
GAAP revenues for third quarter 2022 totaled $1.1 billion, GAAP net cash provided from operating activities (including changes in working capital) was $521 million, and GAAP net income was $373 million ($1.49 per diluted share). Third quarter earnings results include a $458 million mark-to-market derivative loss due to the increases in commodity prices.
Non-GAAP revenues for third quarter 2022 totaled $1.1 billion, and cash flow from operations before changes in working capital, a non-GAAP measure, was $550 million. Adjusted net income comparable to analysts' estimates, a non-GAAP measure, was $336 million ($1.37 per diluted share) in third quarter 2022.
The following table details Range's third quarter 2022 unit costs per mcfe(a):
Expenses
3Q 2022 (per mcfe)
2Q 2022 (per mcfe)
Increase (Decrease)
Direct operating
$
0.11
$
0.10
10
%
Transportation, gathering,
processing and compression(a)
1.65
1.70
(3
%)
Production and ad valorem taxes
0.04
0.04
0
%
General and administrative(a)
0.16
0.17
(6
%)
Interest expense(a)
0.19
0.21
(10
%)
Total cash unit costs(b)
2.15
2.22
(3
)%
Depletion, depreciation and
amortization (DD&A)
0.46
0.46
0
%
Total unit costs plus DD&A(b)
$
2.61
$
2.68
(3
)%
(a)
Excludes stock-based compensation, one-time settlements, and amortization of deferred financing costs.
(b)
May not add due to rounding.
The following table details Range's average production and realized pricing for third quarter 2022(a):
3Q22 Production & Realized Pricing
Natural Gas (Mcf)
Oil (Bbl)
NGLs (Bbl)
Natural Gas Equivalent (Mcfe)
Net production per day
1,487,640
7,098
100,387
2,132,550
Average NYMEX price
$
8.19
$
91.55
$
36.83
Differential, including basis hedging
(0.38
)
(6.86
)
(1.53
)
Realized prices before NYMEX hedges
7.81
84.69
35.30
7.40
Settled NYMEX hedges
(3.39
)
(29.28
)
0.44
(2.45
)
Average realized prices after hedges
$
4.42
$
55.41
$
35.74
$
4.95
(a)
May not add due to rounding
Third quarter 2022 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $4.95 per mcfe.
The average natural gas price, including the impact of basis hedging, was $7.81 per mcf, or a ($0.38) per mcf differential to NYMEX. Natural gas realizations for Range have remained strong in recent months, and as a result, the Company is improving guidance for average 2022 natural gas differentials versus NYMEX to an expected range of ($0.30) to ($0.35) per mcf.
Range's pre-hedge NGL price for 3Q was $35.30 per barrel, an increase of $1.25 versus the prior year quarter and approximately $1.53 below the Mont Belvieu weighted equivalent. During the third quarter, the spread between European naphtha and Mont Belvieu ethane prices decreased considerably. This change in relative pricing for a portion of Range's sales was the primary driver of Range's discount to Mont Belvieu for the quarter. The Company expects a slight improvement to its fourth quarter differential and further improvement into 2023 based on forward commodity pricing.
Crude oil and condensate price realizations, before realized hedges, averaged $84.69 per barrel, or $6.86 below WTI (West Texas Intermediate). Range continues to expect the 2022 condensate differential to average $6.00-$8.00 below WTI.
Financial Position and Share Buyback
During the third quarter, Range purchased 5.7 million shares at an average price of approximately $29.41 per share. On October 21st, Range's Board of Directors authorized a $1 billion increase to the Company's share repurchase program. Range currently has approximately 242 million shares outstanding and $1.2 billion of availability on the share repurchase program.
As of September 30, 2022, Range had net debt outstanding of approximately $2.2 billion, consisting of $2.4 billion of senior notes and $157 million in cash. On a trailing twelve-month basis, Range's leverage ratio, defined as Net-Debt-to-EBITDAX, was approximately 1.0x, with further improvement expected over the coming quarters.
Capital Expenditures
Third quarter 2022 drilling and completion expenditures were $133 million. In addition, during the quarter, $5 million was invested in acreage leasehold and gathering systems. Third quarter capital spending represents approximately 29% of Range's total capital budget in 2022. Total capital expenditures year to date were $382 million at the end of the third quarter. Range expects capital expenditures to trend toward the upper end of its full-year 2022 capital spending guidance of $460 million to $480 million.
Production and Operational Activity
Production for third quarter was 2.13 Bcfe per day, representing a 3% increase over second quarter 2022. The Company expects a similar production increase in the fourth quarter. This will place Range near the low-end of annual guidance of 2.12 - 2.16 Bcfe per day, despite unplanned third-party midstream maintenance that impacted third and fourth quarter volumes. The Company is currently producing approximately 2.2 Bcfe per day.
The table below summarizes expected 2022 activity regarding the number of wells to sales in each area.
Wells TIL 3Q 2022
Calendar 2022 Planned TIL
Remaining 2022
SW PA Super-Rich
0
7
3
SW PA Wet
8
21
7
SW PA Dry
4
26
6
NE PA Dry
6
9
3
Total Wells
18
63
19
Guidance - 2022
Capital & Production Guidance
As previously noted, Range is targeting holding production approximately flat at 2.12 - 2.16 Bcfe per day, approximately 30% attributed to liquids production, with expectations at the lower end of guidance for the full year 2022 given timing of third-party infrastructure maintenance. Range's 2022 all-in capital budget is $460 million - $480 million with expectations at the upper end of the guidance.
Updated Full Year 2022 Expense Guidance
Direct operating expense:
$0.09 - $0.11 per mcfe
Transportation, gathering, processing and
compression expense:
$1.56 - $1.64 per mcfe
Production tax expense:
$0.04 - $0.05 per mcfe
Exploration expense:
$22 - $28 million
G&A expense:
$0.15 - $0.17 per mcfe
Interest expense:
$0.19 - $0.21 per mcfe
DD&A expense:
$0.46 - $0.50 per mcfe
Net brokered gas marketing expense:
$10 - $15 million
Updated Price Guidance
Based on recent market indications, Range expects to average the following price differentials for its production.
FY 2022 Natural Gas:(1)
NYMEX minus $0.30 to $0.35
4Q 2022 Natural Gas Liquids (including ethane):(2)
MB minus $0.50 - $1.50 per barrel
FY 2022 Oil/Condensate:
WTI minus $6.00 to $8.00
(1)
Including basis hedging
(2)
Mont Belvieu-equivalent pricing based on weighting of 53% ethane, 27% propane, 7% normal butane, 4% iso-butane and 9% natural gasoline.
Hedging Status
Range hedges portions of its expected future production volumes to increase the predictability of cash flow and to help improve and maintain a strong, flexible financial position. Please see the detailed hedging schedule posted on the Range website under Investor Relations - Financial Information.
Range has also hedged Marcellus and other basis differentials for natural gas to limit volatility between benchmark and regional prices. The combined fair value of natural gas basis hedges as of September 30, 2022, was a net gain of $23.8 million.
Conference Call Information
A conference call to review the financial results is scheduled on Tuesday, October 25 at 8:00 AM Central Time (9:00 AM Eastern Time). Please click here to pre-register for the conference call and obtain a dial in number with passcode.
A simultaneous webcast of the call may be accessed at www.rangeresources.com. The webcast will be archived for replay on the Company's website until November 24th.
Non-GAAP Financial Measures
Adjusted net income comparable to analysts' estimates as set forth in this release represents income or loss from operations before income taxes adjusted for certain non-cash items (detailed in the accompanying table) less income taxes. We believe adjusted net income comparable to analysts' estimates is calculated on the same basis as analysts' estimates and that many investors use this published research in making investment decisions and evaluating operational trends of the Company and its performance relative to other oil and gas producing companies. Diluted earnings per share (adjusted) as set forth in this release represents adjusted net income comparable to analysts' estimates on a diluted per share basis. A table is included which reconciles income or loss from operations to adjusted net income comparable to analysts' estimates and diluted earnings per share (adjusted). On its website, the Company provides additional comparative information on prior periods along with non-GAAP revenue disclosures.
Cash flow from operations before changes in working capital (sometimes referred to as "adjusted cash flow") as defined in this release represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items. Cash flow from operations before changes in working capital is widely accepted by the investment community as a financial indicator of an oil and gas company's ability to generate cash to internally fund exploration and development activities and to service debt. Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity. A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release. On its website, the Company provides additional comparative information on prior periods for cash flow, cash margins and non-GAAP earnings as used in this release.
The cash prices realized for oil and natural gas production, including the amounts realized on cash-settled derivatives and net of transportation, gathering, processing and compression expense, is a critical component in the Company's performance tracked by investors and professional research analysts in valuing, comparing, rating and providing investment recommendations and forecasts of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Due to the GAAP disclosures of various derivative transactions and third-party transportation, gathering, processing and compression expense, such information is now reported in various lines of the income statement. The Company believes that it is important to furnish a table reflecting the details of the various components of each income statement line to better inform the reader of the details of each amount and provide a summary of the realized cash-settled amounts and third-party transportation, gathering, processing and compression expense, which were historically reported as natural gas, NGLs and oil sales. This information is intended to bridge the gap between various readers' understanding and fully disclose the information needed.
The Company discloses in this release the detailed components of many of the single line items shown in the GAAP financial statements included in the Company's Annual or Quarterly Reports on Form 10-K or 10-Q. The Company believes that it is important to furnish this detail of the various components comprising each line of the Statements of Operations to better inform the reader of the details of each amount, the changes between periods and the effect on its financial results.
We believe that the presentation of PV10 value of our proved reserves is a relevant and useful metric for our investors as supplemental disclosure to the standardized measure, or after-tax amount, because it presents the discounted future net cash flows attributable to our proved reserves before taking into account future corporate income taxes and our current tax structure. While the standardized measure is dependent on the unique tax situation of each company, PV10 is based on prices and discount factors that are consistent for all companies. Because of this, PV10 can be used within the industry and by credit and security analysts to evaluate estimated net cash flows from proved reserves on a more comparable basis.
Range Resources Corp. (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused on stacked-pay projects in the Appalachian Basin. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com.
Included within this release are certain "forward-looking statements" within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not limited to historical facts, but reflect Range's current beliefs, expectations or intentions regarding future events. Words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "outlook", "estimate," "predict," "potential," "pursue," "target," "continue," and similar expressions are intended to identify such forward-looking statements.
All statements, except for statements of historical fact, made within regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as those regarding future well costs, expected asset sales, well productivity, future liquidity and financial resilience, anticipated exports and related financial impact, NGL market supply and demand, improving commodity fundamentals and pricing, future capital efficiencies, future shareholder value, emerging plays, capital spending, anticipated drilling and completion activity, acreage prospectivity, expected pipeline utilization and future guidance information, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and Range's future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements. Further information on risks and uncertainties is available in Range's filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K. Unless required by law, Range undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.
The SEC permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions as well as the option to disclose probable and possible reserves. Range has elected not to disclose its probable and possible reserves in its filings with the SEC. Range uses certain broader terms such as "resource potential," "unrisked resource potential," "unproved resource potential" or "upside" or other descriptions of volumes of resources potentially recoverable through additional drilling or recovery techniques that may include probable and possible reserves as defined by the SEC's guidelines. Range has not attempted to distinguish probable and possible reserves from these broader classifications. The SEC's rules prohibit us from including in filings with the SEC these broader classifications of reserves. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of actually being realized. Unproved resource potential refers to Range's internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques and have not been reviewed by independent engineers. Unproved resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer's Petroleum Resource Management System and does not include proved reserves. Area wide unproven resource potential has not been fully risked by Range's management. "EUR", or estimated ultimate recovery, refers to our management's estimates of hydrocarbon quantities that may be recovered from a well completed as a producer in the area. These quantities may not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineer's Petroleum Resource Management System or the SEC's oil and natural gas disclosure rules. Actual quantities that may be recovered from Range's interests could differ substantially. Factors affecting ultimate recovery include the scope of Range's drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors. Estimates of resource potential may change significantly as development of our resource plays provides additional data.
In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price declines or drilling cost increases. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website atwww.rangeresources.comor by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K on the SEC's website atwww.sec.govor by calling the SEC at 1-800-SEC-0330.
General and administrative - stock-based compensation (c)
10,402
9,845
32,245
28,632
General and administrative - lawsuit settlements
81
7,818
776
8,375
General and administrative - bad debt expense
-
-
-
-
Exit and termination costs
11,065
11,789
58,249
9,557
Exit and termination costs - stock-based compensation (c)
-
-
-
-
Deferred compensation plan (d)
5,795
34,278
59,917
89,551
Interest expense
37,173
54,483
121,137
164,039
Interest expense - amortization of deferred financing costs (c)
1,563
2,326
6,775
6,935
Loss on early extinguishment of debt
-
-
69,232
98
Depletion, depreciation and amortization
90,471
93,116
262,573
272,128
Impairment of proved property
-
-
-
-
Gain on sale of assets
(135
)
(78
)
(548
)
(724
)
Total costs and expenses
677,835
682,589
-1
%
2,100,417
1,871,237
12
%
Income (loss) before income taxes
432,710
(379,950
)
214
%
416,007
(507,844
)
182
%
Income tax expense (benefit):
Current
6,981
4,484
20,732
7,221
Deferred
52,642
(34,167
)
26,141
(35,477
)
59,623
(29,683
)
46,873
(28,256
)
Net income (loss)
$
373,087
$
(350,267
)
207
%
$
369,134
$
(479,588
)
177
%
Net Income (Loss) Per Common Share:
Basic
$
1.52
$
(1.44
)
$
1.48
$
(1.98
)
Diluted
$
1.49
$
(1.44
)
$
1.45
$
(1.98
)
Weighted average common shares outstanding, as reported:
Basic
239,768
243,311
-1
%
242,850
242,692
0
%
Diluted
245,023
243,311
1
%
248,360
242,692
2
%
(a)
See separate natural gas, NGLs and oil sales information table.
(b)
Included in Brokered natural gas, marketing and other revenues in the 10-Q.
(c)
Costs associated with stock compensation and restricted stock amortization, which have been reflected in the categories associated with the direct personnel costs, which are combined with the cash costs in the 10-Q.
(d)
Reflects the change in market value of the vested Company stock held in the deferred compensation plan.
Adjustments to reconcile net cash provided from continuing operations:
Deferred income tax expense (benefit)
52,642
(34,167
)
26,141
(35,477
)
Depletion, depreciation, amortization and impairment
90,471
93,116
262,573
272,128
Abandonment and impairment of unproved properties
3,186
2,000
12,319
7,206
Derivative fair value loss
457,708
652,220
1,636,687
959,782
Cash settlements on derivative financial instruments
(464,677
)
(159,457
)
(1,005,522
)
(239,165
)
Divestiture contract obligation, including accretion, net of gain
10,930
11,602
57,791
8,467
Allowance for bad debts
-
-
-
-
Amortization of deferred issuance costs and other
1,401
1,994
6,521
6,253
Deferred and stock-based compensation
17,242
44,833
95,397
119,946
(Gain) loss on sale of assets and other
(135
)
(78
)
(548
)
(724
)
Loss on early extinguishment of debt
-
-
69,232
98
Changes in working capital:
Accounts receivable
(25,446
)
(67,066
)
(132,644
)
(116,204
)
Other current assets
3,621
(2,695
)
(19,478
)
(3,574
)
Accounts payable
15,918
13,073
52,292
34,313
Accrued liabilities and other
(14,979
)
(13,254
)
(177,806
)
(58,172
)
Net changes in working capital
(20,886
)
(69,942
)
(277,636
)
(143,637
)
Net cash provided from operating activities
$
520,969
$
191,854
$
1,252,089
$
475,289
RECONCILIATION OF NET CASH PROVIDED FROM OPERATING ACTIVITIES, AS REPORTED, TO CASH FLOW FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL, a non-GAAP measure
(Unaudited, in thousands)
Three Months Ended September 30,
Nine Months Ended September 30,
2022
2021
2022
2021
Net cash provided from operating activities, as reported
$
520,969
$
191,854
$
1,252,089
$
475,289
Net changes in working capital
20,886
69,942
277,636
143,637
Exploration expense
7,105
5,513
18,540
15,331
Lawsuit settlements
81
7,818
776
8,375
Transportation, gathering, processing and compression settlements
-
-
7,500
-
Non-cash compensation adjustment and other
688
945
1,599
3,453
Cash flow from operations before changes in working capital - non-GAAP measure
RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES AND DERIVATIVE FAIR VALUE INCOME (LOSS) TO CALCULATED CASH REALIZED NATURAL GAS, NGLs AND OIL PRICES WITH AND WITHOUT THIRD PARTY TRANSPORTATION, GATHERING AND COMPRESSION FEES, a non-GAAP measure
(Unaudited, in thousands, except per unit data)
Three Months Ended September 30,
Nine Months Ended September 30,
2022
2021
%
2022
2021
%
Natural gas, NGL and oil sales components:
Natural gas sales
$
1,053,863
$
494,917
$
2,593,540
$
1,152,283
NGL sales
325,989
309,232
1,039,057
795,173
Oil sales
55,300
45,156
191,798
127,051
Total oil and gas sales, as reported
$
1,435,152
$
849,305
69
%
$
3,824,395
$
2,074,507
84
%
Derivative fair value loss, as reported:
$
(457,708
)
$
(652,220
)
$
(1,636,687
)
$
(959,782
)
Cash settlements on derivative financial instruments - (gain) loss:
Natural gas
449,713
123,932
916,518
132,794
NGLs
(4,150
)
26,142
18,673
77,899
Crude Oil
19,114
9,383
70,331
28,472
Total change in fair value related to derivatives prior to settlement, a non-GAAP measure
$
6,969
$
(492,763
)
$
(631,165
)
$
(720,617
)
Transportation, gathering, processing and compression components:
Natural gas
$
176,324
$
165,864
$
513,548
$
486,161
NGLs
146,695
130,221
435,154
366,649
Oil
-
425
11
874
Total transportation, gathering, processing and compression, as reported
$
323,019
$
296,510
$
948,713
$
853,684
Natural gas, NGL and oil sales, including cash-settled derivatives: (c)
Natural gas sales
$
604,150
$
370,985
$
1,677,022
$
1,019,489
NGL sales
330,139
283,090
1,020,384
717,274
Oil sales
36,186
35,773
121,467
98,579
Total
$
970,475
$
689,848
41
%
2,818,873
1,835,342
54
%
Production of oil and gas during the periods (a):
Natural gas (mcf)
136,862,857
137,713,717
-1
%
399,834,208
399,929,389
0
%
NGL (bbl)
9,235,626
9,080,902
2
%
26,473,922
26,977,257
-2
%
Oil (bbl)
653,000
710,914
-8
%
2,099,630
2,245,972
-7
%
Gas equivalent (mcfe) (b)
196,194,613
196,464,613
0
%
571,275,520
575,268,763
-1
%
Production of oil and gas - average per day (a):
Natural gas (mcf)
1,487,640
1,496,888
-1
%
1,464,594
1,464,943
0
%
NGL (bbl)
100,387
98,705
2
%
96,974
98,818
-2
%
Oil (bbl)
7,098
7,727
-8
%
7,691
8,227
-7
%
Gas equivalent (mcfe) (b)
2,132,550
2,135,485
0
%
2,092,584
2,107,212
-1
%
Average prices, excluding derivative settlements and before third party transportation costs:
Natural gas (mcf)
$
7.70
$
3.59
114
%
$
6.49
$
2.88
125
%
NGL (bbl)
$
35.30
$
34.05
4
%
$
39.25
$
29.48
33
%
Oil (bbl)
$
84.69
$
63.52
33
%
$
91.35
$
56.57
61
%
Gas equivalent (mcfe) (b)
$
7.31
$
4.32
69
%
$
6.69
$
3.61
86
%
Average prices, including derivative settlements before third party transportation costs: (c)
Natural gas (mcf)
$
4.41
$
2.69
64
%
$
4.19
$
2.55
65
%
NGL (bbl)
$
35.75
$
31.17
15
%
$
38.54
$
26.59
45
%
Oil (bbl)
$
55.42
$
50.32
10
%
$
57.85
$
43.89
32
%
Gas equivalent (mcfe) (b)
$
4.95
$
3.51
41
%
$
4.93
$
3.19
55
%
Average prices, including derivative settlements and after third party transportation costs: (d)
Natural gas (mcf)
$
3.13
$
1.49
110
%
$
2.91
$
1.33
118
%
NGL (bbl)
$
19.86
$
16.83
18
%
$
22.11
$
13.00
70
%
Oil (bbl)
$
55.41
$
49.72
11
%
$
57.85
$
43.50
33
%
Gas equivalent (mcfe) (b)
$
3.30
$
2.00
64
%
$
3.27
$
1.71
91
%
Transportation, gathering and compression expense per mcfe
$
1.65
$
1.51
9
%
$
1.66
$
1.48
12
%
(a)
Represents volumes sold regardless of when produced.
(b)
Oil and NGLs are converted at the rate of one barrel equals six mcfe based upon the approximate relative energy content of oil to natural gas, which is not necessarily indicative of the relationship of oil and natural gas prices.
(c)
Excluding third party transportation, gathering and compression costs.
(d)
Net of transportation, gathering and compression costs.
