Range Resources(RRC)2024-02-21 22:00Reserves and Production - Proved reserves totaled 18.1 trillion cubic feet equivalent (Tcfe), with 64% being natural gas, 34% NGLs, and 2% crude oil and condensate [24]. - Total proved reserves as of December 31, 2023, were 18.1 Tcfe, a slight increase from the previous year, with developed reserves accounting for 64% [47][50]. - Proved undeveloped reserves (PUDs) as of December 31, 2023, totaled 21.6 Mmbbls of crude oil, 411.4 Mmbbls of NGLs, and 4.0 Tcf of natural gas, amounting to 6.6 Tcfe [57]. - Average production in 2023 was 2.14 Bcfe per day, up from 2.12 Bcfe per day in 2022, indicating a disciplined investment strategy in the Marcellus Shale [47]. - 2023 production volumes reached 538.1 billion cubic feet (Bcf) of natural gas, 37.9 million barrels (Mmbbls) of NGLs, and 2.5 Mmbbls of crude oil and condensate, averaging 2.14 billion cubic feet equivalent (Bcfe) per day [25]. - Average daily production volumes for natural gas in 2023 were 538,085 Mmcf, slightly down from 539,443 Mmcf in 2022 [61]. - The company drilled 50 productive development wells in 2023, maintaining a 100% success ratio [69]. - A successful drilling program in 2023 resulted in 50 gross natural gas wells with a 100% success rate [47]. Financial Performance - Realized cash flow from operating activities was 77.2 million in dividends and 7.9 billion, discounted at 10% per annum [24]. - Future net cash flows from proved reserves are estimated at 78,650 million in 2022 [60]. - The present value of future net cash flows after income tax is 24,545 million in 2022, representing a decline of 72.1% [60]. - Average sales price for natural gas decreased to 6.24 per mcf in 2022, a drop of 63.3% [61]. - The average price for a barrel of NGLs in 2023 was approximately 32% of the average price for equivalent volumes of oil [56]. - The company maintained a cash balance of 80.6 million in 2023, ending the year with 212 million in cash [47]. Cost Management - The company achieved an 11% reduction in transportation, gathering, processing, and compression costs per thousand cubic feet equivalent (mcfe) from 2022 [26]. - The company reduced its general and administrative expenses per mcfe by 5% and interest expenses per mcfe by 24% from 2022 [32]. - Costs incurred for the development of PUDs in 2023 were approximately 620 million and 575 million to $590 million allocated for drilling costs [46]. Environmental and Regulatory Compliance - The company aims to achieve net zero GHG emissions by year-end 2025, focusing on sustainable operations and recycling approximately 100% of produced water [47]. - The company is subject to extensive federal, state, and local regulations that can impact production viability and profitability, including compliance with the Energy Policy Act of 2005 [99]. - The company believes it is in substantial compliance with applicable laws and regulations, but acknowledges that changes in regulations could affect future costs and operations [99]. - The company is subject to GHG emissions regulations and may need to install control technologies for new or modified facilities if they exceed permitting thresholds [126]. - The company is in substantial compliance with environmental laws and does not expect material expenditures related to compliance in 2024 [130]. Workforce and Safety - Employee turnover rate averaged less than 3.5% over the five-year period ended December 31, 2023, indicating strong employee retention [77]. - The company has only recorded two OSHA incidents over 3.5 million work hours from 2021 to 2023, resulting in a Total Recordable Incident Rate of 0.11 [78]. - A 28% reduction in workforce recordable injuries was achieved compared to 2022, with no employee recordable injuries in 2023 [32]. - The company adopts a conservative approach to headcount management, evaluating the necessity of new hires to minimize layoffs during downturns [79]. Management and Competition - The executive team includes Dennis L. Degner (CEO, age 51), Mark S. Scucchi (CFO, age 46), Erin W. McDowell (General Counsel, age 45), and Dori A. Ginn (Controller, age 66) [82]. - The company faces substantial competition in the oil and gas industry, particularly in acquiring properties and securing personnel, with many competitors having significantly greater financial resources [87]. - The company employs a strategy of marketing its natural gas, NGLs, and oil production based on price, credit quality, and service reliability, with alternative purchasers readily available [89].