Range Resources(US:RRC)2022-02-22 21:47Reserves and Production - Estimated proved reserves increased by 3% to 17.8 Tcfe as of December 31, 2021, from 17.2 Tcfe at December 31, 2020[18] - Total production for 2021 was 541.0 Bcf of natural gas, 36.4 Mmbbls of NGLs, and 3.0 Mmbbls of crude oil and condensate, with an average daily production of 2.13 Bcfe per day, a decrease of 5% from 2020[20] - Average production in 2021 was 2.13 Bcfe per day, a 5% decrease from 2020, primarily due to the sale of North Louisiana properties[37] - Proved undeveloped reserves (PUDs) as of December 31, 2021, totaled 28.8 Mmbbls of crude oil, 423.8 Mmbbls of NGLs, and 4.6 Tcf of natural gas, equating to 7.4 Tcfe[47] - Proved reserves as of December 31, 2021, were 17.8 Tcfe, reflecting a 3% increase of 572.4 Bcfe from 2020, driven by drilling additions of 1.6 Tcfe and positive performance revisions of 1.0 Tcfe[54] Financial Performance - Average realized price (excluding derivative settlements) increased by 110% from 2020, while the average realized price (including derivative settlements) increased by 86% from 2020[24] - Total debt decreased by $165.3 million, and cash on hand increased by $214.0 million[24] - The pretax present value of future net cash flows was $14.9 billion, discounted at 10% per annum, with a standardized after-tax measure of discounted future net cash flows of $12.5 billion[19] - Future net cash flows from proved reserves for 2021 were estimated at $39,919 million, a significant increase from $9,795 million in 2020[48] - The company divested over $1.0 billion in assets over the last three years to enhance capital resources and improve financial flexibility[55] Operational Efficiency - The company achieved a 100% drilling success rate in 2021, drilling 59 productive wells, including 58 development wells and 1 exploratory well[61] - The company maintained a high-quality multi-year drilling inventory with over 3,400 proven and unproven drilling locations[29] - The capital budget for 2022 is projected to be between $460.0 million and $480.0 million, with $425.0 million to $445.0 million allocated for drilling costs[37] - Direct operating expenses were reduced by $16.9 million, an 18% decrease from 2020, reflecting the divestiture of higher operating cost properties[24] - Production costs for lease operating were $0.10 per mcfe in 2021, consistent with 2020[53] Environmental Commitment - The company is committed to achieving net zero greenhouse gas emissions by year-end 2025, including both Scope 1 and Scope 2 emissions[24] - The company believes it is in substantial compliance with environmental laws, with no material adverse effects from compliance in 2021, and anticipates similar outcomes in 2022[120] - The EPA has proposed regulations under the Clean Air Act to set methane emission standards for new and modified oil and natural gas facilities, which could significantly impact operational costs[114] - The Pennsylvania Department of Environmental Protection has adopted heightened permitting conditions for natural gas facilities to regulate greenhouse gas emissions, potentially increasing capital expenditures[115] Safety and Workforce - The company achieved a 40% reduction in employee recordable incident rates compared to 2020, emphasizing its commitment to safety[24] - The company emphasizes a strong safety culture, achieving only eight OSHA recordable incidents over 4.1 million work hours from 2019 to 2021, resulting in an average Total Recordable Incident Rate of 0.4[71] - As of January 1, 2022, the company had 527 full-time employees with a voluntary turnover rate averaging less than 5.5% over the five-year period ending December 31, 2021[70] - The compensation program includes equity awards for all full-time employees, aimed at fostering a sense of ownership and engagement in the company's success[70] Regulatory Environment - The company is subject to extensive federal, state, and local regulations that can influence production viability and profitability[89] - The company has a commitment to compliance with applicable laws and regulations, which is essential for maintaining its financial position and operational results[89] - The company is subject to OSHA regulations, ensuring compliance with health and safety standards for employees[121] - The company regularly incurs costs to comply with environmental laws, which are expected to continue in the future[120]