Range Resources Corporation
10/27/2026 | Press release | Distributed by Public on 10/27/2026 14:46
Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview of Our Business
We are an independent natural gas, natural gas liquids and oil company engaged in the exploration, development and acquisition of natural gas, NGLs and oil properties in the Appalachian region of the United States. We operate in one segment and have a single company-wide management team that administers all properties as a whole rather than by discrete operating segments. We measure financial performance as a single enterprise and not on a geographical or an area-by-area basis.
Our overarching business objective is to build stockholder value through returns-focused development of properties. 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. 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. We believe we are well-positioned to manage 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 the partial hedging of our production;
•
maintaining a strong balance sheet; and
•
optimizing drilling, completion and operational efficiencies.
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.
We prepare our financial statements in conformity with U.S. GAAP, which requires us to make estimates and assumptions that affect our reported results of operations and the amount of our reported assets, liabilities and proved reserves. We use the successful efforts method of accounting for our natural gas, NGLs and oil activities. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the preceding consolidated financial statements and notes in Item 1.
Merger with EQT
On October 25, 2026, we entered into an Agreement and Plan of Merger (the "Merger Agreement") with EQT Corporation ("EQT") to combine via an all-stock merger transaction (the "Merger"). For additional information about the Merger, see Note 16 to our consolidated financial statements in Item 1 of Part I and Risk Factors in Item 1A of Part II.
Market Conditions
We believe we are positioned for sustainable long-term success. We continue to monitor the impact of the actions of OPEC and other large hydrocarbon producing nations; the Russia-Ukraine war; military action in, and flows of energy from, 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 the energy sector, including those focused on transitioning towards lower carbon energy. We expect prices for the commodities we produce to remain volatile given the complex dynamics of supply and demand that exist in the global energy markets. Longer-term natural gas futures prices remain constructive based on market expectations of continued liquefied natural gas ("LNG") export expansion and increasing global power demand, while associated gas-related activity in oil basins and dry gas basin activity are expected to show modest rates of growth due to infrastructure constraints, moderated reinvestment rates and inventory deterioration. In addition, the global energy shortage experienced in recent years and geopolitical disruptions of energy flows from key producing regions further highlighted the need for affordable and reliable fuel sources, supporting continued strong structural demand growth for U.S. LNG exports, as well as domestic electricity generation. Other factors such as supply chain disruptions, cost inflation, concerns over a potential economic recession and the pace of changes in global monetary policy
may impact global demand for natural gas, NGLs and oil. We continue to assess and monitor the impact of these factors on our business and operations.
Benchmarks decreased for natural gas and increased for NGLs and oil in third quarter 2026 when compared to the same period of the prior year. In the third quarter 2026, average natural gas prices decreased year-over-year primarily due to U.S. production growth and uncertain forecasts of winter weather related demand. Conversely, NGLs and oil prices rose due to global demand for U.S production. Benchmarks increased for natural gas, oil and NGLs in first nine months 2026 when compared to the same period of the prior year.
The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the three and nine months ended September 30, 2026 and 2025:
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
|
2026 |
2025 |
2026 |
2025 |
||||||||||||
|
Benchmarks: |
|||||||||||||||
|
Average NYMEX prices (a) |
|||||||||||||||
|
Natural gas (per mcf) |
$ |
2.95 |
$ |
3.07 |
$ |
3.57 |
$ |
3.39 |
|||||||
|
Oil (per bbl) |
85.60 |
64.98 |
83.57 |
66.32 |
|||||||||||
|
Mont Belvieu NGLs composite (per gallon) (b) |
0.62 |
0.52 |
0.59 |
0.57 |
|||||||||||
(a)
Based on weighted average of bid week prompt month prices on the New York Mercantile Exchange ("NYMEX").
(b)
Based on our estimated NGLs product composition per barrel.
Prices for 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 these benchmarks for many reasons, including quality, location or production being sold at different indices.
Consolidated Results of Operations
Overview of Third Quarter 2026 Results
In third quarter 2026, we experienced an increase in revenue from the sale of natural gas, NGLs and oil compared to the same quarter of 2025, due to a 5% increase in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) combined with a 12% increase in total production.
During third quarter 2026, we recognized net income of $175.3 million, or $0.75 per diluted common share compared to net income of $144.3 million, or $0.60 per diluted common share during third quarter 2025. The higher net income in third quarter 2026 compared to third quarter 2025 is primarily due to increased realized prices combined with an increase in production.
Our third quarter 2026 financial and operating performance included the following results:
•
revenue from the sale of natural gas, NGLs and oil increased 21% from the same period of 2025 due to an 8% increase in average realized prices (before cash settlements on our derivatives) combined with a 12% increase in production volumes;
•
revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) increased 17% from the same period of 2025;
•
direct operating expense per mcfe increased to $0.13 during third quarter 2026 compared to $0.12 during the same period of 2025, primarily due to higher workovers and increased water hauling costs due to higher diesel prices;
•
transportation, gathering, processing and compression per mcfe was $1.52 in third quarter 2026 compared to $1.47 in the same period of 2025, primarily due to increased processing costs that are driven by higher commodity prices;
•
general and administrative expense per mcfe decreased to $0.21 in third quarter 2026 compared to $0.22 in the same period of 2025, primarily due to higher production volumes and lower legal expenses; and
•
interest expense per mcfe decreased 50% from the same period of 2025 due to lower debt balances and lower interest rates.
Third quarter 2026 also included the following returns of capital and balance sheet highlights:
•
paid $23.4 million of dividends, an 11% higher dividend of $0.10 per share compared to $0.09 per share in the same period of 2025; and
•
maintained substantial liquidity with $1.5 billion available under our credit facility.
We generated $307.6 million of cash from operating activities in third quarter 2026, an increase of $60.1 million from third quarter 2025, which reflects the impact of higher realized prices.
Overview of First Nine Months 2026 Results
In first nine months 2026, we experienced an increase in revenue from the sale of natural gas, NGLs and oil compared to the same period of 2025 due to a 13% increase in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) and a 6% increase in total production.
During first nine months 2026, we recognized net income of $712.3 million, or $3.02 per diluted common share compared to net income of $478.9 million, or $1.99 per diluted common share during the same period 2025. The higher net income in first nine months 2026 compared to first nine months 2025 is primarily due to increased realized prices combined with an increase in total production.
Our first nine months 2026 financial and operating performance included the following results:
•
revenue from the sale of natural gas, NGLs and oil increased 18% from the same period of 2025 due to a 12% increase in average realized prices (before cash settlements on our derivatives) combined with a 6% increase in production volumes;
•
revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) increased 15% from the same period of 2025;
•
direct operating expense per mcfe increased to $0.14 in first nine months 2026 compared to $0.12 the same period of 2025, primarily due to higher workovers, equipment maintenance, and increased water hauling costs due to higher diesel prices;
•
transportation, gathering, processing and compression per mcfe increased to $1.55 in first nine months 2026 compared to $1.51 in the same period of 2025, primarily due to an increase in processing costs that are driven by higher commodity prices;
•
general and administrative expense per mcfe increased to $0.22 in first nine months 2026 compared to $0.21 in the same period of 2025, primarily due to higher employee-related costs, software costs and office rent expense; and
•
interest expense per mcfe decreased 38% from the same period of 2025 due to lower debt balances and lower interest rates.
First nine months 2026 also included the following returns of capital and balance sheet highlights:
•
repurchased $105.5 million (2.8 million shares) of our common stock;
•
paid $70.8 million of dividends, increasing per share dividend by 11% to a cumulative $0.30 per share compared to $0.27 per share in the same period of 2025;
•
reduced our higher interest rate debt by redeeming $600 million principal balance of our 8.25% senior notes due 2029 by utilizing borrowings under the credit facility, while retaining $1.5 billion in available liquidity under our credit facility.
We generated $1.2 billion of cash from operating activities in first nine months 2026, an increase of $247.9 million from first nine months 2025, which reflects the impact of higher realized prices.
Natural Gas, NGLs and Oil Sales, Production and Realized Price Calculations
Our revenues vary primarily as a result of changes in realized commodity prices and production volumes. Our revenues are generally recognized when control of the product is transferred to the customer and collectability is reasonably assured. The following table illustrates the primary components of natural gas, NGLs and oil sales for the three and nine months ended September 30, 2026 and 2025 (in thousands):
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||
|
2026 |
2025 |
Change |
% |
2026 |
2025 |
Change |
% |
||||||||||||||||||||||||
|
Natural gas, NGLs and oil sales |
|||||||||||||||||||||||||||||||
|
Natural gas |
$ |
371,772 |
$ |
361,124 |
$ |
10,648 |
3 |
% |
$ |
1,415,649 |
$ |
1,249,456 |
$ |
166,193 |
13 |
% |
|||||||||||||||
|
NGLs |
320,962 |
224,375 |
96,587 |
43 |
% |
893,016 |
738,064 |
154,952 |
21 |
% |
|||||||||||||||||||||
|
Oil |
45,185 |
25,992 |
19,193 |
74 |
% |
141,593 |
82,529 |
59,064 |
72 |
% |
|||||||||||||||||||||
|
Total natural gas, NGLs and oil sales |
$ |
737,919 |
$ |
611,491 |
$ |
126,428 |
21 |
% |
$ |
2,450,258 |
$ |
2,070,049 |
$ |
380,209 |
18 |
% |
|||||||||||||||
Production growth is generated as new wells are placed in production, which is partially offset by the natural decline in production of existing wells. Our production for the three and nine months ended September 30, 2026 and 2025 is set forth in the following table:
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||
|
2026 |
2025 |
Change |
% |
2026 |
2025 |
Change |
% |
||||||||||||||||||||||||
|
Production (a) |
|||||||||||||||||||||||||||||||
|
Natural gas (mcf) |
156,406,269 |
141,133,949 |
15,272,320 |
11 |
% |
433,149,336 |
413,394,538 |
19,754,798 |
5 |
% |
|||||||||||||||||||||
|
NGLs (bbls) |
11,653,966 |
10,158,612 |
1,495,354 |
15 |
% |
32,139,618 |
30,107,652 |
2,031,966 |
7 |
% |
|||||||||||||||||||||
|
Oil (bbls) |
597,916 |
479,142 |
118,774 |
25 |
% |
1,928,670 |
1,483,512 |
445,158 |
30 |
% |
|||||||||||||||||||||
|
Total (mcfe) (b) |
229,917,561 |
204,960,473 |
24,957,088 |
12 |
% |
637,559,064 |
602,941,522 |
34,617,542 |
6 |
% |
|||||||||||||||||||||
|
Average daily production (a) |
|||||||||||||||||||||||||||||||
|
Natural gas (mcf) |
1,700,068 |
1,534,065 |
166,003 |
11 |
% |
1,586,628 |
1,514,266 |
72,362 |
5 |
% |
|||||||||||||||||||||
|
NGLs (bbls) |
126,674 |
110,420 |
16,254 |
15 |
% |
117,728 |
110,284 |
7,444 |
7 |
% |
|||||||||||||||||||||
|
Oil (bbls) |
6,499 |
5,208 |
1,291 |
25 |
% |
7,065 |
5,434 |
1,631 |
30 |
% |
|||||||||||||||||||||
|
Total (mcfe) (b) |
2,499,104 |
2,227,831 |
271,273 |
12 |
% |
2,335,381 |
2,208,577 |
126,804 |
6 |
% |
|||||||||||||||||||||
(a)
Represents volumes sold regardless of when produced.
(b)
Oil and NGLs volumes are converted to mcfe at the rate of one barrel equals six mcf based upon the approximate relative energy content of oil to natural gas, which is not indicative of the relationship between oil and natural gas prices.
Our average realized price received (including all derivative settlements and third-party transportation costs) during third quarter 2026 was $1.91 per mcfe compared to $1.82 per mcfe in third quarter 2025. Our average realized price received (including all derivative settlements and third-party transportation costs) during first nine months 2026 was $2.35 per mcfe compared to $2.08 per mcfe in first nine months 2025. Our average realized prices (excluding derivative settlements) do not include derivative settlements or third-party transportation costs which are reported in transportation, gathering, processing and compression expense in the accompanying consolidated statements of income. Our average realized prices (including derivative settlements) do not include transportation costs where we receive net revenue proceeds from purchasers. Our average realized prices (including derivative settlements and third-party transportation costs) calculation also includes all cash settlements for derivatives. We believe computed final realized prices should include the total impact of transportation, gathering, processing and compression expense. Our average realized price calculations for three and nine months ended September 30, 2026 and 2025 are shown below:
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||
|
2026 |
2025 |
Change |
% |
2026 |
2025 |
Change |
% |
||||||||||||||||||||||||
|
Average Prices |
|||||||||||||||||||||||||||||||
|
Average realized prices (excluding derivative settlements): |
|||||||||||||||||||||||||||||||
|
Natural gas (per mcf) |
$ |
2.38 |
$ |
2.56 |
$ |
(0.18 |
) |
(7 |
)% |
$ |
3.27 |
$ |
3.02 |
$ |
0.25 |
8 |
% |
||||||||||||||
|
NGLs (per bbl) |
27.54 |
22.09 |
5.45 |
25 |
% |
27.79 |
24.51 |
3.28 |
13 |
% |
|||||||||||||||||||||
|
Oil (per bbl) |
75.57 |
54.25 |
21.32 |
39 |
% |
73.41 |
55.63 |
17.78 |
32 |
% |
|||||||||||||||||||||
|
Total (per mcfe) (a) |
3.21 |
2.98 |
0.23 |
8 |
% |
3.84 |
3.43 |
0.41 |
12 |
% |
|||||||||||||||||||||
|
Average realized prices (including derivative settlements): |
|||||||||||||||||||||||||||||||
|
Natural gas (per mcf) |
$ |
2.74 |
$ |
2.96 |
$ |
(0.22 |
) |
(7 |
)% |
$ |
3.41 |
$ |
3.24 |
$ |
0.17 |
5 |
% |
||||||||||||||
|
NGLs (per bbl) |
27.47 |
22.48 |
4.99 |
22 |
% |
27.54 |
24.68 |
2.86 |
12 |
% |
|||||||||||||||||||||
|
Oil (per bbl) |
69.33 |
57.61 |
11.72 |
20 |
% |
64.25 |
57.46 |
6.79 |
12 |
% |
|||||||||||||||||||||
|
Total (per mcfe) (a) |
3.43 |
3.29 |
0.14 |
4 |
% |
3.90 |
3.59 |
0.31 |
9 |
% |
|||||||||||||||||||||
|
Average realized prices (including derivative settlements and third-party transportation costs paid by Range): |
|||||||||||||||||||||||||||||||
|
Natural gas (per mcf) |
$ |
1.65 |
$ |
1.84 |
$ |
(0.19 |
) |
(10 |
)% |
$ |
2.28 |
$ |
2.11 |
$ |
0.17 |
8 |
% |
||||||||||||||
|
NGLs (per bbl) |
12.11 |
8.42 |
3.69 |
44 |
% |
12.10 |
10.07 |
2.03 |
20 |
% |
|||||||||||||||||||||
|
Oil (per bbl) |
68.07 |
55.31 |
12.76 |
23 |
% |
63.01 |
55.67 |
7.34 |
13 |
% |
|||||||||||||||||||||
|
Total (per mcfe) (a) |
1.91 |
1.82 |
0.09 |
5 |
% |
2.35 |
2.08 |
0.27 |
13 |
% |
|||||||||||||||||||||
(a)
Oil and NGLs volumes are converted to mcfe at the rate of one barrel equals six mcf based upon the approximate relative energy content of oil to natural gas, which is not indicative of the relationship between oil and natural gas prices.
Realized prices include the impact of basis differentials and gains or losses realized from our basis hedging. The prices we receive for our natural gas can be more or less than the NYMEX price because of adjustments for delivery location, relative quality and other factors. The following table provides this impact on a per mcf basis:
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
|
2026 |
2025 |
2026 |
2025 |
||||||||||||
|
Average natural gas differentials below NYMEX |
$ |
(0.57 |
) |
$ |
(0.51 |
) |
$ |
(0.30 |
) |
$ |
(0.37 |
) |
|||
|
Realized gains (losses) on basis hedging |
$ |
0.02 |
$ |
0.02 |
$ |
- |
$ |
(0.02 |
) |
||||||
The following tables reflect our production and average sales prices (excluding derivative settlements and third-party transportation costs paid by Range) (in thousands, except prices):
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||
|
2025 |
Price |
Volume |
2026 |
2025 |
Price |
Volume |
2026 |
||||||||||||||||||||||||
|
Natural gas |
|||||||||||||||||||||||||||||||
|
Price (per mcf) |
$ |
2.56 |
$ |
(0.18 |
) |
$ |
- |
$ |
2.38 |
$ |
3.02 |
$ |
0.25 |
$ |
- |
$ |
3.27 |
||||||||||||||
|
Production (Mmcf) |
141,134 |
- |
15,272 |
156,406 |
413,395 |
- |
19,754 |
433,149 |
|||||||||||||||||||||||
|
Natural gas sales |
$ |
361,124 |
$ |
(28,430 |
) |
$ |
39,078 |
$ |
371,772 |
$ |
1,249,456 |
$ |
106,485 |
$ |
59,708 |
$ |
1,415,649 |
||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||
|
2025 |
Price |
Volume |
2026 |
2025 |
Price |
Volume |
2026 |
||||||||||||||||||||||||
|
NGLs |
|||||||||||||||||||||||||||||||
|
Price (per bbl) |
$ |
22.09 |
$ |
5.45 |
$ |
- |
$ |
27.54 |
$ |
24.51 |
$ |
3.28 |
$ |
- |
$ |
27.79 |
|||||||||||||||
|
Production (Mbbls) |
10,159 |
- |
1,495 |
11,654 |
30,108 |
- |
2,032 |
32,140 |
|||||||||||||||||||||||
|
NGLs sales |
$ |
224,375 |
$ |
63,559 |
$ |
33,028 |
$ |
320,962 |
$ |
738,064 |
$ |
105,140 |
$ |
49,812 |
$ |
893,016 |
|||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||
|
2025 |
Price |
Volume |
2026 |
2025 |
Price |
Volume |
2026 |
||||||||||||||||||||||||
|
Oil |
|||||||||||||||||||||||||||||||
|
Price (per bbl) |
$ |
54.25 |
$ |
21.32 |
$ |
- |
$ |
75.57 |
$ |
55.63 |
$ |
17.78 |
$ |
- |
$ |
73.41 |
|||||||||||||||
|
Production (Mbbls) |
479 |
- |
119 |
598 |
1,484 |
- |
445 |
1,929 |
|||||||||||||||||||||||
|
Oil sales |
$ |
25,992 |
$ |
12,750 |
$ |
6,443 |
$ |
45,185 |
$ |
82,529 |
$ |
34,299 |
$ |
24,765 |
$ |
141,593 |
|||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||
|
2025 |
Price |
Volume |
2026 |
2025 |
Price |
Volume |
2026 |
||||||||||||||||||||||||
|
Consolidated |
|||||||||||||||||||||||||||||||
|
Price (per mcfe) |
$ |
2.98 |
$ |
0.23 |
$ |
- |
$ |
3.21 |
$ |
3.43 |
$ |
0.41 |
$ |
- |
$ |
3.84 |
|||||||||||||||
|
Production (Mmcfe) |
204,960 |
- |
24,958 |
229,918 |
602,942 |
- |
34,617 |
637,559 |
|||||||||||||||||||||||
|
Total natural gas, NGLs and oil sales |
$ |
611,491 |
$ |
51,970 |
$ |
74,458 |
$ |
737,919 |
$ |
2,070,049 |
$ |
261,358 |
$ |
118,851 |
$ |
2,450,258 |
|||||||||||||||
Transportation, gathering, processing and compression expense was $349.9 million in third quarter 2026 compared to $301.1 million in third quarter 2025. These third-party costs were higher in third quarter 2026 compared to third quarter 2025 due to an increase in processing costs resulting from higher volumes along with higher commodity price-linked cost.
Transportation, gathering, processing and compression expense was $990.1 million in first nine months 2026 compared to $911.9 million in first nine months 2025. These third-party costs associated with NGLs were higher in first nine months 2026 compared to first nine months 2025 due to an increase in processing costs resulting from higher volumes along with higher commodity price-linked cost. Third-party costs associated with natural gas increased due to an increase in volumes and facility and equipment costs associated with gathering. We have included these costs in the calculation of average realized prices (including derivative settlements and third-party transportation expenses paid by Range). The following table summarizes transportation, gathering, processing and compression expense for the three and nine months ended September 30, 2026 and 2025 on a per mcf and per barrel basis (in thousands, except for costs per unit):
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||
|
2026 |
2025 |
Change |
% |
2026 |
2025 |
Change |
% |
||||||||||||||||||||||||
|
Transportation, gathering |
|||||||||||||||||||||||||||||||
|
Natural gas |
$ |
170,125 |
$ |
157,194 |
$ |
12,931 |
8 |
% |
$ |
491,422 |
$ |
469,416 |
$ |
22,006 |
5 |
% |
|||||||||||||||
|
NGLs |
179,054 |
142,815 |
36,239 |
25 |
% |
496,252 |
439,862 |
56,390 |
13 |
% |
|||||||||||||||||||||
|
Oil |
755 |
1,101 |
(346 |
) |
(31 |
)% |
2,401 |
2,655 |
(254 |
) |
(10 |
)% |
|||||||||||||||||||
|
Total |
$ |
349,934 |
$ |
301,110 |
$ |
48,824 |
16 |
% |
$ |
990,075 |
$ |
911,933 |
$ |
78,142 |
9 |
% |
|||||||||||||||
|
Natural gas (per mcf) |
$ |
1.09 |
$ |
1.11 |
$ |
(0.02 |
) |
(2 |
)% |
$ |
1.13 |
$ |
1.14 |
$ |
(0.01 |
) |
(1 |
)% |
|||||||||||||
|
NGLs (per bbl) |
15.36 |
14.06 |
1.30 |
9 |
% |
15.44 |
14.61 |
0.83 |
6 |
% |
|||||||||||||||||||||
|
Oil (per bbl) |
1.26 |
2.30 |
(1.04 |
) |
(45 |
)% |
1.24 |
1.79 |
(0.55 |
) |
(31 |
)% |
|||||||||||||||||||
|
Total (per mcfe) |
$ |
1.52 |
$ |
1.47 |
$ |
0.05 |
3 |
% |
$ |
1.55 |
$ |
1.51 |
0.04 |
3 |
% |
||||||||||||||||
Derivative fair value income was $58.1 million in third quarter 2026 compared to income of $92.9 million in third quarter 2025. Derivative fair value income was $98.2 million in first nine months 2026 compared to income of $88.7 million in first nine months 2025. All of our derivatives are accounted for using the mark-to-market accounting method. Mark-to-market accounting treatment can result in more volatility of our revenues as the change in the fair value of our commodity derivative positions is included in total revenue. As commodity prices increase or decrease, such changes will have an opposite effect on the mark-to-market value of our derivatives. Gains on our derivatives generally indicate potentially lower wellhead revenues in the future while derivative losses indicate potentially higher future wellhead revenues. The following table summarizes the impact of our commodity derivatives for the three and nine months ended September 30, 2026 and 2025 (in thousands):
|
Three Months Ended |
Nine Months Ended |
||||||||||||||
|
2026 |
2025 |
2026 |
2025 |
||||||||||||
|
Derivative fair value income per consolidated statements of income |
$ |
58,118 |
$ |
92,946 |
$ |
98,229 |
$ |
88,736 |
|||||||
|
Non-cash fair value income (loss): (a) |
|||||||||||||||
|
Natural gas derivatives |
$ |
11,032 |
$ |
33,981 |
$ |
63,260 |
$ |
(9,336 |
) |
||||||
|
NGLs derivatives |
(4,763 |
) |
(1,229 |
) |
(2,983 |
) |
- |
||||||||
|
Oil derivatives |
(6 |
) |
(1,839 |
) |
103 |
- |
|||||||||
|
Total non-cash fair value income (loss) (a) |
$ |
6,263 |
$ |
30,913 |
$ |
60,380 |
$ |
(9,336 |
) |
||||||
|
Net cash receipt (payment) on derivative settlements: |
|||||||||||||||
|
Natural gas derivatives |
$ |
56,384 |
$ |
56,420 |
$ |
63,504 |
$ |
90,263 |
|||||||
|
NGLs derivatives |
(797 |
) |
4,000 |
(7,986 |
) |
5,096 |
|||||||||
|
Oil derivatives |
(3,732 |
) |
1,613 |
(17,669 |
) |
2,713 |
|||||||||
|
Total net cash receipt |
$ |
51,855 |
$ |
62,033 |
$ |
37,849 |
$ |
98,072 |
|||||||
(a)
Non-cash fair value adjustments on commodity derivatives is a non-U.S. GAAP measure. Non-cash fair value adjustments on commodity derivatives only represent the net change between periods of the fair market values of commodity derivative positions and exclude the impact of settlements on commodity derivatives during the period. We believe that non-cash fair value adjustments on commodity derivatives is a useful supplemental disclosure to differentiate non-cash fair market value adjustments from settlements on commodity derivatives during the period. Non-cash fair value adjustments on commodity derivatives is not a measure of financial or operating performance under U.S. 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, NGLs and marketing revenue was $46.5 million in third quarter 2026 compared to $43.8 million in third quarter 2025, which is primarily the result of higher broker natural gas sales volumes (volumes not related to our production) slightly offset by lower broker natural gas sales prices. Brokered natural gas, NGLs and marketing revenue was $161.2 million in first nine months 2026 compared to $131.2 million in first nine months 2025, which is the result of higher broker natural gas sales volumes (volumes not related to our production) slightly offset by lower broker natural gas sales prices. We continue to optimize our transportation portfolio using these volumes. See also Brokered natural gas, NGLs and marketing expense below for more information on our net brokered margin.
Other income was $266,000 in third quarter 2026 compared to $284,000 in third quarter 2025. This includes $39,000 of interest income and a $3,000 gain on sale of assets in third quarter 2026 compared to $52,000 of interest income and a $6,000 loss on sale of assets in third quarter 2025. Other income was $832,000 in first nine months 2026 compared to $5.3 million in first nine months 2025. This includes $121,000 of interest income and a $32,000 gain on sale of assets in first nine months 2026 compared to $4.9 million of interest income and a $158,000 gain on sale of assets in first nine months 2025.
Operating Costs per Mcfe
We believe some of our expense fluctuations are best analyzed on a unit-of-production or per mcfe basis. The following table presents information about certain of our expenses on a per mcfe basis for the three and nine months ended September 30, 2026 and 2025:
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||
|
2026 |
2025 |
Change |
% |
2026 |
2025 |
Change |
% |
||||||||||||||||||||||||
|
Direct operating expense |
$ |
0.13 |
$ |
0.12 |
$ |
0.01 |
8 |
% |
$ |
0.14 |
$ |
0.12 |
$ |
0.02 |
17 |
% |
|||||||||||||||
|
Taxes other than income |
0.03 |
0.04 |
(0.01 |
) |
(25 |
)% |
0.03 |
0.04 |
(0.01 |
) |
(25 |
)% |
|||||||||||||||||||
|
General and administrative expense |
0.21 |
0.22 |
(0.01 |
) |
(5 |
)% |
0.22 |
0.21 |
0.01 |
5 |
% |
||||||||||||||||||||
|
Interest expense |
0.06 |
0.12 |
(0.06 |
) |
(50 |
)% |
0.08 |
0.13 |
(0.05 |
) |
(38 |
)% |
|||||||||||||||||||
|
Depletion, depreciation and amortization expense |
0.44 |
0.46 |
(0.02 |
) |
(4 |
)% |
0.44 |
0.46 |
(0.02 |
) |
(4 |
)% |
|||||||||||||||||||
Direct operating expense was $30.9 million in third quarter 2026 compared to $23.8 million in third quarter 2025. Direct operating expenses include normally recurring expenses to operate and produce our wells, non-recurring workover costs and repair-related expenses. Our direct operating costs increased in third quarter 2026 primarily due to increased water hauling costs due to higher diesel prices and higher workovers. We completed workovers at a cost of $1.8 million in third quarter 2026 compared to $1.0 million in third quarter 2025.
Direct operating expense was $87.4 million in first nine months 2026 compared to $72.3 million in first nine months 2025. Our direct operating costs increased in first nine months 2026 primarily due to increased water hauling costs due to higher diesel prices, higher workovers and higher equipment maintenance. We completed workovers at a cost of $4.2 million workover costs in first nine months 2026 compared to $2.6 million in first nine months 2025. The following table summarizes direct operating expense per mcfe for the three and nine months ended September 30, 2026 and 2025:
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||
|
2026 |
2025 |
Change |
% |
2026 |
2025 |
Change |
% |
||||||||||||||||||||||||
|
Direct operating |
|||||||||||||||||||||||||||||||
|
Lease operating expense |
$ |
0.12 |
$ |
0.11 |
$ |
0.01 |
9 |
% |
$ |
0.13 |
$ |
0.12 |
$ |
0.01 |
8 |
% |
|||||||||||||||
|
Workovers |
0.01 |
- |
0.01 |
100 |
% |
0.01 |
- |
0.01 |
100 |
% |
|||||||||||||||||||||
|
Stock-based compensation |
- |
0.01 |
(0.01 |
) |
(100 |
)% |
- |
- |
- |
- |
% |
||||||||||||||||||||
|
Total direct operating expense |
$ |
0.13 |
$ |
0.12 |
$ |
0.01 |
8 |
% |
$ |
0.14 |
$ |
0.12 |
$ |
0.02 |
17 |
% |
|||||||||||||||
Taxes other than income expense is predominantly comprised of the Pennsylvania impact fee which functions as a tax on unconventional natural gas and oil production in Pennsylvania. This impact fee was $7.0 million in third quarter 2026 compared to $7.9 million in third quarter 2025 and $19.4 million in first nine months 2026 compared to $22.2 million in first nine months 2025. The impact fee is based on drilling activities and is adjusted based on prevailing natural gas prices, which is consistent with the prior year. This category also includes franchise, real estate and other applicable taxes. The following table summarizes taxes other than income per mcfe for the three and nine months ended September 30, 2026 and 2025:
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||
|
2026 |
2025 |
Change |
% |
2026 |
2025 |
Change |
% |
||||||||||||||||||||||||
|
Taxes other than income |
|||||||||||||||||||||||||||||||
|
Impact fee |
$ |
0.03 |
$ |
0.04 |
$ |
(0.01 |
) |
(25 |
)% |
$ |
0.03 |
$ |
0.04 |
$ |
(0.01 |
) |
(25 |
)% |
|||||||||||||
|
Other |
- |
- |
- |
- |
% |
- |
- |
- |
- |
% |
|||||||||||||||||||||
|
Total taxes other than income |
$ |
0.03 |
$ |
0.04 |
$ |
(0.01 |
) |
(25 |
)% |
$ |
0.03 |
$ |
0.04 |
$ |
(0.01 |
) |
(25 |
)% |
|||||||||||||
General and administrative ("G&A") expense was $47.7 million in third quarter 2026 compared to $44.7 million in third quarter 2025. The third quarter 2026 increase of $3.0 million compared to the same period of 2025 is primarily due to higher employee-related costs slightly offset by lower legal expenses.
G&A expense was $140.7 million in first nine months 2026 compared to $128.5 million in first nine months 2025. The increase of $12.2 million is primarily due to higher employee-related costs, software costs and office rent expense. The following table summarizes G&A expense on a per mcfe basis for the three and nine months ended September 30, 2026 and 2025:
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||
|
2026 |
2025 |
Change |
% |
2026 |
2025 |
Change |
% |
||||||||||||||||||||||||
|
General and administrative |
|||||||||||||||||||||||||||||||
|
General and administrative |
$ |
0.16 |
$ |
0.17 |
$ |
(0.01 |
) |
(6 |
)% |
$ |
0.17 |
$ |
0.16 |
$ |
0.01 |
6 |
% |
||||||||||||||
|
Stock-based compensation |
0.05 |
0.05 |
- |
- |
% |
0.05 |
0.05 |
- |
- |
% |
|||||||||||||||||||||
|
Total general and administrative expense |
$ |
0.21 |
$ |
0.22 |
$ |
(0.01 |
) |
(5 |
)% |
$ |
0.22 |
$ |
0.21 |
$ |
0.01 |
5 |
% |
||||||||||||||
Interest expense was $14.6 million in third quarter 2026 compared to $24.3 million in third quarter 2025. Interest expense was $48.5 million in first nine months 2026 compared to $80.2 million in first nine months 2025. The following table presents information about interest expense per mcfe for the three and nine months ended September 30, 2026 and 2025:
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||
|
2026 |
2025 |
Change |
% |
2026 |
2025 |
Change |
% |
||||||||||||||||||||||||
|
Bank credit facility (a) |
$ |
0.03 |
$ |
0.02 |
$ |
0.01 |
50 |
% |
$ |
0.04 |
$ |
0.01 |
$ |
0.03 |
300 |
% |
|||||||||||||||
|
Senior notes |
0.03 |
0.09 |
(0.06 |
) |
(67 |
)% |
0.03 |
0.11 |
(0.08 |
) |
(73 |
)% |
|||||||||||||||||||
|
Amortization of debt issuance costs and other |
- |
0.01 |
(0.01 |
) |
(100 |
)% |
0.01 |
0.01 |
- |
- |
% |
||||||||||||||||||||
|
Total interest expense |
$ |
0.06 |
$ |
0.12 |
$ |
(0.06 |
) |
(50 |
)% |
$ |
0.08 |
$ |
0.13 |
$ |
(0.05 |
) |
(38 |
)% |
|||||||||||||
|
Average debt outstanding ($000) |
$ |
900,151 |
$ |
1,278,826 |
$ |
(378,675 |
) |
(30 |
)% |
$ |
1,003,303 |
$ |
1,495,083 |
$ |
(491,780 |
) |
(33 |
)% |
|||||||||||||
|
Average interest rate (b) |
6.1 |
% |
7.3 |
% |
(1.2 |
)% |
(16 |
)% |
6.1 |
% |
6.8 |
% |
(0.7 |
)% |
(10 |
)% |
|||||||||||||||
(a)
Includes commitment fees.
(b)
Excludes debt issuance costs.
The decrease in interest expense for three and nine months ended September 30, 2026 compared to the same periods of 2025 was primarily due to lower average outstanding debt balances and lower average interest rates. In January 2026, we repaid the $600 million principal balance of our 8.25% senior notes due 2029 by utilizing borrowings on our credit facility. In May 2025, we repaid the remaining principal balance of $606.5 million of our 4.875% senior notes due 2025 by utilizing cash on hand and borrowing on our credit facility. We had $294.0 million outstanding on the bank credit facility as of September 30, 2026 compared to $129.0 million outstanding for the same period of 2025.
Depletion, depreciation and amortization ("DD&A") expense was $102.0 million in third quarter 2026 compared to $93.8 million in third quarter 2025 and $283.7 million in first nine months 2026 compared to $275.9 million in first nine months 2025. This increase in expense for the quarter and nine months ended September 30, 2026 compared to the same periods of the prior year was due to higher production volumes slightly offset by lower depletion rates. Depletion expense, the largest component of DD&A expense, was $0.43 per mcfe in third quarter 2026 and first nine months 2026 compared to $0.45 per mcfe in the same periods of 2025. We have historically adjusted our depletion rates in the fourth quarter of each year based on the year-end reserve report and at other times during the year when circumstances indicate there has been a significant change in reserves or costs. The following table summarizes DD&A expense per mcfe for the three and nine months ended September 30, 2026 and 2025:
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||
|
2026 |
2025 |
Change |
% |
2026 |
2025 |
Change |
% |
||||||||||||||||||||||||
|
DD&A |
|||||||||||||||||||||||||||||||
|
Depletion and amortization |
$ |
0.43 |
$ |
0.45 |
$ |
(0.02 |
) |
(4 |
)% |
$ |
0.43 |
$ |
0.45 |
$ |
(0.02 |
) |
(4 |
)% |
|||||||||||||
|
Depreciation |
- |
- |
- |
- |
% |
- |
- |
- |
- |
% |
|||||||||||||||||||||
|
Accretion and other |
0.01 |
0.01 |
- |
- |
% |
0.01 |
0.01 |
- |
- |
% |
|||||||||||||||||||||
|
Total DD&A expense |
$ |
0.44 |
$ |
0.46 |
$ |
(0.02 |
) |
(4 |
)% |
$ |
0.44 |
$ |
0.46 |
$ |
(0.02 |
) |
(4 |
)% |
|||||||||||||
Other Operating Expenses
Our total operating expenses also include other expenses that generally do not trend with production. These expenses include stock-based compensation, brokered natural gas, NGLs and marketing expense, exploration expense, abandonment and impairment of unproved properties, exit costs, deferred compensation plan expense and gain on early extinguishment of debt. Stock-based compensation includes the amortization of restricted stock grants and performance units. See Note 9 to our consolidated financial statements for more information on allocation of stock-based compensation by functional expense categories.
Brokered natural gas, NGLs and marketing expense was $48.2 million in third quarter 2026 compared to $48.9 million in third quarter 2025 which is primarily the result of higher broker natural gas sales volumes (volumes not related to our production) slightly offset by lower broker natural gas sales prices. Brokered natural gas, NGLs and marketing expense was $165.7 million in first nine months 2026 compared to $142.1 million in first nine months 2025 which is primarily the result of higher broker natural gas sales volumes (volumes not related to our production) slightly offset by lower broker natural gas sales prices. The following table details our brokered natural gas, NGLs and marketing net margin for the three and nine months ended September 30, 2026 and 2025 (in thousands):
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
|
2026 |
2025 |
2026 |
2025 |
||||||||||||
|
Brokered natural gas, NGLs and marketing |
|||||||||||||||
|
Brokered natural gas sales |
$ |
42,890 |
$ |
41,602 |
$ |
149,625 |
$ |
124,438 |
|||||||
|
Brokered NGLs sales |
1,425 |
758 |
5,118 |
2,289 |
|||||||||||
|
Other marketing revenue |
2,208 |
1,447 |
6,505 |
4,497 |
|||||||||||
|
Brokered natural gas purchases and transportation |
(43,329 |
) |
(44,695 |
) |
(150,874 |
) |
(130,522 |
) |
|||||||
|
Brokered NGLs purchases |
(1,279 |
) |
(683 |
) |
(4,991 |
) |
(2,048 |
) |
|||||||
|
Other marketing expense |
(3,598 |
) |
(3,504 |
) |
(9,801 |
) |
(9,498 |
) |
|||||||
|
Brokered natural gas, NGLs and marketing net margin |
$ |
(1,683 |
) |
$ |
(5,075 |
) |
$ |
(4,418 |
) |
$ |
(10,844 |
) |
|||
Exploration expense was $6.0 million in third quarter 2026 compared to $8.1 million in third quarter 2025 primarily due to lower delay rentals. Exploration expense was $18.5 million in first nine months 2026 compared to $22.4 million in first nine months 2025 primarily due to lower delay rentals. The following table details our exploration expense for the three and nine months ended September 30, 2026 and 2025 (in thousands):
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||
|
2026 |
2025 |
Change |
% |
2026 |
2025 |
Change |
% |
||||||||||||||||||||||||
|
Exploration |
|||||||||||||||||||||||||||||||
|
Delay rentals and other |
$ |
3,938 |
$ |
5,397 |
$ |
(1,459 |
) |
(27 |
)% |
$ |
12,447 |
$ |
16,056 |
$ |
(3,609 |
) |
(22 |
)% |
|||||||||||||
|
Seismic |
410 |
866 |
(456 |
) |
(53 |
)% |
430 |
994 |
(564 |
) |
(57 |
)% |
|||||||||||||||||||
|
Personnel expense |
1,209 |
1,557 |
(348 |
) |
(22 |
)% |
4,488 |
4,376 |
112 |
3 |
% |
||||||||||||||||||||
|
Stock-based compensation expense |
396 |
285 |
111 |
39 |
% |
1,116 |
998 |
118 |
12 |
% |
|||||||||||||||||||||
|
Total exploration expense |
$ |
5,953 |
$ |
8,105 |
$ |
(2,152 |
) |
(27 |
)% |
$ |
18,481 |
$ |
22,424 |
$ |
(3,943 |
) |
(18 |
)% |
|||||||||||||
Abandonment and impairment of unproved properties expense was $5.8 million in third quarter 2026 compared to $4.9 million in third quarter 2025. Abandonment and impairment of unproved properties expense was $14.2 million in first nine months 2026 compared to $16.3 million in first nine months 2025. Abandonment and impairment of unproved properties for third quarter 2026 increased compared to the same period of 2025 due to higher expected lease expirations in Pennsylvania and first nine months 2026 decreased compared to the same period of 2025 due to lower than expected lease expirations in Pennsylvania. When we do not intend to drill on a property prior to expiration, we have allowed acreage to expire. We also expect to strategically allow expirations in the future, as we believe certain acreage needed for our future development plans can be efficiently leased again prior to development.
Exit costs were $6.3 million in third quarter 2026 compared to $8.1 million in third quarter 2025. Exit costs were $22.9 million in first nine months 2026 compared to $25.5 million in first nine months 2025. These costs are associated with normal accretion expense primarily related to retained liabilities for certain gathering, transportation and processing obligations extending through 2030. There was an additional $2.9 million of exit costs incurred in second quarter 2026 associated with the change in expected throughput volumes associated with this obligation.
Deferred compensation plan had a gain of $52,000 in third quarter 2026 compared to a gain of $765,000 in third quarter 2025. Deferred compensation plan expense was $735,000 in first nine months 2026 compared to an expense of $2.0 million in first nine months 2025. 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. The deferred compensation liability is adjusted to fair value by a charge or a credit to deferred compensation plan expense based on the number of vested shares in the plan at the time. The change in both periods is related to the change in Range stock price at the end of each period combined with fewer shares being held within the deferred compensation plan. The deferred compensation plan held 195,000 shares (186,000 vested shares) of Range common stock as of September 30, 2026 compared to
266,000 shares (258,000 vested shares) as of September 30, 2025.
Income tax expense was $48.7 million in third quarter 2026 compared to an expense of $39.0 million in third quarter 2025. Income tax expense was $193.5 million in first nine months 2026 compared to an expense of $116.2 million in first nine months 2025. The 2026 effective tax rates were not materially different than the federal statutory rate. The 2025 effective tax rates were different than the statutory tax rates due to tax credits, state income taxes and equity compensation.
Management's Discussion and Analysis of Financial Condition, Capital Resources and Liquidity
Commodity prices are the most significant factor impacting our revenues, net income, operating cash flows, and the amount of capital we have available to invest in our business, pay dividends and fund share or debt repurchases. Commodity prices have been and are expected to remain volatile. Our top priorities for using cash provided by operations are to fund our capital program, return capital to stockholders and maintain a strong balance sheet while making prudent investments in our business. We currently believe we have sufficient liquidity and capital resources to execute our business plan for the foreseeable future and across a wide range of commodity price scenarios. We continue to manage the duration and level of our drilling and completion commitments in order to maintain flexibility with regard to our activity level and capital expenditures.
Cash Flows
The following table presents sources and uses of cash and cash equivalents for the nine months ended September 30, 2026 and 2025 (in thousands):
|
Nine Months Ended September 30, |
|||||||
|
2026 |
2025 |
||||||
|
Sources of cash and cash equivalents |
|||||||
|
Operating activities |
$ |
1,161,752 |
$ |
913,818 |
|||
|
Disposal of assets |
67 |
161 |
|||||
|
Borrowings on credit facility |
2,262,000 |
885,000 |
|||||
|
Other |
12,370 |
35,144 |
|||||
|
Total sources of cash and cash equivalents |
$ |
3,436,189 |
$ |
1,834,123 |
|||
|
Uses of cash and cash equivalents |
|||||||
|
Additions to natural gas, NGLs and oil properties |
$ |
(506,436 |
) |
$ |
(433,415 |
) |
|
|
Repayments on credit facility |
(2,086,000 |
) |
(756,000 |
) |
|||
|
Acreage purchases |
(21,192 |
) |
(51,499 |
) |
|||
|
Additions to field service assets and other |
(9,875 |
) |
(2,036 |
) |
|||
|
Repayment of senior notes |
(608,250 |
) |
(608,699 |
) |
|||
|
Treasury stock purchases |
(105,476 |
) |
(176,613 |
) |
|||
|
Dividends paid |
(70,834 |
) |
(64,437 |
) |
|||
|
Other |
(28,318 |
) |
(45,739 |
) |
|||
|
Total uses of cash and cash equivalents |
$ |
(3,436,381 |
) |
$ |
(2,138,438 |
) |
|
Sources of Cash and Cash Equivalents
Cash flows provided from operating activities in first nine months 2026 were $1.2 billion compared to $913.8 million in first nine months 2025. Cash provided from operating activities is largely dependent upon commodity prices and production volumes, net of the effects of settlement of our derivative contracts. As of September 30, 2026, we have hedged more than 30% of our projected production for the remainder of 2026. Changes in working capital (as reflected in our consolidated statements of cash flows) for first nine months 2026 was a negative $46.4 million compared to a negative $41.8 million for first nine months 2025.
Borrowings on credit facility in first nine months 2026 were $2.3 billion, of which $608.3 million was utilized for the early redemption of principal of our 8.25% senior notes due 2029. Borrowings net of repayments on the credit facility for first nine months 2026 brought the credit facility balance to $294.0 million as of September 30, 2026.
Uses of Cash and Cash Equivalents
Additions to natural gas, NGLs and oil properties for first nine months 2026 were consistent with expectations relative to our announced 2026 capital budget.
Repayment of senior notes for first nine months 2026 includes the early redemption of principal of our 8.25% senior notes due 2029 through utilization of borrowings on our credit facility.
Treasury stock purchases for first nine months 2026 include the repurchase and settlement of 2.8 million shares for a total of $105.5 million (excluding cost of the 1% excise tax) as part of our previously announced stock repurchase program.
Liquidity and Capital Resources
Our main sources of liquidity are cash on hand, internally generated cash flow from operations, our bank credit facility and capital market transactions. As of September 30, 2026, we had approximately $1.5 billion of liquidity consisting of $12,000 of cash on hand and $1.5 billion available under our bank credit facility. Our borrowing base can be adjusted as a result of changes in commodity prices, acquisitions or divestitures of proved properties or financing activities. We may draw on our bank credit facility to meet short-term cash requirements.
We expect our 2026 capital program to be funded by cash flows from operations. During the nine months ended September 30, 2026, we generated $1.2 billion of cash flows from operating activities.
Bank Credit Facility
Our bank credit facility is secured by substantially all of our assets. As of September 30, 2026, we had a balance of $294.0 million on our credit facility and we maintained a borrowing base of $3.0 billion and aggregate lender commitments of $2.0 billion. We had undrawn letters of credit of $165.1 million as of September 30, 2026, which reduced our 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. On October 2, 2025, we entered into an amended and restated revolving bank credit facility, which continues to be secured by substantially all of our assets and has a maturity date of October 2, 2030. The amended credit facility maintains a maximum facility amount of $4.0 billion and an initial borrowing base of $3.0 billion, and increased bank commitments from $1.5 billion to $2.0 billion.
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 facility agreement). We were in compliance with all such covenants as of September 30, 2026.
Capital Requirements
We use cash for the development, exploration and acquisition of natural gas properties and for the payment of gathering, transportation and processing costs, operating, general and administrative costs, taxes and debt obligations, including interest, dividends and share repurchases. Expenditures for the development, exploration and acquisition of natural gas properties are the primary use of our capital resources. During first nine months 2026, we used operating cash flows to fund $537.5 million of capital expenditures as reported in our consolidated statement of cash flows within investing activities. The amount of our future capital expenditures will depend upon a number of factors including our cash flows from operating, investing and financing activities, infrastructure availability, supply and demand fundamentals and our ability to execute our development program. In addition, the impact of commodity prices on investment opportunities, the availability of capital and the timing and results of our development activities may lead to changes in funding requirements for future development. We periodically review our budget to assess changes in current and projected cash flows, debt requirements and other factors.
We may from time to time repurchase or redeem all or portions of our outstanding debt securities for cash, through exchanges for other securities or a combination of both. Such repurchases or redemptions may be made in open market transactions and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.
Cash Dividend Payments
On August 28, 2026, our Board of Directors announced the approval of a dividend of $0.10 per share payable on September 25, 2026, to stockholders of record at the close of business on September 11, 2026. The determination of the amount of future dividends, if any, to be declared and paid is at the sole discretion of the Board of Directors and primarily depends on cash flow, capital expenditures, debt covenants and various other factors.
Stock Repurchase Program
In February 2026, our Board of Directors approved an increase to our existing stock repurchase program to an aggregate $1.5 billion. Our total remaining share repurchase authorization was approximately $1.4 billion as of September 30, 2026.
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 future ability to sell an indeterminate amount of various types of debt and equity securities.
Cash Contractual Obligations
Our contractual obligations include long-term debt, operating leases, derivative obligations, asset retirement obligations and transportation, processing and gathering commitments including the divestiture contractual commitment that we incurred in conjunction with the sale of our North Louisiana assets. See Note 13 to our unaudited consolidated financial statements entitled "Commitments and Contingencies" for more information on commitments.
Interest Rates
As of September 30, 2026, we had approximately $500 million of senior notes which bore a fixed interest rate of 4.75%. Bank debt totaling $294.0 million bears interest at a floating rate, which was 5.6% as of September 30, 2026.
Off-Balance Sheet Arrangements
We do not currently utilize any significant off-balance sheet arrangements with unconsolidated entities to enhance our liquidity or capital resource position, or for any other purpose. However, as is customary in the oil and gas industry, we have various contractual work commitments, some of which are described above under Cash Contractual Obligations.
Changes in Prices and Costs
Our revenues, the value of our assets and our ability to obtain bank loans or additional capital on attractive terms have been and will continue to be affected by changes in natural gas, NGLs and oil prices and the costs to produce our reserves. Natural gas, NGLs and oil prices are subject to significant fluctuations that are beyond our ability to control or predict. Certain of our costs and expenses are affected by commodity prices, general inflation and tariffs. We expect costs for the remainder of 2026 to continue to be a function of supply and demand.
Forward-Looking Statements
This Quarterly Report on Form 10-Q, including certain sections of Management's Discussion and Analysis of Financial Condition and Results of Operations, includes forward-looking statements concerning trends or events potentially affecting our business. Such forward-looking statements include, but are not limited to, statements regarding the proposed Merger between EQT and the Company, the expected closing of the Merger and the timing thereof and the pro forma combined company and its operations, strategies and plans, integration, debt levels and leverage ratio, capital expenditures, cash flows and anticipated uses thereof, synergies, opportunities and anticipated future performance, expected accretion to earnings and free cash flow and anticipated dividends. These statements typically contain words such as "anticipates," "believes," "expects," "targets," "plans," "estimates," "predicts," "may," "should," "would" or similar words indicating that future outcomes are uncertain. In accordance with "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, these statements are accompanied by cautionary language identifying important factors, though not necessarily all such factors, which could cause future outcomes to differ materially from those set forth in the forward-looking statements. These important factors include, without limitation, the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement; the possibility that shareholders of EQT may not approve the issuance of EQT shares required in the Merger; the possibility that the shareholders of Range may not adopt the Merger Agreement; the risk that EQT or Range may be unable to obtain governmental and regulatory approvals required for the Merger, or required governmental and regulatory approvals may delay the Merger or result in the imposition of conditions that could cause the parties to abandon the Merger; the risk that the parties may not be able to satisfy the conditions to the Merger in a timely manner or at all; risks related to disruption of management's time from ongoing business operations due to the Merger; the risk that any announcements relating to the Merger could have adverse effects on the market price of EQT's or Range's common stock; the risk of any unexpected costs or expenses resulting from the Merger; the risk of any litigation relating to the Merger; the risk that the Merger and its announcement could have an adverse effect on the ability of EQT and Range to retain and hire key personnel, on the ability of EQT or Range to attract third-party customers and maintain their relationships with derivatives and joint venture counterparties and on EQT's and Range's operating results and businesses generally; the risk that problems may arise in successfully integrating the businesses of EQT and Range, which may result in the combined company not operating as effectively and efficiently as expected; the risk that the combined company may be unable to achieve synergies or other anticipated benefits of the Merger or it may take longer than expected to achieve those synergies or benefits and other important factors that could cause actual results to differ materially from those projected; the volatility in commodity prices for crude oil and natural gas; the effect of future regulatory or legislative actions on EQT and Range or the industry in which they operate, including the risk of new restrictions with respect to oil and natural gas development activities; the risk that the credit ratings of the combined business may be different from what EQT and Range expect; the ability of management to execute its plans to meet its goals and other risks inherent in EQT's and Range's businesses; public health crises and any related government policies and actions; the potential disruption or interruption of EQT's or Range's operations due to war, accidents, political events, civil unrest, severe weather, cyber threats, terrorist acts, or other natural or human causes beyond EQT's or Range's control; and the combined company's ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future revenues and operating results are based on our current forecasts for our existing operations and do not include the potential impact of any future events, including the Merger. We undertake no obligation to publicly update or revise any forward-looking statements after the date
they are made, whether as a result of new information, future events or otherwise. For additional risk factors affecting our business, see Part II, Item 1A. Risk Factors of this Quarterly Report on Form 10-Q and Item 1A. Risk Factors as set forth in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 24, 2026.
Range Resources Corporation published this content on October 27, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on October 27, 2026 at 20:46 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]