Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 25, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'RRC | ' |
Entity Registrant Name | 'RANGE RESOURCES CORP | ' |
Entity Central Index Key | '0000315852 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 163,879,524 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $246 | $348 |
Accounts receivable, less allowance for doubtful accounts of $2,487 and $2,494 | 221,304 | 179,667 |
Derivative assets | 80 | 4,421 |
Deferred tax asset | 40,362 | 51,414 |
Inventory and other | 17,353 | 12,451 |
Total current assets | 279,345 | 248,301 |
Derivative assets | 15,917 | 9,233 |
Equity method investments | 123,791 | 129,034 |
Natural gas and oil properties, successful efforts method | 9,309,743 | 9,032,881 |
Accumulated depletion and depreciation | -2,397,089 | -2,274,444 |
Natural gas and oil properties, successful efforts method, net | 6,912,654 | 6,758,437 |
Transportation and field assets | 120,036 | 118,625 |
Accumulated depreciation and amortization | -87,955 | -85,841 |
Transportation and field assets, net | 32,081 | 32,784 |
Other assets | 118,987 | 121,297 |
Total assets | 7,482,775 | 7,299,086 |
Current liabilities: | ' | ' |
Accounts payable | 273,756 | 258,431 |
Asset retirement obligations | 5,037 | 5,037 |
Accrued liabilities | 164,585 | 161,520 |
Accrued interest | 32,303 | 44,375 |
Derivative liabilities | 72,854 | 26,198 |
Total current liabilities | 548,535 | 495,561 |
Bank debt | 594,000 | 500,000 |
Subordinated notes | 2,640,866 | 2,640,516 |
Deferred tax liability | 778,955 | 771,980 |
Derivative liabilities | 142 | 25 |
Deferred compensation liability | 235,307 | 247,537 |
Asset retirement obligations and other liabilities | 235,289 | 229,015 |
Total liabilities | 5,033,094 | 4,884,634 |
Commitments and contingencies | ' | ' |
Stockholders’ Equity | ' | ' |
Preferred stock, $1 par, 10,000,000 shares authorized, none issued and outstanding | ' | ' |
Common stock, $0.01 par, 475,000,000 shares authorized, 163,763,190 issued at March 31, 2014 and 163,441,414 issued at December 31, 2013 | 1,638 | 1,634 |
Common stock held in treasury, 93,275 shares at March 31, 2014 and 98,520 shares at December 31, 2013 | -3,455 | -3,637 |
Additional paid-in capital | 1,969,948 | 1,959,636 |
Retained earnings | 476,554 | 450,583 |
Accumulated other comprehensive income | 4,996 | 6,236 |
Total stockholders’ equity | 2,449,681 | 2,414,452 |
Total liabilities and stockholders’ equity | $7,482,775 | $7,299,086 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts on accounts receivable | $2,487 | $2,494 |
Preferred stock, par value | $1 | $1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 475,000,000 | 475,000,000 |
Common stock, shares issued | 163,763,190 | 163,441,414 |
Common stock held in treasury, shares | 93,275 | 98,520 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues and other income: | ' | ' |
Natural gas, NGLs and oil sales | $572,017 | $398,239 |
Derivative fair value loss | -146,850 | -99,875 |
Loss on the sale of assets | -353 | -166 |
Brokered natural gas, marketing and other | 32,528 | 21,041 |
Total revenues and other income | 457,342 | 319,239 |
Costs and expenses: | ' | ' |
Direct operating | 39,795 | 30,188 |
Transportation, gathering and compression | 74,161 | 62,416 |
Production and ad valorem taxes | 11,678 | 11,383 |
Brokered natural gas and marketing | 34,129 | 22,315 |
Exploration | 14,846 | 16,780 |
Abandonment and impairment of unproved properties | 9,995 | 15,218 |
General and administrative | 49,212 | 84,058 |
Deferred compensation plan | -2,035 | 42,360 |
Interest expense | 45,401 | 42,210 |
Depletion, depreciation and amortization | 128,682 | 115,101 |
Total costs and expenses | 405,864 | 442,029 |
Income (loss) from operations before income taxes | 51,478 | -122,790 |
Income tax expense (benefit) | ' | ' |
Current | 6 | 25 |
Deferred | 18,951 | -47,205 |
Total income tax expense (benefit) | 18,957 | -47,180 |
Net income (loss) | $32,521 | ($75,610) |
Net income (loss) per common share: | ' | ' |
Basic | $0.20 | ($0.47) |
Diluted | $0.20 | ($0.47) |
Dividends paid per common share | $0.04 | $0.04 |
Weighted average common shares outstanding: | ' | ' |
Basic | 160,794 | 160,125 |
Diluted | 161,825 | 160,125 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Net income (loss) | $32,521 | ($75,610) | ||
Other comprehensive income (loss): | ' | ' | ||
Realized loss (gain) on hedge derivative contract settlements reclassified into natural gas, NGLs and oil sales from other comprehensive income, net of taxes | ' | -14,840 | [1] | |
De-designated hedges reclassified into natural gas, NGLs and oil sales, net of taxes | -1,240 | [2] | -7,425 | [2] |
De-designated hedges reclassified to derivative fair value income, net of taxes | ' | -1,390 | [3] | |
Change in unrealized deferred hedging (losses) gains, net of taxes | ' | -4,203 | [4] | |
Total comprehensive income (loss) | $31,281 | ($103,468) | ||
[1] | Amounts are net of income tax benefit of $9,488 for the three months ended March 31, 2013. | |||
[2] | Amounts are net of income tax benefit of $924 for the three months ended March 31, 2014 and $4,747 for the three months ended March 31, 2013. | |||
[3] | Amounts relate to transactions not probable of occurring and are presented net of income tax benefit of $889 for the three months ended March 31, 2013. | |||
[4] | Amounts are net of income tax benefit of $2,687 for the three months ended March 31, 2013. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Realized loss (gain) on hedge derivative contract settlements reclassified into natural gas, NGLs and oil sales from other comprehensive income, tax portion | ' | $9,488 |
De-designated hedges reclassified into natural gas, NGLs and oil sales, tax portion | 924 | 4,747 |
De-designated hedges reclassified to derivative fair value income, tax portion | ' | 889 |
Change in unrealized deferred hedging (losses) gains, tax effect | ' | $2,687 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities: | ' | ' |
Net income (loss) | $32,521 | ($75,610) |
Adjustments to reconcile net income (loss) to net cash provided from operating activities: | ' | ' |
Loss from equity method investments, net of distributions | 2,732 | 610 |
Deferred income tax expense (benefit) | 18,951 | -47,205 |
Depletion, depreciation and amortization | 128,682 | 115,101 |
Exploration dry hole costs | 1 | -159 |
Abandonment and impairment of unproved properties | 9,995 | 15,218 |
Derivative fair value loss | 146,850 | 99,875 |
Cash settlements on derivative financial instruments that do not qualify for hedge accounting | -104,584 | 382 |
Amortization of deferred financing costs and other | 2,873 | 2,080 |
Deferred and stock-based compensation | 12,593 | 54,991 |
Loss on the sale of assets | 353 | 166 |
Changes in working capital: | ' | ' |
Accounts receivable | -41,643 | 1,292 |
Inventory and other | -5,358 | 166 |
Accounts payable | 9,997 | 17,061 |
Accrued liabilities and other | -32,742 | 17,281 |
Net cash provided from operating activities | 181,221 | 201,249 |
Investing activities: | ' | ' |
Additions to natural gas and oil properties | -226,331 | -259,601 |
Additions to field service assets | -3,084 | -1,071 |
Acreage purchases | -50,690 | -8,794 |
Equity method investments | 2,511 | 1,885 |
Proceeds from disposal of assets | 294 | 38,196 |
Purchases of marketable securities held by the deferred compensation plan | -8,247 | -17,936 |
Proceeds from the sales of marketable securities held by the deferred compensation plan | 9,310 | 6,316 |
Net cash used in investing activities | -276,237 | -241,005 |
Financing activities: | ' | ' |
Borrowing on credit facilities | 412,000 | 368,000 |
Repayment on credit facilities | -318,000 | -1,060,000 |
Issuance of subordinated notes | ' | 750,000 |
Dividends paid | -6,550 | -6,521 |
Debt issuance costs | ' | -12,098 |
Issuance of common stock | ' | 343 |
Change in cash overdrafts | -1,122 | -12,458 |
Proceeds from the sales of common stock held by the deferred compensation plan | 8,586 | 12,432 |
Net cash provided from financing activities | 94,914 | 39,698 |
Decrease in cash and cash equivalents | -102 | -58 |
Cash and cash equivalents at beginning of period | 348 | 252 |
Cash and cash equivalents at end of period | $246 | $194 |
Summary_of_Organization_and_Na
Summary of Organization and Nature of Business | 3 Months Ended |
Mar. 31, 2014 | |
Summary of Organization and Nature of Business | ' |
(1) SUMMARY OF ORGANIZATION AND NATURE OF BUSINESS | |
Range Resources Corporation (“Range,” “we,” “us,” or “our”) is a Fort Worth, Texas-based independent natural gas, natural gas liquids (“NGLs”) and oil company primarily engaged in the exploration, development and acquisition of natural gas and oil properties in the Appalachian and Southwestern regions of the United States. Our objective is to build stockholder value through consistent growth in reserves and production on a cost-efficient basis. Range is a Delaware corporation with our common stock listed and traded on the New York Stock Exchange under the symbol “RRC.” |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation | ' |
(2) BASIS OF PRESENTATION | |
Presentation | |
These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Range Resources Corporation 2013 Annual Report on Form 10-K filed on February 26, 2014. The results of operations for the first quarter ended March 31, 2014 are not necessarily indicative of the results to be expected for the full year. These consolidated financial statements are unaudited but, in the opinion of management, reflect all adjustments necessary for fair presentation of the results for the periods presented. All adjustments are of a normal recurring nature unless otherwise disclosed. These consolidated financial statements, including selected notes, have been prepared in accordance with the applicable rules of the Securities and Exchange Commission (the “SEC”) and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. Certain reclassifications have been made to prior years reported amounts in order to conform with the current year presentation including reclassifications between accounts payable and accrued liabilities within cash flow from operating activities and a change in the presentation for our derivative activities. These reclassifications have no impact on previously reported net income, stockholders’ equity or cash flows. | |
De-designation of Commodity Derivative Contracts | |
Effective March 1, 2013, we elected to discontinue hedge accounting prospectively. After March 1, 2013, both realized and unrealized gains and losses are recognized in derivative fair value income or loss immediately each quarter as derivative contracts are settled and marked to market. For additional information, see Note 11. |
New_Accounting_Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2014 | |
New Accounting Standards | ' |
(3) NEW ACCOUNTING STANDARDS | |
Recently Adopted | |
In February 2013, an accounting standards update was issued to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, except for obligations such as asset retirement and environmental obligations, contingencies, guarantees, income taxes and retirement benefits, which are separately addressed within U.S. GAAP. An entity is required to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date as the sum of (1) the amount the entity agreed to pay on the basis of its arrangement among its co-obligors and (2) any amount the entity expects to pay on behalf of its co-obligors. Disclosure of the nature of the obligation, including how the liability arose, the relationship with other co-obligors and the terms and conditions of the arrangement is required. In addition, the total outstanding amount under the arrangement, not reduced by the effect of any amounts that may be recoverable from other entities, plus the carrying amount of any liability or receivable recognized must be disclosed. This accounting standards update is effective for us beginning in first quarter 2014 and should be applied retrospectively for those in-scope obligations resulting from joint and several liability arrangements that exist at the beginning of 2014. Early adoption was permitted and we adopted this new standard in first quarter 2014 which did not have an impact on our consolidated results of operations, financial position or cash flows. | |
In April 2014, an accounting standards update was issued that raised the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other material disposal transactions that do not meet the revised definition of a discontinued operations. Under the updated standard, a disposal of a component or group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component or group of components of the entity (1) has been disposed of by a sale, (2) has been disposed of other than by sale or (3) is classified as held for sale. This accounting standards update is effective for annual periods beginning on or after December 15, 2014 and is applied prospectively. Early adoption is permitted but only for disposals (or classifications that are held for sale) that have not been reported in financial statements previously issued or available for use. We adopted this new standard in first quarter 2014. There was no impact to our consolidated results of operations, financial position or cash flows as there were no disposals or assets held for sale in first quarter 2014. |
Dispositions
Dispositions | 3 Months Ended |
Mar. 31, 2014 | |
Dispositions | ' |
(4) DISPOSITIONS | |
2014 Dispositions | |
In December 2013, we announced our plan to offer for sale certain of our properties in the Permian Basin. These properties included approximately 90,000 (70,000 net) acres, almost all of which are held by production in Glasscock and Sterling Counties and are currently producing approximately 28 Mmcfe per day. The data room opened in January 2014 and we received bids in late February. In late April, an agreement related to this transaction was executed, subject to board approval. The completion of this transaction is dependent upon continuing due diligence procedures and there can be no assurance the transaction will be completed. In first quarter 2014, we also sold miscellaneous unproved and proved properties for proceeds of $294,000 resulting in a pre-tax loss of $353,000 | |
2013 Dispositions | |
In first quarter 2013, we sold miscellaneous proved properties and inventory for proceeds of $38.2 million resulting in a pre-tax loss of $166,000. |
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Taxes | ' | ||||||||
(5) INCOME TAXES | |||||||||
Income tax expense (benefit) from operations was as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Income tax expense (benefit) | $ | 18,957 | $ | (47,180 | ) | ||||
Effective tax rate | 36.8 | % | 38.4 | % | |||||
We compute our quarterly taxes under the effective tax rate method based on applying an anticipated annual effective rate to our year-to-date income, except for discrete items. Income taxes for discrete items are computed and recorded in the period that the specific transaction occurs. For first quarter ended March 31, 2014 and 2013, our overall effective tax rate on operations was different than the federal statutory rate of 35% due primarily to state income taxes, valuation allowances and other permanent differences. |
Income_Loss_Per_Common_Share
Income (Loss) Per Common Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income (Loss) Per Common Share | ' | ||||||||
(6) INCOME (LOSS) PER COMMON SHARE | |||||||||
Basic income or loss per share attributable to common shareholders is computed as (1) income or loss attributable to common shareholders (2) less income allocable to participating securities (3) divided by weighted average basic shares outstanding. Diluted income or loss per share attributable to common stockholders is computed as (1) basic income or loss attributable to common shareholders (2) plus diluted adjustments to income allocable to participating securities (3) divided by weighted average diluted shares outstanding. The following tables set forth a reconciliation of income or loss attributable to common shareholders to basic income or loss attributable to common shareholders to diluted income or loss attributable to common shareholders (in thousands except per share amounts): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net income (loss), as reported | $ | 32,521 | $ | (75,610 | ) | ||||
Participating basic earnings (a) | (560 | ) | (109 | ) | |||||
Basic net income (loss) attributed to common shareholders | 31,961 | (75,719 | ) | ||||||
Reallocation of participating earnings (a) | 3 | — | |||||||
Diluted net income (loss) attributed to common shareholders | $ | 31,964 | $ | (75,719 | ) | ||||
Net income (loss) per common share: | |||||||||
Basic | $ | 0.2 | $ | (0.47 | ) | ||||
Diluted | $ | 0.20 | $ | (0.47 | ) | ||||
(a) | Restricted Stock Awards represent participating securities because they participate in nonforfeitable dividends or distributions with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Participating securities, however, do not participate in undistributed net losses. | ||||||||
The following table provides a reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Denominator: | |||||||||
Weighted average common shares outstanding – basic | 160,794 | 160,125 | |||||||
Effect of dilutive securities: | |||||||||
Director and employee stock options and SARs | 1,031 | — | |||||||
Weighted average common shares outstanding – diluted | 161,825 | 160,125 | |||||||
Weighted average common shares – basic for the three months ended March 31, 2014 excludes 2.8 million shares and the three months ended March 31, 2013 excludes 2.7 million shares of restricted stock held in our deferred compensation plans (although all awards are issued and outstanding upon grant). Due to our loss from continuing operations for the three months ended March 31, 2013, we excluded all outstanding stock appreciation rights (“SARs”) and restricted stock from the computation of diluted net loss per share because the effect would have been anti-dilutive to the computations. |
Suspended_Exploratory_Well_Cos
Suspended Exploratory Well Costs | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Suspended Exploratory Well Costs | ' | ||||||||||||||||
(7) SUSPENDED EXPLORATORY WELL COSTS | |||||||||||||||||
We capitalize exploratory well costs until a determination is made that the well has either found proved reserves or that it is impaired. Capitalized exploratory well costs are presented in natural gas and oil properties in the accompanying consolidated balance sheets. If an exploratory well is determined to be impaired, the well costs are charged to exploration expense in the accompanying consolidated statements of operations. The following table reflects the changes in capitalized exploratory well costs for the three months ended March 31, 2014 and the year ended December 31, 2013 (in thousands except for number of projects): | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Balance at beginning of period | $ | 6,964 | $ | 57,360 | |||||||||||||
Additions to capitalized exploratory well costs pending the determination of proved reserves | 5,552 | 39,832 | |||||||||||||||
Reclassifications to wells, facilities and equipment based on determination of proved reserves | — | (84,840 | ) | ||||||||||||||
Capitalized exploratory well costs charged to expense | — | — | |||||||||||||||
Divested wells | — | (5,388 | ) | ||||||||||||||
Balance at end of period | 12,516 | 6,964 | |||||||||||||||
Less exploratory well costs that have been capitalized for a period of one year or less | (5,552 | ) | — | ||||||||||||||
Capitalized exploratory well costs that have been capitalized for a period greater than one year | $ | 6,964 | $ | 6,964 | |||||||||||||
Number of projects that have exploratory well costs that have been capitalized for a period greater than one year | 1 | 1 | |||||||||||||||
As of March 31, 2014, $7.0 million of capitalized exploratory well costs have been capitalized for more than one year which relates to one well in our Marcellus Shale area where we are evaluating pipeline options. The following table provides an aging of capitalized exploratory well costs that have been suspended for more than one year as of March 31, 2014 (in thousands): | |||||||||||||||||
Total | 2013 | 2012 | 2011 | ||||||||||||||
Capitalized exploratory well costs that have been capitalized for more than one year | $ | 6,964 | $ | 110 | $ | 6,801 | $ | 53 | |||||||||
Indebtedness
Indebtedness | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Indebtedness | ' | ||||||||
(8) INDEBTEDNESS | |||||||||
We had the following debt outstanding as of the dates shown below (bank debt interest rate at March 31, 2014 is shown parenthetically) (in thousands). No interest was capitalized during the three months ended March 31, 2014 or the year ended December 31, 2013: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Bank debt (1.9%) | $ | 594,000 | $ | 500,000 | |||||
Senior subordinated notes: | |||||||||
8.00% senior subordinated notes due 2019, net of $9,134 and $9,484 discount, respectively | 290,866 | 290,516 | |||||||
6.75% senior subordinated notes due 2020 | 500,000 | 500,000 | |||||||
5.75% senior subordinated notes due 2021 | 500,000 | 500,000 | |||||||
5.00% senior subordinated notes due 2022 | 600,000 | 600,000 | |||||||
5.00% senior subordinated notes due 2023 | 750,000 | 750,000 | |||||||
Total debt | $ | 3,234,866 | $ | 3,140,516 | |||||
Bank Debt | |||||||||
In February 2011, we entered into an amended and restated revolving bank facility, which we refer to as our bank debt or our bank credit facility, which is secured by substantially all of our assets. The bank credit facility provides for an initial commitment equal to the lesser of the facility amount or the borrowing base. On March 31, 2014, the facility amount was $1.75 billion and the borrowing base was $2.0 billion. The bank credit facility provides for a borrowing base subject to redeterminations semi-annually and for event-driven unscheduled redeterminations. As part of our semi-annual bank review completed on April 3, 2014, our borrowing base was reaffirmed at $2.0 billion and our facility amount was also reaffirmed at $1.75 billion. Our current bank group is composed of twenty-eight financial institutions with no one bank holding more than 9% of the total facility. The bank credit facility amount may be increased to the borrowing base amount with twenty days’ notice, subject to the banks agreeing to participate in the facility increase and our payment of a mutually acceptable commitment fee to those banks. As of March 31, 2014, the outstanding balance under our bank credit facility was $594.0 million. Additionally, we had $127.4 million of undrawn letters of credit leaving $1.0 billion of borrowing capacity available under the facility. The bank credit facility matures on February 18, 2016. Borrowings under the bank credit facility can either be at the Alternate Base Rate (as defined in the bank credit facility) plus a spread ranging from 0.50% to 1.5% or LIBOR borrowings at the Adjusted LIBO Rate (as defined in the bank credit facility) plus a spread ranging from 1.5% to 2.5%. The applicable spread is dependent upon borrowings relative to the borrowing base. We may elect, from time to time, to convert all or any part of our LIBOR loans to base rate loans or to convert all or any of the base rate loans to LIBOR loans. The weighted average interest rate was 2.0% for the three months ended March 31, 2014 compared to 2.1% for the three months ended March 31, 2013. A commitment fee is paid on the undrawn balance based on an annual rate of 0.35% to 0.50%. At March 31, 2014, the commitment fee was 0.375% and the interest rate margin was 1.75% on our LIBOR loans and 0.75% on our base rate loans. | |||||||||
Senior Subordinated Notes | |||||||||
If we experience a change of control, bondholders may require us to repurchase all or a portion of all of our senior subordinated notes at 101% of the aggregate principal amount plus accrued and unpaid interest, if any. All of the senior subordinated notes and the guarantees by our subsidiary guarantors are general, unsecured obligations and are subordinated to our bank debt and will be subordinated to future senior debt that we or our subsidiary guarantors are permitted to incur under the bank credit facility and the indentures governing the subordinated notes. | |||||||||
Guarantees | |||||||||
Range Resources Corporation is a holding company which owns no operating assets and has no significant operations independent of its subsidiaries. The guarantees by our subsidiaries of our senior subordinated notes are full and unconditional and joint and several, subject to certain customary release provisions. A subsidiary guarantor may be released from its obligations under the guarantee: | |||||||||
— | in the event of a sale or other disposition of all or substantially all of the assets of the subsidiary guarantor or a sale or other disposition of all the capital stock of the subsidiary guarantor, to any corporation or other person (including an unrestricted subsidiary of Range) by way of merger, consolidation, or otherwise; or | ||||||||
— | if Range designates any restricted subsidiary that is a guarantor to be an unrestricted subsidiary in accordance with the terms of the indenture. | ||||||||
Debt Covenants and Maturity | |||||||||
Our bank credit facility contains negative covenants that limit our ability, among other things, to pay cash dividends, incur additional indebtedness, sell assets, enter into certain hedging contracts, change the nature of our business or operations, merge, consolidate, or make investments. In addition, we are required to maintain a ratio of debt to EBITDAX (as defined in the credit agreement) of no greater than 4.25 to 1.0 and a current ratio (as defined in the credit agreement) of no less than 1.0 to 1.0. We are in compliance with our covenants under the bank credit facility at March 31, 2014. | |||||||||
The indentures governing our senior subordinated notes contain various restrictive covenants that are substantially identical to each other and may limit our ability to, among other things, pay cash dividends, incur additional indebtedness, sell assets, enter into transactions with affiliates, or change the nature of our business. At March 31, 2014, we are in compliance with these covenants. |
Asset_Retirement_Obligations
Asset Retirement Obligations | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Asset Retirement Obligations | ' | ||||
(9) ASSET RETIREMENT OBLIGATIONS | |||||
Our asset retirement obligations primarily represent the estimated present value of the amounts we will incur to plug, abandon and remediate our producing properties at the end of their productive lives. Significant inputs used in determining such obligations include estimates of plugging and abandonment costs, estimated future inflation rates and well life. The inputs are calculated based on historical data as well as current estimated costs. A reconciliation of our liability for plugging and abandonment costs for the three months ended March 31, 2014 is as follows (in thousands): | |||||
Three Months | |||||
Ended | |||||
March 31, 2014 | |||||
Beginning of period | $ | 230,077 | |||
Liabilities incurred | 2,128 | ||||
Liabilities settled | (384 | ) | |||
Disposition of wells | (122 | ) | |||
Accretion expense | 3,707 | ||||
Change in estimate | 1,089 | ||||
End of period | 236,495 | ||||
Less current portion | (5,037 | ) | |||
Long-term asset retirement obligations | $ | 231,458 | |||
Accretion expense is recognized as a component of depreciation, depletion and amortization expense in the accompanying statements of operations. |
Capital_Stock
Capital Stock | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Capital Stock | ' | ||||||||
(10) CAPITAL STOCK | |||||||||
We have authorized capital stock of 485.0 million shares which includes 475.0 million shares of common stock and 10.0 million shares of preferred stock. We currently have no preferred stock issued or outstanding. The following is a schedule of changes in the number of common shares outstanding since the beginning of 2013: | |||||||||
Three Months | Year | ||||||||
Ended | Ended | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Beginning balance | 163,342,894 | 162,514,098 | |||||||
SARs exercised | 48,280 | 278,916 | |||||||
Restricted stock granted | 74,553 | 401,122 | |||||||
Restricted stock units vested | 198,943 | 119,480 | |||||||
Treasury shares issued | 5,245 | 29,278 | |||||||
Ending balance | 163,669,915 | 163,342,894 | |||||||
Derivative_Activities
Derivative Activities | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Derivative Activities | ' | ||||||||||||||||||||||||
(11) DERIVATIVE ACTIVITIES | |||||||||||||||||||||||||
We use commodity-based derivative contracts to manage exposure to commodity price fluctuations. We do not enter into these arrangements for speculative or trading purposes. We do not utilize complex derivatives as we typically utilize commodity swaps or collars to (1) reduce the effect of price volatility of the commodities we produce and sell and (2) support our annual capital budget and expenditure plans. The fair value of our derivative contracts, represented by the estimated amount that would be realized upon termination, based on a comparison of the contract price and a reference price, generally the New York Mercantile Exchange (“NYMEX”), approximated a net unrealized pre-tax loss of $53.4 million at March 31, 2014. These contracts expire monthly through December 2016. The following table sets forth our derivative volumes by year as of March 31, 2014: | |||||||||||||||||||||||||
Period | Contract Type | Volume Hedged | Weighted | ||||||||||||||||||||||
Average Hedge Price | |||||||||||||||||||||||||
Natural Gas | |||||||||||||||||||||||||
2014 | Collars | 447,500 Mmbtu/day | $ 3.84–$ 4.48 | ||||||||||||||||||||||
2015 | Collars | 145,000 Mmbtu/day | $ 4.07–$ 4.56 | ||||||||||||||||||||||
2014 | Swaps | 240,145 Mmbtu/day | $4.18 | ||||||||||||||||||||||
2015 | Swaps | 234,966 Mmbtu/day | $4.19 | ||||||||||||||||||||||
2016 | Swaps | 60,000 Mmbtu/day | $4.18 | ||||||||||||||||||||||
Crude Oil | |||||||||||||||||||||||||
2014 | Collars | 2,000 bbls/day | $ 85.55–$ 100.00 | ||||||||||||||||||||||
2014 | Swaps | 9,169 bbls/day | $94.40 | ||||||||||||||||||||||
2015 | Swaps | 6,000 bbls day | $89.48 | ||||||||||||||||||||||
NGLs (C3-Propane) | |||||||||||||||||||||||||
2014 | Swaps | 12,000 bbls/day | $ 1.02/gallon | ||||||||||||||||||||||
NGLs (NC4-Normal butane) | |||||||||||||||||||||||||
2014 | Swaps | 4,000 bbls/day | $ 1.34/gallon | ||||||||||||||||||||||
NGLs (C5-Natural Gasoline) | |||||||||||||||||||||||||
2014 | Swaps | 1,000 bbls/day | $ 2.11/gallon | ||||||||||||||||||||||
Every derivative instrument is required to be recorded on the balance sheet as either an asset or a liability measured at its fair value. Through February 28, 2013, changes in the fair value of our derivatives that qualified for hedge accounting were recorded as a component of accumulated other comprehensive income (“ AOCI”) in the stockholders’ equity section of the accompanying consolidated balance sheets, which is later transferred to natural gas, NGLs and oil sales when the underlying physical transaction occurs and the hedging contract is settled. As of March 31, 2014, an unrealized pre-tax derivative gain of $8.1 million ($5.0 million after tax) was recorded in AOCI. See additional discussion below regarding the discontinuance of hedge accounting. If the derivative does not qualify as a hedge or is not designated as a hedge, changes in fair value of these non-hedge derivatives are recognized in earnings in derivative fair value income or loss. | |||||||||||||||||||||||||
For those derivative instruments that qualified or were designated for hedge accounting, settled transaction gains and losses were determined monthly, and were included as increases or decreases to natural gas, NGLs and oil sales in the period the hedged production was sold. Through February 28, 2013, we had elected to designate our commodity derivative instruments that qualified for hedge accounting as cash flow hedges. Natural gas, NGLs and oil sales include $2.2 million of gains in first quarter 2014 compared to gains of $36.5 million in the same period of 2013 related to settled hedging transactions. Any ineffectiveness associated with these hedge derivatives is reflected in derivative fair value income or loss in the accompanying statements of operations. The ineffective portion is generally calculated as the difference between the changes in fair value of the derivative and the estimated change in future cash flows from the item hedged. Derivative fair value loss for the three months ended March 31, 2014 includes no ineffective gains or losses compared to a loss of $2.9 million in the three months ended March 31, 2013. During the three months ended March 31, 2013, we recognized a pre-tax gain of $2.3 million in derivative fair value loss as a result of the discontinuance of hedge accounting where we determined the transaction was probable not to occur primarily due to the sale of our Delaware and Permian Basin properties in New Mexico and West Texas. | |||||||||||||||||||||||||
Discontinuance of Hedge Accounting | |||||||||||||||||||||||||
Effective March 1, 2013, we elected to de-designate all commodity contracts that were previously designated as cash flow hedges and elected to discontinue hedge accounting prospectively. AOCI included $103.6 million ($63.2 million after tax) of unrealized net gains, representing the marked-to-market value of the effective portion of our cash flow hedges as of February 28, 2013. As a result of discontinuing hedge accounting, the marked-to-market values included in AOCI as of the de-designation date were frozen and will be reclassified into earnings in natural gas, NGLs and oil sales in future periods as the underlying hedged transactions occur. As of March 31, 2014, we expect to reclassify into earnings $8.1 million of unrealized net gains in the remaining months of 2014. | |||||||||||||||||||||||||
With the election to de-designate hedging instruments, all of our derivative instruments continue to be recorded at fair value with unrealized gains and losses recognized immediately in earnings rather than in AOCI. These marked-to-market adjustments will produce a degree of earnings volatility that can be significant from period to period, but such adjustments will have no cash flow impact relative to changes in market prices. The impact to cash flow occurs upon settlement of the underlying contract. | |||||||||||||||||||||||||
Basis Swap Contracts | |||||||||||||||||||||||||
At March 31, 2014, we had natural gas basis swap contracts that are not designated for hedge accounting, which lock in the differential between NYMEX and certain of our physical pricing options in Appalachia. These contracts are for 254,164 Mmbtu/day and settle monthly through March 2015. The fair value of these contracts was a loss of $3.7 million on March 31, 2014. | |||||||||||||||||||||||||
Derivative Assets and Liabilities | |||||||||||||||||||||||||
The combined fair value of derivatives included in the accompanying consolidated balance sheets as of March 31, 2014 and December 31, 2013 is summarized below. The assets and liabilities are netted where derivatives with both gain and loss positions are held by a single counterparty and we have master netting arrangements. The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands): | |||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | |||||||||||||||||||||||
of Assets | |||||||||||||||||||||||||
Amounts | Amounts | Presented in the | |||||||||||||||||||||||
of Recognized | Offset in the | Balance Sheet | |||||||||||||||||||||||
Assets | Balance Sheet | ||||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||
Natural gas | –swaps | $ | 8,347 | $ | — | $ | 8,347 | ||||||||||||||||||
–collars | 7,328 | (584 | ) | 6,744 | |||||||||||||||||||||
–basis swaps | 3,123 | (3,123 | ) | — | |||||||||||||||||||||
Crude oil | –swaps | 1,179 | (273 | ) | 906 | ||||||||||||||||||||
NGLs | –C3 swaps | 1,877 | (1,877 | ) | — | ||||||||||||||||||||
–C4 swaps | 3,159 | (3,159 | ) | — | |||||||||||||||||||||
$ | 25,013 | $ | (9,016 | ) | $ | 15,997 | |||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||
Gross Amounts | Gross | Net Amounts of (Liabilities) | |||||||||||||||||||||||
of Recognized (Liabilities) | Presented in the | ||||||||||||||||||||||||
Amounts | Balance Sheet | ||||||||||||||||||||||||
Offset in the | |||||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||
Derivative (liabilities): | |||||||||||||||||||||||||
Natural gas | –swaps | $ | (27,720 | ) | $ | — | $ | (27,720 | ) | ||||||||||||||||
–collars | (26,738 | ) | 584 | (26,154 | ) | ||||||||||||||||||||
–basis swaps | (6,762 | ) | 3,123 | (3,639 | ) | ||||||||||||||||||||
Crude oil | –swaps | (10,027 | ) | 273 | (9,754 | ) | |||||||||||||||||||
–collars | (972 | ) | — | (972 | ) | ||||||||||||||||||||
NGLs | –C3 swaps | (9,692 | ) | 1,877 | (7,815 | ) | |||||||||||||||||||
–C4 swaps | — | 3,159 | 3,159 | ||||||||||||||||||||||
–C5 swaps | (101 | ) | — | (101 | ) | ||||||||||||||||||||
$ | (82,012 | ) | $ | 9,016 | $ | (72,996 | ) | ||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | |||||||||||||||||||||||
of Assets | |||||||||||||||||||||||||
Amounts | Amounts | Presented in the | |||||||||||||||||||||||
of Recognized | Offset in the | Balance Sheet | |||||||||||||||||||||||
Assets | Balance Sheet | ||||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||
Natural gas | –swaps | $ | 4,240 | $ | (1,218 | ) | $ | 3,022 | |||||||||||||||||
–collars | 16,057 | (7,671 | ) | 8,386 | |||||||||||||||||||||
–basis swaps | 7,686 | (7,686 | ) | — | |||||||||||||||||||||
Crude oil | –swaps | 3,567 | (1,321 | ) | 2,246 | ||||||||||||||||||||
NGLs | –C3 swaps | 826 | (826 | ) | — | ||||||||||||||||||||
–C4 swaps | 863 | (863 | ) | — | |||||||||||||||||||||
–C5 swaps | 121 | (121 | ) | — | |||||||||||||||||||||
$ | 33,360 | $ | (19,706 | ) | $ | 13,654 | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | |||||||||||||||||||||||
Amounts | Amounts | of (Liabilities) | |||||||||||||||||||||||
of Recognized | Offset in the | Presented in the | |||||||||||||||||||||||
(Liabilities) | Balance Sheet | Balance Sheet | |||||||||||||||||||||||
Derivative (liabilities): | |||||||||||||||||||||||||
Natural gas | –swaps | $ | (4,790 | ) | $ | 1,218 | $ | (3,572 | ) | ||||||||||||||||
–collars | (13,345 | ) | 7,671 | (5,674 | ) | ||||||||||||||||||||
–basis swaps | (3,756 | ) | 7,686 | 3,930 | |||||||||||||||||||||
Crude oil | –swaps | (4,711 | ) | 1,321 | (3,390 | ) | |||||||||||||||||||
–collars | (398 | ) | — | (398 | ) | ||||||||||||||||||||
NGLs | –C3 swaps | (18,172 | ) | 826 | (17,346 | ) | |||||||||||||||||||
–C4 swaps | (757 | ) | 863 | 106 | |||||||||||||||||||||
–C5 swaps | — | 121 | 121 | ||||||||||||||||||||||
$ | (45,929 | ) | $ | 19,706 | $ | (26,223 | ) | ||||||||||||||||||
The effects of our cash flow hedges (or those derivatives that previously qualified for hedge accounting) on AOCI in the accompanying consolidated balance sheets is summarized below (in thousands): | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
Change in Hedge | Realized Gain (Loss) | ||||||||||||||||||||||||
Derivative Fair Value | Reclassified from OCI | ||||||||||||||||||||||||
into Revenue (a) | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Swaps | $ | — | $ | 125 | $ | 836 | $ | 8,047 | |||||||||||||||||
Collars | — | (7,015 | ) | 1,328 | 30,732 | ||||||||||||||||||||
Income taxes | — | 2,687 | (924 | ) | (15,124 | ) | |||||||||||||||||||
$ | — | $ | (4,203 | ) | $ | 1,240 | $ | 23,655 | |||||||||||||||||
(a) | For realized gains upon derivative contract settlement, the reduction in AOCI is offset by an increase in revenues, NGLs and oil sales. For realized losses upon derivative contract settlement, the increase in AOCI is offset by a decrease in revenues. See additional discussion above regarding the discontinuance of hedge accounting. | ||||||||||||||||||||||||
The effects of our non-hedge derivatives (or those derivatives that do not qualify for hedge accounting) and the ineffective portion of our hedge derivatives on our consolidated statements of operations is summarized below (in thousands): | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
Gain (Loss) Recognized in | Gain (Loss) Recognized in | Derivative Fair Value | |||||||||||||||||||||||
Income (Non-hedge Derivatives) | Income (Ineffective Portion) | Income (Loss) | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Swaps | $ | (44,073 | ) | $ | (43,076 | ) | $ | — | $ | (1,995 | ) | $ | (44,073 | ) | $ | (45,071 | ) | ||||||||
Re-purchased swaps | — | 1,185 | — | — | — | 1,185 | |||||||||||||||||||
Collars | (39,148 | ) | (55,003 | ) | — | (896 | ) | (39,148 | ) | (55,899 | ) | ||||||||||||||
Call options | (63,629 | ) | (90 | ) | — | — | (63,629 | ) | (90 | ) | |||||||||||||||
Total | $ | (146,850 | ) | $ | (96,984 | ) | $ | — | $ | (2,891 | ) | $ | (146,850 | ) | $ | (99,875 | ) | ||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||
(12) FAIR VALUE MEASUREMENTS | ||||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There are three approaches for measuring the fair value of assets and liabilities: the market approach, the income approach and the cost approach, each of which includes multiple valuation techniques. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to measure fair value by converting future amounts, such as cash flows or earnings, into a single present value amount using current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace the service capacity of an asset. This is often referred to as current replacement cost. The cost approach assumes that the fair value would not exceed what it would cost a market participant to acquire or construct a substitute asset of comparable utility, adjusted for obsolescence. | ||||||||||||||||||
The fair value accounting standards do not prescribe which valuation technique should be used when measuring fair value and does not prioritize among the techniques. These standards establish a fair value hierarchy that prioritizes the inputs used in applying the various valuation techniques. Inputs broadly refer to the assumptions that market participants use to make pricing decisions, including assumptions about risk. Level 1 inputs are given the highest priority in the fair value hierarchy while Level 3 inputs are given the lowest priority. The three levels of the fair value hierarchy are as follows: | ||||||||||||||||||
— | Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | |||||||||||||||||
— | Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. | |||||||||||||||||
— | Level 3 – Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value. | |||||||||||||||||
Valuation techniques that maximize the use of observable inputs are favored. Assets and liabilities are classified in their entirety based on the lowest priority level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities within the levels of the fair value hierarchy. | ||||||||||||||||||
Fair Values – Recurring | ||||||||||||||||||
We use a market approach for our recurring fair value measurements and endeavor to use the best information available. The following tables present the fair value hierarchy table for assets and liabilities measured at fair value, on a recurring basis (in thousands): | ||||||||||||||||||
Fair Value Measurements at March 31, 2014 using: | ||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||
in Active | Other | Unobservable | Carrying | |||||||||||||||
Markets for | Observable | Inputs | Value as of | |||||||||||||||
Identical Assets | Inputs | (Level 3) | March 31, | |||||||||||||||
(Level 1) | (Level 2) | 2014 | ||||||||||||||||
Trading securities held in the deferred compensation plans | $ | 67,119 | $ | — | $ | — | $ | 67,119 | ||||||||||
Derivatives –swaps | — | (32,979 | ) | — | (32,979 | ) | ||||||||||||
–collars | — | (20,381 | ) | — | (20,381 | ) | ||||||||||||
–basis swaps | — | (3,611 | ) | (28 | ) | (3,639 | ) | |||||||||||
Fair Value Measurements at December 31, 2013 using: | ||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||
in Active | Other | Unobservable | Carrying | |||||||||||||||
Markets for | Observable | Inputs | Value as of | |||||||||||||||
Identical Assets | Inputs | (Level 3) | December 31, | |||||||||||||||
(Level 1) | (Level 2) | 2013 | ||||||||||||||||
Trading securities held in the deferred compensation plans | $ | 67,766 | $ | — | $ | — | $ | 67,766 | ||||||||||
Derivatives –swaps | — | (18,812 | ) | — | (18,812 | ) | ||||||||||||
–collars | — | 2,314 | — | 2,314 | ||||||||||||||
–basis swaps | — | 3,381 | 548 | 3,929 | ||||||||||||||
Our trading securities in Level 1 are exchange-traded and measured at fair value with a market approach using end of period market values. Derivatives in Level 2 are measured at fair value with a market approach using third-party pricing services, which have been corroborated with data from active markets or broker quotes. As of March 31, 2014, we have four natural gas basis swaps categorized as Level 3 due to the forward price curve being unavailable for the regional sales point. We based the fair value on the most similar regional forward natural gas basis curve received from a third party pricing service along with assumed basis differentials based on historical trends. | ||||||||||||||||||
Our trading securities held in the deferred compensation plan are accounted for using the mark-to-market accounting method and are included in other assets in the accompanying consolidated balance sheets. We elected to adopt the fair value option to simplify our accounting for the investments in our deferred compensation plan. Interest, dividends, and mark-to-market gains or losses are included in deferred compensation plan expense in the accompanying statement of operations. For first quarter 2014, interest and dividends were $274,000 and the mark-to-market adjustment was a gain of $429,000 compared to interest and dividends of $40,000 and mark-to-market gain of $1.6 million in the same period of the prior year. | ||||||||||||||||||
Fair Values—Reported | ||||||||||||||||||
The following table presents the carrying amounts and the fair values of our financial instruments as of March 31, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||
Value | Value | Value | Value | |||||||||||||||
Assets: | ||||||||||||||||||
Commodity swaps, collars and basis swaps | $ | 15,997 | $ | 15,997 | $ | 13,654 | $ | 13,654 | ||||||||||
Marketable securities(a) | 67,119 | 67,119 | 67,766 | 67,766 | ||||||||||||||
(Liabilities): | ||||||||||||||||||
Commodity swaps, collars and basis swaps | (72,996 | ) | (72,996 | ) | (26,223 | ) | (26,223 | ) | ||||||||||
Bank credit facility(b) | (594,000 | ) | (594,000 | ) | (500,000 | ) | (500,000 | ) | ||||||||||
Deferred compensation plan(c) | (262,123 | ) | (262,123 | ) | (271,738 | ) | (271,738 | ) | ||||||||||
8.00% senior subordinated notes due 2019(b) | (290,866 | ) | (313,875 | ) | (290,516 | ) | (319,500 | ) | ||||||||||
6.75% senior subordinated notes due 2020(b) | (500,000 | ) | (540,000 | ) | (500,000 | ) | (541,250 | ) | ||||||||||
5.75% senior subordinated notes due 2021(b) | (500,000 | ) | (535,625 | ) | (500,000 | ) | (530,625 | ) | ||||||||||
5.00% senior subordinated notes due 2022(b) | (600,000 | ) | (611,250 | ) | (600,000 | ) | (588,750 | ) | ||||||||||
5.00% senior subordinated notes due 2023(b) | (750,000 | ) | (759,375 | ) | (750,000 | ) | (732,188 | ) | ||||||||||
(a) | Marketable securities, which are held in our deferred compensation plans, are actively traded on major exchanges. Refer to Note 13 for additional information. | |||||||||||||||||
(b) | The book value of our bank debt approximates fair value because of its floating rate structure. The fair value of our senior subordinated notes is based on end of period market quotes which are Level 2 market values. Refer to Note 8 for additional information. | |||||||||||||||||
(c) | The fair value of our deferred compensation plan is updated on the closing price on the balance sheet date which is a Level 1 market value. | |||||||||||||||||
Our current assets and liabilities contain financial instruments, the most significant of which are trade accounts receivable and payable. We believe the carrying values of our current assets and liabilities approximate fair value. Our fair value assessment incorporates a variety of considerations including (1) the short-term duration of the instruments and (2) our historical and expected incurrence of bad debt expense. Non-financial liabilities initially measured at fair value include asset retirement obligations. For additional information, see Note 9. | ||||||||||||||||||
Concentrations of Credit Risk | ||||||||||||||||||
As of March 31, 2014, our primary concentrations of credit risk are the risks of collecting accounts receivable and the risk of counterparties’ failure to perform under derivative obligations. Most of our receivables are from a diverse group of companies, including major energy companies, pipeline companies, local distribution companies, financial institutions and end-users in various industries. Letters of credit or other appropriate security are obtained as deemed necessary to limit our risk of loss. Our allowance for uncollectible receivables was $2.5 million at both March 31, 2014 and December 31, 2013. As of March 31, 2014, our derivative contracts consist of swaps and collars. Our exposure to credit risk is diversified primarily among major investment grade financial institutions, the majority of which we have master netting agreements which provide for offsetting payables against receivables from separate derivative contracts. To manage counterparty risk associated with our derivatives, we select and monitor our counterparties based on our assessment of their financial strength and/or credit ratings. We may also limit the level of exposure with any single counterparty. At March 31, 2014, our derivative counterparties include fourteen financial institutions, of which all but two are secured lenders in our bank credit facility. At March 31, 2014, our net derivative assets include a net payable to these two counterparties that are not included in our bank credit facility of $3.8 million. |
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Stock-Based Compensation Plans | ' | ||||||||||||||||
(13) STOCK-BASED COMPENSATION PLANS | |||||||||||||||||
Stock-Based Awards | |||||||||||||||||
Stock options represent the right to purchase shares of stock in the future at the fair value of the stock on the date of grant. Most stock options granted under our stock option plans vest over a three-year period and expire five years from the date they are granted. In 2005, we began granting SARs to reduce the dilutive impact of our equity plans. Similar to stock options, SARs represent the right to receive a payment equal to the excess of the fair market value of shares of common stock on the date the right is exercised over the value of the stock on the date of grant. All SARs granted under our Amended and Restated 2005 Equity-Based Incentive Compensation Plan (the “2005 Plan”) will be settled in shares of stock, vest over a three-year period and have a maximum term of five years from the date they are granted. Beginning in first quarter 2011, the Compensation Committee of the Board of Directors also began granting restricted stock units under our equity-based stock compensation plans. These restricted stock units, which we refer to as restricted stock Equity Awards, vest over a three-year period. All awards granted have been issued at prevailing market prices at the time of grant and the vesting of these shares is based upon an employee’s continued employment with us. | |||||||||||||||||
In first quarter 2014, the Compensation Committee of the Board of Directors began granting performance share unit awards (“PSUs”) under our 2005 Plan. The number of shares to be issued is determined by our total shareholder return compared to the total shareholder return of a predetermined group of peer companies over the performance period. The performance unit awards vest at the end of three years. The grant date fair value of the PSUs is determined using a Monte Carlo simulation and is recognized as stock-based compensation expense over the three-year performance period. | |||||||||||||||||
The Compensation Committee also grants restricted stock to certain employees and non-employee directors of the Board of Directors as part of their compensation. Upon grant of these restricted shares, which we refer to as restricted stock Liability Awards, the shares generally are placed in our deferred compensation plan and, upon vesting, employees are allowed to take withdrawals either in cash or in stock. Compensation expense is recognized over the balance of the vesting period, which is typically three years for employee grants and immediate vesting for non-employee directors. All restricted stock awards are issued at prevailing market prices at the time of the grant and vesting is based upon an employee’s continued employment with us. Prior to vesting, all restricted stock awards have the right to vote such shares and receive dividends thereon. These Liability Awards are classified as a liability and are remeasured at fair value each reporting period. This mark-to-market adjustment is reported as deferred compensation plan expense in the accompanying consolidated statements of operations. | |||||||||||||||||
Total Stock-Based Compensation Expense | |||||||||||||||||
Stock-based compensation represents amortization of restricted stock, PSUs and SARs expense. Unlike the other forms of stock-based compensation, the mark-to-market adjustment of the liability related to the vested restricted stock held in our deferred compensation plans is directly tied to the change in our stock price and not directly related to the functional expenses and therefore, is not allocated to the functional categories. The following table details the allocation of stock-based compensation that is allocated to functional expense categories (in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Operating expense | $ | 852 | $ | 661 | |||||||||||||
Brokered natural gas and marketing expense | 528 | 249 | |||||||||||||||
Exploration expense | 1,153 | 1,070 | |||||||||||||||
General and administrative expense | 11,604 | 10,306 | |||||||||||||||
Total | $ | 14,137 | $ | 12,286 | |||||||||||||
Stock Appreciation Right Awards | |||||||||||||||||
We have two active equity-based stock plans, the 2005 Plan and the 2004 Non-Employee Director Stock Option Plan. Under these plans, incentive and non-qualified stock options, SARs, restricted stock units and various other awards may be issued to non-employee directors and employees pursuant to decisions of the Compensation Committee, which is comprised of only non-employee, independent directors. Of the 2.4 million grants outstanding at March 31, 2014, all are grants relating to SARs. Information with respect to SARs activity is summarized below: | |||||||||||||||||
Shares | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Exercise Price | |||||||||||||||||
Outstanding at December 31, 2013 | 2,582,074 | $ | 56.36 | ||||||||||||||
Granted | 1,104 | 81.74 | |||||||||||||||
Exercised | (137,271 | ) | 45.45 | ||||||||||||||
Expired/forfeited | — | — | |||||||||||||||
Outstanding at March 31, 2014 | 2,445,907 | $ | 56.98 | ||||||||||||||
During first three months 2014, we granted SARs to our non-executive chairman in conjunction with his retirement from Range as an employee. The weighted average grant date fair value of these SARs, based on our Black-Scholes-Merton assumptions, is shown below: | |||||||||||||||||
Three | |||||||||||||||||
Months Ended | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
Weighted average exercise price per share | $ | 81.74 | |||||||||||||||
Expected annual dividends per share | 0.2 | % | |||||||||||||||
Expected life in years | 4.3 | ||||||||||||||||
Expected volatility | 33 | % | |||||||||||||||
Risk-free interest rate | 1.4 | % | |||||||||||||||
Weighted average grant date fair value | $ | 23.17 | |||||||||||||||
Performance Share Unit Awards | |||||||||||||||||
A summary of our performance share unit awards (“PSUs”) outstanding at March 31, 2014 is summarized below: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Units (a) | Average | ||||||||||||||||
Grant Date Fair Value | |||||||||||||||||
Outstanding at December 31, 2013 | — | $ | — | ||||||||||||||
Units granted | 57,421 | 82.60 | |||||||||||||||
Outstanding at March 31, 2014 | 57,421 | $ | 82.60 | ||||||||||||||
(a) | These amounts reflect the number of performance units granted. The actual payout of shares may be between zero percent and 150% of the performance units granted depending on the total shareholder return ranking compared to the peer companies at the vesting date. | ||||||||||||||||
The following assumptions were used to estimate the fair value of PSUs granted during the first three months 2014: | |||||||||||||||||
Three | |||||||||||||||||
Months Ended | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Risk-free interest rate | 0.71 | % | |||||||||||||||
Expected annual volatility | 34 | % | |||||||||||||||
Grant date fair value per unit | $ | 82.6 | |||||||||||||||
We recorded PSU compensation expense of $533,000 in the first three months 2014 compared to none in the same period of 2013. | |||||||||||||||||
Restricted Stock Awards | |||||||||||||||||
Equity Awards | |||||||||||||||||
In first three months 2014, we granted 351,000 restricted stock Equity Awards to employees at an average grant price of $84.89 compared to 386,000 restricted stock Equity Awards granted to employees at an average grant price of $71.02 in the same period of 2013. These awards generally vest over a three-year period. We recorded compensation expense for these Equity Awards of $6.5 million in the first three months 2014 compared to $4.3 million in the same period of 2013. Equity Awards are not issued to employees until they are vested. Employees do not have the option to receive cash. | |||||||||||||||||
Liability Awards | |||||||||||||||||
In first three months 2014, we granted 76,000 shares of restricted stock Liability Awards as compensation to employees at an average price of $85.02 with vesting generally over a three-year period. We also granted 950 shares at an average price of $81.74 to a director, which vested immediately. In the same period of 2013, we granted 125,000 shares of Liability Awards as compensation to employees at an average price of $71.40 with vesting generally over a three-year period. We recorded compensation expense for Liability Awards of $4.7 million in first three months 2014 compared to $4.5 million in the same period of 2013. Substantially all of these awards are held in our deferred compensation plan, are classified as a liability and are remeasured at fair value each reporting period. This mark-to-market adjustment is reported as deferred compensation expense in our consolidated statements of operations (see additional discussion below). | |||||||||||||||||
A summary of the status of our non-vested restricted stock and restricted stock units outstanding at March 31, 2014 is summarized below: | |||||||||||||||||
Equity Awards | Liability Awards | ||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||
Average Grant | Average Grant | ||||||||||||||||
Date Fair Value | Date Fair Value | ||||||||||||||||
Outstanding at December 31, 2013 | 385,063 | $ | 68.24 | 389,013 | $ | 71.02 | |||||||||||
Granted | 350,594 | 84.89 | 77,435 | 84.98 | |||||||||||||
Vested | (93,241 | ) | 69.86 | (77,142 | ) | 69.55 | |||||||||||
Forfeited | (1,418 | ) | 79.41 | (90 | ) | 71.03 | |||||||||||
Outstanding at March 31, 2014 | 640,998 | $ | 77.09 | 389,216 | $ | 74.09 | |||||||||||
Deferred Compensation Plan | |||||||||||||||||
Our deferred compensation plan gives non-employee directors, officers and key employees the ability to defer all or a portion of their salaries and bonuses and invest in Range common stock or make other investments at the individual’s discretion. Range provides a partial matching contribution which vests over three years. The assets of the plans are held in a grantor trust, which we refer to as the Rabbi Trust, and are therefore available to satisfy the claims of our general creditors in the event of bankruptcy or insolvency. Our stock held in the Rabbi Trust is treated as a liability award as employees are allowed to take withdrawals from the Rabbi Trust either in cash or in Range stock. The liability for the vested portion of the stock held in the Rabbi Trust is reflected as deferred compensation liability in the accompanying consolidated balance sheets and is adjusted to fair value each reporting period by a charge or credit to deferred compensation plan expense on our consolidated statements of operations. The assets of the Rabbi Trust, other than our common stock, are invested in marketable securities and reported at their market value as other assets in the accompanying consolidated balance sheets. The deferred compensation liability reflects the vested market value of the marketable securities and Range stock held in the Rabbi Trust. Changes in the market value of the marketable securities and changes in the fair value of the deferred compensation plan liability are charged or credited to deferred compensation plan expense each quarter. We recorded mark-to-market income of $2.0 million in first quarter 2014 compared to mark-to-market loss of $42.4 million in first quarter 2013. The Rabbi Trust held 2.8 million shares (2.4 million of vested shares) of Range stock at March 31, 2014 compared to 2.8 million shares (2.4 million of vested shares) at December 31, 2013. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Supplemental Cash Flow Information | ' | ||||||||
(14) SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Net cash provided from operating activities included: | |||||||||
Income taxes (refunded) paid to taxing authorities | $ | 39 | $ | (162 | ) | ||||
Interest paid | 55,190 | 37,541 | |||||||
Non-cash investing and financing activities included: | |||||||||
Asset retirement costs capitalized, net | 3,218 | 1,690 | |||||||
Increase in accrued capital expenditures | 6,808 | 128,136 | |||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies | ' |
(15) COMMITMENTS AND CONTINGENCIES | |
Litigation | |
We are the subject of, or party to, a number of pending or threatened legal actions, administrative proceedings and claims arising in the ordinary course of our business. While many of these matters involve inherent uncertainty, we believe that the amount of the liability, if any, ultimately incurred with respect to proceedings or claims will not have a material adverse effect on our consolidated financial position as a whole or on our liquidity, capital resources or future annual results of operations. We will continue to evaluate our litigation quarterly and will establish and adjust any litigation reserves as appropriate to reflect our assessment of the then current status of litigation. | |
Transportation and Gathering Contracts | |
In the three months ended March 31, 2014, our transportation and gathering commitments increased by approximately $628.4 million over the next 25 years primarily due to two new firm transportation contracts. In addition, we have entered into additional agreements which are contingent on certain pipeline and gathering modifications and/or construction, that will range between five and fifteen year terms and are expected to begin in late 2014 through 2017. Based on these new contracts, we will have transportation and gathering obligations for a range of natural gas volumes from 25,000 mcf per day to 300,000 mcf per day through the end of the contract term. |
Capitalized_Costs_and_Accumula
Capitalized Costs and Accumulated Depreciation, Depletion and Amortization | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Capitalized Costs and Accumulated Depreciation, Depletion and Amortization | ' | ||||||||
(16) Capitalized Costs and Accumulated Depreciation, Depletion and Amortization (a) | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Natural gas and oil properties: | |||||||||
Properties subject to depletion | $ | 8,467,064 | $ | 8,225,859 | |||||
Unproved properties | 842,679 | 807,022 | |||||||
Total | 9,309,743 | 9,032,881 | |||||||
Accumulated depreciation, depletion and amortization | (2,397,089 | ) | (2,274,444 | ) | |||||
Net capitalized costs | $ | 6,912,654 | $ | 6,758,437 | |||||
(a) | Includes capitalized asset retirement costs and the associated accumulated amortization. |
Costs_Incurred_for_Property_Ac
Costs Incurred for Property Acquisition, Exploration and Development | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Costs Incurred for Property Acquisition, Exploration and Development | ' | ||||||||
(17) Costs Incurred for Property Acquisition, Exploration and Development (a) | |||||||||
Three | Year | ||||||||
Months Ended | Ended | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Acreage purchases | $ | 48,597 | $ | 137,538 | |||||
Development | 223,912 | 938,668 | |||||||
Exploration: | |||||||||
Drilling | 7,737 | 189,742 | |||||||
Expense | 13,694 | 60,384 | |||||||
Stock-based compensation expense | 1,153 | 4,025 | |||||||
Gas gathering facilities: | |||||||||
Development | 3,618 | 47,086 | |||||||
Subtotal | 298,711 | 1,377,443 | |||||||
Asset retirement obligations | 3,218 | 76,373 | |||||||
Total costs incurred | $ | 301,929 | $ | 1,453,816 | |||||
(a) | Includes cost incurred whether capitalized or expensed. |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Tax Expense (Benefit) from Continuing Operations | ' | ||||||||
Income tax expense (benefit) from operations was as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Income tax expense (benefit) | $ | 18,957 | $ | (47,180 | ) | ||||
Effective tax rate | 36.8 | % | 38.4 | % | |||||
Income_Loss_Per_Common_Share_T
Income (Loss) Per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Computations of Basic and Diluted (Loss) Income Per Common Share | ' | ||||||||
Basic income or loss per share attributable to common shareholders is computed as (1) income or loss attributable to common shareholders (2) less income allocable to participating securities (3) divided by weighted average basic shares outstanding. Diluted income or loss per share attributable to common stockholders is computed as (1) basic income or loss attributable to common shareholders (2) plus diluted adjustments to income allocable to participating securities (3) divided by weighted average diluted shares outstanding. The following tables set forth a reconciliation of income or loss attributable to common shareholders to basic income or loss attributable to common shareholders to diluted income or loss attributable to common shareholders (in thousands except per share amounts): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net income (loss), as reported | $ | 32,521 | $ | (75,610 | ) | ||||
Participating basic earnings (a) | (560 | ) | (109 | ) | |||||
Basic net income (loss) attributed to common shareholders | 31,961 | (75,719 | ) | ||||||
Reallocation of participating earnings (a) | 3 | — | |||||||
Diluted net income (loss) attributed to common shareholders | $ | 31,964 | $ | (75,719 | ) | ||||
Net income (loss) per common share: | |||||||||
Basic | $ | 0.2 | $ | (0.47 | ) | ||||
Diluted | $ | 0.20 | $ | (0.47 | ) | ||||
(a) | Restricted Stock Awards represent participating securities because they participate in nonforfeitable dividends or distributions with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Participating securities, however, do not participate in undistributed net losses. | ||||||||
Basic Weighted Average Common Shares Outstanding to Diluted Weighted Average Common Shares Outstanding | ' | ||||||||
The following table provides a reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Denominator: | |||||||||
Weighted average common shares outstanding – basic | 160,794 | 160,125 | |||||||
Effect of dilutive securities: | |||||||||
Director and employee stock options and SARs | 1,031 | — | |||||||
Weighted average common shares outstanding – diluted | 161,825 | 160,125 | |||||||
Suspended_Exploratory_Well_Cos1
Suspended Exploratory Well Costs (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Suspended Exploratory Well Costs | ' | ||||||||||||||||
The following table reflects the changes in capitalized exploratory well costs for the three months ended March 31, 2014 and the year ended December 31, 2013 (in thousands except for number of projects): | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Balance at beginning of period | $ | 6,964 | $ | 57,360 | |||||||||||||
Additions to capitalized exploratory well costs pending the determination of proved reserves | 5,552 | 39,832 | |||||||||||||||
Reclassifications to wells, facilities and equipment based on determination of proved reserves | — | (84,840 | ) | ||||||||||||||
Capitalized exploratory well costs charged to expense | — | — | |||||||||||||||
Divested wells | — | (5,388 | ) | ||||||||||||||
Balance at end of period | 12,516 | 6,964 | |||||||||||||||
Less exploratory well costs that have been capitalized for a period of one year or less | (5,552 | ) | — | ||||||||||||||
Capitalized exploratory well costs that have been capitalized for a period greater than one year | $ | 6,964 | $ | 6,964 | |||||||||||||
Number of projects that have exploratory well costs that have been capitalized for a period greater than one year | 1 | 1 | |||||||||||||||
Aging of Capitalized Exploratory Well Costs Suspended More Than One Year | ' | ||||||||||||||||
The following table provides an aging of capitalized exploratory well costs that have been suspended for more than one year as of March 31, 2014 (in thousands): | |||||||||||||||||
Total | 2013 | 2012 | 2011 | ||||||||||||||
Capitalized exploratory well costs that have been capitalized for more than one year | $ | 6,964 | $ | 110 | $ | 6,801 | $ | 53 | |||||||||
Indebtedness_Tables
Indebtedness (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Outstanding | ' | ||||||||
We had the following debt outstanding as of the dates shown below (bank debt interest rate at March 31, 2014 is shown parenthetically) (in thousands). No interest was capitalized during the three months ended March 31, 2014 or the year ended December 31, 2013: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Bank debt (1.9%) | $ | 594,000 | $ | 500,000 | |||||
Senior subordinated notes: | |||||||||
8.00% senior subordinated notes due 2019, net of $9,134 and $9,484 discount, respectively | 290,866 | 290,516 | |||||||
6.75% senior subordinated notes due 2020 | 500,000 | 500,000 | |||||||
5.75% senior subordinated notes due 2021 | 500,000 | 500,000 | |||||||
5.00% senior subordinated notes due 2022 | 600,000 | 600,000 | |||||||
5.00% senior subordinated notes due 2023 | 750,000 | 750,000 | |||||||
Total debt | $ | 3,234,866 | $ | 3,140,516 | |||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Asset Retirement Obligations | ' | ||||
Our asset retirement obligations primarily represent the estimated present value of the amounts we will incur to plug, abandon and remediate our producing properties at the end of their productive lives. Significant inputs used in determining such obligations include estimates of plugging and abandonment costs, estimated future inflation rates and well life. The inputs are calculated based on historical data as well as current estimated costs. A reconciliation of our liability for plugging and abandonment costs for the three months ended March 31, 2014 is as follows (in thousands): | |||||
Three Months | |||||
Ended | |||||
March 31, 2014 | |||||
Beginning of period | $ | 230,077 | |||
Liabilities incurred | 2,128 | ||||
Liabilities settled | (384 | ) | |||
Disposition of wells | (122 | ) | |||
Accretion expense | 3,707 | ||||
Change in estimate | 1,089 | ||||
End of period | 236,495 | ||||
Less current portion | (5,037 | ) | |||
Long-term asset retirement obligations | $ | 231,458 | |||
Capital_Stock_Tables
Capital Stock (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Capital Stock | ' | ||||||||
We have authorized capital stock of 485.0 million shares which includes 475.0 million shares of common stock and 10.0 million shares of preferred stock. We currently have no preferred stock issued or outstanding. The following is a schedule of changes in the number of common shares outstanding since the beginning of 2013: | |||||||||
Three Months | Year | ||||||||
Ended | Ended | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Beginning balance | 163,342,894 | 162,514,098 | |||||||
SARs exercised | 48,280 | 278,916 | |||||||
Restricted stock granted | 74,553 | 401,122 | |||||||
Restricted stock units vested | 198,943 | 119,480 | |||||||
Treasury shares issued | 5,245 | 29,278 | |||||||
Ending balance | 163,669,915 | 163,342,894 | |||||||
Derivative_ActivitiesTables
Derivative Activities(Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Derivative Volumes Hedged and Average Hedge Prices | ' | ||||||||||||||||||||||||
The following table sets forth our derivative volumes by year as of March 31, 2014: | |||||||||||||||||||||||||
Period | Contract Type | Volume Hedged | Weighted | ||||||||||||||||||||||
Average Hedge Price | |||||||||||||||||||||||||
Natural Gas | |||||||||||||||||||||||||
2014 | Collars | 447,500 Mmbtu/day | $ 3.84–$ 4.48 | ||||||||||||||||||||||
2015 | Collars | 145,000 Mmbtu/day | $ 4.07–$ 4.56 | ||||||||||||||||||||||
2014 | Swaps | 240,145 Mmbtu/day | $4.18 | ||||||||||||||||||||||
2015 | Swaps | 234,966 Mmbtu/day | $4.19 | ||||||||||||||||||||||
2016 | Swaps | 60,000 Mmbtu/day | $4.18 | ||||||||||||||||||||||
Crude Oil | |||||||||||||||||||||||||
2014 | Collars | 2,000 bbls/day | $ 85.55–$ 100.00 | ||||||||||||||||||||||
2014 | Swaps | 9,169 bbls/day | $94.40 | ||||||||||||||||||||||
2015 | Swaps | 6,000 bbls day | $89.48 | ||||||||||||||||||||||
NGLs (C3-Propane) | |||||||||||||||||||||||||
2014 | Swaps | 12,000 bbls/day | $ 1.02/gallon | ||||||||||||||||||||||
NGLs (NC4-Normal butane) | |||||||||||||||||||||||||
2014 | Swaps | 4,000 bbls/day | $ 1.34/gallon | ||||||||||||||||||||||
NGLs (C5-Natural Gasoline) | |||||||||||||||||||||||||
2014 | Swaps | 1,000 bbls/day | $ 2.11/gallon | ||||||||||||||||||||||
Combined Fair Value of Derivatives, by Consolidated Balance Sheets | ' | ||||||||||||||||||||||||
The combined fair value of derivatives included in the accompanying consolidated balance sheets as of March 31, 2014 and December 31, 2013 is summarized below. The assets and liabilities are netted where derivatives with both gain and loss positions are held by a single counterparty and we have master netting arrangements. The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands): | |||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | |||||||||||||||||||||||
of Assets | |||||||||||||||||||||||||
Amounts | Amounts | Presented in the | |||||||||||||||||||||||
of Recognized | Offset in the | Balance Sheet | |||||||||||||||||||||||
Assets | Balance Sheet | ||||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||
Natural gas | –swaps | $ | 8,347 | $ | — | $ | 8,347 | ||||||||||||||||||
–collars | 7,328 | (584 | ) | 6,744 | |||||||||||||||||||||
–basis swaps | 3,123 | (3,123 | ) | — | |||||||||||||||||||||
Crude oil | –swaps | 1,179 | (273 | ) | 906 | ||||||||||||||||||||
NGLs | –C3 swaps | 1,877 | (1,877 | ) | — | ||||||||||||||||||||
–C4 swaps | 3,159 | (3,159 | ) | — | |||||||||||||||||||||
$ | 25,013 | $ | (9,016 | ) | $ | 15,997 | |||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||
Gross Amounts | Gross | Net Amounts of (Liabilities) | |||||||||||||||||||||||
of Recognized (Liabilities) | Presented in the | ||||||||||||||||||||||||
Amounts | Balance Sheet | ||||||||||||||||||||||||
Offset in the | |||||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||
Derivative (liabilities): | |||||||||||||||||||||||||
Natural gas | –swaps | $ | (27,720 | ) | $ | — | $ | (27,720 | ) | ||||||||||||||||
–collars | (26,738 | ) | 584 | (26,154 | ) | ||||||||||||||||||||
–basis swaps | (6,762 | ) | 3,123 | (3,639 | ) | ||||||||||||||||||||
Crude oil | –swaps | (10,027 | ) | 273 | (9,754 | ) | |||||||||||||||||||
–collars | (972 | ) | — | (972 | ) | ||||||||||||||||||||
NGLs | –C3 swaps | (9,692 | ) | 1,877 | (7,815 | ) | |||||||||||||||||||
–C4 swaps | — | 3,159 | 3,159 | ||||||||||||||||||||||
–C5 swaps | (101 | ) | — | (101 | ) | ||||||||||||||||||||
$ | (82,012 | ) | $ | 9,016 | $ | (72,996 | ) | ||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | |||||||||||||||||||||||
of Assets | |||||||||||||||||||||||||
Amounts | Amounts | Presented in the | |||||||||||||||||||||||
of Recognized | Offset in the | Balance Sheet | |||||||||||||||||||||||
Assets | Balance Sheet | ||||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||
Natural gas | –swaps | $ | 4,240 | $ | (1,218 | ) | $ | 3,022 | |||||||||||||||||
–collars | 16,057 | (7,671 | ) | 8,386 | |||||||||||||||||||||
–basis swaps | 7,686 | (7,686 | ) | — | |||||||||||||||||||||
Crude oil | –swaps | 3,567 | (1,321 | ) | 2,246 | ||||||||||||||||||||
NGLs | –C3 swaps | 826 | (826 | ) | — | ||||||||||||||||||||
–C4 swaps | 863 | (863 | ) | — | |||||||||||||||||||||
–C5 swaps | 121 | (121 | ) | — | |||||||||||||||||||||
$ | 33,360 | $ | (19,706 | ) | $ | 13,654 | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | |||||||||||||||||||||||
Amounts | Amounts | of (Liabilities) | |||||||||||||||||||||||
of Recognized | Offset in the | Presented in the | |||||||||||||||||||||||
(Liabilities) | Balance Sheet | Balance Sheet | |||||||||||||||||||||||
Derivative (liabilities): | |||||||||||||||||||||||||
Natural gas | –swaps | $ | (4,790 | ) | $ | 1,218 | $ | (3,572 | ) | ||||||||||||||||
–collars | (13,345 | ) | 7,671 | (5,674 | ) | ||||||||||||||||||||
–basis swaps | (3,756 | ) | 7,686 | 3,930 | |||||||||||||||||||||
Crude oil | –swaps | (4,711 | ) | 1,321 | (3,390 | ) | |||||||||||||||||||
–collars | (398 | ) | — | (398 | ) | ||||||||||||||||||||
NGLs | –C3 swaps | (18,172 | ) | 826 | (17,346 | ) | |||||||||||||||||||
–C4 swaps | (757 | ) | 863 | 106 | |||||||||||||||||||||
–C5 swaps | — | 121 | 121 | ||||||||||||||||||||||
$ | (45,929 | ) | $ | 19,706 | $ | (26,223 | ) | ||||||||||||||||||
Effects of Cash Flow Hedges and Other Hedges on Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||||||
The effects of our cash flow hedges (or those derivatives that previously qualified for hedge accounting) on AOCI in the accompanying consolidated balance sheets is summarized below (in thousands): | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
Change in Hedge | Realized Gain (Loss) | ||||||||||||||||||||||||
Derivative Fair Value | Reclassified from OCI | ||||||||||||||||||||||||
into Revenue (a) | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Swaps | $ | — | $ | 125 | $ | 836 | $ | 8,047 | |||||||||||||||||
Collars | — | (7,015 | ) | 1,328 | 30,732 | ||||||||||||||||||||
Income taxes | — | 2,687 | (924 | ) | (15,124 | ) | |||||||||||||||||||
$ | — | $ | (4,203 | ) | $ | 1,240 | $ | 23,655 | |||||||||||||||||
Effects of Non-Hedge Derivatives on Consolidated Statements of Operations | ' | ||||||||||||||||||||||||
The effects of our non-hedge derivatives (or those derivatives that do not qualify for hedge accounting) and the ineffective portion of our hedge derivatives on our consolidated statements of operations is summarized below (in thousands): | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
Gain (Loss) Recognized in | Gain (Loss) Recognized in | Derivative Fair Value | |||||||||||||||||||||||
Income (Non-hedge Derivatives) | Income (Ineffective Portion) | Income (Loss) | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Swaps | $ | (44,073 | ) | $ | (43,076 | ) | $ | — | $ | (1,995 | ) | $ | (44,073 | ) | $ | (45,071 | ) | ||||||||
Re-purchased swaps | — | 1,185 | — | — | — | 1,185 | |||||||||||||||||||
Collars | (39,148 | ) | (55,003 | ) | — | (896 | ) | (39,148 | ) | (55,899 | ) | ||||||||||||||
Call options | (63,629 | ) | (90 | ) | — | — | (63,629 | ) | (90 | ) | |||||||||||||||
Total | $ | (146,850 | ) | $ | (96,984 | ) | $ | — | $ | (2,891 | ) | $ | (146,850 | ) | $ | (99,875 | ) | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Fair Value Hierarchy Table for Assets and Liabilities Measured at Fair Value | ' | |||||||||||||||||
We use a market approach for our recurring fair value measurements and endeavor to use the best information available. The following tables present the fair value hierarchy table for assets and liabilities measured at fair value, on a recurring basis (in thousands): | ||||||||||||||||||
Fair Value Measurements at March 31, 2014 using: | ||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||
in Active | Other | Unobservable | Carrying | |||||||||||||||
Markets for | Observable | Inputs | Value as of | |||||||||||||||
Identical Assets | Inputs | (Level 3) | March 31, | |||||||||||||||
(Level 1) | (Level 2) | 2014 | ||||||||||||||||
Trading securities held in the deferred compensation plans | $ | 67,119 | $ | — | $ | — | $ | 67,119 | ||||||||||
Derivatives –swaps | — | (32,979 | ) | — | (32,979 | ) | ||||||||||||
–collars | — | (20,381 | ) | — | (20,381 | ) | ||||||||||||
–basis swaps | — | (3,611 | ) | (28 | ) | (3,639 | ) | |||||||||||
Fair Value Measurements at December 31, 2013 using: | ||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||
in Active | Other | Unobservable | Carrying | |||||||||||||||
Markets for | Observable | Inputs | Value as of | |||||||||||||||
Identical Assets | Inputs | (Level 3) | December 31, | |||||||||||||||
(Level 1) | (Level 2) | 2013 | ||||||||||||||||
Trading securities held in the deferred compensation plans | $ | 67,766 | $ | — | $ | — | $ | 67,766 | ||||||||||
Derivatives –swaps | — | (18,812 | ) | — | (18,812 | ) | ||||||||||||
–collars | — | 2,314 | — | 2,314 | ||||||||||||||
–basis swaps | — | 3,381 | 548 | 3,929 | ||||||||||||||
Carrying Amounts and Fair Values of Financial Instruments | ' | |||||||||||||||||
The following table presents the carrying amounts and the fair values of our financial instruments as of March 31, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||
Value | Value | Value | Value | |||||||||||||||
Assets: | ||||||||||||||||||
Commodity swaps, collars and basis swaps | $ | 15,997 | $ | 15,997 | $ | 13,654 | $ | 13,654 | ||||||||||
Marketable securities(a) | 67,119 | 67,119 | 67,766 | 67,766 | ||||||||||||||
(Liabilities): | ||||||||||||||||||
Commodity swaps, collars and basis swaps | (72,996 | ) | (72,996 | ) | (26,223 | ) | (26,223 | ) | ||||||||||
Bank credit facility(b) | (594,000 | ) | (594,000 | ) | (500,000 | ) | (500,000 | ) | ||||||||||
Deferred compensation plan(c) | (262,123 | ) | (262,123 | ) | (271,738 | ) | (271,738 | ) | ||||||||||
8.00% senior subordinated notes due 2019(b) | (290,866 | ) | (313,875 | ) | (290,516 | ) | (319,500 | ) | ||||||||||
6.75% senior subordinated notes due 2020(b) | (500,000 | ) | (540,000 | ) | (500,000 | ) | (541,250 | ) | ||||||||||
5.75% senior subordinated notes due 2021(b) | (500,000 | ) | (535,625 | ) | (500,000 | ) | (530,625 | ) | ||||||||||
5.00% senior subordinated notes due 2022(b) | (600,000 | ) | (611,250 | ) | (600,000 | ) | (588,750 | ) | ||||||||||
5.00% senior subordinated notes due 2023(b) | (750,000 | ) | (759,375 | ) | (750,000 | ) | (732,188 | ) | ||||||||||
(a) | Marketable securities, which are held in our deferred compensation plans, are actively traded on major exchanges. Refer to Note 13 for additional information. | |||||||||||||||||
(b) | The book value of our bank debt approximates fair value because of its floating rate structure. The fair value of our senior subordinated notes is based on end of period market quotes which are Level 2 market values. Refer to Note 8 for additional information. | |||||||||||||||||
(c) | The fair value of our deferred compensation plan is updated on the closing price on the balance sheet date which is a Level 1 market value. |
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Allocation of Stock-Based Compensation by Functional Category | ' | ||||||||||||||||
The following table details the allocation of stock-based compensation that is allocated to functional expense categories (in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Operating expense | $ | 852 | $ | 661 | |||||||||||||
Brokered natural gas and marketing expense | 528 | 249 | |||||||||||||||
Exploration expense | 1,153 | 1,070 | |||||||||||||||
General and administrative expense | 11,604 | 10,306 | |||||||||||||||
Total | $ | 14,137 | $ | 12,286 | |||||||||||||
SARs Activities | ' | ||||||||||||||||
Information with respect to SARs activity is summarized below: | |||||||||||||||||
Shares | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Exercise Price | |||||||||||||||||
Outstanding at December 31, 2013 | 2,582,074 | $ | 56.36 | ||||||||||||||
Granted | 1,104 | 81.74 | |||||||||||||||
Exercised | (137,271 | ) | 45.45 | ||||||||||||||
Expired/forfeited | — | — | |||||||||||||||
Outstanding at March 31, 2014 | 2,445,907 | $ | 56.98 | ||||||||||||||
Weighted Average Grant Date Fair Value of SARs | ' | ||||||||||||||||
During first three months 2014, we granted SARs to our non-executive chairman in conjunction with his retirement from Range as an employee. The weighted average grant date fair value of these SARs, based on our Black-Scholes-Merton assumptions, is shown below: | |||||||||||||||||
Three | |||||||||||||||||
Months Ended | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
Weighted average exercise price per share | $ | 81.74 | |||||||||||||||
Expected annual dividends per share | 0.2 | % | |||||||||||||||
Expected life in years | 4.3 | ||||||||||||||||
Expected volatility | 33 | % | |||||||||||||||
Risk-free interest rate | 1.4 | % | |||||||||||||||
Weighted average grant date fair value | $ | 23.17 | |||||||||||||||
Summary of Performance Share Unit Awards Activity | ' | ||||||||||||||||
A summary of our performance share unit awards (“PSUs”) outstanding at March 31, 2014 is summarized below: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Units (a) | Average | ||||||||||||||||
Grant Date Fair Value | |||||||||||||||||
Outstanding at December 31, 2013 | — | $ | — | ||||||||||||||
Units granted | 57,421 | 82.60 | |||||||||||||||
Outstanding at March 31, 2014 | 57,421 | $ | 82.60 | ||||||||||||||
Schedule of Share Based Payment Award Performance Stock Awards Valuation Assumptions | ' | ||||||||||||||||
The following assumptions were used to estimate the fair value of PSUs granted during the first three months 2014: | |||||||||||||||||
Three | |||||||||||||||||
Months Ended | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Risk-free interest rate | 0.71 | % | |||||||||||||||
Expected annual volatility | 34 | % | |||||||||||||||
Grant date fair value per unit | $ | 82.6 | |||||||||||||||
Restricted Stock and Restricted Stock Units Outstanding | ' | ||||||||||||||||
A summary of the status of our non-vested restricted stock and restricted stock units outstanding at March 31, 2014 is summarized below: | |||||||||||||||||
Equity Awards | Liability Awards | ||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||
Average Grant | Average Grant | ||||||||||||||||
Date Fair Value | Date Fair Value | ||||||||||||||||
Outstanding at December 31, 2013 | 385,063 | $ | 68.24 | 389,013 | $ | 71.02 | |||||||||||
Granted | 350,594 | 84.89 | 77,435 | 84.98 | |||||||||||||
Vested | (93,241 | ) | 69.86 | (77,142 | ) | 69.55 | |||||||||||
Forfeited | (1,418 | ) | 79.41 | (90 | ) | 71.03 | |||||||||||
Outstanding at March 31, 2014 | 640,998 | $ | 77.09 | 389,216 | $ | 74.09 | |||||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Supplemental Cash Flow Information | ' | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Net cash provided from operating activities included: | |||||||||
Income taxes (refunded) paid to taxing authorities | $ | 39 | $ | (162 | ) | ||||
Interest paid | 55,190 | 37,541 | |||||||
Non-cash investing and financing activities included: | |||||||||
Asset retirement costs capitalized, net | 3,218 | 1,690 | |||||||
Increase in accrued capital expenditures | 6,808 | 128,136 | |||||||
Capitalized_Costs_and_Accumula1
Capitalized Costs and Accumulated Depreciation, Depletion and Amortization (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Capitalized Costs and Accumulated Depreciation, Depletion and Amortization | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Natural gas and oil properties: | |||||||||
Properties subject to depletion | $ | 8,467,064 | $ | 8,225,859 | |||||
Unproved properties | 842,679 | 807,022 | |||||||
Total | 9,309,743 | 9,032,881 | |||||||
Accumulated depreciation, depletion and amortization | (2,397,089 | ) | (2,274,444 | ) | |||||
Net capitalized costs | $ | 6,912,654 | $ | 6,758,437 | |||||
(a) | Includes capitalized asset retirement costs and the associated accumulated amortization. |
Costs_Incurred_for_Property_Ac1
Costs Incurred for Property Acquisition, Exploration and Development (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Costs Incurred for Property Acquisition, Exploration and Development | ' | ||||||||
Three | Year | ||||||||
Months Ended | Ended | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Acreage purchases | $ | 48,597 | $ | 137,538 | |||||
Development | 223,912 | 938,668 | |||||||
Exploration: | |||||||||
Drilling | 7,737 | 189,742 | |||||||
Expense | 13,694 | 60,384 | |||||||
Stock-based compensation expense | 1,153 | 4,025 | |||||||
Gas gathering facilities: | |||||||||
Development | 3,618 | 47,086 | |||||||
Subtotal | 298,711 | 1,377,443 | |||||||
Asset retirement obligations | 3,218 | 76,373 | |||||||
Total costs incurred | $ | 301,929 | $ | 1,453,816 | |||||
(a) | Includes cost incurred whether capitalized or expensed. |
Dispositions_Additional_Inform
Dispositions - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Permian basin | |||
Mcfe | |||
acre | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ' | ' | ' |
Area of property, gross | ' | ' | 90,000 |
Area of property, net | ' | ' | 70,000 |
Production per day | ' | ' | 28,000 |
Proceeds from sale of oil and gas | $294,000 | $38,200,000 | ' |
Gain (loss) on disposition of oil and gas property | ($353,000) | ($166,000) | ' |
Income_Taxes_Income_Tax_Expens
Income Taxes - Income Tax Expense (Benefit) from Continuing Operations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Taxes [Line Items] | ' | ' |
Income tax expense (benefit) | $18,957 | ($47,180) |
Effective tax rate | 36.80% | 38.40% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Taxes [Line Items] | ' | ' |
Statutory Tax Rate | 35.00% | 35.00% |
Income_Loss_Per_Common_Share_C
Income (Loss) Per Common Share - Computations of Basic and Diluted (Loss) Income Per Common Share (Detail) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Net income (loss) | $32,521 | ($75,610) | ||
Participating basic earnings | -560 | [1] | -109 | [1] |
Basic net income (loss) attributed to common shareholders | 31,961 | -75,719 | ||
Reallocation of participating earnings | 3 | [1] | ' | [1] |
Diluted net income (loss) attributed to common shareholders | $31,964 | ($75,719) | ||
Net income (loss) per common share: | ' | ' | ||
Basic | $0.20 | ($0.47) | ||
Diluted | $0.20 | ($0.47) | ||
[1] | Restricted Stock Awards represent participating securities because they participate in nonforfeitable dividends or distributions with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Participating securities, however, do not participate in undistributed net losses. |
Income_Loss_Per_Common_Share_B
Income (Loss) Per Common Share - Basic Weighted Average Common Shares Outstanding to Diluted Weighted Average Common Shares Outstanding (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Denominator: | ' | ' |
Weighted average common shares outstanding – basic | 160,794 | 160,125 |
Effect of dilutive securities: | ' | ' |
Director and employee stock options and SARs | 1,031 | ' |
Weighted average common shares outstanding – diluted | 161,825 | 160,125 |
Income_Loss_Per_Common_Share_A
Income (Loss) Per Common Share - Additional Information (Detail) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' |
Weighted average number of shares, Restricted stock liability awards | 2.8 | 2.7 |
Suspended_Exploratory_Well_Cos2
Suspended Exploratory Well Costs - Suspended Exploratory Well Costs (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Project | Project | |
Extractive Industries [Abstract] | ' | ' |
Balance at beginning of period | $6,964 | $57,360 |
Additions to capitalized exploratory well costs pending the determination of proved reserves | 5,552 | 39,832 |
Reclassifications to wells, facilities and equipment based on determination of proved reserves | ' | -84,840 |
Capitalized exploratory well costs charged to expense | ' | ' |
Divested wells | ' | -5,388 |
Balance at end of period | 12,516 | 6,964 |
Less exploratory well costs that have been capitalized for a period of one year or less | -5,552 | ' |
Capitalized exploratory well costs that have been capitalized for a period greater than one year | $6,964 | $6,964 |
Number of projects that have exploratory well costs that have been capitalized for a period greater than one year | 1 | 1 |
Suspended_Exploratory_Well_Cos3
Suspended Exploratory Well Costs - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Well | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ' | ' |
Capitalized exploratory well costs that have been capitalized for a period greater than one year | $6,964 | $6,964 |
Number of wells waiting on pipeline | 1 | ' |
Suspended_Exploratory_Well_Cos4
Suspended Exploratory Well Costs - Aging of Capitalized Exploratory Well Costs Suspended more than One Year (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Projects With Exploratory Well Costs Capitalized For More Than One Year [Line Items] | ' | ' |
Capitalized exploratory well costs that have been capitalized for more than one year | $6,964 | $6,964 |
2013 | ' | ' |
Projects With Exploratory Well Costs Capitalized For More Than One Year [Line Items] | ' | ' |
Capitalized exploratory well costs that have been capitalized for more than one year | 110 | ' |
2012 | ' | ' |
Projects With Exploratory Well Costs Capitalized For More Than One Year [Line Items] | ' | ' |
Capitalized exploratory well costs that have been capitalized for more than one year | 6,801 | ' |
2011 | ' | ' |
Projects With Exploratory Well Costs Capitalized For More Than One Year [Line Items] | ' | ' |
Capitalized exploratory well costs that have been capitalized for more than one year | $53 | ' |
Indebtedness_Additional_Inform
Indebtedness - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Interest capitalized during the period | $0 | $0 |
Indebtedness_Debt_Outstanding_
Indebtedness - Debt Outstanding (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Bank debt | $594,000 | $500,000 |
Subordinated notes | 2,640,866 | 2,640,516 |
Total debt | 3,234,866 | 3,140,516 |
8.00% Senior Subordinated notes due 2019 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Subordinated notes | 290,866 | 290,516 |
6.75% Senior Subordinated notes due 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Subordinated notes | 500,000 | 500,000 |
5.75% Senior Subordinated notes due 2021 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Subordinated notes | 500,000 | 500,000 |
5.00% Senior Subordinated notes due 2022 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Subordinated notes | 600,000 | 600,000 |
5.00% Senior Subordinated notes due 2023 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Subordinated notes | $750,000 | $750,000 |
Indebtedness_Debt_Outstanding_1
Indebtedness - Debt Outstanding (Parenthetical) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Bank debt percentage | 1.90% | 1.90% |
8.00% Senior Subordinated notes due 2019 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate on senior subordinated notes | 8.00% | 8.00% |
Discount on Senior Subordinated notes | 9,134 | 9,484 |
6.75% Senior Subordinated notes due 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate on senior subordinated notes | 6.75% | 6.75% |
5.75% Senior Subordinated notes due 2021 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate on senior subordinated notes | 5.75% | 5.75% |
5.00% Senior Subordinated notes due 2022 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate on senior subordinated notes | 5.00% | 5.00% |
5.00% Senior Subordinated notes due 2023 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate on senior subordinated notes | ' | 5.00% |
Indebtedness_Bank_Debt_Additio
Indebtedness - Bank Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Apr. 03, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
CommercialBank | Subsequent Event | Alternate Base Rate | LIBOR Rate | Minimum | Maximum | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Bank Credit facility, Facility amount | $1,750,000,000 | ' | ' | $1,750,000,000 | ' | ' | ' | ' |
Bank Credit facility, Borrowing base | 2,000,000,000 | ' | ' | 2,000,000,000 | ' | ' | ' | ' |
Percentage holding of commercial banks, Maximum | 9.00% | ' | ' | ' | ' | ' | ' | ' |
Number of commercial banks included in current bank group | 28 | ' | ' | ' | ' | ' | ' | ' |
Notice period for increase in facility amount | '20 days | ' | ' | ' | ' | ' | ' | ' |
Bank debt | 594,000,000 | ' | 500,000,000 | ' | ' | ' | ' | ' |
Undrawn letters of credit | 127,400,000 | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity available under the facility amount | $1,000,000,000 | ' | ' | ' | ' | ' | ' | ' |
Maturity date of loan | 18-Feb-16 | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate on the bank credit facility | 2.00% | 2.10% | ' | ' | ' | ' | ' | ' |
Commitment fee | 0.38% | ' | ' | ' | ' | ' | ' | ' |
Minimum range of base rate | ' | ' | ' | ' | 0.50% | 1.50% | ' | ' |
Maximum range of base rate | ' | ' | ' | ' | 1.50% | 2.50% | ' | ' |
Interest rate margin | ' | ' | ' | ' | 0.75% | 1.75% | ' | ' |
Annual rate of commitment fee paid on the undrawn balance | ' | ' | ' | ' | ' | ' | 0.35% | 0.50% |
Indebtedness_Senior_Subordinat
Indebtedness - Senior Subordinated Notes - Additional Information (Detail) (Subordinated Debt) | 3 Months Ended |
Mar. 31, 2014 | |
Subordinated Debt | ' |
Debt Instrument [Line Items] | ' |
Maximum redemption price of notes as percentage of principal amount | 101.00% |
Indebtedness_Guarantees_and_De
Indebtedness - Guarantees and Debt Covenants and Maturity - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Debt Instrument [Line Items] | ' |
Debt instrument, Covenant compliance | 'Our bank credit facility contains negative covenants that limit our ability, among other things, to pay cash dividends, incur additional indebtedness, sell assets, enter into certain hedging contracts, change the nature of our business or operations, merge, consolidate, or make investments. In addition, we are required to maintain a ratio of debt to EBITDAX (as defined in the credit agreement) of no greater than 4.25 to 1.0 and a current ratio (as defined in the credit agreement) of no less than 1.0 to 1.0. We are in compliance with our covenants under the bank credit facility at March 31, 2014. The indentures governing our senior subordinated notes contain various restrictive covenants that are substantially identical to each other and may limit our ability to, among other things, pay cash dividends, incur additional indebtedness, sell assets, enter into transactions with affiliates, or change the nature of our business. At March 31, 2014, we are in compliance with these covenants. |
Maximum | ' |
Debt Instrument [Line Items] | ' |
Ratio of debt to EBITDAX | 4.25 |
Minimum | ' |
Debt Instrument [Line Items] | ' |
Current ratio | 1 |
Asset_Retirement_Obligations_A
Asset Retirement Obligations - Asset Retirement Obligations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Asset Retirement Obligation [Abstract] | ' | ' |
Beginning of period | $230,077 | ' |
Liabilities incurred | 2,128 | ' |
Liabilities settled | -384 | ' |
Disposition of wells | -122 | ' |
Accretion expense | 3,707 | ' |
Change in estimate | 1,089 | ' |
End of period | 236,495 | ' |
Less current portion | -5,037 | -5,037 |
Long-term asset retirement obligations | $231,458 | ' |
Capital_Stock_Additional_Infor
Capital Stock - Additional Information (Detail) | Mar. 31, 2014 | Dec. 31, 2013 |
Class Of Stock Disclosures [Abstract] | ' | ' |
Authorized capital stock | 485,000,000 | ' |
Common stock, shares authorized | 475,000,000 | 475,000,000 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Capital_Stock_Detail
Capital Stock (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ' | ' |
Beginning balance | 163,342,894 | 162,514,098 |
SARs exercised | 48,280 | 278,916 |
Restricted stock granted | 74,553 | 401,122 |
Restricted stock units vested | 198,943 | 119,480 |
Treasury shares issued | 5,245 | 29,278 |
Ending balance | 163,669,915 | 163,342,894 |
Derivative_Activities_Addition
Derivative Activities - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Derivative [Line Items] | ' | ' |
Unrealized pre-tax derivative gain recorded in AOCI | $8,100,000 | ' |
Unrealized pre-tax derivative gain recorded in AOCI | 5,000,000 | ' |
Gain (Loss) Recognized in Income (Ineffective Portion) | 0 | -2,891,000 |
Unrealized net gains, reclassify into earnings | ' | 2,300,000 |
Unrealized pre-tax derivative gain expected to be reclassified into earnings | 8,100,000 | ' |
Designated as Hedging Instrument | ' | ' |
Derivative [Line Items] | ' | ' |
Gains (Losses) in oil and gas sales related to settled hedging transactions | 2,200,000 | 36,500,000 |
Not Designated as Hedging Instrument | ' | ' |
Derivative [Line Items] | ' | ' |
Unrealized pre-tax derivative gain recorded in AOCI | 103,600,000 | ' |
Accumulated other comprehensive income, unrealized net gains, after tax | 63,200,000 | ' |
Derivatives Excluding Basis Swaps | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets liabilities at fair value net | 53,400,000 | ' |
Basis Swap | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets liabilities at fair value net | $3,700,000 | ' |
Volume Hedged | 254,164 | ' |
Derivative_Activities_Derivati
Derivative Activities - Derivative Volumes Hedged and Average Hedge Prices (Detail) | Mar. 31, 2014 |
MMBTU | |
Natural Gas 2014 | Collars | ' |
Derivative [Line Items] | ' |
Volume Hedged | 447,500 |
Average floor price | 3.84 |
Average cap price | 4.48 |
Natural Gas 2014 | Swaps | ' |
Derivative [Line Items] | ' |
Volume Hedged | 240,145 |
Average hedge price | 4.18 |
Natural Gas 2015 | Collars | ' |
Derivative [Line Items] | ' |
Volume Hedged | 145,000 |
Average floor price | 4.07 |
Average cap price | 4.56 |
Natural Gas 2015 | Swaps | ' |
Derivative [Line Items] | ' |
Volume Hedged | 234,966 |
Average hedge price | 4.19 |
Natural Gas 2016 | Swaps | ' |
Derivative [Line Items] | ' |
Volume Hedged | 60,000 |
Average hedge price | 4.18 |
Crude Oil 2014 | Collars | ' |
Derivative [Line Items] | ' |
Volume Hedged | 2,000 |
Average floor price | 85.55 |
Average cap price | 100 |
Crude Oil 2014 | Swaps | ' |
Derivative [Line Items] | ' |
Volume Hedged | 9,169 |
Average hedge price | 94.4 |
Crude Oil 2015 | Swaps | ' |
Derivative [Line Items] | ' |
Volume Hedged | 6,000 |
Average hedge price | 89.48 |
NGLs (C3 - Propane) 2014 | Swaps | ' |
Derivative [Line Items] | ' |
Volume Hedged | 12,000 |
Average hedge price | 1.02 |
NGLs (NC4 - Normal Butane) 2014 | Swaps | ' |
Derivative [Line Items] | ' |
Volume Hedged | 4,000 |
Average hedge price | 1.34 |
NGLs (C5 - Natural Gasoline) 2014 | Swaps | ' |
Derivative [Line Items] | ' |
Volume Hedged | 1,000 |
Average hedge price | 2.11 |
Derivative_Activities_Schedule
Derivative Activities - Schedule of Additional Information Related to Master Netting Arrangements with Derivative Counterparties (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Gross Amounts of Recognized Assets | $25,013 | $33,360 |
Gross Amounts Offset in the Balance Sheet | -9,016 | -19,706 |
Net Amounts of Assets Presented in the Balance Sheet | 15,997 | 13,654 |
Gross Amounts of Recognized (Liabilities) | -82,012 | -45,929 |
Gross Amounts Offset in the Balance Sheet | 9,016 | 19,706 |
Net Amounts of (Liabilities) Presented in the Balance Sheet | -72,996 | -26,223 |
Natural gas | Swaps | ' | ' |
Derivative [Line Items] | ' | ' |
Gross Amounts of Recognized Assets | 8,347 | 4,240 |
Gross Amounts Offset in the Balance Sheet | ' | -1,218 |
Net Amounts of Assets Presented in the Balance Sheet | 8,347 | 3,022 |
Gross Amounts of Recognized (Liabilities) | -27,720 | -4,790 |
Gross Amounts Offset in the Balance Sheet | ' | 1,218 |
Net Amounts of (Liabilities) Presented in the Balance Sheet | -27,720 | -3,572 |
Natural gas | Collars | ' | ' |
Derivative [Line Items] | ' | ' |
Gross Amounts of Recognized Assets | 7,328 | 16,057 |
Gross Amounts Offset in the Balance Sheet | -584 | -7,671 |
Net Amounts of Assets Presented in the Balance Sheet | 6,744 | 8,386 |
Gross Amounts of Recognized (Liabilities) | -26,738 | -13,345 |
Gross Amounts Offset in the Balance Sheet | 584 | 7,671 |
Net Amounts of (Liabilities) Presented in the Balance Sheet | -26,154 | -5,674 |
Natural gas | Basis Swap | ' | ' |
Derivative [Line Items] | ' | ' |
Gross Amounts of Recognized Assets | 3,123 | 7,686 |
Gross Amounts Offset in the Balance Sheet | -3,123 | -7,686 |
Net Amounts of Assets Presented in the Balance Sheet | ' | ' |
Gross Amounts of Recognized (Liabilities) | -6,762 | -3,756 |
Gross Amounts Offset in the Balance Sheet | 3,123 | 7,686 |
Net Amounts of (Liabilities) Presented in the Balance Sheet | -3,639 | 3,930 |
Crude oil | Swaps | ' | ' |
Derivative [Line Items] | ' | ' |
Gross Amounts of Recognized Assets | 1,179 | 3,567 |
Gross Amounts Offset in the Balance Sheet | -273 | -1,321 |
Net Amounts of Assets Presented in the Balance Sheet | 906 | 2,246 |
Gross Amounts of Recognized (Liabilities) | -10,027 | -4,711 |
Gross Amounts Offset in the Balance Sheet | 273 | 1,321 |
Net Amounts of (Liabilities) Presented in the Balance Sheet | -9,754 | -3,390 |
Crude oil | Collars | ' | ' |
Derivative [Line Items] | ' | ' |
Gross Amounts of Recognized (Liabilities) | -972 | -398 |
Gross Amounts Offset in the Balance Sheet | ' | ' |
Net Amounts of (Liabilities) Presented in the Balance Sheet | -972 | -398 |
Swap NGLs (Natural Gasoline) | C3 swaps | ' | ' |
Derivative [Line Items] | ' | ' |
Gross Amounts of Recognized Assets | 1,877 | 826 |
Gross Amounts Offset in the Balance Sheet | -1,877 | -826 |
Net Amounts of Assets Presented in the Balance Sheet | ' | ' |
Gross Amounts of Recognized (Liabilities) | -9,692 | -18,172 |
Gross Amounts Offset in the Balance Sheet | 1,877 | 826 |
Net Amounts of (Liabilities) Presented in the Balance Sheet | -7,815 | -17,346 |
Swap NGLs (Natural Gasoline) | C4 swaps | ' | ' |
Derivative [Line Items] | ' | ' |
Gross Amounts of Recognized Assets | 3,159 | 863 |
Gross Amounts Offset in the Balance Sheet | -3,159 | -863 |
Net Amounts of Assets Presented in the Balance Sheet | ' | ' |
Gross Amounts of Recognized (Liabilities) | ' | -757 |
Gross Amounts Offset in the Balance Sheet | 3,159 | 863 |
Net Amounts of (Liabilities) Presented in the Balance Sheet | 3,159 | 106 |
Swap NGLs (Natural Gasoline) | C5 swaps | ' | ' |
Derivative [Line Items] | ' | ' |
Gross Amounts of Recognized Assets | ' | 121 |
Gross Amounts Offset in the Balance Sheet | ' | -121 |
Net Amounts of Assets Presented in the Balance Sheet | ' | ' |
Gross Amounts of Recognized (Liabilities) | -101 | ' |
Gross Amounts Offset in the Balance Sheet | ' | 121 |
Net Amounts of (Liabilities) Presented in the Balance Sheet | ($101) | $121 |
Derivative_Activities_Effects_
Derivative Activities - Effects of Cash Flow Hedges and Other Hedges on Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ||
Change in unrealized deferred hedging gains, tax effect | ' | $2,687 | ||
Change in Hedge Derivative Fair value, effects of Cash flow hedges on accumulated other comprehensive income (loss) total | ' | -4,203 | [1] | |
Realized Gain Reclassified from AOCI into Revenue, Income taxes | -924 | [2] | -15,124 | [2] |
Realized gain on hedge derivative contract settlements reclassified into earnings from other comprehensive income, net of taxes | 1,240 | [2] | 23,655 | [2] |
Swaps | ' | ' | ||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ||
Change in Hedge Derivative Fair Value | ' | 125 | ||
Realized Gain Reclassified from OCI into Revenue | 836 | [2] | 8,047 | [2] |
Collars | ' | ' | ||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ||
Change in Hedge Derivative Fair Value | ' | -7,015 | ||
Realized Gain Reclassified from OCI into Revenue | $1,328 | [2] | $30,732 | [2] |
[1] | Amounts are net of income tax benefit of $2,687 for the three months ended March 31, 2013. | |||
[2] | For realized gains upon derivative contract settlement, the reduction in AOCI is offset by an increase in revenues, NGLs and oil sales. For realized losses upon derivative contract settlement, the increase in AOCI is offset by a decrease in revenues. See additional discussion above regarding the discontinuance of hedge accounting. |
Derivative_Activities_Effects_1
Derivative Activities - Effects of Non-Hedge Derivatives on Consolidated Statement of Operations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Financial Instruments [Line Items] | ' | ' |
Gain (Loss) Recognized in Income (Non-hedge Derivatives) | ($146,850) | ($96,984) |
Gain (Loss) Recognized in Income (Ineffective Portion) | 0 | -2,891 |
Derivative fair value loss | -146,850 | -99,875 |
Swaps | ' | ' |
Derivative Financial Instruments [Line Items] | ' | ' |
Gain (Loss) Recognized in Income (Non-hedge Derivatives) | -44,073 | -43,076 |
Gain (Loss) Recognized in Income (Ineffective Portion) | ' | -1,995 |
Derivative fair value loss | -44,073 | -45,071 |
Re-purchased swaps | ' | ' |
Derivative Financial Instruments [Line Items] | ' | ' |
Gain (Loss) Recognized in Income (Non-hedge Derivatives) | ' | 1,185 |
Derivative fair value loss | ' | 1,185 |
Collars | ' | ' |
Derivative Financial Instruments [Line Items] | ' | ' |
Gain (Loss) Recognized in Income (Non-hedge Derivatives) | -39,148 | -55,003 |
Gain (Loss) Recognized in Income (Ineffective Portion) | ' | -896 |
Derivative fair value loss | -39,148 | -55,899 |
Call options | ' | ' |
Derivative Financial Instruments [Line Items] | ' | ' |
Gain (Loss) Recognized in Income (Non-hedge Derivatives) | -63,629 | -90 |
Derivative fair value loss | ($63,629) | ($90) |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value Hierarchy Table for Assets and Liabilities Measured at Fair Value (Detail) (Fair Value, Measurements, Recurring, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Trading securities held in the deferred compensation plans | $67,119 | $67,766 |
Swaps | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets liabilities at fair value net | -32,979 | -18,812 |
Collars | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets liabilities at fair value net | -20,381 | 2,314 |
Basis Swap | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets liabilities at fair value net | -3,639 | 3,929 |
Fair Value, Inputs, Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Trading securities held in the deferred compensation plans | 67,119 | 67,766 |
Fair Value, Inputs, Level 1 | Swaps | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets liabilities at fair value net | ' | ' |
Fair Value, Inputs, Level 1 | Collars | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets liabilities at fair value net | ' | ' |
Fair Value, Inputs, Level 1 | Basis Swap | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets liabilities at fair value net | ' | ' |
Fair Value, Inputs, Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Trading securities held in the deferred compensation plans | ' | ' |
Fair Value, Inputs, Level 2 | Swaps | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets liabilities at fair value net | -32,979 | -18,812 |
Fair Value, Inputs, Level 2 | Collars | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets liabilities at fair value net | -20,381 | 2,314 |
Fair Value, Inputs, Level 2 | Basis Swap | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets liabilities at fair value net | -3,611 | 3,381 |
Fair Value, Inputs, Level 3 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Trading securities held in the deferred compensation plans | ' | ' |
Fair Value, Inputs, Level 3 | Swaps | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets liabilities at fair value net | ' | ' |
Fair Value, Inputs, Level 3 | Collars | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets liabilities at fair value net | ' | ' |
Fair Value, Inputs, Level 3 | Basis Swap | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets liabilities at fair value net | ($28) | $548 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Company | |||
Lenders | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' |
Interest and dividends | $274,000 | $40,000 | ' |
Mark-to-market gain (loss) | 429,000 | 1,600,000 | ' |
Allowance for uncollectible receivables | 2,500,000 | ' | 2,500,000 |
Number of financial institutions included in counter parties | 14 | ' | ' |
Number of secured lenders not in banking credit facility | 2 | ' | ' |
Net derivative asset | $3,800,000 | ' | ' |
Basis Swap | Fair Value, Inputs, Level 3 | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' |
Number of natural gas basis swap | 4 | ' | ' |
Fair_Value_Measurements_Carryi
Fair Value Measurements - Carrying Amounts and Fair Values of Financial Instruments (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ||
Commodity swaps, collars and basis swaps | $15,997 | $13,654 | ||
(Liabilities): | ' | ' | ||
Commodity swaps, collars and basis swaps | -72,996 | -26,223 | ||
Bank credit facility | -594,000 | -500,000 | ||
Subordinated debt | -2,640,866 | -2,640,516 | ||
8.00% Senior Subordinated notes due 2019 | ' | ' | ||
(Liabilities): | ' | ' | ||
Subordinated debt | -290,866 | -290,516 | ||
6.75% Senior Subordinated notes due 2020 | ' | ' | ||
(Liabilities): | ' | ' | ||
Subordinated debt | -500,000 | -500,000 | ||
5.75% Senior Subordinated notes due 2021 | ' | ' | ||
(Liabilities): | ' | ' | ||
Subordinated debt | -500,000 | -500,000 | ||
5.00% Senior Subordinated notes due 2022 | ' | ' | ||
(Liabilities): | ' | ' | ||
Subordinated debt | -600,000 | -600,000 | ||
5.00% Senior Subordinated notes due 2023 | ' | ' | ||
(Liabilities): | ' | ' | ||
Subordinated debt | -750,000 | -750,000 | ||
Carrying Value | ' | ' | ||
Assets: | ' | ' | ||
Commodity swaps, collars and basis swaps | 15,997 | 13,654 | ||
Marketable securities | 67,119 | [1] | 67,766 | [1] |
(Liabilities): | ' | ' | ||
Commodity swaps, collars and basis swaps | -72,996 | -26,223 | ||
Bank credit facility | -594,000 | [2] | -500,000 | [2] |
Deferred compensation plan | -262,123 | [3] | -271,738 | [3] |
Carrying Value | 8.00% Senior Subordinated notes due 2019 | ' | ' | ||
(Liabilities): | ' | ' | ||
Subordinated debt | -290,866 | [2] | -290,516 | [2] |
Carrying Value | 6.75% Senior Subordinated notes due 2020 | ' | ' | ||
(Liabilities): | ' | ' | ||
Subordinated debt | -500,000 | [2] | -500,000 | [2] |
Carrying Value | 5.75% Senior Subordinated notes due 2021 | ' | ' | ||
(Liabilities): | ' | ' | ||
Subordinated debt | -500,000 | [2] | -500,000 | [2] |
Carrying Value | 5.00% Senior Subordinated notes due 2022 | ' | ' | ||
(Liabilities): | ' | ' | ||
Subordinated debt | -600,000 | [2] | -600,000 | [2] |
Carrying Value | 5.00% Senior Subordinated notes due 2023 | ' | ' | ||
(Liabilities): | ' | ' | ||
Subordinated debt | -750,000 | [2] | -750,000 | [2] |
Fair Value | ' | ' | ||
Assets: | ' | ' | ||
Commodity swaps, collars and basis swaps | 15,997 | 13,654 | ||
Marketable securities | 67,119 | [1] | 67,766 | [1] |
(Liabilities): | ' | ' | ||
Commodity swaps, collars and basis swaps | -72,996 | -26,223 | ||
Bank credit facility | -594,000 | [2] | -500,000 | [2] |
Deferred compensation plan | -262,123 | [3] | -271,738 | [3] |
Fair Value | 8.00% Senior Subordinated notes due 2019 | ' | ' | ||
(Liabilities): | ' | ' | ||
Subordinated debt | -313,875 | [2] | -319,500 | [2] |
Fair Value | 6.75% Senior Subordinated notes due 2020 | ' | ' | ||
(Liabilities): | ' | ' | ||
Subordinated debt | -540,000 | [2] | -541,250 | [2] |
Fair Value | 5.75% Senior Subordinated notes due 2021 | ' | ' | ||
(Liabilities): | ' | ' | ||
Subordinated debt | -535,625 | [2] | -530,625 | [2] |
Fair Value | 5.00% Senior Subordinated notes due 2022 | ' | ' | ||
(Liabilities): | ' | ' | ||
Subordinated debt | -611,250 | [2] | -588,750 | [2] |
Fair Value | 5.00% Senior Subordinated notes due 2023 | ' | ' | ||
(Liabilities): | ' | ' | ||
Subordinated debt | ($759,375) | [2] | ($732,188) | [2] |
[1] | Marketable securities, which are held in our deferred compensation plans, are actively traded on major exchanges. Refer to Note 13 for additional information. | |||
[2] | The book value of our bank debt approximates fair value because of its floating rate structure. The fair value of our senior subordinated notes is based on end of period market quotes which are Level 2 market values. Refer to Note 8 for additional information. | |||
[3] | The fair value of our deferred compensation plan is updated on the closing price on the balance sheet date which is a Level 1 market value. |
Fair_Value_Measurements_Carryi1
Fair Value Measurements - Carrying Amounts and Fair Values of Financial Instruments (Parenthetical) (Detail) | Mar. 31, 2014 | Dec. 31, 2013 |
8.00% Senior Subordinated notes due 2019 | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Interest rate on senior subordinated notes | 8.00% | 8.00% |
6.75% Senior Subordinated notes due 2020 | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Interest rate on senior subordinated notes | 6.75% | 6.75% |
5.75% Senior Subordinated notes due 2021 | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Interest rate on senior subordinated notes | 5.75% | 5.75% |
5.00% Senior Subordinated notes due 2022 | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Interest rate on senior subordinated notes | 5.00% | 5.00% |
5.00% senior subordinated notes due 2023 | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Interest rate on senior subordinated notes | 5.00% | 5.00% |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Vesting period | '3 years |
Expiration term of stock options | '5 years |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans - Allocation of Stock-Based Compensation by Functional Category (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' |
Total | $14,137,000 | $12,286,000 |
Operating Expense | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' |
Total | 852,000 | 661,000 |
Brokered Natural Gas And Marketing Expense | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' |
Total | 528,000 | 249,000 |
Exploration Expense | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' |
Total | 1,153,000 | 1,070,000 |
General and Administrative Expense | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' |
Total | $11,604,000 | $10,306,000 |
StockBased_Compensation_Plans_3
Stock-Based Compensation Plans - Additional Information 1 (Detail) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Plans | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Active equity-based stock plans | 2 | ' | ' |
Number of stock option outstanding | ' | 2,445,907 | 2,582,074 |
StockBased_Compensation_Plans_4
Stock-Based Compensation Plans - SARs Activity (Detail) (Stock Appreciation Rights (SARs) [Member], USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Stock Appreciation Rights (SARs) [Member] | ' |
Schedule Of Stock Option Activity [Line Items] | ' |
Beginning Balance, Shares | 2,582,074 |
Granted, Shares | 1,104 |
Exercised, Shares | -137,271 |
Expired/forfeited, Shares | ' |
Ending Balance, Shares | 2,445,907 |
Beginning Balance, Weighted Average Exercise Price | $56.36 |
Granted, Weighted Average Exercise Price | $81.74 |
Exercised, Weighted Average Exercise Price | $45.45 |
Expired/forfeited, Weighted Average Exercise Price | ' |
Ending Balance, Weighted Average Exercise Price | $56.98 |
StockBased_Compensation_Plans_5
Stock-Based Compensation Plans - Weighted Average Grant Date Fair Value of SARs (Detail) (Stock Appreciation Rights (SARs) [Member], USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Stock Appreciation Rights (SARs) [Member] | ' |
Schedule Of Assumptions Used To Estimate Fair Value Of Stock Based Compensation [Line Items] | ' |
Weighted average exercise price per share | $81.74 |
Expected annual dividends per share | 0.20% |
Expected life in years | '4 years 3 months 18 days |
Expected volatility | 33.00% |
Risk-free interest rate | 1.40% |
Weighted average grant date fair value | $23.17 |
StockBased_Compensation_Plans_6
Stock-Based Compensation Plans - PSUA Activity (Detail) (Performance Shares, USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Performance Shares | ' |
Summary of Performance Share Unit Awards outstanding, Number of Units | ' |
Outstanding, Beginning Balance | ' |
Units granted | 57,421 |
Outstanding, Ending Balance | 57,421 |
Summary of Performance Share Unit Awards outstanding, Weighted Average Grant Date Fair Value | ' |
Outstanding, Beginning Balance | ' |
Weighted average grant date fair value | $82.60 |
Outstanding, Ending Balance | $82.60 |
StockBased_Compensation_Plans_7
Stock-Based Compensation Plans - PSUA Activity (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Minimum | ' |
Schedule Of Weighted Average Assumptions For Fair Values Of Stock Options [Line Items] | ' |
Actual payout of shares on performance units granted | 0.00% |
Maximum | ' |
Schedule Of Weighted Average Assumptions For Fair Values Of Stock Options [Line Items] | ' |
Actual payout of shares on performance units granted | 150.00% |
StockBased_Compensation_Plans_8
Stock-Based Compensation Plans - Valuation Assumptions for Grant Date Fair Value of Performance Awards (Detail) (Performance Shares, USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Performance Shares | ' |
Schedule Of Assumptions To Estimate Fair Value For Performance Share Unit Awards [Line Items] | ' |
Risk-free interest rate | 0.71% |
Expected annual volatility | 34.00% |
Grant date fair value per unit | $82.60 |
StockBased_Compensation_Plans_9
Stock-Based Compensation Plans - Additional Information 2 (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Stock-based compensation expense | $14,137,000 | $12,286,000 |
Equity Awards | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Stock-based compensation expense | 6,500,000 | 4,300,000 |
Shares granted to employees | 351,000 | 386,000 |
Restricted stock granted average price | $84.89 | $71.02 |
Vesting period of shares granted to employees | 'three-year | 'three-year |
Liability Awards | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Stock-based compensation expense | 4,700,000 | 4,500,000 |
Restricted stock granted average price | $85.02 | $71.40 |
Vesting period of shares granted to employees | 'three-year | 'three-year |
Shares granted to employees and directors | 76,000 | 125,000 |
Liability Awards | Director | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Restricted stock granted average price | $81.74 | ' |
Shares granted to employees and directors | 950 | ' |
Performance Shares | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Stock-based compensation expense | $533,000 | $533,000 |
Recovered_Sheet1
Stock-Based Compensation Plans - Restricted Stock and Restricted Stock Units Outstanding (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Equity Awards | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Outstanding, Beginning Balance | 385,063 |
Shares granted to employees and directors | 350,594 |
Vested | -93,241 |
Forfeited | -1,418 |
Outstanding, Ending Balance | 640,998 |
Outstanding, Beginning Balance | $68.24 |
Grant date fair value per unit | $84.89 |
Vested | $69.86 |
Forfeited | $79.41 |
Outstanding, Ending Balance | $77.09 |
Liability Awards | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Outstanding, Beginning Balance | 389,013 |
Shares granted to employees and directors | 77,435 |
Vested | -77,142 |
Forfeited | -90 |
Outstanding, Ending Balance | 389,216 |
Outstanding, Beginning Balance | $71.02 |
Grant date fair value per unit | $84.98 |
Vested | $69.55 |
Forfeited | $71.03 |
Outstanding, Ending Balance | $74.09 |
Recovered_Sheet2
Stock-Based Compensation Plans - Additional Information 3 (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data in Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Non-cash, Mark-to-market income (loss) related to deferred compensation plan | $2,035 | ($42,360) |
Shares held in rabbi trust total | 2.8 | 2.8 |
Vested shares held in rabbi trust | 2.4 | 2.4 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information - Supplemental Cash Flow Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Net cash provided from operating activities included: | ' | ' | ' | ||
Income taxes (refunded) paid to taxing authorities | $39 | ($162) | ' | ||
Interest paid | 55,190 | 37,541 | ' | ||
Non-cash investing and financing activities included: | ' | ' | ' | ||
Asset retirement costs capitalized, net | 3,218 | [1] | 1,690 | 76,373 | [1] |
Increase in accrued capital expenditures | $6,808 | $128,136 | ' | ||
[1] | Includes cost incurred whether capitalized or expensed. |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Commitments And Contingencies Disclosure [Line Items] | ' |
Transportation commitments future minimum transportation fees due three months change | $628.40 |
Period of transportation commitments future minimum transportation fees due three months change | '25 years |
Minimum | ' |
Commitments And Contingencies Disclosure [Line Items] | ' |
Terms of Contingent Transportation and Gathering Contracts | '5 years |
Transportation and gathering commitments contingent upon construction and modification | 25,000 |
Maximum | ' |
Commitments And Contingencies Disclosure [Line Items] | ' |
Terms of Contingent Transportation and Gathering Contracts | '15 years |
Transportation and gathering commitments contingent upon construction and modification | 300,000 |
Capitalized_Costs_and_Accumula2
Capitalized Costs and Accumulated Depreciation, Depletion and Amortization (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Natural gas and oil properties: | ' | ' | ||
Properties subject to depletion | $8,467,064 | [1] | $8,225,859 | [1] |
Unproved properties | 842,679 | [1] | 807,022 | [1] |
Total | 9,309,743 | [1] | 9,032,881 | [1] |
Accumulated depreciation, depletion and amortization | -2,397,089 | [1] | -2,274,444 | [1] |
Net capitalized costs | $6,912,654 | [1] | $6,758,437 | [1] |
[1] | Includes capitalized asset retirement costs and the associated accumulated amortization |
Costs_Incurred_for_Property_Ac2
Costs Incurred for Property Acquisition, Exploration and Development - Costs Incurred for Property Acquisition, Exploration and Development (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Costs Incurred Oil And Gas Property Acquisition Exploration And Development Activities [Line Items] | ' | ' | ' | ||
Acreage purchases | $48,597 | [1] | ' | $137,538 | [1] |
Development | 223,912 | [1] | ' | 938,668 | [1] |
Gas gathering facilities: | ' | ' | ' | ||
Development | 3,618 | [1] | ' | 47,086 | [1] |
Subtotal | 298,711 | [1] | ' | 1,377,443 | [1] |
Asset retirement obligations | 3,218 | [1] | 1,690 | 76,373 | [1] |
Total costs incurred | 301,929 | [1] | ' | 1,453,816 | [1] |
Drilling | ' | ' | ' | ||
Exploration: | ' | ' | ' | ||
Exploration costs incurred | 7,737 | [1] | ' | 189,742 | [1] |
Expense | ' | ' | ' | ||
Exploration: | ' | ' | ' | ||
Exploration costs incurred | 13,694 | [1] | ' | 60,384 | [1] |
Stock-based compensation expense | ' | ' | ' | ||
Exploration: | ' | ' | ' | ||
Exploration costs incurred | $1,153 | [1] | ' | $4,025 | [1] |
[1] | Includes cost incurred whether capitalized or expensed. |