-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JlndSFOD8hoFYsbRfJzPGm0Wc0Ygry+NmjdFF1FVr1aNG0/7Ty5wkaqKba09RulU 8Pd7wk3E5090yJ9FG3o9WA== 0000950134-03-012307.txt : 20030828 0000950134-03-012307.hdr.sgml : 20030828 20030828103905 ACCESSION NUMBER: 0000950134-03-012307 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030828 ITEM INFORMATION: Other events FILED AS OF DATE: 20030828 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RANGE RESOURCES CORP CENTRAL INDEX KEY: 0000315852 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 341312571 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12209 FILM NUMBER: 03869953 BUSINESS ADDRESS: STREET 1: 777 MAIN STREET CITY: FT WORTH STATE: TX ZIP: 76102 BUSINESS PHONE: 817-870-2601 MAIL ADDRESS: STREET 1: 777 MAIN STREET CITY: FT WORTH STATE: TX ZIP: 76102 FORMER COMPANY: FORMER CONFORMED NAME: LOMAK PETROLEUM INC DATE OF NAME CHANGE: 19920703 8-K 1 d08752e8vk.txt FORM 8-K - -------------------------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): August 28, 2003 RANGE RESOURCES CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 0-9592 34-1312571 - ------------------------------- --------------- ---------------------- (State or other jurisdiction of (Commission (IRS Employer incorporation) File Number) Identification No.) 777 MAIN STREET, SUITE 800 FT. WORTH, TEXAS 76102 ---------------------------------- --------------------------- (Address of principal executive (Zip Code) offices) Registrant's telephone number, including area code: (817) 870-2601 Former name or former address, if changed since last report: Not applicable 1 ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE. As of January 1, 2003, Range Resources Corporation (the "Company") adopted Statement of Financial Accounting Standards No. 143 "Asset Retirement Obligations" ("SFAS 143") which required the Company to recognize an estimated liability for the plugging and abandonment of its oil and gas wells and associated pipelines and equipment. Under FAS 143, the Company recognizes a liability of asset retirement obligations in the period in which they are incurred, if a reasonable estimate can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. The adoption of SFAS 143 resulted in (i) an increase of total liabilities because retirement obligations are required to be recognized, (ii) an increase in the recognized costs of assets because the retirement costs are added to the carrying amount of the long-lived asset and (iii) an increase in depletion, depreciation and amortization expense because of the accretion of the retirement obligation and increased basis. The majority of the asset retirement obligations recorded by the Company relate to the plugging and abandonment of oil and gas wells. The estimated liability is based on historical experience in plugging and abandoning wells, estimated remaining lives of those wells based on reserve estimates, external estimates as to the cost to plug and abandon the wells in the future, and federal and state regulatory requirements. The liability is discounted using an assumed credit-adjusted risk-free interest rate of 9%. Revisions to the liability could occur due to changes in estimates of plugging and abandonment costs or remaining lives of the wells, or if federal or state regulators enact new plugging and abandonment requirements. The adoption of SFAS 143 as of January 1, 2003 resulted in a cumulative effect gain of $4.5 million (net of income taxes of $2.4 million) or $0.08 per share which is included in income for the six months ended June 30, 2003. The adoption resulted in a January 1, 2003 cumulative effect adjustment to record (i) a $37.3 million increase in the carrying values of proved properties, (ii) a $21.0 million decrease in accumulated depletion, (iii) a $2.3 million increase in current plugging and abandonment liabilities, (iv) a $49.1 million increase in non-current plugging and abandonment liabilities and (v) a $2.4 million decrease in deferred taxes. The net impact of items (i) through (v) was to record a gain of $4.5 million, net of tax, as a cumulative effect adjustment of a change in accounting principle. The pro forma effect of the application of SFAS 143, as if the statement had been adopted net-of-tax on January 1, 2000 (rather than January 1, 2003), are presented below (in thousands, except per share data, unaudited). The following table should be read in conjunction with the Company's latest Form 10-K.
Pro Forma Year Ended December 31, --------------------------------------------------- 2000 2001 2002 --------------- ------------- -------------- Net income $ 36,653 $ 17,854 $ 24,535 Earnings per share -Basic $ 0.87 $ 0.36 $ 0.46 -Diluted $ 0.85 $ 0.35 $ 0.45
The pro-forma asset retirement obligation liability balances as if SFAS 143 had been adopted on January 1, 2000 (rather than January 1, 2003) are as follows (in thousands, unaudited):
Pro Forma December 31, -------------------------------------------- 2000 2001 2002 ------------- ------------- ----------- Pro forma amounts of liability for asset retirement $ 40,758 $ 43,970 $ 48,294 obligation at beginning of year
2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. RANGE RESOURCES CORPORATION By: /s/ RODNEY L. WALLER ----------------------------------- Rodney L. Waller Senior Vice President Date: August 28, 2003 3 -----END PRIVACY-ENHANCED MESSAGE-----