RANGE RESOURCES CORP

Previous wording

Our overarching business objective is to build stockholder value through returns-focused development of properties. Our strategy to achieve our business objective is to generate consistent cash flows from reserves and production through internally generated drilling projects occasionally coupled with complementary acquisitions and divestitures. Currently, our investment portfolio is focused on high-quality natural gas assets in the Commonwealth of Pennsylvania. Our revenues, profitability and future growth depend substantially on prevailing prices for natural gas, NGLs and oil and on our ability to economically find, develop, acquire and produce these reserves.

Current wording

Our overarching business objective is to build stockholder value through returns-focused development of properties. Our strategy to achieve our business objective is to generate consistent cash flows from reserves and production through internally generated drilling projects occasionally coupled with complementary acquisitions and divestitures. Currently, our investment portfolio is focused on high-quality natural gas and NGLs assets in the Commonwealth of Pennsylvania. Our revenues, profitability and future growth depend substantially on prevailing prices for natural gas, NGLs and oil and on our ability to economically find, develop, acquire and produce these reserves.

Previous wording

Commodity prices have been and are expected to remain volatile. We believe we are well-positioned to manage challenges during a low commodity price environment and that we can endure the continued fluctuations in current and future commodity prices by:

Current wording

Commodity prices have been and are expected to remain volatile. We believe we are well-positioned to manage challenges that could occur during price variations and that we can endure the continued fluctuations in current and future commodity prices by:

Previous wording

managing price risk through the hedging of our production;

Current wording

managing price risk through the partial hedging of our production;

Previous wording

We believe we are positioned for sustainable long-term success. We continue to monitor the impact of the actions of OPEC and other large hydrocarbon producing nations, the Russia-Ukraine conflict, hostilities in the Middle East, global inventories of gas, NGLs and oil, future monetary and fiscal policy, potential tariffs and their impacts on global trade and energy demands and governmental policies aimed at transitioning towards lower carbon energy. We expect prices for the commodities we produce to remain volatile given the complex dynamics of supply and demand that exist in the global energy markets. In first quarter 2025, natural gas prices increased primarily due to winter weather and larger than expected exports from new U.S. LNG export facilities. Longer term natural gas futures prices remain constructive based on market expectations of continued LNG expansion, power demand and associated gas-related activity in oil basins and dry gas basin activity will show modest rates of growth due to infrastructure constraints, moderated reinvestment rates and core inventory exhaustion. In addition, the global energy crisis experienced in recent years further highlighted the low cost and low emissions shale gas resource base in North America, supporting continued strong structural demand growth for United States liquefied natural gas exports, domestic industrial gas demand and power generation. Other factors such as geopolitical disruptions, supply chain disruptions, cost inflation, concerns over a potential economic recession and the pace of changes in global monetary policy may impact global demand for natural gas, NGLs and oil. We continue to assess and monitor the impact and consequences of these factors on our operations.

Current wording

We believe we are positioned for sustainable long-term success. We continue to monitor the impact of the actions of OPEC and other large hydrocarbon producing nations, the Russia-Ukraine conflict, hostilities in the Middle East, global inventories of natural gas, NGLs and oil, future monetary and fiscal policy, potential tariffs and their impacts on global trade and energy demands and governmental policies aimed at transitioning towards lower carbon energy. We expect prices for the commodities we produce to remain volatile given the complex dynamics of supply and demand that exist in the global energy markets. In first six months 2025, natural gas prices increased primarily due to winter weather and larger exports from new U.S. LNG export facilities. Longer term natural gas futures prices remain constructive based on market expectations of continued LNG expansion, increasing power demand, and associated gas-related activity in oil basins and dry gas basin activity, which are expected to show modest rates of growth due to infrastructure constraints, moderated reinvestment rates and inventory exhaustion. In addition, the global energy crisis experienced in recent years further highlighted the low cost and low emissions shale gas resource base in North America, supporting continued strong structural demand growth for U.S LNG exports, domestic industrial gas demand and power generation. Other factors such as geopolitical disruptions, supply chain disruptions, cost inflation, concerns over a potential economic recession and the pace of changes in global monetary policy may impact global demand for natural gas, NGLs and oil. We continue to assess and monitor the impact of these factors on our business.

Previous wording

Benchmarks for natural gas and NGLs increased in first quarter 2025 compared to the same period of 2024. As a result, we experienced increases in our price realizations for the quarter ended March 31, 2025. With these increasing prices, we continue to focus on creating long-term value for our stockholders along with positioning ourselves to be a responsible and reliable supplier of natural gas and NGLs.

Current wording

Benchmarks for natural gas and NGLs increased in second quarter 2025 and first six months 2025 compared to the same periods of 2024. As a result, we experienced increases in our price realizations for all periods in 2025. With these increasing prices, we continue to focus on creating long-term value for our stockholders along with positioning ourselves to be a responsible and reliable supplier of natural gas and NGLs.

Previous wording

The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the three months ended March 31, 2025 and 2024:

Current wording

The following table lists related benchmarks for natural gas, oil and NGLs composite prices for the three and six months ended June 30, 2025 and 2024:

Previous wording

In first quarter 2025, we experienced an increase in revenue from the sale of natural gas, NGLs and oil when compared to the same quarter of 2024, due to an increase of 21% in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) and a 2% increase in total production. Daily production averaged 2.2 Bcfe in first quarter 2025 and 2.1 Bcfe in the same period of 2024.

Current wording

In second quarter 2025, we experienced an increase in revenue from the sale of natural gas, NGLs and oil when compared to the same quarter of 2024, due to an increase of 19% in net realized prices (average prices including all derivative settlements and third-party transportation costs paid by us) and a 2% increase in total production.

Previous wording

During first quarter 2025, we recognized net income of $97.1 million, or $0.40 per diluted common share compared to net income of $92.1 million, or $0.38 per diluted common share during first quarter 2024. The higher net income in first quarter 2025 compared to first quarter 2024 is primarily due to increased realized prices offset by a higher unrealized derivative fair value loss.

Current wording

During second quarter 2025, we recognized net income of $237.6 million, or $0.99 per diluted common share compared to net income of $28.7 million, or $0.12 per diluted common share during second quarter 2024. The higher net income in second quarter 2025 compared to second quarter 2024 is primarily due to increased realized prices combined with a higher unrealized derivative fair value gain.

Previous wording

Our first quarter 2025 financial and operating performance included the following results:

Current wording

Our second quarter 2025 financial and operating performance included the following results:

Previous wording

revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) increased 16% from the same period of 2024;

Current wording

revenue from the sale of natural gas, NGLs and oil (including cash settlements on our derivatives) increased 15% from the same period of 2024;

Previous wording

transportation, gathering, processing and compression per mcfe was $1.55 in first quarter 2025 compared to $1.49 in the same period of 2024, primarily due to an increase in NGLs volumes and prices;

Current wording

transportation, gathering, processing and compression per mcfe was $1.52 in second quarter 2025 compared to $1.44 in the same period of 2024, primarily due to an increase in NGLs volumes and electricity costs;

Previous wording

general and administrative expense per mcfe was $0.21 in first quarter 2025 compared to $0.23 in the same period of 2024 due largely to timing of expenses; and

Current wording

general and administrative expense per mcfe was $0.21 in second quarter 2025 compared to $0.20 in the same period of 2024 due largely to timing of expenses; and

Previous wording

interest expense decreased 4% from the same period of 2024 due to lower debt balances.

Current wording

interest expense per mcfe decreased 13% from the same period of 2024 due to lower debt balances.

Previous wording

First quarter 2025 also included the following highlights to enhance our balance sheet and return capital to investors :

Current wording

Second quarter 2025 also included the following highlights to enhance our balance sheet and return capital to investors:

Previous wording

repurchased $67.5 million (1.8 million shares) of our common stock;

Current wording

repurchased $52.9 million (1.5 million shares) of our common stock;

Previous wording

paid $21.6 million of dividends, increasing per share dividend by 12.5% to $0.09 per share compared to $0.08 per share in the same period of 2024;

Current wording

paid $21.5 million of dividends, increasing per share dividend by 12.5% to $0.09 per share compared to $0.08 per share in the same period of 2024;

Previous wording

maintained substantial liquidity with the accumulation of cash on hand of $344.6 million along with $1.3 billion available under our credit facility.

Current wording

maintained substantial liquidity with $1.2 billion available under our credit facility.

Previous wording

We generated $330.1 million of cash from operating activities in first quarter 2025, a slight decrease of $1.8 million from first quarter 2024, which reflects the impact of lower working capital.

Current wording

We generated $336.2 million of cash from operating activities in second quarter 2025, an increase of $187.4 million from second quarter 2024, which reflects the impact of higher realized prices.

Previous wording

direct operating expense per mcfe increased to $0.13 in first quarter 2025 compared to $0.11 in the same period of 2024 due to an increase in water hauling, pumping costs and increased winter operations activity;

Current wording

direct operating expense per mcfe increased to $0.12 in first six months 2025 compared to $0.11 in the same period of 2024 due to an increase in water hauling and pumping costs;

Previous wording

repurchased in the open market $2.2 million principal amount of our 4.875% senior notes due 2025 at a discount; and

Current wording

repurchased in the open market $2.2 million principal amount of our 4.875% senior notes due 2025 at a discount and paid off the remaining principal balance of the $606.5 million of our 4.875% senior notes due 2025 at par by utilizing cash on hand and borrowing on our credit facility; and

Previous wording

Our revenues vary primarily as a result of changes in realized commodity prices and production volumes. Our revenues are generally recognized when control of the product is transferred to the customer and collectability is reasonably assured. The following table illustrates the primary components of natural gas, NGLs and oil sales for the three months ended March 31, 2025 and 2024 (in thousands):

Current wording

Our revenues vary primarily as a result of changes in realized commodity prices and production volumes. Our revenues are generally recognized when control of the product is transferred to the customer and collectability is reasonably assured. The following table illustrates the primary components of natural gas, NGLs and oil sales for the three and six months ended June 30, 2025 and 2024 (in thousands):

Previous wording

Production is maintained through drilling success as new wells are placed in production, which is partially offset by the natural decline in production through existing wells. Our production for the three months ended March 31, 2025 and 2024 is set forth in the following table:

Current wording

Production is maintained through drilling success as new wells are placed in production, which is partially offset by the natural decline in production through existing wells. Our production for the three and six months ended June 30, 2025 and 2024 is set forth in the following table:

Previous wording

Our average realized price received (including all derivative settlements and third-party transportation costs) during first quarter 2025 was $2.48 per mcfe compared to $2.05 per mcfe in first quarter 2024. We believe computed final realized prices should include the total impact of transportation, gathering, processing and compression expense. Our average realized prices (including all derivative settlements and third-party transportation costs) calculation also includes all cash settlements for derivatives. Our average realized prices (excluding derivative settlements) do not include derivative settlements or third-party transportation costs which are reported in transportation, gathering, processing and compression expense in the accompanying consolidated statements of income. Our average realized prices (including derivative settlements) do include transportation costs where we receive net revenue proceeds from purchasers. Our average realized price calculations for three months ended March 31, 2025 and 2024 are shown below:

Current wording

Our average realized price received (including all derivative settlements and third-party transportation costs) during second quarter 2025 was $1.97 per mcfe compared to $1.66 per mcfe in second quarter 2024. Our average realized price received (including all derivative settlements and third-party transportation costs) during first six months 2025 was $2.22 per mcfe compared to $1.85 per mcfe in first six months 2024. We believe computed final realized prices should include the total impact of transportation, gathering, processing and compression expense. Our average realized prices (including all derivative settlements and third-party transportation costs) calculation also includes all cash settlements for derivatives. Our average realized prices (excluding derivative settlements) do not include derivative settlements or third-party transportation costs which are reported in transportation, gathering, processing and compression expense in the accompanying consolidated statements of income. Our average realized prices (including derivative settlements) do include transportation costs where we receive net revenue proceeds from purchasers. Our average realized price calculations for three and six months ended June 30, 2025 and 2024 are shown below:

Previous wording

Transportation, gathering, processing and compression expense was $306.1 million in first quarter 2025 compared to $290.9 million in first quarter 2024. These third-party costs are higher in first quarter 2025 when compared to first quarter 2024 primarily due to an increase in NGLs volumes and prices. Gas transportation expense increased due to an increase in fuel cost caused by higher prices combined with an increase in electric compression cost.

Current wording

Transportation, gathering, processing and compression expense was $304.7 million in second quarter 2025 compared to $281.5 million in second quarter 2024. These third-party costs are higher in second quarter 2025 when compared to second quarter 2024 primarily due to an increase in NGLs volumes and electricity cost.

Previous wording

We have included these costs in the calculation of average realized prices (including all derivative settlements and third-party transportation expenses paid by Range). The following table summarizes transportation, gathering, processing and compression expense for the three months ended March 31, 2025 and 2024 on a per mcf and per barrel basis (in thousands, except for costs per unit):

Current wording

Transportation, gathering, processing and compression expense was $610.8 million in first six months 2025 compared to $572.4 million in first six months 2024. These third-party costs are higher in first six months 2025 when compared to first six months 2024 primarily due to an increase in NGLs volumes and electricity cost. Gas transportation expense increased due to an increase in fuel cost caused by higher prices. We have included these costs in the calculation of average realized prices (including all derivative settlements and third-party transportation expenses paid by Range). The following table summarizes transportation, gathering, processing and compression expense for the three and six months ended June 30, 2025 and 2024 on a per mcf and per barrel basis (in thousands, except for costs per unit):

Previous wording

Derivative fair value (loss)was $159.0 million in first quarter 2025 compared to income of $46.6 million in first quarter 2024. All of our derivatives are accounted for using the mark-to-market accounting method. Mark-to-market accounting treatment can result in more volatility of our revenues as the change in the fair value of our commodity derivative positions is included in total revenue. As commodity prices increase or decrease, such changes will have an opposite effect on the mark-to-market value of our derivatives. Gains on our derivatives generally indicate potentially lower wellhead revenues in the future while losses indicate potentially higher future wellhead revenues. The following table summarizes the impact of our commodity derivatives for the three months ended March 31, 2025 and 2024 (in thousands):

Current wording

Derivative fair value incomewas $154.7 million in second quarter 2025 compared to income of $16.8 million in second quarter 2024. Derivative fair value loss was $4.2 million in first six months 2025 compared to income of $63.4 million in first six months 2024. All of our derivatives are accounted for using the mark-to-market accounting method. Mark-to-market accounting treatment can result in more volatility of our revenues as the change in the fair value of our commodity derivative positions is included in total revenue. As commodity prices increase or decrease, such changes will have an opposite effect on the mark-to-market value of our derivatives. Gains on our derivatives generally indicate potentially lower wellhead revenues in the future while losses indicate potentially higher future wellhead revenues. The following table summarizes the impact of our commodity derivatives for the three and six months ended June 30, 2025 and 2024 (in thousands):

Previous wording

Brokered natural gas and marketing revenue was $54.4 million in first quarter 2025 compared to $28.8 million in first quarter 2024, which is the result of higher broker sales price slightly offset by lower broker sales volumes (volumes not related to our production). We continue to optimize our transportation portfolio using these volumes. See also Brokered natural gas and marketing expense below for more information on our net brokered margin.

Current wording

Brokered natural gas and marketing revenue was $33.0 million in second quarter 2025 compared to $31.4 million in second quarter 2024, which is the result of higher broker sales price slightly offset by lower broker sales volumes (volumes not related to our production). Brokered natural gas and marketing revenue was $87.4 million in first six months 2025 compared to $60.2 million in first six months 2024, which is the result of higher broker sales price slightly offset by lower broker sales volumes (volumes not related to our production). We continue to optimize our transportation portfolio using these volumes. See also Brokered natural gas and marketing expense below for more information on our net brokered margin.

Previous wording

Other incomewas $3.2 million in first quarter 2025 compared to $3.0 million in first quarter 2024. This includes $3.1 million of interest income and a $62,000 gain on sale of assets in 2025 compared to $2.9 million of interest income and an $87,000 gain on sale of assets in 2024. In the 2024 interim periods, interest income was included within brokered natural gas and marketing revenue and other and gain on sale of assets was its own discrete line in prior interim financial statements. In 2025 and for the comparable interim period presented, we reclassified both of these items into other income in the accompanying consolidated statements of income.

Current wording

Other incomewas $1.9 million in second quarter 2025 compared to $3.5 million in second quarter 2024. This includes $1.8 million of interest income and a $78,000 gain on sale of assets in 2025 compared to $3.4 million of interest income and a $55,000 gain on sale of assets in 2024. Other income was $5.1 million in first six months 2025 compared to $6.5 million in first six months 2024. This includes $4.8 million of interest income and a $136,000 gain on sale of assets in 2025 compared to $6.3 million of interest income and a $126,000 gain on sale of assets in 2024. Interest income is lower in 2025 due to the use of cash to repay senior notes. In the 2024 interim periods, interest income was included within brokered natural gas and marketing revenue and other and gain on sale of assets was its own discrete line in prior interim financial statements. In 2025 and for the comparable interim periods presented, we reclassified both of these items into other income in the accompanying consolidated statements of income.

Previous wording

We believe some of our expense fluctuations are best analyzed on a unit-of-production or per mcfe basis. The following table presents information about certain of our expenses on a per mcfe basis for the three months ended March 31, 2025 and 2024:

Current wording

We believe some of our expense fluctuations are best analyzed on a unit-of-production or per mcfe basis. The following table presents information about certain of our expenses on a per mcfe basis for the three and six months ended June 30, 2025 and 2024:

Previous wording

Direct operating expense was $25.4 million in first quarter 2025 compared to $22.2 million in first quarter 2024. Direct operating expenses include normally recurring expenses to operate and produce our wells, non-recurring workover costs and repair-related expenses. Our direct operating costs increased in first quarter 2025 primarily due to higher water hauling, pumping costs and increased winter operations activity. We incurred $789,000 of workover costs in first quarter 2025 compared to $869,000 in first quarter 2024. The following table summarizes direct operating expense per mcfe for the three months ended March 31, 2025 and 2024:

Current wording

Direct operating expense was $23.1 million in second quarter 2025 compared to $22.8 million in second quarter 2024. Direct operating expenses include normally recurring expenses to operate and produce our wells, non-recurring workover costs and repair-related expenses. Our direct operating costs increased in second quarter 2025 primarily due to higher workovers and maintenance costs. We incurred $803,000 of workover costs in second quarter 2025 compared to $644,000 in second quarter 2024.

Previous wording

Taxes other than income expense is predominately comprised of the Pennsylvania impact fee which functions as a tax on unconventional natural gas and oil production from the Marcellus Shale in Pennsylvania. This impact fee was $6.8 million in first quarter 2025 compared to $5.7 million in first quarter 2024. The impact fee is based on drilling activities and is adjusted based on prevailing natural gas prices. This category also includes franchise, real estate and other applicable taxes. The following table summarizes taxes other than income per mcfe for the three months ended March 31, 2025 and 2024:

Current wording

Taxes other than income expense is predominately comprised of the Pennsylvania impact fee which functions as a tax on unconventional natural gas and oil production from the Marcellus Shale in Pennsylvania. This impact fee was $7.4 million in second quarter 2025 compared to $4.6 million in second quarter 2024 and $14.3 million in first six months 2025 compared to $10.4 million in first six months 2024. The impact fee is based on drilling activities and is adjusted based on prevailing natural gas prices, which are both higher than prior year. This category also includes franchise, real estate and other applicable taxes. The following table summarizes taxes other than income per mcfe for the three and six months ended June 30, 2025 and 2024:

Previous wording

General and administrative (G&A) expense was $41.7 million in first quarter 2025 compared to $43.9 million in first quarter 2024. The first quarter 2025 decrease of $2.2 million when compared to the same period of 2024 is primarily due to lower consulting fees and timing of expenses. The following table summarizes G&A expenses on a per mcfe basis for the three months ended March 31, 2025 and 2024:

Current wording

G&A expense was $83.8 million in first six months 2025 compared to $84.1 million in first six months 2024. The decrease of $245,000 is primarily due to lower consulting fees and timing of expenses, mostly offset by higher employee related costs. The following table summarizes G&A expenses on a per mcfe basis for the three and six months ended June 30, 2025 and 2024:

Previous wording

Interest expense was $29.2 million in first quarter 2025 compared to $30.5 million in first quarter 2024. The following table presents information about interest expense per mcfe for the three months ended March 31, 2025 and 2024:

Current wording

Interest expense was $26.8 million in second quarter 2025 compared to $29.7 million in second quarter 2024. Interest expense was $56.0 million in first six months 2025 compared to $60.2 million in first six months 2024. The following table presents information about interest expense per mcfe for the three and six months ended June 30, 2025 and 2024:

Previous wording

The decrease in interest expense for first quarter 2025 from the same period of 2024 was primarily due to lower average outstanding debt balances. We had no debt outstanding on the bank credit facility for first quarter 2025 or the same period of 2024.

Current wording

The decrease in interest expense for second quarter and six months 2025 compared to the same periods of 2024 was primarily due to lower average outstanding debt balances. In May 2025, we paid off the remaining principal balance of $606.5 million of our 4.875% senior notes due 2025 by utilizing cash on hand and borrowing on our credit facility. We had $125.0 million outstanding on the bank credit facility as of June 30, 2025 compared to no bank debt outstanding for the same period of 2024.

Previous wording

Depletion, depreciation and amortization (DD&A) expense was $90.6 million in first quarter 2025 compared to $87.1 million in first quarter 2024. This increase is due to a higher depletion rate combined with slightly higher production volumes. Depletion expense, the largest component of DD&A expense, was $0.45 per mcfe in first quarter 2025 compared to $0.44 per mcfe in first quarter 2024.

Current wording

Depletion, depreciation and amortization (DD&A) expense was $91.5 million in second quarter 2025 compared to $87.6 million in second quarter 2024, and was $182.1 million in first six months 2025 compared to $174.7 million in first six months 2024. This increase in both periods is due to a higher depletion rate combined with higher production volumes. Depletion expense, the largest component of DD&A expense, was $0.45 per mcfe in second quarter 2025 and first six months 2025 compared to $0.44 per mcfe in the same periods of 2024. We have historically adjusted our depletion rates in the fourth quarter of each year based on the year-end reserve report and at other times during the year when circumstances indicate there has been a significant change in reserves or costs. The following table summarizes DD&A expense per mcfe for the three and six months ended June 30, 2025 and 2024:

Previous wording

Brokered natural gas and marketing expense was $58.2 million in first quarter 2025 compared to $31.6 million in first quarter 2024 due to higher commodity prices slightly offset by lower broker purchase volumes (volumes not related to our production). The following table details our brokered natural gas and marketing net margin for the three months ended March 31, 2025 and 2024 (in thousands):

Current wording

Brokered natural gas and marketing expense was $35.0 million in second quarter 2025 compared to $34.1 million in second quarter 2024 due to higher commodity prices slightly offset by lower broker purchase volumes (volumes not related to our production). Brokered natural gas and marketing expense was $93.2 million in first six months 2025 compared to $65.7 million in first six months 2024 due to higher commodity prices slightly offset by lower broker purchase volumes (volumes not related to our production). The following table details our brokered natural gas and marketing net margin for the three and six months ended June 30, 2025 and 2024 (in thousands):

Previous wording

Exploration expense was $6.4 million in first quarter 2025 compared to $4.5 million in first quarter 2024 mainly due to higher delay rentals. The following table details our exploration expense for the three months ended March 31, 2025 and 2024 (in thousands):

Current wording

Exploration expense was $7.9 million in second quarter 2025 compared to $6.7 million in second quarter 2024 mainly due to higher delay rentals. Exploration expense was $14.3 million in first six months 2025 compared to $11.2 million in first six months 2024 mainly due to higher delay rentals. The following table details our exploration expense for the three and six months ended June 30, 2025 and 2024 (in thousands):

Previous wording

Abandonment and impairment of unproved properties expense was $4.6 million in first quarter 2025 compared to $2.4 million in first quarter 2024. Abandonment and impairment of unproved properties for first quarter 2025 increased when compared to the same period of 2024 due to higher expected lease expirations in Pennsylvania. When we do not intend to drill on a property prior to expiration, we have allowed acreage to expire and we expect to allow acreage to expire in the future. However, we also believe acreage needed for our future development plans can be leased again.

Current wording

Abandonment and impairment of unproved properties expense was $6.8 million in second quarter 2025 compared to $1.5 million in second quarter 2024. Abandonment and impairment of unproved properties expense was $11.4 million in first six months 2025 compared to $3.9 million in first six months 2024. Abandonment and impairment of unproved properties for second quarter 2025 and first six months 2025 increased when compared to the same periods of 2024 due to higher expected lease expirations in Pennsylvania. When we do not intend to drill on a property prior to expiration, we have allowed acreage to expire. We also expect to strategically allow expirations in the future, as we believe certain acreage needed for our future development plans can be efficiently leased again prior to development.

Previous wording

Exit costs were $8.9 million in first quarter 2025 compared to $10.3 million in first quarter 2024. In first quarter 2025, we recorded $8.9 million accretion expense primarily related to retained liabilities for certain gathering, transportation and processing obligations extending through 2030 compared to accretion expense of $10.3 million in the same quarter of the prior year.

Current wording

Exit costs were $8.5 million in second quarter 2025 compared to $10.1 million in second quarter 2024. Exit costs were $17.4 million in first six months 2025 compared to $20.4 million in first six months 2024. These costs are associated with normal accretion expense primarily related to retained liabilities for certain gathering, transportation and processing obligations extending through 2030.

Previous wording

Deferred compensation plan expense was $2.9 million in first quarter 2025 compared to $6.4 million in first quarter 2024. This non-cash item relates to the increase or decrease in value of the liability associated with our common stock that is vested and held in our deferred compensation plan. The deferred compensation liability is adjusted to fair value by a charge or a credit to deferred compensation plan expense based on the number of vested shares in the plan at the time. Our stock price increased from $35.98 at December 31, 2024 to $39.93 at March 31, 2025. In the same period of the prior year, our stock price increased from $30.44 at December 31, 2023 to $34.43 at March 31, 2024.

Current wording

Deferred compensation plan had a gain of $88,000 in second quarter 2025 compared to expense of $1.2 million in second quarter 2024. Deferred compensation plan expense was $2.8 million in first six months 2025 compared to $7.6 million in first six months 2024. This non-cash item relates to the increase or decrease in value of the liability associated with our common stock that is vested and held in our deferred compensation plan. The deferred compensation liability is adjusted to fair value by a charge or a credit to deferred compensation plan expense based on the number of vested shares in the plan at the time. The reduction in both periods is related to fewer shares being held within the deferred compensation plan. The deferred compensation plan held 265,000 shares (256,000 vested shares) of Range common stock at June 30, 2025 compared to 811,000 shares (758,000 vested shares) at June 30, 2024.