BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2013

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

(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 2012 Annual Report on Form 10-K filed on February27, 2013. The results of operations for the quarter ended March31, 2013 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 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 year’s reported amounts in order to conform with the current year presentation. These reclassifications include gas purchases and other marketing costs which were previously reported in other income and are currently reported as a separate operating expense. These reclassifications have no impact on previously reported net income.

In first quarter 2012, the Pennsylvania legislature passed an “impact fee” on unconventional natural gas and oil production.The impact fee is a per well annual fee imposed for a period of fifteen years on all unconventional wells drilled in Pennsylvania. The fee is based on the average annual price of natural gas and the Consumer Price Index. The annual fee per well declines each year over the fifteen year time period as long as the well is producing. In the first three months of 2012, we recorded a retroactive impact fee of $24.0 million for wells drilled during 2011 and prior. This expense is reflected in our statements of operations category production and ad valorem taxes.

Assets Held for Sale

Any properties held for sale as of the balance sheet date are separately presented on the accompanying balance sheets at the lower of net book value or fair value less the cost to sell. The asset retirement obligations liabilities related to such properties have been reclassified to liabilities held for sale. On February 26, 2013, we announced we signed a definitive agreement to sell certain of our Permian and Delaware Basin properties for a price of $275.0 million, subject to normal post-closing adjustments.  Refer to Note 4 for additional discussion on these assets.  As of March 31, 2013, the carrying value of these assets held for sale is composed of the following (in thousands).

	March 31, 2013
Composition of assets held for sale:
Oil and gas properties	$161,140
Transportation and field assets	3
Accounts receivable and other	4,117
Inventory	218
	$165,478
Composition of liabilities held for sale:
Accounts payable	$(354)
Asset retirement obligation	(2,816)
Accrued liabilities	(5,176)
	$(8,346)

De-designation of commodity derivative contracts

Effective March1, 2013, we elected to discontinue hedge accounting prospectively.After March 1, 2013, both realized and unrealized gains and losses will be recognized in earnings immediately each quarter as derivative contracts are settled and markedtomarket. Forfirst quarter 2013, unrealized losses of $81.4million were included in our statements of operations that, prior to March1, 2013, would have been deferred in accumulated other comprehensive income (“AOCI”)if we continued using hedge accounting. Refer to Note 11 for additional information.