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 March 31, 2014
Weighted average exercise price per share	$	81.74
Expected annual dividends per share		0.20	%
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 Units (a)		Weighted 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	$	82.60

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 Average Grant Date Fair Value		Shares			Weighted Average Grant 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