Stock-Based Compensation Plans (Tables)

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Operating expense	$	1,937	$	696	$	2,789	$	1,357
Brokered natural gas and marketing expense		1,130		530		1,658		779
Exploration expense		1,222		960		2,375		2,030
General and administrative expense		20,696		13,263		32,300		23,569
Total	$	24,985	$	15,449	$	39,122	$	27,735

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		(576,806	)		45.17
Expired/forfeited		(66	)		46.44
Outstanding at June 30, 2014		2,006,306		$	59.59

Weighted Average Grant Date Fair Value of SARs

During first six 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:

	Six Months Ended June 30, 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

The following is a summary of our non-vested PSU awards outstanding at June 30, 2014:

	Units (a)			Weighted Average Grant Date Fair Value
Outstanding at December 31, 2013		—		$	—
Units granted		227,929			86.14
Units vested (b)		(53,792	)		86.40
Outstanding at June 30, 2014		174,137		$	86.06

^(a) Amounts granted 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.

^(b) Primarily represents PSU awards granted to our prior executive chairman for the 2013 calendar year while he was a Range officer.

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 six months 2014:

	Six  Months Ended June 30, 2014
Risk-free interest rate		0.77	%
Expected annual volatility		32.5	%
Grant date fair value per unit	$	86.14

Restricted Stock and Restricted Stock Units Outstanding

	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		355,094			84.96		268,385			87.54
Vested		(196,227	)		72.11		(203,227	)		75.81
Forfeited		(16,005	)		75.16		(90	)		71.03
Outstanding at June 30, 2014		527,925		$	77.84		454,081		$	78.64