<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(MARK ONE)
[x] ANNUAL REPORT PURSUANT TO SECTION 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transaction period from to
-------------- ----------------------
Commission file number 1-12209
--------------
RANGE RESOURCES CORPORATION
401(k) PLAN AND TRUST
500 THROCKMORTON STREET, FT. WORTH, TEXAS 76102
(Address of principal executive offices) (Zip Code)
<PAGE> 2
INDEPENDENT AUDITORS' REPORT
Range Resources Corporation 401(k) Plan
Hartville, Ohio
We have audited the financial statements of RANGE RESOURCES CORPORATION 401(k)
PLAN as of December 31, 1998 and 1997, and for the years then ended, and the
supplemental schedules as of and for the year ended December 31, 1998 as listed
in the accompanying index. These financial statements and schedules are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements, referred to above, of Range Resources
Corporation 401(k) Plan present fairly, in all material respects, the net assets
available for benefits of Range Resources Corporation Plan as of December 31,
1998 and 1997 and the changes in net assets available for benefits for the years
then ended in conformity with generally accepted accounting principles.
Our audit of the Plan's financial statements was conducted for the purpose of
forming an opinion on the financial statements taken as a whole. The
supplemental schedules of assets held for investment purposes and reportable
transactions as of and for the year ended December 31, 1998 are presented for
the purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The supplemental schedules
have been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
MEADEN & MOORE, LTD.
Certified Public Accountants
June 10, 1999
Cleveland, Ohio
<PAGE> 3
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
Range Resources Corporation 401(k) Plan
<TABLE>
<CAPTION>
December 31,
1998 1997
---------- ----------
<S> <C> <C>
Investments
Prime Money Market Fund $ - $ 508,919
One Group Income Bond Fund - 484,001
One Group Income Equity Fund - 2,098,015
Lomak Corporation common stock - 525,167
Fidelity Blue Chip Growth Fund - 377,455
Fidelity Contrafund - 264,752
Fidelity Growth Company Fund - 298,417
Fidelity Retirement Growth Fund - 128,763
Fidelity Overseas Fund - 53,378
Fidelity U.S. Equity Index - 139,036
Merrill Lynch Institutional Fund 14,037 -
Range Resources Corporation common stock 250,653 -
Merrill Lynch Retirement Preservation Trust 788,511 -
Aim Balanced Fund 800 -
Merrill Lynch Growth Fund Class D 383,565 -
Oppenheimer Global Growth 13 -
Merrill Lynch Corporate Bond Fund Intermediate Class D 468,415 -
Federated High Income Bond Fund Class A 1,708 -
Merrill Lynch Corporate Bond Fund Intermediate Class D-GM 26 -
Mass Investors Trust 1,074 -
Mass Investors Trust-GM 70 -
Aim Blue Chip Fund Class A 5,849 -
Davis New York Venture Fund 1,430,304 -
Merrill Lynch S&P 500 Index 265,063 -
Lord Abbett Development Growth Class P 73 -
Managers International Equity Fund 89 -
Gam International Fund Class A 103,851 -
Aim Income Fund Class A 12 -
Gam International Fund Class A 74 -
Oppenheimer Global Fund 1,930 -
Alliance Quasar Fund Class A 2,959 -
Pioneer Growth Shares 3,544 -
MFS Capital Opportunity Fund Class A 2,054 -
Merrill Lynch Capital Fund Class D 2,110,087 -
Cash 17,389 -
Participant notes receivable 101,235 86,118
---------- ----------
Total Investments 5,953,385 4,964,021
Receivables:
Interest _ 7,320
Employer's contribution 613,598 697,222
Participants contribution 42,669 26,495
Other - 1,048
---------- ----------
Total Receivables 656,267 732,085
---------- ----------
Total Assets 6,609,652 5,696,106
---------- ----------
LIABILITIES - -
---------- ----------
Net Assets $6,609,652 $5,696,106
========== ==========
See accompanying notes.
</TABLE>
-3-
<PAGE> 4
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Range Resources Corporation 401(k) Plan
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
Prime One Group One Group
Money Income Income
Total Market Fund Bond Fund Equity Fund
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCOME:
Investment Income:
Interest $ 37,926 $ 11,934 $ 204 $ 260
Dividends 251,031 -- 20,427 7,259
Realized gains (losses) 40,267 -- 1,664 228,281
Unrealized gains (losses) (717,587) -- -- --
----------- ----------- ----------- -----------
(388,363) 11,934 22,295 235,800
Contributions:
Participant 912,833 46,487 27,361 83,355
Employer 620,545 -- -- --
Rollover 138,369 11,469 2,442 10,477
----------- ----------- ----------- -----------
1,671,747 57,956 29,803 93,832
----------- ----------- ----------- -----------
Total Income 1,283,384 69,890 52,098 329,632
DEDUCTIONS:
Withdrawals and terminations (398,057) (243,609) (3,017) --
Net loan activity (966) -- -- --
Administrative expenses (44,915) (13,903) (3,564) (12,434)
----------- ----------- ----------- -----------
Total Deductions (443,938) (257,512) (6,581) (12,434)
----------- ----------- ----------- -----------
Increase (Decrease) before transfers 839,446 (187,622) 45,517 317,198
Asset transfers 74,927 (495,482) (463,360) (2,301,301)
Other (827) -- -- --
Interfund transfers -- 179,850 (160,749) (123,547)
----------- ----------- ----------- -----------
Net Increase (Decrease) 913,546 (503,254) (578,592) (2,107,650)
Beginning Net Assets 5,696,106 503,254 578,592 2,107,650
----------- ----------- ----------- -----------
Ending Net Assets $ 6,609,652 $ -- $ -- $ --
=========== =========== =========== ===========
</TABLE>
See accompanying notes.
-4-
<PAGE> 5
<TABLE>
<CAPTION>
Lomak Fidelity Fidelity
Corporation Blue Chip Growth Fidelity Fidelity
Common Growth Fidelity Company Retirement Overseas Fidelity U.S.
Stock Fund Contrafund Fund Growth Fund Fund Equity Index
- ----------- ---------- --------- --------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
$ 286 $ 184 $ 81 $ 54 $ 43 $ 26 $ 31
4,465 - - - - - 1,203
(399,365) 78,120 52,154 45,513 33,212 9,882 24,711
- - - - - - -
- ----------- ---------- --------- --------- --------- -------- ---------
(394,614) 78,304 52,235 45,567 33,255 9,908 24,945
67,220 52,896 37,593 27,386 13,053 12,532 15,345
6,947 - - - - - -
33,184 45,066 4,657 4,657 14,285 - 2,179
- ----------- ---------- --------- --------- --------- -------- ---------
107,351 97,962 42,250 32,043 27,338 12,532 17,524
- ----------- ---------- --------- --------- --------- -------- ---------
(287,263) 176,266 94,485 77,610 60,593 22,440 43,469
- - - - - - -
- - - - - - -
(5,597) (2,680) (1,888) (1,913) (1,004) (516) (1,416)
- ----------- ---------- --------- --------- --------- -------- ---------
(5,597) (2,680) (1,888) (1,913) (1,004) (516) (1,416)
- ----------- ---------- --------- --------- --------- -------- ---------
(292,860) 173,586 92,597 75,697 59,589 21,924 42,053
(801,211) (583,770) (394,053) (384,982) (205,934) (90,559) (187,774)
- - - - - - -
(139,668) 29,245 34,049 9,194 16,464 14,742 5,061
- ----------- ---------- --------- --------- --------- -------- ---------
(1,233,739) (390,939) (267,407) (300,091) (129,881) (53,893) (140,660)
1,233,739 390,939 267,407 300,091 129,881 53,893 140,660
- ----------- ---------- --------- --------- --------- -------- ---------
$ - $ - $ - $ - $ - $ - $ -
=========== ========== ========= ========= ========= ======== =========
</TABLE>
-5-
<PAGE> 6
<TABLE>
<CAPTION>
Range Merrill Lynch
Merrill Resources Merrill Lynch Corporate
Lynch Corporation Retirement Aim Merrill Lynch Oppenheimer Bond Fund
Institutional Common Preservation Balanced Growth Fund Global Intermediate
Fund Stock Trust Fund Class D Growth Class D
- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
$ -- $ 6,798 $ 745 $ -- $ 392 $ -- $ 2,875
55 623 19,579 7 6,090 -- 13,706
-- (20,459) -- -- (4,504) -- 227
-- (485,460) -- 37 (68,741) -- 2,218
- --------- --------- --------- --------- --------- --------- ---------
55 (498,498) 20,324 44 (66,763) -- 19,026
70 49,488 90,284 12 56,242 13 30,515
-- -- -- -- -- -- --
-- 498 -- -- 4,976 -- --
- --------- --------- --------- --------- --------- --------- ---------
70 49,986 90,284 12 61,218 13 30,515
- --------- --------- --------- --------- --------- --------- ---------
125 (448,512) 110,608 56 (5,545) 13 49,541
-- (8,773) (17,101) -- (10,955) -- (29,097)
-- 1,845 1,817 -- 834 -- 2,198
-- -- -- -- -- -- --
- --------- --------- --------- --------- --------- --------- ---------
-- (6,928) (15,284) -- (10,121) -- (26,899)
- --------- --------- --------- --------- --------- --------- ---------
125 (455,440) 95,324 56 (15,666) 13 22,642
-- 684,165 701,279 -- 411,785 -- 444,747
-- -- 217 -- -- -- --
13,912 21,928 (8,309) 744 (12,554) -- 1,026
- --------- --------- --------- --------- --------- --------- ---------
14,037 250,653 788,511 800 383,565 13 468,415
-- -- -- -- -- -- --
- --------- --------- --------- --------- --------- --------- ---------
$ 14,037 $ 250,653 $ 788,511 $ 800 $ 383,565 $ 13 $ 468,415
========= ========= ========= ========= ========= ========= =========
</TABLE>
-6-
<PAGE> 7
<TABLE>
<CAPTION>
Merrill Lynch
Federated Corporate
High Income Bond Fund Mass Mass Aim Blue Davis New Merrill Lynch
Bond Fund Intermediate Investors Investors Chip Fund York Venture S&P 500
Class A Class D-GM Trust Trust-GM Class A Fund Index
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
$ -- $ -- $ -- $ -- $ -- $ 12,149 $ 217
4 -- -- -- 16 32,688 11,550
-- -- -- -- -- (797) 51
(2) -- 14 2 418 25,236 8,116
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
2 -- 14 2 434 69,276 19,934
28 26 70 68 1260 118,612 35,132
-- -- -- -- -- -- --
-- -- -- -- -- -- 4,479
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
28 26 70 68 1,260 118,612 39,611
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
30 26 84 70 1,694 187,888 59,545
-- -- -- -- -- (20,056) (8,534)
-- -- -- -- -- 2,372 572
-- -- -- -- -- -- --
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
-- -- -- -- -- (17,684) (7,962)
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
30 26 84 70 1,694 170,204 51,583
-- -- -- -- -- 1,285,150 187,577
-- -- -- -- -- -- --
1,678 -- 990 -- 4,155 (25,050) 25,903
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
1,708 26 1,074 70 5,849 1,430,304 265,063
-- -- -- -- -- -- --
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 1,708 $ 26 $ 1,074 $ 70 $ 5,849 $ 1,430,304 $ 265,063
=========== =========== =========== =========== =========== =========== ===========
</TABLE>
-7-
<PAGE> 8
<TABLE>
<CAPTION>
Lord Abbett Managers Gam Gam Oppenheimer Alliance
Dev. Growth International International Aim Income International Global Quasar Fund
Class P Equity Fund Fund Class A Fund Class A Fund Class A Fund Class A
- ----------- ------------- ------------- ------------- -------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
$ -- $ -- $ 71 $ -- $ -- $ -- $ --
-- 6 1,402 -- -- 141 100
-- -- (590) -- -- -- (1)
5 3 (8,932) -- 2 (44) 270
- --------- --------- --------- --------- --------- --------- ---------
5 9 (8,049) -- 2 97 369
68 80 19,476 12 72 12 2,681
-- -- -- -- -- -- --
-- -- -- -- -- -- --
- --------- --------- --------- --------- --------- --------- ---------
68 80 19,476 12 72 12 2,681
- --------- --------- --------- --------- --------- --------- ---------
73 89 11,427 12 74 109 3,050
-- -- (1,460) -- -- -- (91)
-- -- 186 -- -- -- --
-- -- -- -- -- -- --
- --------- --------- --------- --------- --------- --------- ---------
-- -- (1,274) -- -- -- (91)
- --------- --------- --------- --------- --------- --------- ---------
73 89 10,153 12 74 109 2,959
-- -- 94,315 -- -- -- --
-- -- -- -- -- -- --
-- -- (617) -- -- 1,821 --
- --------- --------- --------- --------- --------- --------- ---------
73 89 103,851 12 74 1,930 2,959
-- -- -- -- -- -- --
- --------- --------- --------- --------- --------- --------- ---------
$ 73 $ 89 $ 103,851 $ 12 $ 74 $ 1,930 $ 2,959
========= ========= ========= ========= ========= ========= =========
</TABLE>
-8-
<PAGE> 9
<TABLE>
<CAPTION>
Pioneer MFS Capital Merrill Lynch Participants
Growth Opportunity Capital Fund Notes Contributions
Shares Fund Class A Class D Receivable Cash Receivable
- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
$ -- $ -- $ 1,576 $ -- $ -- $ --
-- -- 131,710 -- -- --
-- -- (7,832) -- -- --
59 42 (190,830) -- -- --
- ----------- ----------- ----------- ----------- ----------- -----------
59 42 (65,376) -- -- --
106 32 82,577 -- -- 42,669
-- -- -- -- -- 613,598
-- -- -- -- -- --
- ----------- ----------- ----------- ----------- ----------- -----------
106 32 82,577 -- -- 656,267
- ----------- ----------- ----------- ----------- ----------- -----------
165 74 17,201 -- -- 656,267
-- -- (52,762) (2,602) -- --
-- -- 4,772 (14,911) (651) --
-- -- -- -- -- --
- ----------- ----------- ----------- ----------- ----------- -----------
-- -- (47,990) (17,513) (651) --
- ----------- ----------- ----------- ----------- ----------- -----------
165 74 (30,789) (17,513) (651) 656,267
-- -- 2,155,102 -- 19,233 --
-- -- 297 -- (1,341) --
3,379 1,980 (14,523) 118,748 148 --
- ----------- ----------- ----------- ----------- ----------- -----------
3,544 2,054 2,110,087 101,235 17,389 656,267
-- -- -- -- -- --
- ----------- ----------- ----------- ----------- ----------- -----------
$ 3,544 $ 2,054 $ 2,110,087 $ 101,235 $ 17,389 $ 656,267
=========== =========== =========== =========== =========== ===========
</TABLE>
-9-
<PAGE> 10
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Range Resources Corporation 401(k) Plan
For the Year Ended December 31, 1997
<TABLE>
<CAPTION>
Prime One Group One Group
Money Income Income
Total Market Fund Bond Fund Equity Fund
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCOME:
Investment Income:
Interest $ 71,423 $ 26,652 $ 39,877 $ 1,440
Dividends 27,196 -- -- 18,311
Realized gains (losses) 405,554 -- (409) 326,646
Unrealized gains (losses) 176,368 -- (233) 215,181
----------- ----------- ----------- -----------
680,541 26,652 39,235 561,578
Contributions:
Participant 637,433 90,280 59,866 184,660
Employer 697,222 -- -- --
Rollover 237,678 26,012 32,085 32,559
----------- ----------- ----------- -----------
1,572,333 116,292 91,951 217,219
----------- ----------- ----------- -----------
Total Income 2,252,874 142,944 131,186 778,797
DEDUCTIONS:
Withdrawals and terminations (273,262) (117,540) (8,896) (76,575)
Administrative expenses (34,501) (14,108) (3,832) (12,107)
----------- ----------- ----------- -----------
Total Deductions (307,763) (131,648) (12,728) (88,682)
----------- ----------- ----------- -----------
1,945,111 11,296 118,458 690,115
Intrafund transfers -- (18,663) (223,584) (612,259)
----------- ----------- ----------- -----------
Net Increase (Decrease) 1,945,111 (7,367) (105,126) 77,856
Beginning Net Assets 3,750,995 510,621 683,718 2,029,794
----------- ----------- ----------- -----------
Ending Net Assets $ 5,696,106 $ 503,254 $ 578,592 $ 2,107,650
=========== =========== =========== ===========
</TABLE>
See accompanying notes.
-10-
<PAGE> 11
<TABLE>
<CAPTION>
Fidelity Fidelity
Lomak Blue Chip Growth Fidelity Fidelity
Common Growth Fidelity Company Retirement Overseas Fidelity U.S.
Stock Fund Contrafund Fund Growth Fund Fund Equity Index
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
$ 2,015 $ 415 $ 283 $ 386 $ 141 $ 50 $ 164
2,163 931 1,799 1,362 811 526 1,293
1,953 6,669 19,895 26,463 21,279 1,731 1,327
(32,514) 10,363 1,653 (12,359) (13,731) (3,083) 11,091
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
(26,383) 18,378 23,630 15,852 8,500 (776) 13,875
98,934 55,890 52,652 39,154 17,092 14,926 23,979
697,222 -- -- -- -- -- --
26,101 52,677 9,286 9,286 -- 34,372 15,300
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
822,257 108,567 61,938 48,440 17,092 49,298 39,279
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
795,874 126,945 85,568 64,292 25,592 48,522 53,154
(56,915) (759) (427) (1,446) (106) (45) (10,553)
(3,195) (354) (271) (346) (170) (48) (70)
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
(60,110) (1,113) (698) (1,792) (276) (93) (10,623)
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
735,764 125,832 84,870 62,500 25,316 48,429 42,531
(28,887) 255,108 182,538 237,591 104,564 5,463 98,129
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
706,877 380,940 267,408 300,091 129,880 53,892 140,660
526,862 -- -- -- -- -- --
- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 1,233,739 $ 380,940 $ 267,408 $ 300,091 $ 129,880 $ 53,892 $ 140,660
=========== =========== =========== =========== =========== =========== ===========
</TABLE>
-11-
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS
Range Resources Corporation 401(k) Plan
December 31, 1998 and 1997
1. DESCRIPTION OF PLAN
The following description of the Range Resources Corporation 401(k) Plan
and Trust provides only general information. Participants should refer
to the Plan agreement, copies of which are available from the plan
administrator, for a more complete description of the Plan's provisions.
GENERAL:
The Plan, which began January 1, 1989, is a defined contribution plan
covering all employees of the Company who have worked one thousand hours
and are eighteen years of age or older. The Plan is subject to the
provisions of the Employee Retirement Income Security Act of 1974
(ERISA). The Plan was last restated August 25, 1998 to change the name
from Lomak Petroleum, Inc. 401(k) Plan and Trust to Range Resources
Corporation 401(k) Plan.
CONTRIBUTIONS:
Cash or Deferred Option Contributions 401(k) - Participants may
contribute up to 15% of pretax annual compensation, as defined in the
Plan.
Integrated Contributions - Equal to 5.7% of each active participant's
eligible compensation in excess of the social security taxable wage
base.
Company Discretionary Contribution - Each year, the Board of Directors
determines the percentage of employees salaries which the Company will
contribute. In 1998 and 1997, the Company contributed four and a half
percent and six percent of employee's salaries. The contribution was in
the form of Company stock.
Company Discretionary Matching Contribution - At the discretion of the
Board of Directors, the Company may elect to contribute a matching
contribution based on the amounts of salary reduction of the
participants. No matching contribution was made in 1998 or 1997.
Contributions are subject to limitations on annual additions and other
limitations imposed by the Internal Revenue Code as defined in the Plan
agreement.
PARTICIPANT ACCOUNTS:
Each participant account is credited with the participant's elective
contribution, employer contributions, earnings thereon, and is charged
with an allocation of administrative expenses. Allocations are based on
participant earnings or account balances as defined in the Plan. The
benefit to which a participant is entitled is the benefit that can be
provided from the participant's vested account.
-12-
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF PLAN, CONTINUED
TRUSTEE CHANGE:
Effective July 1, 1998, Merrill Lynch is the trustee of the Plan. Prior
to July 1, 1998, Bank One of Texas was the trustee.
VESTING:
Participants are immediately fully vested in their elective
contributions plus actual earnings thereon. Vesting in the Company
contribution portion of accounts plus actual earnings thereon is as
follows:
Years of Service Vested Percentage
---------------------- -----------------
Less than One (1) Year 0%
One (1) Year 40%
Two (2) Years 80%
Three (3) or more Years 100%
PARTICIPANT NOTES RECEIVABLE:
Participants may borrow from their fund accounts up to a maximum equal
to the lesser of $50,000 or 50% of their vested account balance. Loan
terms range from one to five years. The loans are secured by the balance
in the participant's account and bear interest at the Prime rate.
Principal and interest is paid ratably through payroll deductions.
RETIREMENT:
Normal retirement age is 55 years.
BENEFIT PAYMENTS:
Benefit payments may be made in the form of lump-sum amounts,
installment payments, or through the purchase of an annuity contract.
The Plan does not allow in-service distributions.
FORFEITURES:
Forfeited balances of terminated participants' nonvested accounts are
reallocated to the account balances of the remaining active
participants.
-13-
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF PLAN, CONTINUED
TERMINATION:
Although it has not expressed any intention of doing so, the Company has
the right to terminate the Plan at any time subject to the provisions of
ERISA. In the event of Plan termination, all participants will become
fully vested in their accounts and receive full distribution.
ADMINISTRATIVE FEES:
All administrative fees were paid by the Plan.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS:
Investments are valued at fair market value. The Common Stock of Range
Resources Corporation 401(k) Plan is valued at the last reported sales
price on the last business day of the plan year.
The net realized gain or loss on investments is the difference between
the proceeds received upon the sale of investments and the market value
of the investments as of the end of the preceding year or the average
cost of those assets if acquired during the current year. Unrealized
appreciation or depreciation of investments represents the increase or
decrease in market value during the year.
USE OF ESTIMATES:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenue and expenses
during the reporting period. Actual results could differ from those
estimates.
3. INVESTMENTS
Participants may direct their 401(k) assets to be invested in any
combination of investment funds and Range Resources Corporation stock.
Descriptions of these funds are as follows:
PRIME MONEY MARKET FUND
The Prime Money Market fund can include both corporate notes and
securities issued or backed by the U.S. Government or its agencies.
Investment option terminated in 1998.
-14-
<PAGE> 15
NOTES TO FINANCIAL STATEMENTS
3. INVESTMENTS, CONTINUED
ONE GROUP INCOME BOND FUND
The One Group Income Bond Fund is designed to blend the safety and high
quality of government securities with the yield advantage of corporate
bonds. The government component of the Fund is invested in securities
backed by the full faith and credit of the U.S. Government or its
agencies. The portfolio's corporate component generally consists of
high- and medium-quality bonds that are rated the equivalent of
"investment grade" by Standard & Poor's or Moody's Investors Service and
typically pay higher yields than government bonds.
By maintaining an average weighted maturity of 5 to 20 years, the Fund
also attempts to capture the yield advantage of longer-term bonds while
seeking to limit price fluctuations. Investment option terminated in
1998.
ONE GROUP INCOME EQUITY FUND
The One Group Income Equity Fund seeks to invest in corporations that
are able to provide strong, consistent dividend returns to achieve
monthly income. These types of companies are usually large and stable
and enjoy a prominent status in their particular industries. On the
other hand, highly-leveraged and fast-paced growth companies are not
likely candidates for the Fund. Investment option terminated in 1998.
RANGE RESOURCES CORPORATION'S COMMON STOCK
No more than 50% of employees contributions may be invested in Range
Resources Corporation common stock.
FIDELITY BLUE CHIP GROWTH FUND
The fund seeks growth of capital over the long term by investing
primarily in a diversified portfolio of common stocks of well-known and
established companies. Investment option terminated in 1998.
FIDELITY CONTRAFUND
The fund seeks capital appreciation. The fund invests mainly in equity
securities of companies that the advisor believes to be undervalued due
to an overly pessimistic appraisal by the public. The fund usually
invests primarily in common stock and securities convertible into common
stock but it has the flexibility to invest in any type of security that
may produce capital appreciation. Investment option terminated in 1998.
-15-
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS
3. INVESTMENTS, CONTINUED
FIDELITY GROWTH COMPANY FUND
Fidelity Growth Company Fund seeks capital appreciation. The fund
invests primarily in common stocks and convertibles issued by companies
that the advisor believes have above-average growth potential, measured
by earnings or gross sales. To select investments, the advisor focuses
mainly on smaller, lesser-known companies in emerging areas of the
economy. It may also seek investment opportunities in revitalized or
well-positioned larger companies in mature industries. Investment option
terminated in 1998.
FIDELITY RETIREMENT GROWTH FUND
The fund seeks long-term capital appreciation by investing substantially
in common stocks, although it may invest in other types of instruments
as well. Investment option terminated in 1998.
FIDELITY OVERSEAS FUND
The fund seeks long-term growth of capital by investing primarily in
securities of issuers whose principal activities are outside of the U.S.
Investment option terminated in 1998.
FIDELITY U.S. EQUITY INDEX PORTFOLIO
The fund seeks a total return which corresponds to the Standard & Poor's
500 Index (S&P(7)). Investment option terminated in 1998.
MERRILL LYNCH INSTITUTION FUND - Seeks to maintain a constant $1.00 net
asset value per share value.
MERRILL LYNCH RETIREMENT PRESERVATION TRUST - The investment objective
is to focus on preservation of principal, high credit quality and
diversification.
AIM BALANCED FUND - The Fund seeks total return. The Fund normally
invests between 30% and 70% of assets in equities and the balance in
investment-grade fixed income securities.
MERRILL LYNCH GROWTH FUND CLASS D - The investment objectives of the
Fund are to seek growth of capital and, secondarily, income by investing
in a diversified portfolio of primarily equity securities placing
principal emphasis on those securities that management of the Fund
believes to be undervalued. Undervalued issues include securities
selling at discounts from the price-to-book value ratios and
price/earnings computed with respect to the popular stock market
averages.
OPPENHEIMER GLOBAL GROWTH - The Fund invests primarily in common stocks
and convertible securities issued by U.S. and foreign companies.
-16-
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS
3. INVESTMENTS, CONTINUED
MERRILL LYNCH CORPORATE BOND FUND INTERMEDIATE TERM CLASS D - The Fund
normally invests at least 65% of assets in investment-grade corporate
debt with a maximum remaining maturity of 10 or fewer years. The balance
may be invested in convertibles and preferred stock.
FEDERATED HIGH-INCOME BOND FUND CLASS A - Seeks high current income;
with capital growth.
MERRILL LYNCH CORPORATE BOND FUND INTERMEDIATE CLASS D-GM - Seeks
current income. Fund normally invests in at least 55% of assets in
investment-grade corporate debt with a maximum remaining maturity of 10
or fewer years.
MASS INVESTORS TRUST - Seeks current income and long-term growth of
capital and income. Invests primarily in common stocks and convertibles,
emphasizing securities that management considers to be of high or
improving quality.
MASS INVESTORS TRUST GM - Seeks current income and long-term growth of
capital and income. Invests primarily in common stocks and convertibles,
emphasizing securities that management consider to be of high or
improving quality. May also invest in debt securities and cash
equivalents.
AIM BLUE CHIP FUND CLASS A - Seeks long term growth of capital. Current
income is secondary.
DAVIS NEW YORK VENTURE FUND - The investment objective is growth of
capital and invests primarily in common stocks.
MERRILL LYNCH S&P 500 INDEX - The investment objective is to provide
investment results that seek to replicate the total of the specific
index.
LORD ABBETT DEV. GROWTH CLASS P - Seeks long-term growth of capital.
Invests at least 65% of assets in securities of small, developing growth
companies.
MANAGERS INTERNATIONAL EQUITY FUND - Seeks long-term capital
appreciation, income is secondary. Normally invests at least 65% of
assets in equity securities of companies domiciled outside of United
States.
GAM INTERNATIONAL FUND CLASS A - The investment objective of each fund
is to seek long-term capital appreciation. The Fund seeks to achieve
this objective by investing in the particular geographic region
established pursuant to its own investment policy.
AIM INCOME FUND CLASS A - Seeks current income consistent with safety of
principal. Invests primarily in investment-grade corporate debt,
convertibles, and U.S. Government debt.
OPPENHEIMER GLOBAL FUND - Seeks capital appreciation. The fund invests
primarily in common stock and convertible securities issued by U.S. and
foreign companies.
-17-
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS
3. INVESTMENTS, CONTINUED
ALLIANCE QUASAR FUND CLASS A - Invests in rapidly growing small-sized
companies that offer the potential for faster than average earnings
growth which will offer possibilities for capital appreciation over the
long term.
PIONEER GROWTH SHARES - Seeks capital appreciation; current income is
incidental
MFS CAPITAL OPPORTUNITIES FUND CLASS A - Seeks capital appreciation and
invests primarily in common stock.
MERRILL LYNCH CAPITAL FUND CLASS D - The investment objective is to
achieve the highest total investment return consistent with prudent
risk.
4. TAX STATUS
The Plan is a prototype which obtained its latest determination letter
on June 29, 1993, in which the Internal Revenue Service stated that the
plan, as then designed, was in compliance with the applicable
requirements of the Internal Revenue Code.
5. TRANSACTIONS WITH PARTIES IN INTEREST
During 1998, the Plan had Trust Agreements with Bank One of Texas and
Merrill Lynch. In addition, participants have the option to invest in
Range Resources Corporation common stock.
-18-
<PAGE> 19
ITEM 27a-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
Form 5500
Plan Number 002
Range Resources Corporation 401(k) Plan
EI# 34-1312571
December 31, 1998
<TABLE>
<CAPTION>
(b) Identity of Issue, (c) Description (e) Current
(a) Borrower, Lessor, or Similar Party of Investment (d) Cost Value
- ------ -------------------------------------- -------------- --------------- ---------------
<S> <C> <C> <C>
* Merrill Lynch Institutional Fund Mutual Fund $ 14,037 $ 14,037
* Range Resources Corporation Stock Mutual Fund 736,114 250,653
* Merrill Lynch Retirement Preservation Trust Mutual Fund 788,485 788,511
* Aim Balanced Mutual Fund 26 800
* Merrill Lynch Growth Fund Class D Mutual Fund 764 383,565
Oppenheimer Global Growth Mutual Fund 452,305 13
* Merrill Lynch Corporate Bond Fund
Intermediate Class D Mutual Fund 12 468,415
Federated High Income Bond Fund Class A Mutual Fund 466,198 1,708
* Merrill Lynch Corporate Bond Fund
Intermediate Class D - GM Mutual Fund 1,712 26
Mass Investors Trust Mutual Fund 26 1,074
Mass Investors Trust - GM Mutual Fund 1,061 70
Aim Blue Chip Fund Class A Mutual Fund 68 5,849
Davis New York Venture Fund Mutual Fund 5,431 1,430,304
* Merrill Lynch S&P 500 Index Mutual Fund 1,405,069 265,063
Lord Abbett Development Growth Class P Mutual Fund 256,949 73
Managers International Equity Fund Mutual Fund 68 89
Gam International Fund Class A Mutual Fund 85 103,851
Aim Income Fund Class A Mutual Fund 112,784 12
Gam International Fund Class A Mutual Fund 13 74
Oppenheimer Global Fund Mutual Fund 73 1,930
Alliance Quasar Fund Class A Mutual Fund 1,974 2,959
Pioneer Growth Shares Mutual Fund 2,689 3,544
MFS Capital Opportunity Fund Class A Mutual Fund 3,485 2,054
* Merrill Lynch Capital Fund Class D Mutual Fund 2,012 2,110,087
Cash Money Market 2,300,917 17,389
Participant notes receivable Loan pool - prime - 101,235
--------------- ---------------
$ 6,552,357 $ 5,953,385
=============== ===============
</TABLE>
* Party-in-interest to the Plan
-19-
<PAGE> 20
ITEM 27d-SCHEDULE OF REPORTABLE TRANSACTIONS
Range Resources Corporation 401(k) Plan
EI# 34-1312571
December 31, 1998
Current Value of Plan - Beginning of Year $ 5,696,106
============
5% of Current Value - Beginning of Year $ 284,805
============
<TABLE>
<CAPTION>
(a) Identity of Number of Number of Purchase
Party Involved (b) Description of Asset Purchases Sales Price
-------------- ------------------------ --------- --------- --------
Category (iii) - A series of transactions in excess of 5% of plan assets
- ------------------------------------------------------------------------
<S> <C> <C> <C>
Merrill Lynch Range Resources Corporation 38 - $ 767,188
Merrill Lynch Range Resources Corporation - 15 $ -
Merrill Lynch Merrill Lynch Retirement Preservation Fund 64 - $ 840,704
Merrill Lynch Merrill Lynch Retirement Preservation Fund - 21 $ -
Merrill Lynch Merrill Lynch Growth Fund Class D 34 - $ 481,812
Merrill Lynch Merrill Lynch Growth Fund Class D - 13 $ -
Merrill Lynch Merrill Lynch Corporate Bond Fund Intermediate Class D 38 - $ 495,793
Merrill Lynch Merrill Lynch Corporate Bond Fund Intermediate Class D - 9 $ -
Merrill Lynch Davis New York Venture Fund 34 - $ 1,451,784
Merrill Lynch Davis New York Venture Fund - 17 $ -
Merrill Lynch Merrill Lynch S&P 500 Index 34 - $ 269,994
Merrill Lynch Merrill Lynch S&P 500 Index - 7 $ -
Merrill Lynch Gam International Fund Class A 30 - $ 117,444
Merrill Lynch Gam International Fund Class A - 6 $ -
Merrill Lynch Merrill Lynch Capital Fund Class D 36 - $ 2,376,730
Merrill Lynch Merrill Lynch Capital Fund Class D - 18 $ -
Fidelity Fidelity Retirement Growth 9 - $ 107,049
Fidelity Fidelity Retirement Growth - 9 $ -
Fidelity Equity Index 11 - $ 82,857
Fidelity Equity Index - 10 $ -
Fidelity Bond Fund 38 - $ 244,108
Fidelity Bond Fund - 23 $ -
Fidelity PLAN 1 - $ 295,743
Fidelity PLAN - 1 $ -
Fidelity Fidelity Contra Fund Inc. 9 - $ 202,262
Fidelity Fidelity Contra Fund Inc. - 12 $ -
Fidelity Fidelity Blue Chip Growth Fund 9 - $ 292,699
Fidelity Fidelity Blue Chip Growth Fund - 10 $ -
Fidelity Equity Fund 33 - $ 257,463
Fidelity Equity Fund - 40 $ -
Fidelity Fidelity Growth Company 10 - $ 112,284
Fidelity Fidelity Growth Company - 11 $ -
Fidelity Lomak Stock 11 - $ 905,723
Fidelity Lomak Stock - 13 $ -
</TABLE>
There were no category (i), (ii) and (iv) transactions during 1997.
-20-
<PAGE> 21
<TABLE>
<CAPTION>
(f) Expense
Incurred
(d) Selling (e) Lease with (g) Cost (h) Carrying (i) Net
Price Rental Transaction of Assets Value (Loss) Gain
----------- -------- ----------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C>
$ - N/A N/A $ 767,188 $ 767,188 $ -
$ 10,615 N/A N/A $ 31,074 $ 10,615 $ (20,459)
$ - N/A N/A $ 840,704 $ 840,704 $ -
$ 52,219 N/A N/A $ 52,219 $ 52,219 $ -
$ - N/A N/A $ 481,812 $ 481,812 $ -
$ 25,002 N/A N/A $ 29,506 $ 25,002 $ (4,504)
$ - N/A N/A $ 495,793 $ 495,793 $ -
$ 29,946 N/A N/A $ 29,718 $ 29,946 $ 228
$ - N/A N/A $ 1,451,784 $ 1,451,784 $ -
$ 45,918 N/A N/A $ 46,715 $ 45,918 $ (797)
$ - N/A N/A $ 269,994 $ 269,994 $ -
$ 13,096 N/A N/A $ 13,045 $ 13,096 $ 51
$ - N/A N/A $ 117,444 $ 117,444 $ -
$ 4,071 N/A N/A $ 4,660 $ 4,071 $ (589)
$ - N/A N/A $ 2,376,730 $ 2,376,730 $ -
$ 67,981 N/A N/A $ 75,812 $ 67,981 $ (7,831)
$ - N/A N/A $ 107,049 $ 107,049 $ -
$ 269,024 N/A N/A $ - $ 249,542 $ 19,482
$ - N/A N/A $ 82,857 $ 82,157 $ -
$ 246,604 N/A N/A $ - $ 210,802 $ 35,802
$ - N/A N/A $ 244,108 $ 244,108 $ -
$ 681,502 N/A N/A $ - $ 682,167 $ (665)
$ - N/A N/A $ 295,743 $ 295,743 $ -
$ 792,085 N/A N/A $ - $ 792,085 $ -
$ - N/A N/A $ 202,262 $ 202,262 $ -
$ 519,168 N/A N/A $ - $ 465,361 $ 53,807
$ - N/A N/A $ 292,699 $ 292,699 $ -
$ 748,274 N/A N/A $ - $ 659,791 $ 88,483
$ - N/A N/A $ 257,463 $ 257,463 $ -
$ 2,585,834 N/A N/A $ - $ 2,044,739 $ 541,095
$ - N/A N/A $ 112,284 $ 112,284 $ -
$ 456,215 N/A N/A $ - $ 423,060 $ 33,155
$ - N/A N/A $ 905,723 $ 905,723 $ -
$ 260,010 N/A N/A $ - $ 257,470 $ 2,540
</TABLE>
-21-
<PAGE> 22
- --------------------------------------------------------------------------------
RANGE RESOURCES CORPORATION
401(k) PLAN AND TRUST
FORM 11-K
December 31, 1998
- --------------------------------------------------------------------------------
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustee has duly caused this annual report to be signed on their behalf by the
undersigned, thereunto duly authorized.
RANGE RESOURCES CORPORATION
401(k) PLAN AND TRUST
June 30, 1998 BY: /s/ Thomas W. Stoelk
---------------------
Trustee
- --------------------------------------------------------------------------------
-22-
<PAGE> 23
Exhibit Index
-------------
Number Exhibit Page
- ------ ------- ----
23* Consent of independent certified 24
public accountants
* included herewith
-23-
<PAGE> 1
Exhibit 23
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We consent to the inclusion in the Form 11-K of our report dated June 10, 1999,
on the audit of the financial statements of the Range Resources 401(k) Plan as
of December 31, 1998 and 1997, and for the years then ended, and for the
supplemental schedules as of and for the year ended December 31, 1998.
MEADEN & MOORE, LTD.
CERTIFIED PUBLIC ACCOUNTANTS
CLEVELAND, OHIO
JUNE 30, 1999
- 24 -
