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Range Resources (RRC) Q1 Earnings Beat on Higher Production
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Range Resources Corporation (RRC - Free Report) reported first-quarter 2023 adjusted earnings of 96 cents per share, beating the Zacks Consensus Estimate of 73 cents. However, the bottom line declined from the prior-year quarter’s earnings of $1.18 per share.
Total quarterly revenues of $853 million surpassed the Zacks Consensus Estimate of $823 million. The top line also declined from the prior-year quarter’s $987 million.
Better-than-expected quarterly results were driven by higher natural gas-equivalent production volumes. The positives were partially offset by lower realizations of commodity prices.
Range Resources Corporation Price, Consensus and EPS Surprise
In first-quarter 2023, the company’s production averaged 2,142.5 million cubic feet equivalent per day, up 3% from the prior-year period. Natural gas contributed 69.3% to total production, while NGLs and oil accounted for the rest.
Oil production declined 22% from the year-ago period, while NGL output increased 10%. Natural gas production increased 2%.
Its total price realization (excluding derivative settlements and before third-party transportation costs) averaged $3.82 per thousand cubic feet equivalent (Mcfe), down 31% year over year. Natural gas prices declined 31% on a year-over-year basis to $3.30 per Mcf. NGL prices declined 31%, while oil prices fell 24%.
Costs & Expenses
Total costs and expenses declined to $583 million from $753.6 million in the year-ago quarter. Total transportation, gathering, processing and compression costs declined in the reported quarter. However, exploration costs increased in the quarter.
Capital Expenditure & Balance Sheet
In the first quarter, the company’s drilling and completion expenditure was $139 million. An amount of $12 million was used in acreage and gathering facilities.
At the quarter end, it had total debt of $1,833.2 million.
Outlook
For 2023, Range Resources reiterated its total production of 2.12-2.16 billion cubic feet equivalent per day (Bcfe/d), with 30% attributed to liquid production.
RRC gave its capital budget of $570-$615 million for the year. Direct operating expenses are projected to be 11-13 cents per Mcfe, while exploration expenses are estimated at $22-$28 million.
Zacks Rank & Stocks to Consider
Range Resources currently carries a Zacks Rank #5 (Strong Buy).
Sunoco LP (SUN - Free Report) is scheduled to release first-quarter results on May 2. Valued at $4.5 billion, Sunoco has gained 18.6% in a year compared with 2.9% growth of the composite stocks belonging to the industry.
Sunoco has an Earnings ESP of +6.15%. The Zacks Consensus Estimate for SUN’s earnings is pegged at $1.22 per share, suggesting a decline from the prior-year reported figure.
Cactus Inc. (WHD - Free Report) is scheduled to release first-quarter results on May 9. Compared with composite stocks belonging to the industry, Cactus has significantly lower exposure to debt capital.
Cactus has an Earnings ESP of +1.79%. The Zacks Consensus Estimate for WHD’s earnings is pegged at 56 cents per share, suggesting an increase from the prior-year reported figure.
Marathon Petroleum Corporation (MPC - Free Report) is scheduled to release earnings on May 2. Valued at around $55 billion, Marathon Petroleum has gained 51.6% in a year compared with 16.1% growth of the composite stocks belonging to the industry.
Marathon Petroleum has an Earnings ESP of +1.19%. The Zacks Consensus Estimate for MPC’s earnings is pegged at $5.35 per share, suggesting an increase from the prior-year reported figure.
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Range Resources (RRC) Q1 Earnings Beat on Higher Production
Range Resources Corporation (RRC - Free Report) reported first-quarter 2023 adjusted earnings of 96 cents per share, beating the Zacks Consensus Estimate of 73 cents. However, the bottom line declined from the prior-year quarter’s earnings of $1.18 per share.
Total quarterly revenues of $853 million surpassed the Zacks Consensus Estimate of $823 million. The top line also declined from the prior-year quarter’s $987 million.
Better-than-expected quarterly results were driven by higher natural gas-equivalent production volumes. The positives were partially offset by lower realizations of commodity prices.
Range Resources Corporation Price, Consensus and EPS Surprise
Range Resources Corporation price-consensus-eps-surprise-chart | Range Resources Corporation Quote
Operational Performance
In first-quarter 2023, the company’s production averaged 2,142.5 million cubic feet equivalent per day, up 3% from the prior-year period. Natural gas contributed 69.3% to total production, while NGLs and oil accounted for the rest.
Oil production declined 22% from the year-ago period, while NGL output increased 10%. Natural gas production increased 2%.
Its total price realization (excluding derivative settlements and before third-party transportation costs) averaged $3.82 per thousand cubic feet equivalent (Mcfe), down 31% year over year. Natural gas prices declined 31% on a year-over-year basis to $3.30 per Mcf. NGL prices declined 31%, while oil prices fell 24%.
Costs & Expenses
Total costs and expenses declined to $583 million from $753.6 million in the year-ago quarter. Total transportation, gathering, processing and compression costs declined in the reported quarter. However, exploration costs increased in the quarter.
Capital Expenditure & Balance Sheet
In the first quarter, the company’s drilling and completion expenditure was $139 million. An amount of $12 million was used in acreage and gathering facilities.
At the quarter end, it had total debt of $1,833.2 million.
Outlook
For 2023, Range Resources reiterated its total production of 2.12-2.16 billion cubic feet equivalent per day (Bcfe/d), with 30% attributed to liquid production.
RRC gave its capital budget of $570-$615 million for the year. Direct operating expenses are projected to be 11-13 cents per Mcfe, while exploration expenses are estimated at $22-$28 million.
Zacks Rank & Stocks to Consider
Range Resources currently carries a Zacks Rank #5 (Strong Buy).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco LP (SUN - Free Report) is scheduled to release first-quarter results on May 2. Valued at $4.5 billion, Sunoco has gained 18.6% in a year compared with 2.9% growth of the composite stocks belonging to the industry.
Sunoco has an Earnings ESP of +6.15%. The Zacks Consensus Estimate for SUN’s earnings is pegged at $1.22 per share, suggesting a decline from the prior-year reported figure.
Cactus Inc. (WHD - Free Report) is scheduled to release first-quarter results on May 9. Compared with composite stocks belonging to the industry, Cactus has significantly lower exposure to debt capital.
Cactus has an Earnings ESP of +1.79%. The Zacks Consensus Estimate for WHD’s earnings is pegged at 56 cents per share, suggesting an increase from the prior-year reported figure.
Marathon Petroleum Corporation (MPC - Free Report) is scheduled to release earnings on May 2. Valued at around $55 billion, Marathon Petroleum has gained 51.6% in a year compared with 16.1% growth of the composite stocks belonging to the industry.
Marathon Petroleum has an Earnings ESP of +1.19%. The Zacks Consensus Estimate for MPC’s earnings is pegged at $5.35 per share, suggesting an increase from the prior-year reported figure.