A month has gone by since the last earnings report for Range Resources (RRC Quick QuoteRRC - Free Report) . Shares have lost about 2.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Range Resources due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Range Resources Q3 Earnings Beat Estimates

Range Resources reported third-quarter 2023 adjusted earnings of 46 cents per share, which beat the Zacks Consensus Estimate of 27 cents. However, the bottom line declined from the prior-year quarter’s level of $1.37.

Total quarterly revenues of $649 million beat the Zacks Consensus Estimate of $619 million. The top line, however, declined from the prior-year quarter’s figure of $1104 million.

Better-than-expected quarterly results were driven by lower total costs and expenses. However, lower realizations of commodity prices partially offset the positives.

Operational Performance

The company’s production averaged 2,123 million cubic feet equivalent per day (Mcfe/d) in the reported quarter, down 0.4% from the prior-year period’s level. However, the figure beat our estimated total production of 2110.7 Mcfe/d. Natural gas accounted for 68.3% of total production, while NGLs and oil contributed to the rest.

Oil production declined 10% year over year, while NGL output increased 6%. Natural gas production decreased 3%.

Total price realization (excluding derivative settlements and before third-party transportation costs) averaged $2.7 Mcfe, down 63% year over year. Notably, price realization was even lower than our estimate of $2.98 Mcfe. Natural gas prices declined 76% on a year-over-year basis to $1.85 per Mcf. NGL prices declined 31%, while oil prices fell 17%.

Costs & Expenses

Total costs and expenses declined to $544.6 million from $677.8 million recorded in the year-ago quarter. The reported figure came in lower than our expectation of $615.8 million. Transportation, gathering, processing and compression costs, which form a major part of the total costs, came down to $277.2 million from $323 million in the prior-year period.

Capital Expenditure & Balance Sheet

The company’s drilling and completion expenditure amounted to $146 million in the reported quarter. An amount of $5 million was used in acreage and gathering facilities.

RRC had a total debt of $1,773.4 million at the end of the reported quarter.

Outlook

Range Resources reiterated its projection for 2023 total production in the range of 2.12-2.16 billion cubic feet equivalent per day, with 30% attributed to liquid production.

RRC estimated a capital budget of $570-$615 million for the year. Direct operating expenses are estimated in the range of 11-13 cents per Mcfe, while exploration expenses are projected in the band of $22-$28 million.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

VGM Scores

At this time, Range Resources has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Range Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.