Back to top

Image: Shutterstock

What's in Store for Range Resources (RRC) in Q2 Earnings?

Read MoreHide Full Article

Range Resources Corporation (RRC - Free Report) is set to report second-quarter 2024 earnings on Jul 23, after the closing bell.

In the last reported quarter, the company’s earnings of 69 cents per share beat the Zacks Consensus Estimate of 56 cents, backed by higher-than-projected gas equivalent production and lower total costs and expenses. RRC’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 37.9%. This is depicted in the graph below.

Estimate Trend

The Zacks Consensus Estimate for second-quarter loss per share of 39 cents has witnessed four downward revisions and no upward movement over the past 30 days. The estimated figure suggests an improvement of 30% from the year-ago quarter’s reported number.

The Zacks Consensus Estimate for second-quarter revenues of $626.3 million indicates a 6.8% increase from the year-ago reported figure.

Factors to Consider

Based on data from the U.S. Energy Information Administration, spot prices for Henry Hub natural gas averaged $1.60, $2.12, and $2.53 per million Btu in April, May and June, respectively, compared to $2.16, $2.15 and $2.18 in the same months last year. Prices were lower year over year in the first two months of the quarter but improved in the final month.

On the production front, we expect the company, having a strong footprint in the prolific Appalachian Basin, to produce 1.3% year-over-year higher natural gas equivalent volumes.

While commodity prices did not reach the levels of more than $6 per million Btu seen in the June quarter of 2022, increased production is likely to have mitigated some of the negative impacts.

Earnings Whispers

Our proven model does not indicate an earnings beat for RRC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: RRC’s Earnings ESP is -4.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks to Consider

Here are three firms that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

EOG Resources Inc (EOG - Free Report) currently has an Earnings ESP of +0.61% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

EOG is scheduled to release second-quarter earnings on Aug 1. The Zacks Consensus Estimate for EOG’s earnings is pegged at $3.01 per share, suggesting an almost 21% increase from the prior-year reported figure.

Marathon Oil Corporation (MRO - Free Report) presently has an Earnings ESP of +3.89% and a Zacks Rank #3.

Marathon Oil is scheduled to release second-quarter earnings on Aug 7. The Zacks Consensus Estimate for MRO’s earnings is pegged at 72 cents per share, suggesting a 50% increase from the prior-year reported figure.

Baker Hughes (BKR - Free Report) currently has an Earnings ESP of +1.59% and a Zacks Rank #3.

Baker Hughes is scheduled to release second-quarter earnings on Jul 25. The Zacks Consensus Estimate for BKR’s earnings is pegged at 49 cents per share, suggesting a 25.6% improvement from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in