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Range Resources (RRC) Q2 Earnings Beat on Higher Production
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Range Resources Corporation (RRC - Free Report) reported second-quarter 2024 adjusted earnings of 46 cents per share, which beat the Zacks Consensus Estimate of 36 cents. The bottom line also improved from the prior-year quarter’s level of 30 cents.
Total quarterly revenues of $641 million beat the Zacks Consensus Estimate of $629 million. The top line also increased from the prior-year quarter’s figure of $590 million.
Strong quarterly results were primarily driven by higher gas equivalent production and lower costs and expenses.
Range Resources Corporation Price, Consensus and EPS Surprise
The company’s production averaged 2,152.9 million cubic feet equivalent per day (Mcfe/d), higher than the prior-year period’s level. The figure also beat our projection of 2,107.2 Mcfe/d. Natural gas accounted for approximately 69% of the company’s total production, while NGLs and oil contributed to the rest.
Natural gas production increased 5% year over year. Oil production decreased 10%, while NGL output remained the same.
Total price realization (excluding derivative settlements and before third-party transportation costs) averaged $2.44 per Mcfe, down 1% year over year. Notably, price realization was lower than our estimate of $2.73 per Mcfe. Natural gas price declined 11% on a year-over-year basis to $1.54 per Mcf. NGL price increased 13%, while oil price rose 6%.
Costs & Expenses
Total costs and expenses declined 12% year over year to $520 million. The reported figure was lower than our expectation of $555 million. Transportation, gathering, processing and compression costs, which form a major part of the total costs, increased to $281.5 million from $268.2 million in the prior-year quarter.
Capital Expenditure & Balance Sheet
The company’s drilling and completion expenditure amounted to $162 million in the reported quarter. An amount of $14 million was used for acreage as well.
RRC had a total debt of $1,088.7 million at the end of the reported quarter.
Outlook
Range Resources reiterated its total production guidance for 2024 between 2.12 and 2.16 billion cubic feet equivalent per day, with more than 30% of this attributed to liquids production. It also estimated a capital budget of $620-$670 million for the year.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
VAALCO Energyis an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.
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Range Resources (RRC) Q2 Earnings Beat on Higher Production
Range Resources Corporation (RRC - Free Report) reported second-quarter 2024 adjusted earnings of 46 cents per share, which beat the Zacks Consensus Estimate of 36 cents. The bottom line also improved from the prior-year quarter’s level of 30 cents.
Total quarterly revenues of $641 million beat the Zacks Consensus Estimate of $629 million. The top line also increased from the prior-year quarter’s figure of $590 million.
Strong quarterly results were primarily driven by higher gas equivalent production and lower costs and expenses.
Range Resources Corporation Price, Consensus and EPS Surprise
Range Resources Corporation price-consensus-eps-surprise-chart | Range Resources Corporation Quote
Operational Performance
The company’s production averaged 2,152.9 million cubic feet equivalent per day (Mcfe/d), higher than the prior-year period’s level. The figure also beat our projection of 2,107.2 Mcfe/d. Natural gas accounted for approximately 69% of the company’s total production, while NGLs and oil contributed to the rest.
Natural gas production increased 5% year over year. Oil production decreased 10%, while NGL output remained the same.
Total price realization (excluding derivative settlements and before third-party transportation costs) averaged $2.44 per Mcfe, down 1% year over year. Notably, price realization was lower than our estimate of $2.73 per Mcfe. Natural gas price declined 11% on a year-over-year basis to $1.54 per Mcf. NGL price increased 13%, while oil price rose 6%.
Costs & Expenses
Total costs and expenses declined 12% year over year to $520 million. The reported figure was lower than our expectation of $555 million. Transportation, gathering, processing and compression costs, which form a major part of the total costs, increased to $281.5 million from $268.2 million in the prior-year quarter.
Capital Expenditure & Balance Sheet
The company’s drilling and completion expenditure amounted to $162 million in the reported quarter. An amount of $14 million was used for acreage as well.
RRC had a total debt of $1,088.7 million at the end of the reported quarter.
Outlook
Range Resources reiterated its total production guidance for 2024 between 2.12 and 2.16 billion cubic feet equivalent per day, with more than 30% of this attributed to liquids production. It also estimated a capital budget of $620-$670 million for the year.
Zacks Rank and Key Picks
Currently, RRC carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) , VAALCO Energy (EGY - Free Report) and Energy Transfer LP (ET - Free Report) . SM Energy presently sports a Zacks Rank #1 (Strong Buy), while VAALCO and Energy Transfer carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
VAALCO Energyis an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.