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Why Is Range Resources (RRC) Down 3.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for Range Resources (RRC - Free Report) . Shares have lost about 3.6% 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 Q2 Earnings Beat on Higher Production
Range Resources Corporation 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -7.73% due to these changes.
VGM Scores
Currently, Range Resources has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Range Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Range Resources (RRC) Down 3.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Range Resources (RRC - Free Report) . Shares have lost about 3.6% 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 Q2 Earnings Beat on Higher Production
Range Resources Corporation 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -7.73% due to these changes.
VGM Scores
Currently, Range Resources has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Range Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.