We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Range Resources (RRC) Misses on Q2 Earnings, Revenues Beat
Read MoreHide Full Article
Range Resources Corporation (RRC - Free Report) reported second-quarter 2017 adjusted earnings of 6 cents per share which lagged the Zacks Consensus Estimate of 8 cents. Notably, the company incurred a loss of 14 cents per share in the year-ago quarter. The improvement is mainly due to an increase in production and higher price realizations, partially offset by higher expenses.
Total revenue of $673.1 million beat the Zacks Consensus Estimate of $525.9 million and also jumped 561% year over year from $101.8 million.
Range Resources Corporation Price, Consensus and EPS Surprise
The company’s second-quarter production averaged almost 1,944.5 million cubic feet equivalent per day (MMcfe/d). Natural gas made up for 67.5% of the total production, while natural gas liquids (NGLs) and oil accounted for the remaining 32.5%. Total production volume improved 37% from the year-earlier quarter due to the company’s highly successful drilling program.
On a year-over-year basis, oil production increased 24%, while NGL production rose 24%. Moreover, natural gas production jumped 44% year over year.
The company’s total price realization (including the effects of hedges and derivative settlements) averaged $1.80 per Mcfe, up 25% year over year. Of this, NGL prices surged 21% to $6.88 per barrel while crude oil prices rose 21% to $48.82 per barrel, both on a year-over-year basis. Natural gas prices were up 28% year over year to $1.74 per Mcf.
Expenses
Total second-quarter 2017 expense was $545.9 million, up 20% year over year.
Financials
At the end of the quarter, the company had long-term debt of approximately $3,848.6 million with a debt-to-capitalization ratio of 40.5%. The company incurred expenditures of $280 million in the second quarter for drilling and the completion of 35 wells.
Second-Quarter Price Performance
During the April–June quarter of 2017, Range Resources’ shares underperformed the industry. During the aforesaid period, the company’s shares have lost 20.4% compared with the industry’s increase of 2.7%.
Guidance
For the third quarter of 2017, the company estimates production of 1.97 billion cubic feet equivalent (Bcfe) per day. Fourth-quarter production is estimated at 2.2 Bcfe per day, up 17% from prior-year quarter. This will result in annual production growth of 30%, which has decreased from earlier guidance of 33–35%. The decline is mainly due to early 2017 production results from North Louisiana, along with non-recurring timing delays on several well pads in southwest Pennsylvania.
The company’s 2017 capital budget is set at $1.15 billion. It is to be noted that almost 67% of the budget will be allocated for the Marcellus region, while the remaining will be spent for North Louisiana.
Global Partners delivered a positive earnings surprise of 1200.00% in the preceding quarter. The company beat estimates in three of the trailing four quarters with an average positive earnings surprise of 415.30%.
Braskem delivered a positive earnings surprise of 107.79% in the quarter ending September 2016.
TransCanada delivered a negative earnings surprise of 7.58% in the preceding quarter. It surpassed estimates in two of the trailing four quarters with an average positive earnings surprise of 1.06%.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future. Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Range Resources (RRC) Misses on Q2 Earnings, Revenues Beat
Range Resources Corporation (RRC - Free Report) reported second-quarter 2017 adjusted earnings of 6 cents per share which lagged the Zacks Consensus Estimate of 8 cents. Notably, the company incurred a loss of 14 cents per share in the year-ago quarter. The improvement is mainly due to an increase in production and higher price realizations, partially offset by higher expenses.
Total revenue of $673.1 million beat the Zacks Consensus Estimate of $525.9 million and also jumped 561% year over year from $101.8 million.
Range Resources Corporation Price, Consensus and EPS Surprise
Range Resources Corporation Price, Consensus and EPS Surprise | Range Resources Corporation Quote
Operational Performance
The company’s second-quarter production averaged almost 1,944.5 million cubic feet equivalent per day (MMcfe/d). Natural gas made up for 67.5% of the total production, while natural gas liquids (NGLs) and oil accounted for the remaining 32.5%. Total production volume improved 37% from the year-earlier quarter due to the company’s highly successful drilling program.
On a year-over-year basis, oil production increased 24%, while NGL production rose 24%. Moreover, natural gas production jumped 44% year over year.
The company’s total price realization (including the effects of hedges and derivative settlements) averaged $1.80 per Mcfe, up 25% year over year. Of this, NGL prices surged 21% to $6.88 per barrel while crude oil prices rose 21% to $48.82 per barrel, both on a year-over-year basis. Natural gas prices were up 28% year over year to $1.74 per Mcf.
Expenses
Total second-quarter 2017 expense was $545.9 million, up 20% year over year.
Financials
At the end of the quarter, the company had long-term debt of approximately $3,848.6 million with a debt-to-capitalization ratio of 40.5%. The company incurred expenditures of $280 million in the second quarter for drilling and the completion of 35 wells.
Second-Quarter Price Performance
During the April–June quarter of 2017, Range Resources’ shares underperformed the industry. During the aforesaid period, the company’s shares have lost 20.4% compared with the industry’s increase of 2.7%.
Guidance
For the third quarter of 2017, the company estimates production of 1.97 billion cubic feet equivalent (Bcfe) per day. Fourth-quarter production is estimated at 2.2 Bcfe per day, up 17% from prior-year quarter. This will result in annual production growth of 30%, which has decreased from earlier guidance of 33–35%. The decline is mainly due to early 2017 production results from North Louisiana, along with non-recurring timing delays on several well pads in southwest Pennsylvania.
The company’s 2017 capital budget is set at $1.15 billion. It is to be noted that almost 67% of the budget will be allocated for the Marcellus region, while the remaining will be spent for North Louisiana.
Zacks Rank
Currently, Range Resources carries a Zacks Rank #1 (Strong Buy). Some other stocks in the same space include Global Partners LP (GLP - Free Report) , Braskem S.A. (BAK - Free Report) and TransCanada Corp (TRP - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
Global Partners delivered a positive earnings surprise of 1200.00% in the preceding quarter. The company beat estimates in three of the trailing four quarters with an average positive earnings surprise of 415.30%.
Braskem delivered a positive earnings surprise of 107.79% in the quarter ending September 2016.
TransCanada delivered a negative earnings surprise of 7.58% in the preceding quarter. It surpassed estimates in two of the trailing four quarters with an average positive earnings surprise of 1.06%.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>