Yahoo Finance Range Resources (RRC) Up 16.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Range Resources (RRC). Shares have added about 16.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Range Resources due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Range Resources Tops Earnings Estimate in Q1
Range Resources reported first-quarter 2023 adjusted earnings of 99 cents per share, beating the Zacks Consensus Estimate of 73 cents. However, the bottom line declined from the prior-year quarter’s earnings of $1.18 per share.
Total quarterly revenues of $853 million surpassed the Zacks Consensus Estimate of $823 million. The top line also declined from the prior-year quarter’s $987 million.
Better-than-expected quarterly results were driven by higher natural gas-equivalent production volumes. The positives were partially offset by lower realizations of commodity prices.
Operational Performance
In first-quarter 2023, the company’s production averaged 2,142.5 million cubic feet equivalent per day, up 3% from the prior-year period. Natural gas contributed 69.3% to total production, while NGLs and oil accounted for the rest.
Oil production declined 22% from the year-ago period, while NGL output increased 10%. Natural gas production increased 2%.
Its total price realization (excluding derivative settlements and before third-party transportation costs) averaged $3.82 per thousand cubic feet equivalent (Mcfe), down 31% year over year. Natural gas prices declined 31% on a year-over-year basis to $3.30 per Mcf. NGL prices declined 31%, while oil prices fell 24%.
Costs & Expenses
Total costs and expenses declined to $583 million from $753.6 million in the year-ago quarter. Total transportation, gathering, processing and compression costs declined in the reported quarter. However, exploration costs increased in the quarter.
Capital Expenditure & Balance Sheet
In the first quarter, the company’s drilling and completion expenditure was $139 million. An amount of $12 million was used in acreage and gathering facilities.
At the quarter end, it had total debt of $1,833.2 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -5.76% due to these changes.
VGM Scores
Currently, Range Resources has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, 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 B. 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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Range Resources Corporation (RRC) : Free Stock Analysis Report
