Yahoo Finance Range Resources (RRC) Q1 Earnings Beat on Gas Production
Range Resources Corporation RRC reported first-quarter 2024 adjusted earnings of 69 cents per share, which beat the Zacks Consensus Estimate of 56 cents. However, the bottom line declined from the prior-year quarter’s 99 cents per share.
Total quarterly revenues of $718 million beat the Zacks Consensus Estimate of $689 million. The top line, however, declined from the prior-year quarter’s figure of $853 million.
Better-than-expected quarterly results were driven by higher-than-projected gas equivalent production and lower total costs and expenses. However, lower realizations of commodity prices partially offset the positives.
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 2,141.5 million cubic feet equivalent per day (Mcfe/d) in the reported quarter, almost in line with the prior-year period. The figure beat our projection of 2,121.6 Mcfe/d. Natural gas accounted for 68% of total production, while NGLs and oil contributed to the rest.
Oil production increased 5% year over year, while NGL output jumped 4%. Natural gas production, however, decreased 2% during the same time frame.
Total price realization (excluding derivative settlements and before third-party transportation costs) averaged $2.91 Mcfe, down 24% year over year. Notably, price realization was higher than our estimate of $2.74 Mcfe. Natural gas prices declined 38% on a year-over-year basis to $2.05 per Mcf. NGL prices declined 5%, while oil prices fell 3%.
Costs & Expenses
Total costs and expenses declined 8% year over year to $535 million. The reported figure was lower than our expectation of $571 million. Transportation, gathering, processing and compression costs, which form a major part of the total costs, increased to $290.9 million from $285.5 million in the prior-year quarter.
Capital Expenditure & Balance Sheet
The company’s drilling and completion expenditure amounted to $152 million in the reported quarter. An amount of $18 million was used for acreage, infrastructure and other investments.
RRC had a total long-term debt of $1,755.7 million at the end of the reported quarter.
Outlook
Range Resources forecasts its total production for 2024 in the range of 2.12-2.16 billion cubic feet equivalent per day, with more than 30% of this attributed to liquids production. RRC estimated a capital budget of $620-$670 million for the year.
Zacks Rank & Stocks to Consider
RRC currently carries a Zacks Rank #3 (Hold). Some better-ranked energy companies are Sunoco LP SUN, PBF Energy Inc. PBF and Valero Energy Corporation VLO. All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sunoco, the leading independent fuel distributor in the United States, has a stable business model and relatively lower exposure to commodity price volatility. This is because the partnership distributes fuel to branded distributors under long-term contracts.
PBF Energy is also on a solid footing to gain from rising gasoline demand since it is a leading North American independent refiner. Apart from having a conservative balance sheet and strong liquidity, PBF Energy is investing in lucrative projects that may aid the company in generating significant returns for shareholders.
Valero Energy is a best-in-class oil refiner involved in the production of fuels and products that can meet the demands of modern life. Its refineries are located across the United States, Canada and the U.K. A total of 15 petroleum refineries, wherein Valero has ownership interests, have a combined throughput capacity of 3.2 million barrels per day.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Range Resources Corporation (RRC) : Free Stock Analysis Report
Valero Energy Corporation (VLO) : Free Stock Analysis Report
Sunoco LP (SUN) : Free Stock Analysis Report
PBF Energy Inc. (PBF) : Free Stock Analysis Report
