Yahoo Finance Range Resources (RRC) Tops Earnings & Revenue Estimates in Q4
Range Resources Corporation RRC reported fourth-quarter adjusted earnings of $1.26 per share, beating the Zacks Consensus Estimate of $1.12. The bottom line significantly improved from the prior-year quarter’s earnings of 96 cents per share.
Total quarterly revenues of $1,630 million surpassed the Zacks Consensus Estimate of $1,019 million. The top line also improved from the prior-year quarter’s $1,567 million.
The strong quarterly results were driven by higher natural gas-equivalent production volumes.
Range Resources Corporation Price, Consensus and EPS Surprise
Range Resources Corporation price-consensus-eps-surprise-chart | Range Resources Corporation Quote
Operational Performance
In fourth-quarter 2022, the company’s production averaged 2,204.5 million cubic feet equivalent per day, up slightly from the prior-year period. Natural gas contributed 69% to total production, while NGLs and oil accounted for the rest.
Oil production declined 23% from the year-ago period, while NGL output increased 6%. Natural gas production declined.
Its total price realization (excluding derivative settlements and before third-party transportation costs) averaged $5.36 per thousand cubic feet equivalent (Mcfe), down 5% year over year. Natural gas prices rose 5% on a year-over-year basis to $5.52 per Mcf. NGL prices declined 25%, while oil prices increased 8%.
Costs & Expenses
Total costs and expenses declined to $632.6 million from $657 million in the year-ago quarter. Total transportation, gathering, processing and compression costs, as well as exploration costs, declined in the reported quarter.
Capital Expenditure & Balance Sheet
In the fourth quarter, the company’s drilling and completion expenditure was $99.9 million. An amount of $9.5 million was used in acreage and gathering facilities.
At the quarter end, it had total debt of $1,842 million.
Outlook
For 2023, Range Resources expects total production of 2.12-2.16 billion cubic feet equivalent per day (Bcfe/d), with 30% attributed to liquid production.
RRC anticipates capital spending of $570-$615 million for the year. Direct operating expenses are projected to be 11-13 cents per Mcfe, while exploration expenses are estimated at $22-$28 million.
Zacks Rank & Stocks to Consider
Range Resources currently carries a Zacks Rank #5 (Strong Buy).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco LP’s SUN fourth-quarter 2022 earnings of 42 cents per unit missed the Zacks Consensus Estimate of 77 cents. Weak quarterly earnings resulted from the higher total cost of sales and operating expenses.
Sunoco has witnessed upward estimate revisions for 2023 earnings in the past 30 days. For 2023, Sunoco expects adjusted EBITDA of $850-$900 million.
RPC Inc.’s RES adjusted earnings of 41 cents per share in the fourth quarter beat the Zacks Consensus Estimate of 30 cents. The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.
As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Valero Energy Corporation’s VLO fourth-quarter 2022 adjusted earnings of $8.45 per share beat the Zacks Consensus Estimate of $7.45 per share. The strong quarterly results were driven by increased refinery throughput volumes and a higher refining margin.
Valero can benefit from the Gulf Coast export volumes, as fuel demand recovery gets support from Asia economies. The Gulf Coast contributed 59.4% to the total throughput volume in the fourth quarter of 2022.
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
RPC, Inc. (RES) : Free Stock Analysis Report
