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Range Resources (RRC) Loss Narrower Than Expected in Q3
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Range Resources Corp.’s (RRC - Free Report) third-quarter 2016 adjusted loss came in at 23 cents a share, narrower than the Zacks Consensus Estimate of loss of 27 cents. The company had reported loss of 5 cents a share in the year-earlier quarter.
Total revenue of $413.2 million beat the Zacks Consensus Estimate of $345.3 million. However, the top line declined 14% year over year from $480 million.
Operational Performance
The company’s third-quarter production averaged almost 1,508 million cubic feet equivalent per day (MMcfe/d). Natural gas made up for 67% of the total production, while natural gas liquids (NGLs) and oil accounted for the remaining 33%. Total production volume improved 4% from the year-earlier quarter due to the company’s highly successful drilling program.
On a year-over-year basis, oil production decreased 15%, whereas NGL rose 35%. Natural gas production decreased 4% year over year.
The company’s total price realization (including the effects of hedges and derivative settlements) averaged $1.58 per Mcfe, down 28% year over year. Of this, NGL prices decreased 7% to $6.60 per barrel, crude oil prices were down 34% to $49.97 per barrel and natural gas prices plunged 24% to $1.43 per Mcf, all on a year-over-year basis.
At the end of the quarter, long-term debt was approximately $3,826.7 million. The company incurred drilling expenditures of $90 million in the third quarter to drill 39 wells. In addition, $7.4 million was spent for acreage purchases, $6.3 million as exploration expense, and $0.3 million on gas gathering systems, during the quarter.
Guidance
For the fourth quarter, the company estimates production of 1.850 billion cubic feet equivalent (Bcfe) per day, with liquid comprising 31–33%.
For 2016, the company has reaffirmed its production guidance at the upper end of its earlier projection. Production is expected in the range of 1,410–1,420 MMcfe/d after completion of all asset sales. Capital budget for the year is $495 million.
Zacks Rank & Stocks to Consider
Currently, Range Resources carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Enviva Partners, LP (EVA - Free Report) , Helix Energy Solution Group (HLX - Free Report) and EQT Midstream Partners . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enviva Partners has a mixed earnings surprise history. The partnership posted positive earnings surprise in two of the last four quarters. It reported a positive earnings surprise of 20.51% in the preceding quarter.
Helix Energy posted a positive earnings surprise of 150.00% in the preceding quarter. It reported a positive earnings surprise in all of the four preceding quarters.
In the last reported quarter, EQT Midstream Partners delivered a positive earnings surprise of 6.72%. Coming to the earnings surprise history, the partnership beat estimates in three of the last four quarters.
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Range Resources (RRC) Loss Narrower Than Expected in Q3
Range Resources Corp.’s (RRC - Free Report) third-quarter 2016 adjusted loss came in at 23 cents a share, narrower than the Zacks Consensus Estimate of loss of 27 cents. The company had reported loss of 5 cents a share in the year-earlier quarter.
Total revenue of $413.2 million beat the Zacks Consensus Estimate of $345.3 million. However, the top line declined 14% year over year from $480 million.
Operational Performance
The company’s third-quarter production averaged almost 1,508 million cubic feet equivalent per day (MMcfe/d). Natural gas made up for 67% of the total production, while natural gas liquids (NGLs) and oil accounted for the remaining 33%. Total production volume improved 4% from the year-earlier quarter due to the company’s highly successful drilling program.
On a year-over-year basis, oil production decreased 15%, whereas NGL rose 35%. Natural gas production decreased 4% year over year.
The company’s total price realization (including the effects of hedges and derivative settlements) averaged $1.58 per Mcfe, down 28% year over year. Of this, NGL prices decreased 7% to $6.60 per barrel, crude oil prices were down 34% to $49.97 per barrel and natural gas prices plunged 24% to $1.43 per Mcf, all on a year-over-year basis.
RANGE RESOURCES Price, Consensus and EPS Surprise
RANGE RESOURCES Price, Consensus and EPS Surprise | RANGE RESOURCES Quote
Financials
At the end of the quarter, long-term debt was approximately $3,826.7 million. The company incurred drilling expenditures of $90 million in the third quarter to drill 39 wells. In addition, $7.4 million was spent for acreage purchases, $6.3 million as exploration expense, and $0.3 million on gas gathering systems, during the quarter.
Guidance
For the fourth quarter, the company estimates production of 1.850 billion cubic feet equivalent (Bcfe) per day, with liquid comprising 31–33%.
For 2016, the company has reaffirmed its production guidance at the upper end of its earlier projection. Production is expected in the range of 1,410–1,420 MMcfe/d after completion of all asset sales. Capital budget for the year is $495 million.
Zacks Rank & Stocks to Consider
Currently, Range Resources carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Enviva Partners, LP (EVA - Free Report) , Helix Energy Solution Group (HLX - Free Report) and EQT Midstream Partners . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enviva Partners has a mixed earnings surprise history. The partnership posted positive earnings surprise in two of the last four quarters. It reported a positive earnings surprise of 20.51% in the preceding quarter.
Helix Energy posted a positive earnings surprise of 150.00% in the preceding quarter. It reported a positive earnings surprise in all of the four preceding quarters.
In the last reported quarter, EQT Midstream Partners delivered a positive earnings surprise of 6.72%. Coming to the earnings surprise history, the partnership beat estimates in three of the last four quarters.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>