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Range Resources (RRC) Q1 Earnings & Revenues Beat Estimates
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Upstream energy company Range Resources Corporation (RRC - Free Report) reported better-than-expected first-quarter 2017 earnings. The bottom-line improvement was mainly driven by increased production and higher price realizations, partially offset by higher expenses.
The company’s adjusted profit of 69 cents a share comfortably surpassed the Zacks Consensus Estimate of earnings of 18 cents. Notably, the company had incurred a loss of 22 cents per share in the year-ago quarter.
Total revenue of $776.7 million beat the Zacks Consensus Estimate of $570.9 million and also jumped 134.3% year over year from $331.4 million.
Operational Performance
The company’s first-quarter production averaged almost 1,931.9 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 40% from the year-earlier quarter due to the company’s highly successful drilling program.
On a year-over-year basis, oil production increased 28%, while NGL production rose 44%. Moreover, natural gas production jumped 39% year over year.
The company’s total price realization (including the effects of hedges and derivative settlements) averaged $2.17 per Mcfe, up 41% year over year. Of this, NGL prices surged 68% to $8.00 per barrel while crude oil prices rose 39% to $49.50 per barrel, both on a year-over-year basis. Natural gas prices were up 38% year over year to $2.21 per Mcf.
Expenses
Total first-quarter 2017 expense was $494.1 million, up 6% year over year.
Range Resources Corporation Price, Consensus and EPS Surprise
At the end of the quarter, the company had long-term debt of approximately $3,738.8 million with a debt-to-capitalization ratio of 40.1%. The company incurred drilling expenditures of $228 million in the first quarter to drill 54 wells.
First-Quarter Price Performance
During the January–March quarter of 2017, Range Resources’ shares underperformed the Zacks categorized Oil & Gas-U.S Exploration & Production industry. During the aforesaid period, the company’s shares lost 21% compared with the broader industry’s decline of 16.5%.
Guidance
For the second quarter of 2017, the company estimates production of 1.93 billion cubic feet equivalent (Bcfe) per day, with liquid comprising 30–32%.
For 2017, the company has set its production guidance at 2.07 Bcfe per day. This translates to annual growth rate of 33–35%.
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 #3 (Hold). Some better-ranked from the same space are Diamond Offshore Drilling Inc. (DO - Free Report) , Cenovus Energy Inc. (CVE - Free Report) and Bellatrix Exploration Ltd. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Diamond Offshore Drilling posted a positive earnings surprise of 341.67% in the preceding quarter. It beat estimates in all of the four trailing quarters with an average positive earnings surprise of 353.28%.
Cenovus Energy posted a positive earnings surprise of 583.33% in the preceding quarter. It beat estimates in two of the four trailing quarters with an average positive earnings surprise of 74.89%.
Bellatrix Exploration posted a positive earnings surprise of 240.00% in the preceding quarter. It beat estimates in three of the four trailing quarters with an average positive earnings surprise of 58.54%.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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Range Resources (RRC) Q1 Earnings & Revenues Beat Estimates
Upstream energy company Range Resources Corporation (RRC - Free Report) reported better-than-expected first-quarter 2017 earnings. The bottom-line improvement was mainly driven by increased production and higher price realizations, partially offset by higher expenses.
The company’s adjusted profit of 69 cents a share comfortably surpassed the Zacks Consensus Estimate of earnings of 18 cents. Notably, the company had incurred a loss of 22 cents per share in the year-ago quarter.
Total revenue of $776.7 million beat the Zacks Consensus Estimate of $570.9 million and also jumped 134.3% year over year from $331.4 million.
Operational Performance
The company’s first-quarter production averaged almost 1,931.9 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 40% from the year-earlier quarter due to the company’s highly successful drilling program.
On a year-over-year basis, oil production increased 28%, while NGL production rose 44%. Moreover, natural gas production jumped 39% year over year.
The company’s total price realization (including the effects of hedges and derivative settlements) averaged $2.17 per Mcfe, up 41% year over year. Of this, NGL prices surged 68% to $8.00 per barrel while crude oil prices rose 39% to $49.50 per barrel, both on a year-over-year basis. Natural gas prices were up 38% year over year to $2.21 per Mcf.
Expenses
Total first-quarter 2017 expense was $494.1 million, up 6% year over year.
Range Resources Corporation Price, Consensus and EPS Surprise
Range Resources Corporation Price, Consensus and EPS Surprise | Range Resources Corporation Quote
Financials
At the end of the quarter, the company had long-term debt of approximately $3,738.8 million with a debt-to-capitalization ratio of 40.1%. The company incurred drilling expenditures of $228 million in the first quarter to drill 54 wells.
First-Quarter Price Performance
During the January–March quarter of 2017, Range Resources’ shares underperformed the Zacks categorized Oil & Gas-U.S Exploration & Production industry. During the aforesaid period, the company’s shares lost 21% compared with the broader industry’s decline of 16.5%.
Guidance
For the second quarter of 2017, the company estimates production of 1.93 billion cubic feet equivalent (Bcfe) per day, with liquid comprising 30–32%.
For 2017, the company has set its production guidance at 2.07 Bcfe per day. This translates to annual growth rate of 33–35%.
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 #3 (Hold). Some better-ranked from the same space are Diamond Offshore Drilling Inc. (DO - Free Report) , Cenovus Energy Inc. (CVE - Free Report) and Bellatrix Exploration Ltd. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Diamond Offshore Drilling posted a positive earnings surprise of 341.67% in the preceding quarter. It beat estimates in all of the four trailing quarters with an average positive earnings surprise of 353.28%.
Cenovus Energy posted a positive earnings surprise of 583.33% in the preceding quarter. It beat estimates in two of the four trailing quarters with an average positive earnings surprise of 74.89%.
Bellatrix Exploration posted a positive earnings surprise of 240.00% in the preceding quarter. It beat estimates in three of the four trailing quarters with an average positive earnings surprise of 58.54%.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>