We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Range Resources (RRC) Down 11.2% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for Range Resources (RRC - Free Report) . Shares have lost about 11.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Range Resources due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Range Resources Beats Q1 Earnings Estimates, 2019 Capex to Fall
Range Resources Corporation delivered first-quarter 2019 adjusted earnings of 36 cents per share that surpassed the Zacks Consensus Estimate of 24 cents. The company generated earnings of 46 cents in the year-ago quarter.
In the quarter under review, total revenues amounted to $748.1 million, which surpassed the Zacks Consensus Estimate of $726 million. The top line improved nearly 1% from $742.6 million in the prior-year quarter.
The quarterly results were driven by higher production and increased natural gas liquids (NGLs) price realizations.
Operational Performance
During the first quarter, the company’s production averaged almost 2,255.9 million cubic feet equivalent per day (MMcfe/d), up from 2,188.4 MMcfe/d in the prior-year quarter. Natural gas contributed 69% to total production, while NGL and oil accounted for the remaining 31%.
Oil production plunged 24% on a year-over-year basis.NGL and natural gas production increased 4% each year over year.
Production in Appalachian totaled 2,027 MMcfe/d, up 12% from the year-ago quarter’s figure.
The company’s total price realization (including the effects of hedges and derivative settlements) averaged $1.94 per thousand cubic feet equivalent (Mcfe), down 17% year over year. NGL prices totaled $11.35 per barrel, up 5% year over year.
Natural gas prices declined 23% on a year-over-year basis and amounted to $1.74 per Mcf. Crude oil prices totaled $49.61 per barrel, down 3% on a year-over-year basis.
Expenses
Total expenses were $741.0 million, up 14% year over year.
Financials
At the end of the quarter, the company had long-term debt of approximately $3,790.6 million with a debt-to-capitalization ratio of 48.3%. The company incurred expenditures worth $210 million in the first quarter.
Guidance
For the second quarter of 2019, the company estimates production in the range of 2,270-2,280 MMcfe/d. For 2019, production is projected in the range of 2,325-2,345 MMcfe/d. Consequently, annual output is expected to rise 5.6-6.5%.
The upstream energy player projects 2019 capital budget at $756 million, which suggests a decline from $910 million in 2018.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 19.45% due to these changes.
VGM Scores
At this time, Range Resources has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Range Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Range Resources (RRC) Down 11.2% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Range Resources (RRC - Free Report) . Shares have lost about 11.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Range Resources due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Range Resources Beats Q1 Earnings Estimates, 2019 Capex to Fall
Range Resources Corporation delivered first-quarter 2019 adjusted earnings of 36 cents per share that surpassed the Zacks Consensus Estimate of 24 cents. The company generated earnings of 46 cents in the year-ago quarter.
In the quarter under review, total revenues amounted to $748.1 million, which surpassed the Zacks Consensus Estimate of $726 million. The top line improved nearly 1% from $742.6 million in the prior-year quarter.
The quarterly results were driven by higher production and increased natural gas liquids (NGLs) price realizations.
Operational Performance
During the first quarter, the company’s production averaged almost 2,255.9 million cubic feet equivalent per day (MMcfe/d), up from 2,188.4 MMcfe/d in the prior-year quarter. Natural gas contributed 69% to total production, while NGL and oil accounted for the remaining 31%.
Oil production plunged 24% on a year-over-year basis.NGL and natural gas production increased 4% each year over year.
Production in Appalachian totaled 2,027 MMcfe/d, up 12% from the year-ago quarter’s figure.
The company’s total price realization (including the effects of hedges and derivative settlements) averaged $1.94 per thousand cubic feet equivalent (Mcfe), down 17% year over year. NGL prices totaled $11.35 per barrel, up 5% year over year.
Natural gas prices declined 23% on a year-over-year basis and amounted to $1.74 per Mcf. Crude oil prices totaled $49.61 per barrel, down 3% on a year-over-year basis.
Expenses
Total expenses were $741.0 million, up 14% year over year.
Financials
At the end of the quarter, the company had long-term debt of approximately $3,790.6 million with a debt-to-capitalization ratio of 48.3%. The company incurred expenditures worth $210 million in the first quarter.
Guidance
For the second quarter of 2019, the company estimates production in the range of 2,270-2,280 MMcfe/d. For 2019, production is projected in the range of 2,325-2,345 MMcfe/d. Consequently, annual output is expected to rise 5.6-6.5%.
The upstream energy player projects 2019 capital budget at $756 million, which suggests a decline from $910 million in 2018.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 19.45% due to these changes.
VGM Scores
At this time, Range Resources has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Range Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.