Range Resources Corp.’s (RRC - Free Report) second-quarter 2016 adjusted loss came in at 21 cents a share, narrower than the Zacks Consensus Estimate of loss of 29 cents. The company had reported loss of 6 cents a share in the year-earlier quarter.
Second-quarter total revenue of $101.8 million lagged the Zacks Consensus Estimate of $326 million and declined 58% year over year from $244.6 million.
Operational Performance
The company’s second-quarter production averaged almost 1,421 million cubic feet equivalent per day (MMcfe/d). Natural gas made up for 64% of the total production, while natural gas liquids (NGLs) and oil accounted for the remaining 36%. Total production volume improved 4% from the year-earlier quarter on the back of the company’s highly successful drilling program.
Oil production decreased 22%, whereas NGL rose 34% and natural-gas production decreased 5%, all on a year-over-year basis.
The company’s total price realization (including the effects of hedges and derivative settlements) averaged $2.50 per Mcfe, down 19% year over year. Of this, NGL prices increased 16% to $11.57 per barrel, crude oil prices decreased 40% to $40.48 per barrel and natural gas prices plunged 15% to $2.52 per Mcf, all on a year-over-year basis.
Financials
At the end of the quarter, long-term debt was approximately $2,567.0 million. Second-quarter drilling expenditures of $120 million funded the drilling of 28 wells. In addition, during the quarter, $3.5 million was spent on acreage purchases, $6.4 million as exploration expense, and $0.2 million on gas gathering systems.
Guidance
For the third quarter, the company estimates production of 1.421 billion cubic feet equivalent (Bcfe) per day, up 4% from the prior-year quarter, with Marcellus production averaging a record 1,379 net Mmcfe per day, up 16% from the prior-year quarter.
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.
Ranks
Range Resources currently carries a Zacks Rank #2 (Buy). Some better-ranked stocks from the oil and gas industry are Sasol Ltd (SSL - Free Report) , Dril-Quip, Inc. (DRQ - Free Report) and Murphy USA Inc (MUSA - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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Range Resources Corp.’s (RRC - Free Report) second-quarter 2016 adjusted loss came in at 21 cents a share, narrower than the Zacks Consensus Estimate of loss of 29 cents. The company had reported loss of 6 cents a share in the year-earlier quarter.
Second-quarter total revenue of $101.8 million lagged the Zacks Consensus Estimate of $326 million and declined 58% year over year from $244.6 million.
Operational Performance
The company’s second-quarter production averaged almost 1,421 million cubic feet equivalent per day (MMcfe/d). Natural gas made up for 64% of the total production, while natural gas liquids (NGLs) and oil accounted for the remaining 36%. Total production volume improved 4% from the year-earlier quarter on the back of the company’s highly successful drilling program.
Oil production decreased 22%, whereas NGL rose 34% and natural-gas production decreased 5%, all on a year-over-year basis.
The company’s total price realization (including the effects of hedges and derivative settlements) averaged $2.50 per Mcfe, down 19% year over year. Of this, NGL prices increased 16% to $11.57 per barrel, crude oil prices decreased 40% to $40.48 per barrel and natural gas prices plunged 15% to $2.52 per Mcf, all on a year-over-year basis.
Financials
At the end of the quarter, long-term debt was approximately $2,567.0 million. Second-quarter drilling expenditures of $120 million funded the drilling of 28 wells. In addition, during the quarter, $3.5 million was spent on acreage purchases, $6.4 million as exploration expense, and $0.2 million on gas gathering systems.
Guidance
For the third quarter, the company estimates production of 1.421 billion cubic feet equivalent (Bcfe) per day, up 4% from the prior-year quarter, with Marcellus production averaging a record 1,379 net Mmcfe per day, up 16% from the prior-year quarter.
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.
Ranks
Range Resources currently carries a Zacks Rank #2 (Buy). Some better-ranked stocks from the oil and gas industry are Sasol Ltd (SSL - Free Report) , Dril-Quip, Inc. (DRQ - Free Report) and Murphy USA Inc (MUSA - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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