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Range Resources (RRC) Q1 Earnings Top Estimates, Revenues Miss
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Range Resources Corporation (RRC - Free Report) reported first-quarter 2022 adjusted earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.15 per share. The bottom line significantly improved from the prior-year quarter’s earnings of 30 cents per share.
Total quarterly revenues of $180.7 million missed the Zacks Consensus Estimate of $955 million. The top line also declined from the prior-year quarter’s $626 million.
The strong quarterly earnings can be attributed to higher realizations of commodity prices.
Range Resources Corporation Price, Consensus and EPS Surprise
In first-quarter 2022, Range Resources’ board of directors approved the authorization of a $500-million share repurchase program.
Operational Performance
For first-quarter 2022, the company’s production averaged 2,070.6 million cubic feet equivalent per day, down 1% from the prior-year period. Natural gas contributed 70.4% to total production, while NGLs and oil accounted for the rest.
Oil production declined 4% from the year-ago period, while NGL output declined 3%. However, natural gas production increased 1% year over year.
Its total price realization (excluding derivative settlements and before third-party transportation costs) averaged $5.54 per thousand cubic feet equivalent (Mcfe), up 72% year over year. Natural gas prices rose 86% on a year-over-year basis to $4.80 per Mcf. NGL and oil prices increased 52% and 79%, respectively.
Costs & Expenses
Total costs and expenses rose to $753.6 million from $596.2 million in the year-ago quarter. Total transportation, gathering, processing and compression costs, as well as direct operating expenses, increased in the quarter. Lower exploration costs partially offset the rise in expenses.
On a per-unit basis, direct operating costs increased to 11 cents per Mcfe in the March-end quarter of 2022 from 9 cents per Mcfe in the year ago quarter. Transportation, gathering, processing and compression expenses were recorded at $1.60 per Mcfe, higher than $1.46 in the prior-year quarter.
Capital Expenditure & Balance Sheet
The company’s drilling and completion expenditure totaled $108 million for first-quarter 2022. An amount of $8.6 million was used in acreage and gathering facilities.
At the first-quarter end, it had total debt of $1,829.7 million. It had a debt-to-capitalization of 53.3%.
Outlook
For 2022, Range Resources expects total production of 2.12-2.16 billion cubic feet equivalent per day (Bcfe/d), with 30% attributed to liquids production.
RRC anticipates capital spending of $460-$480 million for the year. Direct operating expenses are projected to be 9-11 cents per Mcfe, while exploration expenses are estimated to be $22-$28 million.
The upstream energy firm expects free cash flow to exceed $1.4 billion this year.
Zacks Rank & Other Stock to Consider
Range Resources currently carries a Zacks Rank #2 (Buy).
Diamondback Energy, Inc. (FANG - Free Report) is an independent oil and gas exploration and production company. At 2021-end, it held 1,789 million oil-equivalent barrels in proved reserves (52% oil, 67% proved developed). It is scheduled to release first-quarter results on May 2.
Diamondback’s earnings for 2022 are expected to surge 115.6% year over year. FANG’s average daily output totaled 375.3 thousand barrels of oil equivalent per day in 2021, of which 60% was oil.
PDC Energy, Inc. is an independent upstream operator that explores, develops and produces natural gas, crude oil and NGLs. On Dec 31, 2021, PDCE's total estimated proved reserves were 213,845 thousand barrels of oil, 240,389 MBbls of NGLs and 2,159,725 million cubic feet of gas. It is scheduled to release first-quarter results on May 4.
PDC Energy’s earnings for 2022 are expected to grow 103.6% year over year. As of Dec 31, PDC Energy had $33.8 million in cash and cash equivalents, and $942.1 million in long-term debt, representing a debt-to-capitalization of 24.5%.
Devon Energy Corporation (DVN - Free Report) is an independent energy company that explores, develops and produces oil and natural gas. At 2021-end, Devon had proved developed and undeveloped reserves of nearly 1,625 million barrels of oil equivalent. It is scheduled to release first-quarter results on May 2.
Devon’s earnings for 2022 are expected to surge 139.7% year over year. DVN’s board approved an increase in the dividend rate to $1, payable to shareholders on Mar 31, 2022. Management approved variable and fixed dividends for shareholders to further enhance the shareholder value.
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Range Resources (RRC) Q1 Earnings Top Estimates, Revenues Miss
Range Resources Corporation (RRC - Free Report) reported first-quarter 2022 adjusted earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.15 per share. The bottom line significantly improved from the prior-year quarter’s earnings of 30 cents per share.
Total quarterly revenues of $180.7 million missed the Zacks Consensus Estimate of $955 million. The top line also declined from the prior-year quarter’s $626 million.
The strong quarterly earnings can be attributed to higher realizations of commodity prices.
Range Resources Corporation Price, Consensus and EPS Surprise
Range Resources Corporation price-consensus-eps-surprise-chart | Range Resources Corporation Quote
Share Buyback
In first-quarter 2022, Range Resources’ board of directors approved the authorization of a $500-million share repurchase program.
Operational Performance
For first-quarter 2022, the company’s production averaged 2,070.6 million cubic feet equivalent per day, down 1% from the prior-year period. Natural gas contributed 70.4% to total production, while NGLs and oil accounted for the rest.
Oil production declined 4% from the year-ago period, while NGL output declined 3%. However, natural gas production increased 1% year over year.
Its total price realization (excluding derivative settlements and before third-party transportation costs) averaged $5.54 per thousand cubic feet equivalent (Mcfe), up 72% year over year. Natural gas prices rose 86% on a year-over-year basis to $4.80 per Mcf. NGL and oil prices increased 52% and 79%, respectively.
Costs & Expenses
Total costs and expenses rose to $753.6 million from $596.2 million in the year-ago quarter. Total transportation, gathering, processing and compression costs, as well as direct operating expenses, increased in the quarter. Lower exploration costs partially offset the rise in expenses.
On a per-unit basis, direct operating costs increased to 11 cents per Mcfe in the March-end quarter of 2022 from 9 cents per Mcfe in the year ago quarter. Transportation, gathering, processing and compression expenses were recorded at $1.60 per Mcfe, higher than $1.46 in the prior-year quarter.
Capital Expenditure & Balance Sheet
The company’s drilling and completion expenditure totaled $108 million for first-quarter 2022. An amount of $8.6 million was used in acreage and gathering facilities.
At the first-quarter end, it had total debt of $1,829.7 million. It had a debt-to-capitalization of 53.3%.
Outlook
For 2022, Range Resources expects total production of 2.12-2.16 billion cubic feet equivalent per day (Bcfe/d), with 30% attributed to liquids production.
RRC anticipates capital spending of $460-$480 million for the year. Direct operating expenses are projected to be 9-11 cents per Mcfe, while exploration expenses are estimated to be $22-$28 million.
The upstream energy firm expects free cash flow to exceed $1.4 billion this year.
Zacks Rank & Other Stock to Consider
Range Resources currently carries a Zacks Rank #2 (Buy).
Investors interested in the energy space might also 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.
Diamondback Energy, Inc. (FANG - Free Report) is an independent oil and gas exploration and production company. At 2021-end, it held 1,789 million oil-equivalent barrels in proved reserves (52% oil, 67% proved developed). It is scheduled to release first-quarter results on May 2.
Diamondback’s earnings for 2022 are expected to surge 115.6% year over year. FANG’s average daily output totaled 375.3 thousand barrels of oil equivalent per day in 2021, of which 60% was oil.
PDC Energy, Inc. is an independent upstream operator that explores, develops and produces natural gas, crude oil and NGLs. On Dec 31, 2021, PDCE's total estimated proved reserves were 213,845 thousand barrels of oil, 240,389 MBbls of NGLs and 2,159,725 million cubic feet of gas. It is scheduled to release first-quarter results on May 4.
PDC Energy’s earnings for 2022 are expected to grow 103.6% year over year. As of Dec 31, PDC Energy had $33.8 million in cash and cash equivalents, and $942.1 million in long-term debt, representing a debt-to-capitalization of 24.5%.
Devon Energy Corporation (DVN - Free Report) is an independent energy company that explores, develops and produces oil and natural gas. At 2021-end, Devon had proved developed and undeveloped reserves of nearly 1,625 million barrels of oil equivalent. It is scheduled to release first-quarter results on May 2.
Devon’s earnings for 2022 are expected to surge 139.7% year over year. DVN’s board approved an increase in the dividend rate to $1, payable to shareholders on Mar 31, 2022. Management approved variable and fixed dividends for shareholders to further enhance the shareholder value.