It has been about a month since the last earnings report for Range Resources (RRC Quick QuoteRRC - Free Report) . Shares have added about 6.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Range Resources due for a pullback? 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 Q1 Earnings Beat Estimates, Revenues Miss

Range Resources reported 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.

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%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -13.48% due to these changes.

VGM Scores

Currently, Range Resources has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% 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 downward 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.