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Range Resources (RRC) Q1 Earnings Beat on Higher Production

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Range Resources Corporation (RRC - Free Report) reported first-quarter 2023 adjusted earnings of 96 cents per share, beating the Zacks Consensus Estimate of 73 cents. However, the bottom line declined from the prior-year quarter’s earnings of $1.18 per share.

Total quarterly revenues of $853 million surpassed the Zacks Consensus Estimate of $823 million. The top line also declined from the prior-year quarter’s $987 million.

Better-than-expected quarterly results were driven by higher natural gas-equivalent production volumes. The positives were partially offset by lower realizations of commodity prices.

Range Resources Corporation Price, Consensus and EPS Surprise

 

Range Resources Corporation Price, Consensus and EPS Surprise

Range Resources Corporation price-consensus-eps-surprise-chart | Range Resources Corporation Quote

Operational Performance

In first-quarter 2023, the company’s production averaged 2,142.5 million cubic feet equivalent per day, up 3% from the prior-year period. Natural gas contributed 69.3% to total production, while NGLs and oil accounted for the rest.

Oil production declined 22% from the year-ago period, while NGL output increased 10%. Natural gas production increased 2%.

Its total price realization (excluding derivative settlements and before third-party transportation costs) averaged $3.82 per thousand cubic feet equivalent (Mcfe), down 31% year over year. Natural gas prices declined 31% on a year-over-year basis to $3.30 per Mcf. NGL prices declined 31%, while oil prices fell 24%.

Costs & Expenses

Total costs and expenses declined to $583 million from $753.6 million in the year-ago quarter. Total transportation, gathering, processing and compression costs declined in the reported quarter. However, exploration costs increased in the quarter.

Capital Expenditure & Balance Sheet

In the first quarter, the company’s drilling and completion expenditure was $139 million. An amount of $12 million was used in acreage and gathering facilities.

At the quarter end, it had total debt of $1,833.2 million.

Outlook

For 2023, Range Resources reiterated its total production of 2.12-2.16 billion cubic feet equivalent per day (Bcfe/d), with 30% attributed to liquid production.

RRC gave its capital budget of $570-$615 million for the year. Direct operating expenses are projected to be 11-13 cents per Mcfe, while exploration expenses are estimated at $22-$28 million.

Zacks Rank & Stocks to Consider

Range Resources currently carries a Zacks Rank #5 (Strong Buy).

Investors interested in the energy sector might 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.

Sunoco LP (SUN - Free Report) is scheduled to release first-quarter results on May 2. Valued at $4.5 billion, Sunoco has gained 18.6% in a year compared with 2.9% growth of the composite stocks belonging to the industry.

Sunoco has an Earnings ESP of +6.15%. The Zacks Consensus Estimate for SUN’s earnings is pegged at $1.22 per share, suggesting a decline from the prior-year reported figure.

Cactus Inc. (WHD - Free Report) is scheduled to release first-quarter results on May 9. Compared with composite stocks belonging to the industry, Cactus has significantly lower exposure to debt capital.

Cactus has an Earnings ESP of +1.79%. The Zacks Consensus Estimate for WHD’s earnings is pegged at 56 cents per share, suggesting an increase from the prior-year reported figure.

Marathon Petroleum Corporation (MPC - Free Report) is scheduled to release earnings on May 2. Valued at around $55 billion, Marathon Petroleum has gained 51.6% in a year compared with 16.1% growth of the composite stocks belonging to the industry.

Marathon Petroleum has an Earnings ESP of +1.19%. The Zacks Consensus Estimate for MPC’s earnings is pegged at $5.35 per share, suggesting an increase from the prior-year reported figure.

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