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RRC Q3 Earnings Top Estimates on Higher Gas Equivalent Production

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Key Takeaways

  • RRC posted Q3 adjusted earnings of 57 cents per share, topping estimates and rising year over year.
  • Quarterly revenue of $717.6M exceeded expectations, helped by stronger gas equivalent production.
  • Total price realization rose 13% to $2.98 per Mcfe, supported by a 51% jump in natural gas prices.

Range Resources Corporation (RRC - Free Report) reported third-quarter 2025 adjusted earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 50 cents. The bottom line also improved from the prior-year level of 48 cents. 

Total quarterly revenues of $717.6 million beat the Zacks Consensus Estimate of $691 million. The top line also increased from the prior-year figure of $680.2 million.

Strong quarterly results can be attributed to an increase in gas equivalent production and higher average commodity price realization.

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

Production averaged 2,227.8 million cubic feet equivalent per day (Mcfe/d), higher than the year-ago quarter’s level of 2,204.5 Mcfe/d. The figure, however, came in lower than our projection of 2,256.4 Mcfe/d. Natural gas contributed approximately 69% to the company’s total production in the reported quarter, while NGLs and oil accounted for the rest. 

Natural gas production increased 2% year over year. Oil production decreased 7%, while NGL output fell by 1% in the same time frame.

Total price realization (excluding derivative settlements and before third-party transportation costs) averaged $2.98 per Mcfe, up 13% year over year. Notably, price realization came in higher than our estimate of $2.95 per Mcfe. Natural gas price increased 51% on a year-over-year basis to $2.56 per Mcf. NGL price declined 15% to $22.09 per barrel, while oil price fell 15% to $54.25 per barrel.

Costs & Expenses

Total costs and expenses increased 3% year over year to $565.2 million. However, the reported figure came in marginally lower than our expectation of $566.6 million. Transportation, gathering, processing and compression costs, which constitute a significant part of the total costs, declined to $301 million from $306 million in the prior-year quarter. Depreciation, depletion and amortization expenses increased to $93.8 million from $91.1 million a year ago.

Capital Expenditure & Balance Sheet

Drilling and completion expenditure amounted to $165 million. An additional $16 million was spent on acreage and $9 million on infrastructure, pneumatic upgrades and other investments.

At the end of the third quarter, Range Resources reported a total debt of $1,216.8 million, net of deferred financing costs.

Outlook

Range Resources reiterated its total production for 2025 at approximately 2.225 billion cubic feet equivalent per day, with more than 30% has been attributed to liquids production. The company’s capital budget for the year is expected to be in the range of $650-$680 million.

RRC’s Zacks Rank and Key Picks

RRC currently has a Zacks Rank #4 (Sell).

Some top-ranked stocks from the energy sector are Cheniere Energy Inc. (LNG - Free Report) , Bloom Energy Corporation (BE - Free Report) and Archrock Inc. (AROC - Free Report) . While Cheniere Energy currently sports a Zacks Rank #1 (Strong Buy), Bloom Energy and Archrock carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cheniere Energy is involved in LNG-related businesses, which include LNG terminals and natural gas marketing. The company has achieved a milestone with the first production from the first LNG train of its Corpus Christi Stage 3 Liquefaction Project. The project, which includes seven midscale LNG trains, aims to expand the production capacity of the Corpus Christi Liquefaction facility. This expansion is expected to strengthen Cheniere's position in the rapidly growing global LNG market, enabling it to meet the rising demand for LNG both in the United States and internationally.

Bloom Energy manufactures one of the most advanced and versatile fuel cell energy platforms. The company has two key offerings, the Bloom Energy Server for electricity generation and the Bloom Electrolyzer for hydrogen production. The Energy Server system provides sustainable and reliable power solutions for both commercial and utility customers. Bloom Energy is anticipated to benefit from rising demand for reliable and clean power, fueled by the growth of data centers, crypto-mining facilities and the re-shoring of manufacturing in key sectors in the United States, such as semiconductors.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services. 

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