Range Resources Corporation RRC reported fourth-quarter 2024 adjusted earnings of 68 cents per share, which beat the Zacks Consensus Estimate of 51 cents. The bottom line also improved from the prior-year level of 63 cents. 

Total quarterly revenues of $750 million beat the Zacks Consensus Estimate of $693 million. The top line also increased from the prior-year figure of $715 million.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The strong quarterly results can be primarily attributed to higher commodity price realizations.

Range Resources Corporation Price, Consensus and EPS Surprise

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

Operational Performance

Production averaged 2,202.5 million cubic feet equivalent per day (Mcfe/d), lower than the prior-year level of 2,207.4 Mcfe/d. The figure was above our projection of 2,196.2 Mcfe/d. Natural gas contributed approximately 68% to the company’s total production, while NGLs and oil accounted for the rest. 

Natural gas production decreased 2% year over year. Oil production decreased 30%, while NGL output increased 7% in the same time frame.

Total price realization (excluding derivative settlements and before fourth-party transportation costs) averaged $3.13 per Mcfe, up 5% year over year. Notably, price realization was higher than our estimate of $2.74 per Mcfe. Natural gas price increased 8% on a year-over-year basis to $2.43 per Mcf. NGL price increased 6%, while oil price fell 12%.

Costs & Expenses

Total costs and expenses increased 1% year over year to $562 million. The reported figure was higher than our expectation of $554.4 million. Transportation, gathering, processing and compression costs, which form a major part of the total costs, increased to $299.4 million from $283.1 million in the prior-year quarter.

Capital Expenditure & Balance Sheet

Drilling and completion expenditure amounted to $124 million in the reported quarter. Additionally, $29 million was used for acreage leasehold, gathering systems and other expenses.

RRC had a total debt of $1,697.9 million at the end of the reported quarter.

Outlook

Range Resources expects its total production for 2025 to be 2.2 billion cubic feet equivalent per day, with more than 30% attributed to liquids production. It has also estimated a capital budget of $650-$690 million for the year.

RRC’s Zacks Rank and Key Picks

Currently, RRC carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Antero Resources Corporation AR, NextDecade Corporation NEXT and EOG Resources, Inc. EOG. While Antero Resources and NextDecade presently sport a Zacks Rank #1 (Strong Buy) each, EOG Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources, one of the fastest-growing natural gas producers in the United States, boasts a strategic acreage position in the low-risk properties of the Appalachian Basin. The company has more than two decades of premium low-cost drilling inventory in the prolific basin, securing a strong production outlook. AR is well-positioned to capitalize on the increasing demand for LNG, both in the United States and globally. 

NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, the company’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, NEXT is well-positioned to tap into the increasing export demand from the United States.

EOG Resources is an oil and gas exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites. Additionally, EOG maintains a strong balance sheet and continues to reward shareholders with regular and special dividends.

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Range Resources Corporation (RRC) : Free Stock Analysis Report

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