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Group 1 - The stock of Range Resources Corporation (RRC) is experiencing significant attention due to high implied volatility in the options market, particularly the Sept. 19, 2025 $25 Call option [1] - Implied volatility indicates market expectations for future price movements, suggesting that investors anticipate a significant change in Range Resources' stock price, potentially due to an upcoming event [2] - Range Resources currently holds a Zacks Rank 3 (Hold) in the Oil and Gas - Exploration and Production - United States industry, which is in the bottom 33% of the Zacks Industry Rank [3] Group 2 - Over the past 60 days, there has been a mixed sentiment among analysts regarding earnings estimates for Range Resources, with one analyst increasing estimates while seven have decreased them, leading to a consensus estimate drop from 75 cents to 63 cents per share [3] - The high implied volatility may indicate a trading opportunity, as options traders often seek to sell premium on options with high implied volatility, hoping the underlying stock does not move as much as expected at expiration [4]

Core Insights - Range Resources Corporation (NYSE: RRC) has shown strong operational performance and made slight positive revisions to its guidance [2] - The company increased its full year production guidance by 1% while simultaneously lowering its capital expenditures (capex) and operating costs [2] Company Overview - Range Resources Corporation is focused on the energy sector and has been highlighted for its operational efficiency and strategic adjustments [2] - The company is associated with an analyst, Aaron Chow, who has over 15 years of analytical experience and a background in mobile gaming [2] Analyst Insights - The analyst, Aaron Chow, is recognized as a top-rated analyst on TipRanks and has a history of co-founding a mobile gaming company that was acquired [2] - The investing group Distressed Value Investing, led by the analyst, emphasizes value opportunities and distressed plays within the energy sector [2]

Core Viewpoint - Range Resources Corporation reported strong second-quarter earnings, beating estimates and raising production guidance, despite a recent decline in share price [2][8]. Financial Performance - Adjusted earnings for Q2 2025 were 66 cents per share, surpassing the Zacks Consensus Estimate of 61 cents and improving from 46 cents in the prior year [2]. - Total quarterly revenues reached $733 million, exceeding the Zacks Consensus Estimate of $724 million and up from $641 million year-over-year [2]. Operational Performance - Average production was 2,197.3 million cubic feet equivalent per day (Mcfe/d), higher than the previous year's 2,152.9 Mcfe/d and above the projected 2,184.4 Mcfe/d [4]. - Natural gas accounted for approximately 68% of total production, with oil production decreasing by 2% and NGL output increasing by 7% year-over-year [4]. Price Realization - Total price realization averaged $3.33 per Mcfe, a 36% increase year-over-year, and higher than the estimated $3.23 per Mcfe [5]. - Natural gas prices rose by 90% year-over-year to $2.92 per Mcf, while NGL prices fell by 3% and oil prices dropped by 23% [5]. Costs and Expenses - Total costs and expenses increased by 7% year-over-year to $554.2 million, but were lower than the expected $556.1 million [6]. - Significant costs included transportation, gathering, processing, and compression, which rose to $304.7 million from $281.5 million in the prior year [6]. Capital Expenditure and Balance Sheet - Drilling and completion expenditures totaled $136 million, with an additional $11 million on acreage and $7 million on infrastructure [7]. - Total debt at the end of Q2 was reported at $1,211.7 million, net of deferred financing costs [7]. Outlook - Range Resources anticipates total production for 2025 to be 2.225 billion cubic feet equivalent per day, with over 30% attributed to liquids production [8]. - The capital budget for the year has been updated to a range of $650-$680 million [8]. Estimate Trends - Estimates for the stock have trended downward over the past month, with a consensus estimate shift of -6.34% [9][10]. - The stock currently holds a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [12]. VGM Scores - Range Resources has an average Growth Score of C, a Momentum Score of F, and a Value Score of B, placing it in the top 40% for the value investment strategy [11]. - The aggregate VGM Score for the stock is D, which is relevant for investors not focused on a single strategy [11].

Group 1 - Range Resources (NYSE: RRC) employs a liquids strategy in the Marcellus and Appalachia regions, positioning the company to benefit from the anticipated recovery in natural gas prices [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] Group 2 - The analysis provided in the article focuses on identifying undervalued companies within the oil and gas sector, examining aspects such as balance sheets, competitive positioning, and development prospects [1]

Core Insights - Range Resources Corporation (RRC) reported second-quarter 2025 adjusted earnings of 66 cents per share, exceeding the Zacks Consensus Estimate of 61 cents and improving from 46 cents in the prior year [1][9] - Total quarterly revenues reached $733 million, surpassing the Zacks Consensus Estimate of $724 million and increasing from $641 million year-over-year [1][9] Operational Performance - Production averaged 2,197.3 million cubic feet equivalent per day (Mcfe/d), up from 2,152.9 Mcfe/d in the same quarter last year and exceeding the projection of 2,184.4 Mcfe/d [3] - Natural gas contributed approximately 68% to total production, with natural gas production remaining flat year-over-year, oil production decreasing by 2%, and NGL output increasing by 7% [3] Price Realization - Total price realization averaged $3.33 per Mcfe, a 36% increase year-over-year, and higher than the estimate of $3.23 per Mcfe [4] - Natural gas price increased by 90% year-over-year to $2.92 per Mcf, while NGL price declined by 3% and oil price fell by 23% [4] Costs & Expenses - Total costs and expenses rose by 7% year-over-year to $554.2 million, which was lower than the expectation of $556.1 million [5] - Transportation, gathering, processing, and compression costs increased to $304.7 million from $281.5 million in the prior-year quarter [5] Capital Expenditure & Balance Sheet - Drilling and completion expenditure amounted to $136 million, with an additional $11 million spent on acreage and $7 million on infrastructure and other investments [6] - At the end of the second quarter, total debt was reported at $1,211.7 million, net of deferred financing costs [6] Outlook - Range Resources expects total production for 2025 to be 2.225 billion cubic feet equivalent per day, with more than 30% attributed to liquids production [7] - The company updated its capital budget for the year to a range of $650-$680 million [7]

[Second Quarter 2025 Earnings Release](index=1&type=section&id=Second%20Quarter%202025%20Earnings%20Release) [Executive Summary & Highlights](index=1&type=section&id=1.1.%20Executive%20Summary%20%26%20Highlights) Range Resources reported strong Q2 2025 results, marked by significant free cash flow, share repurchases, and debt reduction, driven by efficiency gains and stable well performance - CEO Dennis Degner noted a strong start to the fiscal year, with efficiency gains and stable well performance driving robust free cash flow and operational momentum[4](index=4&type=chunk) - The company's financial performance supported **$74 million** in share repurchases and dividend payments, while reducing net debt to **$1.2 billion**[4](index=4&type=chunk) - Range possesses ample high-quality inventory in the Appalachian Basin to support base-load supply growth, continuously improving efficiency through counter-cyclical investments in drilled inventory and consistent well results over the past 18 months[4](index=4&type=chunk) Q2 2025 Key Financial and Operational Highlights | Metric | Amount/Data | | :------------------------------------------ | :---------- | | Cash Flow from Operations | $336 million USD | | Cash Flow from Operations (Excluding Working Capital Changes) | $301 million USD | | Share Repurchases | $53 million USD | | Dividend Payments | $21 million USD | | Net Debt Reduced to | $1.2 billion USD | | Capital Expenditures | $154 million USD | | Realized Price (Including Hedges) | $3.49 per Mcfe | | Average Production | 2.20 Bcfe per day | | Natural Gas Percentage | Approximately 68% | | 2025 Production Guidance | Increased | | 2025 Capital Expenditure Guidance | Decreased | | Operational Efficiency | Improved | | Drilling Inventory | Increased | [GAAP Financial Results](index=1&type=section&id=1.2.%20GAAP%20Financial%20Results) Range Resources reported Q2 2025 GAAP revenue of **$856 million**, a 62% increase, with net income of **$238 million** (diluted EPS of **$0.99**) driven by **$155 million** in derivative mark-to-market gains - Q2 2025 earnings results included **$155 million** in mark-to-market derivative gains due to lower commodity prices[6](index=6&type=chunk) Q2 2025 GAAP Revenue and Net Income | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | Year-over-Year Change (%) | | :----------------------------- | :-------------------- | :-------------------- | :---------------------- | | Total Revenue and Other Income | $856.275 | $530.109 | 62% | | Natural Gas, NGLs and Oil Sales | $666.638 | $478.450 | 39% | | Fair Value Gains on Derivatives | $154.747 | $16.808 | 821% | | Net Income | $237.578 | $28.704 | 728% | | Diluted Earnings Per Share | $0.99 | $0.12 | 725% | | GAAP Net Cash Provided by Operating Activities | $336 | - | - | [Non-GAAP Financial Results](index=1&type=section&id=1.3.%20Non-GAAP%20Financial%20Results) Q2 2025 non-GAAP metrics show cash flow from operations before working capital changes at **$301 million** and adjusted net income of **$158 million** (diluted EPS of **$0.66**), aligning with analyst expectations Q2 2025 Non-GAAP Financial Metrics | Metric | Amount (million USD) | | :----------------------------------- | :------------------- | | Cash Flow from Operations Before Changes in Working Capital | $301 | | Adjusted Net Income (Comparable to Analyst Estimates) | $158 | | Adjusted Diluted Earnings Per Share | $0.66 | [Unit Costs Analysis](index=2&type=section&id=1.4.%20Unit%20Costs%20Analysis) Range Resources' Q2 2025 total cash unit costs increased by **5%** and total unit costs plus DD&A by **4%** year-over-year, primarily due to higher transportation, gathering, processing, and compression costs, and non-income taxes Q2 2025 Unit Costs (per Mcfe) | Expense Category | Q2 2025 (per Mcfe) | Q2 2024 (per Mcfe) | Increase/Decrease (%) | | :------------------------------------------ | :----------------- | :----------------- | :-------------------- | | Direct Operating | $0.11 | $0.11 | 0% | | Transportation, Gathering, Processing and Compression | $1.52 | $1.44 | 6% | | Non-Income Taxes | $0.04 | $0.03 | 33% | | General and Administrative | $0.16 | $0.16 | 0% | | Interest Expense | $0.13 | $0.14 | (7%) | | **Total Cash Unit Costs** | **$1.97** | **$1.88** | **5%** | | Depletion, Depreciation and Amortization (DD&A) | $0.46 | $0.45 | 2% | | **Total Unit Costs Plus DD&A** | **$2.43** | **$2.33** | **4%** | [Production and Realized Pricing](index=2&type=section&id=1.5.%20Production%20and%20Realized%20Pricing) Range's Q2 2025 average production was **2.20 Bcfe per day**, with natural gas comprising **68%**, and the hedged average realized price was **$3.49 per Mcfe**, showing a significant increase in natural gas prices and a year-over-year decrease in oil prices - The average natural gas price (including basis hedging) was **$2.94 per Mcf**, or **$0.50 per Mcf** below NYMEX[10](index=10&type=chunk) - Unhedged NGL prices were **$23.73 per bbl**, approximately **$0.61** above the Mont Belvieu weighted equivalent[10](index=10&type=chunk) - Unhedged crude oil and condensate realized prices were **$52.77 per bbl**, **$10.95 per bbl** below WTI[10](index=10&type=chunk) Q2 2025 Average Production and Realized Pricing | Product | Average Daily Net Production (Q2 2025) | Average Realized Price After Hedging (Q2 2025) | | :--------- | :----------------------------------- | :--------------------------------------------- | | Natural Gas | 1,497,771 Mcf | $3.13 per Mcf | | Oil | 6,382 bbl | $54.22 per bbl | | NGLs | 110,209 bbl | $23.88 per bbl | | Equivalents | 2,197,321 Mcfe | $3.49 per Mcfe | [Financial Position & Capital Management](index=4&type=section&id=Financial%20Position%20%26%20Capital%20Management) [Share Repurchase and Debt Reduction](index=4&type=section&id=2.1.%20Share%20Repurchase%20and%20Debt%20Reduction) Range repurchased **1.45 million shares** for approximately **$53 million** in Q2 2025, with **$900 million** remaining in the repurchase program, and reduced net debt to **$1.22 billion** by repaying senior notes - **1,453,438 shares** were repurchased during the second quarter at an average price of approximately **$36.35 per share**[11](index=11&type=chunk) - Approximately **$900 million** remained available under the company's share repurchase program as of June 30, 2025[11](index=11&type=chunk) - In May 2025, Range repaid the remaining principal balance of its 4.875% Senior Notes due 2025 at par, utilizing cash on hand and its bank credit facility[12](index=12&type=chunk) Net Debt (Non-GAAP) | Metric | June 30, 2025 (thousand USD) | December 31, 2024 (thousand USD) | Change (%) | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------- | | Total Reported Debt (Net of Deferred Financing Costs) | $1,211,699 | $1,697,883 | -29% | | Less: Cash and Cash Equivalents | $(134) | $(304,490) | - | | **Net Debt (Non-GAAP)** | **$1,224,866** | **$1,404,212** | **-13%** | [Capital Expenditures and Operational Activity](index=4&type=section&id=2.2.%20Capital%20Expenditures%20and%20Operational%20Activity) Q2 2025 drilling and completion expenditures were **$136 million**, with year-to-date capital investment of **$301 million**, **$10 million** below plan due to operational efficiencies, and increased drilled but uncompleted lateral well inventory - Q2 2025 drilling and completion expenditures were **$136 million**[13](index=13&type=chunk) - Year-to-date capital investment was **$301 million**, approximately **$10 million** below plan due to operational efficiencies[13](index=13&type=chunk) - Range reduced the upper end of its 2025 capital expenditure guidance to **$680 million**[13](index=13&type=chunk) - Approximately **285,000 lateral feet** (20 wells) were drilled and approximately **156,000 lateral feet** (12 wells) were turned to sales during the quarter[14](index=14&type=chunk) - The company expects to have over **400,000 lateral feet** of growth inventory by year-end 2025 to support future development[14](index=14&type=chunk) 2025 Planned Wells Turned to Sales | Region | Type | Wells Turned to Sales H1 2025 | Remaining Planned 2025 | Total Planned Wells Turned to Sales 2025 | | :----- | :--------- | :---------------------------- | :--------------------- | :--------------------------------------- | | SW PA | Super Rich | 5 | 3 | 8 | | SW PA | Wet Gas | 17 | 12 | 29 | | SW PA | Dry Gas | 0 | 5 | 5 | | NE PA | Dry Gas | 0 | 4 | 4 | | **Total** | | **22** | **24** | **46** | [2025 Guidance & Outlook](index=4&type=section&id=2025%20Guidance%20%26%20Outlook) [Updated Capital & Production Guidance](index=4&type=section&id=3.1.%20Updated%20Capital%20%26%20Production%20Guidance) Range Resources updated its 2025 capital budget to an upper limit of **$680 million** (total budget **$650-$680 million**) and raised annual production guidance to approximately **2.225 Bcfe per day**, with liquids expected to exceed **30%** of total production - The total 2025 capital budget was updated to **$650 million to $680 million**, previously guided at **$650 million to $690 million**[17](index=17&type=chunk) - Annual 2025 production is expected to be approximately **2.225 Bcfe per day**, previously guided at approximately **2.2 Bcfe per day**[17](index=17&type=chunk) - Liquids production is expected to exceed **30%** of total production[17](index=17&type=chunk) [Updated Expense Guidance](index=4&type=section&id=3.2.%20Updated%20Expense%20Guidance) The company provided updated full-year 2025 expense guidance, with minor adjustments to direct operating and general and administrative expenses, while other categories remained consistent with previous guidance Updated Full-Year 2025 Expense Guidance | Expense Category | Updated Guidance (per Mcfe/million USD) | Previous Guidance (per Mcfe/million USD) | | :------------------------------------------ | :------------------------------------ | :------------------------------------ | | Direct Operating Expense | $0.12 - $0.13 per Mcfe | $0.12 - $0.14 per Mcfe | | Transportation, Gathering, Processing and Compression Expense | $1.50 - $1.55 per Mcfe | $1.50 - $1.55 per Mcfe | | Non-Income Taxes | $0.03 - $0.04 per Mcfe | $0.03 - $0.04 per Mcfe | | Exploration Expense | $24 - $28 million USD | $24 - $28 million USD | | General and Administrative Expense | $0.17 - $0.18 per Mcfe | $0.17 - $0.19 per Mcfe | | Net Interest Expense | $0.12 - $0.13 per Mcfe | $0.12 - $0.13 per Mcfe | | DD&A Expense | $0.45 - $0.46 per Mcfe | $0.45 - $0.46 per Mcfe | | Net Marketing Expense for Brokerage Natural Gas | $8 - $12 million USD | $8 - $12 million USD | [Updated Price Guidance](index=6&type=section&id=3.3.%20Updated%20Price%20Guidance) Range Resources updated its 2025 price differential guidance for natural gas liquids, anticipating a higher premium relative to Mont Belvieu equivalent, while natural gas and oil/condensate differential guidance remained unchanged Updated Full-Year 2025 Price Guidance | Product | Updated Guidance | Previous Guidance | | :------------------------ | :----------------------- | :----------------------- | | Natural Gas (NYMEX Differential) | NYMEX minus $0.40 to $0.48 | NYMEX minus $0.40 to $0.48 | | Natural Gas Liquids (MB Differential) | MB plus $0.40 to $1.25 per bbl | MB plus $0.25 to $1.25 per bbl | | Oil/Condensate (WTI Differential) | WTI minus $10.00 to $15.00 | WTI minus $10.00 to $15.00 | [Hedging Status](index=6&type=section&id=3.4.%20Hedging%20Status) Range Resources actively hedges future production and natural gas basis to enhance cash flow predictability and manage price volatility, with a net gain of **$19.9 million** in fair value from natural gas basis hedges as of June 30, 2025 - Range hedges a portion of its expected future production to enhance cash flow predictability and maintain a strong financial position[21](index=21&type=chunk) - The company also hedges basis at various natural gas sales points to limit volatility between benchmark and regional prices[22](index=22&type=chunk) - As of June 30, 2025, the combined fair value of natural gas basis hedges was a net gain of **$19.9 million**[22](index=22&type=chunk) [Non-GAAP Financial Measures Explanation](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) [Non-GAAP Financial Measures Explanation](index=6&type=section&id=4.1.%20Non-GAAP%20Financial%20Measures%20Explanation) This section defines and explains various non-GAAP financial measures used by Range Resources, such as net income excluding certain items, cash flow from operations before changes in working capital, realized prices, net debt, and cash margin, which management believes provide meaningful supplemental information for industry comparisons and investment decisions - Non-GAAP measures include net income excluding certain items, cash flow from operations before changes in working capital, realized prices, net debt, and cash margin[24](index=24&type=chunk) - Adjusted net income (comparable to analyst estimates) is used by investors and analysts to evaluate operational trends and the company's performance relative to other oil and gas producers[25](index=25&type=chunk) - Cash flow from operations before changes in working capital is widely accepted in the investment community as a financial indicator of an oil and gas company's ability to internally fund exploration and development activities and service debt[26](index=26&type=chunk) - Realized cash prices (including cash-settled derivatives and net of transportation, gathering, processing, and compression expenses) are a key component used by investors and professional research analysts to evaluate and compare the company's performance[27](index=27&type=chunk) - Net debt, calculated as total debt less cash and cash equivalents, assists investors and industry analysts in making industry comparisons[28](index=28&type=chunk) - PV10 reserve value, disclosed as a supplement to the standardized measure (after-tax amount), presents the discounted future net cash flows attributable to proved reserves before considering future corporate income taxes and current tax structure, providing a more comparable basis for evaluation[30](index=30&type=chunk) [Company Information & Disclosures](index=8&type=section&id=Company%20Information%20%26%20Disclosures) [Company Overview](index=8&type=section&id=5.1.%20Company%20Overview) Range Resources Corporation is a leading independent U.S. natural gas and NGL producer, primarily focused on the Appalachian Basin, with its headquarters in Fort Worth, Texas - Range Resources Corporation (NYSE: RRC) is a leading independent U.S. natural gas and NGL producer[31](index=31&type=chunk) - The company's operations are primarily focused on the Appalachian Basin[31](index=31&type=chunk) - The company is headquartered in Fort Worth, Texas[31](index=31&type=chunk) [Forward-Looking Statements](index=8&type=section&id=5.2.%20Forward-Looking%20Statements) This report contains forward-looking statements regarding future events, well costs, asset sales, productivity, liquidity, commodity fundamentals, capital efficiency, and drilling activities, which are subject to significant business risks and uncertainties - Forward-looking statements include those regarding future well costs, anticipated asset sales, well productivity, future liquidity and financial flexibility, anticipated exports and related financial impacts, NGL market supply and demand, future commodity fundamentals and pricing, future capital efficiency, future shareholder value, emerging plays, capital expenditures, anticipated drilling and completion activities, play prospects, anticipated pipeline utilization, and future guidance information[33](index=33&type=chunk)[34](index=34&type=chunk) - These statements are based on assumptions and estimates management believes are reasonable but are subject to broad business risks and uncertainties, with no guarantee that these goals and forecasts will be achieved[34](index=34&type=chunk) - Factors affecting ultimate recovery include the scope of drilling programs, capital availability, drilling and production costs, commodity prices, drilling services and equipment availability, drilling results, lease expirations, transportation constraints, regulatory approvals, well spacing rules, in-place natural gas recovery, actual drilling results (including geological and mechanical factors affecting recovery), and other factors[35](index=35&type=chunk) - Range undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events that occur after their release date, unless required by law[34](index=34&type=chunk) [Investor and Media Contacts](index=10&type=section&id=5.3.%20Investor%20and%20Media%20Contacts) The report provides contact information for Range Resources' investor relations (Laith Sando, Matt Schmid) and media relations (Mark Windle) for inquiries - Investor contacts: Laith Sando (**817-869-4267**), Matt Schmid (**817-869-1538**)[37](index=37&type=chunk) - Media contact: Mark Windle (**724-873-3223**)[38](index=38&type=chunk) [Unaudited Financial Statements](index=13&type=section&id=Unaudited%20Financial%20Statements) [Statements of Operations](index=13&type=section&id=6.1.%20Statements%20of%20Operations) The statements of operations show significant year-over-year growth in total revenue and other income for Q2 2025 and year-to-date, primarily from increased natural gas, NGLs, and oil sales, and derivative fair value gains, leading to substantial net income growth Statements of Operations (Unaudited, in thousand USD) | Metric | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | Year-over-Year Change (%) | H1 2025 (thousand USD) | H1 2024 (thousand USD) | Year-over-Year Change (%) | | :------------------------------------------ | :--------------------- | :--------------------- | :------------------------ | :------------------- | :------------------- | :------------------------ | | Total Revenue and Other Income | $856,275 | $530,109 | 62% | $1,546,829 | $1,175,565 | 32% | | Natural Gas, NGLs and Oil Sales | $666,638 | $478,450 | 39% | $1,458,558 | $1,045,451 | 40% | | Fair Value Gains (Losses) on Derivatives | $154,747 | $16,808 | 821% | $(4,210) | $63,406 | -107% | | Total Costs and Expenses | $554,233 | $520,099 | 7% | $1,135,052 | $1,055,213 | 8% | | Income Before Income Taxes | $302,042 | $10,010 | 2917% | $411,777 | $120,352 | 242% | | Net Income | $237,578 | $28,704 | 728% | $334,630 | $120,842 | 177% | | Diluted Earnings Per Share | $0.99 | $0.12 | 725% | $1.39 | $0.49 | 184% | [Balance Sheet](index=14&type=section&id=6.2.%20Balance%20Sheet) As of June 30, 2025, Range Resources' total assets were **$7.11 billion**, a decrease from December 31, 2024, mainly due to reduced current assets, while total stockholders' equity increased to **$4.13 billion** Balance Sheet (Unaudited, in thousand USD) | Metric | June 30, 2025 (thousand USD) | December 31, 2024 (thousand USD) | | :------------------------------------------ | :--------------------------- | :--------------------------- | | Total Assets | $7,105,111 | $7,347,675 | | Current Assets | $272,616 | $636,982 | | Net Natural Gas and Oil Properties | $6,535,097 | $6,421,700 | | Total Liabilities and Stockholders' Equity | $7,105,111 | $7,347,675 | | Current Liabilities | $580,744 | $1,263,247 | | Senior Notes (Excluding Current Portion) | $1,090,607 | $1,089,614 | | Total Stockholders' Equity | $4,126,694 | $3,936,657 | [Cash Flows from Operating Activities](index=15&type=section&id=6.3.%20Cash%20Flows%20from%20Operating%20Activities) Net cash provided by operating activities significantly increased to **$336 million** in Q2 2025 from **$149 million** in Q2 2024, and to **$666 million** year-to-date 2025 from **$481 million** year-to-date 2024, driven by higher net income and changes in working capital Cash Flows from Operating Activities (Unaudited, in thousand USD) | Metric | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :-------------------------------- | :--------------------- | :--------------------- | :------------------- | :------------------- | | Net Income | $237,578 | $28,704 | $334,630 | $120,842 | | Net Cash Provided by Operating Activities | $336,188 | $148,775 | $666,273 | $480,705 | | Net Change in Working Capital | $43,368 | $(81,339) | $(18,042) | $(53,015) | [Non-GAAP Reconciliations](index=14&type=section&id=Non-GAAP%20Reconciliations) [Reconciliation of Total Debt to Net Debt](index=14&type=section&id=7.1.%20Reconciliation%20of%20Total%20Debt%20to%20Net%20Debt) Range Resources' net debt (non-GAAP) decreased by **13%** from **$1.40 billion** on December 31, 2024, to **$1.22 billion** on June 30, 2025, reflecting the company's debt reduction efforts Reconciliation of Total Debt to Net Debt (Unaudited, in thousand USD) | Metric | June 30, 2025 (thousand USD) | December 31, 2024 (thousand USD) | Change (%) | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------- | | Total Reported Debt (Net of Deferred Financing Costs) | $1,211,699 | $1,697,883 | -29% | | Less: Reported Cash and Cash Equivalents | $(134) | $(304,490) | - | | **Net Debt (Non-GAAP)** | **$1,224,866** | **$1,404,212** | **-13%** | [Reconciliation of Cash Flow from Operations Before Changes in Working Capital](index=15&type=section&id=7.2.%20Reconciliation%20of%20Cash%20Flow%20from%20Operations%20Before%20Changes%20in%20Working%20Capital) Cash flow from operations before changes in working capital (non-GAAP) significantly increased from **$237 million** in Q2 2024 to **$301 million** in Q2 2025, and from **$545 million** year-to-date 2024 to **$698 million** year-to-date 2025, indicating strong underlying operational cash generation Reconciliation of Cash Flow from Operations Before Changes in Working Capital (Unaudited, in thousand USD) | Metric | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :---------------------------------------------------------- | :--------------------- | :--------------------- | :------------------- | :------------------- | | Reported Net Cash Provided by Operating Activities | $336,188 | $148,775 | $666,273 | $480,705 | | **Cash Flow from Operations Before Changes in Working Capital (Non-GAAP)** | **$300,511** | **$236,902** | **$697,902** | **$544,800** | [Reconciliation of Natural Gas, NGLs and Oil Sales and Prices](index=16&type=section&id=7.3.%20Reconciliation%20of%20Natural%20Gas,%20NGLs%20and%20Oil%20Sales%20and%20Prices) This reconciliation details the components of natural gas, NGLs, and oil sales, including the impact of derivative settlements and transportation costs, with the average realized price after hedging and excluding third-party transportation costs increasing by **13%** to **$3.49 per Mcfe** in Q2 2025 Components of Natural Gas, NGLs and Oil Sales (Unaudited, in thousand USD) | Metric | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | Year-over-Year Change (%) | H1 2025 (thousand USD) | H1 2024 (thousand USD) | Year-over-Year Change (%) | | :------------------------------------------ | :--------------------- | :--------------------- | :------------------------ | :------------------- | :------------------- | :------------------------ | | Natural Gas Sales | $397,955 | $209,652 | 90% | $888,332 | $481,127 | 85% | | NGLs Sales | $238,034 | $228,285 | 4% | $513,688 | $484,361 | 6% | | Oil Sales | $30,649 | $40,513 | -24% | $56,538 | $79,963 | -29% | | **Total Reported Natural Gas, NGLs and Oil Sales** | **$666,638** | **$478,450** | **39%** | **$1,458,558** | **$1,045,451** | **40%** | Average Prices After Hedging and Excluding Third-Party Transportation Costs (per Mcfe) | Metric | Q2 2025 (per Mcfe) | Q2 2024 (per Mcfe) | Year-over-Year Change (%) | H1 2025 (per Mcfe) | H1 2024 (per Mcfe) | Year-over-Year Change (%) | | :------------------------------------------ | :----------------- | :----------------- | :------------------------ | :----------------- | :----------------- | :------------------------ | | Natural Gas (per Mcf) | $3.13 | $2.47 | 27% | $3.39 | $2.71 | 25% | | NGLs (per bbl) | $23.88 | $24.56 | -3% | $25.80 | $25.41 | 2% | | Oil (per bbl) | $54.22 | $68.12 | -20% | $57.39 | $67.63 | -15% | | **Natural Gas Equivalent (per Mcfe)** | **$3.49** | **$3.10** | **13%** | **$3.75** | **$3.32** | **13%** | [Reconciliation of Income Before Income Taxes Excluding Certain Items](index=17&type=section&id=7.4.%20Reconciliation%20of%20Income%20Before%20Income%20Taxes%20Excluding%20Certain%20Items) Adjusted income before income taxes (non-GAAP) increased by **42%** to **$205 million** in Q2 2025 and by **40%** to **$506 million** year-to-date, excluding the impact of non-cash and special items Reconciliation of Income Before Income Taxes Excluding Certain Items (Unaudited, in thousand USD) | Metric | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | Year-over-Year Change (%) | H1 2025 (thousand USD) | H1 2024 (thousand USD) | Year-over-Year Change (%) | | :------------------------------------------ | :--------------------- | :--------------------- | :------------------------ | :------------------- | :------------------- | :------------------------ | | Reported Income Before Income Taxes from Operations | $302,042 | $10,010 | 2917% | $411,777 | $120,352 | 242% | | **Adjusted Income Before Income Taxes** | **$204,914** | **$144,030** | **42%** | **$506,326** | **$360,811** | **40%** | | **Net Income Excluding Certain Items** | **$157,784** | **$110,903** | **42%** | **$389,871** | **$277,824** | **40%** | | Non-GAAP Diluted Earnings Per Share | $0.66 | $0.46 | 43% | $1.62 | $1.14 | 42% | [Reconciliation of Net Income, Excluding Certain Items and Adjusted EPS](index=18&type=section&id=7.5.%20Reconciliation%20of%20Net%20Income,%20Excluding%20Certain%20Items%20and%20Adjusted%20EPS) Net income excluding certain items (non-GAAP) increased by **42%** to **$158 million** in Q2 2025, with adjusted diluted EPS of **$0.66**, providing a clearer view of core operational profitability by removing the impact of non-recurring or non-cash items Reconciliation of Net Income, Excluding Certain Items and Adjusted EPS (in thousand USD, except per share data) | Metric | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :------------------------------------------ | :--------------------- | :--------------------- | :------------------- | :------------------- | | Reported Net Income | $237,578 | $28,704 | $334,630 | $120,842 | | **Net Income Excluding Certain Items (Non-GAAP)** | **$157,784** | **$110,903** | **$389,871** | **$277,824** | | Reported Diluted Earnings Per Share | $0.99 | $0.12 | $1.39 | $0.49 | | **Diluted Earnings Per Share Excluding Certain Items (Non-GAAP)** | **$0.66** | **$0.46** | **$1.62** | **$1.14** | [Reconciliation of Cash Margin per Mcfe](index=19&type=section&id=7.6.%20Reconciliation%20of%20Cash%20Margin%20per%20Mcfe) Cash margin (non-GAAP) increased by **27%** to **$305 million** in Q2 2025, with cash margin per Mcfe at **$1.53**, reflecting an improvement in cash revenue relative to cash expenditures Reconciliation of Cash Margin per Mcfe (Unaudited, in thousand USD, except per unit data) | Metric | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :------------------------------------------ | :--------------------- | :--------------------- | :------------------- | :------------------- | | Cash Revenue | $732,891 | $641,292 | $1,586,913 | $1,362,462 | | Cash Expenditures | $427,735 | $401,991 | $882,366 | $813,681 | | **Cash Margin (Non-GAAP)** | **$305,156** | **$239,301** | **$704,547** | **$548,781** | | Cash Margin per Mcfe | $1.53 | $1.22 | $1.77 | $1.40 |

Financial Data and Key Metrics Changes - In Q2 2025, Range Resources reported all-in capital expenditures of $154 million, generating production of 2.2 Bcf equivalent per day, with year-to-date capital tracking better than planned [10][11] - The company lowered the high end of its capital guidance to $680 million without altering planned operational activity, expecting annual production to exceed prior guidance [11][12] - Year-to-date, the company repurchased $120 million in shares and paid $43 million in dividends, returning $646 million to equity holders, approximately 7% of Range's market cap [20][21] Business Line Data and Key Metrics Changes - Range operated two horizontal rigs during Q2, drilling approximately 284,000 lateral feet across 20 laterals, averaging over 14,200 feet per well [12] - The drilling team set a new quarterly record by averaging approximately 6,250 lateral feet per day, while the completion team executed eight twelve frac stages, setting a new company record for the most stages pumped by a single crew in a quarter [12][13] Market Data and Key Metrics Changes - Natural gas inventory finished the quarter at approximately 3 TCF, down 6% from the prior year, supported by record high LNG feed gas, which reached over 17 Bcf per day in Q2 [14] - US NGL exports increased by 5% to 475,000 barrels per day for ethane and 1,800,000 barrels per day for propane compared to Q2 last year, with expectations for significant growth in export capacity [16][80] Company Strategy and Development Direction - Range's growth plans aim for approximately 20% growth through 2027, capitalizing on increasing demand for natural gas and NGLs, particularly in Pennsylvania [7][9] - The company emphasizes maintaining a disciplined reinvestment rate while delivering growth and shareholder returns, supported by low capital intensity and operational efficiencies [9][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong future demand for natural gas and NGLs, highlighting the company's financial strength and operational capabilities to meet this demand [17][18] - The management team noted that the natural gas market is expected to add 8.5 Bcf per day of new demand over the next eighteen months, which is supportive of near-term fundamentals [14] Other Important Information - Range achieved net zero for combined scope one and two greenhouse gas emissions this year, with an 83% reduction in methane emissions intensity over the last five years [17] - The company is preparing to launch its annual RFP for services for 2026, expecting to maintain a leading position on well cost and capital efficiency [14] Q&A Session Summary Question: Supply agreements and market oversupply concerns - Management acknowledged the significant interest in supply agreements and expressed confidence in Range's ability to meet future demand while managing production levels to avoid oversupply [32][36] Question: Future capital additions and growth - Management indicated that growth will be driven by clear demand signals and that they are focused on maximizing shareholder value through share buybacks and prudent growth strategies [39][44] Question: Contribution to in-basin demand growth - Management stated that Range has the capability to significantly contribute to in-basin demand growth, potentially doubling its current production base over the next decade [52][53] Question: Pricing dynamics and competitive positioning - Management highlighted the importance of surety of supply and competitive pricing structures in securing long-term contracts with customers, emphasizing Range's experience in structuring favorable deals [56][59] Question: Lateral footage requirements for growth targets - Management noted that they have been building lateral footage inventory over the past 24 months and are well-positioned to meet future growth targets with their current operational setup [99]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported capital expenditures of $154 million while generating production of 2.2 Bcf equivalent per day [8] - Year-to-date capital expenditures are tracking better than planned, with approximately $300 million invested in development and land capital in the first half of the year [10] - The company lowered the high end of its capital guidance to $680 million without altering planned operational activity [10] - The company expects annual production to exceed prior guidance, with production anticipated to be flat at 2.2 Bcf equivalent per day in Q3 and increasing to approximately 2.3 Bcf equivalent per day in Q4 [10][11] Business Line Data and Key Metrics Changes - The company operated two horizontal rigs during Q2, drilling approximately 284,000 lateral feet across 20 laterals, averaging over 14,200 feet per well [11] - The drilling team set a new quarterly record by averaging approximately 6,250 lateral feet per day [11] - The completion team executed eight twelve frac stages, setting a new company record for the most stages pumped by a single crew in a quarter, a 7% increase over the previous record [11] Market Data and Key Metrics Changes - Natural gas inventory finished the quarter at approximately 3 TCF, down 6% from the prior year, supported by record high LNG feed gas [13] - The U.S. natural gas market is expected to add 8.5 Bcf per day of new demand over the next eighteen months [13] - U.S. NGL exports continue to outperform, with ethane and propane exports increasing by 5% year-over-year [15] Company Strategy and Development Direction - The company aims for approximately 20% growth through 2027, positioning itself to benefit from increasing demand for natural gas and NGLs [6] - The company emphasizes maintaining a disciplined reinvestment rate while delivering significant returns to shareholders [7] - The company is focused on operational efficiency and capital returns, with a strong balance sheet allowing for opportunistic investments [21][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future of natural gas and NGLs, citing significant demand both globally and within Appalachia [18] - The company believes it is well-positioned to capitalize on strategic advantages, maintaining superior full-cycle margins through operational efficiency [28] - Management highlighted the importance of inventory quality and execution capability in addressing future demand [36] Other Important Information - The company achieved net zero for combined scope one and two greenhouse gas emissions and reduced methane emissions intensity by 83% over the last five years [17] - The effective cash tax rate is expected to be in the low single digits for 2025, improving to mid-single digits in 2026 and high single digits in 2027 [25] Q&A Session Summary Question: Supply agreements and market oversupply concerns - Management acknowledged ongoing discussions about supply agreements and emphasized the importance of inventory quality and execution capability in addressing future demand [34][36] Question: Adding capital for long-term growth - Management indicated that growth will be driven by clear demand signals and that they are prepared to deliver to both in-basin and long-haul transport demand [43] Question: Contribution to in-basin demand growth - Management expressed confidence in their ability to participate significantly in future demand growth due to their inventory and operational efficiency [52] Question: Pricing dynamics and competitive landscape - Management noted that surety of supply and inventory quality are critical for securing long-term contracts, and they are exploring various pricing structures to meet customer needs [56][58] Question: Lateral footage requirements for growth targets - Management stated that they have been building inventory over the past 24 months and are well-positioned to utilize this inventory to meet growth targets [99]

Company Overview - Range Resources is a top 10 U S producer of natural gas and NGLs, focused on the Appalachian Basin with over 30 years of core Marcellus inventory[6, 7] - The company expects to grow production by approximately 20% through 2027 with a reinvestment rate of less than 50%[12] - Range Resources has approximately 440,000 net acres in Southwest Pennsylvania and approximately 70,000 net acres in Northeast Pennsylvania[14] Financial Performance and Outlook - The company has demonstrated a history of durable free cash flow through commodity cycles[19] - Cumulative free cash flow from 2025 to 2027 is projected to be approximately $2 5 billion[28] - 2025 capital expenditures are guided at $650-$680 million[28, 33] Market Access and Diversification - Approximately 30% of Range's natural gas is directed to the Midwest, approximately 25% to the Gulf Coast, and approximately 25% to LNG and premium Gulf markets[17] - The company has secured 250 Mmcf/d of incremental natural gas takeaway accessing growing demand in Midwest and Gulf Coast markets in 2026[28] - Range Resources has 20 MBD of NGL takeaway and export capacity utilizing a new East Coast terminal in 2026[28] Natural Gas and NGL Fundamentals - U S LNG exports have grown from approximately 0 Bcf/d in 2015 to approximately 15 Bcf/d in early 2025[64] - Total U S demand growth of +27 Bcf/d is expected through 2030 from LNG and pipeline exports to Mexico, industrial and electric power demand growth[72] - The call on incremental U S supply for global LPG demand is approximately 870 MBD from 2025-2030[92] ESG Initiatives - The company achieved Net Zero for 2024 Scope 1 and 2 GHG emissions[105] - Range Resources has achieved an 83% reduction in methane emissions intensity since 2019[105] - In 2024, 56% of total water used for operations was reuse water[105]