Financial Data and Key Metrics Changes - Total capital expenditures for the quarter were $190 million, with year-to-date investments reaching $491 million, aligning with the full-year guidance of $650 to $680 million [5][16] - Average realized price for natural gas was $3.59 per unit, a $0.20 premium over the NYMEX average of $3.39 [16][17] - Year-to-date share repurchases totaled $177 million, with dividends paid amounting to nearly $65 million, and net debt reduced by $175 million since year-end [17][19] Business Line Data and Key Metrics Changes - Production for the quarter was 2.2 Bcfe per day, with expectations to increase to approximately 2.3 Bcfe per day in Q4 and 2.6 Bcfe per day by 2027, representing a 20% increase from current levels [6][8] - The company completed just over 1,000 frac stages during the quarter, achieving completion efficiencies of nearly 10 frac stages per day [9][10] - Cash operating expenses were reported at $0.11 per Mcfe, consistent with previous guidance [9] Market Data and Key Metrics Changes - The U.S. exported record volumes of LNG in Q3, with new LNG projects reaching FID, contributing to a total of approximately 9 Bcf per day of incremental feed gas demand [10][11] - The demand for NGLs, particularly ethane and propane, is expected to see substantial increases in export capacity, with strong international demand anticipated [13][14] Company Strategy and Development Direction - The company plans to maintain a low reinvestment rate while generating significant free cash flow, allowing for capital returns to shareholders [8][15] - Range Resources aims to leverage its high-quality inventory and operational efficiencies to meet increasing demand in the Midwest, Gulf Coast, and global LNG markets [7][12] - The company is focused on expanding infrastructure from Appalachia to support long-term energy needs [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate significant free cash flow through cycles, supported by a strong balance sheet and operational efficiencies [19][20] - The management highlighted the importance of infrastructure utilization and operational efficiencies as key drivers for future performance [38][39] Other Important Information - The company is actively engaged in discussions for long-term supply agreements, focusing on both in-state and potential out-of-state opportunities [50][51] - The management noted that the current credit rating has not hindered discussions with customers regarding long-term agreements [75][81] Q&A Session Summary Question: Can you provide insights on the work in progress inventory and its expected status by the end of 2026? - Management indicated that the capital allocation for 2026 will focus more on completing the DUC inventory, with a linear utilization trend expected [26][29] Question: What are the expectations for operational efficiencies and capital expenditures in 2026? - Management expects to maintain low cash operating expenses and continue improving efficiencies through returning to pad sites and utilizing existing infrastructure [32][33] Question: What is the outlook for NGL demand and pricing? - Management expressed optimism regarding NGL demand growth, particularly for propane and ethane, driven by increasing export capacity and international demand [40][42] Question: What is the status of supply agreements and potential expansions outside Pennsylvania? - Management confirmed ongoing discussions with potential end users, focusing primarily on Pennsylvania but open to opportunities outside the state [50][53] Question: How does the company view curtailments and production modulation in response to pricing volatility? - Management stated that they have historically utilized curtailments when pricing warranted, but have focused on shaping production to align with market conditions [92][96]

Financial Data and Key Metrics Changes - Total capital expenditures for the quarter were $190 million, with year-to-date investments at $491 million, aligning with the full-year guidance of $650 million to $680 million [5][16] - Average realized price for natural gas was $3.59 per unit, a $0.20 premium over the NYMEX average of $3.39 [16][19] - Cash operating expenses for the third quarter were $0.11 per Mcfe, consistent with previous guidance [9][32] Business Line Data and Key Metrics Changes - Production for the quarter was 2.2 Bcfe per day, with expectations to increase to approximately 2.3 Bcfe equivalent per day in Q4 and 2.6 Bcfe equivalent per day by 2027 [6][7] - The company completed over 1,000 frac stages during the quarter, achieving nearly 10 frac stages per day across all operations [9][10] - The company operated two horizontal rigs, drilling approximately 262,000 lateral feet across 16 laterals [8] Market Data and Key Metrics Changes - The U.S. exported record volumes of LNG in Q3, with new projects contributing to a total of approximately 9 Bcf per day of incremental feed gas demand [10][11] - Demand for NGLs is expected to see substantial increases, with ethane and propane benefiting from strong international demand [13][14] - The company noted a strong seasonal natural gas price differential of -$0.49 per Mcf versus the NYMEX index [14] Company Strategy and Development Direction - The company plans to maintain a flat annual capital expenditure over the next two years while adding 400 million ft³ equivalent per day of growth [8] - The focus remains on operational efficiencies, including returning to pad sites and utilizing existing infrastructure [10][32] - The company aims to play a key role in supplying U.S. markets with affordable, reliable natural gas, leveraging its high-quality inventory and financial strength [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for U.S. natural gas, driven by rising incomes and population growth [11][12] - The company anticipates a tightening gas marketing fundamental as additional LNG export capacity comes online [13] - Management highlighted the importance of infrastructure expansion in Appalachia to meet long-term energy needs [13][19] Other Important Information - Year-to-date, the company has repurchased $177 million in shares and paid nearly $65 million in dividends [17] - The company has reduced net debt by $175 million since year-end [17] - Management emphasized the resilience of free cash flow generation, enabling capital allocation options for growth and returns to shareholders [19] Q&A Session Summary Question: Can you provide insights on the work-in-progress inventory and expectations for 2026? - Management indicated that capital allocation in 2026 will focus more on completing the DUC inventory, with a linear utilization trend expected [26][29] Question: What are the expectations for operating expenses as inventory is drawn down? - Management expects cash operating expenses to remain low, with potential for slight improvements due to operational efficiencies [32][33] Question: What is the outlook for NGL demand and pricing? - Management expressed optimism for NGL demand growth, particularly for propane and ethane, supported by new export capacity and international demand [40][46] Question: What is the status of supply agreements and potential expansions? - Management noted ongoing discussions for supply agreements, primarily focused within Pennsylvania, with potential for expansion outside the state [50][53] Question: How does the company view curtailments and production modulation? - Management has utilized curtailments in the past when pricing warranted, but currently focuses on shaping production to align with market fundamentals [92][95]

Financial Data and Key Metrics Changes - Total capital expenditures for the quarter were $190 million, with year-to-date investments reaching $491 million, aligning with the revised full-year guidance of $650 to $680 million [3][12] - Average realized price for natural gas was $3.59 per unit, a $0.20 premium over the NYMEX average of $3.39 [12][13] - Cash operating expenses for the third quarter were $0.11 per Mcfe, consistent with previous guidance [6][23] Business Line Data and Key Metrics Changes - Production for the quarter was 2.2 Bcfe per day, with expectations to increase to approximately 2.3 Bcfe per day in Q4 and 2.6 Bcfe per day by 2027, representing a 20% increase from current levels [4][5] - The company completed over 1,000 frac stages during the third quarter, achieving completion efficiencies of nearly 10 frac stages per day [6][7] Market Data and Key Metrics Changes - The U.S. exported record volumes of LNG in Q3, with new LNG projects reaching FID, contributing to a total of approximately 9 Bcf per day of incremental feed gas demand [8][9] - Demand for NGLs is expected to see substantial increases, with strong international demand supporting improved pricing [10][11] Company Strategy and Development Direction - The company plans to maintain a flat annual capital expenditure while adding 400 million cubic feet equivalent per day of growth over the next two years, focusing on efficient capital returns to shareholders [5][12] - Range Resources aims to leverage its high-quality inventory and strong financial position to meet increasing demand in the Midwest, Gulf Coast, and global LNG markets [4][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate significant free cash flow and deliver value to shareholders, citing a strong operational performance and a favorable market environment for natural gas and NGLs [12][16] - The company anticipates a tightening of gas marketing fundamentals as additional LNG export capacity comes online in 2026 [10][16] Other Important Information - The company has repurchased $177 million in shares and paid nearly $65 million in dividends year-to-date, while reducing net debt by $175 million [13][14] - Management highlighted the importance of infrastructure expansion in Appalachia to support long-term energy needs [10][12] Q&A Session Summary Question: Can you provide insights on the work in progress inventory and its outlook for 2026? - Management indicated that capital allocation for 2026 will focus more on completing the DUC inventory, with expectations for a linear utilization trend over the year [18][20] Question: What are the opportunities for upside in 2026 and 2027? - Management noted potential efficiencies in operations and infrastructure utilization as key areas for upside performance [25][26] Question: How do you view the NGL market for 2026? - Management expressed optimism regarding demand growth for NGLs, with significant export capacity expansions expected [27][30] Question: What is the status of supply agreements and potential expansions? - Management confirmed ongoing discussions with potential end users, focusing on long-term reliable supply agreements [34][35] Question: What is needed for the credit agencies to upgrade the company to investment grade? - Management stated that the company is checking all boxes for an upgrade, with growth plans and asset quality supporting this potential [59][60]

Financial Performance and Outlook - The company expects to grow production by approximately 20% through 2027 with a reinvestment rate of less than 50%[12] - Cumulative free cash flow is projected to be greater than $2 billion from 2025-2027[28] - The company anticipates annual capital expenditures between $650 million and $700 million from 2025-2027[28] - The company's free cash flow breakeven is approximately $200 per Mcfe[28] Asset Base and Inventory - The company possesses over 30 years of high-quality Marcellus inventory[7, 14] - The company has approximately 440,000 net acres in Southwest Pennsylvania[15] - The company has approximately 70,000 net acres in Northeast Pennsylvania[15] - The company has 28 million lateral feet of undrilled Marcellus at YE 2024[16] Market Access and Strategy - Approximately 30% of the company's natural gas is directed to the Midwest market[18] - Approximately 25% of the company's natural gas is directed to the Gulf Coast market[18] - Approximately 25% of the company's natural gas is directed to LNG and premium Gulf markets[18]

Core Insights - Range Resources (RRC) reported quarterly earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, and showing an increase from $0.48 per share a year ago, resulting in an earnings surprise of +14.00% [1] - The company achieved revenues of $717.62 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.90% and up from $680.17 million year-over-year [2] - Range Resources has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.69 on revenues of $762.2 million, while for the current fiscal year, the estimate is $2.76 on revenues of $3.02 billion [7] - The company's earnings outlook is crucial for investors, as it reflects current consensus expectations and any recent changes in those expectations [4] Stock Performance - Range Resources shares have increased by approximately 3.8% since the beginning of the year, in contrast to the S&P 500's gain of 16.9%, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting it is expected to underperform the market in the near future due to unfavorable estimate revisions prior to the earnings release [6] Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently ranked in the bottom 19% of over 250 Zacks industries, which may negatively impact the performance of stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, highlighting the importance of monitoring these revisions for investment decisions [5]

Financial Performance - In Q3 2025, the company reported a net income of $144.3 million, or $0.60 per diluted share, compared to $50.7 million, or $0.21 per diluted share in Q3 2024, primarily due to increased realized prices and a higher unrealized derivative fair value gain[78]. - Revenue from the sale of natural gas, NGLs, and oil increased by 15% in Q3 2025 compared to Q3 2024, driven by a 13% increase in average realized prices and a 1% increase in production volumes[80]. - For the first nine months of 2025, net income was $478.9 million, or $1.99 per diluted share, compared to $171.5 million, or $0.70 per diluted share in the same period of 2024, reflecting increased realized prices[82]. - Total revenue from natural gas, NGLs, and oil sales for the first nine months of 2025 was $2.07 billion, a 31% increase from $1.58 billion in the same period of 2024[85]. - Total natural gas, NGLs, and oil sales for Q3 2025 amounted to $611,491,000, up from $533,277,000 in Q3 2024, representing a 14.6% increase[87]. Production and Sales - Natural gas production for Q3 2025 was 141,133,949 mcf, a 2% increase from 138,193,783 mcf in Q3 2024[86]. - NGLs production decreased by 1% to 10,158,612 bbls in Q3 2025 from 10,254,759 bbls in Q3 2024, while oil production fell by 7% to 479,142 bbls[86]. - Average daily production of natural gas for the first nine months of 2025 was 1,514,266 mcf, a 2% increase from 1,485,194 mcf in the same period of 2024[86]. - NGLs sales for the first nine months of 2025 were $738,064,000, down from $750,547,000 in the same period of 2024, a decrease of 1.7%[87]. - Oil sales for the first nine months of 2025 were $82,529,000, a decline from $112,915,000 in the same period of 2024, representing a 26.8% decrease[87]. Expenses - Direct operating expenses per mcfe remained flat at $0.12 in the first nine months of 2025 compared to the same period in 2024[85]. - Transportation, gathering, processing and compression expense was $301.1 million in Q3 2025, a decrease of 2% from $306.2 million in Q3 2024, primarily due to lower NGLs prices[88]. - For the first nine months of 2025, transportation, gathering, processing and compression expense increased to $911.9 million, up 4% from $878.5 million in the same period of 2024, driven by higher NGLs volumes and electricity costs[89]. - General and administrative (G&A) expense increased to $44.7 million in Q3 2025 from $41.5 million in Q3 2024, mainly due to higher employee-related costs and legal fees[96]. - Depletion, depreciation, and amortization (DD&A) expense rose to $93.8 million in Q3 2025 from $91.1 million in Q3 2024, and to $275.9 million in the first nine months of 2025 from $265.9 million in the same period of 2024, driven by a higher depletion rate and increased production volumes[98]. Cash Flow and Liquidity - The company generated $913.8 million in cash from operating activities in the first nine months of 2025, an increase of $187.2 million from the same period in 2024[83]. - Cash flows from operating activities for the first nine months of 2025 were $913.8 million, an increase of 25.8% compared to $726.6 million in the same period of 2024[107]. - Total sources of cash and cash equivalents for the nine months ended September 30, 2025, amounted to $1.83 billion, significantly higher than $786.96 million in 2024[106]. - As of September 30, 2025, the company had approximately $1.2 billion in liquidity, consisting of $175,000 in cash and $1.2 billion available under its bank credit facility[111]. - The company expects to maintain sufficient liquidity and capital resources to execute its business plan across a wide range of commodity price scenarios[105]. Debt and Interest - The average debt outstanding decreased to $1,278.8 million in the first nine months of 2025 from $1,718.6 million in the same period of 2024, a reduction of 26%[97]. - As of September 30, 2025, total debt amounted to approximately $1.2 billion, with $1.1 billion in senior notes at fixed interest rates, representing about 90% of total debt[134]. - Interest expense decreased to $24.3 million in Q3 2025 from $29.3 million in Q3 2024, and to $80.2 million in the first nine months of 2025 from $89.5 million in the same period of 2024, attributed to lower average outstanding debt balances[97]. Dividends and Stock Repurchase - The company repurchased $176.6 million worth of common stock (4.9 million shares) in the first nine months of 2025 and paid $64.4 million in dividends, increasing the per-share dividend by 12.5% to $0.27[85]. - The board of directors approved a dividend of $0.09 per share, payable on September 26, 2025, with future dividends dependent on cash flow and capital expenditures[118]. Market Conditions and Expectations - The company expects continued volatility in commodity prices due to various global factors, including geopolitical tensions and supply chain disruptions[72]. - The company has diversified its counterparty credit risk among fourteen financial institutions, with ten being secured lenders in its bank credit facility[133].

Core Insights - Range Resources Corporation reported strong third quarter 2025 financial results, highlighting significant free cash flow generation, share repurchases, and dividends while maintaining a stable net debt level of $1.2 billion [3][5][11]. Financial Performance - GAAP revenues for Q3 2025 were $749 million, with net cash provided from operating activities at $248 million and net income of $144 million ($0.60 per diluted share) [5][38]. - Adjusted net income, a non-GAAP measure, was $135 million ($0.57 per diluted share) [6][5]. - Cash flow from operations before changes in working capital was $279 million [6][48]. Cost Structure - Total cash unit costs decreased by 3% year-over-year to $1.91 per mcfe, with direct operating expenses down 8% to $0.11 per mcfe [6][8]. - Interest expense decreased by 21% to $0.11 per mcfe [6]. Production and Pricing - Average production for Q3 2025 was 2.23 Bcfe per day, with natural gas comprising approximately 69% of total production [7][8]. - Realized price for natural gas, including hedges, was $3.29 per mcfe, representing a $0.22 premium over NYMEX [7][9]. Shareholder Returns - The company repurchased $56 million in shares and paid $21 million in dividends during the quarter [7][10]. - As of September 30, 2025, Range had approximately $839 million available under its share repurchase program [10]. Capital Expenditures - Capital spending for Q3 2025 was $190 million, representing about 29% of the annual budget [7][12]. - Total capital spending through Q3 was $491 million, or approximately 74% of the 2025 capital budget [12]. Debt and Financial Position - As of September 30, 2025, net debt was approximately $1.23 billion, with a new revolving bank credit facility established, maturing in 2030 [11][11]. - The amended facility maintains a maximum of $4.0 billion and an initial borrowing base of $3.0 billion [11]. Guidance - The company updated its 2025 capital budget to $650 million - $680 million and expects annual production of approximately 2.23 Bcfe per day [16]. - Direct operating expenses are projected to remain between $0.12 - $0.13 per mcfe for 2025 [17].

Core Viewpoint - Range Resources Corporation will release its third quarter 2025 financial results on October 28, 2025, after the market closes [1] Group 1: Financial Results Announcement - The financial results news release is scheduled for October 28, 2025 [1] - A conference call to discuss the financial results will take place on October 29, 2025, at 9:00 a.m. ET [2] - The webcast of the conference call will be available for replay on the company's website until November 29, 2025 [2] Group 2: Company Overview - Range Resources Corporation is a leading independent natural gas and NGL producer in the U.S., primarily operating in the Appalachian Basin [3] - The company is headquartered in Fort Worth, Texas [3] - Additional information about Range Resources can be found on their official website [3]

Core Insights - Range Resources Corporation (NYSE:RRC) is recognized as a promising energy stock by Wall Street analysts, with a price target adjustment from $45 to $41 while maintaining an "Outperform" rating, indicating potential upside if the gas outlook improves in the coming years [1][2] Group 1: Company Positioning - Range Resources is well-positioned to capitalize on in-basin demand opportunities and the global call for natural gas, being one of the few producers in Appalachia with sufficient high-quality inventory to support growth in baseload supply [2] - The company’s operational efficiencies are bolstered by countercyclical investments in drilled inventory and consistent well performance [2] Group 2: Financial Guidance - The all-in capital budget for 2025 is set at $650 million to $680 million, an improvement from the previous guidance of $650 million to $690 million [3] - Annual production is projected to be approximately 2.225 billion cubic feet equivalent (Bcfe) per day in 2025, updated from the earlier estimate of around 2.2 Bcfe per day [3]

Group 1 - Raymond James has lowered the price target on Range Resources (RRC) to $41 from $45 while maintaining an Outperform rating on the shares [1] - The firm anticipates greater upside potential for Range Resources if its strong gas outlook materializes over the next few years [1]