[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]

Group 1 - Range Resources (NYSE: RRC) has underperformed the overall market despite being rated as 'Outperform/Buy' [1] - The investment strategy focuses on generating alpha through a generalist approach across various sectors, with a typical holding period of a few quarters to multiple years [1] - The research methodology includes maintaining comprehensive spreadsheets with historical financial data, key metrics, guidance trends, and performance indicators [1] Group 2 - The analyst emphasizes the importance of assessing a company's delivery and outlook on five key drivers of DCF valuation: revenues, costs and margins, cash flow conversion, capex and investments, and interest rates [1] - There is no current stock or derivative position in any mentioned companies, and no plans to initiate such positions within the next 72 hours [1]

分组1 - Range Resources reported quarterly earnings of $0.66 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, and showing an increase from $0.46 per share a year ago, resulting in an earnings surprise of +8.20% [1] - The company achieved revenues of $732.89 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.20%, and up from $641.29 million year-over-year [2] - Over the last four quarters, Range Resources has consistently surpassed consensus EPS and revenue estimates [2] 分组2 - The stock has underperformed, losing about 1.9% since the beginning of the year, compared to the S&P 500's gain of 7.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.68 on revenues of $748.52 million, and for the current fiscal year, it is $3.02 on revenues of $3.15 billion [7] - The Zacks Industry Rank for Oil and Gas - Exploration and Production - United States is in the bottom 28% of over 250 Zacks industries, indicating potential challenges for the sector [8]

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR (State or Other Jurisdiction of Incorporation or Organization) Delaware 34-1312571 (IRS Employer Identification No.) 100 Throckmorton Street, Suite 1200 Fort Worth, Texas 76102 (Address of p ...

Core Insights - Range Resources Corporation reported strong financial results for the second quarter of 2025, highlighting efficiency gains and consistent well performance that contributed to significant free cash flow and operational momentum [3][5][7]. Financial Performance - GAAP revenues for Q2 2025 reached $856 million, a 62% increase from $530 million in Q2 2024 [5][37]. - GAAP net income was $238 million, or $0.99 per diluted share, compared to $28.7 million, or $0.12 per diluted share in the same quarter last year, marking a 728% increase [5][38]. - Cash flow from operations was $336 million, with adjusted net income of $158 million, or $0.66 per diluted share [6][7]. Operational Efficiency - The company achieved a production average of 2.20 Bcfe per day, with approximately 68% being natural gas [7]. - Total cash unit costs increased by 5% to $1.97 per mcfe compared to $1.88 per mcfe in Q2 2024 [8]. - Capital expenditures for Q2 2025 were $154 million, representing about 23% of the annual budget [7][11]. Shareholder Returns - Range Resources returned $74 million to shareholders through share repurchases and dividends, repurchasing $53 million worth of shares [3][7][9]. - The company reduced its net debt to $1.2 billion, down from $1.7 billion [3][10][43]. Production and Pricing Guidance - The company updated its 2025 production guidance to approximately 2.225 Bcfe per day, up from the previous estimate of 2.2 Bcfe per day [15]. - The expected natural gas differential for 2025 is projected to average between ($0.40) to ($0.48) relative to NYMEX [11][18]. Future Outlook - Range Resources is well-positioned to capitalize on in-basin demand opportunities and a global call for natural gas, supported by its high-quality inventory [3][4]. - The company plans to continue its countercyclical investments in drilled inventory to support future growth [3][12].

Core Viewpoint - Range Resources Corporation (RRC) has shown resilience with a 5.5% share price increase over the past six months, contrasting with a 20.7% decline in the oil-energy sector and a 3.6% rise in the S&P 500 composite [1][6] Financial Performance - RRC's market capitalization stands at $9.3 billion [1] - The Zacks Consensus Estimate projects a 38.3% year-over-year increase in RRC's 2025 earnings per share (EPS) and a 14.3% rise in revenues to $3.2 billion [3][6] - The company has achieved a 34.3% earnings growth over the last five years, surpassing the industry average of 26.1% [3] - Long-term earnings growth is anticipated at 40.8%, exceeding the industry average of 20.5% [4] Valuation and Price Targets - The average price target for RRC, based on 22 analysts, is $42.18 per share, indicating an 8.26% upside from the last closing price [5] - RRC is currently trading at a trailing 12-month EV/EBITDA of 10.01X, which is lower than the broader industry average of 11.07X [8] - The 2026E EV/EBITDA multiple is projected at 6.5X, significantly below sector peers and broader equity indices [14] Cash Flow and Capital Management - RRC has consistently generated free cash flow, with a cumulative $3.2 billion from 2021 to 2024 [13] - The forecast for 2025 free cash flow exceeds $450 million, with potential to surpass $1 billion at $4.50/MMBtu natural gas prices [6][13] - The company operates with a capital reinvestment rate below 50%, allowing for a production growth of approximately 20% through 2027 while returning capital to shareholders [13] Resource Base and Operational Efficiency - RRC holds over 30 years of high-quality, undrilled Marcellus inventory, with approximately 28 million lateral feet of drilling potential [10] - The inventory breaks even at natural gas prices below $2.50/MMBtu, with some assets viable under $2.00/MMBtu [12] - The company benefits from low capital intensity and peer-leading well costs, enabling sustained value creation even in modest commodity price scenarios [15] Environmental, Social, and Governance (ESG) Practices - RRC achieved net-zero Scope 1 and 2 greenhouse gas emissions in 2024 and reduced methane intensity by 83% since 2019 [16] - The company recycles more than 100% of its produced water and has implemented an extensive leak detection program [16] - These practices enhance stakeholder relations and support a long-term license to operate in Appalachia [17]

Core Viewpoint - Range Resources Corporation will release its second quarter 2025 financial results on July 22, 2025, after the market closes [1] Group 1 - A conference call to discuss the financial results is scheduled for July 23, 2025, at 9:00 a.m. ET [2] - The conference call will be available via webcast, which will be archived for replay until August 23, 2025 [2] - Range Resources Corporation is a leading independent natural gas and NGL producer, primarily operating in the Appalachian Basin [3]