Range Resources(RRC) - 2024 Q4 - Annual Results

Financial Performance - Range's 2024 cash flow from operating activities was $945 million, with a net income of $95 million, translating to $0.39 per diluted share[7][13]. - Total revenues and other income decreased by 33% year-over-year to $626,417,000 for the three months ended December 31, 2024, and by 28% to $2,417,084,000 for the twelve months ended December 31, 2024[50]. - Net income for the three months ended December 31, 2024, was $94,842,000, a decrease of 69% compared to $310,034,000 in the same period of 2023, and for the twelve months, it was $266,340,000, down 69% from $871,142,000[50]. - The company reported a net cash provided from operating activities of $217,890,000 for the three months ended December 31, 2024, and $944,514,000 for the twelve months, reflecting a decrease from $226,095,000 and $977,892,000, respectively[56]. - Total revenues for the twelve months ended December 31, 2024, were $2,213,850,000, a decrease of 5.2% from $2,334,661,000 in 2023[67]. - Adjusted earnings per diluted share for the twelve months ended December 31, 2024, was $2.30, down from $2.40 in 2023[65]. Production and Reserves - Proved reserves at year-end 2024 remained stable at 18.1 Tcfe, with positive performance revisions for the 17th consecutive year[7][22]. - Range's 2025 capital budget is projected to be between $650 million and $690 million, targeting annual production of approximately 2.2 Bcfe per day[6][26]. - The company plans to maintain a production level of 2.6 Bcfe per day by 2027, requiring approximately $570 million in annual drilling and completion capital[11]. - Total production of natural gas, NGLs, and oil for 2024 was 796,234,598 mcfe, a 2% increase from 780,574,707 mcfe in 2023[60]. Pricing and Sales - The average realized price for natural gas in Q4 2024 was $2.90 per mcfe, with a differential of ($0.44) to NYMEX[18]. - The company expects FY 2025 natural gas prices to range from $0.40 to $0.48 below NYMEX, with liquids prices ranging from $0.00 to $1.25 per barrel, and oil/condensate prices expected to be $10.00 to $15.00 below WTI[29]. - Natural gas sales increased to $337,176,000 in Q4 2024 from $320,393,000 in Q4 2023, representing a 5% growth[60]. - NGLs sales rose to $270,356,000 in Q4 2024, up from $238,423,000 in Q4 2023, marking a 13% increase[60]. - Oil sales decreased to $27,590,000 in Q4 2024 from $44,463,000 in Q4 2023, a decline of 38%[60]. Debt and Cash Flow Management - The company reduced net debt by $172 million, ending 2024 with approximately $1.40 billion in net debt[7][20]. - Current assets increased to $636,982,000 as of December 31, 2024, compared to $528,794,000 in 2023, while current liabilities rose significantly to $1,263,247,000 from $580,469,000[53]. - Total debt, net of deferred financing costs, decreased by 4% to $1,697,883,000 as of December 31, 2024, from $1,774,229,000 in 2023[54]. - The company emphasizes the importance of cash flow from operations before changes in working capital as a key financial indicator for funding exploration and development activities[36]. Hedging and Financial Strategy - The company maintains a strong hedging strategy to enhance cash flow predictability and financial flexibility[31]. - As of December 31, 2024, the combined fair value of natural gas basis hedges resulted in a net loss of $29.2 million, indicating the company's strategy to limit price volatility[32]. - The presentation of PV10 value of proved reserves is highlighted as a relevant metric for investors, providing a basis for evaluating estimated net cash flows[41]. Dividends and Shareholder Returns - Range's Board of Directors plans to approve a 12.5% increase in the quarterly cash dividend to $0.09 per share[21]. Other Financial Metrics - Basic net income per common share for the three months ended December 31, 2024, was $0.39, down from $1.29 in 2023, and diluted earnings per share was $0.39 compared to $1.27[50]. - Non-GAAP diluted earnings per share for 2024 was $0.68, up 6% from $0.64 in 2023[63]. - Cash margin for Q4 2024 was $314,556,000, representing a 5.4% increase from $298,445,000 in Q4 2023[68]. - Cash margin per mcfe for Q4 2024 was $1.55, up 5.4% from $1.47 in Q4 2023[67].