Range Resources(US:RRC)2025-04-22 20:45Revenue and Production - In Q1 2025, the company reported a 40% increase in revenue from the sale of natural gas, NGLs, and oil compared to Q1 2024, driven by a 37% increase in average realized prices and a 2% increase in production volumes [74]. - Total natural gas, NGLs, and oil sales reached $791.9 million in Q1 2025, a 38% increase from $567.0 million in Q1 2024 [80]. - Daily production averaged 2.2 Bcfe in Q1 2025, up from 2.1 Bcfe in the same period of 2024, reflecting a 2% increase in total production [74]. - Natural gas production increased by 2% to 135,963,430 mcf in Q1 2025 from 132,650,240 mcf in Q1 2024, while oil production decreased by 31% to 423,579 bbls [78]. - Oil production decreased to 424 Mbbls in Q1 2025, down from 610 Mbbls in Q1 2024, a decline of 30.5% [79]. - NGLs sales rose to $275.7 million in Q1 2025, compared to $256.1 million in Q1 2024, marking a 7.7% increase [80]. Financial Performance - Net income for Q1 2025 was $97.1 million, or $0.40 per diluted share, compared to $92.1 million, or $0.38 per diluted share in Q1 2024 [75]. - The company generated $330.1 million in cash from operating activities in Q1 2025, a slight decrease of $1.8 million from Q1 2024 [76]. - Cash flows from operating activities were $330.1 million in Q1 2025, slightly down from $331.9 million in Q1 2024 [96]. - The company paid $21.6 million in dividends, increasing the per share dividend by 12.5% to $0.09 compared to $0.08 in Q1 2024 [77]. - The company used operating cash flows to fund $158.3 million of capital expenditures in the first three months of 2025 [103]. Expenses and Costs - Direct operating expenses per mcfe increased to $0.13 in Q1 2025 from $0.11 in Q1 2024, attributed to higher water hauling and pumping costs [77]. - Transportation, gathering, processing, and compression expenses increased to $306.1 million in Q1 2025, up 5% from $290.9 million in Q1 2024 [80]. - Direct operating expense increased to $25.4 million in Q1 2025 from $22.2 million in Q1 2024, reflecting an 18% increase per mcfe [84]. - General and administrative expense decreased to $41.7 million in Q1 2025 from $43.9 million in Q1 2024, a 9% decline per mcfe [84]. - Interest expense decreased to $29.2 million in Q1 2025 from $30.5 million in Q1 2024, a 6% reduction per mcfe [85]. - Depletion, depreciation, and amortization expense increased to $90.6 million in Q1 2025 from $87.1 million in Q1 2024, with a 2% increase per mcfe [86]. Market Conditions and Price Realization - Average NYMEX natural gas prices rose to $3.66 per mcf in Q1 2025 from $2.23 per mcf in Q1 2024, while oil prices decreased to $71.40 per bbl from $76.92 per bbl [73]. - Average realized prices for natural gas increased by 76% to $3.61 per mcf in Q1 2025 from $2.05 per mcf in Q1 2024 [79]. - Average realized prices for oil decreased by 5% to $61.12 per bbl in Q1 2025 from $64.64 per bbl in Q1 2024 [79]. Liquidity and Capital Structure - The company maintained substantial liquidity with $344.6 million in cash on hand and $1.3 billion available under its credit facility [77]. - As of March 31, 2025, the company had approximately $1.6 billion of liquidity, consisting of $344.6 million in cash on hand and $1.3 billion available under the bank credit facility [99]. - The total remaining share repurchase authorization was approximately $948.6 million as of March 31, 2025 [106]. - At March 31, 2025, the company had approximately $1.7 billion of debt outstanding, bearing fixed interest rates averaging 6.0% [109]. - The company has undrawn letters of credit of $164.1 million as of March 31, 2025, which reduce borrowing capacity under the bank credit facility [101]. Risk Management - The company continues to focus on managing price risk through hedging and optimizing operational efficiencies to enhance financial performance [71]. - The company is exposed to market risks related to natural gas, NGLs, and oil prices, with approximately 64% of proved reserves being natural gas [115]. - Derivative fair value loss was $159.0 million in Q1 2025, compared to a gain of $46.6 million in Q1 2024, indicating increased volatility in revenues [81]. - The fair value of the company's derivative contracts approximated a net unrealized loss of $108.3 million as of March 31, 2025 [118]. Other Income and Expenses - Other income rose to $3.2 million in Q1 2025, compared to $3.0 million in Q1 2024, reflecting stable interest income [83]. - Exploration expense rose to $6.4 million in Q1 2025 from $4.5 million in Q1 2024, a 41% increase [90]. - Taxes other than income rose to $6.8 million in Q1 2025 from $5.7 million in Q1 2024, with a 33% increase per mcfe [84]. - Income tax expense decreased to $12.7 million in Q1 2025 from $18.2 million in Q1 2024 [93].