Range Resources(US:RRC)2025-07-22 20:45Financial Performance - In Q2 2025, the company reported a net income of $237.6 million, or $0.99 per diluted common share, compared to $28.7 million, or $0.12 per diluted common share in Q2 2024, primarily due to increased realized prices and higher unrealized derivative fair value gains[82]. - For the first six months of 2025, net income was $334.6 million, or $1.39 per diluted common share, compared to $120.8 million, or $0.49 per diluted common share in the same period of 2024[86]. - Cash generated from operating activities in Q2 2025 was $336.2 million, an increase of $187.4 million from Q2 2024, reflecting the impact of higher realized prices[83]. - Cash flows from operating activities were $666.3 million in the first six months of 2025, compared to $480.7 million in the same period of 2024[109]. Revenue and Sales - Revenue from the sale of natural gas, NGLs, and oil increased by 39% in Q2 2025 compared to Q2 2024, driven by a 36% increase in average realized prices and a 2% increase in production volumes[84]. - Total natural gas, NGLs, and oil sales reached $1.458 billion in the first six months of 2025, compared to $1.045 billion in the same period of 2024, marking a 39.5% increase[91]. Production and Prices - The average NYMEX price for natural gas was $3.44 per mcf in Q2 2025, up from $1.88 per mcf in Q2 2024, while oil prices averaged $63.72 per bbl in Q2 2025, down from $80.49 per bbl in Q2 2024[80]. - Natural gas production for Q2 2025 was 136,297,159 mcf, a slight increase of 0% compared to Q2 2024's 136,099,063 mcf[90]. - NGLs production increased by 7% in Q2 2025 to 10,029,051 bbls, compared to 9,376,810 bbls in Q2 2024[90]. - Oil production decreased by 2% in Q2 2025 to 580,791 bbls, down from 593,020 bbls in Q2 2024[90]. - Average realized price for natural gas (excluding derivative settlements) rose by 90% to $2.92 per mcf in Q2 2025 from $1.54 per mcf in Q2 2024[90]. - Average realized price for oil (excluding derivative settlements) decreased by 23% to $52.77 per bbl in Q2 2025 from $68.32 per bbl in Q2 2024[90]. - Average realized price for NGLs (excluding derivative settlements) was $23.73 per bbl in Q2 2025, a decrease of 3% from $24.35 per bbl in Q2 2024[90]. Expenses - Direct operating expense per mcfe decreased to $0.11 in Q2 2025 from $0.12 in Q2 2024, while transportation and processing costs per mcfe increased to $1.52 in Q2 2025 from $1.44 in Q2 2024[84]. - General and administrative (G&A) expense was $42.1 million in Q2 2025, up from $40.1 million in Q2 2024, primarily due to timing of expenses[98]. - Interest expense decreased to $26.8 million in Q2 2025 from $29.7 million in Q2 2024, attributed to lower average outstanding debt balances[99]. - Depletion, depreciation, and amortization (DD&A) expense was $91.5 million in Q2 2025, compared to $87.6 million in Q2 2024, driven by a higher depletion rate and increased production volumes[100]. Stock and Liquidity - The company repurchased $52.9 million (1.5 million shares) of its common stock in Q2 2025 and $120.4 million (3.3 million shares) in the first six months of 2025[84][89]. - The company maintained substantial liquidity with $1.2 billion available under its credit facility[84][89]. - As of June 30, 2025, the company had approximately $1.2 billion of liquidity, including $134,000 in cash and $1.2 billion available under its bank credit facility[113]. Market Risks and Hedging - The company expects commodity prices to remain volatile due to various global factors, including geopolitical disruptions and supply chain issues[77]. - The company has hedged more than 30% of its projected natural gas production for the remainder of 2025[109]. - The company's derivative program includes swaps, collars, three-way collars, and swaptions, with a net unrealized gain of $5.6 million as of June 30, 2025[131]. - The fair value of swaps indicates a potential loss of $93.3 million with a 10% increase in commodity prices and a loss of $233.2 million with a 25% increase[133]. - The company is exposed to market risks related to natural gas, NGLs, and oil prices, which are difficult to predict and managed through various strategies[128]. Taxation - The effective tax expense was $64.5 million in Q2 2025, compared to a benefit of $18.7 million in Q2 2024[106]. - Taxes other than income increased to $7.4 million in Q2 2025 from $4.6 million in Q2 2024, reflecting a 33% rise due to higher drilling activities and natural gas prices[97].