Range Resources(US:RRC)2025-10-28 20:40Financial 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].