Range Resources(US:RRC)2023-07-24 20:46Financial Performance - In Q2 2023, the company reported net income of $30.2 million, or $0.12 per diluted share, a significant decrease from $452.9 million, or $1.77 per diluted share in Q2 2022[98]. - For the first six months of 2023, net income was $511.7 million, or $2.07 per diluted share, compared to a net loss of $4.0 million, or $0.02 per diluted share in the same period of 2022[102]. - Cash flow from operating activities in Q2 2023 was $126.6 million, a decrease of $198.1 million from Q2 2022[101]. - Cash flows from operating activities for the first six months of 2023 were $601.5 million, down from $731.1 million in the same period of 2022, reflecting lower realized prices and a positive change in working capital of $27.4 million compared to a negative $256.8 million in 2022[133]. Revenue and Sales - Revenue from the sale of natural gas, NGLs, and oil decreased by 65% year-over-year in Q2 2023, with a 66% decrease in average realized prices[100]. - In Q2 2023, natural gas, NGLs, and oil sales decreased by 65% to $468.4 million compared to $1.36 billion in Q2 2022, with a 66% decrease in average realized prices[107]. - For the first six months of 2023, total sales decreased by 50% to $1.20 billion from $2.39 billion in the same period of 2022, with a 51% decrease in average realized prices[107]. - NGLs sales decreased to $200.7 million in Q2 2023, down from $374.7 million in Q2 2022, reflecting a variance of $197.3 million[109]. - Crude oil sales fell to $42.3 million in Q2 2023, a decrease of $24.3 million compared to $72.4 million in Q2 2022[109]. Production Metrics - Daily production averaged 2.1 Bcfe in both Q2 2023 and Q2 2022, indicating stable production levels despite price fluctuations[99]. - Average daily production of natural gas was 1.42 billion cubic feet (mcf) in Q2 2023, a 2% decrease from 1.45 billion mcf in Q2 2022[107]. - NGLs production increased by 6% to 9.33 million barrels in Q2 2023 compared to 8.78 million barrels in Q2 2022[107]. - Crude oil production decreased by 8% to 658,249 barrels in Q2 2023 from 716,168 barrels in Q2 2022[107]. - The company reported a total production of 189.35 million cubic feet equivalent (mcfe) in Q2 2023, a slight increase of 0.3% from 188.73 million mcfe in Q2 2022[107]. Price Realizations - Average realized price for natural gas was $1.74 per mcf in Q2 2023, down 75% from $6.91 per mcf in Q2 2022[108]. - The average realized price for NGLs was $21.51 per barrel in Q2 2023, down 50% from $42.65 per barrel in Q2 2022[108]. - The average realized price for crude oil was $64.27 per barrel in Q2 2023, a decrease of 36% from $101.15 per barrel in Q2 2022[108]. - Average realized prices for natural gas decreased to $2.47 per mcfe in Q2 2023, down from $7.19 per mcfe in Q2 2022, reflecting a variance of $4.72[109]. Expenses and Costs - Transportation, gathering, processing, and compression expenses were $268.2 million in Q2 2023, a decrease of 18% from $327.9 million in Q2 2022[110]. - Direct operating expense increased to $23.9 million in Q2 2023 from $20.1 million in Q2 2022, reflecting an increase of 18%[114]. - General and administrative (G&A) expense was $39.5 million in Q2 2023, down from $42.9 million in Q2 2022, a decrease of 8%[116]. - Interest expense decreased to $31.1 million in Q2 2023 from $42.0 million in Q2 2022, a reduction of 26%[117]. - Total transportation, gathering, processing, and compression expenses for the first six months of 2023 were $553.7 million, a decrease of 12% from $625.7 million in the same period of 2022[110]. Debt and Liquidity - As of June 30, 2023, the company had $162.1 million in cash and $1.2 billion available under its credit facility, enhancing liquidity[104]. - The company had approximately $1.8 billion of debt outstanding at fixed rates averaging 6.0% as of June 30, 2023[149]. - Average debt outstanding decreased by 28% to $1.83 billion in Q2 2023 from $2.56 billion in Q2 2022[118]. - Total sources of cash and cash equivalents decreased to $870.0 million in the first half of 2023 from $1,943.8 million in the same period of 2022[132]. Derivative Instruments and Risk Management - The company is exposed to market risks related to the volatility of natural gas, NGLs, and oil prices, employing commodity derivative instruments for price protection[154]. - As of June 30, 2023, the fair value of the company's derivative contracts approximated a net unrealized pretax gain of $216.8 million[155]. - The company has hedged 381,658 Mmbtu/day of natural gas through swaps at a weighted average hedge price of $3.52 for 2023[155]. - The company has entered into various derivative contracts, including swaps, collars, and three-way collars, to manage commodity price risks effectively[155]. Capital Expenditures and Investments - Additions to natural gas properties for the first six months of 2023 were $277.1 million, consistent with the company's 2023 capital budget[134]. - The company repurchased 400,000 shares for a total of $9.7 million as part of its stock repurchase program during the first half of 2023[135]. Emissions and Sustainability - The company aims to reduce emissions and target net-zero Scope 1 and Scope 2 greenhouse gas emissions by year-end 2025[93].