Range Resources(RRC) - 2023 Q4 - Annual Results

Financial Performance - The company reported fourth quarter 2023 revenues of $941 million and net income of $310 million, translating to $1.27 per diluted share, including a $291 million mark-to-market derivative gain[15][16]. - Total revenues and other income for Q4 2023 were $941,357, a decrease of 42% compared to $1,630,379 in Q4 2022[46]. - Net income for Q4 2023 was $310,034, down 62% from $814,236 in Q4 2022[46]. - Basic net income per share decreased to $1.29 in Q4 2023 from $3.38 in Q4 2022, representing a decline of 62%[47]. - Total costs and expenses for Q4 2023 were $554,411, a decrease of 12% compared to $632,556 in Q4 2022[46]. - Cash provided from operating activities for the twelve months ended December 31, 2023, was $977,892, a decrease from $1,864,744 in 2022[54]. - Total revenues for the twelve months ended December 31, 2023, were $2,334,661, down from $4,911,092 in 2022[68]. - The company reported a diluted earnings per share of $0.63 for Q4 2023, a decrease of 52% from $1.30 in Q4 2022[66]. Cash Flow and Capital Allocation - Range's 2023 free cash flow was allocated towards debt reduction and shareholder returns, with a net debt reduction of $292 million, resulting in a year-end net debt of approximately $1.58 billion[6][12]. - Cash flow from operations before working capital changes for Q4 2023 was $300 million, with total cash unit costs decreasing by 6% year-over-year to $1.83 per mcfe[6][17]. - Cash flow from operations before changes in working capital for Q4 2023 was $299,898, down 41.4% from $512,947 in Q4 2022[56]. - Cash margin for Q4 2023 was $298,445, a decrease of 41% from $506,621 in Q4 2022[68]. - The company reported a total debt of $1,774,229 as of December 31, 2023, down from $1,841,960 in 2022[50]. Production and Reserves - Proved reserves at year-end 2023 increased to 18.1 Tcfe, with a present value (PV10) of reserves under SEC methodology at $7.9 billion[21][22]. - Production of natural gas in Q4 2023 was 141,716,740 mcf, a 2% increase from 139,608,410 mcf in Q4 2022[60]. - Average daily production of oil in Q4 2023 was 7,136 bbl, a 7% increase from 6,696 bbl in Q4 2022[60]. - The company produced 203,085 Mmcfe during Q4 2023, a slight increase from 202,813 Mmcfe in Q4 2022[68]. Expenses and Costs - The company experienced a derivative fair value loss of $291,059 in Q4 2023, compared to a loss of $448,181 in Q4 2022[54]. - The company’s exploration expenses for the twelve months ended December 31, 2023, were $25,280, slightly up from $25,194 in 2022[46]. - Transportation, gathering, processing, and compression expense per mcfe in Q4 2023 was $1.39, a decrease of 4% from $1.45 in Q4 2022[60]. - Depletion, depreciation, and amortization expenses totaled $90.968 million, slightly up from $90.847 million[70]. - Stock-based compensation expenses totaled $10,638 for Q4 2023, slightly down from $11,140 in Q4 2022[66]. Market and Pricing - The average realized price for natural gas in Q4 2023 was $2.68 per Mcf, with a differential of ($0.48) to NYMEX, and the 2024 expected differential is projected to be ($0.40) to ($0.45)[19][20]. - Average price of natural gas (excluding derivative settlements) in Q4 2023 was $2.26 per mcf, a 59% decrease from $5.52 per mcf in Q4 2022[60]. - Natural gas sales in Q4 2023 were $320,393, down 58.4% from $770,571 in Q4 2022[60]. - Total oil and gas sales for Q4 2023 were $603,279, representing a 44% decrease compared to $1,086,697 in Q4 2022[60]. Future Outlook and Guidance - Range's 2024 all-in capital budget is expected to be between $620 million and $670 million, targeting flat production of approximately 2.12 to 2.16 Bcfe per day[5][24]. - The company plans to run two drilling rigs and one frac crew in 2024, with approximately $30 to $45 million allocated for drilling and completion capital to add to well-in-process inventory[5][25]. - Range's 2024 guidance includes direct operating expenses of $0.13 to $0.14 per mcfe and transportation, gathering, processing, and compression expenses of $1.45 to $1.55 per mcfe[26]. - The company expects to invest up to $30 million in targeted acreage to increase lateral lengths and future inventory, along with $15 to $20 million for water infrastructure improvements[5][25]. Company Overview and Strategy - Range Resources Corporation is a leading independent natural gas and NGL producer focused in the Appalachian Basin[38]. - Forward-looking statements regarding future performance are based on management's assumptions and estimates, subject to risks and uncertainties[39]. - The company has not disclosed its probable and possible reserves, focusing instead on broader terms like "resource potential"[42]. - Production forecasts depend on estimates of production decline rates and future drilling activity, which may be affected by commodity price changes[43].