Range Resources Beats on Q2 Earnings, Raises Production Guidance

Core Insights - Range Resources Corporation (RRC) reported second-quarter 2025 adjusted earnings of 66 cents per share, exceeding the Zacks Consensus Estimate of 61 cents and improving from 46 cents in the prior year [1][9] - Total quarterly revenues reached $733 million, surpassing the Zacks Consensus Estimate of $724 million and increasing from $641 million year-over-year [1][9] Operational Performance - Production averaged 2,197.3 million cubic feet equivalent per day (Mcfe/d), up from 2,152.9 Mcfe/d in the same quarter last year and exceeding the projection of 2,184.4 Mcfe/d [3] - Natural gas contributed approximately 68% to total production, with natural gas production remaining flat year-over-year, oil production decreasing by 2%, and NGL output increasing by 7% [3] Price Realization - Total price realization averaged $3.33 per Mcfe, a 36% increase year-over-year, and higher than the estimate of $3.23 per Mcfe [4] - Natural gas price increased by 90% year-over-year to $2.92 per Mcf, while NGL price declined by 3% and oil price fell by 23% [4] Costs & Expenses - Total costs and expenses rose by 7% year-over-year to $554.2 million, which was lower than the expectation of $556.1 million [5] - Transportation, gathering, processing, and compression costs increased to $304.7 million from $281.5 million in the prior-year quarter [5] Capital Expenditure & Balance Sheet - Drilling and completion expenditure amounted to $136 million, with an additional $11 million spent on acreage and $7 million on infrastructure and other investments [6] - At the end of the second quarter, total debt was reported at $1,211.7 million, net of deferred financing costs [6] Outlook - Range Resources expects total production for 2025 to be 2.225 billion cubic feet equivalent per day, with more than 30% attributed to liquids production [7] - The company updated its capital budget for the year to a range of $650-$680 million [7]