Why Is Range Resources (RRC) Down 7.4% Since Last Earnings Report?

Core Viewpoint - Range Resources Corporation reported strong second-quarter earnings, beating estimates and raising production guidance, despite a recent decline in share price [2][8]. Financial Performance - Adjusted earnings for Q2 2025 were 66 cents per share, surpassing the Zacks Consensus Estimate of 61 cents and improving from 46 cents in the prior year [2]. - Total quarterly revenues reached $733 million, exceeding the Zacks Consensus Estimate of $724 million and up from $641 million year-over-year [2]. Operational Performance - Average production was 2,197.3 million cubic feet equivalent per day (Mcfe/d), higher than the previous year's 2,152.9 Mcfe/d and above the projected 2,184.4 Mcfe/d [4]. - Natural gas accounted for approximately 68% of total production, with oil production decreasing by 2% and NGL output increasing by 7% year-over-year [4]. Price Realization - Total price realization averaged $3.33 per Mcfe, a 36% increase year-over-year, and higher than the estimated $3.23 per Mcfe [5]. - Natural gas prices rose by 90% year-over-year to $2.92 per Mcf, while NGL prices fell by 3% and oil prices dropped by 23% [5]. Costs and Expenses - Total costs and expenses increased by 7% year-over-year to $554.2 million, but were lower than the expected $556.1 million [6]. - Significant costs included transportation, gathering, processing, and compression, which rose to $304.7 million from $281.5 million in the prior year [6]. Capital Expenditure and Balance Sheet - Drilling and completion expenditures totaled $136 million, with an additional $11 million on acreage and $7 million on infrastructure [7]. - Total debt at the end of Q2 was reported at $1,211.7 million, net of deferred financing costs [7]. Outlook - Range Resources anticipates total production for 2025 to be 2.225 billion cubic feet equivalent per day, with over 30% attributed to liquids production [8]. - The capital budget for the year has been updated to a range of $650-$680 million [8]. Estimate Trends - Estimates for the stock have trended downward over the past month, with a consensus estimate shift of -6.34% [9][10]. - The stock currently holds a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [12]. VGM Scores - Range Resources has an average Growth Score of C, a Momentum Score of F, and a Value Score of B, placing it in the top 40% for the value investment strategy [11]. - The aggregate VGM Score for the stock is D, which is relevant for investors not focused on a single strategy [11].