Range Resources (RRC) Q1 2025 Earnings Call April 23, 2025 09:00 AM ET Company Participants Laith Sando - SVP - Corporate Strategy & Investor RelationsDennis Degner - CEO & PresidentMark Scucchi - Executive VP & CFOJacob Roberts - DirectorKevin MacCurdy - Managing DirectorMichael Scialla - Managing DirectorJohn Annis - Vice PresidentNeil Mehta - Head of Americas Natural Resources Equity ResearchDavid Deckelbaum - Managing Director: Sustainability & Energy Transition Conference Call Participants Doug Leggate ...

The last few weeks may feel like months for investors trying to make sense of huge swings to the upside and the downside in the broader market. The Nasdaq Composite's (^IXIC 0.64%) over 12% pop on April 9 pole-vaulted the index out of bear market territory -- which is a decline of over 20% from a recent high. However, a subsequent sell-off on Thursday pushed the Nasdaq within striking distance of being back in a bear market.Bear markets have historically been phenomenal times to put hard-earned savings to w ...

Aon plc (AON) recently announced a 10% dividend hike for its Class A ordinary shares, showcasing its strong financial position and a positive signal for long-term investors. The quarterly cash dividend now stands at 74.5 cents per share ($2.98 on an annualized basis), a nice jump from the earlier amount of 67.5 cents per share. Based on the stock’s April 11 closing price of $376.30, the new dividend yield is 0.79%, which is below the industry average of 0.98%. AON bought back shares worth $800 million in 20 ...

The oil stock beat the market in Q1. Here's why it remains a buy on any dip.The Nasdaq Composite (^IXIC 2.55%) plunged 10.4% in the first quarter of 2025. Oil stock Chevron (CVX 1.29%), however, bucked the broader market trend and surged 15.5% instead in Q1, according to data provided by S&P Global Market Intelligence.Energy was among the best-performing sectors in Q1. As one of the world's largest oil and gas producers, Chevron stock rode the energy rally. There was, however, a lot more to Chevron stock's ...

Core Viewpoint - The energy sector is currently the best-performing stock market sector, with a year-to-date increase of 7.9%, contrasting with a 5.1% decline in the S&P 500, driven by leading oil and gas companies that provide safety amid economic uncertainty and trade tensions [1] Group 1: Company Performance and Cash Flow - ExxonMobil, Chevron, and ConocoPhillips are highlighted as strong dividend stocks due to their ability to generate significant free cash flow (FCF) even at current oil prices [2][3] - ExxonMobil aims to break even at $30 per barrel Brent by 2030 and projects $110 billion in surplus cash through 2030, even if Brent averages $55 per barrel [4] - Chevron expects to generate $5 billion in FCF at $70 Brent in 2025 and $6 billion in 2026, with 75% of its oil investments breaking even below $50 per barrel Brent [5] - ConocoPhillips is investing in long-term projects expected to yield $6 billion in incremental FCF, supported by its acquisition of Marathon Oil [6] Group 2: Capital Return Programs - All three companies are returning substantial amounts to shareholders, with ExxonMobil returning $36 billion in 2024, Chevron over $75 billion between 2022 and 2024, and ConocoPhillips planning to return $10 billion in 2025 [7][8][9] - Despite high yields, these companies spent more on buybacks than dividends in 2024, indicating strong FCF generation and providing a cushion against falling oil prices [10] Group 3: Financial Health and Valuation - ExxonMobil, Chevron, and ConocoPhillips maintain strong balance sheets with debt-to-capital ratios near 10-year lows, allowing them to support operations and capital expenditures with FCF [12][13] - The companies exhibit reasonable valuations with low price-to-earnings and price-to-FCF ratios, suggesting they are good investment values [14] - Valuation metrics are based on trailing-12-month results, and while margins may decrease with lower oil prices in 2025, acquisitions and expansions could still drive earnings and FCF growth [15][16][17] Group 4: Investment Appeal - ExxonMobil, Chevron, and ConocoPhillips are positioned to grow cash flows and return profits to shareholders, offering yields significantly higher than the S&P 500 average of 1.3%, making them attractive for passive income investors [18] - Although energy is not typically viewed as a safe sector, these high-quality companies are considered safe stocks due to their strong balance sheets and manageable payouts [19]

Chevron Corporation (CVX) has had a good year so far, hitting a 52-week high of $168.96 on March 26. The stock has climbed 16.3% year to date, outperforming rival ExxonMobil’s (XOM) 10.6% gain. This impressive run has been driven by strong production growth, attractive shareholder returns and a competitive valuation. However, headwinds such as legal hurdles surrounding its Hess Corporation (HES) acquisition, asset sale risks and Venezuela challenges raise the question: Has Chevron’s stock run its course, or ...

Core Viewpoint - J.P. Morgan analyst Arun Jayaram has reiterated an Underweight rating on Valaris Limited, lowering the price forecast from $40 to $38, indicating concerns about the company's ability to meet its EBITDA guidance for 2025 despite fleet rationalization efforts [1] Financial Projections - The analyst has revised the 2025 EBITDA estimate down to $522 million from $539 million and the 2026 estimate to $656 million from $698 million, which are 0.8% and 2.8% below Wall Street's expectations respectively [4] - Free cash flow is now projected at $28 million for 2025 and $132 million for 2026, with capital expenditures estimated at $369 million for 2025 and $277 million for 2026 [4] Operational Challenges - There are concerns regarding a potential slowdown in demand in the ultra-deepwater market, utilization gaps from expiring contracts, and reduced opportunities for certain rigs [2] - An incident causing two weeks of downtime on the DS-17 drillship in Q1 2025 may impact operations, although reduced downtime could lead to a slight EBITDA beat compared to forecasts [2][3] Market Dynamics - The potential for more rig suspensions in Saudi Arabia exists, although some rigs leased to ARO are still operating under short-term extensions while longer-term agreements are being negotiated [3] - Investors may shift focus towards companies with a higher concentration of committed floater backlog due to ongoing challenges in the market [5]

Core Insights - Netflix is shifting its focus from subscriber growth to free cash flow as the primary metric for measuring success [1][2][5] - The company will no longer report membership counts or average revenue per member starting in the first-quarter 2025 report [2] - The new key performance indicators include revenue growth, operating margin, and free cash flow [2][4] Financial Performance - Free cash flow increased significantly in 2022 and 2023 but remained stable in 2024, with a full-year figure of $6.9 billion [3] - Despite a 13% year-over-year decline in free cash flow during the holiday quarter of 2024, Netflix shares rose 13% following management's guidance for 2025 [3][4] - The company anticipates a 13% revenue growth and a 2 percentage point increase in operating margin for 2025, along with a projected 16% increase in free cash flow [4]

Financial Data and Key Metrics Changes - The company reported record full year net revenue of $920 million, a 1.3% increase compared to the prior year [14] - Q4 2024 net revenue reached a record $257.7 million, a 3.7% increase year-over-year [11] - Gross profit for the full year was $240 million, reflecting a 26% growth compared to the prior year [14] - Q4 gross profit was $68.8 million, a 20% increase year-over-year, resulting in a gross margin of 26.7% [12] - Free cash flow for the full year was positive at $8.9 million, representing a $70 million improvement compared to 2023 [16] Business Line Data and Key Metrics Changes - The cannabis segment achieved a combined business growth of 16.5%, driven by the Indiva acquisition [11] - Liquor segment revenue was impacted by a market slowdown, with a decline of 3.4% in Q4 compared to the same period last year [21] - Cannabis retail reported Q4 net revenue of $83.2 million, a 10.7% increase year-over-year, and full year revenue of $311.7 million, a 7.5% growth [22][23] - Cannabis operations segment net revenue reached $37.1 million in Q4, with a 42% growth compared to the prior year [25] Market Data and Key Metrics Changes - The liquor retail segment faced a decline in same-store sales, with expectations for flat revenue in 2025 [42] - The cannabis market is experiencing strong momentum, with the company gaining market share and expanding distribution points [28][30] Company Strategy and Development Direction - The company is focused on long-term growth through strategic initiatives, including the acquisition of Endiva, positioning it as the largest manufacturer of infused edibles in Canada [7][29] - The company plans to continue building its infrastructure in Canada while exploring opportunities in core US markets [49] - The company aims to achieve $100 million in annualized free cash flow within the next three years [38] Management's Comments on Operating Environment and Future Outlook - Management noted a slowdown in liquor sales across North America, with expectations for a flat revenue outlook in 2025 [42] - The company remains optimistic about the long-term potential of its US investments despite current operational challenges [48] - Management emphasized the importance of operational improvements and cost efficiencies to drive future profitability [32] Other Important Information - The company ended the year with $218 million in unrestricted cash and zero outstanding debt, providing a competitive advantage for capital allocation [8] - The company announced its application for listing on the Canadian Stock Exchange, which will provide additional flexibility for growth [7] Q&A Session Summary Question: Outlook for liquor retail segment given weak same-store sales - Management acknowledged a slowdown in liquor sales across North America and anticipates flat revenue for 2025, with a long-term growth rate of 1-1.5% expected [42][44] Question: Performance of US investments and potential need for additional capital - Management indicated that while there are operational challenges, they see opportunities for improvement and are focused on capital deployment in Canada and core US markets [48][49] Question: Rationale behind CSE listing application - Management stated that the listing creates optionality for future growth, but emphasized that they are not currently positioned to engage in plant-touching activities [53]

Core Viewpoint - Globalstar reported record revenue for 2024, but the stock price declined post-earnings announcement, indicating a lack of investor confidence despite strong financial results [1][2]. Financial Performance - Globalstar achieved a record revenue of $250.3 million in 2024, marking a 12% year-over-year increase, with Q4 revenue rising 18% year-over-year to $61.2 million [2]. - The company projected 2025 revenue between $260 million and $285 million, representing a potential increase of up to 13% from 2024 [2]. - Despite the revenue growth, Globalstar reported a net loss of $50.2 million for Q4 and $63.2 million for the year, primarily due to noncash losses related to debt extinguishment [3]. Cash Flow Analysis - Globalstar generated $185 million in positive free cash flow (FCF) in 2024, a significant improvement from a $100 million cash burn in 2023, marking the highest FCF in the company's history [4]. - Future FCF projections are uncertain, with analysts predicting a return to negative cash flow in 2025, followed by a modest recovery to $69 million in 2026 [8]. Market Valuation - The current market cap of Globalstar is $2.7 billion, but the volatility in FCF raises concerns about its valuation. A conservative estimate suggests a price-to-free-cash-flow ratio of 39 times based on projected future cash flows [9]. - The overall assessment indicates that while the recent quarter was strong, the sustainability of performance is questionable, leading to a recommendation against buying the stock [10].