Range Resources(US:RRC)2025-10-29 14:00Financial Data and Key Metrics Changes - Total capital expenditures for the quarter were $190 million, with year-to-date investments reaching $491 million, aligning with the revised full-year guidance of $650 to $680 million [3][12] - Average realized price for natural gas was $3.59 per unit, a $0.20 premium over the NYMEX average of $3.39 [12][13] - Cash operating expenses for the third quarter were $0.11 per Mcfe, consistent with previous guidance [6][23] Business Line Data and Key Metrics Changes - Production for the quarter was 2.2 Bcfe per day, with expectations to increase to approximately 2.3 Bcfe per day in Q4 and 2.6 Bcfe per day by 2027, representing a 20% increase from current levels [4][5] - The company completed over 1,000 frac stages during the third quarter, achieving completion efficiencies of nearly 10 frac stages per day [6][7] Market Data and Key Metrics Changes - The U.S. exported record volumes of LNG in Q3, with new LNG projects reaching FID, contributing to a total of approximately 9 Bcf per day of incremental feed gas demand [8][9] - Demand for NGLs is expected to see substantial increases, with strong international demand supporting improved pricing [10][11] Company Strategy and Development Direction - The company plans to maintain a flat annual capital expenditure while adding 400 million cubic feet equivalent per day of growth over the next two years, focusing on efficient capital returns to shareholders [5][12] - Range Resources aims to leverage its high-quality inventory and strong financial position to meet increasing demand in the Midwest, Gulf Coast, and global LNG markets [4][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate significant free cash flow and deliver value to shareholders, citing a strong operational performance and a favorable market environment for natural gas and NGLs [12][16] - The company anticipates a tightening of gas marketing fundamentals as additional LNG export capacity comes online in 2026 [10][16] Other Important Information - The company has repurchased $177 million in shares and paid nearly $65 million in dividends year-to-date, while reducing net debt by $175 million [13][14] - Management highlighted the importance of infrastructure expansion in Appalachia to support long-term energy needs [10][12] Q&A Session Summary Question: Can you provide insights on the work in progress inventory and its outlook for 2026? - Management indicated that capital allocation for 2026 will focus more on completing the DUC inventory, with expectations for a linear utilization trend over the year [18][20] Question: What are the opportunities for upside in 2026 and 2027? - Management noted potential efficiencies in operations and infrastructure utilization as key areas for upside performance [25][26] Question: How do you view the NGL market for 2026? - Management expressed optimism regarding demand growth for NGLs, with significant export capacity expansions expected [27][30] Question: What is the status of supply agreements and potential expansions? - Management confirmed ongoing discussions with potential end users, focusing on long-term reliable supply agreements [34][35] Question: What is needed for the credit agencies to upgrade the company to investment grade? - Management stated that the company is checking all boxes for an upgrade, with growth plans and asset quality supporting this potential [59][60]