Range Resources (RRC) Q1 2026 earnings summary

Executive summary

• Achieved GAAP net income of $342 million in Q1 2026, up 252% year-over-year, with adjusted net income of $360 million and record free cash flow of ~$400 million, supporting increased dividends, share repurchases, and the strongest balance sheet in company history.

• Production averaged 2.21 Bcfe per day (32% liquids), with plans to reach 2.5 Bcf/d by year-end as new infrastructure comes online.

• Operational efficiency set new records in drilling and completions, with over 143,000 lateral feet drilled and 874 stages completed in Q1.

• Recognized for ESG leadership, maintaining net zero Scope 1 and 2 GHG emissions since 2024 and earning industry awards.

• Strategic marketing captured premium pricing for natural gas and NGLs, resulting in the highest NGL premium in company history.

Financial highlights

• Generated $619 million in operating cash flow and $545 million in cash flow from operations before working capital in Q1, with realized natural gas price of $5.18/Mcf and NGLs at $26.62/bbl.

• Free cash flow was approximately $400 million, with a capital reinvestment rate below 30%.

• Net debt reduced to $834 million, representing half a turn of leverage and an investment-grade style balance sheet.

• Dividend payments totaled $24 million and share repurchases $27 million in Q1.

• Margin per unit of production rose to $2.77/Mcfe, up 38% year-over-year.

Outlook and guidance

• 2026 capital budget set at $650–$700 million; annual production expected at 2.35–2.40 Bcfe per day, with liquids over 30%.

• Production expected to increase slightly in Q2, then ramp to 2.5 Bcf/d by year-end as new processing and gathering infrastructure is commissioned.

• Full-year 2026 NGL differential guidance raised to a premium of $1.25–$2.50/bbl over Mont Belvieu.

• Cash taxes expected to remain low through 2027, with first full cash tax year likely in 2028.

• Over 35% of projected 2026 natural gas production is hedged.