Range Resources (RRC) Q2 2024 earnings summary

Executive summary

• Successfully executed Q2 2024 plan with strong operational improvements, free cash flow generation, and capital efficiency, maintaining a resilient balance sheet and long-term capital returns focus.

• Peer-leading capital efficiency, low breakeven costs, and diversified market access underpin durable free cash flow and resilience through commodity cycles.

• ESG leadership with methane emissions intensity over 90% below EPA thresholds, net zero GHG (Scope 1 & 2) target by 2025, and strong governance and social responsibility practices.

• Q2 2024 GAAP net income was $28.7–$29 million ($0.12 per diluted share), with adjusted net income of $111 million ($0.46 per diluted share), reflecting resilience despite low natural gas prices.

• Revenue from natural gas, NGLs, and oil sales increased 2% year-over-year, driven by a 3% rise in production volumes and a 1% decrease in average realized prices (before derivatives).

Financial highlights

• Q2 capital spending was $175 million; first half 2024 total capital at $322–$345 million.

• Q2 production averaged 2.15–2.2 Bcfe/d, with liquids at 30–32% of production.

• Realized price per unit before NYMEX hedging was $0.51 above Henry Hub; with hedges, realized $3.10/Mcfe, $1.22 above Henry Hub.

• Q2 cash flow before working capital was ~$237 million; cash margin per unit at $1.22 (37% margin).

• Cash and cash equivalents at June 30, 2024: $251.1 million; net debt at $1.47 billion.

Outlook and guidance

• 2024 production guidance of 2.12–2.16 Bcfe/d, expected near the high end due to strong well performance and infrastructure optimization.

• Capital spending to decrease in H2 2024; full-year capital budget set at $620–$670 million.

• Lease operating expense guidance improved to $0.11–$0.13/Mcfe for H2.

• Over 50% of projected natural gas production for the remainder of 2024 is hedged.

• 2025 program designed for flexibility, allowing for maintenance or growth depending on market conditions.