Range Resources (RRC) Q3 2024 earnings summary

Executive summary

• Achieved strong third quarter results with GAAP net income of $51 million ($0.21 per diluted share) and adjusted net income of $117 million ($0.48 per share), supported by consistent operational execution, safe operations, and continued production improvements.

• Production averaged 2.20 Bcfe per day in Q3 2024, a 4% year-over-year increase, with 68% natural gas and significant NGL contributions.

• Maintained strong liquidity with $277.5 million in cash and $1.3 billion available under the credit facility as of September 30, 2024.

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

• ESG leadership with methane emissions intensity over 90% below EPA thresholds and net zero GHG (Scope 1 & 2) by 2025.

Financial highlights

• Q3 2024 total revenues and other income were $615 million, up 1% year-over-year; non-GAAP revenues were $680 million.

• Free cash flow demonstrated durability through commodity volatility, with $815 million in 1H23, $261 million in 2H23, and $252 million in 1H24.

• Capital spending for Q3 was $156 million, totaling $501 million YTD (76% of 2024 budget); 2024 capital program is $645–$670 million.

• Net debt at quarter-end was $1.44 billion, down from $1.58 billion at year-end 2023 and within the target range of $1–$1.5 billion.

• Paid $58 million in dividends and repurchased $44 million in shares in the first nine months of 2024.

Outlook and guidance

• 2024 annual production guidance raised to ~2.17 Bcfe per day, a 2% increase over the last three years, with capital expenditures of $645–$670 million.

• Q4 production expected to remain near Q3 levels; 2025 plans likely to maintain one continuous completion crew, with flexibility to add a spot crew if market fundamentals warrant.

• Full-year 2024 natural gas differentials to NYMEX improved to ($0.39)–($0.40) per mcf; NGL differentials to Mont Belvieu at +$2.10–$2.35 per barrel.

• Over 50% of projected natural gas production for the remainder of 2024 is hedged, with floors of $3.72–$4.11/MMBtu for 2024–2026.

• Expect continued robust international NGL demand and price premiums into 2025, with U.S. Gulf Coast export capacity not increasing until late 2025 or 2026.