Range Resources (RRC) Q4 2024 earnings summary

Executive summary

• Achieved positive free cash flow in 2024 despite trough-level natural gas prices, enabling share repurchases, dividends, and balance sheet targets while investing in long-term asset development.

• Top 10 U.S. producer of natural gas and NGLs, focused on the Appalachian region with 30+ years of Marcellus inventory.

• Maintained low capital intensity, class-leading drilling/completion costs, and a diverse production stream with record NGL premiums.

• Strong balance sheet with leverage expected below 1x Debt/EBITDAX in 2025 and Net Zero Scope 1 and 2 GHG emissions for 2024.

• Cash flow from operations before working capital changes reached $1.1 billion for 2024.

Financial highlights

• Generated $453 million in free cash flow in 2024, paid $77 million in dividends, repurchased $65 million in shares, and reduced net debt by $172 million.

• Aggregate unhedged price realization was $2.76 per Mcfe, a $0.49 premium over Henry Hub.

• Ran two rigs and one completion crew, investing $654 million in capital and producing 2.18 Bcfe per day, above guidance.

• Over the past three years, reduced net debt by $1.3 billion and returned $678 million to shareholders.

• Proved reserves at year-end 2024 were 18.1 Tcfe, with positive performance revisions for the 17th consecutive year.

Outlook and guidance

• 2025 capital budget set at $650–$690 million, with $530 million for maintenance and up to $100 million for growth-oriented drilling/completions.

• Modest production growth to 2.2 Bcfe per day in 2025, with a plan to reach 2.6 Bcfe per day by 2027.

• Reinvestment rate expected to remain well below 50% at $3.75 natural gas price, supporting increased capital returns.

• Break-even expected to improve to ~$2 per NYMEX natural gas, with maintenance capital at $570 million for 2.6 Bcfe per day by 2027.

• 2025 expense guidance: direct operating $0.12–$0.14/mcfe, transportation/gathering $1.50–$1.55/mcfe, G&A $0.17–$0.19/mcfe.