Range Resources (RRC) Q1 Results - Feb 27

[dan_s]

Operating cash flow and net production volumes are very close to my forecast.

FORT WORTH, Texas, Feb. 27, 2023 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its fourth quarter 2022 financial results and plans for 2023.

Full-Year 2022 Highlights –

Generated record cash flow from operations of $1.9 billion

Returned $1.5 billion to shareholders through $400 million in share repurchases, $39 million in dividends and $1.1 billion in debt reduction

Net production averaged 2,121 Mmcfe per day

All-in capital spending of $492 million, or $0.64 per mcfe

Proved reserves of 18.1 Tcfe with an after-tax discounted future net cash flow of $24.5 billion

Estimated future development costs of $0.41 per mcfe for proved undeveloped reserves < Let this sink in!

Increased hedge positions for 2023 and 2024 to approximately 55% and 35% of natural gas production with weighted-average floors of $3.57 and $3.75 per MMBtu, respectively

Net Debt to EBITDAX of 0.8x (Non-GAAP) at year-end 2022 < Balance Sheet is now in very good shape.

2023 Production and Capital Guidance –

All-in 2023 capital budget of $570 to $615 million planned to maintain production at 2.12 to 2.16 Bcfe per day

2023 all-in maintenance capital expected to be approximately $0.76 per mcfe, the lowest amongst U.S. natural gas producers

Commenting on the 2022 results and 2023 plans, Jeff Ventura, the Company’s CEO said, “The Company successfully managed a great market opportunity in 2022 – generating record free cash flow, materially strengthening our financial foundation and returning significant capital to shareholders. We reduced debt by over $1 billion and expanded our return of capital program with $400 million in share repurchases and an annualized dividend of $0.32 per share. As we enter 2023, the progress made during the past year both financially and operationally puts Range in the strongest position in Company history. We are excited about the opportunity to develop Range’s world-class inventory over the coming decades into a growing market for natural gas and natural gas liquids.”

[dan_s]

The present value (PV10) of reserves under SEC methodology was $29.6 billion ($123/share). For comparison, the PV10 using January 31, 2023 strip prices equates to $15.1 billion ($63/share) using the same proven reserve volumes.