Range Resources (RRC) Operations Update - Feb 7

[dan_s]

RANGE RESOURCES CORPORATION (NYSE: RRC) today announced fourth quarter 2023 expectations for production and pricing with fourth quarter production averaging approximately 2,207 Mmcfe per day. In addition, Range realized $8.0 million in contingent derivative settlement gains in fourth quarter 2023.

Production and Pricing

Fourth quarter 2023 daily natural gas production averaged approximately 1,540 Mmcf per day. The average natural gas realization, including the impact of basis hedges, was $2.40 per mcf, a ($0.48) per mcf differential to NYMEX. The average natural gas price, including all settled hedges, was $2.68 per mcf. < Compares to my forecast of 1,524,000 mcf per day at a realized price of $2.81.

Fourth quarter 2023 daily NGL production averaged approximately 104,038 barrels per day. NGL realizations were $24.91 per barrel, approximately $2.42 above the Mont Belvieu weighted equivalent. < Compares to my forecast of 108,500 bpd of NGLs at a realized price of $24.50.

Fourth quarter 2023 daily oil and condensate production averaged approximately 7,136 barrels per day. Crude oil and condensate price realizations, before realized hedges, averaged $67.72 per barrel, approximately $10.56 below WTI (West Texas Intermediate). The average condensate price, including settled hedges, was $63.42 per barrel. < Compares to my forecast of 6,500 bpd at $61.00/bbl.

Contingent Derivatives

In fourth quarter 2023, Range realized a total of $8.0 million in contingent derivative settlement gains related to the North Louisiana divestiture. This represents the final year of divestiture contingent payments, and Range expects to receive the cash proceeds in the first half of 2024.

My valuation of RRC stays at $30.75

[dan_s]

TipRanks: "As of 2/7/2024: In the last 3 months, 13 ranked analysts set 12-month price targets for RRC. The average price target among the analysts is $34.92". Since RRC's Feb 6 press release four analysts have updated their price target to $36, $37, $40 and $42. They all rate RRC a BUY at the current share price.

RRC has some good hedges in place for 2024 and the majority of their Tier One leasehold is held by production. RRC will remain free cash flow positive in 2024.