RRC Q2 Results - July 25
Posted: Thu Jul 25, 2019 7:31 pm
https://finance.yahoo.com/news/range-an ... 00371.html
Range Resources Q2 production was slightly higher than my forecast (by 10 Mcfepd) and they produced more liquids than my forecast. However, the company's realized commodity prices (net of regional differentials and cash settlements on hedges) were lower causing their adjusted cash flow from operations to come in below my forecast.
natural gas sold for $2.54 vs forecast of $2.60
oil sold for $51.02 vs forecast of $55.00
NGLs sold for $18.58 vs forecast of $20.00
GAAP Net Income includes a very large MTM gain on their hedges, so GAAP EPS of $0.46 does not compare to my Q2 EPS forecast of $0.03. < This will be true for all of our gassers because they all have a large percentage of their gas hedged at very good prices.
Cash proceeds on asset sales of approximately $1 Billion in 1H 2019 SIGNIFICANTLY improves Range's balance sheet. 2H 2019 capex should be covered by cash flow from operations.
Commenting on the quarter, Jeff Ventura, the Company’s CEO and President said, “In the first half of 2019, Range delivered on key strategic initiatives: generating free cash flow, improving our cost structure and efficiently executing our operational plans safely and within budget. At the same time, we have been successful in generating nearly $1 billion in asset sale proceeds over the last year while impacting annual cash flow by less than 4%. The recent royalty sales significantly de-risk our capital plans and highlight the substantial value of our assets. Range remains well positioned for the current commodity cycle with low maintenance capital, flexibility on capital allocation and a competitive cost structure. As we continue to make progress on improving the balance sheet, we believe these competitive advantages will begin to be reflected in the market.”
Range Resources Q2 production was slightly higher than my forecast (by 10 Mcfepd) and they produced more liquids than my forecast. However, the company's realized commodity prices (net of regional differentials and cash settlements on hedges) were lower causing their adjusted cash flow from operations to come in below my forecast.
natural gas sold for $2.54 vs forecast of $2.60
oil sold for $51.02 vs forecast of $55.00
NGLs sold for $18.58 vs forecast of $20.00
GAAP Net Income includes a very large MTM gain on their hedges, so GAAP EPS of $0.46 does not compare to my Q2 EPS forecast of $0.03. < This will be true for all of our gassers because they all have a large percentage of their gas hedged at very good prices.
Cash proceeds on asset sales of approximately $1 Billion in 1H 2019 SIGNIFICANTLY improves Range's balance sheet. 2H 2019 capex should be covered by cash flow from operations.
Commenting on the quarter, Jeff Ventura, the Company’s CEO and President said, “In the first half of 2019, Range delivered on key strategic initiatives: generating free cash flow, improving our cost structure and efficiently executing our operational plans safely and within budget. At the same time, we have been successful in generating nearly $1 billion in asset sale proceeds over the last year while impacting annual cash flow by less than 4%. The recent royalty sales significantly de-risk our capital plans and highlight the substantial value of our assets. Range remains well positioned for the current commodity cycle with low maintenance capital, flexibility on capital allocation and a competitive cost structure. As we continue to make progress on improving the balance sheet, we believe these competitive advantages will begin to be reflected in the market.”