Range Resources (RRC) Q3 Results - Oct 24
Posted: Mon Oct 24, 2022 5:00 pm
FORT WORTH, Texas, Oct. 24, 2022 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its third quarter 2022 financial results.
Third Quarter 2022 Highlights –
Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $336 million ($1.37 per diluted share) in third quarter 2022. < Compares to my forecast of $400.9 million ($1.61 per share).
Highest cash flow from operating activities in Company history → $521 million
Highest cash flow from operations, before working capital changes, in Company history → $550 million < Compares to my forecast of $638.2 million.
Capital spending was $138 million, approximately 29% of the 2022 budget
Quarterly dividend of $0.08 per quarter initiated in September
Share repurchase authorization increased by $1 billion in October < Good news.
Repurchased 5.7 million shares at an average of $29.41 per share < Improves the per share results.
Realizations before NYMEX hedges of $7.40 per mcfe
Natural gas differentials, including basis hedging, averaged ($0.38) per mcf to NYMEX
Pre-hedge NGL realizations of $35.30 per barrel < Lower than expected.
Production averaged 2.13 Bcfe per day, approximately 70% natural gas < Compares to my forecast of 2.17 Bcfe per day.
Commenting on the quarter, Jeff Ventura, the Company’s CEO said, “Range delivered record free cash flow and cash flow per share in the third quarter, allowing us to reduce net debt while increasing returns of capital to shareholders. Range has unlocked a massive inventory of high-quality wells in the Marcellus, measured in decades, and translated that inventory into a business capable of generating healthy free cash flow and returns of capital through the cycles. As a result of Range’s organic operational and financial performance, commitment to disciplined spending and confidence in free cash flow sustainability, we are tripling our share repurchase authorization to $1.5 billion. We continue to view share repurchases as a compelling investment, given favorable long-term fundamentals and the underlying value of our de-risked multi-decade core inventory. This repeatable, low-risk, low-decline asset base underpins Range’s peer-leading capital intensity and resilient free cash flow profile.”
RRC get an A++ for "Running Room".
Good Results: Not quite as good as my forecast, but still good enough to justify a $50+ price target for RRC. BIG IMPROVEMENT this year in the balance sheet.
Third Quarter 2022 Highlights –
Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $336 million ($1.37 per diluted share) in third quarter 2022. < Compares to my forecast of $400.9 million ($1.61 per share).
Highest cash flow from operating activities in Company history → $521 million
Highest cash flow from operations, before working capital changes, in Company history → $550 million < Compares to my forecast of $638.2 million.
Capital spending was $138 million, approximately 29% of the 2022 budget
Quarterly dividend of $0.08 per quarter initiated in September
Share repurchase authorization increased by $1 billion in October < Good news.
Repurchased 5.7 million shares at an average of $29.41 per share < Improves the per share results.
Realizations before NYMEX hedges of $7.40 per mcfe
Natural gas differentials, including basis hedging, averaged ($0.38) per mcf to NYMEX
Pre-hedge NGL realizations of $35.30 per barrel < Lower than expected.
Production averaged 2.13 Bcfe per day, approximately 70% natural gas < Compares to my forecast of 2.17 Bcfe per day.
Commenting on the quarter, Jeff Ventura, the Company’s CEO said, “Range delivered record free cash flow and cash flow per share in the third quarter, allowing us to reduce net debt while increasing returns of capital to shareholders. Range has unlocked a massive inventory of high-quality wells in the Marcellus, measured in decades, and translated that inventory into a business capable of generating healthy free cash flow and returns of capital through the cycles. As a result of Range’s organic operational and financial performance, commitment to disciplined spending and confidence in free cash flow sustainability, we are tripling our share repurchase authorization to $1.5 billion. We continue to view share repurchases as a compelling investment, given favorable long-term fundamentals and the underlying value of our de-risked multi-decade core inventory. This repeatable, low-risk, low-decline asset base underpins Range’s peer-leading capital intensity and resilient free cash flow profile.”
RRC get an A++ for "Running Room".
Good Results: Not quite as good as my forecast, but still good enough to justify a $50+ price target for RRC. BIG IMPROVEMENT this year in the balance sheet.