Range Resources (RRC) Q4 Results - Feb 26
Posted: Wed Feb 26, 2025 10:21 am
On February 26th RANGE RESOURCES CORPORATION (NYSE: RRC) announced its fourth quarter 2024 financial results, plans for 2025, and a three-year outlook through 2027. < Q4 production very close to my forecast with revenues slightly higher thanks to better liquids prices than what I used in my forecast. Range's production in 2025 will be almost flat year-over-year, but operating cash flow should be ~50% higher due to much higher realized natural gas prices. Range's production will stay around 69% natural gas, 29% NGLs and 2% oil (primarily condensate that sells at about a $10/bbl discount to WTI).
Full-Year 2024 Highlights –
Cash flow from operating activities of $945 million
Cash flow from operations, before working capital changes, of $1.1 billion
Reduced net debt by $172 million, returned $77 million in dividends, and invested $65 million in share repurchases
Production averaged 2.18 Bcfe per day, approximately 68% natural gas
All-in capital spending of $654 million, or $0.82 per mcfe
Pre-hedge NGL realizations of $25.77 per barrel – premium of $2.33 over the Mont Belvieu equivalent
Proved reserves of 18.1 Tcfe with positive performance revisions for 17th consecutive year
Debt to EBITDAX of 1.2x (Non-GAAP) at year-end 2024
Expect to achieve Net Zero for 2024 Scope 1 and 2 GHG emissions
Maintenance capital improved by ~$50 million on strong well performance and infrastructure optimization
Dennis Degner, the Company’s CEO, commented, “Last year demonstrated the resilience of Range’s business as we successfully generated free cash flow, returned capital to shareholders and met our long-term balance sheet target. We did this despite natural gas prices being at cycle lows and while strategically investing in the business. Over the last two years, Range has made countercyclical investments to build in-process well inventory, which supports our targeted, efficient production growth plans through 2027. Importantly, we have contracted natural gas transportation to support our plans and Range will utilize new NGL export capacity towards the same premium markets that have benefited Range shareholders for many years.
An exciting chapter for U.S. natural gas is materializing as export capacity is commissioned to meet growing global gas demand. As the lowest-cost, lowest-emissions natural gas basin in the country, we expect Appalachia will play a significant role to meet global gas needs over time. We believe Range will see an outsized benefit given our proven, high-quality Marcellus inventory with duration measured in decades, our access to markets with growing demand and our advantaged full-cycle cost structure that provides the foundation for delivering through-cycle returns for shareholders.”
Full-Year 2024 Highlights –
Cash flow from operating activities of $945 million
Cash flow from operations, before working capital changes, of $1.1 billion
Reduced net debt by $172 million, returned $77 million in dividends, and invested $65 million in share repurchases
Production averaged 2.18 Bcfe per day, approximately 68% natural gas
All-in capital spending of $654 million, or $0.82 per mcfe
Pre-hedge NGL realizations of $25.77 per barrel – premium of $2.33 over the Mont Belvieu equivalent
Proved reserves of 18.1 Tcfe with positive performance revisions for 17th consecutive year
Debt to EBITDAX of 1.2x (Non-GAAP) at year-end 2024
Expect to achieve Net Zero for 2024 Scope 1 and 2 GHG emissions
Maintenance capital improved by ~$50 million on strong well performance and infrastructure optimization
Dennis Degner, the Company’s CEO, commented, “Last year demonstrated the resilience of Range’s business as we successfully generated free cash flow, returned capital to shareholders and met our long-term balance sheet target. We did this despite natural gas prices being at cycle lows and while strategically investing in the business. Over the last two years, Range has made countercyclical investments to build in-process well inventory, which supports our targeted, efficient production growth plans through 2027. Importantly, we have contracted natural gas transportation to support our plans and Range will utilize new NGL export capacity towards the same premium markets that have benefited Range shareholders for many years.
An exciting chapter for U.S. natural gas is materializing as export capacity is commissioned to meet growing global gas demand. As the lowest-cost, lowest-emissions natural gas basin in the country, we expect Appalachia will play a significant role to meet global gas needs over time. We believe Range will see an outsized benefit given our proven, high-quality Marcellus inventory with duration measured in decades, our access to markets with growing demand and our advantaged full-cycle cost structure that provides the foundation for delivering through-cycle returns for shareholders.”