Range Resources reports Q2 adjusted earnings of $186M, beating estimates, with realized price of $3.53/mcfe. The company sees rising natural gas demand requiring more Appalachia supply and has $1.4B left in its buyback plan.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Range Resources Corp. (RRC) posted second-quarter adjusted net income of $186 million, or $0.79 a share, beating the analyst consensus the company benchmarks against. The result compared with $195 million in GAAP net income, which included a $74 million mark-to-market derivative gain tied to lower commodity prices.
Revenue and other income totaled $834 million for the quarter ended June 30. Cash flow from operations before changes in working capital, a non-GAAP measure the company uses to track underlying cash generation, came in at $333 million.
Range realized $3.53 per thousand cubic feet equivalent on its natural gas, NGLs and oil production, including the impact of cash-settled hedges and derivative settlements. That price covers the $1.61 per mcfe the company spent on direct operating, transportation, gathering, processing and compression.
The Fort Worth-based producer kept its full-year production guidance at 2.35 to 2.40 billion cubic feet equivalent per day, with liquids making up more than 30% of the mix. Capital spending in the quarter was $222 million, split between $204 million in drilling and completion costs, $8 million in acreage and $10 million in infrastructure and pneumatic upgrades. That represented about a third of the $650 million to $700 million all-in budget for 2026.
Range drilled roughly 190,000 lateral feet across 11 wells during the quarter and turned to sales about 300,000 feet across 21 wells.
Net debt and buyback
Net debt stood at $881 million as of June 30, consisting of $500 million in senior notes and $381 million drawn on the company's credit facility. Range repurchased 2 million shares during the quarter at an average price of about $39.18, leaving $1.4 billion of availability under the buyback program.
Hedging position
The company holds a series of natural gas swaps, collars and three-way options covering portions of production through 2028. As of June 30, the combined fair value of its natural gas basis hedges was a net loss of $10.6 million, reflecting the gap between benchmark and regional prices at the measurement date.
Outlook
Range's management said it expects "steadily increasing demand for natural gas will require additional supply from Appalachia" beyond the development plans already announced through 2027. The company called the Marcellus Shale the lowest-cost, longest-duration gas basin in the U.S. and said its inventory, marketing access and cost structure position it to supply both domestic and international demand growth while returning capital to shareholders.
The company also said it expects average price differentials for 2026 based on recent market indications. A detailed hedging schedule was posted on the company's investor relations page.
Range will host a conference call at 9 a.m. Eastern on Wednesday, July 22. The webcast will be archived on the company's website through Aug. 22.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.