| Range Resources Q2 Loss in Line, FY15 Outlook Reaffirmed - Analyst Blog | |
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Range Resources Corp. RRC reported second-quarter 2015 adjusted loss of 6 cents per share, in line with the Zacks Consensus Estimate. The bottom line, however, compared unfavorably with the year-ago quarter adjusted earnings of 22 cents per share. Shares of the company fell nearly 3% in the after hours trading session. Range Resources Corporation - Earnings Surprise | FindTheBest Second-quarter total revenue of $247.5 million missed the Zacks Consensus Estimate of $395 million and also fell about 68% year over year from $765.4 million. The year-over-year decline is attributable to reduced realizations.
Operational Performance
Range Resources’ second-quarter production averaged 1,372.6 million cubic feet equivalent per day (MMcfe/d), a record high for the company. Of the total production, 70% comprised natural gas, while natural gas liquids (NGLs) and oil accounted for the remainder.. Total production volume experienced a 24% improvement from the year-earlier quarter, mainly on the back of sustained accomplishment from the company’s drilling program.
Oil production expanded 10%, NGL rose 14% and natural gas production increased 29%, all on a year-over-year basis. Range Resources’ high spending level led to the relative increase in oil, natural gas liquids and natural gas production.
The company’s total price realization (including the effects of hedges and derivative settlements) averaged $2.31 per Mcfe, down 38% year over year. The overall price comprised NGL at $7.65 per barrel (down 66% year over year), crude oil at $67.60 per barrel (down 16%) and natural gas at $2.00 per Mcf (down 30%).
Financials
At the end of the quarter, long-term debt was $3,464 million, which represents a debt-to-capitalization ratio of 50.6%.
Guidance
For the third quarter, the company expects average production in the 1.39–1.40 billion cubic feet equivalent (Bcfe) per day range, of which liquids will be 28%. The company expects direct operating expenses in the range of $0.29–$0.31 per Mcfe. Transportation, gathering and compression expenses are expected in the range of $0.77–$0.79 per Mcfe, while exploration expenses are projected to be in the $10–$12 million range.
For 2015, the company has reaffirmed its production growth guidance of 20% year over year and capital budget outlook at $870 million.
Zacks Rank
Range Resources currently carries a Zacks Rank #4 (Sell).
Some better-ranked players from the oil and gas exploration and production space are Cheniere Energy, Inc. LNG, Linn Energy, LLC LINE and Vanguard Natural Resources, LLC VNR. All these stocks sport a Zacks Rank #1 (Strong Buy).
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Range Resources Ltd
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EXPLORATION STAGE |
CODE : RRS.AX |
ISIN : AU000000RRS3 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Range Res. is a gold exploration company based in Australia. Range Res. holds various exploration projects in Australia. Its main exploration properties are CORACHAPI in Peru and DONNYBROOK in Australia. Range Res. is listed in Australia and in Germany. Its market capitalisation is AU$ 7.6 millions as of today (US$ 5.2 millions, € 4.7 millions). Its stock quote reached its highest recent level on March 11, 2011 at AU$ 0.38, and its lowest recent point on November 22, 2019 at AU$ 0.00. Range Res. has 7 595 830 272 shares outstanding. |