Fort Worth-based Range Resources Corporation (NYSE:RRC) has released its financial results for the third quarter of 2024. Below is a detailed analysis of the company's financial and operational performance over the reported period.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Quarter-over-Quarter Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue | $615 million | $694 million | -11.4% | $616.14 million |
| GAAP Net Income | $51 million | $97 million | -47.4% | - |
| Earnings Per Share (EPS) | $0.21 | $0.39 | -46.2% | $0.38 |
| Adjusted Net Income | $117 million | - | - | - |
| Adjusted EPS | $0.48 | - | - | - |
Interpretation : Range Resources saw a decline in total revenue and GAAP net income compared to both the previous quarter and the same period last year. Despite the decrease, the company exceeded Wall Street's earnings per share consensus estimate, suggesting stronger than anticipated cost control or productivity.
Key Developments and Operational Highlights
- Cash flow from operating activities amounted to $246 million.
- Capital expenditure was registered at $156 million, equating to approximately 24% of the full-year 2024 budget.
- Natural gas production differentials averaged at ($0.50) per mcf to NYMEX.
- Range Resources repurchased 800,000 shares at an average price of approximately $30.10 per share.
Management Commentary
CEO Dennis Degner highlighted Range's significant role in the evolution of the Marcellus shale, celebrating the 20th anniversary of their first commercial well. He emphasized the company's resilient performance and strategic capital returns to shareholders amidst fluctuating natural gas prices. The focus remains on maintaining low-cost operations and meeting future energy demands.
Share Repurchase Program
During the third quarter, the company repurchased 800,000 shares at an average price of $30.10 per share. Range Resources continues to have approximately $1.0 billion available under its existing share repurchase program.
Forward Guidance
Range Resources updated its capital and production guidance for 2024, projecting an annual production rate of ~2.17 Bcfe per day—an increase attributed to improved well performance and optimized operations. Liquids are expected to constitute over 30% of production.
Stock Price Movement
Following the earnings release, Range Resources' stock experienced a -0.17% change.
This robust financial overview combined with proactive capital management outlines Range's strategic positioning for the future, despite current market challenges.
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