RRC Earnings Prediction
The chart below shows how RRC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RRC sees a -0.20% change in stock price 10 days leading up to the earnings, and a +0.99% change 10 days following the report. On the earnings day itself, the stock moves by +0.07%. This data can give you a slight idea of what to expect for the next quarter's release.
RRC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
680.44M
4.56%
19.82%
Gross Margin
76.77%
1.16%
3.55%
Operating Margin
23.21%
-4.45%
109.67%
Net Margin
13.94%
-70.74%
56.28%
EPS
0.39
-70.23%
85.71%
No Data Available
RRC Earnings Analysis
Range Resources Corp Corporation (RRC.N) Earnings Conference Call
Positive
Free Cash Flow Generation: Range Resources generated free cash flow of $453 million in 2024, allowing for share repurchases, dividends, and debt reduction while investing in operations.
Price Realization Advantage: The company achieved an aggregate unhedged price realization of $2.76 per Mcfe for the year, which is a $0.49 premium over Henry Hub Natural Gas, showcasing its competitive advantage over dry gas producers.
Operational Efficiency Milestone: Range's operational efficiency was highlighted by drilling over 800,000 feet of lateral footage, exceeding maintenance production requirements and setting new efficiency records.
Debt Reduction and Shareholder Returns: The company maintained a strong balance sheet, reducing net debt by $172 million in 2024 and over $1.3 billion over the past three years, while returning $678 million to shareholders through dividends and share repurchases.
2025 Production Growth Plan: Range's capital plan for 2025 is projected to result in modest production growth to approximately 2.2 Bcfe per day, with a focus on maintaining low capital intensity and operational efficiency.
Marcellus Inventory Sustainability: The company expects to maintain its high-quality Marcellus inventory, supporting future growth and allowing for a low required maintenance capital of approximately $570 million to sustain production at 2.6 Bcfe per day.
NOL Carryforwards Impact: Range's federal NOL carryforwards of $1.4 billion and Pennsylvania State NOLs of roughly $770 million are expected to enhance after-tax cash flows by more than $300 million over the next two years, providing additional financial flexibility.
Negative
Price Realization Challenges: Range Resources reported an aggregate unhedged price realization of $2.76 per Mcfe for the year, which is a $0.49 premium over Henry Hub Natural Gas, indicating challenges in achieving higher price realizations compared to competitors.
Commodity Price Impact: Despite generating free cash flow, the company faced low commodity prices in 2024, which could impact future profitability and growth potential.
Production Growth Outlook: Production for 2024 was approximately 2.18 Bcf equivalent per day, which, while above guidance, reflects a modest growth trajectory that may not meet aggressive market expectations.
Projected Capital Budget 2025: The capital budget for 2025 is projected at $650 million to $690 million, which indicates a significant ongoing investment requirement that could strain financial resources if market conditions worsen.
Production Volatility Outlook: The expectation of slightly down production in the first half of 2025 before increasing in the second half suggests potential volatility and uncertainty in operational performance.
Reinvestment Rate Concerns: The company’s reinvestment rate is expected to remain well below 50% at a $3.75 natural gas price level, which may limit growth opportunities if prices do not improve significantly.
Modest Production Growth Expectations: Range's production plan over the next three years anticipates only modest production growth of 19%, which may not be sufficient to satisfy investor expectations for aggressive expansion.
Capital Investment and Profitability: The need for continued capital investment in infrastructure and facilities upgrades to reduce emissions indicates ongoing operational costs that could impact profitability.
RRC FAQs
How does RRC typically perform around its earnings report dates?
Is Range Resources Corp (RRC) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
RRC Earning Call Sentiment
Range Resources Corporation (RRC) Q4 2024 Earnings Call Transcript
RRC.N
0.23%Positive
The earnings call summary and Q&A reveal strong financial performance with significant free cash flow, debt reduction, and shareholder returns. Despite some concerns about growth risks and market conditions, the company shows resilience and strategic planning. The announced dividend increase and share repurchases are positive indicators. While management was vague on some aspects, the overall sentiment is positive, supported by strong well performance and improved breakeven costs. The commitment to return capital to shareholders further supports a positive outlook for the stock price over the next two weeks.
