Range Resources (RRC) Q1 2025 earnings summary

Executive summary

• Delivered consistent well results and strong free cash flow in Q1 2025, with $97 million GAAP net income ($0.40 per share) and $232 million adjusted net income ($0.96 per share), supporting a positive long-term outlook and increased shareholder returns.

• Top 10 U.S. natural gas and NGL producer, focused on the Appalachian Marcellus with 30+ years of inventory, strong balance sheet, and durable free cash flow through commodity cycles.

• Achieved record drilling efficiency, maintained high geosteering accuracy, and stable production profile averaging 2.2 Bcfe per day.

• Returned capital to shareholders via $22 million in dividends and $68 million in share repurchases, while reducing net debt by $42 million.

• Strategic collaboration announced to supply natural gas to a proposed data center and industrial development in Pennsylvania.

Financial highlights

• Generated $183 million in free cash flow in Q1 2025, with total revenues and other income of $691 million, and cash flow from operations before working capital changes of $397 million.

• Production averaged 2.2 Bcfe per day, with realized prices (including hedges) at $4.02 per mcfe and average realized price up 21% year-over-year.

• All-in capital spending was $147 million for Q1, with lease operating expense at $0.13 per mcfe.

• Cash margin per mcfe increased to $2.02 from $1.59 year-over-year.

• Maintained strong liquidity with $345 million in cash and $1.3 billion available under the credit facility.

Outlook and guidance

• 2025 capital budget set at $650–$690 million, with annual production expected at ~2.2 Bcfe per day and liquids over 30%.

• Production expected to be slightly down in Q2 due to scheduled maintenance, with increases anticipated in the second half of 2025, in line with prior guidance.

• Over 30% of projected 2025 natural gas production is hedged.

• Full-year 2025 expense guidance: direct operating $0.12–$0.14/mcfe, transportation $1.50–$1.55/mcfe, G&A $0.17–$0.19/mcfe, DD&A $0.45–$0.46/mcfe.

• Three-year outlook targets maintaining 2.2 Bcfe per day flat in 2025, with potential to efficiently grow to 2.6 Bcfe per day for under $600 million annual D&C capital.