Range Resources (RRC) Q2 2024 earnings summary

Executive summary

• Successfully executed Q2 2024 plan with strong operational improvements, free cash flow generation, and capital efficiency, maintaining a peer-leading low breakeven and resilient free cash flow supported by a high-quality Marcellus inventory.

• Q2 2024 GAAP net income was $29 million ($0.12 per diluted share), with adjusted net income of $111 million ($0.46 per diluted share), reflecting resilience despite low natural gas prices.

• Production averaged 2.15–2.2 Bcfe/d in Q2 2024, with liquids comprising about 30% of production and realized prices after hedges averaging $3.10 per mcfe.

• ESG leadership demonstrated by a 67% reduction in methane emissions intensity over five years and a net zero GHG (Scope 1 & 2) target by 2025.

• Board governance enhancements include new director appointments, increased diversity, and executive compensation aligned with shareholder returns and ESG metrics.

Financial highlights

• Q2 2024 revenues were $530 million (GAAP), with non-GAAP revenues at $641 million; net income for the first half of 2024 was $120.8 million.

• Q2 capital spend was $175 million; first half 2024 total capital at $322–$345 million.

• Cash from operating activities in Q2 2024 was $148.8 million, with cash and cash equivalents at $251.1 million at quarter-end.

• Q2 cash margin per mcfe was $1.22 (37% margin), generating $237 million cash flow before working capital.

• Net debt at June 30, 2024, was $1.47 billion, with $1.72 billion in senior notes and $1.3 billion available under the credit facility.

Outlook and guidance

• 2024 production guidance is 2.12–2.16 Bcfe/d, expected near the high end due to strong well performance and infrastructure optimization.

• Full-year capital budget set at $620–$670 million, with more than 30% of production expected to be liquids.

• Lease operating expense guidance improved to $0.11–$0.13/mcfe for the remainder of 2024.

• Over 50% of projected natural gas production for the remainder of 2024 is hedged, with floors at $3.70–$3.73.

• 2025 program set up for flexibility, allowing for maintenance or growth depending on market conditions.