Range Resources (RRC) Q4 2025 earnings summary

Executive summary

• Delivered consistent operational execution, generating strong free cash flow and shareholder returns, with production of 2.24 Bcfe per day in 2025 and a robust inventory supporting future development flexibility.

• Pure-play Appalachian producer with over 30 years of core Marcellus inventory, peer-leading capital efficiency, and industry-leading environmental practices, including net zero Scope 1 and 2 GHG emissions.

• Consistent free cash flow generation through commodity cycles, totaling ~$3.9 billion in the last five years.

• Access to diversified domestic and international markets for natural gas and NGLs, with strategic supply agreements for Midwest power plants.

• Proved reserves reached 18.1 Tcfe, with positive performance revisions for the 18th consecutive year.

Financial highlights

• Generated $1.3 billion in cash flow from operations before working capital and over $650 million in free cash flow for 2025.

• Achieved an average hedged realized price of $3.60–$3.61 per unit, a $0.17 premium to NYMEX Henry Hub, and expanded per unit cash margin by 20% to $1.64 per MCFE.

• Paid $86 million in dividends, repurchased $231 million in shares, and reduced net debt by $186 million in 2025.

• Reduced total debt by $3 billion over several years, with $744 million invested in share repurchases since 2019.

• Cumulative free cash flow for 2026–2027 expected to exceed $1.7 billion at $3.75 NYMEX natural gas.

Outlook and guidance

• 2026 capital budget set at $650–$700 million, targeting production of 2.35–2.4 Bcfe per day.

• Production expected to dip to 2.2 Bcfe per day in Q1 2026, then ramp to 2.5 Bcfe per day by year-end as new processing capacity comes online.

• Production expected to grow to 2.6 Bcfe per day in 2027, assuming similar capital levels.

• 2026 expense guidance: direct operating $0.12–$0.13/mcfe, G&A $0.17–$0.18/mcfe, transportation $1.50–$1.55/mcfe.

• Natural gas differential to NYMEX guided at ($0.35)–($0.45); NGL realization at Mont Belvieu plus $0.00–$1.00/bbl.