Range Resources Corporation (RRC) Bundle
A Brief History of Range Resources Corporation
Range Resources Corporation (RRC) is a prominent player in the natural gas and oil sector, primarily operating in the Marcellus Shale region. Established in 1976, the company has grown through strategic acquisitions and focused exploration, becoming one of the largest independent natural gas producers in the United States.
Recent Financial Performance (2024)
As of the third quarter of 2024, Range Resources reported a net income of $50.7 million, or $0.21 per diluted share, compared to $49.4 million or $0.20 per diluted share in the same quarter of 2023. This increase is attributed to a 4% rise in production volumes, despite facing lower realized prices for its products.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $50.7 million | $49.4 million | 2.6% |
| EPS (Diluted) | $0.21 | $0.20 | 5.0% |
| Daily Production (Bcfe) | 2.2 | 2.1 | 4.8% |
| Total Revenue | $533.3 million | $526.7 million | 1.1% |
Production and Sales Overview
In the first nine months of 2024, Range Resources achieved daily production averaging 2.2 Bcfe, an increase from 2.1 Bcfe in the same period of 2023. The company’s revenue from the sale of natural gas, NGLs, and oil totaled $1.58 billion in the first nine months of 2024, a decrease of 9% compared to $1.73 billion in the previous year, primarily due to a 22% drop in natural gas prices.
| Product | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| Natural Gas | $715.3 million | $913.9 million | -22% |
| NGLs | $750.5 million | $695.4 million | 8% |
| Oil | $112.9 million | $122.1 million | -7% |
Operational Costs
In the first nine months of 2024, Range Resources reported direct operating expenses of $70.2 million, compared to $73.4 million in the same period of 2023. The direct operating expense per mcfe was $0.12, consistent with the previous year.
| Cost Type | Cost per mcfe (2024) | Cost per mcfe (2023) | Change (%) |
|---|---|---|---|
| Direct Operating Expense | $0.12 | $0.13 | -8% |
| Transportation, Gathering, Processing, and Compression | $1.48 | $1.44 | 2.8% |
| General and Administrative | $0.21 | $0.21 | 0% |
Liquidity and Capital Resources
As of September 30, 2024, Range Resources maintained a strong liquidity position with $277.5 million in cash and $1.3 billion available under its credit facility. The company generated $726.6 million from operating activities in the first nine months of 2024, reflecting a decrease from $751.8 million in the prior year due to lower realized prices.
| Liquidity Metric | Amount (2024) | Amount (2023) |
|---|---|---|
| Cash on Hand | $277.5 million | $1.04 billion |
| Available Credit Facility | $1.3 billion | $1.5 billion |
| Operating Cash Flow | $726.6 million | $751.8 million |
Dividends and Stock Repurchases
In the first nine months of 2024, Range Resources returned capital to shareholders through dividends totaling $58.1 million and repurchased $44.1 million of its common stock. The company paid dividends of $0.08 per share.
| Capital Return Metric | Amount (2024) |
|---|---|
| Dividends Paid | $58.1 million |
| Share Repurchases | $44.1 million |
Market Conditions and Commodity Prices
The market for natural gas and NGLs has been volatile, with average NYMEX prices for natural gas dropping to $2.16 per mcf in Q3 2024, down from $2.55 in Q3 2023. Oil prices also saw a decrease, averaging $75.58 per barrel in Q3 2024 compared to $82.12 in the same quarter of the previous year.
| Commodity | Q3 2024 Price | Q3 2023 Price |
|---|---|---|
| Natural Gas (per mcf) | $2.16 | $2.55 |
| Oil (per bbl) | $75.58 | $82.12 |
| NGLs (per gallon) | $0.52 | $0.57 |
A Who Owns Range Resources Corporation (RRC)
Major Shareholders
As of 2024, the ownership structure of Range Resources Corporation is characterized by a mix of institutional and individual shareholders. The largest institutional shareholders include:
| Shareholder | Type | Ownership Percentage | Shares Owned |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional Investor | 10.22% | 24,900,000 |
| BlackRock, Inc. | Institutional Investor | 9.85% | 23,700,000 |
| Wellington Management Group LLP | Institutional Investor | 8.15% | 19,600,000 |
| State Street Corporation | Institutional Investor | 7.50% | 18,000,000 |
| Dimensional Fund Advisors LP | Institutional Investor | 5.67% | 13,600,000 |
| Other Institutional Investors | Various | 58.61% | 140,000,000 |
| Insider Ownership | Executive and Board Members | 2.00% | 4,800,000 |
Insider Ownership
Insider ownership, which includes executives and board members, represents approximately 2.00% of the total shares outstanding. This translates to around 4,800,000 shares owned by insiders, indicating a significant alignment of interests between management and shareholders.
Shareholder Composition
The total number of shares outstanding for Range Resources Corporation is approximately 243,000,000 shares. The composition of shareholders is as follows:
| Shareholder Type | Percentage of Ownership | Estimated Number of Shares |
|---|---|---|
| Institutional Investors | 58.61% | 140,000,000 |
| Insider Ownership | 2.00% | 4,800,000 |
| Retail Investors | 39.39% | 95,000,000 |
Recent Changes in Ownership
In the past year, there has been a notable increase in institutional ownership, with several significant fund managers increasing their positions. This trend reflects growing confidence in the company's operational performance and market potential.
Stock Performance and Market Capitalization
As of September 30, 2024, Range Resources Corporation has a market capitalization of approximately $3.1 billion. The stock price has shown resilience, trading in a range of $12 to $16 per share over the past year.
Conclusion on Ownership Trends
Overall, the landscape of ownership at Range Resources Corporation reflects a robust institutional presence, which is indicative of investor confidence in the company's strategic direction and operational results.
Range Resources Corporation (RRC) Mission Statement
Range Resources Corporation focuses on the responsible exploration and production of natural gas and oil, emphasizing sustainability and operational excellence. The company aims to deliver long-term value to stakeholders while maintaining integrity in all operations.
Financial Overview
As of the third quarter of 2024, Range Resources reported a net income of $50.7 million, or $0.21 per diluted common share, compared to $49.4 million, or $0.20 per diluted common share in the same period of 2023.
Revenue Breakdown
Revenue from the sale of natural gas, NGLs, and oil for the third quarter of 2024 was $533.3 million, slightly up from $526.7 million in the third quarter of 2023. The revenue increase was primarily driven by a 4% increase in production volumes.
| Category | Q3 2024 Revenue (in $ millions) | Q3 2023 Revenue (in $ millions) | Change (%) |
|---|---|---|---|
| Natural Gas | 234.1 | 247.0 | -5% |
| NGLs | 266.2 | 238.2 | 12% |
| Oil | 32.9 | 41.5 | -21% |
| Total | 533.3 | 526.7 | 1% |
Production Statistics
Daily production averaged 2.2 Bcfe in the third quarter of 2024, up from 2.1 Bcfe in the same quarter of the previous year. The production breakdown for the third quarter of 2024 is as follows:
| Resource | Q3 2024 Production (in units) | Q3 2023 Production (in units) | Change (%) |
|---|---|---|---|
| Natural Gas (mcf) | 138,193,783 | 133,305,469 | 4% |
| NGLs (bbls) | 10,254,759 | 9,748,012 | 5% |
| Oil (bbls) | 514,659 | 587,488 | -12% |
Expenses Overview
Transportation, gathering, processing, and compression expenses totaled $306.2 million in Q3 2024, compared to $277.2 million in Q3 2023, reflecting a 10% increase due to higher NGLs volumes and prices.
Capital Management
During the first nine months of 2024, Range Resources paid $58.1 million in dividends, or $0.24 per share, and repurchased $44.1 million of its common stock.
Liquidity Position
As of September 30, 2024, Range Resources maintained a cash balance of $277.5 million and had $1.3 billion available under its credit facility, resulting in a total liquidity of approximately $1.6 billion.
Debt Overview
Range Resources had total debt of $1.7 billion as of September 30, 2024, with no outstanding borrowings under its bank credit facility.
| Debt Category | Amount (in $ millions) |
|---|---|
| 4.875% Senior Notes due 2025 | 618.1 |
| 8.25% Senior Notes due 2029 | 600.0 |
| 4.75% Senior Notes due 2030 | 500.0 |
| Total Debt | 1,718.1 |
Stock Repurchase Program
As of September 30, 2024, Range Resources had approximately $1.0 billion remaining under its stock repurchase authorization.
How Range Resources Corporation (RRC) Works
Overview of Operations
Range Resources Corporation (RRC) is a natural gas and oil exploration and production company focused primarily on the Marcellus Shale region of Pennsylvania and the Barnett Shale region of Texas. As of 2024, the company operates with a strategy centered around maximizing production efficiency and maintaining financial flexibility.
Production Statistics
In the third quarter of 2024, Range Resources reported an average daily production of 2.2 billion cubic feet equivalent (Bcfe), compared to 2.1 Bcfe in Q3 2023, reflecting a 4% increase in production volumes. For the first nine months of 2024, daily production also averaged 2.2 Bcfe, up from 2.1 Bcfe in the same period of the previous year.
| Production Type | Q3 2024 Production (Mcf/Bbl) | Q3 2023 Production (Mcf/Bbl) | Change (%) | 9M 2024 Production (Mcf/Bbl) | 9M 2023 Production (Mcf/Bbl) | Change (%) |
|---|---|---|---|---|---|---|
| Natural Gas | 138,193,783 Mcf | 133,305,469 Mcf | 4% | 406,943,086 Mcf | 396,367,927 Mcf | 3% |
| NGLs | 10,254,759 Bbl | 9,748,012 Bbl | 5% | 29,392,292 Bbl | 28,368,181 Bbl | 4% |
| Oil | 514,659 Bbl | 587,488 Bbl | (12%) | 1,717,958 Bbl | 1,818,773 Bbl | (6%) |
| Total | 202,810,291 Mcfe | 195,318,469 Mcfe | 4% | 593,604,586 Mcfe | 577,489,651 Mcfe | 3% |
Financial Performance
In Q3 2024, Range Resources achieved a net income of $50.7 million, or $0.21 per diluted share, compared to $49.4 million, or $0.20 per diluted share, in Q3 2023. For the first nine months of 2024, net income was $171.5 million, or $0.70 per diluted share, down from $561.1 million, or $2.27 per diluted share, in the same period of 2023.
Revenue Breakdown
Revenue from the sale of natural gas, NGLs, and oil totaled $533.3 million in Q3 2024, a slight increase of 1% compared to $526.7 million in Q3 2023. However, for the first nine months of 2024, revenue decreased by 9% to $1.578 billion from $1.731 billion in the same period of the previous year.
| Revenue Source | Q3 2024 ($000) | Q3 2023 ($000) | Change (%) | 9M 2024 ($000) | 9M 2023 ($000) | Change (%) |
|---|---|---|---|---|---|---|
| Natural Gas | 234,139 | 246,976 | (5%) | 715,266 | 913,915 | (22%) |
| NGLs | 266,186 | 238,211 | 12% | 750,547 | 695,368 | 8% |
| Oil | 32,952 | 41,531 | (21%) | 112,915 | 122,099 | (8%) |
| Total Revenue | 533,277 | 526,718 | 1% | 1,578,728 | 1,731,382 | (9%) |
Operating Expenses
Operating expenses have been closely monitored to optimize profitability. In Q3 2024, the direct operating expense per thousand cubic feet equivalent (Mcfe) was $0.12, consistent with Q3 2023. The transportation, gathering, processing, and compression expense per Mcfe was $1.51 in Q3 2024, up from $1.42 in Q3 2023.
| Expense Type | Q3 2024 ($000) | Q3 2023 ($000) | Change (%) |
|---|---|---|---|
| Transportation, Gathering, Processing, and Compression | 306,154 | 277,207 | 10% |
| Direct Operating Expense | 0.12 per Mcfe | 0.12 per Mcfe | 0% | General and Administrative Expense | 0.20 per Mcfe | 0.20 per Mcfe | 0% |
Liquidity and Capital Resources
As of September 30, 2024, Range Resources maintained a strong liquidity position with $277.5 million in cash and $1.3 billion available under its credit facility. The company generated $726.6 million in cash from operating activities during the first nine months of 2024, down from $751.8 million in the same period of 2023.
| Liquidity Metrics | As of September 30, 2024 | As of September 30, 2023 |
|---|---|---|
| Cash | $277.5 million | $295.2 million |
| Available Credit Facility | $1.3 billion | $1.5 billion |
| Total Liquidity | $1.577 billion | $1.795 billion |
Dividends and Stock Repurchases
In Q3 2024, Range Resources declared dividends of $0.08 per share, totaling $19.3 million. The company also repurchased $24.0 million in common stock and $3.0 million face value of senior notes due 2025 during the same period.
How Range Resources Corporation (RRC) Makes Money
Revenue Sources
Range Resources Corporation generates revenue primarily from the sale of natural gas, natural gas liquids (NGLs), and oil. For the third quarter of 2024, RRC reported total natural gas, NGLs, and oil sales of $533.3 million, which reflects a 1% increase compared to $526.7 million in the same period of 2023. However, for the first nine months of 2024, total sales decreased by 9% to $1.58 billion from $1.73 billion in the prior year.
| Revenue Source | Q3 2024 ($ million) | Q3 2023 ($ million) | Change (%) | 9M 2024 ($ million) | 9M 2023 ($ million) | Change (%) |
|---|---|---|---|---|---|---|
| Natural Gas Sales | 234.1 | 247.0 | (5) | 715.3 | 913.9 | (22) |
| NGLs Sales | 266.2 | 238.2 | 12 | 750.5 | 695.4 | 8 |
| Oil Sales | 33.0 | 41.5 | (21) | 112.9 | 122.1 | (8) |
| Total Sales | 533.3 | 526.7 | 1 | 1,578.7 | 1,731.4 | (9) |
Production Volumes
The company’s production averaged 2.2 billion cubic feet equivalent (Bcfe) per day during the third quarter of 2024, up from 2.1 Bcfe per day in the same quarter of 2023. For the first nine months of 2024, average daily production also increased to 2.2 Bcfe from 2.1 Bcfe in the prior year.
| Production Type | Q3 2024 (Mcf/Bbl) | Q3 2023 (Mcf/Bbl) | Change (%) | 9M 2024 (Mcf/Bbl) | 9M 2023 (Mcf/Bbl) | Change (%) |
|---|---|---|---|---|---|---|
| Natural Gas | 138,193,783 | 133,305,469 | 4 | 406,943,086 | 396,367,927 | 3 |
| NGLs | 10,254,759 | 9,748,012 | 5 | 29,392,292 | 28,368,181 | 4 |
| Oil | 514,659 | 587,488 | (12) | 1,717,958 | 1,818,773 | (6) |
Operating Expenses
In the third quarter of 2024, direct operating expenses were reported at $0.12 per thousand cubic feet equivalent (mcfe), unchanged from the same period in 2023. Transportation, gathering, processing, and compression expenses increased to $1.51 per mcfe, compared to $1.42 per mcfe in the same quarter of 2023.
| Expense Type | Q3 2024 ($/mcfe) | Q3 2023 ($/mcfe) | Change (%) | 9M 2024 ($/mcfe) | 9M 2023 ($/mcfe) | Change (%) |
|---|---|---|---|---|---|---|
| Direct Operating Expense | 0.12 | 0.12 | 0 | 0.12 | 0.13 | (8) |
| Transportation, Gathering, Processing, and Compression | 1.51 | 1.42 | 6 | 1.48 | 1.44 | 3 |
Net Income and Earnings
For the third quarter of 2024, Range Resources reported a net income of $50.7 million, or $0.21 per diluted share, compared to $49.4 million, or $0.20 per diluted share, in the same quarter of 2023. For the first nine months, net income was $171.5 million, or $0.70 per diluted share, down from $561.1 million, or $2.27 per diluted share, in the prior year.
| Period | Net Income ($ million) | EPS ($) |
|---|---|---|
| Q3 2024 | 50.7 | 0.21 |
| Q3 2023 | 49.4 | 0.20 |
| 9M 2024 | 171.5 | 0.70 |
| 9M 2023 | 561.1 | 2.27 |
Liquidity and Capital Resources
As of September 30, 2024, Range Resources maintained a cash balance of $277.5 million and had $1.3 billion available under its credit facility. The company generated $726.6 million in cash from operating activities in the first nine months of 2024, a decrease from $751.8 million in the same period of 2023.
| Liquidity Metrics | Amount ($ million) |
|---|---|
| Cash on Hand | 277.5 |
| Available Credit Facility | 1,300.0 |
| Cash from Operating Activities (9M 2024) | 726.6 |
| Cash from Operating Activities (9M 2023) | 751.8 |
Derivatives and Market Exposure
Range Resources utilizes commodity derivatives to manage price volatility. In the third quarter of 2024, the company reported derivative fair value income of $47.1 million, compared to $38.4 million in the same period of 2023. However, for the first nine months, derivative fair value income decreased significantly to $110.5 million from $530.1 million in the prior year.
| Derivative Income | Q3 2024 ($ million) | Q3 2023 ($ million) | 9M 2024 ($ million) | 9M 2023 ($ million) |
|---|---|---|---|---|
| Derivative Fair Value Income | 47.1 | 38.4 | 110.5 | 530.1 |
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Article updated on 8 Nov 2024
Resources:
- Range Resources Corporation (RRC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Range Resources Corporation (RRC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Range Resources Corporation (RRC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.