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Range Resources Q2 Output Meets Expectations as Buybacks Beat Forecasts, TPH Energy Says

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Range Resources (RRC) reported Wednesday Q2 production of 2,296 million cubic feet equivalent per day, matching expectations, while stronger cash flow and share repurchases highlighted the quarter, TPH Energy said in a Wednesday note.

Quarterly production reached 2,296 MMcfe/d, broadly matching TPH Energy's 2,300 MMcfe/d estimate and topping the Street's 2,283 MMcfe/d forecast, the research firm said.

The company spent about $220 million on capital projects during the quarter, compared with TPH Energy's $219 million estimate and the Street's $189 million forecast. TPH Energy attributed the higher spending to an additional hydraulic fracturing crew entering operations.

Range Resources realized $2.42 per million British thermal units during the quarter, matching TPH Energy's estimate. Cash costs declined to $1.68 per thousand cubic feet equivalent from TPH Energy's $1.77 estimate, largely because of lower gathering, processing and transportation costs.

Lower operating costs lifted cash from operations before working capital changes to $333 million, exceeding TPH Energy's $306 million estimate and the Street's $287 million forecast.

The company repurchased $78 million of shares during the quarter, well above TPH Energy's $32 million projection, providing another positive surprise in the results, the research firm added.

Range Resources maintained full-year production guidance of 2.35 Bcfe/d to 2.40 Bcfe/d and kept capital spending guidance at about $675 million at the midpoint.

TPH Energy forecasts 2.39 Bcfe/d and $689 million of capital, while the Street expects 2.37 Bcfe/d and $686 million.

TPH Energy expects investors to focus on the pace of production growth during the second half as new infrastructure enters service.

The research firm projects an exit production rate of 2.56 Bcfe/d, compared with the Street's 2.53 Bcfe/d.

Range Resources also delivered another strong quarter for natural gas liquids pricing, with a premium of $3.49 per barrel over Mont Belvieu compared with TPH Energy's $2.25/bbl estimate.

The company raised its full-year pricing outlook to a premium of $2/bbl to $2.50/bbl.

The updated investor presentation also increased the company's high-case outlook for Northeast power demand through the end of the decade, according to TPH Energy.

Price: $38.41, Change: $+0.66, Percent Change: +1.75%

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