Range 1Q beats Street estimates
FT WORTH, Texas – Range Resources Corp. Monday reported first-quarter net income of $170.1 million, after reporting a net loss of $94 million, or 56 cents per share in the same period a year earlier.
On a per-share basis, the Ft Worth, Texas-based company, which has its Appalachian Basin operations based in Southpointe, said it had a per share profit of 69 cents. Earnings, adjusted for non-recurring gains, were 25 cents per share.
The results, which were reported after the close of Monday’s market, surpassed Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of 19 cents per share.
The independent oil and gas company posted revenue of $776.7 million in the period, also surpassing Street forecasts. Ten analysts surveyed by Zacks expected $569.3 million.
The company said in a press release that total unit costs continued to decline, with first quarter costs of $2.57 per thousand cubic feet, compared to $2.71 in the previous quarter.
The company said its production for the second quarter is expected to be about 1.93 billion cubic feet per day with 30 percent to 32 percent liquids. The company said it is on target with its $1.15 billion capital budget for 2017.
In an effort to streamline its operations and reduce costs, the company combined its southern marcellus and northern marcellus division, which will now be known as the Appalachian division.
“The first quarter of 2017 was an excellent quarter for Range,” said CEO Jeff Ventura in a statement. “First quarter cash margins improved to $1.47 per mcfe, compared to $0.77 per mcfe a year ago. In addition to improved macroeconomic conditions, margin expansion is being driven by improving netbacks from better transportation arrangements and a continued focus on cost and operational improvements throughout the company.”
Range Resources shares have dropped 21 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed 6 percent. In the final minutes of trading on Monday, shares hit $27.23, a decline of 31 percent in the last 12 months.