Oct 25, 2017 4 min read

Range sees increase in 3Q revenue

FORT WORTH, Texas – Range Resources said Tuesday it ended its third quarter with revenue of $482.2 million, a 17 percent increase from $413.2 million realized in the prior-year quarter.

The Fort Worth, Texas-based company reported earnings after the close of Tuesday’s stock market. It has its Marcellus Shale drilling operations in the Appalachian Basin based in Southpointe.

The company’s financial performace was backed by an increase in oil and gas production and higher price realizations, which were partially offset by higher expenses.

Range said its year-to-date GAAP net income was $112 million, or 45 cents per share, compared to a net loss of $361 million, or $2.10 per share for the comparable quarter of last year.

The company had record third-quarter production of 1.99 billion cubic feet per day, a 32 percent increase compared to the third quarter of 2016. It said third-quarter natural gas liquids pre-hedge realized prices improved 52 percent to $16.93 per barrel versus $11.17 per barrel for the third quarter of 2016.

In reporting its Appalachian Division activities, Range said production in the third quarter averaged 1.60 billion cubic feet per day, a 15 percent increase over the prior-year quarter. Overall production and realized prices by each commodity for the third quarter were natural gas (1,322 MMcf perday at $2.48 per mcf); natural gas liquids (96,661 barrels at $16.93 per barrel); and crude oil and condensate (14,003 barrels per day at $43.34 per barrel).

Range said its expenses for the third quarter were $681.9 million, a year-over-year increase of 45 percent.

“This is an exciting time for Range as we are nearing an inflection point in our Marcellus development and continue to improve well results in North Louisiana,” said Range CEO Jeff Ventura. “In the Marcellus, the last of our natural gas transportation projects are coming on line over the next few months” which he said enables the company “to develop our Marcellus position over the long-term while having access to better priced markets.”

For the fourth quarter, the company’s production guidance stands pat at 2.2 billion cubic feet equivalent per day. Range also reiterated its 2017 capital budget of $1.5 billion.

Durable goods orders rise in Sept.

WASHINGTON – Orders for long-lasting manufactured goods rose 2.2 percent in September, the biggest gain in three months, led by a big increase in orders for commercial aircraft. A key category that tracks business investment posted a third straight solid monthly gain.

The September advance in durable goods followed a 2 percent rise in August and was the sharpest increase since a 6.4 percent jump in June, the Commerce Department said Wednesday.

Economists said the 2.2 percent rise in September orders, double what they had been expecting, was a good sign that the long-awaited rebound in manufacturing is on track, helped by an improving global economy.

“There isn’t a single area in the world that isn’t moving forward at the moment and they need American manufacturers’ machinery and equipment to help build their economies. Export demand is surging,” said Chris Rupkey, chief financial economist at MUFG Union Bank in New York.

Norfolk Southern hauls in more profit

OMAHA, Neb. – Norfolk Southern Corp. delivered a 10 percent increase in third-quarter profit as the railroad hauled 4 percent more freight and continued working to limit its expenses.

The Norfolk, Va.-based railroad said Wednesday that it had a quarterly profit of $506 million, or $1.75 per share. That’s up from $460 million, or $1.55 per share.

The results topped Wall Street expectations. The 11 analysts surveyed by Zacks Investment Research expected earnings of $1.64 per share on average.

“We look ahead to the remainder of the year with confidence, based on current economic trends,” Executive Vice President Alan Shaw said.

The railroad said revenue grew 6 percent to $2.67 billion. Seven analysts surveyed by Zacks expected $2.63 billion.

Norfolk Southern said its coal revenue grew 13 percent to $449 million in the quarter thanks to a surge in demand for export coal.

Norfolk Southern continues working to reduce its expenses by $650 million and improve efficiency by 2020. The railroad expects to cut roughly $150 million of costs this year after trimming $250 million in expenses last year.

Citi analyst Christian Wetherbee said Norfolk Southern appears to be making strides in operating improvement, and that could help it compete for business next year when the trucking market is expected to be tighter.

Norfolk Southern operates about 20,000 miles of track in 22 states and the District of Columbia.

Norfolk Southern shares have climbed 22 percent since the beginning of the year, while the Standard & Poor’s 500 index has increased 15 percent.