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Range Resources(RRC) - 2023 Q4 - Annual Results
RRCRange Resources(RRC)2024-02-22 16:37

Financial Performance - The company reported fourth quarter 2023 revenues of 941millionandnetincomeof941 million and net income of 310 million, translating to 1.27perdilutedshare,includinga1.27 per diluted share, including a 291 million mark-to-market derivative gain[15][16]. - Total revenues and other income for Q4 2023 were 941,357,adecreaseof42941,357, a decrease of 42% compared to 1,630,379 in Q4 2022[46]. - Net income for Q4 2023 was 310,034,down62310,034, down 62% from 814,236 in Q4 2022[46]. - Basic net income per share decreased to 1.29inQ42023from1.29 in Q4 2023 from 3.38 in Q4 2022, representing a decline of 62%[47]. - Total costs and expenses for Q4 2023 were 554,411,adecreaseof12554,411, a decrease of 12% compared to 632,556 in Q4 2022[46]. - Cash provided from operating activities for the twelve months ended December 31, 2023, was 977,892,adecreasefrom977,892, a decrease from 1,864,744 in 2022[54]. - Total revenues for the twelve months ended December 31, 2023, were 2,334,661,downfrom2,334,661, down from 4,911,092 in 2022[68]. - The company reported a diluted earnings per share of 0.63forQ42023,adecreaseof520.63 for Q4 2023, a decrease of 52% from 1.30 in Q4 2022[66]. Cash Flow and Capital Allocation - Range's 2023 free cash flow was allocated towards debt reduction and shareholder returns, with a net debt reduction of 292million,resultinginayear−endnetdebtofapproximately292 million, resulting in a year-end net debt of approximately 1.58 billion[6][12]. - Cash flow from operations before working capital changes for Q4 2023 was 300million,withtotalcashunitcostsdecreasingby6300 million, with total cash unit costs decreasing by 6% year-over-year to 1.83 per mcfe[6][17]. - Cash flow from operations before changes in working capital for Q4 2023 was 299,898,down41.4299,898, down 41.4% from 512,947 in Q4 2022[56]. - Cash margin for Q4 2023 was 298,445,adecreaseof41298,445, a decrease of 41% from 506,621 in Q4 2022[68]. - The company reported a total debt of 1,774,229asofDecember31,2023,downfrom1,774,229 as of December 31, 2023, down from 1,841,960 in 2022[50]. Production and Reserves - Proved reserves at year-end 2023 increased to 18.1 Tcfe, with a present value (PV10) of reserves under SEC methodology at 7.9billion[21][22].−ProductionofnaturalgasinQ42023was141,716,740mcf,a27.9 billion[21][22]. - Production of natural gas in Q4 2023 was 141,716,740 mcf, a 2% increase from 139,608,410 mcf in Q4 2022[60]. - Average daily production of oil in Q4 2023 was 7,136 bbl, a 7% increase from 6,696 bbl in Q4 2022[60]. - The company produced 203,085 Mmcfe during Q4 2023, a slight increase from 202,813 Mmcfe in Q4 2022[68]. Expenses and Costs - The company experienced a derivative fair value loss of 291,059 in Q4 2023, compared to a loss of 448,181inQ42022[54].−Thecompany’sexplorationexpensesforthetwelvemonthsendedDecember31,2023,were448,181 in Q4 2022[54]. - The company’s exploration expenses for the twelve months ended December 31, 2023, were 25,280, slightly up from 25,194in2022[46].−Transportation,gathering,processing,andcompressionexpensepermcfeinQ42023was25,194 in 2022[46]. - Transportation, gathering, processing, and compression expense per mcfe in Q4 2023 was 1.39, a decrease of 4% from 1.45inQ42022[60].−Depletion,depreciation,andamortizationexpensestotaled1.45 in Q4 2022[60]. - Depletion, depreciation, and amortization expenses totaled 90.968 million, slightly up from 90.847million[70].−Stock−basedcompensationexpensestotaled90.847 million[70]. - Stock-based compensation expenses totaled 10,638 for Q4 2023, slightly down from 11,140inQ42022[66].MarketandPricing−TheaveragerealizedpricefornaturalgasinQ42023was11,140 in Q4 2022[66]. Market and Pricing - The average realized price for natural gas in Q4 2023 was 2.68 per Mcf, with a differential of (0.48)toNYMEX,andthe2024expecteddifferentialisprojectedtobe(0.48) to NYMEX, and the 2024 expected differential is projected to be (0.40) to (0.45)[19][20].−Averagepriceofnaturalgas(excludingderivativesettlements)inQ42023was0.45)[19][20]. - Average price of natural gas (excluding derivative settlements) in Q4 2023 was 2.26 per mcf, a 59% decrease from 5.52permcfinQ42022[60].−NaturalgassalesinQ42023were5.52 per mcf in Q4 2022[60]. - Natural gas sales in Q4 2023 were 320,393, down 58.4% from 770,571inQ42022[60].−TotaloilandgassalesforQ42023were770,571 in Q4 2022[60]. - Total oil and gas sales for Q4 2023 were 603,279, representing a 44% decrease compared to 1,086,697inQ42022[60].FutureOutlookandGuidance−Range′s2024all−incapitalbudgetisexpectedtobebetween1,086,697 in Q4 2022[60]. Future Outlook and Guidance - Range's 2024 all-in capital budget is expected to be between 620 million and 670million,targetingflatproductionofapproximately2.12to2.16Bcfeperday[5][24].−Thecompanyplanstoruntwodrillingrigsandonefraccrewin2024,withapproximately670 million, targeting flat production of approximately 2.12 to 2.16 Bcfe per day[5][24]. - The company plans to run two drilling rigs and one frac crew in 2024, with approximately 30 to 45millionallocatedfordrillingandcompletioncapitaltoaddtowell−in−processinventory[5][25].−Range′s2024guidanceincludesdirectoperatingexpensesof45 million allocated for drilling and completion capital to add to well-in-process inventory[5][25]. - Range's 2024 guidance includes direct operating expenses of 0.13 to 0.14permcfeandtransportation,gathering,processing,andcompressionexpensesof0.14 per mcfe and transportation, gathering, processing, and compression expenses of 1.45 to 1.55permcfe[26].−Thecompanyexpectstoinvestupto1.55 per mcfe[26]. - The company expects to invest up to 30 million in targeted acreage to increase lateral lengths and future inventory, along with 15to15 to 20 million for water infrastructure improvements[5][25]. Company Overview and Strategy - Range Resources Corporation is a leading independent natural gas and NGL producer focused in the Appalachian Basin[38]. - Forward-looking statements regarding future performance are based on management's assumptions and estimates, subject to risks and uncertainties[39]. - The company has not disclosed its probable and possible reserves, focusing instead on broader terms like "resource potential"[42]. - Production forecasts depend on estimates of production decline rates and future drilling activity, which may be affected by commodity price changes[43].