Range Resources Corporation RRC reported fourth-quarter 2023 adjusted earnings of 63 cents per share, which beat the Zacks Consensus Estimate of 42 cents. However, the bottom line declined from the prior-year quarter’s level of $1.26.

Total quarterly revenues of $715 million beat the Zacks Consensus Estimate of $677 million. The top line, however, declined from the prior-year quarter’s figure of $998 million.

Better-than-expected quarterly results were driven by higher production and lower total costs and expenses. However, lower realizations of commodity prices partially offset the positives.

Range Resources Corporation Price, Consensus and EPS Surprise

Range Resources Corporation price-consensus-eps-surprise-chart | Range Resources Corporation Quote

Operational Performance

The company’s production averaged 2,207 million cubic feet equivalent per day (Mcfe/d) in the reported quarter, up from 2,204 Mcfe/d reported in the prior-year period. The figure also beat our projection of 2139.2 Mcfe/d. Natural gas accounted for 69.8% of total production, while NGLs and oil contributed to the rest.

Oil production increased 7% year over year, while NGL output declined 3%. Natural gas production increased 2% during the same time frame.

Total price realization (excluding derivative settlements and before fourth-party transportation costs) averaged $2.97 Mcfe, down 45% year over year. Notably, price realization was on par with our estimate of $2.97 Mcfe. Natural gas prices declined 59% on a year-over-year basis to $2.26 per Mcf. NGL prices declined 8%, while oil prices fell 10%.

Costs & Expenses

Total costs and expenses declined to $554.4 million from $632.6 million in the year-ago quarter. The reported figure came in lower than our expectation of $644.5 million. Transportation, gathering, processing and compression costs, which form a major part of the total costs, came down to $283.1 million from $294.2 million in the prior-year period.

Capital Expenditure & Balance Sheet

The company’s drilling and completion expenditure amounted to $118.3 million in the reported quarter. An amount of $16.7 million was used in acreage and gathering facilities.

RRC had a total debt of $1,774.2 million at the end of the reported quarter.

Outlook

Range Resources projects 2024 total production in the range of 2.12-2.16 billion cubic feet equivalent per day, with 30% attributed to liquids production.

RRC estimated a capital budget of $620-$670 million for the year. Direct operating expenses are estimated to be in the range of 13-14 cents per Mcfe. Exploration expenses are projected to be in the band of $22-$28 million for fiscal 2024.