Range Resources Corporation RRC stock jumped more than 9% since it reported strong third-quarter 2022 results on Oct 24, thanks to higher realizations of commodity prices.
The company posted third-quarter adjusted earnings of $1.37 per share, beating the Zacks Consensus Estimate of $1.32. The bottom line significantly improved from the prior-year quarter’s earnings of 52 cents per share.
Total quarterly revenues of $1,104 million surpassed the Zacks Consensus Estimate of $1,080 million. The top line also improved from the prior-year quarter’s $795.4 million.
Range Resources Corporation Price, Consensus and EPS Surprise
Range Resources Corporation price-consensus-eps-surprise-chart | Range Resources Corporation Quote
In third-quarter 2022, the company’s production averaged 2,132.6 million cubic feet equivalent per day, down slightly from the prior-year period. Natural gas contributed 69.7% to total production, while NGLs and oil accounted for the rest.
Oil production declined 8% from the year-ago period, while NGL output increased 2%. Natural gas production declined.
Its total price realization (excluding derivative settlements and before third-party transportation costs) averaged $7.31 per thousand cubic feet equivalent (Mcfe), up 69% year over year. Natural gas prices rose 114% on a year-over-year basis to $7.70 per Mcf. NGL and oil prices increased 4% and 33%, respectively.
Costs & Expenses
Total costs and expenses declined to $677.8 million from $682.6 million in the year-ago quarter. Total transportation, gathering, processing and compression costs, as well as exploration costs, increased in the reported quarter.
Capital Expenditure & Balance Sheet
In the third quarter, the company’s drilling and completion expenditure was $133 million. An amount of $5 million was used in acreage and gathering facilities.
At the quarter's end, it had total debt of $1,831.7 million.
Zacks Rank & Stocks to Consider
Range Resources currently carries a Zacks Rank #3 (Hold). Better-ranked players in the same space include Magellan Midstream Partners MMP, EQT Corporation EQT and BP plc BP. All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Being a midstream energy player, Magellan Midstream’s business model is less exposed to volatility in oil and gas prices. In fact, contributions from core fee-based transportation and terminals activities have aided MMP’s results in the third quarter of this year.
In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. Being a leading producer of natural gas, EQT is benefiting from high natural gas prices. For 2022, it is likely to witness earnings growth of 369.6%.
The sizable refining and marketing operations of BP provide significant protection to the company from low commodity prices. The company is also focused on the reduction of net debt load. For 2022, BP is likely to witness earnings growth of 134.8%.
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