Range Resources Corp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.27%.
Did RRC Beat Earnings? Q2 2025 Results
Range Resources posted a mixed second quarter for 2025, beating revenue expectations by a wide margin while falling just short on earnings per share. The Appalachian natural gas producer reported revenue of $856.27 million, well above the $708.38 million consensus and up 68.0% year-over-year, yet adjusted EPS of $0.66 missed the $0.70 estimate by 5.10%. The headline story, however, was the dramatic recovery in natural gas prices, with pre-hedge realizations averaging $2.92 per mcf compared to just $1.54 per mcf a year ago, a 90% improvement that powered cash margins to $1.53 per mcfe from $1.22. Production averaged 2.20 Bcfe per day, up 2% year-over-year, and capital spending of $154 million tracked below plan, giving management confidence to narrow its 2025 capital budget to $650 to $680 million while raising full-year production guidance to approximately 2.225 Bcfe per day. The company also reduced net debt by 13% from year-end 2024 to approximately $1.22 billion, repurchased $53 million in shares, and improved its NGL differential guidance for the year.
- Natural gas prices increased 90% year-over-year, with pre-hedge realizations of $2.92/mcf vs $1.54/mcf
- NGL realizations at $0.61 premium to Mont Belvieu equivalent
- Operational efficiencies resulted in year-to-date capital spending approximately $10 million below plan
- Production increased 2% year-over-year to 2.20 Bcfe per day
- NGL production volumes increased 7% year-over-year
- $155 million mark-to-market derivative gain due to commodity price decreases boosted GAAP results
- Cash margin per mcfe improved to $1.53 from $1.22 year-over-year
“This year is off to a great start with another quarter of efficiency gains and consistent well performance driving strong free cash flow and building operational momentum. Our strong financial results supported $74 million in share repurchases and dividends, while lowering net debt to $1.2 billion. We believe Range is well positioned to benefit as in-basin demand opportunities materialize alongside a global call on natural gas. Range is one of the few producers in Appalachia with sufficient high-quality inventory to support the required growth in baseload supply. Further, Range's continued efficiencies are supported by our countercyclical investments in drilled inventory over the last 18 months and consistent well results. Importantly, we intend to help meet future demand increases while also returning significant capital to shareholders.”
Range Resources CEO, on the earnings call
Forward Guidance & Outlook
Range narrowed its 2025 all-in capital budget to $650–$680 million (down from $650–$690 million) due to operational efficiencies, while raising annual production guidance to approximately 2.225 Bcfe per day from ~2.2 Bcfe per day. Liquids are expected to comprise over 30% of production. The company improved its 2025 NGL differential guidance to +$0.40 to +$1.25 relative to a Mont Belvieu equivalent barrel (from +$0.25 to +$1.25). Natural gas differential guidance remains ($0.40) to ($0.48) to NYMEX, and condensate differential guidance remains ($10.00) to ($15.00) relative to NYMEX. Updated expense guidance includes direct operating expense of $0.12–$0.13/mcfe (narrowed from $0.12–$0.14), and G&A expense of $0.17–$0.18/mcfe (improved from $0.17–$0.19). Range plans 46 total wells to sales in 2025 and expects to exit the year with greater than 400,000 lateral feet of drilled inventory to support future development.
RRC YoY Financials
RRC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.