RRC Q2 Earnings Beat Estimates on Higher Output & Price Realizations

Strong quarterly results are driven by higher production and improved price realization.

RRC's Production & Price Performance

Production averaged 2,296.4 million cubic feet equivalent per day (MMcfe/d), up 4.5% from the prior-year quarter’s figure of 2,197.3 MMcfe/d. The figure came in lower than our projection of 2,385.9 MMcfe/d. Natural gas production increased 3%. Over the same time frame, oil production and NGL output increased 1% and 7%, respectively.

With daily production of 1,548.9 million cubic feet, natural gas represented about 67% of total output, while NGLs and oil accounted for the rest. NGL production averaged 118,113 barrels per day (Bbl/d), while oil output was 6,475 Bbl/d.

Range Resources turned 21 wells to sales during the quarter and completed roughly 300,000 lateral feet. The company drilled about 190,000 lateral feet across 11 wells.

Range Resources’ Realizations Strengthen Quarterly Results

The average realized price after derivative settlements before third-party transportation costs was $3.53 per Mcfe. Before NYMEX hedges, the realized price was $3.37 per Mcfe, while settled hedges added 16 cents per Mcfe.

Total price realization (excluding derivative settlements and before third-party transportation costs) averaged $3.36 per Mcfe, up 1% year over year. Price realization came in lower than our estimate of $3.41 per Mcfe.

Pre-hedge NGL realizations increased 29% to $29.10 per barrel, a $3.49 premium to the Mont Belvieu equivalent. Natural gas realized $2.42 per Mcf before NYMEX hedges, reflecting a 47-cent discount to the benchmark price. Oil realized price increased 59% to $83.96 per barrel before hedges.

RRC's Costs Reflect Higher Operating Activity

Total costs and expenses increased 5.5% year over year to $584.9 million from the $554.2 million reported a year ago. Transportation, gathering, processing and compression expense, the largest cost category, rose 4% to $316.8 million. Direct operating expense increased to $27.3 million from $22.6 million.

Total cash unit costs declined 3% to $1.92 per Mcfe from the prior-year figure of $1.97, aided by lower interest expense, which fell 46% to 7 cents per Mcfe from the year-ago figure of 13 cents. Total unit costs, including depletion, depreciation and amortization, decreased 2% to $2.37 per Mcfe.

Range Resources’ Efficiency Supports Development Momentum

Range Resources completed a record 1,900 stages with two crews during the quarter. The company posted a single-day completion record of 22 pumping hours and drilled nearly two miles in one day.

Second-quarter drilling and completion spending was $204 million. Range Resources invested another $8 million in acreage and $10 million in infrastructure, pneumatic upgrades and other projects. Total capital spending of $222 million represented about 33% of the annual budget

RRC's Cash Flow Funds Capital Returns

Cash flow from operating activities was $235 million. Cash flow from operations before changes in working capital totaled $332.5 million, up 10.7% from $300.5 million in the year-ago period.

RRC repurchased $78 million of shares and paid $24 million in dividends during the quarter. The company bought back 2 million shares at an average price of about $39.18 and retained $1.4 billion under its authorization.

Range Resources’ Balance Sheet Shows Lower Leverage

Net debt was $880.8 million at June 30, 2026, down 28% from $1.22 billion at year-end 2025.

RRC’s 2026 Outlook

RRC maintained its 2026 production outlook of 2.35-2.40 Bcfe per day, with liquids expected to account for more than 30% of output. The company retained its capital budget in the range of $650-$700 million.

The natural gas differential outlook improved to 35-40 cents below NYMEX from the prior range of 35-45 cents below NYMEX. NGL guidance was raised to a $2.00-$2.50 premium to the Mont Belvieu equivalent, while the oil and condensate differential improved to $10-$12 below WTI.

RRC’s Zacks Rank & Stocks to Consider

Range Resources currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the energy sector are Cheniere Energy, Inc. LNG, Venture Global, Inc. VG and NOV Inc. NOV. LNG sports a Zacks Rank #1 (Strong Buy), while NOV and VG carry a Zacks Rank #2 (Buy) each, at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

Houston, TX-based Cheniere Energy is primarily engaged in businesses of liquefied natural gas. LNG owns and operates major liquefaction and export facilities on the U.S. Gulf Coast, including the Sabine Pass and Corpus Christi terminals.The company is involved in liquefied natural gas and natural gas marketing. With growing demand for cleaner energy, LNG is well-positioned to meet this need through its liquefaction and export facilities. Cheniere Energyis scheduled to release second-quarter 2026 earnings on Aug. 6, 2026.

Venture Global is one of the largest cost-efficient liquefied natural gas exporters in the United States, operating major production facilities along the U.S. Gulf Coast. VG distinguishes itself through a highly efficient, modular construction approach, which enables faster project delivery and massive volumes of reliable natural gas. This innovative strategy allows the company to rapidly scale and meet the world's rising demand for cleaner energy. Venture Globalis scheduled to release second-quarter 2026 earnings on Aug. 11, 2026.

Houston, TX-based NOV is a global leader in the design, manufacture and sale of advanced equipment and components used in the oil and gas drilling, production, and renewable energy sectors. By leveraging its extensive proprietary technology portfolio, the company is well-positioned to reduce marginal costs and capitalize on the growing demand for oil and gas in the coming years. NOV is scheduled to release second-quarter 2026 earnings on July 28, 2026.

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