Range Announces Fourth Quarter Production and Pricing

Rhea-AI Summary

Range Resources Corporation (RRC) announced fourth quarter 2023 production and pricing expectations, including daily natural gas, NGL, and oil production figures. The company also reported contingent derivative settlement gains of $8.0 million related to the North Louisiana divestiture. Range Resources Corporation is a leading U.S. independent natural gas and NGL producer with operations focused in the Appalachian Basin.

Insights

Market Research Analyst

Range Resources Corporation's recent update on its fourth quarter 2023 production and pricing provides critical data for investors and market analysts. The reported average daily production of 2,207 million cubic feet equivalent (Mmcfe) indicates a robust operational capacity, particularly in the context of the natural gas sector's volatility. The average natural gas price of $2.68 per thousand cubic feet (mcf), inclusive of all hedges, is significant because it reflects the company's ability to manage price risk amidst fluctuating market prices.

Furthermore, the $8.0 million in contingent derivative settlement gains is a non-recurring benefit that will positively impact the company's financials in the short-term. However, it is essential to note that this represents the final year of divestiture contingent payments, which implies that this particular income stream will not continue in the future. This could affect the company's future cash flows and should be considered when assessing the company's long-term financial health.

Financial Analyst

The differential to NYMEX of ($0.48) per mcf for natural gas may raise concerns among investors, as it suggests that the company's gas was sold at a discount to the benchmark pricing. The reasons behind this differential could be region-specific transportation and quality differentials or possibly limited access to premium markets. On the other hand, the Natural Gas Liquids (NGL) realizations being $2.42 above the Mont Belvieu weighted equivalent is a positive indicator, reflecting either superior product quality or advantageous contractual terms.

It is also noteworthy that the crude oil and condensate price realizations were $10.56 below the West Texas Intermediate (WTI) benchmark. This substantial discount could be attributed to transportation bottlenecks, regional market conditions, or quality differentials. The hedging strategy that resulted in an average condensate price of $63.42 per barrel, despite the lower spot prices, is indicative of effective risk management strategies to cushion against price volatility.

Energy Sector Analyst

The production figures and pricing details provided by Range Resources Corporation are indicative of the broader trends in the energy sector, especially within the Appalachian Basin where the company operates. The natural gas and NGL production levels are reflective of the increasing demand for cleaner-burning fuels. The reported figures suggest that Range Resources is effectively capitalizing on this trend, which is crucial for maintaining competitiveness in the energy market.

The contingent derivative settlement gains related to the North Louisiana divestiture signify the culmination of a strategic move to streamline operations and focus on core areas. This decision could have long-term benefits, including improved operational efficiency and reduced overhead costs. However, investors should also consider the impact of the cessation of these payments on the company's revenue diversification.

FORT WORTH, Texas, Feb. 06, 2024 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (NYSE: RRC) today announced fourth quarter 2023 expectations for production and pricing with fourth quarter production averaging approximately 2,207 Mmcfe per day. In addition, Range realized $8.0 million in contingent derivative settlement gains in fourth quarter 2023.

Production and Pricing

Fourth quarter 2023 daily natural gas production averaged approximately 1,540 Mmcf per day. The average natural gas realization, including the impact of basis hedges, was $2.40 per mcf, a ($0.48) per mcf differential to NYMEX. The average natural gas price, including all settled hedges, was $2.68 per mcf.

Fourth quarter 2023 daily NGL production averaged approximately 104,038 barrels per day. NGL realizations were $24.91 per barrel, approximately $2.42 above the Mont Belvieu weighted equivalent.

Fourth quarter 2023 daily oil and condensate production averaged approximately 7,136 barrels per day. Crude oil and condensate price realizations, before realized hedges, averaged $67.72 per barrel, approximately $10.56 below WTI (West Texas Intermediate). The average condensate price, including settled hedges, was $63.42 per barrel.

Contingent Derivatives

In fourth quarter 2023, Range realized a total of $8.0 million in contingent derivative settlement gains related to the North Louisiana divestiture. This represents the final year of divestiture contingent payments, and Range expects to receive the cash proceeds in the first half of 2024.

RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused in the Appalachian Basin. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com.

SOURCE: Range Resources Corporation

Range Investor Contact:

Laith Sando, Vice President – Investor Relations
817-869-4267
lsando@rangeresources.com

Range Media Contact:

Mark Windle, Director of Corporate Communications
724-873-3223
mwindle@rangeresources.com

FAQ

What are Range Resources Corporation's (RRC) fourth quarter 2023 production figures?

Range Resources Corporation reported fourth quarter 2023 daily natural gas production averaging approximately 1,540 Mmcf per day, NGL production averaging approximately 104,038 barrels per day, and oil and condensate production averaging approximately 7,136 barrels per day.

What were the average prices realized by Range Resources Corporation for natural gas, NGL, and oil in the fourth quarter of 2023?

The average natural gas realization, including the impact of basis hedges, was $2.40 per mcf, with an average natural gas price, including all settled hedges, of $2.68 per mcf. NGL realizations were $24.91 per barrel, and crude oil and condensate price realizations, before realized hedges, averaged $67.72 per barrel.

What were the contingent derivative settlement gains realized by Range Resources Corporation in the fourth quarter of 2023?

Range Resources Corporation realized $8.0 million in contingent derivative settlement gains related to the North Louisiana divestiture in the fourth quarter of 2023.

Where is Range Resources Corporation headquartered?

Range Resources Corporation is headquartered in Fort Worth, Texas.

What are the operations focus of Range Resources Corporation?

Range Resources Corporation has operations focused in the Appalachian Basin as a leading U.S. independent natural gas and NGL producer.