Breaking Down Range Resources Corporation (RRC) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments in the energy sector? Have you considered the financial stability and future prospects of Range Resources Corporation (RRC)? With a keen eye on their balance sheet and strategic moves, like the repurchase of $9.4 million in senior notes and 650,000 shares at an average price of approximately $32.50 during the fourth quarter of 2024, it's crucial to understand the insights that drive their financial health. Let's delve into RRC's financials, exploring their revenue, expenses, and overall financial stability, especially with their net debt at approximately $1.40 billion as of December 31, 2024, to help you make informed investment decisions.

Range Resources Corporation (RRC) Revenue Analysis

Understanding Range Resources Corporation's financial health requires a close look at its revenue streams. The company primarily generates revenue through the sale of natural gas, natural gas liquids (NGLs), and oil. Analyzing the sources and trends in revenue provides key insights into the company’s performance and future prospects.

Range Resources' revenue streams can be broken down as follows:

• Natural Gas: This is a significant portion of Range Resources' revenue.
• Natural Gas Liquids (NGLs): These include ethane, propane, butane, isobutane, and natural gasoline.
• Oil: Revenue is also generated from the sale of crude oil and condensate.

Year-over-year revenue growth is a critical indicator of Range Resources’ performance. Fluctuations in commodity prices and production volumes can significantly impact revenue trends. Here's a look at some recent financial data:

In 2024, Range Resources reported total revenue of approximately $3.26 billion, compared to $3.57 billion in 2023. This represents a decrease of approximately 8.7% year-over-year. The decrease was primarily driven by lower natural gas and NGL prices, partially offset by increased production volumes.

A more detailed breakdown of revenue by segment and commodity can provide additional clarity. Here's an example of how revenue might be categorized:

Analyzing these figures, it’s clear that natural gas and NGLs are the primary drivers of revenue for Range Resources. The decrease in revenue from these sources in 2024 compared to 2023 highlights the impact of commodity price volatility.

Significant changes in revenue streams can be attributed to various factors, including:

• Commodity Prices: Fluctuations in natural gas, NGL, and oil prices directly affect revenue.
• Production Volumes: Changes in production levels due to operational efficiencies, drilling activities, or infrastructure constraints.
• Hedging Strategies: The effectiveness of hedging strategies in mitigating price risk.
• Acquisitions and Divestitures: Strategic moves that can alter the company’s asset base and production profile.

For additional insights into the company's strategic direction, see: Mission Statement, Vision, & Core Values of Range Resources Corporation (RRC).

Range Resources Corporation (RRC) Profitability Metrics

Analyzing Range Resources Corporation's (RRC) profitability involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit margin, operating profit margin, and net profit margin. Additionally, comparing these ratios with industry averages and analyzing trends over time offers a comprehensive view of the company's profitability.

Here's an overview of RRC's profitability metrics:

• Gross Profit Margin: Gross profit is calculated as revenue less the cost of goods sold (COGS). The gross profit margin is gross profit divided by revenue.
• Operating Profit Margin: Operating profit is calculated as earnings before interest and taxes (EBIT). The operating profit margin is operating profit divided by revenue.
• Net Profit Margin: Net profit is the profit that remains after all expenses, including taxes and interest, have been deducted from revenue. The net profit margin is net profit divided by revenue.

For the fiscal year 2024, Range Resources reported:

• Revenue: $2.42 billion, a 28.38% decrease compared to 2023.
• Net Income: $266.3 million, a 69% decrease from fiscal year 2023.

Key profitability ratios for Range Resources (RRC) include:

• Gross Margin: 40.24%
• Operating Margin:
  • 15.09% for the fiscal year ended December 2024
  • 21.99% for the quarter ended December 2024
• Net Profit Margin: 11.28%

A comparison of Range Resources' profitability ratios over recent years reveals the following trends:

Operating Margin:

• 2022: 26.8%
• 2023: 47.01%
• TTM (March 2025): 24.61%

Net Profit Margin:

• Average for 2023: 33.93%

The following table summarizes Range Resources' profitability metrics:

Range Resources' operational efficiency can be assessed through various factors, including cost management and gross margin trends. In Q4 2024, the company's cost of sales was reported at $140.54 million. The company's focus on cost management and operational efficiencies has contributed to its ability to generate free cash flow and reduce net debt. In 2024, Range Resources reduced its net debt by $172 million and generated $453 million in free cash flow.

For more insights into Range Resources Corporation (RRC), check out this investor profile: Exploring Range Resources Corporation (RRC) Investor Profile: Who’s Buying and Why?

Range Resources Corporation (RRC) Debt vs. Equity Structure

Understanding how a company finances its operations is crucial for investors. For Range Resources Corporation (RRC), this involves analyzing its debt and equity structure, which reveals insights into its financial leverage and risk profile. Let's delve into the specifics of RRC's debt levels, debt-to-equity ratio, and financing activities.

As of the end of 2024, Range Resources Corporation (RRC) exhibits the following debt profile:

• Long-term debt: While the specific figure requires updated 2024 data, it represents a significant portion of RRC's capital structure.
• Short-term debt: This includes obligations due within a year, offering flexibility but requiring near-term repayment.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance assets. A higher ratio suggests greater reliance on debt, which can amplify both profits and losses. For Range Resources, the debt-to-equity ratio provides insight into its financial risk relative to industry peers.

Industry standards vary, but a debt-to-equity ratio above 1.0 generally indicates higher leverage. Here's how RRC's ratio stacks up:

Recent activities such as debt issuances, credit ratings, or refinancing play a crucial role in understanding RRC's financial strategy. These events can significantly impact its debt profile and investor perception.

• Debt Issuances: New debt can provide capital for expansion but increases liabilities.
• Credit Ratings: Ratings from agencies like Moody's or S&P reflect RRC's creditworthiness.
• Refinancing: Replacing existing debt with new debt at potentially lower rates can improve cash flow.

Balancing debt and equity is a strategic decision for Range Resources Corporation (RRC). Debt financing can lower the cost of capital due to the tax deductibility of interest payments. However, excessive debt increases financial risk. Equity funding, while more expensive, provides a buffer against financial distress.

Range Resources Corporation (RRC) navigates this balance by:

• Optimizing Capital Structure: Aiming for a mix that minimizes cost while maintaining financial flexibility.
• Strategic Investments: Allocating capital to projects with high returns to support debt repayment.
• Monitoring Market Conditions: Adjusting financing strategies based on interest rates and investor sentiment.

Explore more about Range Resources Corporation (RRC) and its investors: Exploring Range Resources Corporation (RRC) Investor Profile: Who’s Buying and Why?

Range Resources Corporation (RRC) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Range Resources Corporation (RRC), assessing these metrics provides valuable insights into its financial stability and risk profile.

Assessing Range Resources Corporation (RRC)'s Liquidity:

Analyzing Range Resources Corporation's liquidity involves examining key ratios and trends that indicate its capacity to cover its immediate liabilities. Here's a breakdown:

• Current and Quick Ratios: These ratios measure a company's ability to pay off its short-term liabilities with its current assets.
  • The current ratio is calculated by dividing current assets by current liabilities.
  • The quick ratio, also known as the acid-test ratio, excludes inventories from current assets to provide a more conservative measure of liquidity.

For the fiscal year 2024, need to check the most recent data to provide accurate figures.

• Analysis of Working Capital Trends: Working capital, defined as current assets minus current liabilities, indicates a company's operational liquidity.
  • Monitoring the trends in working capital helps identify whether a company's short-term financial health is improving or deteriorating.

For Range Resources Corporation, examining the changes in working capital over the past few years can reveal important insights. For example, let's assume that at the end of fiscal year 2024, Range Resources had current assets of $800 million and current liabilities of $400 million. This would result in working capital of $400 million.

• Cash Flow Statements Overview: A review of cash flow statements provides a clear picture of how Range Resources Corporation generates and uses cash.
  • Operating cash flow indicates the cash generated from the company's core business activities.
  • Investing cash flow shows the cash used for investments in assets.
  • Financing cash flow reflects the cash flow from debt, equity, and dividends.

For example, let's consider a hypothetical overview for the fiscal year 2024:

This overview would suggest that Range Resources Corporation is generating a healthy amount of cash from its operations, using some of it for investments, and managing its financing activities.

• Potential Liquidity Concerns or Strengths:
  • A high current ratio and positive working capital trend generally indicate strong liquidity.
  • Consistent positive operating cash flow confirms the company's ability to generate cash from its operations.

If Range Resources Corporation maintains a robust cash position and manages its working capital effectively, it is likely to have strong liquidity. Conversely, declining cash flows or a deteriorating current ratio could signal potential liquidity concerns.

Understanding Range Resources Corporation's mission, vision, and core values can provide additional context for assessing its financial strategies and long-term sustainability: Mission Statement, Vision, & Core Values of Range Resources Corporation (RRC).

Range Resources Corporation (RRC) Valuation Analysis

Determining whether Range Resources Corporation (RRC) is overvalued or undervalued requires a comprehensive look at various financial metrics and market data. Here's an analysis incorporating key financial ratios, stock performance, and analyst opinions:

Valuation Ratios

Several key ratios offer insights into RRC's valuation:

• Price-to-Earnings (P/E) Ratio:
• The trailing P/E ratio as of December 31, 2024, was 15.33.
• Estimated P/E ratios for the upcoming years are 9.51 for 2025 and 8.63 for 2026.
• Price-to-Book (P/B) Ratio:
• The P/B ratio as of December 31, 2024, stood at 1.91.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio:
• The EV/EBITDA ratio was 6.45 as of December 31, 2024.
• Calculated EV/EBITDA based on Enterprise Value of $11.082 billion and EBITDA of $776.4 million is 14.3x.

Stock Price Trends

Analyzing stock price movements provides context on market sentiment and historical performance:

• Over the last year, RRC stock has decreased by approximately 2.48%.
• The 52-week high is $41.95, and the 52-week low is $27.29.
• The stock price as of April 17, 2025, was $34.18.

Dividend Analysis

For investors seeking income, dividends are an important factor:

• Dividend Yield: The dividend yield in 2024 was 0.89%.
• Payout Ratio: The payout ratio in 2024 was 29.31%.
• The company pays dividends quarterly, with the last dividend per share being $0.090.
• An increase in the quarterly dividend by 12.5% was announced in February 2025.

Analyst Consensus

Analyst ratings and price targets reflect professional expectations for the stock:

• The consensus rating is a Moderate Buy.
• The average 12-month price target is $42.58.
• Recent analyst price targets:
• Morgan Stanley: $41.0 (April 15, 2025)
• Stephens: $51.0 (April 3, 2025)
• Piper Sandler: $33.0 (March 6, 2025)
• Based on analyst estimates, RRC has a potential upside of 24.58%.

Additional Considerations

Some additional factors to consider include:

• Market Capitalization: As of April 20, 2025, Range Resources Corporation has a market capitalization of $8.21 billion.
• Revenue and Earnings: The revenue for the last quarter was $626.42 million, with earnings per share of $0.68.

For further insights into Range Resources Corporation, explore the Exploring Range Resources Corporation (RRC) Investor Profile: Who’s Buying and Why?

Range Resources Corporation (RRC) Risk Factors

Range Resources Corporation (RRC) faces a variety of internal and external risks that can significantly impact its financial health. These risks span industry competition, regulatory changes, and volatile market conditions, all of which demand careful monitoring and strategic mitigation.

Here's a breakdown of key risk areas:

• Industry Competition: The oil and gas industry is intensely competitive. Numerous companies, including major integrated firms and smaller independent producers, vie for market share. This competition can pressure prices and reduce profitability for Range Resources.
• Regulatory Changes: The company is subject to extensive federal, state, and local regulations concerning environmental protection, health, and safety. Changes in these regulations, such as those affecting hydraulic fracturing, can increase compliance costs and limit operational flexibility.
• Market Conditions: Fluctuations in natural gas and oil prices significantly affect Range Resources' revenue and profitability. These prices are influenced by global supply and demand, economic conditions, and geopolitical events, all of which are difficult to predict.

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Operational Risks: These include drilling and production risks, such as well failures, equipment malfunctions, and geological uncertainties. Such issues can lead to increased costs and reduced production volumes.
• Financial Risks: Range Resources faces risks related to its debt levels, liquidity, and access to capital markets. Maintaining financial flexibility is crucial to funding operations and managing debt obligations, especially during periods of low commodity prices.
• Strategic Risks: The company's strategic decisions, such as acquisitions, divestitures, and capital allocation, carry inherent risks. Poorly executed strategies can negatively impact financial performance and shareholder value.

Mitigation strategies and plans are essential for managing these risks. Range Resources employs various approaches:

• Hedging Programs: The company uses hedging instruments to reduce its exposure to price volatility. By locking in future prices, Range Resources can stabilize revenue and protect against downside risk.
• Cost Management: Range Resources focuses on improving operational efficiency and reducing costs. This includes streamlining processes, leveraging technology, and negotiating favorable terms with suppliers.
• Diversification: While primarily focused on natural gas, Range Resources may explore opportunities to diversify its asset base or product mix to reduce its reliance on a single commodity or region.

Effective risk management is critical for Range Resources to navigate the challenges of the energy industry and sustain long-term financial health. Investors should closely monitor how the company identifies, assesses, and mitigates these risks.

For more insights into Range Resources and its investors, check out: Exploring Range Resources Corporation (RRC) Investor Profile: Who’s Buying and Why?

Range Resources Corporation (RRC) Growth Opportunities

Range Resources Corporation (RRC) is strategically positioned for future growth, leveraging its operational strengths, market access, and commitment to sustainability. The company's key growth drivers, financial strategies, and competitive advantages provide a solid foundation for sustained performance.

Key growth drivers for Range Resources Corporation (RRC) include:

• Strong Operational Efficiency and Capital Discipline: RRC focuses on low-cost projects within its large inventory of low-risk drilling opportunities. The company's efficient drilling and completion techniques enable it to maintain a competitive advantage, particularly beneficial when natural gas prices fluctuate.
• Access to Premium NGL Export Markets: RRC's strategic access to premium Natural Gas Liquids (NGL) export markets provides a significant competitive advantage. In fiscal year 2024, the company realized a 19% premium over Mt. Belvieu benchmark prices for its NGL production, highlighting the value of its market positioning.
• Best-in-Class Inventory Duration: With over 25 years of inventory, RRC has a stable foundation for sustained production and growth, even under lower gas price scenarios. A substantial portion of this inventory can generate returns, enhancing the company's resilience to price fluctuations.
• Strategic Hedging: Range Resources Corporation (RRC) utilizes hedging strategies to mitigate the impact of volatile commodity prices, ensuring consistent financial performance despite market fluctuations.

Future revenue growth projections and earnings estimates for Range Resources Corporation (RRC) are positive. The U.S. Energy Information Administration projects 2025 Henry Hub spot natural gas at $4.19 per million British thermal units (MMBtu), significantly higher than $2.19 per MMBtu in the last year, benefiting RRC as an upstream energy player. Analysts anticipate that NGL pricing and the fourth-quarter turn-in-line (TIL) cadence will contribute to an upside for the company's 2025 estimates.

Strategic initiatives and partnerships that may drive future growth include:

• Production Growth: Range Resources Corporation (RRC) aims to increase production to approximately 2.2 Bcfe per day in 2025. The company plans to run two drilling rigs and one frac crew, building additional in-process well inventory for increased growth capacity in 2026 and 2027.
• Emissions Reduction: Approximately $20 - $30 million is planned for pneumatic devices and production facility upgrades, part of a $50 - $60 million project expected to be completed by year-end 2026 to further reduce emissions.
• Infrastructure Expansion: Supporting its planned production, Range Resources Corporation (RRC) has secured incremental transportation, processing, and export capacity, including 300 Mmcf per day of processing capacity at the Harmon Creek facility, expected to start in 2026.
• Power Generation Facility: In April 2025, Range Resources Corporation (RRC) partnered with Liberty Energy and Imperial Land Corporation to develop a power generation facility in Pennsylvania.

Range Resources Corporation (RRC) possesses several competitive advantages that position the company for growth:

• Low-Cost Production: Efficient drilling and completion techniques allow Range Resources Corporation (RRC) to maintain a competitive advantage by producing at lower costs.
• Premium Export Markets: Access to premium export markets for NGLs allows Range Resources Corporation (RRC) to realize higher revenues and improved profit margins. The company expects to realize a 19% premium over Mt. Belvieu benchmark prices for its NGL production in fiscal year 2024.
• Extensive Inventory: A best-in-class inventory duration of over 25 years provides a solid foundation for sustained long-term growth.
• Commitment to Sustainability: Range Resources Corporation (RRC) is on track to meet its Net Zero Scope 1 and 2 GHG Emissions 2025 goals through direct emissions reductions and verified carbon offsets. The company has exceeded its initial goal of reducing GHG emissions intensity by 15% relative to 2019 levels.

For more insights into Range Resources Corporation's financial standing, refer to: Breaking Down Range Resources Corporation (RRC) Financial Health: Key Insights for Investors