Range Resources 1Q Profit Soars, Beats Estimates

FORT WORTH, Texas (AP) — Independent oil and gas company Range Resources Corp. said its first-quarter net income soared and its adjusted earnings beat Wall Street expectations, driven by hedging gains, rising production and costs savings, which offset the impact of falling commodity prices.

After the market closed on Tuesday, the company reported earnings of $32.6 million, or 21 cents per share, compared with $1.7 million, or 1 cent per share, during the same period last year. Production climbed 12 percent over the prior-year quarter to an average of 415.8 million cubic feet equivalent (mmcfe).

Excluding certain non-cash items, income would have been $38.4 million, or 24 cents per share, compared with $96.4 million, or 63 cents per share, in the first quarter of 2008. Range Resources said the latest quarter includes a $31.1 million mark-to-market gain on unrealized derivatives, a $12.4 million expense recorded for the mark-to-market in the deferred compensation plan and $8.3 million of stock compensation expense.

Profit estimates by analysts came to an average of 21 cents per share, according to a survey by Thomson Reuters. Analysts typically exclude nonrecurring items.