RANGE RESOURCES CORPORATION (NYSE: RRC)
today announced its second quarter 2012 results. Revenues for the second quarter 2012 totaled $442 million, a 32% increase over the prior year quarter. Net cash provided from operating activities including changes in working capital totaled $127 million, declining 25% from the prior year quarter. Reported net income for the second quarter 2012 totaled $55.7 million ($0.34 per diluted share), a 6% increase over the second quarter 2011. Revenue and cash flow results were driven by higher production volumes and lower unit costs offset by lower realized prices. Revenue and earnings also included the impact of a derivative mark-to-market gain of $136 million.
Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $18.1 million ($0.11 per diluted share) compared to $43.2 million ($0.27 per diluted share) in the prior year quarter. Cash flow from operations before changes in working capital, a non-GAAP measure, decreased 7% year-over-year to $156 million. Comparing these amounts to analysts’ average First Call consensus estimates, the Company’s earnings per share ($0.11 per diluted share) were six cents higher than the consensus of analysts’ estimates of $0.05 per diluted share. Cash flow per share ($0.97 per diluted share) for the quarter was two cents higher than the consensus analysts’ estimates of $0.95 per diluted share. See “Non-GAAP Financial Measures” for a definition of each of these non-GAAP financial measures and tables that reconcile each of these non-GAAP measures to their most directly comparable GAAP financial measure.
Commenting on the announcement, Jeff Ventura, Range’s President and CEO, said, “Our second quarter results reflect excellent performance. The benefits of our Barnett sale last year have positively impacted our second quarter operating and financial results. The sale allowed us to fast-forward the development of our core plays, improve our capital efficiency, lower our cost structure, and strengthen our financial position. The 42% increase in production coupled with a 16% decrease in aggregate cash unit costs are a vivid reflection of our performance combined with the sale benefits. While low natural gas prices impacted our financial results, our strong hedge position provided substantial protection. Looking ahead, we have approximately 80% of expected production hedged for the remainder of the year.