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Range Resources Beats Estimates

The energy company posted increased earnings and revenue in the first quarter.

Once these most recent quarterly results are finalized, they will be run through Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit Ratings Screener.

Range Resources


reported on April 28, 2009 that its Q1 FY09 earnings increased to $32.61 million or $0.21 per share from $1.74 million or $0.01 per share, boosted by cash settled derivative gains and a mark-to-market gain on unrealized derivatives. However, non-GAAP net income plunged 60.1% to $38.43 million or $0.24 per share, which beat the most recent consensus estimate of $0.21 per share.

Total revenue rose 34.6% to $276.44 million from $205.34 million as higher production volumes were partially offset by lower average realized prices. Total oil and gas sales declined 33.9% to $203.19 million from $307.38 million. Oil and gas sales, including cash-settled derivatives dropped 23.1% to $247.66 million from $322.09 million. Average production grew 12.2% to 415.82 million cubic feet equivalent from 370.61 MMcfe. Average realized prices, including cash hedges and derivatives, decreased 30.7% to $6.62 per thousand cubic feet (Mcfe) from $9.25 per Mcfe. Direct operating costs fell 3.1% to $0.93 per Mcfe from $0.96 per Mcfe.

Total expenses swelled 14.7% to $225.00 million from $196.12 million as direct operating expenses surged 7.5% to $34.81 million, general and administrative expenses increased 46.0% to $18.69 million, and depletion, depreciation, and amortization increased 20.2% to $84.32 million. Abandonment and impairment of unproved properties soared to $19.57 million from $1.44 million.

Range Resources paid a quarterly cash dividend of $0.04 per common share.

The company anticipates a net Marcellus production rate of 80.00 to 100.00 MMcfe per day by the end of FY09 and expects to double that target in FY10.