Range Resources lowers full year capex, production guidance

Range Resources Corp. lowered its full-year 2021 capital and production guidance to $415 million from $425 million, and to 2.12-2.13 bcfed from 2.15 bcfed, respectively.

Annual spending is expected to come in lower as a result of continued efficiency gains realized year-to-date, and adjustments to 2021 production guidance are a result of temporary gathering and transportation outages and delays alongside weather-related force majeure events, the company said as part of its third-quarter results released Oct. 27.

Production for the third quarter was 2.14 bcfed (about 30% liquids), representing a 1.5% increase over the second quarter. Range expects a similar production increase in the fourth quarter and to exit the year near 2.2 bcfed.

GAAP revenues for third-quarter 2021 totaled $303 million, GAAP net cash provided from operating activities (including changes in working capital) was $192 million, and GAAP net earnings was a loss of $350 million. Third quarter earnings results include a $652 million derivative fair value loss due to increases in commodity prices.

Non-GAAP revenues for third quarter 2021 totaled $795 million, and cash flow from operations before changes in working capital, a non-GAAP measure, was $276 million.  Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $130 million in the quarter.

All-in third quarter capital spending was $96 million, about 23% of the annual budget. Third-quarter 2021 drilling and completion expenditures were $91.8 million. During the quarter, $4.6 million was invested on acreage leasehold, gathering systems, and other corporate items.

Total capital expenditures year-to-date were $322 million at the end of the quarter.

As of Sept. 30, Range had total debt outstanding of $2.98 billion, consisting of $30 million in bank debt and $2.95 billion in senior notes. The company has about $750 million in senior notes that mature through 2023, which are expected to be retired with projected free cash flow at current strip pricing. Range had over $2.0 billion of borrowing capacity under the bank credit facility commitment amount at the end of the quarter.