Upstream energy player Range Resources CorporationRRC reported third-quarter 2017 adjusted earnings of 5 cents per share that surpassed the Zacks Consensus Estimate of 2 cents. The company had incurred a loss of 6 cents in the year-ago quarter.
Total revenue of $482.2 million failed to beat the Zacks Consensus Estimate of $530 million but jumped 17% year over year from $413.2 million.
The third-quarter numbers were supported by an increase in oil and gas equivalent production and price realizations, partially offset by higher expenses.
The company's third-quarter production averaged almost 1,986.2 million cubic feet equivalent per day (MMcfe/d). Natural gas made up for 66.6% of the total production, while natural gas liquids (NGLs) and oil accounted for the remaining 33.4%.
Total production volume not only improved 32% from the year-earlier quarter but also beat the Zacks Consensus Estimate of production of 1,983 MMcfe/d. The improvement was aided by the company's highly successful drilling program.
On a year-over-year basis, oil production increased 59%, while NGL production rose 32%. Moreover, natural gas production jumped 30% year over year.
The company's total price realization (including the effects of hedges and derivative settlements) averaged $1.82 per Mcfe, up 15% year over year. Of this, NGL prices rose 29% to $8.54 per barrel while crude oil prices fell 3% to $48.46 per barrel, both on a year-over-year basis. Natural gas prices were up 12% year over year to $1.60 per Mcf.
Total third-quarter 2017 expenses were $681.9 million, up 45% year over year.
At the end of the quarter, the company had long-term debt of approximately $3,981.9 million with a debt-to-capitalization ratio of 41.8%. The company incurred expenditures of $305 million in the third quarter for drilling and completion of 35 wells.
Q3 Price Performance
During the July-September quarter of 2017, Range Resources lost 15.5%, underperforming the industry's 5.1% gain.
For the fourth quarter of 2017, the company maintained the estimate of 2.2 billion cubic feet equivalent (Bcfe) per day. With this, the annual output will likely rise 30%.
Range Resources also reiterated the 2017 capital budget at $1.15 billion.
Zacks Rank & Key Picks
Currently, Range Resources carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector are Par Pacific Holdings Inc. PARR , Northern Oil and Gas, Inc. NOG and Canadian Natural Resources Limited CNQ . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Headquartered in Houston, TX, Par Pacific managed to beat the Zacks Consensus Estimate in three of the last four quarters, the average earnings surprise being 195.26%.
Based in based in Minnetonka, MN, Northern Oil and Gas is an upstream energy player. The company's 2017 revenues are estimated to grow 44.1%.
Canadian Natural, headquartered in Calgary, Canada, is primarily an upstream energy firm. The firm will likely witness year-over-year earnings growth of 234.8% for 2017.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.