Q3 2024 Range Resources Corp Earnings Call Transcript
Key Points
- Range Resources Corp (RRC) achieved the highest NGL premium in company history, over $4 per barrel above the Mont Belvieu index, showcasing strong performance in international markets.
- The company generated positive free cash flow despite challenging natural gas prices, demonstrating resilience and efficient operations.
- RRC's low capital intensity and efficient operations allow it to maintain production levels with minimal resources, such as holding 2.2 Bcfe per day of net production with just one completion crew.
- The company has a strong balance sheet, having reduced net debt by $136 million and maintaining net debt within the target range of $1 billion to $1.5 billion.
- RRC's diversified production stream, with roughly 30% liquids, has accounted for more than 50% of pre-hedge revenue in five of the last six quarters, providing a stable revenue base.
- Despite positive cash flow, the company is operating in a low commodity price environment, with NYMEX natural gas averaging $2.09 for the first three quarters of 2024.
- RRC's capital expenditure guidance was adjusted upwards, indicating higher-than-expected spending, particularly in land acquisition.
- The company faces potential challenges with takeaway capacity and in-basin demand, which could impact future production growth.
- There is uncertainty around future capital and production plans for 2025, with the company still finalizing its strategy.
- RRC's ability to maintain its current production levels and efficiencies is partly dependent on external factors such as weather patterns and LNG infrastructure commissioning, which are beyond its control.
Hello. Welcome to the Range Resources third-quarter 2024 earnings conference call. Statements made during this conference call that are not historical facts are forward-looking statements. Such statements are subject to risks and uncertainties, which could cause actual results to differ materially from those in the forward-looking statements. (Operator Instructions)
(technical difficulty) Vice President, Investor Relations at Range Resources. Please go ahead, sir.
Thank you, operator. Good morning, everyone, and thank you for joining Range's third-quarter 2024 earnings call. Speakers on today's call are Dennis Degner, Chief Executive Officer; and Mark Scucchi, Chief Financial Officer. Hopefully, you've had a chance to review the press release and updated investor presentation that we've posted on our website. We may reference certain slides on the call this morning.
You will also find our 10-Q on Range's website under the Investors tab, or you can access it using the SEC's
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