Range Resources Corporation (NYSE: RRC) has reported its fourth quarter 2023 financial results and outlined its plans for 2024. The company's full-year 2023 highlights include cash flow from operating activities of $978 million, net production averaging 2,139 million cubic feet equivalent per day, and proved reserves of 18.1 trillion cubic feet equivalent with positive performance revisions. Range also reduced net debt by $292 million and increased hedge positions for 2024 and 2025.
Dennis Degner, the CEO of Range Resources Corporation, commented on the 2023 results and 2024 plans, saying, "Range had a successful year – operating safely and efficiently, while generating free cash flow despite lower natural gas prices. With the strongest balance sheet in company history, consistent operational performance, and a low capital reinvestment rate, we are targeting resilient free cash flow in 2024 and beyond."
For 2024, Range plans to target holding production flat for the year at approximately 2.12 – 2.16 billion cubic feet equivalent per day. The company's 2024 all-in capital budget is expected to be $620 to $670 million, focusing on maintenance capital, drilling and completion, targeted acreage, and water infrastructure/other investments.
In terms of financial performance, Range reduced net debt by $292 million in 2023, representing the company’s sixth consecutive year of debt reduction. The company's leverage ratio, defined as net-debt-to-ebitdax, was approximately 1.3x on a trailing twelve-month basis. Range also realized a total of $8.0 million in contingent derivative settlement gains related to an asset divestiture completed in 2020 during the fourth quarter of 2023.
In the fourth quarter of 2023, Range reported revenues totaling $941 million, with net cash provided from operating activities at $226 million and net income at $310 million ($1.27 per diluted share). Adjusted net income comparable to analysts’ estimates was $153 million ($0.63 per diluted share) in the same period.
Furthermore, Range's fourth quarter 2023 natural gas, natural gas liquids, and oil price realizations averaged $3.25 per thousand cubic feet equivalent, with the average natural gas price including the impact of basis hedging at $2.40 per thousand cubic feet.
As of the latest update, Range Resources Corporation's shares are trading at $31.77, reflecting a -3.4% change.
The company's full 8-K submission is available here.
