Range Profit Falls as Gas Pricing Weakens
Production averaged 2.296 Bcfe a day, rising 5% from a year earlier.
Range Resources (RRC), the natural-gas producer, reported an 18% decline in second-quarter net income as weaker gas pricing outweighed higher production and stronger liquids realizations. GAAP net income fell to $195 million, or $0.83 a diluted share, from $237.6 million a year earlier.
The quarter marked a reversal from the winter-driven pricing strength of the first quarter. Revenue and other income fell to $834 million from $1.03 billion sequentially and $856 million a year earlier, while the realized commodity price after hedges dropped 27% from the first quarter to $3.53 per mcfe.
Adjusted net income was $186 million, or $0.79 a diluted share, down from $360 million, or $1.52 a share, in the prior quarter but up 18% from $157.8 million, or $0.66 a share, a year earlier. Operating cash flow declined to $235 million from $619 million sequentially and $336 million in the year-earlier period.
Natural-gas production rose 3% from a year earlier, but the price before derivative settlements fell 17% to $2.41 per mcf. The basis-adjusted differential swung sequentially to a $0.47 discount to NYMEX from an $0.18 premium, deepening the effect of lower benchmark prices.
Liquids helped offset some of that pressure. NGL production increased 7% from a year earlier, while pre-hedge NGL realizations climbed to $29.10 a barrel from $23.73. Oil and condensate realizations rose 59% to $83.96 a barrel.
Range reduced total cash unit costs to $1.92 per mcfe from $2.07 in the first quarter and $1.97 a year earlier. Capital spending increased to $222 million as development accelerated, and the company reported record operating efficiencies that included 1,900 completion stages by two crews.
The company maintains its 2026 production forecast of 2.35 to 2.40 Bcfe a day and its $650 million-to-$700 million capital budget. It narrowed its expected gas differential to a $0.35-to-$0.40 discount to NYMEX and raised the lower end of its expected NGL premium to $2.00 a barrel.
Range repurchased $78 million of shares during the quarter, up from $27 million in the first quarter, while net debt fell 28% from year-end to about $881 million. With $1.4 billion remaining under its authorization, the accelerated buybacks paired stronger production with a balance sheet carrying less debt into the second half.