- Range Resources (NYSE:RRC) +0.2% AH after Q1 earnings and revenues beat expectations, as the company exceeded production guidance with lower cost and improved capital efficiency in the Marcellus Shale.
- RRC says the oversupply of natural gas and NGLs in Appalachia have "created a challenging price environment, but we see signs of improvement coming, and until then, our hedges help to improve financial results."
- Q1 production averaged 1.33B cfe/day vs. the company’s projection of 1.3B and projects average production for the current quarter of 1.35B cfe/day; also affirms its 20% Y/Y production growth target for the year.
- Sales of natural gas, natural gas liquids and oil fell 43% Y/Y to $325M, but RRC recorded a $123M derivative gain vs. a $147M loss in the year-ago period.
- Natural gas, natural gas liquids and oil-price realizations, including the impact of cash-settled hedges and derivative settlements, averaged $3.54 per thousand cfe, down 28% Y/Y.
- RRC also says a Marcellus shale well logged an initial production rate of 43.4M cfe/day in early April, enough to set a record for the play.