Range Resources: Mizuho Raises PT to $48, Maintains Outperform Rating

Range Resources: Mizuho Raises PT to $48, Maintains Outperform Rating

FORT WORTH, TX - Range Resources Corporation (NYSE: RRC) has seen its stock price rise by 2% following the natural gas producer's second quarter earnings report, which exceeded analyst expectations. The company reported adjusted earnings of $0.66 per share, comfortably beating the analyst consensus of $0.64. Revenue reached $856.28 million, significantly higher than the $722.74 million analysts had expected. Cash flow from operating activities was $336 million for the quarter. Range’s production averaged 2.20 Bcfe per day during the quarter, approximately 68% natural gas. The company’s realized price, including hedges, was $3.49 per mcfe. Natural gas differential, including basis hedging, was -$0.50 per mcf to NYMEX, while pre-hedge NGL realizations were $23.73 per barrel, a premium of $0.61 over Mont Belvieu equivalent [1].

CEO Dennis Degner stated that the year is off to a great start with another quarter of efficiency gains and consistent well performance driving strong free cash flow and building operational momentum. "Our strong financial results supported $74 million in share repurchases and dividends, while lowering net debt to $1.2 billion," Degner said. During the quarter, Range repurchased $53 million of shares and paid $21 million in dividends. The company reduced its net debt to $1.2 billion, consisting of $1.1 billion in senior notes, $125 million on its credit facility, and $0.1 million in cash [1].

Range Resources also improved its 2025 production guidance to approximately 2.225 Bcfe per day, up from prior guidance of ~2.2 Bcfe per day. The company lowered the high end of its capital expenditure guidance to $680 million from $690 million, citing operational efficiencies [1].

In response to the strong earnings report, Mizuho Financial Group has raised its price target for Range Resources to $48, maintaining its Outperform rating. The analyst cited the company's operational efficiency, strong financial performance, and the potential for growth in the natural gas sector as key factors driving the price target increase [2].

References:
[1] https://seekingalpha.com/news/4470870-range-resources-outlines-20-percent-production-growth-through-2027-amid-operational
[2] https://www.investing.com/news/earnings/range-resources-up-2-on-q2-beat-and-improved-production-guidance-93CH-4146979