Range Resources Corp Earnings Cheat Sheet: Swing to a Profit, Beating Estimates

S&P 500 (NYSE:SPY) component Range Resources Corporation (NYSE:RRC) reported its results for the third quarter. Range Resources is an independent natural gas company that primarily explores and develops gas properties in the Southwestern and Appalachian regions of the United States.

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Range Resources Earnings Cheat Sheet for the Third Quarter

Results: Reported a profit of $34.8 million (22 cents per diluted share) in the quarter. The independent oil and gas company had a net loss of $8.2 million or a loss of 5 cents per share in the year earlier quarter.

Revenue: Rose 73% to $338.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: RRC reported adjusted net income of 28 cents per share. By that measure, the company beat the mean estimate of 24 cents per share. It beat the average revenue estimate of $270.6 million.

Quoting Management: Commenting on the announcement, John Pinkerton, Range’s Chairman and CEO, said, “Third quarter results reflect terrific operating performance driving excellent financial performance. Higher production and higher realized prices combined with significantly lower unit costs drove a 35% increase in cash flow and more than doubled the analysts’ earnings compared to the third quarter of last year. Due to our outstanding drilling results and the progress of the infrastructure build-out, we have increased our full year 2011 production growth target by 10%. Looking to the fourth quarter, we anticipate total production to jump 70 Mmcfe per day over the third quarter and for our Marcellus production to reach our exit rate goal of 400 Mmcfe per day net. Given the momentum of the higher production coupled with the cost reductions, we anticipate fourth quarter results to exceed those of the third quarter. In turn, these results should give our shareholders a good indication of how accelerating production growth and continued reduction in unit costs will positively impact our ongoing results. We believe these are the key elements that will drive our results for 2012 and beyond.”

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 15 cents in the second quarter and by 17 cents in the first quarter.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the fourth quarter is 30 cents per share, dropping from 54 cents a month ago. In the past month, the average estimate for the fiscal year has fallen from 83 cents per share to 76 cents abs.

Competitors to Watch: Vanguard Natural Resources, LLC (NYSE:VNR), EV Energy Partners, L.P. (NASDAQ:EVEP), NGAS Resources, Inc. (NASDAQ:NGAS), Atlas Energy, Inc. (NASDAQ:ATLS), New Concept Energy, Inc. (AMEX:GBR), Rex Energy Corporation (NASDAQ:REXX), BreitBurn Energy Partners L.P. (NASDAQ:BBEP), EQT Corporation (NYSE:EQT), Chesapeake Energy Corp. (NYSE:CHK), and Anadarko Petroleum Corp. (NYSE:APC).

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(Source: Xignite Financials)