Range Resources Earnings: Here’s Why Shares are Up Now

Range Resources Corporation (NYSE:RRC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.26%.

Range Resources Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 209.09% to $0.34 in the quarter versus EPS of $0.11 in the year-earlier quarter.

Revenue: Decreased 1.07% to $437.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Range Resources Corporation reported adjusted EPS income of $0.34 per share. By that measure, the company beat the mean analyst estimate of $0.32. It beat the average revenue estimate of $416.72 million.

Quoting Management: Jeff Ventura, Range’s President and CEO, said, “Range had an impressive first half of 2013, continuing to set record production results while decreasing our unit costs. Our balance sheet and liquidity are set for continued growth as outlined in our business plan of growing production 20% to 25% for many years. Importantly, cash flow growth is expected to outpace our production growth percentage. With the progress made during the first half of 2013, we are focused on the higher end of our production growth range for 2013. The first deliveries of ethane into Mariner West to Sarnia, Canada commenced start up operations on July 21st. Range has access to the only operating de-ethanizer in Appalachia while others are still under construction. This will allow us to continue our planned growth without concern for pipeline quality requirements. Additional ethane and propane transportation projects are scheduled to become operational next year conforming to our growth plans. Our growth is led by our approximate one million acre leasehold position in Pennsylvania which essentially doubles when stacked pay reservoirs across most of our acreage in the Basin are considered. This acreage position is anchored by the Marcellus, one of the most prolific reservoirs in the U.S. We believe that our 20% to 25% production growth that we expect to deliver for many years, coupled with the high returns, low cost and low reinvestment risk will drive substantial per share value for our shareholders for years to come.”

Key Stats (on next page)…

Revenue increased 37.11% from $319.24 million in the previous quarter. EPS increased 3.03% from $0.33 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.39 to a profit $0.38. For the current year, the average estimate has moved down from a profit of $1.50 to a profit of $1.48 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)