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Investing.com - Benchmark has reiterated its Hold rating on Range Resources (NYSE:RRC), reflecting the broader market sentiment. According to InvestingPro data, the stock currently trades at $35.06, with analyst price targets ranging from $27 to $50, while 13 analysts have recently revised their earnings expectations downward.
Range Resources reported adjusted EBITDA of $321 million, which fell short of the consensus estimate of $337 million but exceeded Benchmark’s projection of $310 million. The variance against Benchmark’s estimate was primarily attributed to lower lease operating expenses (LOE). The company’s trailing twelve-month EBITDA stands at $778.56 million, with InvestingPro data showing a concerning current ratio of 0.56, indicating potential short-term liquidity challenges.
The natural gas producer’s drilling and completion capital expenditure came in at $136 million, which was $20 million below Benchmark’s forecast, while production volumes exceeded expectations by 1%. Range Resources reduced its midpoint of annual all-in capital expenditure guidance by $5 million to $665 million, and lowered its maintenance capital expenditure guidance by $10 million to $520 million.
The company repurchased $53 million of its shares at an average price of $36.35 per share during the quarter, compared to $68 million at $36.97 per share in the first quarter. Debt levels decreased following the retirement of 2025 maturities, which was funded through free cash flow, cash on hand, and the company’s credit facility.
Range Resources plans to increase production over the next several years while simultaneously reducing its reinvestment rate, according to Benchmark’s research note. For deeper insights into Range Resources’ financial health and growth prospects, including additional ProTips and comprehensive analysis, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Range Resources Corporation reported second-quarter earnings that exceeded analyst expectations. The company posted adjusted earnings of $0.66 per share, surpassing the consensus estimate of $0.64. Revenue for the quarter was $856.28 million, significantly higher than the expected $722.74 million. Range Resources also reported cash flow from operating activities of $336 million and raised its production outlook while lowering capital expenditure guidance for the year. Following these results, Mizuho (NYSE:MFG) raised its price target for the company to $48.00 from $46.00, maintaining an Outperform rating. The price target increase was influenced by the company’s stronger-than-expected free cash flow, which was approximately 44% above Street estimates. This improvement was primarily attributed to a 13% reduction in capital expenditure spending. These developments reflect the company’s enhanced efficiency and strategic adjustments.
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