Range Resources Q2 Profit Up 19%, But Results Miss View

(RTTNews) - Oil and gas company Range Resources Corp. (RRC) on Monday reported a 19 percent increase in profit for the second quarter from last year, reflecting higher production and a one-time gain.

However, both revenue and adjusted earnings per share for the quarter missed analysts' expectations. Looking ahead, the company forecast 2014 production at the high end of its guidance range.

Range Resources' net income for the second quarter was $171.39 million or $1.04 per share, up from $143.98 million or $0.88 per share in the year-ago period. The latest quarter's results include, among other items, a gain of $280 million pre-tax on a Permian asset exchange.

Excluding items, adjusted net income for the quarter was $59.42 million or $0.36 per share, compared to $55.19 million or $0.34 per share in the prior-year period. On average, thirty five analysts polled by Thomson Reuters expected the company to earn $0.40 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew 14 percent to $765.52 million from $673.36 million in the prior-year period. Natural gas, NGLs and oil sales for the quarter rose 9 percent to $477.52 million from $437.68 million in the same period last year. Analysts had a consensus revenue estimate of $482.61 million for the quarter.

Production volumes for the quarter increased 21 percent from the year-ago period and averaged 1,105 Mmcfe per day. The company noted that the increase in production volumes was despite being negatively impacted by three events, two of which were unplanned.

Year-over-year oil and condensate production increased 14 percent, while NGL production rose 111 percent and natural gas production rose 4 percent.

Meanwhile, natural gas, NGLs and oil price realizations in the quarter averaged $4.49 per mcfe, down 11 percent from $5.02 per mcfe in the year-ago period.

Looking ahead, Range Resources projects average daily production for the third quarter of about 1.20 Bcfe per day, with 30 percent liquids. The company estimates fourth-quarter production of about 1.35 Bcfe per day, with 30 percent liquids.

For 2014, Range Resources forecasts production growth of 25 percent year-over-year, at the high end of its previous guidance for growth of 20 percent to 25 percent.

RRC closed Monday's trading at $76.27, down $0.44 or 0.57 percent on a volume of 2.69 million shares. However, in after-hours, the stock gained $1.13 or 1.48 percent to $77.40.