Range Resources’ 4Q17 operating cash flow
In 4Q17, Range Resources (RRC) reported operating cash flow of ~$216 million, missing Wall Street analysts’ expectation of ~$251 million but surpassing the ~$185 million it generated in 4Q16. Between 3Q17 and 4Q17, RRC’s 4Q17 operating cash flow rose ~14% from ~$189 million. Range Resources’ year-over-year increase in operating cash flow could be attributed to its higher production, which we discussed in Part 3.
Range Resources’ free cash flow in 4Q17
In 4Q17, Range Resources had ~$390 million in capital expenditure and free cash flow of approximately -$174 million. Peer Encana (ECA) reported free cash flow of approximately -$140 million in 4Q17, with operating cash flow of ~$369 million and ~$509 million in capital expenditure.
Range Resources’ cash flow in 2017
Between fiscal 2016 and 2017, Range Resources’ operating cash flow rose ~110% to ~$816 million from ~$387 million. In 2017, Range Resources had ~$1.2 billion in capital expenditure and free cash flow of approximately -$396 million.
Range Resources’ capital expenditure guidance
In 2018, Range Resources expects capital expenditure of $941 million. RRC plans to allocate ~85% of its capital budget to the Appalachia division and the remaining ~15% to the North Louisiana division. RRC plans to use its free cash flow and any asset sales to reduce its debt.