uploads///RRC Q Post Cash Flow

Range Resources’ Free Cash Flow in 4Q17



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.

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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.


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