What Caused Range Resources’ Revenue Growth in 4Q17



Range Resources’ 4Q17 revenue

In 4Q17, Range Resources (RRC) reported revenue of ~$600 million, lower than Wall Street analysts’ estimate of ~$626 million. RRC’s revenue rose ~24% from its 3Q17 revenue of ~$482 million and ~2% from its 4Q16 revenue of ~$590 million.

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Reasons behind Range Resources’ higher revenue in 4Q17

Range Resources’ higher revenue could be attributed to its natural gas, NGL (natural gas liquid), and crude oil sales rising steeply, by ~31% to ~$603 million in 4Q17 from ~$459 million in 4Q16. Although its realized prices for natural gas (UNG), NGL, and crude oil were lower, Range Resources’ 4Q17 production was significantly higher, boosting its revenue.

Between 4Q16 and 4Q17, RRC’s natural gas (UNG) (UGAZ) (DGAZ) realized price fell ~8% to $1.77 per Mcf (thousand cubic feet) from $1.93 per Mcf, and its NGL realized price fell ~14% to $9.65 per barrel from $11.20 per barrel. We’ll discuss RRC’s production in the next part.

Range Resources’ 2017 revenue

In fiscal 2017, Range Resources’ revenue rose ~29% to ~$2.2 billion from ~$1.7 billion in 2016. Peer Southwestern Energy (SWN) is expected to report revenue of ~$3.3 billion in 2017, ~30% higher than its 2016 revenue of ~$2.4 billion.


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