How Range Resources Did in 1Q18

Range Resources’ 1Q18 adjusted net income

Range Resources (RRC) announced its 1Q18 earnings on April 25, after the market closed. RRC reported a better-than-expected profit of ~$113 million, beating analysts’ estimate of ~$104 million. Its profit rose ~85% YoY (year-over-year) from ~$61 million and ~105% quarter-over-quarter from ~$55 million.

How Range Resources Did in 1Q18

Range Resources’ 1Q18 net income

Range Resources’ adjusted net income excluded the one-time benefits and charges of -$64 million mostly related to fair value changes and non-cash stock-based compensations. With these one-time items, RRC’s GAAP (generally accepted accounting principles) net income was ~$49 million, or $0.20 per share, in 1Q18. RRC’s reported net income was $170 million, or $0.69 per share, in 1Q17.

RRC’s net income fell between 1Q17 and 1Q18 due to lower revenue and higher expenses. RRC’s reported revenue fell ~4% YoY in 1Q18, and its expenses rose ~32%, impacting its bottom line. RRC’s reported revenue included losses on fair value changes. In the next part, we’ll look at RRC’s adjusted revenue.

Peer ConocoPhillips (COP) reported a profit of ~$1.1 billion in 1Q18, beating analysts’ estimate of ~$829 million and switching from a loss YoY. In the next part, we’ll look at RRC’s revenue.