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    RRC
    Earnings call· Mar 2026(Q1 FY26)

    RANGE RESOURCES Q1 FY26 earnings call RRC

    Apr 22, 2026 Source

    Executive summary

    Range Resources Q1 FY26 — Strong FCF and Record NGL Premium Drive Balance Sheet Strength

    Range Resources delivered a strong Q1 FY26, marked by robust free cash flow generation and record NGL premiums, significantly strengthening its balance sheet. The company is on track with its multi-year production growth plan, leveraging operational efficiencies and strategic marketing to capture value from increasing global energy demand. Management emphasizes a disciplined capital allocation strategy focused on durable free cash flow per share.

    Highlights

    5

    • Free cash flow of approximately $400 million, driven by strong realized pricing.

    • Record NGL premium of $4.41 per barrel above Mont Belvieu index, the largest in company history.

    • Natural gas differential at $0.18 premium to Henry Hub, best in over a decade.

    • Net debt reduced to $834 million, or half a turn of leverage, achieving an investment-grade style balance sheet.

    • Operational efficiency: single rig drilled 143,000 lateral feet (annualized >0.5M ft); e-frac fleet completed 874 stages (annualized ~700k ft).

    Concerns

    3

    • Elevated steel market prices due to geopolitical events, though Range is mostly insulated by prepurchases.

    • Fuel pricing (diesel) expected to be elevated, but capital plans unchanged due to efficiencies.

    • NGL stock levels are elevated, roughly 70% above historical averages.

    Guidance & targets

    8
    CategoryTargetConfidence
    Production volume
    2.5 Bcf equivalent per day
    high materiality
    High
    Capital expenditure
    High point for capital
    medium materiality
    High
    Full year 2026 NGL differential
    Premium of $1.25 to $2.50 per barrel
    high materiality
    High
    Production volume beyond 2027
    2.6 Bcfe a day
    high materiality
    Medium
    Capital expenditure beyond 2027 (to hold production flat)
    $570 million to $600 million type range
    medium materiality
    Medium
    Cash taxes
    Single-digit type, low single-digit type cash flow or cash taxes
    low materiality
    High
    First full cash tax paying year
    2028
    low materiality
    High
    Share count
    Share counts to go down
    medium materiality
    High

    Operational metrics

    25
    Production volume
    2.2 Bcf equivalent per day
    Q1 FY26

    In line with multiyear plan.

    Capital expenditure
    $139 million
    Q1 FY26

    Expected to step up in Q2 and Q3.

    Net debt
    $834 million
    Q1 FY26

    Achieved an investment-grade style balance sheet.

    Dividend
    $24 million
    Q1 FY26

    Funded by free cash flow.

    Share repurchases
    $27 million
    Q1 FY26

    Funded by free cash flow, executed opportunistically.

    Realized natural gas price
    $5.18
    Q1 FY26

    Contributed to strong cash flow.

    Realized NGL price
    $26.62
    Q1 FY26

    Contributed to strong cash flow.

    Capital reinvestment rate
    less than 30%
    Q1 FY26

    Indicates high free cash flow generation.

    Margin per unit of production
    $2.77up 38% from same quarter last year
    Q1 FY26

    Reflects strategic right-way risk embedded in contracts and strong pricing.

    Lateral feet drilled
    143,000
    Q1 FY26

    Demonstrates peer-leading drilling efficiency.

    Stages completed
    874
    Q1 FY26

    Set a program record, contributing to capital efficiency.

    NGL export capacity (new)
    150,000
    last year

    Helped chip away at current stock levels.

    NGL export capacity (new)
    360,000
    recently

    Flex capacity now in service, with first vessels having left.

    NGL export capacity (new)
    300,000
    late 2026

    Additional capacity expected to come online.

    NGL demand (PDH)
    0.5 million
    next 24 months

    Additional demand from PDH type infrastructure.

    LNG exports
    20 Bcf per dayup 20% versus last year
    currently

    Supported by recent startup of Golden Pass LNG terminal.

    Ethane waterborne exports
    665,000up over 47% year-on-year
    Q1 FY26

    Supported by new export terminal capacity in H2 2025.

    Propane and butane exports
    up 5%
    year-on-year

    Expected to increase significantly with additional U.S. export capacity.

    DUC inventory reduction
    down by about 20%
    current

    Indicates DUC draw across the industry.

    Lateral feet to utilize from DUCs
    400,000
    next 18 to 24 months

    Planned utilization of existing DUC inventory.

    NGL stock levels
    roughly 70% above historical averages
    current

    Expected to re-equilibrate with growing exports and demand.

    Natural gas storage level (expected)
    3.8 to maybe 3.9 Tcf
    end of injection season

    Comparable to levels seen in the last couple of years.

    Natural gas days of supply (expected)
    37 days5 days below the 5-year average
    end of injection season

    Suggests potential for volatility.

    LNG export potential
    30 Bcf
    by 2028

    Potential growth in LNG exports.

    LNG export potential
    36 Bcf
    by 2030

    Potential growth in LNG exports.

    Industry KPIs

    5
    MetricValueDetails
    D c efficiency rig activity143,000 lateral feet drilled; 874 stages completedfeet; stages
    Realized price differential$0.18 premium (natural gas); $4.41 premium (NGL)USD
    FCF shareholder distributions$400 million (FCF); $51 million (dividend + buyback)USD
    Take or pay contract structureroughly 80%%
    Weather event volume earnings impactmaintained strong field run time; record free cash flow

    Orderbook & backlog

    1
    Share repurchase authorization$1.5 billionQ1 FY26

    refreshed

    Represents remaining authorization for share repurchases.

    Deals & partnerships

    1
    Midwest transportSupply of natural gas for power generation75 million a day

    Supply of 75 million cubic feet per day of natural gas for a power link type structure into the Midwest transport.

    Capital programs

    2
    Harmon Creek infrastructureunderway

    Benefit: enabling the completion and turn in line of lateral footage generated in recent quarters

    The plan is unfolding as expected with the infrastructure slated to come online midyear, enabling the completion and turn in line of lateral footage generated in recent quarters.

    Repauno terminal capacityunderway

    Benefit: more access to waterborne exports

    The Repauno terminal will go into service in January of 2027, allowing more access to waterborne exports.

    Risks & headwinds

    4
    Elevated steel market pricescurrent

    moving due to geopolitical events

    Mitigation: Range is mostly insulated from these increases due to our prepurchase of production casing in late 2025.

    Elevated fuel pricingcurrent

    diesel prices moving higher

    Mitigation: We expect no changes to our capital plans given the efficiency gains and contractual certainty around the rest of our program.

    Elevated NGL stock levelscurrent

    roughly 70% above where we've seen historical averages

    Mitigation: Additional export capacity coming online (150k bbl/day last year, 360k bbl/day recently, 300k bbl/day late 2026) and growing PDH demand (0.5M bbl/day over 24 months) expected to re-equilibrate stock levels.

    Middle East supply disruptionspast 6 weeks, ongoing

    LPG of the Middle East, roughly 1.5 million barrels a day... 1 million barrels per day has been absent from the market for the past 6 weeks.

    Mitigation: Range's flexible marketing allows it to capture better returns from international exports; U.S. export capacity build-out will supply global shortfall.

    What to watch in Q2 FY26

    5

    Production ramp to 2.5 Bcfe/day

    Year-end 2026
    Current2.2 Bcfe/day (Q1 FY26)
    Target2.5 Bcfe/day

    Why it matters

    Verifies the execution of the multi-year growth plan and the effectiveness of new infrastructure coming online.

    Production came in at 2.2 Bcf equivalent per day. Range expects production to increase slightly in the second quarter before jumping meaningfully higher at the midpoint of the year as gas processing and related infrastructure is put into service. This will push production to 2.5 Bcf equivalent per day by year-end, all in line with our previous guidance.

    Q&A highlights

    6

    Asked for specifics on NGL export contract terms (percentage/volume by market) and an update on Fort Cherry and the broader data center marketing strategy.

    Management declined to disclose specific NGL contract terms due to competitive reasons but confirmed ~80% of propane is exported from the East Coast, mostly linked to ARA/FEI indices. For Fort Cherry, dialogue is ongoing, and Range is pursuing over a dozen similar projects, citing a recent 75 MMcf/d power link deal as evidence of progress and potential for further expansion in data center/power generation.

    “We know that these are multi-decade financial commitments and decisions by these end users and counterparties, and we think it's perfect alignment with a company like Range that's got a long-term surety of supply and inventory like we do.”

    asked by Jacob Roberts · answered by Dennis Degner

    2 min read6 chapters

    Detailed Narrative

    01

    Operational Efficiency & DUC Strategy

    Range's single horizontal rig drilled 143,000 lateral feet in Q1, annualizing to over 0.5 million feet, with record daily drilling achievements. The electric fracturing fleet completed 874 stages, approaching 700,000 lateral feet annually, demonstrating peer-leading capital efficiency. This efficiency supports the multi-year plan and maintains a resilient DUC inventory for future capital and production optionality.

    02

    Winter Operations Success

    The company's winter operations program successfully maintained production volumes through harsh conditions like winter storm Fern, resulting in strong field run time and record free cash flow for February. This was attributed to facility design enhancements, strategic backup power, and coordination with gathering partners.

    03

    Strategic Marketing & Export Tailwinds

    Range's marketing strategy capitalized on global energy supply disruptions, particularly in March, leading to strong realized NGL prices. The company anticipates increased exports for LNG, ethane, propane, and butane throughout 2026, driven by new export capacity and global demand, which is expected to improve U.S. storage levels and absolute pricing.

    04

    Infrastructure & Production Ramp

    The multi-year plan involves infrastructure coming online mid-year, enabling a significant production increase to 2.5 Bcf equivalent per day by year-end. A second completion crew starting in Q2 will work through the DUC inventory, providing the tailwind for this production ramp and momentum towards the 2.6 Bcf equivalent per day target in 2027.

    05

    Data Center & Power Generation Opportunities

    Range is actively engaged in dialogues for over a dozen potential projects related to data centers and power generation, including the Fort Cherry location. A recent announcement of 75 million cubic feet per day supply for a Midwest power link structure indicates serious commitment and potential for further expansion in this area, aligning with Range's long-term supply surety.

    06

    Unit Cost Structure & Right-Way Risk

    Range maintains a permanent focus on driving down unit costs. Its gathering, processing, and transportation (GP&T) expense line item incorporates a "right-way risk" construct, linking costs to natural gas and NGL prices. This ensures that increased GP&T costs are correlated with higher realized prices and expanded margins, enhancing resilience through commodity cycles.

    AI-generated summary of the company’s earnings call. Not investment advice.