Skip to content
    RRC
    Earnings call· Dec 2025(Q4 FY25)

    RANGE RESOURCES Q4 FY25 earnings call RRC

    Feb 25, 2026 Source

    Executive summary

    Range Resources Q4 FY25 — Strong Operational Performance and Enhanced Shareholder Returns

    Range Resources delivered strong Q4 FY25 results, executing its multiyear plan with capital discipline and operational efficiency. The company generated significant free cash flow, enabling enhanced shareholder returns through increased buyback authorization and dividend growth. Strategic marketing deals and a robust inventory position Range for flexible growth aligned with future demand, despite current commodity price weakness.

    Highlights

    5

    • Full-year 2025 capital investment of $674 million was within guidance, supporting production of 2.24 Bcf equivalent per day.

    • Achieved a new yearly frac efficiency benchmark of 9.7 stages per day for 2025, completing nearly 3,800 stages.

    • Secured 2026 drilling and completions materials and services pricing flat to slightly lower than 2025 levels.

    • Generated over $650 million in free cash flow for FY25, alongside $1.3 billion in cash flow from operations before working capital.

    • Board increased share repurchase capacity to $1.5 billion and expects to increase the quarterly dividend by $0.01 per share (11%).

    Concerns

    2

    • Natural gas prices have weakened, with the forward curve materially lower than a year ago, though management believes their program is risk-adjusted.

    • Elevated NGL stock levels (propane and ethane) persisted through 2025, driven by weak demand and resilient production.

    Guidance & targets

    10
    CategoryTargetConfidence
    All-in capital budget
    $650 million to $700 million
    high materiality
    High
    Production
    2.35 to 2.4 Bcfe per day
    high materiality
    High
    Q1 Production
    roughly like 2.2 Bcf equivalent per day
    medium materiality
    High
    Year-end Production
    2.5 Bcf equivalent per day
    high materiality
    High
    Harmon Creek processing expansion capacity
    300 million a day
    medium materiality
    High
    Quarterly dividend increase
    $0.01 per share
    medium materiality
    High
    Share repurchase capacity
    $1.5 billion
    high materiality
    High
    2027 Production (capital reduction scenario)
    2.6 Bcfe per day
    high materiality
    High
    2027 Capital (growth scenario)
    $650 million to $700 million
    high materiality
    High
    2028+ Production (low capital scenario)
    2.6 Bcfe per day
    high materiality
    High

    Operational metrics

    23
    All-in capital
    $183 million
    Q4 FY25

    All-in capital for the fourth quarter.

    Production
    2.3 Bcf equivalent per day
    Q4 FY25

    Production for the fourth quarter.

    All-in capital
    $674 millionwithin guidance
    FY25

    All-in capital for the full year 2025, placing the company within previously improved guidance.

    Production
    2.24 Bcf equivalent per day
    FY25

    Production for the full year 2025, a result of strong well performance and optimization.

    Horizontal rigs operated
    2
    Q4 FY25

    Number of horizontal rigs operated in Q4 2025.

    Horizontal feet drilled
    225,000
    Q4 FY25

    Horizontal feet drilled across 15 laterals in Q4 2025.

    Laterals drilled
    69
    FY25

    Total laterals drilled in FY25, with average length and total lateral feet drilled.

    Frac stages completed
    1,200
    Q4 FY25

    Frac stages completed in Q4 2025, with associated efficiency.

    Frac stages completed
    nearly 3,800
    FY25

    Total frac stages completed in FY25, setting a new yearly efficiency benchmark.

    LNG exports
    over 17up 10% sequentially
    Q4 FY25

    Average LNG exports from the U.S. in Q4 2025.

    Waterborne ethane exports
    622,000up over 40% year-on-year and 24% sequentially
    Q4 FY25

    Estimated waterborne ethane exports in Q4 2025.

    LPG exports
    up modestlyyear-over-year
    Q4 FY25

    LPG exports were up modestly year-over-year and are expected to benefit significantly in 2026 from new U.S. export terminal capacity.

    Net debt reduction
    $186 million
    FY25

    Net debt reduction in FY25, contributing to a cumulative reduction of approximately $3 billion.

    Shares repurchased
    33 million shares
    Since 2019

    Cumulative shares repurchased since the program's initiation in 2019.

    Shares repurchased
    $231 million
    FY25

    Investment in share repurchases during FY25.

    Dividends paid
    $86 million
    FY25

    Dividends paid in FY25.

    DUC inventory
    more than 500,000approximately 100,000 more than previously discussed
    Current

    Growth-focused inventory of drilled uncompleted wells, providing flexibility.

    Maintenance D&C capital
    $500 million
    FY26

    Component of the 2026 capital budget.

    Growth D&C capital
    $120 million to $140 million
    FY26

    Incremental D&C growth capital for 2026, primarily allocated to a second completion crew.

    Land capital
    $15 million to $35 millionless than prior years
    FY26

    Capital for targeted acreage in 2026, reduced from prior years due to acreage held with production.

    Software and production facility upgrades capital
    $15 million to $25 million
    FY26

    Investment for further emissions reduction in 2026.

    Lateral feet turned to sales
    around 900,000
    FY26

    Expected lateral feet to be turned to sales in 2026.

    LNG feed gas redirected
    Approximately 5
    January 2026

    LNG feed gas redirected to serve U.S. needs during Winter Storm Fern.

    Industry KPIs

    9
    MetricValueDetails
    D c efficiency rig activity14,800feet
    Pipeline throughput storageover 17Bcf per day
    Realized price differential$3.60per unit of production
    Sanctioned expansion backlog300 million a daycapacity
    Basin level production volume2.3Bcf equivalent per day
    Cost of supply unit cash cost$1.64per Mcfe
    FCF shareholder distributionsover $650 millionUSD
    Take or pay contract structure—
    Weather event volume earnings impactover $7per MMBtu

    Orderbook & backlog

    2
    Share repurchase program authorization$1.5 billionQ4 FY25

    Increased from prior capacity

    Increased by the Board to position the program for the future.

    DUC inventorymore than 500,000 lateral feetQ4 FY25

    approximately 100,000 more lateral feet than previously discussed

    Growth-focused inventory to support future development, providing flexibility to align reinvestment with market fundamentals.

    Deals & partnerships

    1
    New Midwest power plantLong-term gas sales agreementlong-term

    Agreement to supply gas from planned processing expansion to a new power plant in the Midwest. The plant is expected to start up in late 2027.

    Capital programs

    3
    Harmon Creek processing expansionunderway

    Benefit: 300 million a day of capacity

    Expected to come online mid-year 2026, leading to a meaningful step-up in production in the second half of 2026 and continuing into 2027.

    Pneumatic retrofit projectunderway
    Start: 2024

    Benefit: further reduce emissions

    Project started in 2024 and expected to be completed by year-end 2026 as part of emissions reduction efforts.

    Majorsville facility debottleneckingunderway

    Benefit: more with the same infrastructure

    Debottlenecking efforts underway with midstream partner MPLX to bring out more capacity from existing infrastructure.

    Risks & headwinds

    3
    Weakened natural gas pricesCurrent

    materially lower than a year ago

    Mitigation: Program is risk-adjusted for expected cash flow; flexibility to defer TILs; strategic marketing to capture premium pricing.

    Elevated NGL stock levelsFY25

    elevated through 2025

    Mitigation: Expect stock levels to normalize through 2026 due to increased export capacity utilization and new demand (e.g., INEOS and SINOPE projects adding ~200,000 bbl/d incremental demand).

    Commodity price volatilityOngoing

    expected more volatility going forward

    Mitigation: Leveraging multidisciplinary team and flexible sales strategies (e.g., Bidweek vs. daily market exposure) to capture value during price spikes, as demonstrated during Winter Storm Fern.

    What to watch in Q1 FY26

    5

    Q1 2026 Production

    next quarter
    Current2.3 Bcfe/d (Q4 FY25)
    Targetaround 2.2 Bcfe/d

    Why it matters

    Verifies the expected seasonal decline and impact of ethane extraction fluctuations before the H2 ramp.

    So on a relative basis, Q4 was roughly 2.3, you'd expect Q1 to look roughly like 2.2 Bcf equivalent per day

    Q&A highlights

    5

    Can you provide more color on the expected cadence of production for 2026, especially the step-up in mid-year, and the infrastructure additions needed? Also, would you consider driving higher Q1 production for premium winter pricing?

    Q1 2026 production is expected to be around 2.2 Bcfe/d, similar to prior years' seasonal patterns, with fluctuations from ethane extraction. A significant ramp to 2.5 Bcfe/d by year-end 2026 is expected, driven by 300 MMcf/d processing capacity coming online mid-year. The company's strategy is to ramp production into improving commodity prices in the winter months.

    “At the midyear point, we've got some processing that comes online. That's around 300 million a day of capacity -- processing capacity that will go into service. Then on the back end of the year, that's where you'll see the ramp really take shape that carries momentum at the back end of '26 into improving commodity prices for the winter of '26-'27, and then through '27 as well.”

    asked by Scott Hanold · answered by Dennis Degner

    2 min read6 chapters

    Detailed Narrative

    01

    Operational Excellence and Efficiency Gains

    Range Resources demonstrated strong operational execution in Q4 FY25, with all-in capital of $183 million supporting 2.3 Bcfe/d production. For the full year, capital was $674 million, within guidance, yielding 2.24 Bcfe/d. The company drilled 69 laterals, totaling over 1 million lateral feet, with an average length of 14,800 feet. Completion efficiencies reached a new yearly benchmark of 9.7 frac stages per day per crew, completing nearly 3,800 stages in 2025.

    02

    Strategic Marketing and Export Growth

    U.S. energy exports continued to set records in Q4 FY25, with LNG exports averaging over 17 Bcf/d (up 10% sequentially) and waterborne ethane exports at 622,000 bbl/d (up 24% sequentially). Range capitalized on this demand, executing a long-term gas sales agreement for a new Midwest power plant, expected to start in late 2027 at an attractive premium. The company sees multiple near- and medium-term opportunities in power generation and data center sectors.

    03

    Financial Strength and Shareholder Returns

    Range generated $1.3 billion in cash flow from operations before working capital and over $650 million in free cash flow for FY25. The company reduced net debt by $186 million in 2025, contributing to a cumulative reduction of approximately $3 billion. Share repurchases totaled $231 million in 2025, with over 33 million shares bought back since 2019 for $744 million. The Board increased the share repurchase capacity to $1.5 billion and plans an 11% increase in the quarterly dividend.

    04

    2026 Outlook and Multiyear Flexibility

    For 2026, Range plans an all-in capital budget of $650 million to $700 million, targeting production of 2.35 to 2.4 Bcfe/d. The production profile is expected to be lower in Q1 (around 2.2 Bcfe/d) before stepping up meaningfully in H2 2026, reaching approximately 2.5 Bcfe/d by year-end, driven by commissioning of 300 MMcf/d processing capacity mid-year. The company maintains flexibility for 2027 and beyond, able to sustain 2.6 Bcfe/d with reduced capital or continue growth with similar capital levels.

    05

    Cost Management and Supply Chain Stability

    Range's supply chain team secured 2026 drilling and completions materials and services pricing that is flat to slightly lower than 2025 levels. Multi-year agreements, including a new 2-year term for an electric hydraulic fracturing fleet, provide stability. Management noted that service costs are approaching an 'asymptotic trend' on the bottom end, with future savings likely driven by operational efficiencies like water recycling and improved surface equipment design.

    06

    Winter Storm Fern Response and Market Volatility

    During Winter Storm Fern in January, Range's marketing and operational teams effectively coordinated production and sales, locking in strong free cash flow by selling natural gas at over $7/MMBtu. This event demonstrated the importance of energy security and the company's ability to capture value during periods of high volatility. Management expects continued volatility in gas markets and will leverage its multidisciplinary team to optimize sales.

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