Range Resources Q1 2025 Earnings Call Summary

Range Resources’ Q1 2025 earnings call revealed a confident and steady tone, underscored by strong operational execution and financial discipline. The company had no major new business revelations, but it did reinforce its outlook of disciplined growth, robust inventory, and strong market positioning. Management emphasized its ability to deliver shareholder value through cycles, backed by capital efficiency and strategic infrastructure investments.

1) Historical and Forecast Production Levels for Natural Gas

• Q1 2025 Production:

  • 2.2 Bcfe/day (69% natural gas)​

  • Average daily gas production: ~1.51 Bcf/day

• Full-Year 2025 Production Guidance:

  • Target remains at ~2.2 Bcfe/day​

  • Mix to remain ~70% gas, over 30% liquids

• Forecast Outlook:

  • Production to slightly decline in Q2 due to scheduled maintenance, but increase in H2 as completion activity ramps up​

  • “We expect production to be slightly down in the second quarter… Following Q2, we expect production to increase in the second half of the year…” – CEO Dennis Degner​

2) Production Curtailments or Shut-ins

• No voluntary shut-ins or curtailments were announced.

• The only production dip anticipated is seasonal and maintenance-related, not market-driven.

• “We expect production to be slightly down in the second quarter as we undergo scheduled processing maintenance.” – CEO Dennis Degner​

3) TIL (Turned In Line) and DUC (Drilled Uncompleted Wells)

• Q1 2025 Wells Turned In Line (TIL):

  • 10 wells, ~132,000 lateral feet turned to sales​

• Q1 2025 Drilling Activity (DUCs):

  • Drilled ~250,000 lateral feet across 18 wells

  • Building surplus inventory: aiming for ~400,000 lateral feet of DUCs by year-end​

  • “This places us right on-track to exit 2025 with approximately 400,000 lateral feet of surplus inventory.” – Degner​

• Planned 2025 TILs by Region:

  • SW PA Wet: 29

  • SW PA Super-Rich: 8

  • SW PA Dry: 5

  • NE PA Dry: 4​

4) Historical and Forward-Looking Rig and Frac Crew Numbers

• Q1 2025 Operations:

  • 2 horizontal rigs

  • 1 completion crew (electric frac fleet)

• Efficiency Achievements:

  • Set a record drilling pace: 5,961 feet/day

  • Frac team averaged ~9 stages/day – capacity for 650,000 feet/year at this pace, enough to hold production flat​

• Forward Outlook:

  • This modest rig/crew combo is sufficient to hold or modestly grow production through 2027

5) Hedging Strategy, Realized Prices, and Break-Even Costs

• Q1 2025 Realized Prices (including hedges):

  • Natural Gas: $3.64/mcf

  • NGLs: $27.75/bbl

  • Oil: $61.72/bbl

  • Overall: $4.02 per mcfe​

• Differentials & Guidance:

  • Gas: -$0.15 to NYMEX in Q1; FY guidance: -$0.40 to -$0.48

  • NGLs: Premium to Mont Belvieu ($1.05 in Q1)

  • Oil: -$10.28 to WTI

• Break-even Costs:

  • Full-cycle break-even below $2.50/MMBtu

  • Free cash flow breakeven: ~$2.00 NG / $75 WTI / $25 NGLs​

• Hedging Insight:

  • Hedging strategy includes basis hedges with net fair value of $11.7M as of March 31, 2025​

6) Politics, Economy, International Relations, and Tariffs

• Tariff commentary focused on LPG trade and pricing resilience:

• Range highlighted its East Coast export advantage during global dislocation, supporting continued NGL pricing premiums

• Emerging demand from Europe and PDH infrastructure cited as supportive

7) New Pipelines, LNG Projects, and Infrastructure

• Proposed Project:

  • Power Generation Facility in Washington County, PA

  • Collaboration with Liberty Energy and Imperial Land Corp.

  • Targeting data center and industrial load

  • Modular, scalable power: Up to 450 MW, consuming ~90-100 Mmcf/day​

• Pipeline Context:

  • MVP pipeline in service since June 2024 – improved basis by $0.30–$0.80

  • Open season on Boardwalk Pipeline Project mentioned

  • Constitution Pipeline discussed as a potential future development, though uncertain

8) Market Activity and State of the Market

• Q1 2025 Market Highlights:

  • Propane inventory draw: 41 million barrels

  • US gas inventories: 4.3% below 5-year avg., 22% below prior year

  • "Improved outlook going forward" due to winter-driven demand​

• In-basin demand drivers:

  • Data center development

  • Power reliability demand

  • Industrial reshoring

• Quote:

Key Numbers and Dates Recap

• Q1 2025 Production: 2.2 Bcfe/d

• Q1 Capex: $147 million (22% of 2025 budget)

• Q1 Free Cash Flow: $183 million

• Full-Year Capex Guidance: $650–$690 million

• Break-even Gas Price: ~$2.00/MMBtu

• Surplus DUC Inventory Goal: 400,000 ft by YE 2025

• New power project potential demand: ~100 Mmcf/d

• LNG/NGL exports: 80% of LPG exported to Europe