Executive Summary

Q2 2025 delivered a clean EPS beat and a substantial EBITDA beat versus consensus, while revenue was below Street due to commodity accounting; Adjusted EPS was $0.66 vs $0.64* and EBITDA was $431.3M vs $327.3M*; GAAP EPS was $0.99 driven by a $155M mark-to-market derivative gain . Values retrieved from S&P Global*
Operations hit new records (812 frac stages; 6,250 lateral ft/day), all-in capital was $154M, production averaged 2.20 Bcfe/d with LOE of $0.11/Mcfe, supporting improved full-year capital and production guidance .
Guidance changes: capital budget high end lowered to $680M; production raised to ~2.225 Bcfe/d; NGL differential improved to MB +$0.40 to +$1.25; G&A and LOE ranges tightened modestly .
Near-term catalysts: management expects production ~flat in Q3 (~2.2 Bcfe/d) then stepping to ~2.3 Bcfe/d in Q4 as a spot frac crew and midstream expansions come online; improved NGL premium guidance and active buybacks ($53M in Q2; $120M YTD) augment per-share value .

What Went Well and What Went Wrong

What Went Well

Record efficiencies: 812 frac stages by a single crew (+7% QoQ) and drilling averaged ~6,250 lateral ft/day, enabling low capital intensity and inventory build (>400k lateral ft expected exiting 2025) .
Marketing uplift: pre-hedge NGL price $23.73/bbl with a $0.61 premium to Mont Belvieu, and full-year NGL premium guidance increased; East Coast export optionality differentiates Range vs Gulf Coast peers .
Capital returns and balance sheet: repurchased $53M of stock and paid $21M in dividends in Q2; repaid $606M senior notes (cash and revolver); net debt ~$1.22B, under 1x levered per management .

What Went Wrong

Revenue below consensus despite higher realized prices on key streams; Street “Revenue” can diverge from GAAP given derivative accounting, contributing to a reported revenue miss* . Values retrieved from S&P Global*
Unit costs: TGPC rose to $1.52/Mcfe from $1.44/Mcfe YoY (higher midstream/processing costs), partially offset by steady LOE at $0.11/Mcfe .
Cash margin per Mcfe compressed sequentially ($1.53 in Q2 vs $2.02 in Q1) as commodity mix/pricing and midstream costs weighed; still improved YoY .

Financial Results

Actuals vs Prior Periods (Company-reported)

Metric	Q4 2024	Q1 2025	Q2 2025
GAAP Revenues & Other Income ($M)	$626	$691	$856
Natural Gas, NGL & Oil Sales incl. cash-settled derivatives ($M)	$704.8	$796.5	$698.1
GAAP Net Income ($M)	$94.8	$97.1	$237.6
GAAP Diluted EPS ($)	$0.39	$0.40	$0.99
Adjusted Net Income ($M)	$163.8	$232.1	$157.8
Adjusted Diluted EPS ($)	$0.68	$0.96	$0.66
Cash Flow from Ops ($M)	$217.9	$330.1	$336.2
Cash Flow from Ops (pre WC) ($M)	$311.7	$397.4	$300.5
Cash Margin per Mcfe ($)	$1.55	$2.02	$1.53
Realized Price after hedges ($/Mcfe)	$3.48	$4.02	$3.49
Production (Bcfe/d)	2.203	2.200	2.197

Consensus vs Actual (Q2 2025)

Metric	Consensus	Actual	Surprise
Primary EPS ($)	0.639*	0.66*	+0.021*
Revenue ($M)	722.7*	694.8*	-27.9*
EBITDA ($M)	327.3*	431.3*	+104.0*

Values retrieved from S&P Global*

Unit Costs and Production Mix

Metric	Q4 2024	Q1 2025	Q2 2025
LOE ($/Mcfe)	$0.12	$0.13	$0.11
TGPC ($/Mcfe)	$1.48	$1.55	$1.52
G&A ($/Mcfe)	$0.18	$0.16	$0.16
Interest ($/Mcfe)	$0.14	$0.14	$0.13
DD&A ($/Mcfe)	$0.46	$0.46	$0.46

Production Mix	Q4 2024	Q1 2025	Q2 2025
Gas (mcf/d)	1,505,140	1,510,705	1,497,771
NGLs (bbl/d)	111,199	110,222	110,209
Oil (bbl/d)	5,028	4,706	6,382

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
All-in Capital Budget ($M)	FY 2025	$650–$690	$650–$680	Lowered high end
Annual Production (Bcfe/d)	FY 2025	~2.20	~2.225	Raised
Liquids % of Production	FY 2025	>30%	>30%	Maintained
Natural Gas Differential	FY 2025	NYMEX −$0.40 to −$0.48	NYMEX −$0.40 to −$0.48	Maintained
NGL Differential	FY 2025	MB +$0.25 to +$1.25	MB +$0.40 to +$1.25	Raised low end
Oil/Condensate Differential	FY 2025	WTI −$10 to −$15	WTI −$10 to −$15	Maintained
LOE ($/Mcfe)	FY 2025	$0.12–$0.14	$0.12–$0.13	Lowered upper bound
G&A ($/Mcfe)	FY 2025	$0.17–$0.19	$0.17–$0.18	Narrowed down
CFO Expected Cash Tax Rate	2025/26/27/2028	Prior earlier timing	Low single digits; mid single; high single; full cash taxpayer mid-to-high teens	Improved timing

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
AI/data center & in-basin demand	Outlined 3-year plan; transport secured to Midwest/Gulf; NGL export capacity	Announced collaboration to supply gas to proposed power facility in PA; bullish PJM demand	$90B AI/power investments announced in PA; five-nines reliability; near-term supply deals in discussion	Accelerating visibility
Operational efficiency	Long laterals; electric frac gains	E-frac contract extension; record drilling pace	New records in frac stages and drilling rate; LOE $0.11/Mcfe	Improving
NGL export premiums	Record premiums; East Coast terminal planned	Premium to MB; timing ethane for cash uplift	Premium $0.61/bbl; full-year premium guidance raised	Constructive
LNG & macro demand	Diversified end markets; LNG/international NGL	Strong winter draws; LNG commissioning ramps (Plaquemines; Corpus Christi)	U.S. LNG feed gas >17 Bcf/d; inventories ~3 Tcf; +8.5 Bcf/d demand next 18 months	Supportive
Hedging approach	Modest hedging; preserve upside	~35% 2025 hedged; ~15% 2026 (swaptions to ~25%); raise ceilings	Fine-tuning collars; raised 2026 ceilings; keep upside	Steady discipline
Permitting/regulatory	—	State support (Sites Act)	Optimism on permit reform; bipartisan momentum; Governor support	Improving
Tax outlook	NOLs and cash taxes detail	—	Cash taxpayer pushed one year; lower effective cash tax path	Improved

Management Commentary

“In the second quarter we repurchased $53 million in shares… paid $21 million in dividends… repaid maturing senior notes totaling $606 million… enterprise value returned to equity holders to $646 million… roughly 7% of Range’s market cap in just the first two quarters.” — CFO Mark Scucchi .
“Our operations team set new Range quarterly drilling and completions records… averaging approximately 6,250 lateral ft per day… executed 812 frac stages… keeping lease operating expense at just $0.11 per Mcfe.” — CEO Dennis Degner .
“Over the three-year period through 2027, free cash flow should total in excess of $2 billion… Alternatively, cash flow… could repay all debt and still acquire a significant percentage of Range’s shares outstanding.” — CFO Mark Scucchi .
“We have again improved the full year guidance for our expected NGL premium.” — CEO Dennis Degner .
“We anticipate Range becoming a full cash taxpayer one year later than before… 2025 low single digits… 2026 mid single… 2027 high single… 2028 mid to high teens.” — CFO Mark Scucchi .

Q&A Highlights

Supply deals and basin oversupply risk: Management emphasized “five nines” reliability, long-duration inventory, and diversified marketing to avoid basis blowouts; expects near-term supply agreements to materialize .
Growth cadence and capital: Growth is modular and tied to demand pull; per-share value compounding via buybacks plus production growth; production expected ~flat Q3 then ~2.3 Bcfe/d in Q4 .
Hedging: Maintain insurance on fixed costs while raising ceilings to retain upside; 2026/2027 books “basically where we want them” .
In-basin vs Gulf Coast: Will backstop Gulf Coast demand via secured transport; ~14 brownfield/greenfield projects under evaluation; netback-driven allocation .
Permitting and propane stocks: Optimism on federal/state permit reform; propane exports ~1.8M bbl/d (+5% YoY) with dock expansions supporting demand into 2026 .

Estimates Context

Q2 2025: EPS beat ($0.66 vs $0.64*), EBITDA beat ($431.3M vs $327.3M*), Revenue miss ($694.8M vs $722.7M*). Models likely raise EBITDA/FCF assumptions, trim “Revenue” depending on classification, and incorporate higher NGL premium guidance . Values retrieved from S&P Global*
FY 2025 consensus: EPS 2.86*, Revenue $3.024B*, EBITDA $1.386B*; incorporate company’s raised production and tightened capital guide . Values retrieved from S&P Global*

Key Takeaways for Investors

Strong operational execution and marketing uplift drove an EPS/EBITDA beat despite a revenue miss tied to commodity accounting; cash margins remain healthy with LOE at $0.11/Mcfe .
Guidance improved: capital high end cut to $680M and production raised to ~2.225 Bcfe/d; NGL premium guidance higher, supporting realizations and cash flow .
Capital returns are accelerating with $53M buybacks in Q2 and dividend continuity; balance sheet optionality preserved under ~1x leverage per management .
Near-term setup: Q3 production ~flat then step-up in Q4 as spot crew and midstream expansions commission; watch for potential in-basin supply agreements (AI/data centers) .
Medium-term thesis: 2.6 Bcfe/d by 2027 at <$700M/yr capital with ability to maintain at ~$570M; multi-year FCF ($2B+) and per-share compounding via buybacks underpin valuation .
Risks: TGPC cost inflation, timing of data center contracts, and macro volatility; hedging strategy seeks downside insurance while preserving upside .
Tactical: Monitor NGL premiums, LNG feed gas (>17 Bcf/d), and permit reform momentum; these are catalysts for pricing and netbacks .

Important press releases in period:

Q2 earnings 8-K and press release (results, guidance) .
Dividend declared $0.09 for Q3 (Aug 29, 2025) .

Non-GAAP notes: Adjusted EPS ($0.66) excludes non-cash derivative mark-to-market (+$155M), stock comp, and other special items; reconciliations provided in 8-K .

Production outlook: Management expects ~2.2 Bcfe/d in Q3 and ~2.3 Bcfe/d in Q4, aligned with improved gas/NGL fundamentals and commissioning schedules .

RANGE RESOURCES CORP (RRC)·Q2 2025 Earnings Summary