Range Resources (NYSE:RRC) reported after the close, posting strong earnings, announcing a substantial buyback, and guiding the street to flat production in 2022:
- Earnings – Range (RRC) posted 96c in adjusted EPS during Q4 versus Bloomberg consensus estimates of 97c.
- Production – the Company guided to 2.14bcfe/d (midpoint) of production in 2022, versus 2021 results of 2.13bcfe/d.
- Capital – capital spending in 2022 will increase to $470m (midpoint) from $414m in 2021.
- Shareholder returns – the main event of the release, Range (RRC) announced an annual cash dividend of 32c/s (~1.5% forward yield), and authorized a $500m share repurchase plan (~10% of current market capitalization).
In 2022 management expects to generate over $1b in free cash flow at strip prices (~20% of current market cap), and is clearly focused on returning cash to shareholders. The supply discipline narrative for natural gas producers is not as strong as in the liquids-focused e&ps; however, the absolute level of shareholder returns is sure to catch the market’s attention.
