A premier independent E&P firm targeting the Permian Basin with a strategic focus on maximizing free cash flow through disciplined capital allocation and advanced extraction technologies.
Investors should consider Range Resources for its impressive free cash flow conversion where operating cash flow of $1.17B far outpaces the $834.2M used in financing activities, providing ample capacity for debt reduction or share buybacks. The company's ability to generate substantial non-cash adjustments of $1.83B alongside a gross profit of $2.93B suggests strong underlying asset quality and pricing power in the current energy landscape.
Potential downside risks include a heavy debt burden with long-term obligations of $1.20B and total liabilities of $3.10B against shareholders' equity of $4.32B, which could constrain flexibility during a prolonged downturn. The recent revenue decline from 2022 highs to 2024 levels before the 2025 rebound highlights the cyclical vulnerability inherent in an E&P business with a retained earnings deficit of -$909.2M.
Range Resources Corp is a leading natural gas and crude oil exploration and production company focused on the Permian Basin, serving energy markets across North America. The company leverages advanced drilling technologies to extract hydrocarbons while managing a diverse portfolio of assets to maximize shareholder value. Its operations are primarily concentrated in high-yield shale formations where it maintains significant reserve positions.
Recent financial performance shows a robust recovery with 2025 net income reaching $658.0M against $3.12B in revenue, reflecting improved operational efficiency and favorable commodity pricing. Operating cash flow of $1.17B significantly exceeds capital expenditures, demonstrating strong liquidity generation despite high depreciation and amortization costs totaling $370.5M.
The energy sector is currently characterized by consolidation and a focus on capital discipline as companies navigate fluctuating commodity cycles to maintain profitability. Range Resources operates within this environment by prioritizing high-return drilling projects that deliver consistent cash flow while adapting to evolving environmental regulations and market demand for natural gas heating fuels.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $4.15B | $3.37B | $2.42B | $3.12B |
| Cost of Revenue | $427.0M | $202.9M | $140.5M | $185.6M |
| Gross Profit | $3.72B | $3.17B | $2.28B | $2.93B |
| Operating Expenses | $2.31B | $2.07B | $2.03B | $2.10B |
| Operating Income | $1.41B | $1.10B | $250.6M | $831.7M |
| G&A | $168.1M | $164.7M | $172.1M | $178.3M |
| D&A | $353.4M | $350.2M | $358.4M | $370.5M |
| Depreciation | $2.2M | $1.5M | $1.4M | $1.6M |
| Other OpEx | $2.14B | $1.91B | $1.85B | $1.92B |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $165.1M | $124.0M | $118.8M | $104.9M |
| Pre-Tax Income | $1.41B | $1.10B | $250.6M | $831.7M |
| Income Tax | $230.5M | $229.2M | $-15.7M | $173.7M |
| Continuing Ops | $1.18B | $871.1M | $266.3M | $658.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $1.18B | $871.1M | $266.3M | $658.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $1.18B | $871.1M | $266.3M | $658.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $539.6M | $870.1M | $721.5M | $444.5M |
| Cash & Equivalents | $207.0K | $212.0M | $304.5M | $204.0K |
| Accounts Receivable | $481.1M | $274.7M | $302.2M | $358.7M |
| Prepaid Expenses | $32.9M | — | — | — |
| Other Current Assets | $25.4M | $383.5M | $114.8M | $85.6M |
| Long-Term Assets | $6.09B | $6.33B | $6.63B | $6.98B |
| PP&E (Net) | $2.4M | $1.7M | $2.5M | $4.9M |
| Operating Leases | $84.1M | $23.8M | $119.8M | $173.5M |
| Other LT Assets | $6.00B | $6.31B | $6.50B | $6.80B |
| Total Assets | $6.63B | $7.20B | $7.35B | $7.42B |
| Current Liabilities | $1.02B | $583.1M | $1.27B | $661.2M |
| Accounts Payable | $206.7M | $110.1M | $133.1M | $164.4M |
| Current Debt | $0 | — | $608.3M | $0 |
| Current Leases | $67.5M | $11.6M | $87.1M | $58.8M |
| Other Current Liab | $303.5M | $159.2M | $156.4M | $115.9M |
| Long-Term Liabilities | $2.73B | $2.86B | $2.14B | $2.44B |
| Long-Term Debt | $1.84B | — | $1.09B | $1.20B |
| LT Operating Leases | $20.9M | $16.1M | $35.7M | $115.5M |
| Other LT Liab | $866.0M | $2.84B | $1.01B | $1.13B |
| Total Liabilities | $3.75B | $3.44B | $3.41B | $3.10B |
| Shareholders' Equity | $2.88B | $3.77B | $3.94B | $4.32B |
| Retained Earnings | $-2.46B | $-1.67B | $-1.48B | $-909.2M |
| AOCI | $467.0K | $647.0K | $611.0K | $424.0K |
| Treasury Stock | $429.7M | $448.7M | $513.9M | $746.5M |
| Total L&E | $6.63B | $7.20B | $7.35B | $7.42B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.18B | $871.1M | $266.3M | $658.0M |
| Non-Cash Adjustments | $3.96B | $-3.13B | $623.9M | $1.83B |
| Working Capital Changes | $-3.28B | $3.23B | $54.3M | $-1.31B |
| Cash from Operations | $1.86B | $977.9M | $944.5M | $1.17B |
| Cash from Investing | $-489.8M | $-601.7M | $-623.8M | $-641.4M |
| Dividends Paid | $38.6M | $77.2M | $77.5M | $85.7M |
| Cash from Financing | $-1.59B | $-164.4M | $-228.2M | $-834.2M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-214.2M | $211.8M | $92.5M | $-304.3M |
| Beginning Cash | $214.4M | $207.0K | $212.0M | $304.5M |
| Ending Cash | $207.0K | $212.0M | $304.5M | $204.0K |
Core revenue streams include crude oil production from the Eagle Ford and Midland Basins, natural gas sales derived from associated gas flows, and refined products marketing activities that supplement upstream earnings.
The company faces significant exposure to volatile crude oil and natural gas commodity prices which directly impact revenue margins, regulatory changes affecting hydraulic fracturing operations in key basins, and potential increases in interest rates that raise the cost of their substantial long-term debt load.
Range Resources benefits from a strategic asset base in the prolific Permian Basin with access to premium drilling locations, proprietary frac designs that enhance well productivity, and a cost structure optimized for current commodity price environments.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.