Range Resources (RRC) is set to announce second-quarter earnings Monday as the price of natural gas has increased amid rising demand in Europe and the U.S. Natural gas stocks generally fell Friday, despite natural gas prices reaching five-week highs. Meanwhile, crude oil dropped to test technical lows. Natural gas industry peer EQT (EQT) will release its Q2 earnings on Wednesday.
Quarterly reports from these natural gas producers comes as natural gas and crude oil prices have begun to noticeably diverge, with the former rising and the latter pulling back from recent highs.
U.S. natural gas prices increased around 5% to $8.3 per million British thermal units Friday. Prices had rocketed more than 8% Wednesday before dropping off around 1.5% Thursday. Meanwhile U.S. crude oil prices settled just above $94 Friday, extending losses for a third straight session.
Natural Gas Stocks: Range Resources Earnings
Estimates: Wall Street predicts earnings per share of $1.21 and $958 million in sales.
Results: Check back on Monday, July, 25 after the market closes.
RRC stock ended down 2.3% to 29.72 in Friday’s market trading. Range Resources, which is based in Fort Worth, is a leading U.S. natural gas producer with its main operations in Pennsylvania. It targets the Marcellus, Utica and Upper Devonian shale formations. The Marcellus shale is currently the largest natural gas field in the country.
Range Resources beat its earnings estimates in Q1, reporting EPS of $1.18 on $987 million in revenue. RRC’s first-quarter capital spending was $117 million, approximately 25% of its 2022 budget. The natural gas producer expects its 2022 all-in capital budget to be $460-$480 million.
RRC ranks 11th in the oil & natural gas stocks in U.S. exploration and production industry group. stock has a Composite Rating of 98. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. Its EPS rating is 78.
EQT stock was up 0.5% to 42.23 on Friday. The company, headquartered in Pittsburgh, also focuses its natural gas production operations in the Marcellus and Utica shales which are located in the Appalachian Basin. This area extends from the Adirondack Mountains in New York to central Alabama.
Estimates: Analysts forecast EPS of 77 cents on $1.6 billion in sales for the second quarter.
Results: EQT will announce earnings after the market closes on Wednesday, July 27.
EQT missed earnings estimates in the first-quarter with EPS of 81 cents and $1.57 billion in sales. The company’s full-year guidance after the first quarter was an adjusted EBITDA of $3.8- $4 billion. EQT also expects its capital expenditures in 2022 to be $1.3-$1.45 billon.
EQT ranks fifth among oil & natural gas stocks in the integrated energy industry group. It has a 98 Composite Rating and a 99 Relative Strength Rating. The company has an EPS Rating is 78.
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