Breaking Down Range Resources Corporation (RRC) Financial Health: Key Insights for Investors

You're looking at Range Resources Corporation and trying to map their financial resilience against a volatile natural gas market, so let's cut right to the numbers that matter. The company's Q3 2025 performance defintely showcases a disciplined capital strategy, reporting a GAAP net income of a strong $144 million, which translates to $0.60 per diluted share. That's a significant improvement, and it shows their ability to generate real earnings even through commodity price shifts. Their full-year 2025 all-in capital budget is tightly managed between $650 million and $680 million, which supports an annual production guidance of approximately 2.23 Bcfe per day (Billion Cubic Feet Equivalent per day). We need to see if the reduction of net debt, which stood at a manageable $1.2 billion as of Q3, can be sustained while they continue to generate free cash flow-the real engine for shareholder returns. That's a solid balance sheet in a tough sector.

Revenue Analysis

If you are looking at Range Resources Corporation (RRC), the direct takeaway is that their revenue growth remains strong in 2025, driven by a reliable production mix and smart financial engineering. For the third quarter of 2025, RRC reported GAAP revenues and other income totaling $749 million, which is a solid 22% increase from the same quarter in 2024. This growth is defintely a positive signal, especially in a volatile commodity market.

The core of RRC's revenue stream is simple: extracting and selling hydrocarbons from the Appalachian Basin. They are primarily a natural gas and Natural Gas Liquids (NGL) producer. To be fair, the company's revenue isn't just from sales at the wellhead; it also includes significant contributions from managing commodity price risk through derivatives.

Here is the quick math on where the revenue came from in the second quarter of 2025, which gives you a clear picture of the business segments:

• Natural Gas, NGLs, and Oil Sales: The production side generated $666.64 million.
• Derivative Fair Value Income: Financial hedging contributed $154.75 million.
• Brokered Natural Gas and Marketing: This segment added $33.01 million.

What this breakdown hides is the underlying production mix, which is key to RRC's stability. Approximately 69% of their production volume is natural gas, with liquids (NGLs and oil) making up over 30% of the total equivalent production per day. This liquids component provides a critical hedge against pure natural gas price swings.

Year-over-Year Revenue Trajectory

The growth rate for RRC has been impressive in the first three quarters of 2025. While the Q3 growth was 22%, the second quarter saw an even more substantial year-over-year revenue increase of 62.2%, reaching $854.39 million. This shows a significant acceleration in top-line performance compared to 2024.

Looking at the trailing twelve months (TTM) ending September 30, 2025, RRC's total revenue reached $2.922 billion, representing a 6.93% increase year-over-year. This suggests a strong rebound from the previous year's figures. Analysts are forecasting the full-year 2025 revenue to land around $3.15 billion.

The most significant change in the revenue stream is the strategic reliance on derivative fair value income (gains from hedging), which can fluctuate wildly but provides a necessary buffer for a commodity producer. When you look at the total revenue, you must account for this financial engineering.

For a deeper dive into who is betting on RRC's production strategy, check out Exploring Range Resources Corporation (RRC) Investor Profile: Who's Buying and Why?

Here's a look at the recent quarterly revenue performance:

The takeaway is that RRC is generating substantial revenue and cash flow, but a portion of that is tied to financial instruments, not just physical sales. You need to watch the derivative component closely.

Profitability Metrics

The direct takeaway here is that Range Resources Corporation (RRC) is operating with a significant profitability advantage over its peers, largely due to its low-cost structure in the Appalachian Basin. Your TTM (Trailing Twelve Months) Net Profit Margin sits robustly above the energy sector average, cushioning you against the volatility inherent in natural gas prices.

For the twelve months ending September 30, 2025, RRC's financial health looks defintely solid. While the Gross Profit Margin is an eye-popping figure-hovering near 97%-this is typical for an Exploration and Production (E&P) company where the Cost of Sales only includes direct lifting costs, not the massive overhead or depletion, depreciation, and amortization (DD&A) expenses.

A more telling picture comes from the Operating and Net Margins. Here's the quick math based on the TTM data through Q3 2025:

• Operating Profit Margin: Approximately 28.24% (based on TTM Operating Income of $0.785 billion on $2.78 billion in revenue).
• Net Profit Margin: Approximately 20.58% (based on TTM Net Income of $0.572 billion on $2.78 billion in revenue).

Outperforming the Energy Sector

You aren't just profitable; you're a top-quartile performer. The analyst consensus forecast for RRC's Net Income Margin is even higher, projected at 22.9% for the next fiscal year. To be fair, that's a massive gap when you compare it to the broader Energy sector. The average Net Income Margin forecast for companies in the Developed economic region's Energy sector is actually a negative -3.8%, and the median is only 7.1%.

RRC's 22.9% forecast places you in the 82.5% percentile of the sector, which is a clear signal of your competitive advantage. This margin strength reinforces RRC's position as a top-tier operator compared to peers.

Efficiency and Trend Analysis

The trend in profitability is clearly upward in the near term. For the twelve months ending September 30, 2025, TTM Operating Income increased by a solid 11.48% year-over-year, and TTM Net Income jumped by 19.55% year-over-year. This isn't just a commodity price fluke; it's a reflection of operational discipline.

Operational efficiency, or cost management, is the real story here. In the third quarter of 2025, Range Resources Corporation reported a 22% increase in total revenues and other income to $748.5 million, but total costs and expenses only rose by 3% to $565.2 million. That is a textbook example of positive operating leverage, where revenue growth outpaces cost growth. It means every new dollar of revenue is dropping more to the bottom line.

This cost control is driven by improved drilling techniques and reduced per-well costs, which have kept cash margins healthy. Plus, the focus on exporting to premium markets supports these profit levels. If you want to dive deeper into who's buying into this story, you should read Exploring Range Resources Corporation (RRC) Investor Profile: Who's Buying and Why?

What this estimate hides is the continued risk from natural gas price volatility, but the sustained margin around 20% acts as a crucial buffer.

Next Step: Strategy Team: Model the impact of a 15% drop in realized gas price against the 22.9% Net Margin forecast by the end of the month.

Debt vs. Equity Structure

You want to know how Range Resources Corporation (RRC) is funding its operations, and the short answer is: they are leaning heavily on equity and internal cash flow, not new debt. The company's financial structure is strong, reflecting a deliberate strategy to pay down long-term debt and return capital to shareholders, a smart move in a volatile commodity market.

As of the third quarter of 2025, RRC's total debt load is manageable, especially when you look at the equity backing it. Their total debt, which includes short-term and long-term obligations, stood at approximately $1.373 billion at the end of September 2025. This debt is primarily composed of senior notes, with only a small portion drawn on their revolving credit facility.

The key metric here is the Debt-to-Equity (D/E) ratio, which shows how much debt a company uses to finance its assets relative to the value of its shareholders' equity. For Range Resources Corporation, the D/E ratio as of September 2025 was a low 0.33. This is a very favorable number for an Exploration and Production (E&P) company, where a ratio below 1.0 is often considered healthy. It defintely signals that RRC is not overly reliant on borrowed money.

Here's the quick math on their Q3 2025 financing structure:

• Total Debt (Long-Term/Short-Term): $1.373 billion
• Total Stockholders' Equity: $4.204 billion
• Debt-to-Equity Ratio: 0.33

The company continues to manage its debt actively. In May 2025, Range Resources Corporation paid off the remaining principal balance of its 4.875% senior notes due 2025, a clear sign of their commitment to deleveraging. More recently, in October 2025, they refinanced their revolving bank credit facility, pushing the maturity out significantly to October 2030 and increasing bank commitments from $1.5 billion to $2.0 billion. This extension and increased liquidity, while maintaining a net debt target of around $1.2 billion, gives them a lot of financial breathing room.

This conservative approach to financing is also reflected in their credit rating. S&P Global Ratings upgraded the company's issuer credit rating to 'BB+' in 2024, expecting their Funds From Operations (FFO) to debt ratio to rise to about 90% in 2025, which is a significant improvement in credit health. They are generating significant free cash flow and using it to fund growth and reward shareholders, not just service debt.

Range Resources Corporation balances debt and equity by prioritizing cash flow generation and using it for share repurchases, which is an equity-focused strategy. In Q3 2025 alone, they repurchased over 1.58 million shares at an average price of $35.59 per share. This reduces the share count, which helps boost earnings per share and is a direct return of capital to you, the shareholder. This focus on capital return and a strong balance sheet is a core part of their strategy, which you can read more about in their Mission Statement, Vision, & Core Values of Range Resources Corporation (RRC).

Liquidity and Solvency

When you look at Range Resources Corporation (RRC), the first thing to understand is that its liquidity ratios, while low by general industry standards, are somewhat typical for an exploration and production (E&P) company. The company's ability to cover its immediate debts with its most liquid assets is tight, but a deeper look at cash flow shows a more resilient picture.

As of the end of the third quarter of 2025, Range Resources Corporation's current ratio stood at approximately 0.56, and its quick ratio was nearly identical at 0.56. A ratio below 1.0 means current liabilities exceed current assets, suggesting a short-term liquidity challenge if the company suddenly had to liquidate. However, the consistent generation of operating cash flow is the real story here, which is why E&P companies often operate with these lower ratios.

The working capital trend for Range Resources Corporation shows a slight drain on cash, with a trailing twelve months (TTM) change in working capital of approximately $-127 million as of September 2025. This negative change means that the growth in current assets (like accounts receivable) was less than the growth in current liabilities (like accounts payable), pulling cash away from operations. This is a factor to monitor, but the underlying cash generation remains strong.

Here's the quick math on their cash flow statements for the first three quarters of 2025, which tells you how much cash the core business is actually generating:

• Operating Cash Flow (CFO): Consistently positive, totaling approximately $914 million for the first nine months of 2025 (Q1: $330M, Q2: $336M, Q3: $248M).
• Investing Cash Flow: Primarily capital expenditures (Capex), which totaled $484 million through Q3 2025 ($147M in Q1, $154M in Q2, $190M in Q3).
• Financing Cash Flow: Focused on debt reduction and shareholder returns, including repurchasing $56 million in shares and paying $21 million in dividends in Q3 alone.

The company's ability to generate significant free cash flow (FCF), which was $89 million in Q3 2025, is the primary liquidity strength. This cash flow allows them to reduce net debt, which was maintained at a healthy $1.2 billion through Q2 and Q3 2025. They also paid off the remaining principal on their 4.875% senior notes due in 2025, a smart move to defintely clean up the near-term debt schedule.

What this low ratio estimate hides is a substantial liquidity cushion: Range Resources Corporation increased its bank commitments on its revolving credit facility from $1.5 billion to $2.0 billion in Q3 2025, with a maturity extended to 2030. That's a huge, untapped source of emergency funding. So, while the ratios look tight, the strong operating cash flow and the large credit facility mean there are no immediate liquidity concerns.

For a more detailed look at the company's full financial picture, including valuation and strategy, you should read the main post: Breaking Down Range Resources Corporation (RRC) Financial Health: Key Insights for Investors.

Valuation Analysis

The core takeaway for Range Resources Corporation (RRC) right now is that the market views it as fairly valued, leaning toward a 'Hold' consensus. This isn't a screaming 'Buy,' but it's defintely not a warning sign either. Your decision hinges on whether you believe RRC can outperform its peers in the volatile natural gas market, especially given the current valuation multiples.

As of late November 2025, the stock is trading around the $39.32 mark, having climbed about 14.30% over the last 12 months. That's a solid run, but it pushes the valuation metrics to levels that suggest the near-term growth is already priced in.

Here's the quick math on Range Resources Corporation's key valuation multiples for the 2025 fiscal year:

When you look at the multiples, Range Resources Corporation trades at a premium to the average Oil & Gas Exploration & Production (E&P) industry median. The P/E ratio of 16.06x and the P/B ratio of 2.12x both tell you the market is willing to pay more for RRC's earnings and assets than for its average competitor. This premium often reflects confidence in their Marcellus Shale position and operational efficiency, but it also limits your immediate upside.

Analyst Consensus and Price Action

The street is largely in agreement that Range Resources Corporation is currently priced appropriately. The consensus rating from analysts is a collective 'Hold.' This means most professionals believe the stock will perform in line with the broader market, not dramatically better or worse, over the next 12 months.

• The average analyst price target sits at about $41.85.
• This target suggests a modest upside of around 6.4% from the recent trading price of $39.32.
• The breakdown of ratings shows a mixed picture: 2 Strong Buy, 6 Buy, and 14 Hold ratings.

The stock's 12-month performance, with a gain of 14.30%, shows good momentum, but the 52-week high of $43.50 suggests the stock has already tested the upper bounds of the current analyst price targets. This is a stock that has already moved, so you're buying into a fair-value scenario, not a deeply discounted one.

Dividend Profile: A Low Payout, High Safety Signal

For income-focused investors, Range Resources Corporation isn't a high-yield play, but its dividend metrics signal safety and financial discipline. The company's dividend policy favors financial flexibility and debt reduction over a high payout, which is smart in a cyclical commodity business.

The current forward dividend yield is about 0.94%, with an annual dividend of $0.36 per share. The crucial number here is the dividend payout ratio-the percentage of earnings paid out as dividends-which is very low at approximately 14.60%. A low payout ratio like this means the dividend is extremely well-covered by earnings, and the company has plenty of cash flow left over for share repurchases and debt paydown. This low payout is a strong indicator of dividend safety, even if the yield itself is small.

For a deeper dive into who is actually buying and selling this stock, you should read Exploring Range Resources Corporation (RRC) Investor Profile: Who's Buying and Why?

Risk Factors

You're looking for the unvarnished truth about Range Resources Corporation (RRC), and the reality is that even a well-managed producer in the Appalachian Basin faces significant, near-term headwinds. The biggest risk is not internal; it's the highly volatile price of natural gas, which directly impacts their cash flow generation.

In Q3 2025, for example, Range Resources' adjusted free cash flow (FCF) dipped to only $89 million, a sharp drop from the prior quarter, largely due to weaker commodity prices, even though their cash costs per unit fell to just $1.91 per Mcfe. That's a tight margin when your FCF breakeven is estimated around the $2/MMBtu mark. They are defintely exposed to the market.

External Risks: Commodity Price Volatility and Market Competition

Range Resources is a natural gas and natural gas liquids (NGL) producer, with approximately 69% of its Q3 2025 production being natural gas. This concentration means their financial health is inextricably linked to the natural gas strip price, which can swing wildly based on weather, storage levels, and global demand for liquefied natural gas (LNG). While the company is a leader in the Marcellus Shale, competition from other large, low-cost producers like EQT Corporation keeps the pressure on pricing and market share.

Also, regulatory changes pose a constant threat. New environmental regulations from the Environmental Protection Agency (EPA) or state-level mandates in Pennsylvania could increase operational costs or restrict drilling permits, which directly impacts their ability to execute on their 2025 all-in capital budget of $650 million to $680 million. To be fair, RRC has been proactive in securing incremental transportation and export capacity to premium markets, which helps mitigate regional price basis risk.

• Natural Gas Price: The primary risk, given its production mix.
• Basis Differentials: Volatility between the benchmark NYMEX price and regional Appalachian prices.
• Regulatory Headwinds: Potential for increased environmental compliance costs.

Financial and Operational Risks Highlighted in 2025

While Range Resources has done a great job of deleveraging (reducing debt), their net debt still stood at approximately $1.23 billion at the end of Q3 2025. This is a manageable figure, especially with their recent credit facility extension, but it still requires a significant portion of their operating cash flow to service. The company's financial strategy hinges on generating consistent free cash flow to continue paying down debt and returning capital to shareholders via dividends and buybacks.

On the operational side, the timing of capital spending (capex) can skew quarterly results. Here's the quick math: Q3 2025 capital spending was $190 million, which represented about 29% of their annual budget, making it the heaviest quarter for spending. This high spending period directly contributed to the lower FCF in Q3 2025, even though it builds inventory for future production growth, which is expected to average around 2.23 Bcfe per day for the full year 2025.

Mitigation: The Range Resources Playbook

Range Resources' management is not sitting still; their strategy is clear and centers on financial discipline. They use a strong hedging program, which is crucial for a natural gas producer, to lock in prices and protect cash flow from those wild market swings. This is why their realized price in Q3 2025, including hedges, was a solid $3.29 per mcfe. Also, the October 2025 amendment to their revolving bank credit facility, which extends the maturity to 2030 and increases bank commitments to $2.0 billion, significantly strengthens their liquidity and removes a near-term refinancing risk. This focus on capital structure and cost control is how they plan to deliver value through the cycles. For a deeper dive into the numbers, you should read the full analysis in our piece: Breaking Down Range Resources Corporation (RRC) Financial Health: Key Insights for Investors.

Next Step: Portfolio Manager: Assess the current hedge book against your internal natural gas price forecast to model RRC's FCF sensitivity for Q4 2025.

Growth Opportunities

Range Resources Corporation (RRC) is defintely poised for a period of disciplined growth, not explosive, but highly profitable. The core takeaway is that RRC is leveraging its world-class Marcellus Shale assets to capture a massive, near-term surge in domestic demand, all while maintaining a strong balance sheet and returning capital to you, the shareholder.

The company's growth isn't about wild acquisitions; it's about operational efficiency and market positioning. They are focused on a three-year plan targeting approximately 20% production growth through 2027, which they can achieve without exceeding an annual capital expenditure (CapEx) of around $650 million to $680 million in 2025. That's capital discipline in action.

Key Drivers: New Demand and Low-Cost Assets

The biggest near-term opportunity is a dramatic rise in in-basin demand for natural gas. We're talking about over $90 billion in new AI, power, and infrastructure investments announced in Pennsylvania just in July 2025. This creates a clear path for Range Resources Corporation to secure new, large-supply agreements, capitalizing on its position as one of the few Appalachian producers with the inventory to support long-term, dependable supply. They are positioned perfectly for this energy revolution.

Plus, their core competitive advantage is the sheer quality and low cost of their inventory. Range Resources Corporation has over 30 years of high-quality Marcellus inventory, with a significant portion breaking even at natural gas prices below $2.50 per Mcf. That peer-leading cost structure provides a huge buffer against commodity price volatility, ensuring superior full-cycle margins (the profit earned over a full commodity price cycle).

• Capture new AI/power demand in Pennsylvania.
• Maintain low-cost production advantage.
• Grow Natural Gas Liquids (NGLs) export volumes.

2025 Financial Projections and Earnings Estimates

Looking at the full fiscal year 2025, the numbers show a solid financial trajectory. The company has already demonstrated a commitment to shareholder returns, repurchasing $120 million in shares and paying $43 million in dividends in the first half of the year alone. They also repaid $606 million of maturing senior notes, which strengthens the balance sheet and reduces future interest expense. That's how you compound per-share gains, even if net income growth moderates.

Here's a quick look at the most recent full-year consensus estimates for Range Resources Corporation, based on data available as of November 2025:

What this estimate hides is the strategic shift toward liquids. Liquids (Natural Gas Liquids or NGLs) are expected to make up over 30% of 2025 production, and their competitive NGL export capabilities position them favorably to meet international demand, which typically commands a premium price. This focus on NGLs is a smart product innovation that supports better margins, and it's a key part of the story you can read more about in Breaking Down Range Resources Corporation (RRC) Financial Health: Key Insights for Investors.