Range Resources (NYSE: RRC) reported Q3 EPS of ($0.05), $0.03 worse than the analyst estimate of ($0.02). Revenue for the quarter came in at $299.35 million versus the consensus estimate of $483.12 million.

Third Quarter Highlights –

• Well costs continue to average less than $600 per lateral foot, including facility costs, the lowest in Appalachia
• 2020 annual capital spend expectation reduced by at least $15 million, due to efficiency improvements
• Total capital expenditures were $63.5 million during the quarter
• Transportation, gathering, processing and compression expense improved $0.10 per mcfe, or 7% versus prior year
• Lease operating expense improved to $0.10 per mcfe, a record low for the Company
• Total cash unit costs improved $0.18 per mcfe, or 9% versus prior year
• Closed on North Louisiana asset divestiture for gross proceeds of $245 million, plus an additional $90 million contingent on future commodity prices
• Issued $300 million in additional 2026 notes and repurchased $500 million in near-term maturities via tender offer, extending the Company’s debt maturities while maintaining liquidity
• Reaffirmation of the existing $3.0 billion borrowing base and elected commitments of $2.4 billion
• Published an updated Corporate Sustainability Report highlighting Range’s environmental leadership, strong governance, and focus on workforce health and safety.

Commenting on the quarter, Jeff Ventura, the Company’s CEO said, “Range continued to make steady progress in the third quarter by operating safely, improving our cost structure, reducing debt, extending our maturity runway, and methodically developing our core asset with peer-leading well costs and capital efficiency. As a result of efficient operations, we were able to reduce our capital budget for 2020 while accomplishing our operational objectives, setting us up well for 2021. Looking forward, our shallow base decline of less than 20% and peer leading well costs provide Range a sustaining capital requirement per unit of production that we believe is the best among peers, providing us a solid foundation for generating corporate returns. With an improved price outlook for natural gas and natural gas liquids, Range is well-positioned to generate durable free cash flow, which at today’s stock price equates to a free cash flow yield that competes with any sector.”

For earnings history and earnings-related data on Range Resources (RRC) click here.