Range Resources (NYSE:RRC) said its second-quarter 2026 operations kept the company on track with a multi-year growth plan, as executives pointed to record drilling and completion efficiency, rising production and higher pricing expectations for natural gas liquids and natural gas.
Chief Executive Officer Dennis Degner said the quarter marked “a unique milestone” as Range reached the midpoint of the growth plan it announced early last year. He said the company’s cost structure, well performance and marketing portfolio are supporting free cash flow while Range grows production.
Operational efficiency drives record activity
Range reported second-quarter capital spending of $222 million. Degner said the company added a second completion crew to work through part of its drilled-but-uncompleted inventory that had accumulated over the prior 24 months. The quarter also included a spot horizontal rig for a single pad development expected to turn to sales later this year.
Degner said Range expects to return to a single horizontal rig and single frac crew in the fourth quarter, keeping capital plans aligned with prior guidance. The company drilled about 190,000 lateral feet during the quarter.
Range highlighted several operational records and efficiency gains during the call:
- Drilling crews recorded 19 days in which they drilled more than one mile horizontally, including one 24-hour period above 10,500 feet.
- Two completion crews completed nearly 1,900 frac stages during the quarter, including downtime for moves between pad sites.
- The two crews averaged more than 10 stages per day per crew, while the company’s contracted electric frac fleet approached 14 stages per day.
- The company set records for most frac stages in one day by a single crew, at 20, and highest pumping hours in one day, at 22 hours.
Degner said the stronger completion efficiency allowed Range to move a portion of second-half 2026 drilling activity into 2027 while remaining aligned with its 2026 and 2027 capital and development plans. In response to an analyst question, he said Range had planned to use about 400,000 lateral feet of DUC inventory over 2026 and 2027 and remains on track, though it is “a few wells ahead.”
Capital returns and balance sheet remain priorities
Chief Financial Officer Mark Scucchi said Range repurchased $78 million of shares in the second quarter, bringing first-half repurchases to $105 million. The company also paid $24 million in dividends during the quarter, for a year-to-date total of $47 million, and reduced debt by $337 million in the first half.
Scucchi said the combined effect represented $489 million of year-to-date enterprise value returned to equity holders, or roughly 5.5% of Range’s market capitalization over six months. Since launching its repurchase program, Range has bought back 35.9 million shares, reducing its share count by nearly 10%, he said.
Scucchi described Range’s balance sheet as “roughly half a turn levered” and said the company is not delaying capital returns or business investments because of balance sheet needs. He also said Range’s balance sheet metrics are stronger than investment-grade peers, though the company remains rated below investment grade. In commercial discussions, Scucchi said, the credit rating has “never been a topic of discussion.”
Marketing outlook improves for NGLs and natural gas
Range raised its full-year NGL pricing guidance to a premium of $2.50 per barrel over the Mont Belvieu index, citing strong international pricing and the structure of its physical sales agreements. Degner said Range captured an NGL premium of $3.49 per barrel over Mont Belvieu in the second quarter.
The company also improved its full-year natural gas guidance to a discount of $0.35 to $0.40 per Mcf versus Henry Hub, reflecting what Degner called a strong start to the year.
Degner said U.S. exports of LNG, ethane and LPG grew sharply from year-earlier levels during the second quarter. He said LNG feed gas averaged more than 17 Bcf per day, up 17% from the same period in 2025. U.S. waterborne ethane exports were estimated at 658,000 barrels per day, up 40% year over year, and waterborne propane and butane exports exceeded 2.6 million barrels per day, up 30% year over year.
Degner said Range expects export growth to support domestic fundamentals and pricing across its products. He also pointed to additional LPG export capacity expected in early 2027 and Repauno dock capacity that Range expects to enter service in 2027 as factors supporting continued access to international markets.
Management discusses growth beyond 2027
Executives repeatedly emphasized that Range’s current plan remains on track. Scucchi said the company previously laid out a three-year plan to grow production 20% to about 2.6 Bcfe per day in 2027. He said Range estimates it can maintain that level for less than $600 million of annual drilling and completion capital, or about $0.60 per Mcfe.
In analyst questions, management said growth beyond 2027 will depend on securing a “home” for incremental production. Degner said Range could potentially continue growing at a similar rate after 2027 with similar capital investment, provided demand materializes. He cited in-basin power and data center demand, takeaway capacity and Range’s inventory depth as key factors.
Scucchi said Range has more than 30 years of Marcellus inventory and described growth as a matter of “when and how much,” depending on customer demand and margins. He said the company would not simply grow volumes and sell into the basin without confidence that production has an end market.
Range also discussed potential longer-term flexibility in midstream investments. Degner said the company could evaluate investments in gathering and compression tied to incremental supply deals, depending on the economics of those molecules compared with traditional fee-based arrangements.
Degner said Range’s 2026 capital outlook is unchanged despite some resequencing of drilling activity. He said 2027 capital should be similar to what the company has communicated, unless a larger growth opportunity requires additional investment.
About Range Resources (NYSE:RRC)
Range Resources Corporation, headquartered in Fort Worth, Texas, is an independent energy company engaged in the exploration, development and production of natural gas, oil and natural gas liquids. The company focuses its core operations on the Appalachian Basin, with a significant presence in Pennsylvania’s Marcellus Shale. Through its drilling and completion activities, Range Resources seeks to optimize production efficiency while maintaining a disciplined approach to capital allocation and cost management.
The company’s technical expertise centers on advanced horizontal drilling and hydraulic fracturing techniques, which it applies to unlock unconventional resources.
