- 2025 Capital Efficiency: $674M invested in capital with 2.24 Bcf/day production, achieving 2.3 Bcf/day in Q4 2025 at $183M all-in capital.
- Drilling Performance: 15 laterals drilled at 14,800 ft avg. length, completing 3,800 frac stages with 9.7 stages/day efficiency in 2025.
- 2026 Capital Outlook: $650–700M budget, including $500M maintenance, $120–140M growth, and $15–35M land/infrastructure, targeting 2.6 Bcf/day production by end-2026.
- Financial Returns: $1.3B cash flow (pre-WC) and $650M free cash flow in 2025, funding $231M share buybacks and $86M dividends, reducing net debt by $186M.
- Export Momentum: LNG exports rose 10% QoQ to 17 Bcf/day in Q4 2025, while waterborne ethane exports surged 40% YoY to 622,000 barrels/day.
Operational Efficiencies
Range achieved significant operational efficiencies in 2025, with completion efficiencies approaching 10 frac stages per day per crew. The company drilled 69 laterals with an average horizontal length of 14,800 feet, exceeding 1 million lateral feet drilled. The supply chain team also completed the annual RFP for services process, resulting in pricing for 2026 drilling and completions materials and services that are flat to slightly lower than 2025 levels. As Dennis Degner mentioned, "We've built a low capital-intensive business with 1.5 drilling rigs and 1.5 frac crews, allowing us to generate free cash flow and thoughtful wage of growth through the next couple of years."
2026 Outlook
Range's production profile for 2026 is expected to be similar to prior years, with a step-up in the second half of the year due to the commissioning of gathering and processing expansions. The company plans to continue an operationally efficient program, running a single full-time super-spec drilling rig paired with a second rig utilized throughout the second half of the year. The all-in capital budget for 2026 is $650 million to $700 million, consisting of $500 million of maintenance D&C capital, $120 million to $140 million of D&C growth capital, $15 million to $35 million in land for targeted acreage, and $15 million to $25 million for software and production facility upgrades.
Valuation
With a P/E Ratio of 14.15 and an EV/EBITDA of 8.77, Range Resources appears to be reasonably valued. Analysts estimate next year's revenue growth at 10.6%, which suggests that the company's current valuation multiples may be justified. Additionally, the company's Free Cash Flow Yield is 9.99%, indicating a strong ability to generate cash for shareholders. The ROE of 15.87% and ROIC of 12.8% also demonstrate the company's ability to generate returns on equity and invested capital.
Return of Capital
Range Resources has a history of returning capital to shareholders, with $86 million in dividends and $231 million in share repurchases in 2025. The company expects to increase the quarterly dividend by $0.01 per share or 11% at the next announcement. The company's robust inventory and relatively low capital intensity provide a differentiated foundation for generating through-cycle returns for investors.