Jefferies: Range Resources' Volume Beat Outweighed by Price

In a research report published this morning by Jefferies, lowers prices and higher gathering costs should have a bigger impact on Range Resources' RRC earnings. According to Jefferies, "RRC reported q1 production of 655.5 mmcfe/d versus our 639.4 mmcfe/d estimate. The beat was primarily driven by natural gas volumes, which came in at 512.5 mmcfe/d compared to our 499.6 mmcfe/d estimate. Post-hedge realizations of $5.19/mcfe were below our $5.77/mcfe forecast. The miss was driven by lower dry gas and NGL prices of $4.01/mcfe and $46.20/ bbl, respectively, versus our $4.52/mcfe and $58.40/bbl estimates. Gathering expenses of $0.68/mcfe also missed. We were at $0.61/mcfe." Jefferies maintains its Hold rating and $61 PT on Range Resources, which closed yesterday at $55.02.