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Range Resources Corp RRC

Morningstar Rating
$31.53 +0.15 (0.48%)
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Company Report

Range Resources Earnings: Increasing Our Valuation Based on 2024 Development Plan

No-moat Range Resources posted results in line with expectations, with production coming in a hair below the midpoint of guidance for the full year at 2.14 billion cubic feet equivalent per day, a 0.8% increase over the prior year. Management reiterated this same guidance for 2024, seeking to hold production flat over the next 12 months. We see production growing in the midsingle digits for 2024 due to the lengthening laterals on new wells. As a result of this doing more with less, we are increasing our fair value estimate to $26 from $22.

Price vs Fair Value

RRC is trading at a 21% premium.
Price
$31.39
Fair Value
$88.00
Uncertainty
High
1-Star Price
$49.10
5-Star Price
$62.20
Economic Moat
Lyfw
Capital Allocation
Wphtkgfr

Bulls Say, Bears Say

Bulls

As an early entrant into the Marcellus, Range has a big, blocky acreage position with plentiful undrilled low-cost acreage.

Bears

Range has optimistic views about its own valuation, which could lead management to buy back stock at top-of-cycle price levels.

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News

Trading Information

Previous Close Price
$31.38
Day Range
$31.3231.53
52-Week Range
$22.7437.87
Bid/Ask
$31.54 / $31.57
Market Cap
$7.61 Bil
Volume/Avg
53 / 2.9 Mil

Key Statistics

Price/Earnings (Normalized)
10.29
Price/Sales
2.95
Dividend Yield (Trailing)
1.02%
Dividend Yield (Forward)
1.02%
Total Yield
1.27%

Company Profile

Fort Worth-based Range Resources is an independent exploration and production company with that focuses entirely on its operations in the Marcellus Shale in Pennsylvania. At year-end 2023, Range's proved reserves totaled 18.1 trillion cubic feet equivalent, with net production of 2.14 billion cubic feet equivalent per day. Natural gas accounted for 69% of production.
Sector
Energy
Industry
Oil & Gas E&P
Stock Style Box
Small Core
Total Number of Employees
548

Competitors

Valuation

Metric
RRC
OXY
AR
Price/Earnings (Normalized)
10.2916.3147.69
Price/Book Value
2.012.411.11
Price/Sales
2.952.051.85
Price/Cash Flow
6.854.979.32
Price/Earnings
RRC
OXY
AR

Financial Strength

Metric
RRC
OXY
AR
Quick Ratio
0.850.510.31
Current Ratio
1.490.920.33
Interest Coverage
9.837.664.54
Quick Ratio
RRC
OXY
AR

Profitability

Metric
RRC
OXY
AR
Return on Assets (Normalized)
8.37%4.95%2.30%
Return on Equity (Normalized)
17.13%17.14%4.64%
Return on Invested Capital (Normalized)
12.92%8.25%3.52%
Return on Assets
RRC
OXY
AR
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Economic Moat
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OXY
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AR
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