Energy stock Range Resources (NYSE:RRC) is no stranger to takeover rumors. Now, with new reports about a change in the C-suite, those rumors are cropping up anew. Investors are not at all happy about it, sending Range Resources stock down nearly 9% at the time of writing.
The latest word says that current CEO Jeff Ventura is set to depart the company this June. Ahead of that, at the annual meeting in May, Dennis Degner—current COO at Range Resources—will get a bump up to the CEO slot. That, in turn, has some wondering if the company would now be amenable to a sale, thanks to the departing CEO and his mindset. After all, just last month, Pioneer Natural Resources (NYSE:PXD) was in line to potentially buy the company, though Pioneer, for its part, denied such was the case.
A recent interview with incoming CEO Dennis Degner, found in the Pittsburgh Business Times, suggests that’s not the case. Degner noted that “the next chapter of Range” begins with “…building on the successes we’ve had over the past decade.” Degner also mentioned the team that Range Resources built, suggesting that it won’t be making a move to sell off and thus potentially break up the said team. Also, selling off might well contaminate the whole “build on past successes” process, which also further restricts the notion of a complete sell-off.
Analysts are reasonably enthusiastic, for the most part, about Range Resources. Currently, analyst consensus calls it a Moderate Buy. Furthermore, as a result of today’s sell-off, Range Resources stock now has 39.94% upside potential thanks to its average price target of $32.13.
