Range Resources downgraded to Neutral at Susquehanna in E&P sector shake-up

As previously reported, Susquehanna downgraded Range Resources (RRC) to Neutral from Positive with a price target of $34, down from $43. The firm is lowering its 2024 WTI oil and HH natural gas price assumptions to $75/bbl from $80/bbl and $3.00/mmbtu from $3.75/mmbtu, respectively, as the supply/demand balance deteriorates. With the reduction in its price deck, the firm also lowered its ratings on Range Resources and Southwestern Energy (SWN) to Neutral from Positive while citing improved capital efficiencies in its upgrade of Coterra (CTRA) to Positive. In 2024, the firm expects companies will continue with largely maintenance-level capital programs, while a focus on well productivity should drive modest production gains. The firm also expects M&A to continue and sees the potential for larger deals as the availability of bolt-on transactions dwindles, the analyst added in the sector update.