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Range Resources Corp (RRC)
NYSE:RRC
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Range Resources
(NYSE:RRC)
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Rating:74Outperform
Price Target:
$40.00
▲(8.20% Upside)
Range Resources' overall score is driven by strong financial performance and positive earnings call insights, highlighting operational efficiency and strategic growth positioning. Technical analysis and valuation are moderate, reflecting a balanced view of potential risks and opportunities.
Positive Factors
Operational Efficiency
The company's record-breaking operational efficiency in drilling and completions enhances its ability to maximize output and reduce costs, supporting long-term profitability and competitiveness in the industry.
Cash Flow Generation
Strong cash flow generation indicates effective management and operational efficiency, providing the company with the financial flexibility to invest in growth opportunities and return value to shareholders.
Environmental Achievements
The company's commitment to reducing emissions and achieving net zero status positions it favorably in an increasingly environmentally conscious market, potentially attracting ESG-focused investors and partners.
Negative Factors
Natural Gas Market Volatility
Volatility in natural gas pricing can impact revenue predictability and profitability, posing a risk to financial stability and strategic planning in the medium term.
Potential Oversupply
Potential oversupply in the Appalachian Basin could pressure prices and margins, challenging the company's ability to maintain profitability in a competitive market environment.
Historical Revenue Volatility
Past volatility in revenue and margins indicates potential instability, which could affect investor confidence and the company's ability to sustain growth during market fluctuations.
Range Resources (RRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.66B
Dividend Yield0.95%
Average Volume (3M)3.09M
Price to Earnings (P/E)18.3
Beta (1Y)0.70
Revenue Growth19.95%
EPS Growth0.94%
CountryUS
Employees565
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.66
Shares Outstanding238,191,090
10 Day Avg. Volume3,069,060
30 Day Avg. Volume3,085,693
Financial Highlights & Ratios
PEG Ratio-0.47
Price to Book (P/B)2.20
Price to Sales (P/S)3.69
P/FCF Ratio27.41
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue4.00
Enterprise Value/Gross Profit12.22
Enterprise Value/Ebitda10.90
Forecast
1Y Price Target
$42.37Price Target Upside14.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering21
Range Resources Business Overview & Revenue Model
Company DescriptionRange Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), and oil company in the United States. The company engages in the exploration, development, and acquisition of natural gas and oil properties. As of December 31, 2021, the company owned and operated 1,350 net producing wells and approximately 794,000 net acres under lease located in the Appalachian region of the northeastern United States. It markets and sells natural gas and NGLs to utilities, marketing and midstream companies, and industrial users; petrochemical end users, marketers/traders, and natural gas processors; and oil and condensate to crude oil processors, transporters, and refining and marketing companies. The company was formerly known as Lomak Petroleum, Inc. and changed its name to Range Resources Corporation in 1998. Range Resources Corporation was founded in 1976 and is headquartered in Fort Worth, Texas.
How the Company Makes MoneyRange Resources generates revenue primarily through the exploration, extraction, and sale of natural gas, natural gas liquids, and crude oil. The company's revenue model is largely driven by the sale of hydrocarbons produced from its drilling activities. Key revenue streams include the sale of natural gas, which constitutes the majority of its output, as well as the sale of oil and NGLs. The company benefits from strategic partnerships and contracts with midstream companies for transportation and processing of its products, which ensures a steady flow of income. Additionally, market prices for natural gas and oil significantly impact the company's earnings, making commodity price fluctuations a critical factor in its financial performance.
Range Resources Earnings Call Summary
Earnings Call Date:Jul 22, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call for Range Resources demonstrates strong operational and financial performance, with significant returns to shareholders and strategic positioning for future demand growth. However, there are ongoing challenges related to natural gas market volatility and potential oversupply in the Appalachian Basin. Overall, the company is optimistic about achieving its growth targets while maintaining efficiency and environmental leadership.Q2-2025 Updates
Positive Updates
Strong Operational Efficiency
Range Resources achieved a new company record by completing 812 frac stages in Q2 2025, marking a 7% increase over the previous record. The drilling team also averaged approximately 6,250 lateral feet per day, showcasing significant efficiency improvements.
Financial Returns to Shareholders
In the first half of 2025, Range repurchased $120 million in shares and paid $43 million in dividends. Year-to-date enterprise value returned to equity holders totals $646 million, equating to roughly 7% of Range's market cap.
Positive Production and Capital Guidance
Range Resources improved its capital budget and production guidance for 2025, with expectations to exceed prior production guidance, driven by efficiency gains and consistent well performance.
Strategic Positioning for Future Demand
Range Resources is positioned to benefit from projected 4-5 Bcf per day in-basin demand growth by the end of the decade, supported by their extensive, high-quality inventory and operational efficiency.
Environmental Achievements
Range Resources achieved net zero for combined Scope 1 and 2 greenhouse gas emissions and an 83% reduction in methane emissions intensity over the last five years.
Negative Updates
Challenges in Natural Gas Pricing
While the company expects an improvement in natural gas fundamentals, there is ongoing market volatility and concerns over sufficient price elasticity in response to near-term gas price fluctuations.
Potential Oversupply Concerns
Discussions around potential oversupply in the Appalachian Basin persist, with concerns about how incremental production could impact regional basis differentials.
Company Guidance
During Range Resources' Second Quarter 2025 Earnings Conference Call, the company provided guidance on several key metrics. Range Resources reported all-in capital expenditures of $154 million and generated production of 2.2 billion cubic feet equivalent per day (Bcfe/d). The company turned to sales approximately 156,000 lateral feet across 12 wells and has invested around $300 million in development and land capital in the first half of the year. This is well below the full-year budget of $650 million to $690 million, prompting a reduction in the high end of the capital guidance to $680 million. Looking ahead, Range Resources expects production to remain flat in the third quarter at 2.2 Bcfe/d, with an increase to approximately 2.3 Bcfe/d in the fourth quarter. The company achieved record operational efficiencies, with drilling averaging over 14,200 feet per well and completions executing 812 frac stages. Additionally, Range Resources highlighted its low lease operating expense of just $0.11 per Mcfe for the quarter. The company remains focused on its strategic growth plan, aiming for a 20% increase through 2027, supported by a strong balance sheet and a commitment to shareholder returns.Range Resources Financial Statement Overview
Summary
Range Resources shows a strong recovery in financial metrics, with significant improvements in profitability and cash flow. The income statement and cash flow metrics are particularly robust, though historical volatility remains a risk.Income Statement
Range Resources has demonstrated a strong recovery in its income statement metrics. The TTM data shows a significant improvement in gross profit margin (32.99%) and net profit margin (26.17%) compared to previous years. Revenue growth rate is positive at 13.22%, indicating a rebound from past declines. However, historical volatility in revenue and profit margins suggests potential risks.75
Positive
Balance Sheet
The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.03 in the TTM period, down from higher levels in previous years. Return on equity is moderate at 12.10%, showing effective use of equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.70
Positive
Cash Flow
Cash flow metrics are strong, with a substantial free cash flow growth rate of 62.24% in the TTM period. The operating cash flow to net income ratio is healthy at 1.95, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is also solid at 0.45, reflecting good cash conversion.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.78B | 2.35B | 2.55B | 5.34B | 3.58B | 1.78B |
| Gross Profit | 911.20M | 574.75M | 1.14B | 3.23B | 1.57B | -6.92M |
| EBITDA | 1.02B | 727.72M | 1.62B | 1.96B | 1.00B | -130.11M |
| Net Income | 480.13M | 266.34M | 871.14M | 1.18B | 411.78M | -711.78M |
Balance Sheet | ||||||
| Total Assets | 7.11B | 7.35B | 7.20B | 6.63B | 6.66B | 6.14B |
| Cash, Cash Equivalents and Short-Term Investments | 134.00K | 304.49M | 211.97M | 207.00K | 214.42M | 458.00K |
| Total Debt | 1.38B | 1.82B | 1.79B | 1.86B | 2.73B | 3.08B |
| Total Liabilities | 2.98B | 3.41B | 3.44B | 3.75B | 4.57B | 4.50B |
| Stockholders Equity | 4.13B | 3.94B | 3.77B | 2.88B | 2.09B | 1.64B |
Cash Flow | ||||||
| Free Cash Flow | 507.86M | 315.93M | 371.66M | 1.38B | 375.51M | -163.75M |
| Operating Cash Flow | 1.13B | 944.51M | 977.89M | 1.86B | 792.95M | 268.68M |
| Investing Cash Flow | -620.03M | -623.83M | -601.71M | -489.83M | -417.88M | -184.08M |
| Financing Cash Flow | -760.97M | -228.16M | -164.42M | -1.59B | -161.10M | -84.69M |
Range Resources Technical Analysis
Neutral
36.97
Price Trends
35.42
Positive
37.04
Negative
37.11
Negative
Market Momentum
0.74
Positive
50.05
Neutral
25.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RRC, the sentiment is Neutral. The current price of 36.97 is below the 20-day moving average (MA) of 37.24, above the 50-day MA of 35.42, and below the 200-day MA of 37.11, indicating a neutral trend. The MACD of 0.74 indicates Positive momentum. The RSI at 50.05 is Neutral, neither overbought nor oversold. The STOCH value of 25.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RRC.
Range Resources Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $8.66B | 18.30 | 11.99% | 0.95% | 19.95% | 0.94% | |
72 Outperform | $10.29B | 7.92 | 12.86% | 4.76% | 16.37% | 21.22% | |
71 Outperform | $9.49B | 16.34 | 5.75% | 3.16% | -13.07% | -68.16% | |
71 Outperform | $3.82B | 13.89 | 5.42% | 4.43% | -18.08% | -49.36% | |
67 Neutral | $9.76B | 22.59 | 6.31% | ― | 11.65% | 415.90% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
54 Neutral | $5.40B | ― | -3.18% | 0.66% | 17.60% | -385.47% |
* Energy Sector Average
RRC
Range Resources
36.97
7.35
24.81%
CRK
Comstock Resources
19.59
8.22
72.30%
OVV
Ovintiv
37.99
-1.87
-4.69%
MUR
Murphy Oil
28.78
-2.88
-9.10%
AR
Antero Resources
32.42
5.07
18.54%
PR
Permian Resources
12.61
-0.40
-3.07%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.