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Range Resources Corp (RRC)
NYSE:RRC
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Range Resources
(NYSE:RRC)56Neutral
Positive Factors
Financial Performance
RRC reported positive financial results exceeding expectations across all key financial metrics due to stronger realized gas prices.
Production Growth
Range Resources is no longer an ex-growth story with plans for volume growth in the coming years without significant increases in spending.
Negative Factors
Cost Efficiency
Overall operating cost guidance for 2025 was slightly higher than prior estimates, impacting the company's cost efficiency.
Range Resources (RRC) vs. S&P 500 (SPY)
Market Cap
$8.96B
Dividend Yield0.86%
Average Volume (3M)2.85M
Price to Earnings (P/E)34.0
Beta (1Y)0.99
Revenue Growth-7.57%
EPS Growth-69.25%
CountryUS
Employees548
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)1.09
Shares Outstanding241,330,870
10 Day Avg. Volume3,591,214
30 Day Avg. Volume2,845,027
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.84
Price to Cash Flow (P/CF)9.10
P/FCF Ratio19.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$41.58Price Target Upside9.83% Upside
Rating ConsensusHold
Number of Analyst Covering21
Range Resources Business Overview & Revenue Model
Company DescriptionRange Resources Corporation (RRC) is a leading independent natural gas and oil company, primarily involved in the exploration and production of natural gas, natural gas liquids (NGLs), and oil. The company operates primarily in the Appalachian Basin in the United States, with a significant focus on the Marcellus Shale, one of the largest and most productive natural gas fields in North America. Range Resources is committed to delivering sustainable energy solutions while emphasizing safety, environmental stewardship, and community engagement.
How the Company Makes MoneyRange Resources generates revenue through the exploration, development, and production of natural gas, NGLs, and crude oil. The company primarily earns money by selling these commodities to a variety of customers, including utilities, industrial users, and other energy companies. Revenue is influenced by the market prices of natural gas and oil, production volumes, and the company's ability to manage operational costs efficiently. Range Resources also engages in hedging activities to manage commodity price risks, contributing to financial stability. Strategic partnerships and joint ventures in the Appalachian Basin can enhance production capabilities and expand market access, further supporting revenue growth.
Range Resources Financial Statement Overview
Summary
Range Resources demonstrates operational efficiency and a solid equity base, yet faces challenges in maintaining revenue and profit growth. The balance sheet is stable with moderate leverage, and cash flows indicate robust cash generation. While there are strengths in operational margins and cash flow, the company needs to address declining net profit margins and revenue volatility for improved financial performance.Income Statement
The company shows volatile revenue patterns with a recent dip from $5.34 billion to $2.42 billion. Gross profit margin stands at 100%, indicating no cost of goods sold, but net profit margin has dropped to 11.02% from 34.12% a year ago, highlighting reduced profitability. The EBIT margin remains strong at 87.41%, suggesting efficient core operations, though EBITDA margin fell to 25.20% from 63.48%, indicating higher non-cash expenses or other operational challenges.56
Neutral
Balance Sheet
The balance sheet reveals a healthy equity position with an equity ratio of 53.57%. The debt-to-equity ratio is 0.46, indicating moderate leverage. ROE decreased significantly to 6.77% from 23.13%, reflecting lower returns on equity. However, the company maintains a solid stockholders' equity base, suggesting stability.68
Positive
Cash Flow
Free cash flow growth was strong in the most recent year compared to the previous year, driven by consistent operating cash flow of $977.89 million. The operating cash flow to net income ratio is high at 3.67, indicating strong cash generation relative to net income. Free cash flow to net income ratio is 3.67, highlighting effective cash utilization.62
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.35B | 2.55B | 5.34B | 3.58B | 1.78B | Gross Profit |
| 574.75M | 1.14B | 3.23B | 1.57B | -6.92M | EBIT |
| 354.14M | 926.99M | 2.86B | 1.31B | -217.35M | EBITDA |
| 736.14M | 1.62B | 1.96B | 1.00B | -130.11M | Net Income Common Stockholders |
| 266.34M | 871.14M | 1.18B | 411.78M | -711.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 304.49M | 211.97M | 207.00K | 214.42M | 458.00K | Total Assets |
| 7.35B | 7.20B | 6.63B | 6.66B | 6.14B | Total Debt |
| 1.82B | 1.79B | 1.86B | 2.73B | 3.08B | Net Debt |
| 1.52B | 1.58B | 1.86B | 2.52B | 3.08B | Total Liabilities |
| 3.41B | 3.44B | 3.75B | 4.57B | 4.50B | Stockholders Equity |
| 3.94B | 3.77B | 2.88B | 2.09B | 1.64B |
| Cash Flow | Free Cash Flow | |||
| 318.00M | 371.66M | 1.38B | 375.51M | -163.75M | Operating Cash Flow |
| 944.51M | 977.89M | 1.86B | 792.95M | 268.68M | Investing Cash Flow |
| -623.83M | -601.71M | -489.83M | -417.88M | -184.08M | Financing Cash Flow |
| -228.16M | -164.42M | -1.59B | -161.10M | -84.69M |
Range Resources Technical Analysis
Positive
37.86
Price Trends
37.70
Positive
35.28
Positive
33.83
Positive
Market Momentum
-0.17
Positive
49.24
Neutral
37.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RRC, the sentiment is Positive. The current price of 37.86 is below the 20-day moving average (MA) of 38.30, above the 50-day MA of 37.70, and above the 200-day MA of 33.83, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 49.24 is Neutral, neither overbought nor oversold. The STOCH value of 37.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RRC.
Range Resources Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.81B | 6.51 | 17.40% | 2.02% | 23.47% | 0.80% | |
79 Outperform | $29.87B | 111.56 | 1.12% | 1.29% | 3.00% | -90.88% | |
73 Outperform | $11.36B | 202.33 | 0.81% | ― | -4.22% | -77.20% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% | |
56 Neutral | $8.96B | 34.00 | 6.77% | 0.86% | -7.57% | -69.25% | |
48 Neutral | $4.30B | 9.01 | -2.21% | ― | -4.26% | -105.72% |
* Energy Sector Average
Performance Comparison
RRC
Range Resources
37.86
5.40
16.64%
CNX
CNX Resources
29.93
8.76
41.38%
EQT
EQT
50.00
13.01
35.17%
MTDR
Matador Resources
46.43
-16.10
-25.75%
AR
Antero Resources
36.52
9.65
35.91%
Range Resources Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: 0.96% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
Range Resources demonstrated strong financial and operational efficiency despite low natural gas prices, with record free cash flow and significant debt reduction. However, cautious growth projections and the delay in expanding production highlight a measured approach to market conditions.Highlights
Record Free Cash Flow Amid Low Gas Prices
Range Resources generated $453 million in free cash flow in 2024, despite challenging natural gas prices, enabling share repurchases, dividend distributions, and debt reduction.
Operational Efficiency and Low Capital Intensity
The company drilled 59 laterals with an average horizontal length over 14,000 feet, achieving significant drilling efficiency gains and setting records for lateral footage.
Strong NGL Premiums
Range achieved the highest NGL premiums in company history in 2024, driven by international market sales of ethane, propane, and butane.
Balance Sheet Strength
Over the past three years, Range reduced net debt by over $1.3 billion and returned $678 million to shareholders, demonstrating financial discipline and strength.
Lowlights
Low Natural Gas Prices in 2024
The company faced a challenging environment with low commodity prices throughout 2024, affecting revenue potential.
Limited Immediate Growth
Despite having the capacity to grow production sooner, Range opted to delay more significant growth until 2027, maintaining a cautious outlook.
Company Guidance
During Range Resources' fourth-quarter 2024 earnings call, the company provided detailed guidance for 2025, outlining plans to maintain an efficient operational program with two drilling rigs and one completion crew. The capital budget for 2025 is set between $650 to $690 million, with $530 million allocated for maintenance capital and $70 to $100 million for drilling and completion to support future growth. The production is projected to modestly grow to approximately 2.2 Bcfe per day. Over the next three years, Range plans to increase production by approximately 400 million cubic feet equivalent per day, reaching about 2.6 Bcfe per day by 2027. This growth is supported by new transport and processing capacity agreements, with capital requirements expected to remain between $650 to $700 million annually. The company anticipates maintaining a reinvestment rate below 50% at a $3.75 natural gas price level, with a breakeven price of approximately $2 for NYMEX natural gas. Additionally, Range has planned to utilize incremental processing capacity at the MPLX Harmon Creek facility and secure natural gas transportation capacity to the Midwest and Gulf Coast regions, enhancing their ability to meet growing demand while maintaining operational flexibility and strong financial health.Range Resources Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Range Resources Appoints Christian Kendall to Board
Positive
Feb 27, 2025
On February 27, 2025, Range Resources Corporation announced the appointment of Christian S. Kendall to its Board of Directors. Mr. Kendall, with over 30 years of experience in the oil and gas industry, will serve on the company’s Governance and Nominating and ESG and Safety Committees. His extensive background, including leadership roles at Denbury Inc. and Noble Energy, is expected to contribute to Range’s strategic development of its Marcellus Shale position, enhancing shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.