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Range Resources (RRC)
:RRC
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Range Resources
(NYSE:RRC)
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Rating:78Outperform
Price Target:
$44.00
▲(23.15% Upside)
Range Resources' overall stock score is driven by strong financial performance and positive earnings call sentiment. The company benefits from robust cash flow and operational efficiency, while technical indicators support a bullish outlook. Valuation is reasonable, though the dividend yield is modest. The oil and gas industry's inherent volatility remains a risk factor.
Positive Factors
Operational Efficiency
The company's record operational efficiency in drilling and completions indicates a strong capability to optimize production processes, which can lead to sustained cost advantages and improved margins over time.
Cash Generation
Exceeding revenue expectations and generating significant free cash flow supports ongoing investments and shareholder returns, enhancing long-term financial stability and growth potential.
Environmental Achievements
Achieving net zero emissions and reducing methane intensity demonstrates commitment to sustainability, potentially improving regulatory standing and appeal to environmentally conscious investors.
Negative Factors
Natural Gas Pricing Volatility
Ongoing volatility in natural gas prices can impact revenue stability and profitability, posing a risk to financial performance if price fluctuations are unfavorable.
Potential Oversupply Concerns
Concerns about oversupply in the region could pressure prices and margins, affecting the company's ability to maintain profitability and competitive positioning.
Revenue and Profit Margin Volatility
Past volatility in financial metrics indicates potential instability, which could challenge consistent growth and profitability if not managed effectively.
Range Resources (RRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.63B
Dividend Yield1.01%
Average Volume (3M)2.90M
Price to Earnings (P/E)15.3
Beta (1Y)0.69
Revenue Growth23.88%
EPS Growth20.55%
CountryUS
Employees565
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.57
Shares Outstanding236,935,800
10 Day Avg. Volume3,643,944
30 Day Avg. Volume2,900,688
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 Cap1.20
Enterprise Value/Revenue3.62
Enterprise Value/Gross Profit10.52
Enterprise Value/Ebitda9.12
Forecast
1Y Price Target
$42.13Price Target Upside17.91% Upside
Rating ConsensusHold
Number of Analyst Covering16
EPS Forecast (FY)2.87
Revenue Forecast (FY)$3.00B
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 sale of natural gas, natural gas liquids (NGLs), and crude oil. The company's revenue model is significantly driven by the production and sale of these hydrocarbons, with natural gas typically being the largest contributor to its earnings. The company operates under a cost-efficient production framework, which allows it to maintain profitability even in fluctuating market conditions. Additionally, Range Resources benefits from strategic partnerships and long-term contracts with various midstream companies, which facilitate the transportation and processing of its products. The company's revenue is also influenced by commodity price fluctuations, production volumes, and operational efficiency, as well as market demand for energy resources.
Range Resources Earnings Call Summary
Earnings Call Date:Oct 28, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for Range Resources, highlighted by strong operational performance, financial strength, and growth in production. While there are challenges in finalizing long-term supply agreements and uncertainties in the global LPG market, the company's strategic focus on efficiency, shareholder returns, and market trends supports a positive sentiment.Q3-2025 Updates
Positive Updates
Strong Operational Performance
Range Resources reported consistent well results, free cash flow, and steady activity levels. The company is on track with its capital guidance for the year, having already invested $491 million out of a planned $650 million to $680 million.
Production Growth and Future Plans
Range expects production to grow to approximately 2.3 Bcf equivalent per day in Q4, with a target of 2.6 Bcf equivalent per day by 2027, marking a 20% increase from current levels.
Positive Natural Gas and NGL Market Trends
The U.S. exported record volumes of LNG in Q3, and Range anticipates strong future demand in both natural gas and NGL markets, with export capacities expected to more than double by 2031.
Financial Strength and Shareholder Returns
Range has repurchased $177 million in shares and paid dividends of nearly $65 million year-to-date, while reducing net debt by $175 million since year-end. The company maintains a strong financial position.
Efficient Operations and Cost Management
Cash operating expenses for Q3 were $0.11 per Mcfe, and the company continues to see efficiencies in the field, maintaining a low reinvestment rate.
Negative Updates
Uncertainty in Long-term Supply Agreements
Range Resources has not yet finalized long-term supply agreements, with discussions still ongoing, especially in the context of in-basin demand and potential projects.
Challenges in Infrastructure and Market Dynamics
The completion and commissioning of necessary infrastructure remain critical for future growth, and there is ongoing uncertainty in global LPG markets due to political and international dynamics.
Company Guidance
In the Range Resources Third Quarter 2025 Earnings Call, the company reiterated its commitment to its growth plans, highlighting that all-in capital for the quarter was $190 million, producing 2.2 Bcf equivalent per day. Year-to-date capital investment reached $491 million, aligning with the full-year guidance of $650 million to $680 million. Range Resources has achieved operational savings through returning to pad sites and efficient infrastructure use, aiming for production growth to approximately 2.3 Bcf equivalent per day in Q4 2025 and 2.6 Bcf equivalent per day by 2027. The company emphasized its competitive advantages, such as low reinvestment rates and significant capital returns to shareholders, while also focusing on expanding infrastructure to meet increasing demand in various markets including LNG. Cash operating expenses were reported at $0.11 per Mcfe, and the company showcased strong cash flow management with $177 million in stock repurchases and $65 million in dividends year-to-date. Additionally, the call highlighted the prospects for the natural gas and NGL markets, outlining significant demand growth and export capacity, as well as the strategic benefits of Range's marketing and transportation capabilities.Range Resources Financial Statement Overview
Summary
Range Resources demonstrates strong financial health with improving revenue and profitability metrics, a balanced capital structure, and robust cash flow generation. The company has shown solid revenue growth, improved profit margins, and efficient cash flow management, although the inherent volatility of the oil and gas industry poses a risk.Income Statement
Range Resources has shown a solid revenue growth rate of 3.13% in the TTM, recovering from previous declines. The gross profit margin improved to 32.88%, and the net profit margin increased to 19.83%, indicating enhanced profitability. The EBIT and EBITDA margins are strong at 25.79% and 38.93%, respectively, showcasing efficient operations. However, the industry remains volatile, which could impact future performance.78
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 0.33, reflecting a more balanced capital structure. Return on equity is healthy at 14.13%, indicating effective use of equity. The equity ratio stands at 58.41%, showing a stable financial position. Despite improvements, the industry’s capital-intensive nature poses ongoing leverage risks.70
Positive
Cash Flow
Range Resources has demonstrated a remarkable free cash flow growth rate of 93.41% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is robust at 1.90, and the free cash flow to net income ratio is 0.87, indicating efficient cash flow management. The company is well-positioned to manage its financial obligations and invest in growth opportunities.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.87B | 2.35B | 2.54B | 5.33B | 3.58B | 1.78B |
| Gross Profit | 985.82M | 574.75M | 778.14M | 3.22B | 1.60B | 17.69M |
| EBITDA | 1.14B | 727.72M | 1.57B | 1.93B | 993.93M | -71.38M |
| Net Income | 573.78M | 266.34M | 871.14M | 1.18B | 411.78M | -711.78M |
Balance Sheet | ||||||
| Total Assets | 7.20B | 7.35B | 7.20B | 7.26B | 7.45B | 6.14B |
| Cash, Cash Equivalents and Short-Term Investments | 175.00K | 304.49M | 211.97M | 207.00K | 214.42M | 458.00K |
| Total Debt | 1.37B | 1.82B | 1.80B | 1.93B | 2.97B | 3.15B |
| Total Liabilities | 2.99B | 3.41B | 3.44B | 4.38B | 5.36B | 4.50B |
| Stockholders Equity | 4.20B | 3.94B | 3.77B | 2.88B | 2.09B | 1.64B |
Cash Flow | ||||||
| Free Cash Flow | 982.25M | 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 | -633.47M | -623.83M | -601.71M | -489.83M | -417.88M | -184.08M |
| Financing Cash Flow | -775.52M | -228.16M | -164.42M | -1.59B | -161.10M | -84.69M |
Range Resources Technical Analysis
Negative
35.73
Price Trends
37.51
Negative
36.29
Negative
36.95
Negative
Market Momentum
-0.26
Positive
38.23
Neutral
9.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RRC, the sentiment is Negative. The current price of 35.73 is below the 20-day moving average (MA) of 38.13, below the 50-day MA of 37.51, and below the 200-day MA of 36.95, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 38.23 is Neutral, neither overbought nor oversold. The STOCH value of 9.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $12.12B | 13.34 | 8.58% | 4.16% | 7.55% | -34.40% | |
78 Outperform | $8.63B | 15.29 | 14.18% | 1.01% | 23.88% | 20.55% | |
70 Neutral | $10.22B | 44.20 | 2.26% | 2.97% | -8.07% | -87.88% | |
68 Neutral | $4.76B | 34.01 | 2.76% | 3.99% | -13.92% | -68.34% | |
67 Neutral | $10.86B | 19.96 | 7.65% | ― | 17.05% | 1028.81% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
59 Neutral | $6.35B | 97.35 | 2.86% | ― | 35.41% | ― |
* Energy Sector Average
RRC
Range Resources
35.73
1.91
5.65%
CRK
Comstock Resources
21.69
5.60
34.80%
OVV
Ovintiv
39.24
1.41
3.73%
MUR
Murphy Oil
32.58
4.46
15.86%
AR
Antero Resources
34.85
3.26
10.32%
PR
Permian Resources
14.41
0.89
6.58%
Range Resources Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Range Resources Secures $4 Billion Credit Facility
Neutral
Oct 2, 2025
On October 2, 2025, Range Resources Corporation entered into an amended and restated revolving credit agreement with JPMorgan Chase Bank and other lenders, featuring a $4.0 billion credit facility with a $3.0 billion borrowing base and $2.0 billion in lender commitments, maturing on October 2, 2030. This agreement, secured by Range’s assets and guaranteed by its subsidiaries, includes provisions for investment grade ratings, borrowing terms, and covenants that limit financial activities, potentially impacting Range’s financial flexibility and operational strategy.
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.