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Range Resources Corp (RRC)
NYSE:RRC

Range Resources (RRC) AI Stock Analysis

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Range Resources

(NYSE:RRC)

Rating:68Neutral
Price Target:
$42.00
▲(8.44%Upside)
Range Resources shows strong financial performance and effective operational management, particularly in cash flow generation and cost control. While the technical analysis indicates potential for growth, the stock's high valuation may limit immediate upside. The positive sentiment from the earnings call further supports a favorable outlook, despite some short-term production challenges.
Positive Factors
Debt Management
The company drives down net-debt to the low-end of its $1.0-$1.5 billion target, creating greater flexibility and potential for an acceleration of buyback activity.
Financial Performance
RRC reported positive results, beating expectations across all key financial metrics.
Production Growth
Range Resources is the first major gas producer to indicate production growth in response to improving natural gas fundamentals.
Negative Factors
Cost Efficiency
Overall operating cost guidance was slightly higher than prior estimates, impacting the company's cost efficiency.
Profitability Concerns
The guidance for 2025 includes an increase in GPT costs, which could impact profitability.
Trade Relations
RRC's sensitivity to the trade war with China is reflected in its recent underperformance.

Range Resources (RRC) vs. SPDR S&P 500 ETF (SPY)

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 oil. The company benefits from its strategic focus on the Marcellus Shale, which is a highly productive and cost-effective region for natural gas extraction. Revenue streams are primarily driven by the market prices of these commodities, which can be influenced by supply and demand dynamics, geopolitical factors, and economic conditions. Additionally, Range Resources enters into various contracts and partnerships to manage risk and secure favorable pricing. The company also uses hedging strategies to mitigate exposure to price fluctuations, ensuring more predictable cash flows. By maintaining a low-cost operational structure and continuously optimizing its drilling and production techniques, Range Resources aims to maximize profitability and shareholder value.

Range Resources Earnings Call Summary

Earnings Call Date:Apr 22, 2025
(Q1-2025)
|
% Change Since: 16.34%|
Next Earnings Date:Jul 28, 2025
Earnings Call Sentiment Positive
Range Resources demonstrated strong operational and financial performance in Q1 2025, highlighted by efficient drilling and completion metrics, strategic debt reduction, and advantageous NGL export pricing. However, short-term production is expected to dip due to maintenance, and the company remains exposed to market volatility. Despite these challenges, the company's strategic initiatives and efficient operations suggest a positive outlook.
Q1-2025 Updates
Positive Updates
Strong Free Cash Flow and Debt Reduction
Range Resources generated $183 million in free cash flow in Q1 2025, which allowed them to pay $22 million in dividends, repurchase $68 million worth of shares, and reduce net debt by $42 million.
Operational Efficiency in Drilling and Completions
Range set a new program drilling record by averaging 5,961 feet per day and maintained a 98% success rate within their geosteered landing target. The electric frac fleet also increased the average number of stages per day.
Advantageous NGL Export Pricing
Range leveraged East Coast access for NGL exports, securing premium pricing relative to Mont Belvieu, benefiting from strong propane demand and a record 41 million barrel draw in Q1.
In-Basin Demand and Strategic Projects
Range is collaborating on a new power generation facility in Pennsylvania. The project is expected to attract data centers and industrial operations that rely on reliable and efficient energy solutions.
Negative Updates
Q2 Production Dip Due to Maintenance
Production is expected to be slightly down in Q2 2025 due to scheduled processing maintenance, although it is projected to increase in the second half of the year.
Continued Exposure to Market Volatility
Despite hedging strategies, Range Resources remains exposed to natural gas market volatility, which has seen fluctuating prices and may affect long-term financial planning.
Company Guidance
During the Range Resources First Quarter 2025 Financial Results Conference Call, the company provided guidance on several key metrics. Range Resources reported strong free cash flow, achieved through low capital intensity and class-leading drilling and completion costs, which allowed them to increase shareholder returns and reduce debt. Capital spending for the quarter was $147 million, with production reaching 2.2 Bcf equivalent per day. The company drilled approximately 250,000 lateral feet across 18 laterals, with a record drilling rate of 5,961 feet per day. Range Resources expects production to be slightly down in the second quarter due to scheduled maintenance but anticipates increased production in the second half of the year. The company's lease operating expense was $0.13 per Mcfe. Range also highlighted its marketing strategy, leveraging strong export demand and maintaining a premium pricing for NGL exports. The company is focused on generating free cash flow and advancing operational efficiencies, while also exploring opportunities for in-basin demand growth through collaborations on power generation projects in Pennsylvania.

Range Resources Financial Statement Overview

Summary
Range Resources exhibits a resilient financial position with strong cash flow generation and effective cost management. The company maintains solid profitability metrics despite revenue growth challenges. Managing leverage and enhancing equity levels remain key focus areas for sustaining long-term growth and stability.
Income Statement
72
Positive
Range Resources has demonstrated solid recovery in its income statement metrics. The TTM Gross Profit Margin is 44.5%, reflecting strong operational efficiency. The Net Profit Margin stands at 11.1%, which is a positive sign of profitability. Revenue growth has been challenging, with a decline in recent years, but the TTM EBIT Margin of 34.1% and EBITDA Margin of 29.4% indicate solid core earnings strength.
Balance Sheet
65
Positive
The balance sheet shows a Debt-to-Equity Ratio of 0.46, indicating manageable leverage levels. The Return on Equity (ROE) is modest at 6.9%, suggesting moderate profitability for shareholders. The Equity Ratio is 53.4%, reflecting a stable capital structure. However, maintaining high equity levels is crucial to support future growth and mitigate risks.
Cash Flow
78
Positive
The cash flow statement reveals a robust Free Cash Flow Growth of 48% in the TTM, indicating strong cash generation. The Operating Cash Flow to Net Income Ratio is 3.48, suggesting effective cash conversion. The Free Cash Flow to Net Income Ratio of 1.73 highlights the company's ability to generate free cash relative to net income, which is a positive indicator for financial flexibility.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.59B2.35B2.55B5.34B3.58B1.78B
Gross Profit
760.69M574.75M1.14B3.23B1.57B-6.92M
EBIT
548.27M354.14M926.99M2.86B1.31B-217.35M
EBITDA
750.33M736.14M1.62B1.96B1.00B-130.11M
Net Income Common Stockholders
271.25M266.34M871.14M1.18B411.78M-711.78M
Balance SheetCash, Cash Equivalents and Short-Term Investments
546.00K304.49M211.97M207.00K214.42M458.00K
Total Assets
6.61B7.35B7.20B6.63B6.66B6.14B
Total Debt
3.21B1.82B1.79B1.86B2.73B3.08B
Net Debt
3.21B1.52B1.58B1.86B2.52B3.08B
Total Liabilities
4.26B3.41B3.44B3.75B4.57B4.50B
Stockholders Equity
2.35B3.94B3.77B2.88B2.09B1.64B
Cash FlowFree Cash Flow
313.03M318.00M371.66M1.38B375.51M-163.75M
Operating Cash Flow
942.67M944.51M977.89M1.86B792.95M268.68M
Investing Cash Flow
-632.44M-623.83M-601.71M-489.83M-417.88M-184.08M
Financing Cash Flow
-308.76M-228.16M-164.42M-1.59B-161.10M-84.69M

Range Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price38.73
Price Trends
50DMA
36.78
Positive
100DMA
37.64
Positive
200DMA
35.04
Positive
Market Momentum
MACD
0.36
Positive
RSI
53.55
Neutral
STOCH
55.33
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 38.73 is below the 20-day moving average (MA) of 39.21, above the 50-day MA of 36.78, and above the 200-day MA of 35.04, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 53.55 is Neutral, neither overbought nor oversold. The STOCH value of 55.33 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PRPR
82
Outperform
$11.22B8.6614.35%3.05%37.00%44.18%
78
Outperform
$5.75B6.6712.64%5.23%31.71%-32.13%
NFNFG
70
Outperform
$7.41B186.811.30%2.51%7.14%-90.91%
RRRRC
68
Neutral
$9.26B34.726.96%0.85%11.88%-43.44%
ARAR
67
Neutral
$12.00B53.743.21%6.67%240.70%
58
Neutral
$7.35B3.36-4.49%5.60%0.82%-49.15%
CRCRK
52
Neutral
$7.16B-14.17%0.66%-1.73%-608.98%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RRC
Range Resources
38.73
1.37
3.67%
CRK
Comstock Resources
24.04
11.88
97.70%
NFG
National Fuel Gas Company
82.01
27.80
51.28%
AR
Antero Resources
38.39
3.02
8.54%
PR
Permian Resources
14.03
-1.15
-7.58%
CHRD
Chord Energy
99.55
-64.21
-39.21%

Range Resources Corporate Events

Executive/Board ChangesShareholder Meetings
Range Resources Holds Annual Stockholders Meeting
Neutral
May 15, 2025

On May 14, 2025, Range Resources Corporation held its Annual Meeting of Stockholders, where key decisions were made, including the election of seven directors for a one-year term. Additionally, stockholders approved the executive compensation policies and ratified Ernst & Young LLP as the independent accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (RRC) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Range Resources stock, see the RRC Stock Forecast page.

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.