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Range Resources Corp (RRC)
NYSE:RRC
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Range Resources (RRC) AI Stock Analysis

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RRC

Range Resources

(NYSE:RRC)

Rating:68Neutral
Price Target:
$39.00
▲(7.59%Upside)
The overall score reflects strong financial performance and positive earnings call highlights, balanced against bearish technical indicators and modest valuation. The company's operational efficiencies and improved guidance offer optimism, but technical indicators and valuation metrics suggest caution.
Positive Factors
Capital Efficiency
Operational efficiencies resulted in capital investments being $10 million below plan, enhancing capital efficiency.
Debt Management
The company reduced its net debt to $1.2 billion by paying off senior notes using cash and the credit facility, strengthening its balance sheet.
Shareholder Value
RRC repurchased nearly 1.5 million shares, leaving $900 million available in the repurchase program, indicating strong shareholder value focus.
Negative Factors
Earnings Miss
Reported adj EBITDA of $321m compared to consensus of $337m.
Valuation Concerns
Analyst maintains a Hold rating on valuation despite positive results and outlook improvements.

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

Range Resources Business Overview & Revenue Model

Company DescriptionRange Resources Corporation (RRC) is a leading independent natural gas, natural gas liquids (NGLs), and oil company in the United States. Headquartered in Fort Worth, Texas, the company is primarily engaged in the exploration, development, and acquisition of natural gas and oil properties. Range Resources focuses largely on the Marcellus Shale, one of the largest natural gas fields in the U.S., spanning parts of Pennsylvania and West Virginia. The company's operations are centered on maximizing resource recovery and operational efficiency while maintaining a commitment to safety and environmental stewardship.
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:Jul 22, 2025
(Q2-2025)
|
% Change Since: 1.68%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
Range Resources reported strong operational performance and financial results, characterized by record efficiencies and improved guidance. The company is well-positioned to meet growing demand, especially with LNG and NGL exports. However, there are concerns about potential regional oversupply and infrastructure constraints. Overall, the positive aspects significantly outweigh the challenges.
Q2-2025 Updates
Positive Updates
Strong Free Cash Flow Generation
Range Resources reported another quarter of consistent well performance and efficiency gains, driving strong free cash flow. The company expects continued strong performance to drive annual production above prior guidance.
Operational Efficiencies
Range set new drilling and completions records, including averaging 6,250 lateral feet per day and executing 812 frac stages in a quarter, a 7% increase over the previous record.
Improved Capital Guidance
Year-to-date capital is tracking better than planned, allowing Range to lower the high end of its capital guidance to $680 million without altering planned operational activity.
Record High LNG Feedgas
Natural gas inventory finished the quarter down 6% from the prior year, supported by record high LNG feedgas which reached over 17 Bcf per day in the second quarter.
Expansion in NGL Exports
Range's LPG export volumes are under contracts with international pricing upside, enhancing the ability to capture consistent premium pricing and reinforcing Range's competitive positioning.
Sustainability Achievements
Range achieved net zero for combined Scope 1 and 2 greenhouse gas emissions and expanded MIQ certification to cover all Pennsylvania assets, earning an A grade.
Negative Updates
Concerns Over Regional Oversupply
Investors expressed concerns over the potential for regional oversupply in Appalachia due to high production from Range and other producers, which could negatively impact pricing.
Potential Risk of Infrastructure Constraints
There are concerns about infrastructure constraints, including midstream maintenance and LNG capacity, which could impact the ability to meet growing demand efficiently.
Company Guidance
During the Range Resources Second Quarter 2025 Earnings Conference Call, the company provided detailed guidance on its operational and financial performance, highlighting several key metrics. For Q2 2025, Range reported all-in capital expenditures of $154 million and production of 2.2 Bcf equivalent per day, with 156,000 lateral feet turned to sales across 12 wells. Year-to-date capital expenditures were approximately $300 million, prompting Range to lower the high end of its full-year capital guidance from $690 million to $680 million. The company projects annual production to exceed prior guidance, with Q3 production expected to remain flat at 2.2 Bcf equivalent per day, and Q4 production anticipated to increase to approximately 2.3 Bcf equivalent per day. Operationally, Range achieved new records in drilling and completions, averaging 6,250 lateral feet per day for drilling and executing 812 frac stages in Q2. Financially, Range allocated $53 million to share repurchases, bringing the year-to-date total to $120 million, and paid $21 million in dividends during the quarter. The company also highlighted its investment in development and land capital, totaling approximately $300 million for the first half of 2025. Looking forward, Range expects natural gas market demand to rise, driven by new U.S. LNG exports and pipeline expansions, and it plans to leverage its operational efficiencies and long-term inventory to capitalize on these opportunities.

Range Resources Financial Statement Overview

Summary
Range Resources exhibits a resilient financial position with strong cash flow generation and effective cost management. The income statement shows solid profitability metrics despite revenue growth challenges. The balance sheet indicates manageable leverage, though maintaining high equity levels is crucial for future growth.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.35B2.55B5.34B3.58B1.78B
Gross Profit574.75M1.14B3.23B1.57B-6.92M
EBITDA727.72M1.62B1.96B1.00B-130.11M
Net Income266.34M871.14M1.18B411.78M-711.78M
Balance Sheet
Total Assets7.35B7.20B6.63B6.66B6.14B
Cash, Cash Equivalents and Short-Term Investments304.49M211.97M207.00K214.42M458.00K
Total Debt1.82B1.79B1.86B2.73B3.08B
Total Liabilities3.41B3.44B3.75B4.57B4.50B
Stockholders Equity3.94B3.77B2.88B2.09B1.64B
Cash Flow
Free Cash Flow318.00M371.66M1.38B375.51M-163.75M
Operating Cash Flow944.51M977.89M1.86B792.95M268.68M
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

Technical Analysis Sentiment
Negative
Last Price36.25
Price Trends
50DMA
39.23
Negative
100DMA
37.80
Negative
200DMA
36.41
Negative
Market Momentum
MACD
-0.92
Positive
RSI
38.74
Neutral
STOCH
20.18
Neutral
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 36.25 is below the 20-day moving average (MA) of 38.22, below the 50-day MA of 39.23, and below the 200-day MA of 36.41, indicating a bearish trend. The MACD of -0.92 indicates Positive momentum. The RSI at 38.74 is Neutral, neither overbought nor oversold. The STOCH value of 20.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RRC.

Range Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$10.81B8.3414.35%4.85%37.00%44.18%
77
Outperform
$10.25B16.816.17%3.00%-14.46%-67.20%
75
Outperform
$3.72B10.017.54%4.75%-14.90%-27.53%
68
Neutral
$8.51B17.9811.99%0.94%19.95%0.94%
67
Neutral
$10.11B44.963.21%6.67%240.70%
67
Neutral
$15.28B9.736.25%5.18%4.49%-71.88%
48
Neutral
$6.02B-14.17%0.66%-1.73%-608.98%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RRC
Range Resources
36.25
4.77
15.15%
CRK
Comstock Resources
21.21
10.81
103.94%
OVV
Ovintiv
39.99
-4.69
-10.50%
MUR
Murphy Oil
26.33
-12.22
-31.70%
AR
Antero Resources
33.26
3.67
12.40%
PR
Permian Resources
13.62
-1.01
-6.90%

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.Date of analysis: Jul 24, 2025