RRC

Range Resources Corp

Energy


Presented:01/29/2016
Price:$29.56
Cap:$4.92B
Current Price:$29.90
Cap:$7.24B

Presented

Date01/29/2016
Price$29.56
Market Cap$4.92B
Ent Value$8.65B
P/E RatioN/A
Book Value$18.22
Div Yield0.54%
Shares O/S166.52M
Ave Daily Vol6,479,457
Short Int17.09%

Current

Price$29.90
Market Cap$7.24B
Range Resources Corp. is an independent natural gas and oil company, which engages in the exploration, development and acquisition of natural gas and oil properties in the Appalachian and Midcontinent regions of the United States. It operates through single segment which is the exploration and production of natural gas, NGLs and oil in the United States. The company was founded in 1976 and is headquartered in Fort Worth, TX.

Publicly traded companies mentioned herein: EQT Corporation (EQT), Gulfport Energy Corporation (GPOR), Range Resources Corporation (RRC)

Highlights

Shares of Range Resources (RRC) are down over 50% from the highs of 2015, but over the past month have rallied back to $29 from ~$19. The presenter believes the recent strength has created an attractive re entry point for short sellers. He said he is “on the bullish side of neutral” on natural gas, meaning there could be slight upside potential for the commodity; however, if he were to get really bullish on gas he would prefer companies such as Gulfport and/ or EQT to Range because “Range is actually more Natural Gas Liquids (NGLs) than gas.” RRC is 8x levered at the strip on his 2017 numbers and over 18x EBITDA, which could stagnate or step down as hedges roll off and even if shares decline meaningfully they would still be expensive (at a low or mid-teens multiple),” said the presenter.

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Idea Discussion

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