- Range Resources (RRC -1.8%) is lower despite earning an upgrade to Conviction Buy from Neutral with a $47 price target at Goldman Sachs, which highlights the company's exposure to gas and natural gas liquids, underappreciated production growth and valuation.
- Relative to other gassy E&Ps, RRC is more favorably exposed to Henry Hub and NGL prices, where the firm sees near-term upside, and less exposed to local Appalachia prices.
- Goldman also says RRC’s recent acquisition of Louisiana assets adds ability to flex production between Appalachia and Louisiana to mitigate risk of pipeline delays and/or regional price differences.
- The firm adds that RRC’s EV/EBITDA multiple reflects a below-historical premium, particularly on 2018 estimates despite continued superior resource life.