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Range Resources Corporation (RRC)

  • Thu, Jan. 15, 4:45 PM
    • Range Resources (NYSE:RRC+2.1% AH after reducing its 2015 planned capital spending to $870M, down from $1.3B - which already had been cut 14% from 2014 levels - while targeting 20% Y/Y production growth.
    • RRC says it expects 24% total production growth for 2014 at 1.16B cfe/day of gas equivalent; Q4 production volumes were 1.27B cfe/day, of which 31% were liquids.
    • Confirms the Mariner East propane pipeline was commissioned earlier than expected during the last few weeks of December, and expects utilization to lower its overall cost of propane deliveries by ~$0.20/gal vs. 2014 and result in as much as an additional $50M/year in cash flow.
    • RRC also says its proved reserves as of year-end 2014 rose 26% Y/Y to a record high of 10.3T cfe.
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  • Mon, Jan. 12, 3:17 PM
    • Goldman Sachs upgrades a few energy stocks even as it cast a pall of gloom over most of the sector today (I, II, III), raising Chesapeake Energy (CHK -3.6%) to Buy from Neutral and Parsley Energy (PE -4.2%) to Neutral from Sell as potential "shale sale" winners.
    • Despite PE's relative vulnerability to lower oil prices because of its weak balance sheet and negative projected free cash, Goldman has more confidence that its core Permian Basin position makes it an attractive M&A target.
    • Among potential "shale scale" winners - companies that either can build positions in the core and reduce costs of capital - the firm's favorites remain EOG Resources (NYSE:EOG), Range Resources (NYSE:RRC), Pioneer Natural Resources (NYSE:PXD), Cabot Oil & Gas (NYSE:COG) and Concho Resources (NYSE:CXO).
    • However, Goldman cuts Bill Barrett (BBG -8.3%) to Sell from Neutral, seeing greater downside risk to its production in a lower oil price environment, and lowers Eclipse Resources (ECR -1.5%) to Neutral from Buy due to a persistently wide funding gap through 2017 coupled with a weak balance sheet.
  • Dec. 22, 2014, 10:45 AM
    • Natural gas prices fall 9.5% to near two-year lows at $3.133/mmBtu, in the biggest one-day percentage loss since February and the lowest intraday price since January 2013, on mild weather forecasts and inventory that is above year-ago levels.
    • Prices are now down more than 15% in three straight losing sessions and are 30% lower than the six-month high closing price of $4.489/mmBtu it hit just a month ago.
    • Weather has been unseasonably warm for December, limiting demand for home heating and allowing relatively low stockpiles to catch up to where they were a year ago and encouraging traders to sell based on the belief that supply is relatively healthy.
    • Gas producers are among the biggest early decliners: XOM -1.1%, CHK -7.3%, APC -2.6%, SWN -6%, DVN -2.2%, COP -2.3%, BP -1.5%, COG -4%, BHP -1.9%, CVX -1.3%, ECA -5.1%, EQT -4.3%, RDS.A -1.7%, UPL -12%, WPX -6.9%, EOG -1%, OXY -1.1%, RRC -6.1%, APA -2.3%, AR -3.2%, CNX -3%, QEP -4.8%, LINE -4.9%, NBL -1.6%, SM -2.6%, XEC -4.2%, PXD -2.9%, NFX -5.1%.
  • Dec. 15, 2014, 10:17 AM
    • Range Resources (RRC +3.4%) sets its 2015 capital spending budget at $1.3B, an 18% Y/Y decrease, while expecting to continue to deliver Y/Y production growth of 20%-25% due to improving capital efficiencies from its activities in the Marcellus Shale.
    • RRC also says its Utica/Point Pleasant well in Pennsylvania achieved an average 24-hour test rate of 59M cf/day; RRC believes the initial production rate equating to a 10.9M cf/day per 1K ft. of lateral is a record for any horizon drilled in the Appalachian Basin and the highest IP rate of any Utica well.
    • Separately, CEO Jeff Ventura will add Chairman to his title beginning Jan. 1, replacing John Pinkerton.
  • Jul. 28, 2014, 5:05 PM
    • Range Resources (NYSE:RRC): Q2 EPS of $0.36 misses by $0.05.
    • Revenue of $477.52M (+9.1% Y/Y) misses by $5.7M.
    • Shares +2.5% AH.
    • Press Release
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  • Jun. 10, 2014, 11:11 AM
    • Range Resources (RRC -3.1%) is sharply lower after disclosing pro forma results excluding the pending transaction with EQT Corp. (EQT -1.2%); Q1 revenues would be reduced by 4% to $437M and EPS by $0.04 to $0.16.
    • RRC expect to complete the exchange of the Conger assets in Texas for the Nora oil and gas producing properties, gathering and other assets in Virginia owned by EQT on June 16 with an effective date of Jan. 1, 2014.
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  • Jun. 2, 2014, 3:31 PM
    • Walter Energy (WLT -6.3%) shares aren't helped by the coal producer's statement that new EPA proposals aimed at controlling carbon emissions from U.S. power plants should have no material impact on the company; in fact, WLT is down more than peers: CNX +1.1%, BTU +0.1%, CLD -0.3%, ACI -2.8%, ANR -4.6%.
    • Long-term losers also will include electric companies that burn lots of coal - such as American Electric Power (AEP +0.1%), Duke Energy (DUK -0.3%), Southern Co. (SO -0.3%) and NRG Energy (NRG -0.1%) - but stiff regulations have been expected for some time.
    • Likely winners include companies that pump natural gas and those that use it as their primary fuel, such as Calpine (CPN +0.3%), and companies that operate nuclear plants that generate little carbon but have been expensive to run, such as Exelon (EXC -1%), hope that their aging plants will become more competitive.
    • A reduction in coal-fired capacity would increase utilities' demand for natural gas by 3B-10B cf/day from 22B cf/day now, potential benefiting major natural gas producers like Chesapeake Energy (CHK +2.1%), Cabot Oil & Gas (COG -0.8%) and Range Resources (RRC -0.6%).
  • Feb. 26, 2014, 11:54 AM
    • Range Resources (RRC -1.8%) is lower after reporting a 47% drop in Q4 earnings as well as declines in revenue and average realized prices.
    • Total revenue for Q4 fell 6.5% Y/Y to $428M, although sales of natural gas, natural gas liquids and oil gained 13% to $448.5M; realized prices, after adjusting for hedges, fell 10%.
    • Daily production jumped 20% Y/Y, oil production grew 14%, natural gas liquids production surged 45%, and natural gas production increased 15%.
    • Targets 2014 production growth of 20%-25% Y/Y; Q1 output is expected at 1.05B cfe/day, with liquids comprising 30%-35%.
    • Sets 2014 capital spending budget at $1.52B.
    • Morgan Stanley raises its price target to $98 from $90 given RRC's track record of superior exploration success, conservative guidance and strong management team.
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  • Nov. 4, 2013, 3:57 PM
    • Occidental Petroleum (OXY +2.1%) is upgraded to Overweight from Equal Weight with a $108 price target, up from $93, at Barclays to reflect expected restructuring and increased optimism about drilling returns the firm expects accretive restructuring steps and improved drilling performance to lead to outperformance.
    • Meanwhile, the firm downgrades Range Resources (RRC +1.4%) to Underweight with an unchanged $71 target, believing others are producing stronger value creation metrics, suggesting those companies may have greater returns on new drilling than RRC and thus should attract higher values for future drilling.
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  • Oct. 23, 2013, 12:56 PM
    • Continental Resources (CLR -5.5%) falls sharply after Global Hunter downgrades shares to Neutral from Buy because the price has breached the firm’s $120 target.
    • Despite CLR’s “strong production growth trajectory,” the firm is no longer urging investors to accumulate shares “due to limited estimated upside.”
    • Global Hunter downgraded several other energy companies to Neutral: PDCE -4.3%, REXX -6.5%, EOX +0.2%, EPL -7.8% and OAS -0.4%.
    • The firm upgraded RRC, SFY and KOG to Buy, and KOG to Accumulate.
  • Aug. 29, 2013, 12:44 PM
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  • Jul. 11, 2013, 3:59 PM
    Range Resources' (RRC -1.6%) Q2 production rose a greater than expected 27% Y/Y on continued drilling success in the Marcellus Shale, but shares are lower because it sold the oil and gas for less than expected and, for oil, prices were flat Q/Q. Natural gas, natural gas liquids and oil price realizations averaged $5.02 per mcfe, a 6% Y/Y composite increase.
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  • May. 20, 2013, 12:03 PM
    Range Resources (RRC +1%) and Rex Energy (REXX +3.5%) are both downgraded (I, II) to Hold from Buy at Stifel Nicolaus on valuation and a more cautious outlook on near-term natural gas markets. On RRC, while the firm says the strong set of Marcellus drilling locations, solid execution, and improving financial position warrant its highest premium valuation, it would not be aggressive buyers now.
    | 1 Comment
  • Feb. 19, 2013, 2:28 PM
    Critics of Range Resources (RRC +3%) say the company, which pioneered the use of fracking in Pennsylvania’s Marcellus shale, uses bullying tactics in dealing with residents, local officials and activists. "Most companies avoid the perception of the big bad bully oil company, while Range embraces it," but such an approach could backfire, as RRC is reliant on regulatory approvals which require some level of local support.
    | 1 Comment
  • Nov. 9, 2012, 12:27 PM
    Range Resources (RRC +2%) growth targets are attainable and warrant a premium, Capital IQ says, but the firm thinks current valuations are sustainable only by a major hike in gas prices, which it doesn't see. Natural gas prices likely will remain under pressure, pinching RRC’s cash flows and returns at a time of high capital expenditures, the firm says in keeping its Sell rating on shares.
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  • Oct. 11, 2012, 10:41 AM
    Range Resources (RRC +3.2%) says Q3 production volumes exceeded the upper range of guidance, averaging 790 MMcfe/day, up 47% Y/Y and up 10% Q/Q; natural gas totaled 623.3 MMcf/day on average, 79% of total production. CEO Jeff Ventura says RRC is on track to meet its 35% production growth target for the year and was able to stay within its original capex budget.
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Company Description
Range Resources Corp is a Texas-based independent natural gas, natural gas liquids & Oil company engaged in the exploration, development and acquisition of primarily gas properties, in the Southwestern & Appalachian regions of the United States.