Range Resources (RRC): Evaluating Valuation After Four Straight Earnings Beats and Effective Natural Gas Hedging

Range Resources (RRC) just extended its streak of outperforming earnings expectations, backed by effective natural gas hedging that is helping smooth out commodity price swings and, in turn, lifting investor confidence in the story.

See our latest analysis for Range Resources.

Even after today’s 1 day share price return of 2.82 percent, Range’s stock is still down on a 1 month share price basis. However, its 5 year total shareholder return of 399.01 percent shows the longer term momentum story remains firmly intact.

If Range’s run has you thinking about what else could surprise on execution and capital discipline, it is worth scouting other energy names through fast growing stocks with high insider ownership.

With the stock trading at a discount to analyst targets and still boasting robust multi year returns, investors now face a key question: Is Range Resources still undervalued, or are markets already pricing in its future growth?

Most Popular Narrative Narrative: 15.5% Undervalued

With the narrative fair value near 41.91 dollars versus a 35.42 dollars last close, the valuation case leans toward upside if its growth roadmap holds.

Increasing U.S. LNG export capacity coming online over the next 18 months will open additional premium international markets for Range's gas and NGLs. With Range's unique East Coast export infrastructure and supply flexibility, this can drive higher realized prices and support upward revisions to earnings and free cash flow.

Read the complete narrative.

Curious how much revenue growth, margin lift, and future earnings power this scenario really bakes in? The narrative leans on bold multi year profit compounding and a richer earnings multiple than the industry. Want to see exactly how those assumptions stack up to justify that upside fair value?

Result: Fair Value of $41.91 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, lingering regulatory uncertainty in Appalachia and the risk of local oversupply could pressure realized prices and delay the upside baked into this LNG driven narrative.

Find out about the key risks to this Range Resources narrative.

Build Your Own Range Resources Narrative

If you see the story differently, or want to dive into the numbers yourself, you can build a personalized narrative in just minutes: Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Range Resources.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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