company background image
RRC

Range Resources NYSE:RRC Stock Report

Last Price

US$32.17

Market Cap

US$7.7b

7D

1.5%

1Y

117.5%

Updated

09 Aug, 2022

Data

Company Financials +
RRC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance2/6
Financial Health2/6
Dividends3/6

RRC Stock Overview

Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), and oil company in the United States.

Range Resources Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Range Resources
Historical stock prices
Current Share PriceUS$32.17
52 Week HighUS$37.44
52 Week LowUS$12.37
Beta2.15
1 Month Change25.57%
3 Month Change16.90%
1 Year Change117.51%
3 Year Change641.24%
5 Year Change82.68%
Change since IPO835.76%

Recent News & Updates

Aug 07

Range Resources Is A Cash Flow Generation Machine

Range Resources reported an outstanding cash flow generation. Net-debt/EBITDAX reduced to 1.2x and the buyback program is ongoing. A dividend is likely to be paid out from Q3-2022. Two weeks ago - on July 25th, 2022 - natural gas player Range Resources (RRC) announced its Q2-2022 earnings. Results were quite outstanding and better than expected, with the stock gaining 8% on the same day and 14% in the three days post announcement. In this article, I will provide an overview of the financial and operating results and I will explain my BUY recommendation. As some readers might know, this is not my first article on Range Resource: in April 2022 I analyzed the Q1-2022 results while in March 2022 I published another article where you can find a general overview of the company. Range Resources is up 72% year-to-date The stock is currently trading at $30.74 per share, quite in line with the trading price of my last article ($30.99/share), and the market capitalization is $7.4 billion. Range Resources is up 97% year-on-year and 72% year-to-date with the 54-week low being $12.72/share (August 20th, 2021) and the 52-week high being $37.02/share, recorded on June 7th, 2022. RRC data by YCharts Impressive Q2-2022 results driven by higher prices Total revenues after hedging were $1.22bn, up 182% versus the $0.43bn of the same quarter of the previous year. Going into more detail, revenues from the sale of natural gas, NGLs and oil were $1.35 bn, up 118% versus the $0.61 in Q2-2021 while sales generated by the brokered natural gas also saw an increase, from $61 M in Q2-2021 to $106 M in Q2-2022. On the other side, the impact of hedging was -$239 M, quite in line with the previous year. The increase in revenues was almost exclusively driven by higher realized prices (+121% year-on-year, pre-hedging) and slightly offset by a ca 1% reduction in delivered volumes. Indeed, the daily production of NatGas was 1.44 Bcf/d (exactly like in Q2-2021), while NGLs production dropped by 4% YoY to 97 kbbl/d and the crude oil production decreased by 8% YoY to 8 kbbl/d. Realized prices post hedging saw a weighted average increase of $1.99/mcfe, or 65%. Range Resources 10-Q Overall operating expenses have increased by 13% YoY, from $592 M to $668 M with "transportation, processing and compression" accounting for 48% of total OpEx ($320 M in Q1-2022, up 13% YoY). Despite production being in line with the previous year, transportation and processing cost increased mostly due to the impact of higher NGLs prices which led to higher electricity and fuel costs. Other relevant cost items were D&A (13% of total OpEx) and G&A (5% of total OpEx). The large increase in revenues and the slightly higher costs mean that Range Resources was finally able to generate a positive net income of $452 M, showing a clear change in performance versus the losses recorded in the past (-$156 M in Q2-2021 and -$456 M in Q1-2022). Cash flow generation and leverage are improving Cash flows from operations saw a large increase going from $174 M in Q2-2021 to $324 M in the current quarter (+86%). The increase in total CFFO is even more impressive if we look at the first six months of the year, with cash flow generated from operations reaching $731 M in H1-2022, +158% versus the $283 M in H1-2021. During Q2-2022, Range Resources reduced the total outstanding debt by $217 M through the retirement of the 5% and 5.875% senior notes due in 2022. Overall, at the end of Q2-2022, the outstanding debt amounts to $2.4 bn leading to a net-debt/EBITDAX ratio of 1.2x with Range Resources' top management expecting to further reduce the leverage in the next months. Significant shareholders' return via buyback and dividends During the previous quarter, Range Resources announced the intention to carry out a $500 million buyback program to support the stock price which the management believes to be intrinsically undervalued. During Q1-2022, 0.6 million shares were purchased at an average price of $27/share while, in Q2-2022, the buyback became stronger with 4.5 million shares purchased at an average price of $28.85/share. In the next months, additional shares will have to be bought for a total equity value of $354 M.

Jul 25
Range Resources Corporation's (NYSE:RRC) Intrinsic Value Is Potentially 62% Above Its Share Price

Range Resources Corporation's (NYSE:RRC) Intrinsic Value Is Potentially 62% Above Its Share Price

How far off is Range Resources Corporation ( NYSE:RRC ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

RRCUS Oil and GasUS Market
7D1.5%-1.9%0.3%
1Y117.5%49.4%-13.5%

Return vs Industry: RRC exceeded the US Oil and Gas industry which returned 49.5% over the past year.

Return vs Market: RRC exceeded the US Market which returned -13% over the past year.

Price Volatility

Is RRC's price volatile compared to industry and market?
RRC volatility
RRC Average Weekly Movement9.8%
Oil and Gas Industry Average Movement8.9%
Market Average Movement7.9%
10% most volatile stocks in US Market17.2%
10% least volatile stocks in US Market3.2%

Stable Share Price: RRC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: RRC's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1976527Jeff Venturahttps://www.rangeresources.com

Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), and oil company in the United States. The company engages in the exploration, development, and acquisition of natural gas and oil properties. As of December 31, 2021, the company owned and operated 1,350 net producing wells and approximately 794,000 net acres under lease located in the Appalachian region of the northeastern United States.

Range Resources Fundamentals Summary

How do Range Resources's earnings and revenue compare to its market cap?
RRC fundamental statistics
Market CapUS$7.71b
Earnings (TTM)US$526.35m
Revenue (TTM)US$4.80b

14.7x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RRC income statement (TTM)
RevenueUS$4.80b
Cost of RevenueUS$1.77b
Gross ProfitUS$3.03b
Other ExpensesUS$2.50b
EarningsUS$526.35m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.20
Gross Margin63.11%
Net Profit Margin10.97%
Debt/Equity Ratio119.5%

How did RRC perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

4%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is RRC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RRC?

Other financial metrics that can be useful for relative valuation.

RRC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.1x
Enterprise Value/EBITDA8.2x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does RRC's PE Ratio compare to its peers?

RRC PE Ratio vs Peers
The above table shows the PE ratio for RRC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.9x
APA APA
3.5x-22.6%US$10.7b
MUR Murphy Oil
10.1x-8.4%US$5.2b
AR Antero Resources
11.9x7.7%US$11.4b
MGY Magnolia Oil & Gas
6.2x-2.1%US$4.8b
RRC Range Resources
14.7x18.9%US$7.7b

Price-To-Earnings vs Peers: RRC is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the peer average (7.9x).


Price to Earnings Ratio vs Industry

How does RRC's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Earnings vs Industry: RRC is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the US Oil and Gas industry average (9.4x)


Price to Earnings Ratio vs Fair Ratio

What is RRC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RRC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.7x
Fair PE Ratio21.1x

Price-To-Earnings vs Fair Ratio: RRC is good value based on its Price-To-Earnings Ratio (14.7x) compared to the estimated Fair Price-To-Earnings Ratio (21.1x).


Share Price vs Fair Value

What is the Fair Price of RRC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RRC ($32.17) is trading below our estimate of fair value ($50.79)

Significantly Below Fair Value: RRC is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Range Resources forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


18.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RRC's forecast earnings growth (18.9% per year) is above the savings rate (1.9%).

Earnings vs Market: RRC's earnings (18.9% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: RRC's earnings are forecast to grow, but not significantly.

Revenue vs Market: RRC's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: RRC's revenue is forecast to decline over the next 3 years (-0.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RRC's Return on Equity is forecast to be high in 3 years time (34.2%)


Discover growth companies

Past Performance

How has Range Resources performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-4.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RRC has a large one-off loss of $150.7M impacting its June 30 2022 financial results.

Growing Profit Margin: RRC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RRC has become profitable over the past 5 years, growing earnings by -4.9% per year.

Accelerating Growth: RRC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RRC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (174.3%).


Return on Equity

High ROE: Whilst RRC's Return on Equity (27.17%) is high, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Range Resources's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RRC's short term assets ($669.4M) do not cover its short term liabilities ($2.0B).

Long Term Liabilities: RRC's short term assets ($669.4M) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: RRC's net debt to equity ratio (119.5%) is considered high.

Reducing Debt: RRC's debt to equity ratio has increased from 68% to 119.5% over the past 5 years.

Debt Coverage: RRC's debt is well covered by operating cash flow (52.5%).

Interest Coverage: RRC's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is Range Resources's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.99%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RRC's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: RRC's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (4.08%).


Stability and Growth of Payments

Stable Dividend: RRC's dividend payments have been volatile in the past 10 years.

Growing Dividend: RRC's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (3.7%), RRC's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (9.4%), RRC's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

12.9yrs

Average management tenure


CEO

Jeff Ventura (64 yo)

14.25yrs

Tenure

US$7,542,954

Compensation

Mr. Jeffrey L. Ventura, also known as Jeff, has been the Chief Executive Officer of Range Resources Corporation since January 1, 2012 and has been its President since May 20, 2008. He is Chief Executive Of...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD7.54M) is about average for companies of similar size in the US market ($USD8.25M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: RRC's management team is seasoned and experienced (12.9 years average tenure).


Board Members

Experienced Board: RRC's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RRC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Range Resources Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Range Resources Corporation
  • Ticker: RRC
  • Exchange: NYSE
  • Founded: 1976
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$7.713b
  • Shares outstanding: 239.76m
  • Website: https://www.rangeresources.com

Number of Employees


Location

  • Range Resources Corporation
  • 100 Throckmorton Street
  • Suite 1200
  • Fort Worth
  • Texas
  • 76102
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/09 00:00
End of Day Share Price2022/08/09 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.