NYSE:RRC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Range Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.4%

RRC

1.7%

US Oil and Gas

1.0%

US Market


1 Year Return

-80.3%

RRC

-21.2%

US Oil and Gas

6.7%

US Market

Return vs Industry: RRC underperformed the US Oil and Gas industry which returned -21.2% over the past year.

Return vs Market: RRC underperformed the US Market which returned 6.7% over the past year.


Share holder returns

RRCIndustryMarket
7 Day-4.4%1.7%1.0%
30 Day-25.1%-3.7%-1.8%
90 Day-37.9%-8.3%-1.8%
1 Year-80.1%-80.3%-18.3%-21.2%9.1%6.7%
3 Year-90.6%-90.8%-5.7%-14.1%46.1%36.6%
5 Year-94.6%-94.8%-21.8%-32.6%66.9%48.6%

Price Volatility Vs. Market

How volatile is Range Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Range Resources undervalued based on future cash flows and its price relative to the stock market?

0.2x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: RRC ($3.47) is trading above our estimate of fair value ($0.69)

Significantly Undervalued: RRC is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: RRC is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: RRC is unprofitable, so we can't compare its PE Ratio to the US market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate RRC's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: RRC is good value based on its PB Ratio (0.2x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Range Resources expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: RRC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: RRC is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: RRC's loss is forecast to worsen by 0% next year.

Revenue vs Market: RRC's revenue is expected to decline over the next 3 years (-3.9% per year).

High Growth Revenue: RRC's revenue is forecast to decline over the next 3 years (-3.9%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: RRC's Return on Equity is forecast to be low in 3 years time (2.7%).


Next Steps

Past Performance

How has Range Resources performed over the past 5 years?

-44.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RRC is unprofitable, and losses have increased over the past 5 years at a rate of -44.9% per year.

Accelerating Growth: Unable to compare RRC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RRC is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (22.6%).


Return on Equity

High ROE: RRC has a negative Return on Equity (-38.24%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: RRC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RRC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Range Resources's financial position?


Financial Position Analysis

Short Term Liabilities: RRC's short term assets ($459.1M) do not cover its short term liabilities ($613.6M)

Long Term Liabilities: RRC's short term assets (459.1M) do not cover its long term liabilities (4.9B)


Debt to Equity History and Analysis

Debt Level: RRC's debt to equity ratio (90.7%) is considered high

Reducing Debt: RRC's debt to equity ratio has reduced from 93.7% to 90.7% over the past 5 years.


Balance Sheet

Inventory Level: RRC has a high level of physical assets or inventory.

Debt Coverage by Assets: RRC's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable RRC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RRC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 15% per year.


Next Steps

Dividend

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

2.31%

Expected Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.5%markettop25%3.8%industryaverage3.9%forecastin3Years2.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: RRC's dividend (2.31%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: RRC's dividend (2.31%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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

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


Current Payout to Shareholders

Dividend Coverage: RRC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: RRC's dividends in 3 years are forecast to be thoroughly covered by earnings (14.2% payout ratio).


Next Steps

Management

What is the CEO of Range Resources's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average management tenure


CEO

Jeff Ventura (61yo)

7.8yrs

Tenure

US$8,711,188

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 2008. Mr. Ventura served as an Exe ...


CEO Compensation Analysis

Compensation vs. Market: Jeff's total compensation ($USD8.71M) is above average for companies of similar size in the US market ($USD2.71M).

Compensation vs Earnings: Jeff's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

7.8yrs

Average Tenure

59yo

Average Age

Experienced Management: RRC's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

62yo

Average Age

Experienced Board: RRC's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: RRC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$69,70029 Aug 19
Margaret Dorman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares20,500
Max PriceUS$3.40
BuyUS$56,48213 Aug 19
Mark Scucchi
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares12,954.61
Max PriceUS$4.36
BuyUS$49,99913 Aug 19
Mark Scucchi
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares8,791.42
Max PriceUS$5.69
SellUS$17,78702 Aug 19
Mark Scucchi
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares3,126
Max PriceUS$5.69
SellUS$33,24702 Aug 19
David Poole
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares5,843
Max PriceUS$5.69
BuyUS$175,39007 May 19
Steven Gray
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$8.77
BuyUS$100,34401 May 19
Mark Scucchi
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares11,100
Max PriceUS$9.04
BuyUS$97,99712 Mar 19
James Funk
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$9.80
BuyUS$218,92404 Mar 19
Steven Gray
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$10.95

Ownership Breakdown


Management Team

  • Jeff Ventura (61yo)

    President

    • Tenure: 7.8yrs
    • Compensation: US$8.71m
  • Dori Ginn (61yo)

    Senior VP

    • Tenure: 10.1yrs
  • David Poole (57yo)

    Senior VP

    • Tenure: 11.3yrs
    • Compensation: US$2.21m
  • Alan Farquharson (61yo)

    Senior Vice President of Reservoir Engineering & Economics

    • Tenure: 12.7yrs
  • Kenneth Roy

    Senior Vice President

    • Tenure: 2.4yrs
  • Dennis Degner (46yo)

    Senior VP & COO

    • Tenure: 1.5yrs
    • Compensation: US$2.06m
  • Mark Scucchi (41yo)

    Senior VP & CFO

    • Tenure: 1.4yrs
    • Compensation: US$1.28m
  • Laith Sando

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Alan Engberg

    Vice President of Liquids Marketing

    • Tenure: 0yrs

Board Members

  • Chris Helms (65yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$599.98k
  • James Funk (69yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$630.79k
  • Margaret Dorman (55yo)

    Director

    • Tenure: 0.3yrs
  • Steffen Palko (68yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$599.98k
  • Anthony Dub (69yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$599.98k
  • Steve Gray (60yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$268.54k
  • Brenda Cline (58yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$599.98k
  • Jeff Ventura (61yo)

    President

    • Tenure: 7.8yrs
    • Compensation: US$8.71m
  • Greg Maxwell (62yo)

    Independent Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$1.02m

Company Information

Range Resources Corporation's company bio, 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
  • Market Cap: US$850.275m
  • Shares outstanding: 245.04m
  • Website: https://www.rangeresources.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RRCNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1980
RAXDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1980
0KTWLSE (London Stock Exchange)YesCommon StockGBUSDJun 1980
RRCO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1980

Biography

Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), and oil company. It engages in the exploration, development, and acquisition of natural gas and oil propertie ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:40
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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