NYSE:RRC

Stock Analysis Report

Executive Summary

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

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Has less than 1 year of cash runway

Dividend of 1.74% is not well covered by earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Unattractive dividend payer and overvalued.


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

Stable Share Price: RRC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-17.7%

RRC

-4.6%

US Oil and Gas

-1.3%

US Market


1 Year Return

-71.1%

RRC

-10.3%

US Oil and Gas

22.0%

US Market

Return vs Industry: RRC underperformed the US Oil and Gas industry which returned -4.2% over the past year.

Return vs Market: RRC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

RRCIndustryMarket
7 Day-17.7%-4.6%-1.3%
30 Day-32.2%-6.1%1.6%
90 Day-22.7%-2.8%8.9%
1 Year-70.7%-71.1%-7.0%-10.3%24.7%22.0%
3 Year-90.7%-90.9%-12.0%-20.1%49.4%39.7%
5 Year-92.7%-93.0%-13.8%-26.2%78.1%58.5%

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 compared to its fair value and its price relative to the market?

0.19x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RRC ($4.6) is trading above our estimate of fair value ($1.06)

Significantly Below Fair Value: RRC is trading above our estimate of fair value.


Price To Earnings Ratio

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 to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RRC is good value based on its PB Ratio (0.3x) compared to the US Oil and Gas industry average (1x).


Next Steps

Future Growth

How is Range Resources forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RRC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RRC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RRC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RRC's revenue is expected to decline over the next 3 years (-4.7% per year).

High Growth Revenue: RRC's revenue is forecast to decline over the next 3 years (-4.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RRC is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Range Resources performed over the past 5 years?

-46.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RRC is currently unprofitable.

Growing Profit Margin: RRC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RRC is unprofitable, and losses have increased over the past 5 years at a rate of -46.5% 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 (-13.3%).


Return on Equity

High ROE: RRC has a negative Return on Equity (-40.29%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Range Resources's financial position?


Financial Position Analysis

Short Term Liabilities: RRC's short term assets ($412.5M) do not cover its short term liabilities ($557.4M).

Long Term Liabilities: RRC's short term assets ($412.5M) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: RRC's debt to equity ratio (75.4%) is considered high.

Reducing Debt: RRC's debt to equity ratio has reduced from 94.6% to 75.4% 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: RRC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RRC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

2.45%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage4.3%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: RRC's dividend (1.74%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: RRC's dividend (1.74%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 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 covered by earnings (61.2% 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?

8.0yrs

Average management tenure


CEO

Jeff Ventura (61yo)

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 ($USD8.71M) is above average for companies of similar size in the US market ($USD2.53M).

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


Management Age and Tenure

8.0yrs

Average Tenure

59yo

Average Age

Experienced Management: RRC's management team is seasoned and experienced (8 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: RRC's board of directors are considered experienced (3.8 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$114,60011 Dec 19
Steven Gray
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceUS$3.82
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

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


Management Team

  • Jeff Ventura (61yo)

    President

    • Tenure: 8yrs
    • Compensation: US$8.71m
  • Dori Ginn (61yo)

    Senior VP

    • Tenure: 10.3yrs
  • David Poole (57yo)

    Senior VP

    • Tenure: 11.6yrs
    • Compensation: US$2.21m
  • Alan Farquharson (61yo)

    Senior Vice President of Reservoir Engineering & Economics

    • Tenure: 12.9yrs
  • Kenneth Roy

    Senior Vice President

    • Tenure: 2.7yrs
  • Dennis Degner (46yo)

    Senior VP & COO

    • Tenure: 1.8yrs
    • Compensation: US$2.06m
  • Mark Scucchi (41yo)

    Senior VP & CFO

    • Tenure: 1.7yrs
    • Compensation: US$1.28m
  • Laith Sando

    Vice President of Investor Relations

    • Alan Engberg

      Vice President of Liquids Marketing


      Board Members

      • James Funk (69yo)

        Independent Director

        • Tenure: 11.1yrs
        • Compensation: US$630.79k
      • Margaret Dorman (55yo)

        Director

        • Tenure: 0.5yrs
      • Steffen Palko (68yo)

        Independent Director

        • Tenure: 3.2yrs
        • Compensation: US$599.98k
      • Anthony Dub (69yo)

        Independent Director

        • Tenure: 25yrs
        • Compensation: US$599.98k
      • Steve Gray (60yo)

        Independent Director

        • Tenure: 1.3yrs
        • Compensation: US$268.54k
      • Brenda Cline (58yo)

        Independent Director

        • Tenure: 4.5yrs
        • Compensation: US$599.98k
      • Jeff Ventura (61yo)

        President

        • Tenure: 8yrs
        • Compensation: US$8.71m
      • Greg Maxwell (62yo)

        Independent Chairman of the Board

        • Tenure: 1.5yrs
        • 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$803.123m
      • Shares outstanding: 246.36m
      • 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 properties. It holds interests in developed and undeveloped natural gas and oil leases in the Appalachian and North Louisiana regions of the United States. As of December 31, 2018, the company owned and operated 4,900 net producing wells and approximately 878,000 net acres under lease in the Appalachian region; and 415 net producing wells and approximately 118,000 net acres under lease in the North Louisiana region. It markets and sells natural gas to utilities, marketing and midstream companies, and industrial users; petrochemical end users, NGL distributors, and natural gas processors; and oil and condensate to crude oil processors, transporters, and refining and marketing companies. The company was formerly known as Lomak Petroleum, Inc. and changed its name to Range Resources Corporation in 1998. Range Resources Corporation was founded in 1976 and is headquartered in Fort Worth, Texas. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/25 23:43
      End of Day Share Price2020/01/24 00:00
      Earnings2019/09/30
      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.