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Range Resources Corp RRC

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Range Maintains Capital Discipline in Robust Industry Environment During Q2

Stephen Ellis Sector Strategist

Analyst Note

| Stephen Ellis |

Range’s second quarter essentially met PitchBook consensus expectations of cash flow per share of $0.71 with $0.70, as the firm benefited from materially higher gas and natural gas liquids pricing. After updating our model, our fair value estimate increases slightly to $9.50 due to better near-term natural gas liquids pricing, while our no-moat rating is unchanged. Range’s gathering costs are expected to increase slightly to a midpoint of $1.45 per million cubic feet equivalent due to its priced-linked natural gas liquids contracts. In turn, realized natural gas liquids pricing is expected to be over $30 a natural gas liquid barrel in the second half of 2021 compared to about $18 per barrel in the fourth quarter of 2020.

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Company Profile

Business Description

Fort Worth-based Range Resources is an independent exploration and production company with that focuses entirely on its operations in the Marcellus Shale in Pennsylvania. At year-end 2020, Range's proved reserves totaled 17.2 trillion cubic feet equivalent, with net production of 2.2 billion cubic feet equivalent per day. Natural gas accounted for 70% of production.

Contact
100 Throckmorton Street, Suite 1200
Fort Worth, TX, 76102
T +1 817 870-2601
Sector Energy
Industry Oil & Gas E&P
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2019
Stock Type Distressed
Employees 533

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