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Here's Why Range (RRC) is an Attractive Investment Bet Now
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Range Resources Corporation (RRC - Free Report) has witnessed upward earnings estimate revisions for 2022 and 2023 in the past seven days. So far this year, the Zacks Rank #2 (Buy) stock has gained 53.8%, outpacing the industry’s 36.4% growth.
What’s Favoring the Stock?
The price of natural gas has improved drastically in the past year. Being a leading producer of natural gas and natural gas liquid (NGL) in the United States, the massive improvement in the commodity price is a boon for Range Resources’ upstream operations.
In Appalachia, RRC has decades of low-risk drilling inventory, brightening its production outlook. The company has lower well costs per lateral foot than many other upstream players.
Range Resources has a strong focus on strengthening its balance sheet. Range Resources expects 2022 to be the fifth straight year of absolute debt reduction. On a positive note, the company has the lowest emission intensity among the upstream companies in the United States.
Chesapeake Energy is a premium natural gas operator and is well positioned to gain from the significant improvement in gas price in the past year. In the prolific gas-rich Marcellus shale play, CHK’s operation spreads across roughly 650,000 net acres, where an average of four to five rigs will be operating this year. Chesapeake Energy also has a strong presence in Haynesville and Eagle Ford shale play, making the production outlook bright. Overall, being a leading upstream energy player, CHK has more than 15 years of inventory, signifying more than 2,200 gas locations.
Enterprise Products generates stable fee-based revenues from its extensive pipeline network across more than 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products.
The midstream infrastructure provider also has storage assets that can hold more than 260 million barrels of NGL, petrochemical, refined products and crude oil. These assets can also store 14 billion cubic feet of natural gas. Moreover, Enterprise Products has $5.5 billion of major capital projects under construction that are likely to provide incremental fee-based revenues.
The positive trajectory in oil price is a boon for ExxonMobil’s upstream operations. This is because ExxonMobil has a pipeline of key projects in the Permian – the most prolific basin in the United States – and offshore Guyana.
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Here's Why Range (RRC) is an Attractive Investment Bet Now
Range Resources Corporation (RRC - Free Report) has witnessed upward earnings estimate revisions for 2022 and 2023 in the past seven days. So far this year, the Zacks Rank #2 (Buy) stock has gained 53.8%, outpacing the industry’s 36.4% growth.
What’s Favoring the Stock?
The price of natural gas has improved drastically in the past year. Being a leading producer of natural gas and natural gas liquid (NGL) in the United States, the massive improvement in the commodity price is a boon for Range Resources’ upstream operations.
In Appalachia, RRC has decades of low-risk drilling inventory, brightening its production outlook. The company has lower well costs per lateral foot than many other upstream players.
Range Resources has a strong focus on strengthening its balance sheet. Range Resources expects 2022 to be the fifth straight year of absolute debt reduction. On a positive note, the company has the lowest emission intensity among the upstream companies in the United States.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few better-ranked stocks in the energy space are Chesapeake Energy Corporation (CHK - Free Report) , Enterprise Products Partners LP (EPD - Free Report) and Exxon Mobil Corporation (XOM - Free Report) . While Chesapeake Energy sports a Zacks Rank #1 (Strong Buy), Enterprise Products and ExxonMobil carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chesapeake Energy is a premium natural gas operator and is well positioned to gain from the significant improvement in gas price in the past year. In the prolific gas-rich Marcellus shale play, CHK’s operation spreads across roughly 650,000 net acres, where an average of four to five rigs will be operating this year. Chesapeake Energy also has a strong presence in Haynesville and Eagle Ford shale play, making the production outlook bright. Overall, being a leading upstream energy player, CHK has more than 15 years of inventory, signifying more than 2,200 gas locations.
Enterprise Products generates stable fee-based revenues from its extensive pipeline network across more than 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products.
The midstream infrastructure provider also has storage assets that can hold more than 260 million barrels of NGL, petrochemical, refined products and crude oil. These assets can also store 14 billion cubic feet of natural gas. Moreover, Enterprise Products has $5.5 billion of major capital projects under construction that are likely to provide incremental fee-based revenues.
The positive trajectory in oil price is a boon for ExxonMobil’s upstream operations. This is because ExxonMobil has a pipeline of key projects in the Permian – the most prolific basin in the United States – and offshore Guyana.