Range Resources Corporation (RRC Quick QuoteRRC - Free Report) is expected to see earnings growth of almost 30% in 2025.

What's Favoring RRC Stock?

In its latest short-term energy outlook, the U.S. Energy Information Administration projected 2025 Henry Hub spot natural gas at $2.90 per million British thermal units (MMBtu), though it reported lower than $2.00 per MMBtu in early November. The rising price of the commodity reflects growing demand following the increasing export of liquefied natural gas. This can benefit Range Resources, an upstream energy player, which carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

RRC, which is a leading natural gas exploration and production company, has decades of low-risk drilling inventory in Appalachia, brightening its production outlook. The company has lower well costs per lateral foot than many other upstream players.

The exploration and production player also focuses on strengthening its balance sheet. Over the past several years, Range Resources has consistently reduced its net debt load. The company has the lowest emission intensity among the upstream companies in the United States.

Risks to RRC’s Business

Despite the positives, Range Resources’ overall operations are significantly exposed to extreme oil and natural gas price volatility. Other major exploration and production firms that are also exposed to commodity price volatility are ConocoPhillips (COP Quick QuoteCOP - Free Report) , Diamondback Energy, Inc. (FANG Quick QuoteFANG - Free Report) and Matador Resources Company (MTDR Quick QuoteMTDR - Free Report) .

ConocoPhillips has secured a solid production outlook on decades of drilling inventories across its low-cost and diversified upstream asset base. The resource base represents the company’s strong footprint in prolific acres in the United States, comprising Eagle Ford shale, the Permian Basin and Bakken shale.

Diamondback Energy, a leading pure-play Permian operator, reported ongoing enhancements in the average productivity per well in the Midland Basin. Thus, the exploration and production company will likely continue witnessing increased production volumes.

Matador Resources has a strong footprint in the prolific Wolfcamp and Bone Spring plays in the Delaware Basin.