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Here's Why You Should Hold On to Range Resources Stock Right Now
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Key Takeaways
RRC is likely to see handsome y/y earnings growth in 2025, aided by rising natural gas demand and prices.
The company boasts low-cost drilling in Appalachia and continues to reduce its net debt load.
RRC's selective M
Range Resources Corporation (RRC - Free Report) is expected to see year-over-year earnings growth of 40.4% 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 $4.12 per million British thermal units (MMBtu), significantly higher than last year’s $2.19 per MMBtu. The rising price of the commodity reflects growing demand following the increasing export of liquefied natural gas. This can benefit Range Resources since it is a leading natural gas explorer and producer.
RRC, which carries a Zacks Rank #3 (Hold) at present, 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. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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
Range Resources maintains a disciplined approach to mergers and acquisitions, driven by the belief that its existing asset base, characterized by high quality and long production life, sets a high bar for any additions. Management has emphasized that any acquisition must match or exceed the quality and capital efficiency of its current inventory to be considered. While this cautious approach is smart, it also means the company may miss out on growth opportunities that come through mergers or acquisitions.
RRC’s overall operations are significantly exposed to extreme oil and natural gas price volatility. Other major exploration and production firms that are exposed to commodity price volatility are ConocoPhillips (COP - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) and Matador Resources Company (MTDR - 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 COP’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, FANG 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. Over the past seven days, MTDR has not witnessed any earnings estimate revisions for 2025.
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Here's Why You Should Hold On to Range Resources Stock Right Now
Key Takeaways
Range Resources Corporation (RRC - Free Report) is expected to see year-over-year earnings growth of 40.4% 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 $4.12 per million British thermal units (MMBtu), significantly higher than last year’s $2.19 per MMBtu. The rising price of the commodity reflects growing demand following the increasing export of liquefied natural gas. This can benefit Range Resources since it is a leading natural gas explorer and producer.
RRC, which carries a Zacks Rank #3 (Hold) at present, 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. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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
Range Resources maintains a disciplined approach to mergers and acquisitions, driven by the belief that its existing asset base, characterized by high quality and long production life, sets a high bar for any additions. Management has emphasized that any acquisition must match or exceed the quality and capital efficiency of its current inventory to be considered. While this cautious approach is smart, it also means the company may miss out on growth opportunities that come through mergers or acquisitions.
RRC’s overall operations are significantly exposed to extreme oil and natural gas price volatility. Other major exploration and production firms that are exposed to commodity price volatility are ConocoPhillips (COP - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) and Matador Resources Company (MTDR - 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 COP’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, FANG 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. Over the past seven days, MTDR has not witnessed any earnings estimate revisions for 2025.