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Range Resources Surpasses Industry Gains: What Should Investors Know?
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Key Takeaways
RRC outperformed peers with a 5.5% gain, beating AR's 3.3% rise and the sector's 20.7% decline in six months.
RRC expects 2025 EPS growth of 38.3% and 14.3% higher revenues to $3.2 billion.
The 2025 free cash flow forecast exceeds $450M, with upside to $1B at $4.50/MMBtu natural gas prices.
Shares of Range Resources Corporation (RRC - Free Report) have gained 5.5% in the past six months, outperforming the oil-energy sector’s decline of 20.7% and the Zacks S&P 500 composite’s rise of 3.6%. The company has a market capitalization of $9.3 billion.
RRC also outpaced its natural gas peer Antero Resources (AR - Free Report) , which advanced 3.3%. However, EQT Corporation (EQT - Free Report) delivered a stronger performance, gaining 17.9% over the same period.
Image Source: Zacks Investment Research
Positive Outlook on RRC’s Growth Trajectory
The Zacks Consensus Estimate for RRC’s 2025 earnings per share indicates a year-over-year increase of 38.3%. The consensus estimate for revenues is pegged at $3.2 billion, suggesting a 14.3% year-over-year improvement.
The company’s earnings grew 34.3% in the last five years, better than the industry average of 26.1%.
Long-term earnings growth is expected to be 40.8%, better than the industry average of 20.5%. RRC has an impressive Growth Score of B. This style score helps analyze the growth prospects of a company.
Average Target Price for RRC Suggests Upside
Based on short-term price targets offered by 22 analysts, the Zacks average price target is $42.18 per share. The average suggests an 8.26% upside from the last closing price.
Image Source: Zacks Investment Research
Range Resources is currently trading at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.01X. This represents a discount compared with the broader industry average of 11.07X.
Image Source: Zacks Investment Research
Is it worth paying for the upstream energy company? Before reaching an investment conclusion, let us analyze RRC’s fundamentals and overall business environment.
Factors to Consider
Range Resources possesses more than 30 years of high-quality, undrilled Marcellus inventory, supported by approximately 28 million lateral feet of drilling potential as of the end of 2024. This resource base, concentrated in the core of Southwest Pennsylvania, is capable of generating strong economic returns even in low-price environments.
More than 30 years of this inventory breaks even at natural gas prices below $2.50/MMBtu, with some assets viable under $2.00/MMBtu. The inventory is further augmented by optionality in the Utica/Point Pleasant and Upper Devonian formations, offering a multi-decade drilling runway and resource diversity.
Range Resources has consistently delivered free cash flow through various commodity price environments. Between 2021 and 2024, the company generated a cumulative $3.2 billion in free cash flow. In 2025, even at conservative assumptions of $3/MMBtu for natural gas, free cash flow is forecast to exceed $450 million, with upside potential above $1 billion at $4.50/MMBtu. The company operates with a capital reinvestment rate below 50%, which enables it to grow production by approximately 20% through 2027 while returning capital to shareholders.
Range Resources trades at a notably low forward valuation, with a 2026E EV/EBITDA multiple of 6.5X, placing it well below both sector peers and broader equity indices. Additionally, its 2025 forecast free cash flow yield of 11% surpasses that of most industries, including consumer staples and technology.
The company’s low capital intensity, driven by peer-leading well costs and an efficient development model, allows for sustained value creation even under modest commodity price scenarios. Furthermore, the valuation of proved reserves only incorporates about 10% of Range Resources’ total undeveloped Marcellus inventory, suggesting the market may be underestimating its full asset potential.
From an ESG standpoint, Range Resources has achieved several milestones. The company reached net-zero Scope 1 and 2 greenhouse gas emissions in 2024 and reduced methane intensity by 83% since 2019, achieving levels well below the EPA’s emissions charge threshold. It recycles more than 100% of its produced water and has an extensive leak detection program in place.
These environmental practices not only reduce regulatory and reputational risk but also support more favorable stakeholder relations and long-term license to operate in Appalachia.
Risks
A key risk for Range Resources is its heavy reliance on natural gas prices, which remain subject to significant volatility due to market dynamics, weather patterns, regulatory shifts and global energy transitions.
Although the company benefits from a diversified sales portfolio and robust hedging strategies, approximately 70% of its revenues are tied to natural gas. A sustained period of low natural gas prices, especially below the company’s estimated FCF breakeven of $2/MMBtu, can materially impact its ability to generate free cash flow, reinvest in growth, or maintain shareholder returns.
Additionally, while the company’s low-cost structure provides a cushion, future price depressions or basis blowouts in the Appalachian region can compress margins, particularly if infrastructure constraints, unplanned regulatory actions, or demand-side disruptions arise. This exposure underscores the importance of monitoring commodity market conditions and the effectiveness of ongoing hedging activities.
Image: Shutterstock
Range Resources Surpasses Industry Gains: What Should Investors Know?
Key Takeaways
Shares of Range Resources Corporation (RRC - Free Report) have gained 5.5% in the past six months, outperforming the oil-energy sector’s decline of 20.7% and the Zacks S&P 500 composite’s rise of 3.6%. The company has a market capitalization of $9.3 billion.
RRC also outpaced its natural gas peer Antero Resources (AR - Free Report) , which advanced 3.3%. However, EQT Corporation (EQT - Free Report) delivered a stronger performance, gaining 17.9% over the same period.
Image Source: Zacks Investment Research
Positive Outlook on RRC’s Growth Trajectory
The Zacks Consensus Estimate for RRC’s 2025 earnings per share indicates a year-over-year increase of 38.3%. The consensus estimate for revenues is pegged at $3.2 billion, suggesting a 14.3% year-over-year improvement.
The company’s earnings grew 34.3% in the last five years, better than the industry average of 26.1%.
Long-term earnings growth is expected to be 40.8%, better than the industry average of 20.5%. RRC has an impressive Growth Score of B. This style score helps analyze the growth prospects of a company.
Average Target Price for RRC Suggests Upside
Based on short-term price targets offered by 22 analysts, the Zacks average price target is $42.18 per share. The average suggests an 8.26% upside from the last closing price.
Image Source: Zacks Investment Research
Range Resources is currently trading at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.01X. This represents a discount compared with the broader industry average of 11.07X.
Image Source: Zacks Investment Research
Is it worth paying for the upstream energy company? Before reaching an investment conclusion, let us analyze RRC’s fundamentals and overall business environment.
Factors to Consider
Range Resources possesses more than 30 years of high-quality, undrilled Marcellus inventory, supported by approximately 28 million lateral feet of drilling potential as of the end of 2024. This resource base, concentrated in the core of Southwest Pennsylvania, is capable of generating strong economic returns even in low-price environments.
More than 30 years of this inventory breaks even at natural gas prices below $2.50/MMBtu, with some assets viable under $2.00/MMBtu. The inventory is further augmented by optionality in the Utica/Point Pleasant and Upper Devonian formations, offering a multi-decade drilling runway and resource diversity.
Range Resources has consistently delivered free cash flow through various commodity price environments. Between 2021 and 2024, the company generated a cumulative $3.2 billion in free cash flow. In 2025, even at conservative assumptions of $3/MMBtu for natural gas, free cash flow is forecast to exceed $450 million, with upside potential above $1 billion at $4.50/MMBtu. The company operates with a capital reinvestment rate below 50%, which enables it to grow production by approximately 20% through 2027 while returning capital to shareholders.
Range Resources trades at a notably low forward valuation, with a 2026E EV/EBITDA multiple of 6.5X, placing it well below both sector peers and broader equity indices. Additionally, its 2025 forecast free cash flow yield of 11% surpasses that of most industries, including consumer staples and technology.
The company’s low capital intensity, driven by peer-leading well costs and an efficient development model, allows for sustained value creation even under modest commodity price scenarios. Furthermore, the valuation of proved reserves only incorporates about 10% of Range Resources’ total undeveloped Marcellus inventory, suggesting the market may be underestimating its full asset potential.
From an ESG standpoint, Range Resources has achieved several milestones. The company reached net-zero Scope 1 and 2 greenhouse gas emissions in 2024 and reduced methane intensity by 83% since 2019, achieving levels well below the EPA’s emissions charge threshold. It recycles more than 100% of its produced water and has an extensive leak detection program in place.
These environmental practices not only reduce regulatory and reputational risk but also support more favorable stakeholder relations and long-term license to operate in Appalachia.
Risks
A key risk for Range Resources is its heavy reliance on natural gas prices, which remain subject to significant volatility due to market dynamics, weather patterns, regulatory shifts and global energy transitions.
Although the company benefits from a diversified sales portfolio and robust hedging strategies, approximately 70% of its revenues are tied to natural gas. A sustained period of low natural gas prices, especially below the company’s estimated FCF breakeven of $2/MMBtu, can materially impact its ability to generate free cash flow, reinvest in growth, or maintain shareholder returns.
Additionally, while the company’s low-cost structure provides a cushion, future price depressions or basis blowouts in the Appalachian region can compress margins, particularly if infrastructure constraints, unplanned regulatory actions, or demand-side disruptions arise. This exposure underscores the importance of monitoring commodity market conditions and the effectiveness of ongoing hedging activities.
Hence, it is advisable to exercise caution with this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.