Range Resources Corporation (RRC - Free Report) has witnessed upward estimate revisions for its 2020 bottom-line in the past 30 days. In fact, six out of eight analysts have revised their estimates upward. Also, this leading upstream energy player’s stock price has surged 20.4% year to date.
The company, carrying Zacks Rank #2 (Buy), has a strong footing in the prolific Appalachian Basin. In the gas-rich resource, the upstream firm has huge inventories of low-risk drilling sites that are likely to provide production for several decades. In fact, growing production has helped the company report better-than-expected results in first-quarter 2020.
Range Resources also has strong cost-control initiatives. The company’s cash unit cost of 1.93 per thousand cubic feet equivalent (Mcfe) was almost 9% lower year over year, aiding the bottom line. Importantly, the company is planning to spend roughly $430-million capital in 2020, lower than $728 million in 2019. In spite of the cut in spending, production in 2020 is expected to be around 2.3 Bcfe/D, almost flat with the 2019 levels. This reflects improving capital efficiency.
Moreover, the company is divesting non-core assets to focus more on profitable operations. Notably, since the second half of 2018, the company has executed the divestment of $1.1 billion worth of assets. Most importantly, since majority of Range Resources’ production comprises natural gas, the company is well poised to capitalize on the long-term clean energy demand.
Other Stocks to Consider
Other prospective stocks in the energy sector are Murphy USA Inc (MUSA - Free Report) , Key Energy Services, Inc. (KEGX - Free Report) and CNX Resources Corporation (CNX - Free Report) . While Murphy and Key Energy sport a Zacks Rank #1 (Strong Buy), CNX Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is likely to see earnings growth of 7% in the next five years.
Key Energy is expected to witness bottom-line growth of 97.2% in 2020.
CNX Resources has witnessed upward estimate revisions for 2020 bottom line in the past 60 days.
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