Ranger Oil Corp (ROCC) Update - Sept 1

[dan_s]

My updated profile on Ranger Oil Corp. has been posted to the EPG website.

It was trading at $37.44 at the time of this post.
My current valuation is $84.00. On 8/29/2022 Neal Dingmann at Truist Financial rated ROCC a BUY with a price target of $71.00

Ranger Oil Corp. was created by the merger of Lonestar Resources into Penn Virginia, which closed on October 5, 2021. Soon after the merger the Company's name was changed and it started trading under the symbol ROCC.

I had been following Lonestar and Penn Virginia for many years, so it was easy for me to consolidate my two forecast model. The pandemic forced Lonestar to go through the Chapter 11 process that wiped out a lot of debt and allowed them to keep their oil and gas assets. Penn Virginia recapitalized in 2020 without going through Chapter 11.

Today, Ranger Oil is in great shape with a strong balance sheet and solid production growth that has them generating enough free cash flow to start paying dividends and allocate $100 million to a share repurchase program. Recent bolt-on acquisitions combined with their three-rig drilling program has the Company on a clear path to 50,000 Boepd of production within six months It now "checks all of the boxes" for promotion to our Sweet 16 Growth Portfolio.

If Harold Hamm is successful in his plan to take Continental Resources (CLR) private, Ranger Oil will take its place in the Sweet 16.

Ranger is a pure play on the South Texas Eagle Ford / Austin Chalk with lots of "running room". Ranger has over 700 horizontal development drilling locations.
> Strong Balance Sheet
> Double Digit production growth fulling funded by operating cash flow
> Lots of running room in a proven basin that has ample pipeline capacity
= A promotion to the Sweet 16