From Stifel's morning report
Oil & Gas Exploration & Production
RRC (Hold/$90.45) : Permian Traded for Nora and Cash
EQT (Buy/$108.99; TP:$117.00) : Increasing Target Price; Large Dropdown Firms Up Our Thesis of Ongoing Asset Revaluation
WLL (Buy/$73.72; TP:$80.00) : Tighter Spacing Is a Go, 1Q14 Beats
I agree that RRC is getting close to my valuation and therefore a HOLD, until we get more direction on the price of natural gas. We should know by the end of May if natural gas will be heading to $6.00 by year-end. - Dan
Stifel comments on Sweet 16
Stifel comments on Sweet 16
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Stifel comments on Sweet 16
FORT WORTH, TX--(Marketwired - Apr 30, 2014) - Range Resources Corporation (NYSE: RRC) today announced the execution of an agreement to exchange producing properties and other assets with EQT Corporation (NYSE: EQT).
Range will transfer to EQT ownership of approximately 73,000 net acres and related assets in Glasscock and Sterling Counties, Texas comprising all of Range's Conger properties, which are largely held by production. The Conger properties are currently producing approximately 28 Mmcfe per day with 62% being liquids primarily from the Cisco/Canyon. These Permian Basin properties have multiple horizontal and vertical stacked pay drilling opportunities in the Wolfcamp, Cline and Wolfberry horizons.
EQT will transfer to Range ownership of EQT's operated interest covering 138,000 net acres and their 50% interest in 1,200 miles of gathering pipelines and compression in the Nora Field of Virginia, giving Range 100% ownership of that asset. In addition, Range will receive $145 million in cash. The Nora properties Range will receive are currently producing approximately 41 Mmcf per day. These properties have multiple vertical and horizontal stacked pay drilling opportunities in the coalbed methane, conventional tight gas intervals and Devonian shale horizons. Range's 2014 capital expenditure budget will remain unchanged at $1.52 billion
Range will transfer to EQT ownership of approximately 73,000 net acres and related assets in Glasscock and Sterling Counties, Texas comprising all of Range's Conger properties, which are largely held by production. The Conger properties are currently producing approximately 28 Mmcfe per day with 62% being liquids primarily from the Cisco/Canyon. These Permian Basin properties have multiple horizontal and vertical stacked pay drilling opportunities in the Wolfcamp, Cline and Wolfberry horizons.
EQT will transfer to Range ownership of EQT's operated interest covering 138,000 net acres and their 50% interest in 1,200 miles of gathering pipelines and compression in the Nora Field of Virginia, giving Range 100% ownership of that asset. In addition, Range will receive $145 million in cash. The Nora properties Range will receive are currently producing approximately 41 Mmcf per day. These properties have multiple vertical and horizontal stacked pay drilling opportunities in the coalbed methane, conventional tight gas intervals and Devonian shale horizons. Range's 2014 capital expenditure budget will remain unchanged at $1.52 billion
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group