Range Resources (RRC) Update - Oct 25

[dan_s]

I have just finished reviewing the updated profile on RRC, which was prepared by one of our outstanding MBAs. Anna is a graduate of the SMU MBA program and she does an outstanding job on any project assigned to her.

I am increasing my valuation of RRC by $4.00 to $32.00. < Based on a natural gas price of $2.75/mcf for 2019. < ~53% of their gas for 2019 is already hedged at $2.83/mcf.
1. 47% of RRC's revenues in Q3 were from liquid sales.
2. The company's outstanding marketing group is getting premium pricing for their NGLs.
3. RRC's earnings have beaten the First Call estimates for five straight quarters and I think they do it again in Q4.
4. RRC now generates FREE CASH FLOW, which is being used to pay down debt.
5. RRC has double digit production and proven reserves LOCKED IN for at least another decade.

If the Wall Street Gang starts looking for high quality gassers this winter, RRC will be at their Top of the list.