Range Resources (RRC) Price Targets - July 22

[dan_s]

TipRanks: "On July 22, 2022 Piper Sandler analyst Mark Lear lowered the firm's price target on Range Resources to $44 from $45 and keeps an Overweight rating on the shares. It has been a volatile six weeks in energy with recession fears and cost inflation weighing on the group, but with the sector "de-rating faster than the pullback in crude," the setup is "broadly favorable" for exploration and production heading into Q2 earnings, Lear tells investors in a research note."

At the time of this post, RRC was trading at $29.84.

My updated current valuation is $48.00.

RRC is a large-cap "gasser". Only 2.3% of their production is crude oil.

Based on my forecast, Range should generate over $1.8 billion of free cash flow this year. In addition to paying off a lot of debt, the Company is aggressively buying back their stock.

Range has an outstanding marketing team. If we have a cold winter, they will probably get much higher realized natural gas and NGL prices on the spot market than I am using in my forecast model for Q4 and Q1 2023.

[Fraser921]

They report Monday

[Fraser921]

https://ir.rangeresources.com/static-fi ... b9e098ad8c

Hedge losses have improved, pre announced

Net cash payment on derivative settlements:
Natural gas derivatives $ (367,347 )
Oil derivatives (29,858 )
NGLs derivatives (10,505 )
Total net cash payment $ (407,710 )