Range Resources (RRC) Preview of Q1 Results - April 10

[dan_s]

Note for Benchmark analysts:
"1Q EPS/EBITDA adjustments. Raising our EPS/EBITDA estimate to $0.86/$402mm
from $0.54/$294mm. RRC is a beneficiary of bidweek prices ($3.46 vs spot $2.71)
and premiums earned through seasonally strong basis differentials and hedge
gains. Raising our realized natural gas price to $3.73 from $3.05."

This is a reminder that when there are big moves in the Henry Hub futures prices (what you see in the news each day) it can be misleading for valuations of the gassers because natural gas prices in the U.S. are set by regional supply/demand fundamentals.