RRC - Another impressive quarter

[dan_s]

RANGE RESOURCES CORPORATION (RRC) today announced its third quarter 2013 financial results.

Third Quarter Highlights –
•Record production of 960 Mmcfe per day, an increase of 21% over the prior-year quarter.
• Adjusted cash flow was $244 million, an increase of 29% as compared to the prior-year quarter.
• Unit costs were reduced 12% versus the prior-year quarter.
• Basin leading liquids-rich wells drilled in Pennsylvania continue to provide impressive results.
• Approximately 540,000 net acres of Range’s leasehold is in southwest Pennsylvania where the largest estimated gas in place (GIP) occurs when combining all three shale horizons.
• Range’s southwest and northeast Marcellus natural gas price realizations were $0.41 and $0.56 higher, respectively, than local pricing indices.

RRC does trade at a high multiple of cash flow BUT their acreage in the Marcellus is EXTREMELY VALUABLE and they have a lot of it. - Dan

[dan_s]

Range Resources Corp. (RRC): An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab.

My Fair Value Estimate has been increased to $90.10/share.

RRC is a "World Class" company that deserves to trade at a very high multiple. They control some of the most valuable acreage in the world's largest natural gas and NGL resource play, the Marcellus Shale. Owning RRC is one of the best ways you can keep some exposure to natural gas in your portfolio.

They have AT LEAST 20% annual production growth locked in for the next five years and probably a lot longer.