Energy Prospectus

As I have posted here many times, the Wall Street Gang never pays much attention to the "gassers" until after Labor Day. It has taken a few weeks longer this year, but I am definitely seeing more "love" for RRC. Read: https://finance.yahoo.com/news/surging- ... 02898.html

About 85% of Range's natural gas for Q3 and Q4 2018 is hedged at $2.97, so the next two quarters' results are sure to be solid and Q1 2019 is sure to be one of the best quarter in many years for this company.

RRC also sells a lot of NGLs; ~105,000 barrels per day in Q3 and expected to grow by 4,000 to 5,000 barrels per day each quarter through 2020. The NGL market is very strong in the U.S. and RRC also exports NGLs to Europe.

Range's production mix is approximately 68% natural gas, 28% NGLs and 4% crude oil.

My valuation of RRC is $28.00/share.

Range Resources - RRC (US$16.76) Overweight - US$22.00 PT
Kashy Harrison, Simmons

Forward Progress on De-Leveraging Initiatives
Positive news for RRC as the company has made some forward progress on de-leveraging initiatives via the divestiture of a 1% overriding
royalty interest for $300M, or 12x FY'19E cash flows. There aren't a sizable number of royalty transactions for comparison in the
Appalachian region; however, the transaction biases our year-end leverage D/EBITDA estimates slightly below 3.0x (from 3.4x previously)
while screening as neutral on our NAV. Notwithstanding the successful divestiture, RRC reiterated its desire to further high-grade the
portfolio through additional asset sales. Accordingly, we wouldn't be surprised at a potential Northeast Appalachian divestiture over the
next several months/quarters. Overall, positive start on the de-leveraging process that should be well received by investors.