Range Resources (RRC) Update - Feb 5

[dan_s]

I've already decided to remove Antero Resources (AR) from the Sweet 16. For now, I will be keeping RRC in the portfolio at least until I can find an good replacement. AR and RRC are both trading well below net asset value, but "gassers" will remain out of favor in 2020 and both companies should "hunker down" to maintenance mode until gas and NGL prices improve. I am working on the RRC forecast model now and it will be posted to the EPG website this afternoon. - Dan

Range Announces 2020 Capital Budget and 2019 Reserves Update

FORT WORTH, Texas, Jan. 06, 2020 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (NYSE: RRC) today announced a 2020 capital budget of $520 million, which is expected to maintain daily production at approximately 2.3 Bcfe. Additionally, Range announced that year-end 2019 reserves increased to 18.2 Tcfe.

Highlights –

All-in 2020 capital budget of $520 million maintains production at ~2.3 Bcfe per day
Similar inventory of drilled uncompleted lateral footage expected at year-end 2020 as year-end 2019, supporting the option of a similar capital program in 2021 and beyond
Well costs expected to average less than $625 per lateral foot in 2020
2019 capital spending is currently estimated to be $728 million, approximately $28 million less than the original budget
Fourth quarter 2019 production expected to be near the high end of prior 2.33 to 2.35 Bcfe per day guidance
Year-end proved reserves increase to 18.2 Tcfe, greater than 95% from Marcellus Shale
Year-end SEC PV10 valuation of $7.6 billion equates to over $17 per share, net of debt

Six Wall Street firms published new reports on RRC in January, 2020. Their price targets range from $3.00 to $8.00.