Range Resources (RRC) Update - August 14
Posted: Fri Aug 14, 2020 10:04 am
I am reviewing the Range Resources profile that was prepared by one of our Super Star MBAs. Anna is an SMU MBA that now lives in Denver. She has a full-time job, but still updates 6-10 company profiles for us each month.
I just checked the gas price and see that the September NYMEX futures contract for HH gas has spiked to over $2.30/MMBtu on heavy volume.
The futures contracts for December to March are now all over $3.00.
If Range's average realized gas price in 2021 is $3.00, which would also take NGLs back over $20/bbl, RRC would generate over $1.90 earnings per share and over $4.00 operating cash flow per share next year. The company's net asset value would probably move over $25/share.
We will be publishing the Range Resources profile late today. Check your email.
I just checked the gas price and see that the September NYMEX futures contract for HH gas has spiked to over $2.30/MMBtu on heavy volume.
The futures contracts for December to March are now all over $3.00.
If Range's average realized gas price in 2021 is $3.00, which would also take NGLs back over $20/bbl, RRC would generate over $1.90 earnings per share and over $4.00 operating cash flow per share next year. The company's net asset value would probably move over $25/share.
We will be publishing the Range Resources profile late today. Check your email.