Range Resources (RRC) on the macro view - July 9
Posted: Sat Jul 09, 2022 10:32 am
Here is a good article about Range Resources (RRC), which has been in the Sweet 16 since 2006.
https://www.bizjournals.com/pittsburgh/ ... ampaign=yh
RRC closed at $25.62 on July 8. My current valuation is $47.00.
Range is on a pace to generate over $1.7 billion of free cash flow from operations this year.
Range will announce Q2 results on Monday, July 25 after the markets close.
> I expect their Adjusted Net Income to beat the current First Call EPS estimate of $1.14 and I expect them to report operating cash flow of approximately $2.15/share.
> Since 2020 the Company has used free cash flow to payoff a lot of debt and they have been able to restructure their remaining senior debt a much lower interest rates. Range has no near-term debt problems.
> This year they started a stock repurchase program that should reduce outstanding shares by up to 10%.
> With a much stronger balance sheet, I expect Range to start paying dividends in 2023.
> If they get realized natural gas prices of $4.50/mcf in 2023, Range should generate over $1.7 billion of free cash flow next year.
https://www.bizjournals.com/pittsburgh/ ... ampaign=yh
RRC closed at $25.62 on July 8. My current valuation is $47.00.
Range is on a pace to generate over $1.7 billion of free cash flow from operations this year.
Range will announce Q2 results on Monday, July 25 after the markets close.
> I expect their Adjusted Net Income to beat the current First Call EPS estimate of $1.14 and I expect them to report operating cash flow of approximately $2.15/share.
> Since 2020 the Company has used free cash flow to payoff a lot of debt and they have been able to restructure their remaining senior debt a much lower interest rates. Range has no near-term debt problems.
> This year they started a stock repurchase program that should reduce outstanding shares by up to 10%.
> With a much stronger balance sheet, I expect Range to start paying dividends in 2023.
> If they get realized natural gas prices of $4.50/mcf in 2023, Range should generate over $1.7 billion of free cash flow next year.