Range Resources (RRC) Price Targets - July 22
Posted: Fri Jul 22, 2022 1:44 pm
TipRanks: "On July 22, 2022 Piper Sandler analyst Mark Lear lowered the firm's price target on Range Resources to $44 from $45 and keeps an Overweight rating on the shares. It has been a volatile six weeks in energy with recession fears and cost inflation weighing on the group, but with the sector "de-rating faster than the pullback in crude," the setup is "broadly favorable" for exploration and production heading into Q2 earnings, Lear tells investors in a research note."
At the time of this post, RRC was trading at $29.84.
My updated current valuation is $48.00.
RRC is a large-cap "gasser". Only 2.3% of their production is crude oil.
Based on my forecast, Range should generate over $1.8 billion of free cash flow this year. In addition to paying off a lot of debt, the Company is aggressively buying back their stock.
Range has an outstanding marketing team. If we have a cold winter, they will probably get much higher realized natural gas and NGL prices on the spot market than I am using in my forecast model for Q4 and Q1 2023.
At the time of this post, RRC was trading at $29.84.
My updated current valuation is $48.00.
RRC is a large-cap "gasser". Only 2.3% of their production is crude oil.
Based on my forecast, Range should generate over $1.8 billion of free cash flow this year. In addition to paying off a lot of debt, the Company is aggressively buying back their stock.
Range has an outstanding marketing team. If we have a cold winter, they will probably get much higher realized natural gas and NGL prices on the spot market than I am using in my forecast model for Q4 and Q1 2023.