Energy Prospectus

I will have the forecast updated and posted under the Sweet 16 Tab late today. Saturday is a work day during earnings season.
Dan

First Quarter Highlights –
•Record daily production of 876 Mmcfe per day, an increase of 34% over prior-year quarter
• Cash flow was $219 million, an increase of 34% as compared to the prior-year quarter, despite lower prices
• Adjusted non-GAAP cash flow of $1.36 per share exceeds average First Call consensus estimates by 3 cents
• Adjusted non-GAAP earnings of $0.33 per share exceeds average First Call consensus estimates by 4 cents
• Unit costs decline 10% as compared to the prior-year quarter
• Liquids-rich Marcellus in southwest Pennsylvania continues to provide impressive results
• Refinanced higher cost debt with completion of a $750 million senior subordinated notes offering at 5%
• Asset sale for $275 million closed April 1st

The upstream E&P business is all about production and proven reserve growth. Keep in mind that RRC is the closest thing we have to a "gasser" in the Sweet 16. Their earnings and cash flows get a HUGE boost from increasing NG prices. Check this out.

Commenting on the announcement, Jeff Ventura, Range’s President and CEO, said, “We accomplished a great deal so far in 2013. Our 34% production increase coupled with the 10% reduction in unit costs reflects the high quality of our asset base and exceptional performance by the entire Range team. The $750 million note offering and the $275 million asset sale strengthened our financial position and lowers our borrowing cost. We continue to fine tune our drilling and completion process in our core plays and we are seeing improved well performance and greater capital efficiency. We are well on track to achieve our production growth target of 20% to 25% for 2013. More importantly, we believe that we have line-of-sight production growth of 20% to 25% for many years. This growth will be led by our approximately one million net acre leasehold position in Pennsylvania. The strong growth, coupled with high returns, low cost and low reinvestment risk position us well to drive substantial per share value for years to come.”

Range Resources (RRC): An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab. Our adjusted Fair Value Estimate for the stock can be found at the bottom of the model.

RRC deserves to trade at a very high multiple. They hold over a million acres in the Marcellus Shale, which is North America's #1 natural gas resource play.

RRC is one of America's greatest success stories. I added it to the Sweet-16 in 2003 and the share price is up more than 3,000% since then.