Range Resources (RRC) is one of my all-time great picks. I added it to the Sweet 16 in 2005 when it was around $3/share. They have a first class management team and HUGE potential reserves. Below is an example of why they are a "Core Holding" in the Sweet 16:
From Q1 report:
Range has focused its marketing efforts on developing new markets outside the Appalachian basin and expects to continue securing firm transportation arrangements to serve these markets. Range's firm transportation strategy is designed to (i) secure transportation owned by Range or our customers at relatively low cost, (ii) permit uninterrupted flow of our production and (iii) allow Range to receive a fair price for our products.
To support this strategy, Range has diversified its natural gas pricing among ten different indices, with 85% to 90% of the 2014 expected volumes tied to currently favorable indices. Range has been able to diversify all aspects of the sales process, and not rely heavily on any one customer or transportation outlet. This strategy is also evidenced by our three ethane solutions, with two projects fully operational, and the final project, Mariner East, expected to be operational in 2015. Combined, they provide geographic diversity, with end markets for ethane in Canada, Europe and Mt. Belvieu. Pricing is also diversified, and when all three projects are operational, are expected to yield a 25% revenue increase for ethane, compared to leaving the ethane in the gas stream, net of all transportation and processing costs.
Range has focused its drilling activity and marketing efforts in southwest Pennsylvania, where there are five major interstate pipelines. These pipelines were built to bring gas north from Texas, Oklahoma, Louisiana, and other southern states to serve the population and industrial centers in the northeast. Over the next two years, these pipelines are expected to be re-engineered to become bi-directional. With bi-directional capability, gas should flow north during winter months when local demand is 25 to 30 Bcf per day, and flow southeast, south and west during non-winter months, when local demand is only 8 to10 Bcf per day. Range has secured firm transportation on many of these pipelines in order to move gas to more favorable markets during all but the coldest months. We developed 25 new customers in 2013 in new markets, and have established 14 new customers to date in 2014. Range has added three firm transportation arrangements delivering approximately 175 Mmcf of takeaway capacity starting in April 2014. A portion of this capacity will be released to other operators while Range builds production at these delivery points. In the interim, this unused capacity will add approximately $0.07 per mcfe to our transportation costs for the second and third quarters of 2014. In addition, we recently added additional firm transportation capacity for 2017 and 2018.