| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 18.83 | -50 |
| Intrinsic value (DCF) | 14.27 | -62 |
| Graham-Dodd Method | 17.06 | -55 |
| Graham Formula | 0.95 | -97 |
Range Resources Corporation (NYSE: RRC) is a leading independent natural gas, natural gas liquids (NGLs), and oil exploration and production company headquartered in Fort Worth, Texas. Operating primarily in the Appalachian Basin, the company holds approximately 794,000 net acres under lease and manages 1,350 net producing wells as of December 2021. Range Resources focuses on low-cost, high-margin natural gas production, serving utilities, midstream companies, industrial users, and petrochemical end markets. With a strong operational footprint in the Marcellus Shale—one of the most prolific natural gas plays in the U.S.—the company benefits from long reserve life and efficient extraction techniques. Range Resources has demonstrated resilience in volatile energy markets, leveraging its strategic asset base and disciplined capital allocation. As the energy sector transitions toward cleaner fuels, RRC’s natural gas-weighted portfolio positions it favorably for long-term demand growth in LNG exports and power generation.
Range Resources presents a compelling investment case due to its low-cost Appalachian gas production, strong free cash flow generation, and disciplined capital strategy. The company’s leverage to natural gas prices—bolstered by its Marcellus Shale assets—provides upside potential in a tightening global gas market. However, risks include commodity price volatility, regulatory pressures on fossil fuels, and execution risks in maintaining production efficiency. With a manageable debt profile ($1.82B total debt) and a focus on shareholder returns (dividend yield ~0.8%), RRC appeals to investors seeking energy exposure with moderate risk. Its beta of 0.6 suggests lower volatility compared to broader energy peers, though ESG concerns may weigh on valuation multiples.
Range Resources competes in the Appalachian Basin against larger diversified E&P firms and pure-play gas producers. Its competitive advantage lies in its tier-one Marcellus acreage, which delivers low breakeven costs (~$2.00/Mcf) due to high well productivity and existing infrastructure. The company’s operational scale (top-5 gas producer in the region) allows for efficient field management and midstream partnerships, reducing transportation costs. Unlike peers with oil-heavy portfolios, RRC’s gas-focused model aligns with long-term demand trends but exposes it to regional basis differentials. Competitively, it lacks the diversification of integrated majors but outperforms smaller Appalachia-focused E&Ps in financial stability. Its $9.45B market cap positions it as a mid-tier player, with a balance sheet strength that supports growth capex ($628M in FY2023) while returning capital to shareholders. Challenges include competition for premium drilling locations and potential regulatory hurdles in Pennsylvania.