Range Resources Corporation Common Stock (RRC) : juste valeur

Thèse ACCE

Range Resources is a Appalachian natural gas producer, drilling mainly the Marcellus and Utica shales in southwest Pennsylvania, where it holds a large, contiguous acreage position and runs one of the region's lowest-cost operations. The structural edge is scale and cost position in a basin with abundant, shallow-to-moderate depth gas that can be produced profitably at moderate prices, which has allowed the company to keep operating margins near 36% and return on equity around 19.5%. The near-term driver is demand growth for gas from LNG exports and power generation, which should support pricing for Appalachian supply that has limited pipeline egress. At a P/E of 11.7 and a forward P/E of 10.7, with revenue growing 8.6%, the stock trades at a modest multiple for a business earning these margins, so it merits a closer look at gas price assumptions, hedging, and the free cash flow it can return to shareholders. Its absence from major indices is worth noting, since it limits passive ownership and may keep the valuation discount in place.