Investors looking for stocks in the Oil and Gas - Exploration and Production - United States sector might want to consider either Range Resources (RRC) or Viper Energy Partners (VNOM). But which of these two stocks is more attractive to value investors?
Range Resources (RRC) reported earnings 30 days ago. What's next for the stock?
RRC boasts decades of low-risk drilling inventory in Appalachia, strengthening its production outlook. However, the stock is exposed to gas price volatility.
RRC missed on production and revenue results in Q4 FY24, but EBITDA performance looks good as operations are becoming more efficient and funding efficient expansion over the next 2 years. A colder-than-expected 2024-25 winter season has reduced the supply of natural gas storage, leading to a more bullish natural gas price outlook. This is a powerful tailwind for Range Resources. Range Resources is well positioned to meet the quadrupling of natural gas demand from data centers till 2030, especially in the North East part of the United States.
Investors looking for stocks in the Oil and Gas - Exploration and Production - United States sector might want to consider either Permian Resources (PR) or Range Resources (RRC). But which of these two stocks offers value investors a better bang for their buck right now?
Range expects 1% production growth in 2025 and may be able to generate over $850 million in 2025 free cash flow at current strip. It currently plans to grow production by another 18% by 2027 with a similar annual capex budget to 2025. Range is largely shielded from cash income taxes over the next couple of years, but may pay a high-teens rate by 2027.
RRC's Q4 earnings benefit from higher realized commodity prices, partially offset by lower production.
Range Resources Corporation. (NYSE:RRC ) Q4 2024 Earnings Conference Call February 26, 2025 9:00 AM ET Company Participants Laith Sando - Vice President, Investor Relations Dennis Degner - Chief Executive Officer Mark Scucchi - Chief Financial Officer Alan Engberg - Vice President Liquid Marketing Conference Call Participants Scott Hanold - RBC Jake Roberts - TPH & Company Bertrand Donnes - Truist Kevin McCurdy - Pickering John Annis - Texas Capital Michael Scialla - Stephens Neil Mehta - Goldman Sachs Betty Jiang - Barclays John Abbot - Wolfe Research Operator Welcome to the Range Resources Fourth Quarter 2024 Earnings Conference Call.
While the top- and bottom-line numbers for Range Resources (RRC) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Range Resources (RRC) came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.63 per share a year ago.
Range Resources (RRC) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Besides Wall Street's top -and-bottom-line estimates for Range Resources (RRC), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended December 2024.