Range Resources (RRC) Stock Forecast & Price Target

Range Resources, based in Fort Worth, reported proven reserves of 18.1 trillion cubic feet equivalent and a net production rate of 2.2 billion cubic feet equivalent per day, predominantly deriving 68% of its output from natural gas. The company's solid production growth is projected to reach a target of 2.6 billion cubic feet equivalent per day by 2027, bolstered by strong NGL market conditions and potential for increased pricing as export capacity expands. Additionally, Range Resources benefits from a strong selling portfolio, strategic stock buybacks, and a focus on debt reduction, all contributing to a positive financial outlook.

Range Resources is exposed to significant risk due to the potential for weaker-than-expected commodity prices, which could negatively affect stock performance and impede the achievement of financial objectives. Despite minor reductions in lease operating expenses (LOE) and general and administrative expenses (G&A), concerns remain about the company's ability to maintain its financial performance amidst fluctuations in natural gas pricing. Additionally, a downside scenario suggests that the company's valuation may be overly optimistic if commodity prices fall significantly below the long-term forecast of $3.50 per Mcf, raising further doubts about its financial stability.