Street View: Range Resources to step up buybacks after Q1 beat

Range Resources

24/04/2024 15:11

(Updates)
    ** Shares of natgas producer Range Resources  RRC.N  rise
1.3% to $37.04 after it reported Q1 adj. profit of 69
cents​​/shr on Tuesday, beating estimates of 57 cents/shr - LSEG
data
    ** Co said it hedged Marcellus Shale and other basis
differentials for natgas to limit volatility between benchmark
and regional prices
    ** Co is targeting maintenance-production program in 2024 at
2.12 bln–2.16 bln cubic feet equivalent, with 30% attributed to
liquids production

    NATGAS PRICING, SHARE BUYBACKS IN FOCUS
    ** Roth MKM ("neutral") says co's outsized exposure to
natgas and upside to price of gas may be limited in near term;
expects RRC to have slight positive reaction vs peers
    ** TD Cowen (PT $36, "hold") says, "Range's consistent
cashflow generation despite gas prices below $2/mcf is a
testament to the company's hedging strategy this year as they
bridge towards improved macro in 2025"
    ** Siebert Williams Shank & Co (PT $39, "hold") expects RRC
to step up its buyback activity
    ** We see potential for upward estimate revisions from
stronger NGL pricing and potentially higher production volumes
with better liquids mix following Q1 24 beat - Siebert Williams
    ** RBC Capital Markets (PT $36, "outperform") says "with the
company reducing its net debt level below its targeted
threshold, there is now increased flexibility to implement share
buybacks going forward"

 (Reporting by Seher Dareen and Vallari Srivastava in Bengaluru)
 ((Seher.Dareen@thomsonreuters.com;))