Has Range Resources Corp. (RRC) Become the Perfect Stock?

Range Resources has plenty of potential, with extensive low-cost production capacity in the Marcellus shale play as well as other plays around the country, including the Permian Basin, the Utica Shale, and the Mississippian region. But the company has had to deal with a big plunge in natural gas prices, and that’s hurt the company hard, as nearly three-quarters of Range’s proved reserves are dry gas, with only 4% crude and 22% natural gas liquids exposure.

Another challenge that Range Resources has had throughout the year is getting gas from new finds in out-of-the-way areas like the Marcellus to market. With Sunoco Logistics Partners L.P. (NYSE:SXL) converting a petroleum pipeline for natural-gas transmission, Range Resources signed a 15-year agreement to ship its Marcellus ethane production through the pipeline, with the intent of using Sunoco, Inc. (NYSE:SUN)‘s Marcus Hook refinery as a natural-gas processing facility to deliver the gas to a Swiss petrochemical buyer.

Long-term, though, Range Resources is still paving the way to future growth opportunities. Last week, it announced that its proved reserves had jumped 29% as of the end of 2012 to 6.5 trillion cubic feet equivalent. Despite making no acquisitions that added reserves, the jump represented more than seven times the 276 billion cubic feet equivalent that Range Resources produced in 2012.

For Range Resources to improve, it needs to keep costs down and wait out the slump in nat-gas prices. If the company can cut its wellhead costs down toward the levels that Anadarko Petroleum Corporation (NYSE:APC) and Ultra Petroleum Corp. (NYSE:UPL) have achieved, it might be enough to make Range Resources profitable again even in a weak nat-gas market.

The article Has Range Resources Become the Perfect Stock? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Range Resources and Ultra Petroleum and owns shares of and has options positions on Ultra Petroleum.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!