Range Resources Corp. (RRC) Turns on the Gas

One final area of upside for Range is the Mississippi Lime formation, where it’s following in the footsteps of industry trail blazers like SandRidge Energy Inc. (NYSE:SD), which was the first mover on the play. SandRidge Energy Inc. (NYSE:SD) has already drilled over 725 wells, which has really de-risked the play for the rest of the industry. This has enabled companies like Devon and Range to follow its blueprint, which includes how to strategically place saltwater disposal wells, in order to produce the best rates of returns.

The key takeaway for investors is that Range is laser-focused on returns, which means it’s not always the first mover when it comes to emerging oil and gas plays. However, this is one reason why its operating costs are so low, which helps the company to profit when prices drop, while enabling it to reap a fantastic harvest of profits for stockholders when prices rise. The company’s focus has served investors well, as evidenced by its record-breaking production report this quarter.

The article Range Resources Turns on the Gas originally appeared on Fool.com.

Fool contributor Matt DiLallo owns shares of SandRidge Energy and has the following options: short September 01 2013 $5 puts on SandRidge Energy. The Motley Fool recommends Range Resources. The Motley Fool owns shares of Devon Energy.

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