One-glance verdict
Undervalued
$73.24 our estimate vs market $40.89
Wall Street consensus: $45.61 (-37.7% lower than our fair-value estimate)
44% below our estimate, below the bear case
Fundamentals snapshot
Range Resources Corporation
RRC · NYQ · Energy · Oil & Gas E&P
Current price
$40.89
52-week range
$32.68 - $48.31
Market cap
$9.56B
Balance sheet
Healthy
8.25x Adequate
Net debt $1.02B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 10.3% last year.
- Reward Returns 19.5% on equity, ahead of 50% of its peers.
- Risk Operating margin compressed from 56.1% to 36.1% over 3 years.
- Risk Insider ownership is only 1.2% (peer median: 4.3%).
What this company does
Range Resources Corporation
Range Resources Corporation mainly digs up and sells natural gas, natural gas liquids (which are other useful liquids found with natural gas), and oil, mostly in the Appalachian region of the US. They sell these energy resources to various businesses like power companies and refineries, and their success depends heavily on the price of these commodities, impacting their profit margins (the amount of money left over from sales after covering costs).
How the company got here
Range Resources Corporation, originally founded as Lomak Petroleum in 1976, has evolved significantly over the decades. A key turning point was its merger with Domain Energy in 1998, after which it adopted the Range Resources name, shaping the modern company. In the 2000s, Range became a prominent early player in the Marcellus Shale, a move that defined its long-term asset base and strategic focus. The company has since concentrated its operations in the Appalachian Basin, divesting assets in other regions to become an "Appalachian pure-play" producer. This strategic pivot has allowed Range to focus on low-cost natural gas and natural gas liquids (NGLs) production.
What it actually does
Range Resources is in the business of extracting natural resources from the earth and selling them. Think of it like a farmer who grows crops, but instead of crops, Range extracts natural gas, natural gas liquids (NGLs), and oil. These are then sold to other companies that use them for various purposes, such as generating electricity, heating homes, or as raw materials for manufacturing. The company's primary focus is on extracting these resources from shale rock formations in the Appalachian region of the United States.
Natural Gas
This is the main product for Range Resources, making up a significant portion of its business. Natural gas is a fossil fuel that is commonly used for heating homes, cooking, and generating electricity. Range extracts this gas from underground shale formations, primarily in the Appalachian Basin. The company then sells this natural gas to other businesses, such as utility companies that distribute it to homes and industries, and marketing companies that resell it. The price Range gets for its natural gas can change based on how much is being produced and how much is in demand, similar to how the price of any commodity can fluctuate.
Natural Gas Liquids (NGLs)
In addition to natural gas, Range Resources also produces and sells Natural Gas Liquids (NGLs). These are components that are found alongside natural gas and can be separated out during the processing stage. Common NGLs include ethane, propane, and butane, which are used in a variety of applications, from heating and cooking (like propane for grills) to being building blocks for plastics and other chemicals. Selling NGLs can be important for Range because they often have a higher value than natural gas alone, helping to boost the company's overall earnings. These liquids are sold to petrochemical companies, refiners, and other industrial users.
Oil and Condensate
While natural gas and NGLs are Range Resources' primary focus, the company also produces some oil and condensate. Condensate is a light form of crude oil that is often found with natural gas. These products are sold to crude oil processors and refining companies. Although a smaller part of Range's overall business compared to natural gas, these liquids can still contribute to the company's profitability, especially in areas where they are found alongside natural gas deposits.
What management is betting on now
Range Resources' current strategy is centered on being a disciplined and efficient producer of natural gas and NGLs from its core Appalachian assets. Management is focused on generating strong free cash flow (the cash a company has left after paying for its operations and investments) by carefully managing its spending on drilling and development. They aim to maximize the value of their extensive reserves by optimizing production and securing favorable market access for their products. A key part of their bet is on the continued demand for natural gas, driven by factors like increased exports and industrial use, while also focusing on reducing their environmental impact through initiatives like methane emissions reduction and water recycling.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$833.57M
Net income
$195.32M
Diluted EPS
0.83
Operating cash flow
$235.01M
Free cash flow
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Sources
Revenue
$1.03B
Net income
$341.63M
Diluted EPS
1.44
Operating cash flow
$619.14M
Free cash flow
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Sources
Revenue
$820.16M
Net income
$179.09M
Diluted EPS
0.75
Operating cash flow
$257.51M
Free cash flow
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Sources
Revenue
$748.53M
Net income
$144.31M
Diluted EPS
0.60
Operating cash flow
$247.54M
Free cash flow
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Sources
Revenue
$856.27M
Net income
$237.58M
Diluted EPS
0.99
Operating cash flow
$336.19M
Free cash flow
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Sources
Revenue
$690.55M
Net income
$97.05M
Diluted EPS
0.40
Operating cash flow
$330.08M
Free cash flow
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Sources
Revenue
$626.64M
Net income
$94.84M
Diluted EPS
0.38
Operating cash flow
$217.89M
Free cash flow
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Sources
Revenue
$615.03M
Net income
$50.66M
Diluted EPS
0.21
Operating cash flow
$245.92M
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $73.24 vs current price $40.89
Wall Street consensus is the average analyst price target: $45.61 (-37.7% lower than our fair-value estimate).
Our most-likely fair value is $73.24 a share — about 79.1% above today's price of $40.89, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $1.0B. Interest coverage 8.2x.
Net debt
$1.02B
Interest coverage
8.25x
Range Resources Corporation's profit covers its interest bill about 8.2 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
RRC
BASELINE
Range Resources Corporation
Total debt $1.02B Interest coverage 8.25x This is the baseline the peer rows are being compared against.
Total debt $4.62B Interest coverage 9.91x +20% vs RRC Carries about 1.2x more debt cushion than RRC.
Total debt $5.66B Interest coverage 6.87x -17% vs RRC Carries about 1.2x less debt cushion than RRC.
Total debt $2.38B Interest coverage 4.62x -44% vs RRC Carries about 1.8x less debt cushion than RRC.
Total debt $922.41M Interest coverage 10.23x +24% vs RRC Carries about 1.2x more debt cushion than RRC.
Total debt $3.17B Interest coverage 1.72x -79% vs RRC Carries about 4.8x less debt cushion than RRC.
What you should know
The case for and against RRC
3 Rewards
2 Risks
Rewards
-
Revenue grew 10.3% last year.
-
Returns 19.5% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Operating margin compressed from 56.1% to 36.1% over 3 years.
-
Insider ownership is only 1.2% (peer median: 4.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
11.30x
Forward P/E
10.37x
P/B
2.03x
P/S
2.92x
EV/EBITDA
6.51x
PEG ratio
0.86x
Profitability
How much profit each dollar creates
Gross margin
52.1%
Operating margin
36.1%
Net margin
26.3%
ROE
19.5%
ROA
10.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.22x
Current ratio
0.65x
Quick ratio
0.45x
Total debt
$1.02B
Total cash
$247.00K
Growth
How the business has been compounding
Revenue TTM
$3.44B
Revenue 5Y CAGR
1.5%
EPS TTM
3.62
EPS 5Y CAGR
-16.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.36B
Free CF TTM
$533.02M
FCF margin
15.5%
Dividend
Shareholder payout
Yield
1.0%
Payout ratio
10.5%
Last ex-div date
2026-09-11