On Thursday, Benchmark analysts maintained their Hold rating for Range Resources (NYSE:RRC) stock, confirming their expectations without altering the price target. The stock currently trades at $40.67, near its 52-week high of $41.95, with analyst targets ranging from $22.55 to $53. The analysts project that the company will outperform consensus estimates in the first quarter with an earnings per share (EPS) of $0.92 and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $426 million. These figures surpass the consensus EPS of $0.90 and EBITDA of $401 million. InvestingPro data reveals that 7 analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in the company’s prospects.
The Benchmark team attributes their higher forecast primarily to the company’s post-hedge gas realizations, which they expect to be favorable. The analysts have included in their assumptions significant gains from swaps, which are priced at $4.12 per million cubic feet (mcf).
Their analysis indicates a bullish outlook on the company’s ability to capitalize on its hedging strategies, which could result in financial performance exceeding that of their peers. The hedging gains are seen as a key driver behind the anticipated outperformance relative to consensus estimates.
Range Resources, a natural gas exploration and production company, has been focusing on its financial strategies to maximize returns in a market that often experiences volatile pricing. The company’s use of swaps as a hedging tool is meant to lock in prices for its natural gas production, providing a more predictable revenue stream despite fluctuations in market prices. This strategy appears to be working, as shown by the company’s impressive 33% return over the past six months.
Investors and market watchers often look to analyst ratings and estimates as a gauge for company performance and potential investment decisions. With the first quarter coming to a close, attention will now turn to the actual reported figures to see if Range Resources meets or exceeds the expectations set by Benchmark’s analysis. According to InvestingPro, the company’s next earnings report is scheduled for April 29, 2025. For deeper insights into RRC’s valuation and growth potential, including exclusive Fair Value analysis and 12 additional ProTips, consider exploring the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Range Resources Corporation reported mixed results for its fourth-quarter 2024 earnings. The company exceeded earnings per share expectations with $0.68 compared to the forecasted $0.58, demonstrating strong cost management. However, revenue fell short of projections, coming in at $626.42 million against an expected $693.27 million. Additionally, Range Resources announced a 12.5% increase in its quarterly dividend to $0.09 per share, reflecting its commitment to shareholder value. In a strategic move, the company also added Christian S. Kendall, former CEO of Denbury Inc., to its Board of Directors, signaling a focus on enhancing governance and sustainable practices. JPMorgan adjusted its price target for Range Resources to $43.00, maintaining an Underweight rating, following the company’s plans to modestly boost production in 2026-27. The firm highlighted Range Resources’ advantageous tax position, which is expected to improve cash flows by over $300 million in the next two years. These developments underscore Range Resources’ ongoing strategic initiatives and financial maneuvers to strengthen its market position.
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