Shares of natural gas company Range Resources (NYSE:RRC) have surged in price over the past few months thanks to skyrocketing natural gas prices. However, after hitting its 52-week high yesterday, does the stock have further upside to deliver? Read on. Fort Worth, Tex.-based natural gas, natural gas liquids (NGLs), and oil producer Range Resources Corporation’s (RRC) operations focus mainly on stacked-pay projects in the Appalachian Basin. Its share price has soared 33.6% over the past month to close yesterday’s trading session at $18.39, after hitting its 52-week high of $18.82, due primarily to galloping natural gas prices.
However, RRC’s natural gas production decreased in the second quarter. Also, its expenses increased considerably, and it reported a loss. Moreover, the company is being investigated by several law firms for potential law violations. For example, it is alleged that RRC artificially decreased its periodically reported cost estimates to plug and abandon its wells. So, the company’s near-term prospects look uncertain.
Here are the factors that we think could shape RRC’s performance in the coming months: