Company Overview
Range Resources Corporation functions as an independent operator within the United States energy landscape, focusing specifically on the exploration, development, and acquisition of natural gas, natural gas liquids (NGLs), and oil properties concentrated in the Appalachian region. The company operates within the broader Energy sector and the more specific Oil & Gas E&P industry, engaging in the commercialization of extracted hydrocarbons for sale to downstream markets. This entity maintains a significant operational footprint supported by a workforce of 564 employees, reflecting its standing as a substantial mid-cap player in the shale production space. With a market capitalization of $11.29B and annual revenue of $2.99B, the firm demonstrates a scale that positions it as a notable contributor to regional energy supply chains. These valuation and revenue figures indicate that the company commands a substantial market presence, suggesting it holds a relevant share of the Appalachian resource base and possesses the infrastructure necessary to execute its exploration and production strategy effectively across its designated territories.
Financial Health
The company reported a Total Revenue of $2.99B over the trailing twelve months, generating a Net Income of $656.73M and an EBITDA of $1.36B during the same period. The substantial gap between the $2.99B revenue and the $656.73M net income reveals a cost structure where operating expenses, including depletion, depreciation, amortization, and lifting costs, consume a significant portion of gross receipts before reaching the bottom line. Free Cash Flow stands at $342.94M, which indicates that the company generates sufficient cash from operations to cover its capital expenditures and debt obligations while retaining liquidity for potential strategic initiatives or unexpected market fluctuations. The gross margin is recorded at 49.6%, while the operating margin sits at 33.6% and the profit margin is 22.0%, collectively indicating a business model with strong pricing power relative to extraction costs and robust efficiency in converting operational revenue into actual profit. Regarding liquidity and leverage, the firm holds $204,000 in cash against a total debt load of $1.37B, resulting in a debt-to-equity ratio of 31.78, which characterizes a leveraged balance sheet typical for capital-intensive energy extraction companies. The current ratio is 0.67, suggesting that short-term liquid assets are currently lower than short-term liabilities, a condition often seen in industries where long-term debt financing is used to fund projects that yield returns over extended horizons. Return on Equity is 15.9% and Return on Assets is 8.2%, metrics that reveal management effectiveness in generating returns on the capital invested by shareholders and the total asset base, respectively, despite the high leverage levels present on the balance sheet.
Valuation Assessment
Range Resources Corporation trades with a Trailing Twelve Month (TTM) P/E ratio of 17.39 and a Forward P/E of 11.03, implying that the market anticipates a significant acceleration in earnings growth that will drive the stock price higher relative to current earnings levels over the next fiscal year. The price-to-book ratio is 2.60, indicating that the market values the company at a premium of 160% above its net tangible assets, which suggests investors are pricing in intangible assets, growth prospects, or a risk premium associated with the energy sector. Alternative valuation metrics such as a price-to-sales ratio of 3.78 and an EV/EBITDA of 9.24 provide context that the company is valued conservatively relative to its revenue generation and enterprise value compared to earnings before interest, taxes, depreciation, and amortization. The stock has exhibited volatility within a 52-week trading range bounded by a high of $48.31 and a low of $30.32, with the current share price trading at approximately 61.9% below the 52-week high and 116.7% above the 52-week low based on the provided range. A beta of 0.57 is recorded for the stock, meaning that the company's price volatility is historically less than half that of the broader market, suggesting it may act as a lower-beta play within the high-volatility energy sector.
Growth & Income
Revenue growth year-over-year is recorded at 16.3%, while earnings growth year-over-year reaches 94.1%, indicating that the company's profitability is expanding at a rate significantly faster than its top line, likely driven by operational leverage or margin expansion rather than just increased volume. For dividend investors, the company offers a yield of 0.8% with a payout ratio of 13.1%, which indicates a highly sustainable dividend policy given that the payout is a small fraction of the earnings generated. The low payout ratio suggests that the company prioritizes retaining earnings to fund its capital program and growth initiatives rather than distributing maximum cash to shareholders, a common strategy for growth-oriented energy producers. Summarizing the profile, Range Resources Corporation presents a combination of double-digit revenue expansion and triple-digit earnings growth supported by a conservative dividend policy that preserves capital for future development.