Independent oil and gas company, Range Resources Corporation ( RRC ) underwent a rating action from Moody's Investors Service, a unit of Moody's Corporation ( MCO ). The rating agency upgraded the outlook to positive from stable, reflecting Range's improving scale and operating efficiency alongside its operating concentration in the Marcellus region.
The rating reflects its leading position in the Marcellus Shale, its investment grade size and scale, and its history of operational efficiency. As measured by reserves, Range is currently the second largest among its exploration & production peers, behind only Chesapeake Energy ( CHK ), with production and proved developed reserves. At Jun 30, 2014, Range had average daily production nearing 200,000 barrels of oil equivalent (Boe) per day and proved developed reserves of 688 million Boe. The company has identified 6,625 drilling locations in its core Marcellus acreage, providing substantial growth opportunities beyond its proved developed reserve base.
Range Resources is a leading independent oil and natural gas producer with operations concentrated in Appalachia and the southwest region of the U.S. The company pursues an organic growth strategy targeting high return, low-cost projects within its large inventory of low risk, development drilling opportunities.
The company has a track of double-digit production growth while reducing its finding and development costs and sustaining an industry leading low-cost structure. This can be attributed to increased production from the low-cost Marcellus region.
However, with the majority of Range Resources' reserves tilted toward natural gas, the company's results are vulnerable to fluctuations in the natural gas markets. Earlier, the timid gas price environment compelled the company to lower its exposure to natural gas drilling.
Range Resources' currently carries a Zacks Rank #5 (Strong Sell). Investors interested in the oil and gas sector could try out a better-ranked stock like Patterson-UTI Energy Inc. ( PTEN ).
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