Range Resources: Don't Miss The Boat On This Natural Gas Play (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• RRC missed on production and revenue results in Q4 FY24, but EBITDA performance looks good as operations are becoming more efficient and funding efficient expansion over the next 2 years.
• A colder-than-expected 2024-25 winter season has reduced the supply of natural gas storage, leading to a more bullish natural gas price outlook. This is a powerful tailwind for Range Resources.
• Range Resources is well positioned to meet the quadrupling of natural gas demand from data centers till 2030, especially in the North East part of the United States.
• Valuations are at a lower-than-usual premium vs peers. The chart is in bull flag with an imminent breakout likely. This makes now the opportune time to get in.
• The downside scenario is underwhelming performance on production growth, which management already expects to dip a bit in H1 FY25.

Read the full article here.