Range Resources: Optimism Fueled By Pricing And Volume Tailwinds (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 is likely to enjoy a rally in natural gas prices driven by rising LNG demand and low inventory levels.
• RRC is well-positioned for volume growth, supported by favorable energy policies and efficient production capabilities in the Appalachia region.
• RRC typically trades at a premium vs its comps but this is arguably deserved due to a superior costs structure. And currently, its valuation premium is lower than usual levels.
• Technically, RRC shows a bull flag pattern relative to the S&P500, indicating potential upside.
• So far, consensus EBITDA growth expectations remain flat, which would is not as ideal. Hence, I plan to initiate a 50% position, adding the remainder after EBITDA upgrades. This may mitigate the risks of my bullish view being 'priced in'.

Read the full article here.