Susquehanna Analyst Maintains Hold Rating for Range Resources

Susquehanna analyst Charles Minervino maintained a Hold rating for Range Resources with a price target of $39.00, closing at $35.65. Piper Sandler's Mark Lear also issued a Hold, while Bank of America Securities maintained a Buy rating. The company's market cap is $8.52B and has a P/E ratio of 31.96. Corporate insider sentiment is negative, with 31 insiders selling shares over the past quarter.

Range Resources Corporation (RRC) reported its Q2 2025 earnings, showcasing a robust performance with strong financial results and a positive outlook for the future. The company's Q2 adjusted earnings per share (EPS) of $0.96 exceeded the FactSet estimate of $0.92, indicating solid execution and operational efficiency.

Key highlights of the Q2 earnings include:

- Production and Capital Expenditure (CapEx): RRC achieved production of 2.2 billion cubic feet equivalent (Bcf) per day, with all-in capital expenditure of $154 million. This represents a significant increase in lateral footage, rising from 130,000 feet in Q1 to 156,000 feet in Q2, demonstrating the company's commitment to operational growth.
- Operational Efficiency: Lease operating expenses dropped from $0.13 per Mcfe in Q1 to $0.11 per Mcfe in Q2, highlighting the company's ability to maintain cost efficiency while increasing production.
- Shareholder Returns: RRC repurchased $53 million in shares during the quarter, adding to the first half of the year total of $120 million. The company also paid $21 million in dividends, bringing the year-to-date total to $43 million. These initiatives have contributed to a substantial return to equity holders, totaling $646 million for the first two quarters of 2025.

Management expressed confidence in the company's strategic position, emphasizing operational efficiency, disciplined capital allocation, and a robust inventory position. CEO Dennis L. Degner highlighted the potential for 20% production growth through 2027, driven by AI, power, and infrastructure investments in Pennsylvania.

Analysts have responded with a mix of ratings and price targets. Susquehanna analyst Charles Minervino maintained a Hold rating with a price target of $39.00, while Piper Sandler's Mark Lear also issued a Hold. Bank of America Securities maintained a Buy rating, reflecting the differing views on the company's growth prospects and valuation.

Corporate insider sentiment remains negative, with 31 insiders selling shares over the past quarter, totaling $1,449,057. This suggests a cautious approach among insiders, potentially due to ongoing macroeconomic uncertainty or concerns about regional oversupply.

References:
[1] https://www.marketscreener.com/news/range-resources-q2-adjusted-earnings-revenue-rise-ce7c5cdddc8fff22
[2] https://seekingalpha.com/news/4470870-range-resources-outlines-20-percent-production-growth-through-2027-amid-operational