Range Resources (RRC) Stock Forecast & Price Target

Range Resources has demonstrated robust financial health with proven reserves of 18.1 trillion cubic feet equivalent and impressive net production levels of 2.18 billion cubic feet equivalent per day, predominantly from natural gas, which constitutes 68% of production. The company's proactive asset management resulted in a net addition of 749 Bcfe in reserves, alongside consistent positive revisions that offset any negative impacts from market fluctuations. With a maintained leverage ratio and an extensive 30+ year drilling inventory, Range Resources is well-positioned for sustainable growth and increased cash returns to investors, especially as natural gas prices are projected to strengthen.

Range Resources' outlook is negatively impacted by several critical factors, starting with the anticipated decline in net debt-to-EBITDA ratio from 1.1x at year-end 2024 to 0.8x by year-end 2025, contingent on significant capital expenditures of $670 million. The company faces reserve risks, as the productivity of new wells may underperform expectations, potentially leading to reduced cash flow and net asset value estimates. Furthermore, commodity price volatility poses a serious threat, with the potential for significant declines in natural gas demand and prices that could adversely affect near-term cash flow and EBITDA estimates, alongside regulatory and execution risks that could hinder production and operational progress.