Range Resources: Over Priced And Technically Vulnerable
By David White:Range Resources (RRC) is primarily a natural gas company. Production is approximately 78% natural gas, 16% natural gas liquids (NGLS), and 6% oil. Range Resources has some great natural gas resources, which are primarily in the Marcellus Shale. Unfortunately for Range Resources US natural gas prices have fallen from a high last summer of approximately $4.98 /mmBTU to today's $2.28/mmBTU. It is not hard to envision what this has done to profits. RRC managed to post an adjusted EPS of $0.15 for Q1 2012, but its financial statement (with the GAAP numbers) gives a more sanguine picture of what has been happening at the company. The net income for RRC by quarter is below:
- Q2 2011 was $51,293,000.
- Q3 2011 was $34,755,000.
- Q4 2011 was a loss of -$2,989,000.
- Q1 2012 was a loss of -$41,800,000.
The Q1 2012 result was with an Income Tax Benefit of +$27,843,000. The IncomeComplete Story »