Range Resources Corporation RRC has gained 3.6% in the past six months against a 20.2% decline of the composite stocks belonging to the industry.
What’s Favoring the Stock?
In its short-term energy outlook, the U.S. Energy Information Administration revealed its forecast of the Henry Hub spot average price, which indicates that the pricing scenario will be healthier in the second half of this year than in the first half. This benefits the upstream operation of Range Resources, which carries a Zacks Rank #3 (Hold).
In Appalachia, RRC has decades of low-risk drilling inventory, brightening its production outlook. The company has lower well costs per lateral foot than many other upstream players.
The firm has a strong focus on strengthening its balance sheet. Over the past few years, RRC has been reducing its debt load almost consistently. On a positive note, the company has the lowest emission intensity among the upstream companies in the United States.
In spite of the positive factors, RRC’s overall operations are significantly exposed to extreme oil and natural gas price volatility.
Stocks to Consider
Better-ranked players in the energy space include Murphy USA Inc. MUSA, Sunoco LP SUN and Dril-Quip, Inc. DRQ. While Dril-Quip and Murphy USA carry a Zacks Rank #2 (Buy), Sunoco sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is a leading retailer of gasoline. MUSA has more than 1,700 stores and has witnessed upward earnings estimate revisions for 2023 earnings in the past seven days.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model. For this year, SUN has witnessed upward earnings estimate revisions in the past 30 days.
Dril-Quip is a leading provider of highly engineered equipment, service and innovative technologies that are being employed in the energy sector.
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