| Is Range Resources (RRC) Likely to Surprise This Earnings? - Analyst Blog | |
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Range Resources Corporation RRC is expected to report first-quarter 2015 earnings on Apr 28.
Last quarter, this independent oil and gas company, posted a positive earnings surprise of 113.64%. In the last quarter, the company’s earnings of 47 cents per share beat the Zacks Consensus Estimate of 22 cents. The growth was mainly backed by significantly higher production, primarily in the Marcellus shale region. The bottom line also improved from the year-ago quarter level of 24 cents. Let’s see how things are shaping up prior to this announcement.
Factors Likely to Affect Earnings
Range Resources’ diversified asset portfolio is spread between low-risk/long reserve-life Appalachian assets and large-volume/rapid-payout Gulf Coast properties. The company has an impressive inventory in the Marcellus Shale – one of the prominent emerging shale plays in the U.S. lower 48. The company is advantageously positioned to benefit in the long run from these projects.
Given its dominant position in the Marcellus Shale play and its continuous endeavor to control costs, we believe that Range Resources to be capable of long-term shareholder value creation. This, in turn, is likely to enhance earnings during the first quarter.
For 2015, the company targets production growth of 20% year over year, while first quarter output is anticipated at 1.30 Bcfe per day. Importantly, Range Resources has decided to slash its capital budget by 46% (to $870 million), as it focuses on controlling costs amid plummeting crude realizations.
However, with the majority of Range Resources’ reserves depending on natural gas, the company’s earnings are vulnerable to fluctuations in the natural gas markets. Earlier, the weak gas price environment had compelled the company to reduce its exposure to natural gas drilling.
Earnings Whispers
Our proven model does not conclusively show that Range Resources is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here, as you will see below.
Zacks ESP: Earnings ESP for Range Resources is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 4 cents.
Zacks Rank: Range Resources carries a Zacks Rank #3 (Hold). We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies from the same space which, according to our model, that have the right combination of elements to post an earnings beat this quarter:
Marathon Petroleum Corp. MPC has an Earnings ESP of +2.13% and a Zacks Rank #1 (Strong Buy). The company is slated to release earnings on Apr 30.
Suncor Energy Inc. SU has an Earnings ESP of +400.00% and a Zacks Rank #2 (Buy). The company is slated to release earnings on Apr 29.
Cenovus Energy Inc. CVE has an Earnings ESP of +36.36% and a Zacks Rank #2. The company is slated to release earnings on Apr 29. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RANGE RESOURCES (RRC): Free Stock Analysis Report SUNCOR ENERGY (SU): Free Stock Analysis Report CENOVUS ENERGY (CVE): Free Stock Analysis Report MARATHON PETROL (MPC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Range Resources Ltd
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EXPLORATEUR |
CODE : RRS.AX |
ISIN : AU000000RRS3 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Range Res. est une société d’exploration minière d'or basée en Australie. Range Res. détient divers projets d'exploration en Australie. Ses principaux projets en exploration sont CORACHAPI au Perou et DONNYBROOK en Australie. Range Res. est cotée en Australie et en Allemagne. Sa capitalisation boursière aujourd'hui est 7,6 millions AU$ (5,2 millions US$, 4,7 millions €). La valeur de son action a atteint son plus haut niveau récent le 11 mars 2011 à 0,38 AU$, et son plus bas niveau récent le 22 novembre 2019 à 0,00 AU$. Range Res. possède 7 595 830 272 actions en circulation. |