Range Resources Corp
Why the summer heat wave supports natural gas prices
A heat wave that has persisted in the US has helped to lift natural gas prices.
What Will Arbs Think of the MRD-RRC Deal?
This transaction is a classic merger arb core position. The companies are reasonably big and liquid and the deal makes strategic sense. It’s fairly safe.
Natural Gas’s Surge in November 2017
Between October 30 and November 6, 2017, US crude oil futures rose 5.9%.
Are Natural Gas–Weighted Stocks More Sensitive to Oil?
US crude oil prices are important to understand US natural gas supplies. Oil prices are often important for the energy sector’s general sentiment.
Crude Oil Prices Settle below Key Moving Averages after Brexit
Market surveys project that the global crude oil glut could narrow due to supply outages in 2016.
Inside Range Resources’ 3Q16 Earnings
For 3Q16, Range Resources reported an adjusted loss per share of $0.06—$0.09 better than the Wall Street analyst consensus estimate of $0.15 loss per share.
These Gas-Weighted Stocks Are Sensitive to Natural Gas’s Moves
On November 21, natural gas December futures fell 1.6% settled at $4.45 per million British thermal units.
Why natural gas rigs aren’t likely to rise much through year-end
Natural gas rigs remain down since the beginning of the year, with no major catalyst for them to increase in the medium term.
Are Crude Oil and Natural Gas Stocks Finally Bottoming?
Looking back, 2015 was a brutal year for all of the commodities. Energy commodities weren’t an exception. Crude oil (USO) fell by ~30% in 2015.
Must-know: Environmentalists’ views on coal and natural gas
Natural gas has gained market share for use in power generation. Learn about the drivers of this trend and the consequences of increased natural gas use.
Southwestern Energy Stock Movement versus Natural Gas
Since March 2016, natural gas prices have risen ~83%, but Southwestern Energy’s stock price has risen only ~48% since its February 2016 low.
Why cold weather warms natural gas investors
Last week, natural gas prices didn’t increase despite forecasts for cooler weather. The forecast called for weather that would be cooler, but not cold enough to cause freezing temperatures.
Natural Gas Prices and Natural Gas–Weighted Stocks
On June 6, natural gas July futures rose 0.2% and closed at $2.896 per MMBtu. In the trailing week, natural gas July futures rose 0.4%.
Range Resources’ Valuation: How Does It Compare with Peers’?
In 4Q15, Range Resources was trading at higher price-to-book and price-to-sales multiples than peers.
How Wall Street Analysts Rate CNX Resources
The median target price on CNX Resources stock is $20.50, which is ~21% higher than its July 26 closing price of $17.01.
Will Range Resources’ Debt Burden Increase after the Merger?
According to Range Resources’ presentation on its merger with Memorial Resource Development, it’s expecting an ~108% boost to its 2016 estimated cash flow.
Top E&P Gainers for the Week That Ended on August 24
California Resources (CRC) was the top E&P (exploration and production) gainer in the week that ended on August 24, with a week-over-week rise of 22.2%.
Southwestern Energy Stock: Will Its Downtrend Reverse?
As of November 15, 2017, Southwestern Energy’s (SWN) short interest stood at ~41.70 million, while its average daily volume is ~6.13 million.
California Resources: Why No Positive Cash Flow in 2Q16?
For 2Q16, California Resources’ (CRC) total operating revenue (excluding derivative losses) was ~$435 million or ~44% lower than 2Q15.
Why investors should closely watch natural gas inventory figures
Natural gas prices directly affect earnings for gas-weighted producers such as Chesapeake Energy Corporation (CHK), EQT Corporation (EQT), Southwestern Energy Company (SWN), and Range Resources Corporation (RRC).
Nordic Bank SEB Revises Crude Oil Price Forecasts
Leading Nordic bank SEB raised its Brent crude oil forecast to $48 per barrel for 2016 compared to its previous forecast of $44 per barrel.
What Analysts Think of Devon Energy after 3Q17 Earnings
As of November 2, 2017, around 71.9% of analysts covering Devon Energy (DVN) have “strong buy” or “buy” recommendations on the stock.
Will the MRD-RRC Deal Get Competitive?
Range Resources’ (RRC) offer of $15.75 per share was a 17% premium to Memorial Resource Development’s (MRD) price before the deal was announced.
What Has Hedging Done for Range Resources?
In 1Q16, natural gas hedging activities increased Range Resources’ (RRC) average realized natural gas price by $0.91 per Mcf (thousand cubic feet).
Range Resources’ 2Q16 Earnings Are Better Than Expected
In this series, we’ll analyze Range Resources’ 2Q16 earnings and revenue and look at its cash flow, operational performance, analyst ratings, and price forecasts.
Must-know: Why have oil prices remained buoyant lately?
Crude oil prices have remained buoyant lately, with last week’s rally mostly driven by higher-than-expected U.S. GDP growth.
Southwestern Energy Stock: The Impact of Natural Gas Prices
Since November 9, 2016, SWN stock hasn’t been keeping up with the strong rise in natural gas prices. The stock has risen marginally from $9.78 to $10.10 per share.
How Range Resources Did in 1Q18
Range Resources (RRC) announced its 1Q18 earnings on April 25, after the market closed.
Must-know: Why natural gas storage figures matter to investors
Every week, the U.S. Energy Information Administration (or EIA) reports figures on natural gas inventories, or the amount of natural gas stored in facilities across the U.S.
What Are Wall Street Analysts Saying about Range Resources?
As of March 28, 2016, about 55% of Wall Street analysts rated Range Resources (RRC) as a “buy” and ~40% of analysts rated it as a “hold.”
US Power Generation Down Again: An Analysis of Trends
An increase in US power generation numbers is expected for the week ended October 30, 2015.
Spread between WTI crude oil and Brent oil has closed in significantly since YE2012
The WTI-Brent spread remained relatively unchanged last week, but has closed in significantly since year-end 2012.
Murphy Oil: Analysts’ 4Q16 EBITDA Estimates
For 4Q16, Wall Street analysts expect Murphy Oil to report EBITDA of ~$261 million—compared to adjusted EBITDA of approximately -$122 million in 4Q15.
The Word on the Street: Forecasts for Range Resources
As of May 27, 2016, about 50% of Wall Street analysts have rated Range Resources (RRC) as a “buy,” and ~47% of analysts have rated it as a “hold.”
Why names like Southwestern are poised to benefit this winter
Natural gas producers will see upside from the colder winter, as it has helped to boost natural gas prices.
Natural Gas Is Falling: Expect Stocks to Decline
On February 8, 2018, the EIA will report natural gas inventory data for the week ending February 2, 2018. The market expects a fall of 116 Bcf.
Why a dip in natural gas liquids prices affects energy names
NGLs prices remain uptrend despite the falling last week, which is positive to producers.
Natural gas producers declining due to expected warm weather
Last week temperatures were colder than normal, however, natural gas fell steeply on the week despite this.
Why the slight move up in natural gas inventories was positive for stocks
Natural gas inventory figures as reported on July 3 were mildly positive, and the commodity traded up slightly on the day.
Marathon Oil: Pre-Earnings Wall Street Ratings
The median target price on Marathon Oil stock is $23.50, which is ~14% higher than its July 19 closing price of $20.54.
Natural Gas Prices Could Trade within an Uptrend Channel
A symmetrical triangle could swing natural gas prices in either direction. Bears could see the key support at $2.50 per MMBtu. Prices hit this mark in April.
WTI-Brent crude oil spread moves wider on Libya disruptions
The spread between WTI crude and Brent crude moved wider on Libya supply disruptions.
How Has Range Resources’ Stock Performed in 2016?
In the last two months, Range Resources’ stock price has increased by ~68%.
How Southwestern Energy Stock Performed in 1Q17
In 1Q17, the stock of Appalachian natural gas (UNG) producer Southwestern Energy (SWN) underperformed natural gas, falling from $10.82 to $8.17.
Is Oil Losing Its Grip on Natural-Gas-Weighted Stocks?
In the last trading session, CHK declined 6.5% despite oil’s 0.6% rise.
Higher natural gas liquids prices help wet gas producers like LINE
NGL prices traded higher last week, helping wet gas producers. NGL prices are an important indicator to track in the energy space.
Futures Spread: Bullish Sentiments Are Rising
On March 19, the natural gas futures for April 2019 closed at a premium of ~$0.22 to the April 2020 futures.
Must-know: Southwestern Energy’s cost advantages
The Energy Information Administration describes Finding and development costs as, “…the costs of exploring for and developing reserves of oil and gas and the costs to purchase properties or acquire leases that might contain oil and gas reserves.”
EIA Data Might Not Support Natural Gas
On April 4, the EIA (U.S. Energy Information Administration) is scheduled to release its natural gas inventory report for the week ending March 29.
Natural Gas Futures Spread Is Showing Interesting Divergence
On January 8, the natural gas futures for February 2019 closed at a discount of ~$0.07 to the February 2020 futures.
Futures Spread: Natural Gas’s Bullish Sentiments Fall
On March 26, the natural gas futures for May 2019 closed at a premium of ~$0.15 to the May 2020 futures.
Natural Gas Consumption Increases in Week to April 24
Last week, total US natural gas consumption increased 6.7% due to colder weather. It rose 18.4% in residential and commercial, 2.5% in industrial, and 0.4% in power generation.
Natural gas prices rally on cold weather forecasts
The weather is the major driver of natural gas prices, so investors can get an idea of how prices will likely move in the short term.
Energy Stocks that Could Outdo Natural Gas
Between May 15 and May 22, 2017, natural gas June futures fell 0.6%. During that same period, an equally weighted selection of natural gas–weighted stocks fell 1.5%.
Analyzing Natural Gas ETFs Last Week
On December 21–28, the United States Natural Gas ETF (UNG) fell 9.4%, while the ProShares Ultra Bloomberg Natural Gas ETF (BOIL) fell 17.5%.
The Russia-Ukraine situation’s impact on energy: Key takeaways
More U.S. gas exports creates more demand for U.S. natural gas, which supports prices and incentivizes greater production. This is positive for upstream producers.
Important Price Points for Natural Gas Traders Next Week
On May 17, natural gas’s implied volatility was 20.6%, 0.5% higher than its 15-day moving average.
What’s in the Cards for US Natural Gas Prices in August?
US natural gas inventories are 23.2% higher than their five-year average. High inventories could limit the upside potential for US natural gas prices.
Comparing Natural Gas ETFs’ Performances to Natural Gas Prices
Between January 18 and January 25, the United States Natural Gas ETF fell 3.6%, while the ProShares Ultra Bloomberg Natural Gas ETF fell 8.1%.
Natural Gas near $3: Which Gas-Weighted Stocks to Ride?
On March 6, 2017, natural gas futures contracts for April 2017 delivery closed at $2.9 per MMBtu, which is ~2.6% above the previous closing price.
Higher EIA Inventory Data Might Be Bullish for Natural Gas
In the week ending on October 5, the inventories spread was -17%. The spread contracted by 50 basis points compared to the previous week.
Southwest Airlines Posted Profits while Southwestern Energy Led SPY
Southwest Airlines (LUV) gained 0.5% on January 21 while Delta Air Lines (DAL) went up 1.8% on the day.
These Gas-Weighted Stocks Could Mirror Natural Gas’s Bearishness
On April 24, 2017, natural gas futures (UNG) (BOIL) (FCG) contracts for June 2017 delivery closed at $3.16 per MMBtu (million British thermal units).
Will the Oil Rig Count Increase Natural Gas Downside Risk?
Since 2008, the natural gas rig count has fallen ~89% from its record high. But the fall was unable to stop the rise in natural gas supplies.
Inventories Spread: Will a Flip Save Natural Gas Bulls?
In the week ended September 29, 2017, natural gas inventories rose by 42 Bcf (billion cubic feet) to 3,508 Bcf, according to the EIA (US Energy Information Administration) report on October 5, 2017.
Higher Inventories Might Support Natural Gas Prices
In the week ending April 20, natural gas inventories declined by 18 Bcf (billion cubic feet) to 1,281 Bcf—based on the EIA’s data announced on April 26.
Could Oil’s Moves Influence Natural Gas–Weighted Stocks?
Range Resources and Antero Resources had the highest negative correlations with natural gas June futures over the past five trading sessions.
Inventories Spread: Could Natural Gas Make a U-Turn?
The market expects a rise of 56 Bcf in the natural gas inventories level for the week ended September 29, 2017.
Futures Spread and the Natural Gas Market
On April 24, natural gas June 2018 futures closed at a premium of ~$0.2 to June 2019 futures. The difference is called the “futures spread.”
Natural Gas Prices Are Trading near the Key Support Again
Natural gas futures contracts for October delivery fell for the second day. Natural gas prices have been fluctuating within a trading range for the last two months.
An overview of the natural gas compression industry
Natural gas compression is essential for transporting natural gas. Compression is used several times during the natural gas production and transportation cycle.
Range Resources’ Production: Where Did It Come From?
For 4Q15, Range Resources’ production of ~1.4 Bcfe (billions of cubic feet equivalent) per day was ~12% higher than the ~1.3 Bcfe per day from 4Q14.
Are Supply Concerns Rising for Natural Gas?
On April 3, 2018, natural gas May 2018 futures closed at a premium of $0.04 to May 2019 futures.
Natural gas liquids prices rise, boosted by propane prices
The representative NGL barrel reached highs of up to ~$50 per barrel in early February, given the strength in propane prices due to a cold winter as well as natural gas prices that pushed ethane prices up.
Higher natural gas liquids prices: Key causes and beneficiaries
This week saw NGL prices trade up by 5%, a positive short-term indicator. Plus, note that NGL prices are up significantly since late June, a positive medium-term indicator.
Natural Gas’s Recovery Could Boost Natural Gas–Weighted Stocks
On July 25, natural gas September futures rose 1.3% and settled at ~$2.76 per MMBtu (million British thermal units).
Cabot Oil & Gas’s Key Strategies and Initiatives for 2018
From 2018 to 2020, Cabot Oil & Gas (COG) expects to see a compound annual growth rate of 17%–21% in its production volumes.
Weather Forecast Could Push Natural Gas to Its 2018 High
On November 8, natural gas’s implied volatility was 47.4%, which was ~10.7% above its 15-day moving average.
What higher natural gas liquids prices mean for the energy sector
Natural gas liquid prices recovered somewhat last week, likely off the back of higher crude oil prices.
Lower natural gas prices last week positive for coal-to-gas switching
Last week, natural gas prices declined more than coal prices which is an incentive for power plants to use more natural gas as fuel relative to coal.
Analyzing the EIA’s natural gas inventory report and forecast
On October 23, the U.S. Energy Information Administration (or EIA) reported a 94 billion cubic feet (or bcf) natural gas inventory build for the week ending October 17.
The Oiltanking Partners deal will boost Enterprise Products’ exports
With access to Oiltanking Partners’ (OILT) waterborne markets and storage position, EPD will be able to integrate its supply chain more efficiently.
Popular ways for investors to play natural gas prices
For most investors, the most straightforward way to play natural gas prices is through commodity ETFs or investing in equities that produce natural gas.
Why EIA Data Might Not Satisfy Natural Gas Bulls
In the week ending on December 28, the inventories spread was -17.2%.
UNG Mirrored Natural Gas Last Week while XOP Remained Flat
UNG shares trade on the NYSE like a company stock. They gained 9.09% last week.
Venezuela’s Falling Crude Oil Production Drives Oil Prices Higher
The EIA estimates that Venezuela’s crude oil production decreased by 45,000 bpd (barrels per day) to 1,465,000 bpd in April—compared to March.
Which Gas-Weighted Stocks Are Outperforming Their Peers?
On October 16–23, 2017, natural gas–weighted stocks collectively fell 3.2%—compared to a 1.5% rise in natural gas futures.
Analysts: Summer Weather Could Drive Natural Gas Prices Higher
US natural gas inventories are 19% higher than their five-year average. High natural gas inventories could keep a lid on US natural gas prices.
Why did the WTI-Brent spread continue to narrow last week?
The WTI-Brent spread continued to narrow last week. The EIA recently revised its prediction for 2014′s average WTI-Brent spread.
Natural Gas Avenues for Investors: Performance in June 19 Week
Natural gas futures increased by 0.73% from June 12–18. For investors who don’t have easy access to the futures market, there are other ow-cost avenues to bet on natural gas prices.
Why oil prices continued a 2-week rally, driving energy stocks
Crude oil prices continued to rally, as a sharper-than-expected decrease in distillates helped to support prices. Oil prices have remained relatively high and stable.
Natural Gas Fund a Better Trade Than Natural Gas This Week
Natural gas futures fell 1.2% this week. For retail investors who don’t have easy access to the futures market, there are safer, low-cost avenues to bet on natural gas.
Lower natural gas and oil prices hit National Fuel Gas’s earnings
National Fuel Gas (NFG), which is seeing activism from GAMCO Investors, noted in its latest fiscal 3Q14 results that its earnings growth was driven by higher earnings in the Midstream and Upstream businesses.
Natural Gas Consumption and Trump Impact Natural Gas Prices
The EIA estimated that monthly US natural gas consumption fell by 3.6 Bcf per day to 62 Bcf per day in October—compared to the previous month.
Oil Rigs Are the Biggest Concern for Natural Gas
In the week ending November 10, 2017, the oil rig count rose by nine—the largest rise since June 30, 2017. Strong oil prices spurred the rise.
OPEC Crude Oil Production Is Breaking Records
The latest survey from Reuters suggested that OPEC’s crude oil production is breaking historical records. OPEC crude oil production hit 33.1 MMbpd in January 2016.
Analyzing the Futures Spread and Natural Gas Prices
On December 24, the natural gas futures for February 2019 closed at a premium of ~$0.35 to the February 2020 futures.
US Crude Oil Prices Are Almost Flat as the US Dollar Depreciates
WTI crude oil futures contracts for December delivery rose by 0.26% October 29. Crude oil prices rose due to technical buying activity and the depreciating US dollar.
Natural Gas Consumption Decreased in the Week Ending May 1
The EIA’s STEO was released on April 7. It forecasts that total natural gas consumption will average 76.3 Bcf/d in 2015 and 75.8 Bcf/d in 2016.
US Power Generation in 2015: Natural Gas up, Coal down
The EIA reported that power generation from natural gas increased in all regions of US in July, while generation from coal declined in all regions.