Canaccord Genuity Plays it 'Sensible' with Range Resources (RRC)

Canaccord Genuity reiterates their Buy rating on Range Resources Corporation (NYSE: RRC) and raises the price to $70 (from $58) with the belief that shaping production growth around seasonal weakness is "sensible". Canaccord anticipates a natural gas weakness this summer/fall.

Canaccord Genuity analyst Karl Chalabala speaks for them saying, "We are re-allocating our 2015 and 2016 production volumes to represent Range's shift away from weak seasonal pricing this year and next, resulting in Q4/15 and Q1/16 being peak volumes before holding production roughly flat through spring-to-fall injection season again next year as well. We believe this becomes common through the space through challenging near-term basis environments, firm transport agreement dependent. We believe this shaping of volumes to capture seasonal pricing by Range, as well as Antero, and the current curtailments by Cabot and Chesapeake, ultimately tamp down the potential price response when producers hit the market with volumes to take advantage of better seasonal pricing all at once. On an absolute basis, however, we believe selling into winter pricing should result in better realizations and EBITDA even at current strip pricing."

For an analyst ratings summary and ratings history on Range Resources click here. For more ratings news on Range Resources click here.

Shares of Range Resources closed at $64.10 yesterday.

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