Range Resources (RRC) had no curtailments despite recent weakness in daily gas markets, while improving fundamentals for natural gas liquids and stronger export pricing should support cash flow into year-end, UBS Securities said Thursday in a note.
The company plans to continue reducing bank debt, but remains in position to increase shareholder returns as a percentage of free cash flow, according to the note.
UBS expects Range Resources to reach its 2.7 billion cubic feet equivalent per day growth target by year-end 2027, but remains flexible depending on pricing and the impact of weather on storage levels, the note added.
The brokerage models NGL premiums trending toward the higher end of management's flat to $1.00 per barrel range for H2. It expects Q4 premium increases to be supported by stronger Mont Belvieu pricing and the company's marketing flexibility, the brokerage said.
UBS kept a neutral rating on Range Resources and lowered its price target to $44 from $49.
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