NEW YORK (TheStreet) -- Shares of Range Resources Corp. (RRC) are rising by 4.34% to $56.53 in mid-morning trading on Monday, after the company announced it has set its 2015 capital spending budget at $1.3 billion.
The independent natural gas, and natural gas liquids and oil company said its 2015 spending budget represents an 18% decrease when compared to its 2014 capital budget.
The company added that as a result of its improving capital efficiencies from its Marcellus activities, Range Resources is expecting to continue to deliver year-over-year production growth in the 20% to 25% range, despite the reduction in its capital budget.
Range Resources also announced today that its Utica/Point Pleasant well located in Washington County, Pennsylvania, achieved an average 24-hour test rate of 59 Mmcf per day, against simulated pipeline pressure and conditions during the initial flow back.
Separately, TheStreet Ratings team rates RANGE RESOURCES CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate RANGE RESOURCES CORP (RRC) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 6.3%. Since the same quarter one year prior, revenues rose by 41.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- RANGE RESOURCES CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, RANGE RESOURCES CORP increased its bottom line by earning $0.70 versus $0.06 in the prior year. This year, the market expects an improvement in earnings ($1.51 versus $0.70).
- The debt-to-equity ratio is somewhat low, currently at 0.95, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.37 is very weak and demonstrates a lack of ability to pay short-term obligations.
- RRC's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 33.80%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- Net operating cash flow has declined marginally to $213.42 million or 4.28% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, RANGE RESOURCES CORP has marginally lower results.
- You can view the full analysis from the report here: RRC Ratings Report