1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Holly LaFon
Holly LaFon
Articles (6821) 

Wallace Weitz Comments on Range Resources

May 22, 2012 | About:
Wallace Weitz commented on Range Resources (RRC) in his first-quarter letter:

Range Resources (RRC—$58) is a domestic natural gas exploration and production company. Its "crown jewel" is in the Southwest Pennsylvania portion of the Marcellus field. New techniques for producing oil and gas from shale have led to a several-fold increase in the U.S.'s estimated gas reserves and a temporary glut in available gas across the country. As a result, gas prices have plunged to 10+ year lows and gas producers' stocks are out of favor. Range has a very low cost of production, is increasing its natural gas liquids and oil production, and can continue to reinvest at attractive returns, even at today's very low gas prices. For a variety of both supply- and demand-related reasons, we would expect gas prices to rise from today's depressed $2.15 per mcf in future years. Change happens slowly for both producers and consumers of energy, but over the next 5-10 years, we believe Range can produce very good returns for us. (We also own Southwestern Energy (SWN—$31), a stock with a similar investment thesis.)

Rating: 4.0/5 (9 votes)

Comments

Please leave your comment:


GuruFocus has detected 6 Warning Signs with Range Resources Corp $RRC.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

User Generated Screeners


pbarker46Shiller PE
pbarker46No losses for ten years
pbarker46BV growth
OGCAMGJames Li Screen1
OGCAMGJames Li screen
marco.forzanicheap in Uptrend
pbarker46Low payout & hist. PB
mmitch14Fundamentals
adsantani1Predictability
foxjames1GROWTH
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK