Range Resources Repurchases $130 Million in Shares Amid Market Undervaluation

Range Resources intends to reduce its leverage to 0.6x from 1.2x by the end of the year, the Marcellus shale producer said in its earnings report.

Range Resources Repurchases $130 Million in Shares Amid Market Undervaluation

Based in Fort Worth, Texas, Range Resources retains significant Marcellus inventory on 460,000 net acres in southwestern Pennsylvania. (Source: Hart Energy, Range Resources logo by rafapress / Shutterstock.com)

Range Resources Corp. took advantage of the market’s undervaluation of its stock to repurchase 4.5 million of its shares while staying on track to lower its leverage to 1x by the third quarter, the company said in its July 25 earnings report.

In the report, Range Resources CEO Jeff Ventura, said the company continues to view share repurchases as a compelling investment, “given what we see as a significant disconnect between Range’s share price and the underlying value of our assets at current commodity futures pricing.”

Some analysts were surprised that the company, based in Fort Worth, Texas, had spent about $130 million in the quarter repurchasing shares at an average price of $28.85 per share.

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Darren Barbee

Darren Barbee is senior editor for Oil and Gas Investor magazine.