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Here's Why You Should Retain Range Resources (RRC) Stock

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Range Resources Corporation‘s (RRC - Free Report) shareshave gained 18.1% in the past six months compared with the 8% gain of the composite stocks belonging to the industry.

What’s Favoring the Stock?

In its latest short-term energy outlook, the U.S. Energy Information Administration revealed its forecast of the Henry Hub spot average price, which indicates that the pricing scenario will continue to improve in the coming quarters. This can benefit the upstream operation of Range Resources, which carries a Zacks Rank #3 (Hold).

RRC has decades of low-risk drilling inventory in Appalachia, brightening its production outlook. The company has lower well costs per lateral foot than many other upstream players.

Range Resources has a strong focus on strengthening its balance sheet. Over the past several years, RRC has consistently reduced its net debt load. On a positive note, the company has the lowest emission intensity among the upstream companies in the United States.

Risks

In spite of the positive factors, RRC’s overall operations are significantly exposed to extreme oil and natural gas price volatility.

Stocks to Consider

Better-ranked players in the energy space include Evolution Petroleum Corporation (EPM - Free Report) , Profire Energy, Inc. (PFIE - Free Report) and Helix Energy Solutions Group, Inc. (HLX - Free Report) . While Evolution Petroleum and Profire Energy carry a Zacks Rank #2 (Buy), Helix Energy sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

Evolution Petroleum is touted as a key independent energy player through its ownership interests in onshore oil and natural gas properties in the United States.

Profire Energy is mainly focused on the oil and gas industry’s upstream, midstream and downstream transmission segments. PFIE has boosted that its legacy business is doing extremely well, thanks to the resumption of maintenance work of exploration and production players.

Helix Energy is a leading player and is well-poised to grow in the favorable crude pricing environment since it primarily provides specialty services to the offshore energy industry.

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