NEW YORK, June 14 - An expected rise in natural gas prices and a large purchase of land that could yield vast amounts of it has energy company Range Resources Corp (RRC.N) well placed to see its beaten down shares soar, according to a report in the latest edition of Barron's.
The Texas-based exploration company controls some 900,000 acres of the so-called Marcellus Shale, which is believed to contain great quantities of recoverable natural gas.
"If Range's drilling proves as successful as fans hope, the company's revenue could surge far, far beyond the current $1.3 billion a year," the financial newspaper said.
Range's CEO told Barron's that if the Marcellus Shale exploration proves to be as big as some are predicting, "our company will be 10 times bigger than it is."
The futures market has projected a significant rise in natural gas prices by December as an improving economy and curtailed drilling help reduce oversupply.
"That could sharply boost Range's earnings, and not just from the Marcellus," Barron's said.
A Sanford Bernstein analyst quoted in the report said Range has one of the best growth profiles of the peer group and forecast shares could hit $62.
Range shares closed at $46.81 on the New York Stock Exchange on Friday.
The Texas-based exploration company controls some 900,000 acres of the so-called Marcellus Shale, which is believed to contain great quantities of recoverable natural gas.
"If Range's drilling proves as successful as fans hope, the company's revenue could surge far, far beyond the current $1.3 billion a year," the financial newspaper said.
Range's CEO told Barron's that if the Marcellus Shale exploration proves to be as big as some are predicting, "our company will be 10 times bigger than it is."
The futures market has projected a significant rise in natural gas prices by December as an improving economy and curtailed drilling help reduce oversupply.
"That could sharply boost Range's earnings, and not just from the Marcellus," Barron's said.
A Sanford Bernstein analyst quoted in the report said Range has one of the best growth profiles of the peer group and forecast shares could hit $62.
Range shares closed at $46.81 on the New York Stock Exchange on Friday.
