Energy Stocks To Buy #1 — Range Resources (RRC)
For investors looking for energy stocks in the Marcellus shale, the first stop has to be Range Resources (RRC). The firm holds one of the largest acreage positions in the region — around one million acres — and continues to be king in terms of production. In fact, RRC managed to increase its full production in 2013 by 25% over 2012’s numbers.
But RRC isn’t resting on its laurels.
Range continues to prospect on its properties and estimates that it has the potential to grow its proven reserves from a current 8.2 trillion cubic feet (Tcf) to a monster 64 Tcf. The other key for that reserve growth is that RRC’s sizable position in the Marcellus shale has it in the more profitable liquids producing regions of the play. Natural gas liquids (NGLs) production continues to grow at RRC — it was up 35% vs. last year’s numbers.
This production growth — along with some of the lowest costs around — have helped RRC stock generate constantly higher profits. Analysts predict that RRC stock will grow earnings per share by an average of 34% over the next five years. That makes RRC stock a powerful buy in the Marcellus.