Range Resources Corp (RRC)

[eFinanceMarkets]

$RRC Range Resources (NYSE:RRC) tumbled 10% in today's trade to its lowest level in 12 years following yesterday's announcement of a $941M capital budget for 2018 after spending $1.27B in 2017, ~10% above the planned $1.15B budget.

RRC says it plans to increase production at a 13% compound annual rate through 2022 on a debt-adjusted share basis, but Motley Fool's Matt DiLallo finds the forecast "a bit underwhelming" compared to rivals such as Antero Resources (NYSE:AR), which is planning for 20% annual production growth through 2020 and 15% in 2021-22.

The company sees its debt to EBITDA ratio falling to 2.7x in 2020 and below 2x by 2022, but DiLallo says AR's leverage should drop below 2x by next year.

RRC forecasts 2018 production in the Marcellus shale of 1.8B cfe/day, up 27% Y/Y, while keeping output flat for the next five years at its Terryville field in Louisiana.