Range Resources (NYSE:RRC) Marcellus Volumes Double

Range Resources (NYSE:RRC) is looking good with its Marcellus Shale projects, as volume has doubled, and going into 2011, it's expected to double again.

Ticonderoga said, "Range Resources announced that production from the Marcellus Shale has exceeded the company’s targeted year-end exit rate of 200 MMcf/d. That means Marcellus volumes have doubled during the course of this year and are expected to double again to more than 400 MMcf/d by year-end 2011...However, while we think the 2010 NAV growth for RRC will be relatively strong, we won’t see confirmation of that until 2010 results are released in February. Given the bearish sentiment around gas markets, RRC’s relatively high 2011 P/CF multiple (9.3 vs. group median of 6.3), and the fact that the company is spending 2x its 2010 CF (1.5x 2011), we would not be surprised to see some weakness in the stock. Investors with a positive view on gas prices in late 2011 or 2012 should look for buying opportunities on the down days. This is good news but not unexpected, as the company has been on track to meet this target all year."

Ticonderoga maintains a "Buy" on Range Resources, which was trading at $42.21, up $0.34, or 0.81 percent, as of 11:52 AM EST. Ticonderoga has a price target on them or $45.