Shares of oil and natural gas company Range Resources Corp. rose on Wednesday after it reported a better-than-expected third-quarter profit as transportation costs fell and production rose.
THE SPARK: Fort Worth, Texas-based Range Resources had already announced production and pricing before its earnings were released late Tuesday, Jefferies analyst Biju Perincheril wrote. But costs came in lower than expected, prompting investors to buy on Wednesday. Adjusted net income of 35 cents per share was a nickel better than expected by analysts surveyed by FactSet.
THE ANALYSIS: Range Resources has made "significant progress" in working through a backlog of wells that had been drilled but not yet turned into sales, wrote KeyBanc Capital Markets analyst Jack Aydin in a note on Wednesday.
"We believe RRC has a clear runway to driving consistent production, earnings and cash flow growth for the foreseeable future," he said.
SHARE ACTION: Up $2.76, or 3.7 percent, to $77.40 in afternoon trading. The shares have a 52-week range of $61.03 to $85.23.