Range Resources (RRC) Message Board

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Gold/Mining/Energy : Range Resources (RRC)

RRC 36.34

+0.6%

Jan 23 9:30 AM EST

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To: doug doan who wrote ()	5/4/2000 6:39:00 PM
From: David Lee Smith	Read Replies (2) of 82

Bob, I came up with those ball park figures from looking at past 10k's and 10Q's. Look at annual production and divide it by cash flow needed to breakeven and it looks like around $1 to me based upon the last four Q's. Add back non-cash charges from the cash flow statement and then divide by annual production (I assumed a 8% annual decline rate to production even though this company has been able to grow it...I feel my analysis is quite conservative), you get about $2.40-$2.60 per mcf. Above that is gravey!! You are right it looks like First Reserve has a lot more to sell. That means that it could be a while before the stock rises, but hey, isn't that what value investing is? Buy cheap and sell when the underlying value is realized?

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