Range Resources Set for a Major Rebound?
Investors got some big news out of Range Resources today.
The company released data about its hydraulic fracturing, or fracking, procedure, that proved it was not damaging to the surrounding environment. Fracking is a process by which natural-gas drillers like RRC use large amounts of water with some chemical additives to boost production, and there had been concerns from both environmentalists and the Environmental Protection Agency that it could contaminate drinking water.
But there have never been any documented cases of that contamination. And today Range Resources disclosed that, for its Marcellus shale wells, 99.86% of its drilling fluid consists of water and sand, with just 0.14% comprising highly diluted chemicals. RRC was the first company to “open its books,” so to speak, in this way, and the stock rallied accordingly, climbing almost $1, or 2.2%, on a flat day for the Dow.
“I think maybe this the beginning of a major turn in the stock,” Cramer said.
That is big news, especially because RRC is down 14% year-to-date. The energy sector as a whole has fallen 8.4%, no doubt thanks in part to BP’s spill in the Gulf of Mexico. Cramer doesn’t think Range Resources deserved the beating, though. And like Verizon, NVIDIA and Jabil Circuit, he’s predicting this company could be ready for a comeback over the next six months.
Is he right? Watch Cramer’s full interview with CEO John Pinkerton to find out.
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