What a Fund's $15 Million Bet Says About This Volatile Natural Gas Stock

Dallas-based Requisite Capital Management disclosed a buy of Range Resources (NYSE:RRC), increasing its position by 147,197 shares with a value change of approximately $4.76 million in the third quarter, per a November 12 SEC filing.

What Happened

According to a U.S. Securities and Exchange Commission (SEC) filing dated November 12, Requisite Capital Management increased its stake in Range Resources by 147,197 shares from the previous quarter. The reported position at quarter-end stood at 406,232 shares valued at $15.29 million.

What Else to Know

This buy brings Range Resources to 2.57% of the fund’s reportable AUM, making it the fifth-largest holding.

Top holdings after the filing:

• NYSEMKT: IVV: $106.88 million (17.9% of AUM)
• NASDAQ: GPIX: $106.77 million (17.9% of AUM)
• NASDAQ: GPIQ: $79.48 million (13.3% of AUM)
• NYSEMKT: RSP: $37.81 million (6.3% of AUM)
• NYSE: RRC: $15.29 million (2.6% of AUM)

As of Monday, RRC shares were priced at $34.83, up 5% in the past year but underperforming the S&P 500, which is up 16% in the same period.

Company Overview

Company Snapshot

• Range Resources produces and markets natural gas, natural gas liquids (NGLs), and oil, with primary operations in the Appalachian region of the United States.
• The company generates revenue through the exploration, development, and acquisition of natural gas and oil properties, selling production to utilities, industrial users, and midstream companies.
• It serves utilities, petrochemical end users, marketers, and processors as its main customer base.

Range Resources is a leading independent producer of natural gas and NGLs in the United States, operating a large portfolio of wells and acreage in the Appalachian Basin. The company leverages its scale and operational expertise to efficiently extract and market hydrocarbons to a diverse set of industrial and utility customers.

Foolish Take

Volatility cuts both ways, and companies that can self-fund operations, repurchase stock, and maintain flexibility tend to emerge stronger when cycles turn. Range Resources is doing just what long-term investors might want energy producers to do during volatile commodity cycles. In the third quarter, the company produced $248 million in operating cash flow and $279 million before working capital changes, all while keeping net debt near $1.2 billion. That cash supported $56 million in share repurchases and $21 million in dividends, even as natural gas prices remained uneven.

Operationally, Range averaged 2.23 Bcfe (billions of cubic feet equivalent) per day of production, with roughly 69% natural gas. Meanwhile, unit costs continued to edge lower, reinforcing the company’s ability to stay profitable through price swings. This matters when you consider where this position sits in the broader portfolio. Unlike the fund’s core ETF-heavy exposure, Range represents a smaller, more tactical bet on cash-flow durability rather than index momentum.

Glossary

AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm.
Dividend yield: Annual dividends paid by a company divided by its share price, shown as a percentage.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Holding: The amount of a particular security owned by an investor or fund.
Outperforming: Achieving a higher return than a specified benchmark or index over a given period.
Appalachian Basin: A major natural gas and oil-producing region in the eastern United States.
Natural gas liquids (NGLs): Hydrocarbon products like propane and butane separated from natural gas during processing.
Midstream companies: Firms that transport, store, and market oil, natural gas, and NGLs between production and end users.
Quarter-end: The last day of a fiscal quarter, used for financial reporting and position measurement.
52-week high: The highest price at which a security has traded during the past year.
Independent producer: An energy company focused on exploration and production, not integrated with refining or retail operations.
Portfolio: The collection of investments held by an individual or institution.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.