We Are Removing Range Resources (RRC) from Investing Ideas

08/02/18 10:34AM EDT

Below is a note written by CEO Keith McCullough on why we're removing Range Resources (RRC) from the long side of Investing Ideas today:

Since I’m obviously in top-down risk management mode of inflation as a market exposure (we see headline US inflation peaking and rolling over in the coming months), this is largely a macro call. Commodities, as an asset class, are broadly breaking down to 3 month lows for good reasons, fully loaded with our #ChinaSlowing view.

So, now that the “good news” of a better than bad RRC quarter is out of the way, I have no bullish catalysts until next quarter. In the meantime, I’d rather come back to this lower and establish a better costs basis for you then. There’s no change to Al Richards fundamental view of the asset’s gross undervaluation.

***No change to Energy analyst Alec Richards' fundamental long thesis on Range Resources. Click here to read our analyst's original report on the company.

© 2019 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.