UK 06:32 Tuesday, 6 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Despite the market’s reaction, this morning’s announcement by Range Resources (RRL) leaves shareholders in this company with many of the usual guessing games we have come to expect. Why can’t new CEO Rory Scott Russell prove he is his own man and break from the past? Why do RNSs released under his watch still leave more important questions unanswered than answered?
Already a member? Sign in
• All premium articles
• Tom Winnifrith’s Bearcast
• Access to all the entire nearly 13 year archive
• ShareProphets Daily Newsletter
Cancel any time
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments
Duck and Dive
Excellent devil’s advocacy.
Imho, deals where you have to borrow money from your creditor in order to pay him back the cash or services he is lending you with his other hand are likely to end up in tears.
Range, like Vatukoula, are heading East.
punilux
Don’t mention Vatukoula in the RRL chatrooms as everyone gets upset. My back of envelope calculation is that Range will need approx. 2,000 bpd to repay 50m at 10%. Otherwise, existing shareholders might as well sign over the remaining assets as the dilution will give them less than 33% . Guess which prat holds shares in both?
Ben Turney
@Duck and Dive – interesting comparison to Vatukoula. I can see your point.
@punilux – I’d be interested to see your calculations, if you’d be prepared to share them. One point though, the RNS does say only the first tranche of $20million is at 10%. Another missing detail in the RNS is how much the remaining $30million will cost
punilux
550bpd (present output) cost of production on ground = money received. Therefore no “profit”.
1450bpd extra produces 33% “profit” based on sale @ $60 .
1450 X 365 X $20 = $10.5M
Additional cost to RRL is, say $10M (half their loan) and 10% interest = $11M
33% profit figure based on
A) Massive increase in management costs in last few months.
B) Increased labour costs once more than 3 rigs in use.
C) Possibility of tax relief etc. ending half way through 12 month period.
Of course it can be argued that “profit” will be higher/lower as can percentage of $20M loan used. If RRL are tied to using LO it could be argued that the services received might be charged at a higher rate.
I’m also not saying that RRL will only produce 2,000 bpd, just that it looked to be a break even figure.
As I said , back of envelope and am happy to be corrected or told decimal point in wrong place.