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

Dallas-based Requisite Capital Management disclosed a buy of Range Resources ( RRC +0.88%), 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 Metric Value Revenue (TTM) $2.87 billion Net Income (TTM) $573.78 million Dividend Yield 1% Price (as of Monday) $34.83 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...

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