Natural Gas Update
Today I was invited back on Business News Network, Canada’s answer to CNBC. The presenters are charming and somehow always like to get me on when natural gas prices are plummeting – as if we haven’t noticed! But it did give me the opportunity to talk about Range Resources (RRC), one of our larger holdings in the sector. Last week RRC held an investor dinner to which I was invited. It was great to discuss their business in an informal setting, and while naturally nothing of a non-public nature was disclosed, it did reinforce my feeling that CEO Jeff Ventura leads a capable management team that’s hard-working and straight. Whether or not RRC really will ultimately access 60 Trillion Cubic Feet of natural gas, I assess that Jeff Ventura sincerely believes they have that much. It’s the upside case to be sure, but at $9BN in market cap with a solid, simple balance sheet they represent an attractive investment in the developing natural gas story. We are long RRC.