What is Range Resources Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Range Resources's Probability of Financial Distress (%) is 0.02%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Range Resources's Probability of Financial Distress (%)
For the Oil & Gas E&P subindustry, Range Resources's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Range Resources's Probability of Financial Distress (%) Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Range Resources's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Range Resources's Probability of Financial Distress (%) falls into.
Range Resources Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -8.56 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.02% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Range Resources (Range Resources) Business Description
Traded in Other Exchanges
Address
100 Throckmorton Street, Suite 1200, Fort Worth, TX, USA, 76102
Fort Worth-based Range Resources is an independent exploration and production company with that focuses entirely on its operations in the Marcellus Shale in Pennsylvania. At year-end 2022, Range's proved reserves totaled 18.1 trillion cubic feet equivalent, with net production of 2.1 billion cubic feet equivalent per day. Natural gas accounted for 70% of production.
Executives
| Dori Ginn |
officer: Principal Financial Officer |
100 THROCKMORTON SUITE 1200, FORT WORTH TX 76102 |
| Charles G. Griffie |
director |
1201 LAKE ROBBINS DR, THE WOODLANDS TX 77380 |
| Reginal Spiller |
director |
100 THROCKMORTON STREET, SUITE 1200, FORT WORTH TX 76102 |
| Greg G Maxwell |
director |
600 N. DAIRY ASHFORD, HOUSTON TX 77079 |
| Erin W Mcdowell |
officer: SVP & General Counsel |
100 THROCKMORTON STREET, SUITE 1200, FORT WORTH TX 76102 |
| Mark Scucchi |
officer: SVP & CFO |
100 THROCKMORTON STREET, SUITE 1200, FORT WORTH TX 76102 |
| Dennis Degner |
officer: SVP & COO |
100 THROCKMORTON STREET, SUITE 1200, FORT WORTH TX 76102 |
| James M Funk |
director |
FOUR ALLEGHENY CENTER, 9TH FLOOR, PITTSBURGH PA 15212-5355 |
| Jeffrey L Ventura |
officer: President and COO |
C/O RANGE RESOURCES CORPORATION, 100 THROCKMORTON, SUITE 1200, FORT WORTH TX 76102 |
| David P Poole |
officer: Sr. VP & General Counsel |
100 THROCKMORTON, SUITE 1200, FORT WORTH TX 76102 |
| Steven D Gray |
director |
125 W. MISSOURI AVE., SUITE 450, MIDLAND TX 79701 |
| Steffen E Palko |
director |
|
| Margaret K Dorman |
director |
C/O SMITH INTERNATIONAL INC, PO BOX 60068, HOUSTON TX 77205 |
| Sailingstone Capital Partners Llc |
10 percent owner |
100 WAUGH DRIVE, SUITE 600, HOUSTON TX 77007 |
| Settles Kenneth L Jr |
10 percent owner |
1 CALIFORNIA STREET, SUITE 3050, SAN FRANCISCO CA 94111 |
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