Range Resources at 56 Times Profit Cheap in Shale Boom: Real M&A

Range Resources Corp.’s drilling operations in Pennsylvania’s Marcellus Shale natural-gas field are so coveted that the most expensive exploration and production company in America is now a takeover target.

While Range is trading at 56 times estimated 2012 earnings, the highest of any U.S. exploration and production company valued at more than $5 billion, the company also owns the second-most leases in the Marcellus Shale, according to data compiled by Bloomberg. With that region estimated to hold enough gas to supply the U.S. for six years, analysts project the Fort Worth, Texas-based company’s profits will triple over the next three years, the data show.