Project Summit

An independent investment committee memo evaluating a hypothetical $2.0bn minority stake acquisition by a financial sponsor in Range Resources, a Marcellus-focused natural gas producer. The analysis builds a full net asset value (NAV) model across low/mid/high commodity price decks, benchmarks the entry price against trading comparables and Appalachian precedent transactions, and stress-tests fund-level returns across a range of entry prices and gas price assumptions.

The memo concludes that the proposed $41.50 entry price sits above fair value on a mid-case basis, generating a 9.0% IRR against a 12–15% target hurdle, and recommends either a lower entry price or structural downside protection (warrants/convertible preferred) rather than paying a premium for common equity exposure to commodity risk.

• Full NAV build with low/mid/high commodity price sensitivities ($18.85–$62.44/share)
• Trading comparables and precedent transaction benchmarking (EV/EBITDA, EV/production)
• Sources & uses, pro forma capital structure, and credit profile impact
• Value creation lever analysis (gas price, decline rate, well productivity, D&C costs)
• Fund-level IRR/MOIC sensitivity table across entry price and price deck scenarios
• Full risk matrix with mitigations and an indicative execution timeline