Range Resources to Sell Royalty Interest for $600 Million Gross Proceeds
July 19 2019 - 10:19AM
Dow Jones News
By Michael Dabaie
Range Resources Corp. (RRC) said it would sell a 2%
proportionately reduced overriding royalty interest in 350,000 net
surface acres in southwest Appalachia for gross proceeds of $600
million.
Shares were up 6%, to $5.43, in early trading.
The two separate transactions are effective as of March 1, 2019,
and apply to existing and future Marcellus, Utica and Upper
Devonian development on the subject leases.
Franco-Nevada Corp. (FNV, FNV.T) said it would acquire from
Range Resources an overriding royalty interest on acreage in the
Marcellus Shale for a gross purchase price of $300 million.
Independent natural gas, natural gas liquids and oil producer
Range said it also completed the sale of some non-producing acreage
in Pennsylvania for gross proceeds of $34 million that closed in
June 2019.
The royalty interest transactions are scheduled to close during
July with proceeds to repay the company's revolving credit
facility. The combined gross proceeds of $634 million will reduce
total debt by about 17%. Annual interest expense is expected to
decline by about $30 million.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
July 19, 2019 10:04 ET (14:04 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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