Range Announces Asset Sales, Enhanced Financial Resources, and Initiation of Share Repurchase Program
October 21 2019 - 8:00AM
RANGE RESOURCES CORPORATION (NYSE: RRC)
today announced multiple transactions demonstrating continued
success in enhancing balance sheet strength through debt reduction
and the expansion of available liquidity. Additionally, given
continuing success in debt reduction, Range also initiated a share
repurchase program.
Range has increased bank commitments from $2.0
billion to $2.4 billion. The borrowing base of $3.0 billion remains
unchanged and the maximum facility amount remains $4.0 billion.
Range also announced the sale of an additional
0.5% proportionately reduced overriding royalty interest for gross
proceeds of $150 million. Similar to previously announced royalty
sales, the overriding royalty interest applies to 350,000 net
surface acres in southwest Appalachia. The transaction closed in
September and is effective as of March 1, 2019. Annualized cash
flow associated with this overriding royalty sale is approximately
$12 million, based on first half 2019 pricing. Annualized interest
expense is expected to decline by approximately $7 million,
offsetting a significant amount of the cash flow associated with
the royalty sale.
Range is also announcing that its Board of
Directors approved the initiation of a $100 million share
repurchase program, beginning in October 2019. The share repurchase
program will be executed at times deemed appropriate by Range
management and will be funded from asset sale proceeds, free cash
flow generation, and/or other potential financial transactions as
and when the repurchases occur.
Commenting on these announcements, Jeff Ventura,
the Company’s CEO and President said, “Over the last year, Range
has executed on approximately $1.1 billion in asset sales, making
substantial progress on our strategic objective of reinforcing
financial strength. The increase in lender commitments enhances
liquidity and demonstrates the resiliency of Range’s assets and
business in the current commodity environment. Maintaining and
further enhancing financial strength is a core principle of Range’s
strategy, and debt reduction remains a priority. In parallel, we
believe repurchasing shares at a substantial discount to intrinsic
value represents a compelling opportunity to create significant
long-term shareholder value.”
RANGE RESOURCES CORPORATION (NYSE:
RRC) is a leading U.S. independent natural gas, NGL and
oil producer with operations focused in stacked-pay projects in the
Appalachian Basin and North Louisiana. The Company pursues an
organic development strategy targeting high return, low-cost
projects within its large inventory of low risk development
drilling opportunities. The Company is headquartered in Fort Worth,
Texas. More information about Range can be found at
www.rangeresources.com.
This release contains certain “forward-looking
statements” within the meaning of federal securities laws,
including within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 that are not
limited to historical facts, but reflect Range’s current beliefs,
expectations or intentions regarding future events. Words
such as “may,” “will,” “could,” “should,” “expects,” “plan,”
“project,” “intend,” “anticipate,” “believe,” “outlook”,
“estimate,” “predict,” and similar expressions are intended to
identify such forward-looking statements.
All statements, except for statements of
historical fact, made within regarding activities, events or
developments the Company expects, believes or anticipates will or
may occur in the future, such as those regarding future well costs,
well productivity, future liquidity and financial resilience,
future capital efficiencies, future shareholder value, capital
spending, anticipated drilling and completion activity, and future
guidance information are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These statements are based on assumptions and estimates that
management believes are reasonable based on currently available
information; however, management's assumptions and Range's future
performance are subject to a wide range of business risks and
uncertainties and there is no assurance that these goals and
projections can or will be met. Any number of factors could cause
actual results to differ materially from those in the
forward-looking statements. Further information on risks and
uncertainties is available in Range's filings with the Securities
and Exchange Commission (SEC), including its most recent Annual
Report on Form 10-K. Unless required by law, Range undertakes
no obligation to publicly update or revise any forward-looking
statements to reflect circumstances or events after the date they
are made.
Range Investor Contact:
Laith Sando, Vice President – Investor
Relations817-869-4267lsando@rangeresources.com
or
Range Media Contact:
Mark Windle, Manager of Corporate
Communication724-873-3223mwindle@rangeresources.com
www.rangeresources.com
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