Range Announces Asset Sales That Will Total $634 Million
19 July 2019 - 11:00PM
RANGE RESOURCES CORPORATION (NYSE: RRC) today
announced that it has agreed to sell a 2% proportionately reduced
overriding royalty interest in 350,000 net surface acres in
southwest Appalachia for gross proceeds totaling $600
million. 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, while excluding
shallower and deeper horizons. The properties produced
approximately 1.9 Bcfe net per day in the first quarter of 2019 and
annualized cash flow associated with these overriding royalty sales
is expected to approximate $48 million, based on first half 2019
pricing.
Range also completed the sale of certain
non-producing acreage in Pennsylvania for gross proceeds of $34
million that closed in June 2019. The properties sold included
approximately 20,000 acres in northwest Armstrong County.
Sale processes to monetize additional non-core assets remain
underway.
The royalty interest transactions are scheduled
to close during July 2019 with proceeds utilized to repay amounts
outstanding under the Company’s revolving credit facility.
The combined gross proceeds of $634 million will reduce total debt
by approximately 17%. Annual interest expense is expected to
decline by approximately $30 million and offset a significant
amount of the cash flow reduction associated with the royalty
sales.
“Following the expected closing of these
transactions, Range will have executed a $1 billion reduction in
absolute debt over the past 12 months as the Company strengthens
the business through organic free cash flow generation and asset
sales”, said Jeff Ventura, CEO and President of Range
Resources. “These asset sales once again highlight the
significant intrinsic value of our assets. Over the past
year, Range will have generated asset sale proceeds that equate to
approximately 75% of our current market cap through the divestment
of assets with a net impact to annual cash flow of less than
4%. Harvesting value from our asset base through these
divestitures coupled with capital efficient operations positions
Range for future success through commodity price cycles.”
J.P. Morgan Securities LLC acted as the
financial advisor to Range on the overriding royalty sales.
Vinson & Elkins LLP acted as legal advisor.
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.
SOURCE: Range Resources Corporation
Range Investor Contact:
Laith Sando, Vice President – Investor
Relations817-869-4267lsando@rangeresources.com
Range Media Contact:
Mark Windle, Manager of Corporate
Communications724-873-3223mwindle@rangeresources.com
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