FORT WORTH, Texas, Oct. 21, 2019 (GLOBE NEWSWIRE) -- 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.
