Range Resources Corp. (NYSE: RRC) said April 16 it renewed and extended its $4 billion revolving credit facility, which the company expects to drive development of its Marcellus and North Louisiana assets.
The new five-year agreement with a syndicate of 27 financial institutions maintains a borrowing base of $3 billion with $2 billion in commitments. The maturity of the facility was extended to April 2023.
The facility will provide the Fort Worth, Texas-based E&P with “committed long-term liquidity from a highly diversified group of experienced energy lenders,” said Roger S. Manny, Range's executive vice president and CFO who is set to retire after the company's annual stockholder meeting in May.
“The credit facility renewal and five-year extension was significantly over-subscribed, demonstrating the quality of Range’s assets and confidence in the company’s creditworthiness,” Manny said in a statement.
Range, which according to the company's website pioneered the Marcellus Shale in 2004, holds aobut 875,000 net acres in Appalachia in southwestern Pennsylvania. The company's Marcellus asset has 58 trillion cubic feet equivalent of resource potential, according to a recent company presentation.
The company also holds about 140,000 net acres in the Terryville play in North Louisiana, which Range acquired for $4.4 billion in 2016 from Memorial Resource Development Corp.
For 2018, Range is targeting roughly 11% corporate growth within cash flow with a capital program of $941 million, about 85% of which will be allocated to the Marcellus.
“We believe the renewed and extended credit facility allows us to focus on further strengthening the balance sheet while supporting the development of our high-quality assets,” Manny said.
Recommended Reading
The OGInterview: Petrie Partners a Big Deal Among Investment Banks
2024-02-01 - In this OGInterview, Hart Energy's Chris Mathews sat down with Petrie Partners—perhaps not the biggest or flashiest investment bank around, but after over two decades, the firm has been around the block more than most.
Petrie Partners: A Small Wonder
2024-02-01 - Petrie Partners may not be the biggest or flashiest investment bank on the block, but after over two decades, its executives have been around the block more than most.
From Restructuring to Reinvention, Weatherford Upbeat on Upcycle
2024-02-11 - Weatherford CEO Girish Saligram charts course for growth as the company looks to enter the third year of what appears to be a long upcycle.
JMR Services, A-Plus P&A to Merge Companies
2024-03-05 - The combined organization will operate under JMR Services and aims to become the largest pure-play plug and abandonment company in the nation.
New Fortress Energy Sells Two Power Plants to Puerto Rico
2024-03-18 - New Fortress Energy sold two power plants to the Puerto Rico Electric Power Authority to provide cleaner and lower cost energy to the island.