Range Resources to repay revolver borrowings with asset-sale proceeds

By Sarah Lizee

Olympia, Wash., July 19 – Range Resources Corp. plans to repay amounts outstanding under its revolving credit facility using proceeds from asset sales totaling $634 million, according to a press release.

The company announced Friday that it 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.

Range also completed the sale of certain non-producing acreage in Pennsylvania for gross proceeds of $34 million that closed in June.

The combined gross proceeds of $634 million will reduce total debt by about 17%, the company said.

Annual interest expense is expected to decline by about $30 million and offset a significant amount of the cash flow reduction associated with the royalty sales.

Range Resources is an oil and natural gas producer based in Fort Worth.

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