Range Resources closes sale of Marcellus shale asset

Range Resources sold working interest of 23% covering 10,900 net acres with net production of 22 Mmcf per day

FORT WORTH, TX – Troubled oil and gas producer Range Resources Corporation today announced that it has completed the sale of its Bradford County, Pennsylvania non-operated assets.

After purchase price adjustments based upon a Jan. 1st effective date, Range received approximately $110 million of sales proceeds at the closing plus retaining the net cash flow since the effective date.

In early Feb., Range signed a purchase and sale agreement covering its non-operating Marcellus interest in Bradford County for approximately $112 million.

Range sold an average working interest of 23 per cent covering approximately 10,900 net acres with net production of approximately 22 Mmcf per day.

Range will include the Bradford County operations in its operations until the closing date in its first quarter reported operations. The net proceeds were used to reduce debt and other corporate purposes.

This monetization further strengthens the company’s financial position by reducing leverage and enhancing liquidity. After the sale, the borrowing base under Range’s revolving credit facility remains unchanged at $3 billion.

Range Resources weaknesses include its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk, according to TheStreet.com.

Range Resource Corporation’s stock closed up by 3.65 per cent to $31.84 in Monday’s trading session, considerably lower than the high in May 2015 of almost $65 a share.