trending Market Intelligence /marketintelligence/en/news-insights/trending/tzerwhgd8xlsttywji30fq2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Range completes sale of overriding royalty from Pa. leases to reduce debt

Essential Energy Insights - September, 2020

Rate case activity slips, COVID-19 proceedings remain at the forefront in August

Bull market leaves US utilities behind in August

Utilities, midstream reckon with energy transformation on the horizon


Range completes sale of overriding royalty from Pa. leases to reduce debt

Range Resources Corp. closed the $300 million sale of a proportionately reduced 1% overriding royalty in its Washington County, Pa., leases, and will use the proceeds to reduce debt, according to an Oct. 15 news release.

The properties include about 300,000 net surface acres, which produced about 1.7 Bcfe net per day during the second quarter. The overriding royalty applies to current and future Marcellus, Utica and Upper Devonian development, excluding shallower and deeper formations. Range Resources plans to use net proceeds from the deal to reduce debt by an expected 7%. The debt reduction would lower annualized interest expense by roughly $15 million, resulting in a net reduction of about $10 million in the company's cash flow in 2019.

"This sale and corresponding debt reduction coupled with Range's consistent operational execution and beneficial exposure to improved liquids pricing — brings our projected year-end leverage below 3.0x debt to EBITDAX without additional sales," Range CEO Jeff Ventura said in the statement. "Range will continue to pursue asset sales to bring forward inventory value, high-grade the portfolio, and strengthen our financial position, with the focus of maximizing long-term shareholder returns."

Range will keep about 82% of net revenue interest on the Washington County acreage after the transaction closes. The company expects cash flow from the 1% overriding royalty to be about $25 million in 2019.

J.P. Morgan Securities LLC acted as financial adviser to the independent natural gas, NGL and oil producer on the transaction. Vinson & Elkins LLP acted as legal adviser.