Ranger Oil Corp. launched a $100 million share repurchase program after reducing its leverage to the company’s previously stated target.

“We are proud to announce that at the end of the first quarter, Ranger had achieved its leverage target of less than 1.0x,” Darrin Henke, president and CEO of Ranger, commented in a company release on April 13.

Based in Houston, Ranger Oil is a pure-play independent oil and gas company engaged in the development and production of oil, NGL and natural gas, with operations in the Eagle Ford Shale in South Texas. As of March 31, Ranger had a net debt balance of approximately $521.6 million, down roughly $64.9 million, or 11%, from its net debt balance as of year-end 2021, the company release said.

“Due to our robust free cash flow profile and balance sheet strength, combined with a deep inventory of some of the most attractive oil-weighted drilling locations in North America, our board of directors has authorized a portion of our free cash flow to be returned to shareholders through opportunistic share repurchases,” Henke said. “This program is part of our strategy to maximize shareholder value through efficient deployment of our operational cash flow with a focus on risk-adjusted cash-on-cash returns.”

The share repurchase authorization is effective immediately and valid through March 31, 2023. The program is equivalent to approximately 6% of Ranger's current market cap, according to the company release.

“The company’s continued strong operational and financial performance allows us to pursue a number of key objectives in addition to share repurchases including continued deleveraging, disciplined consolidation, a reasonable fixed dividend, and measured organic investment,” Henke continued.

“As the company and market continue to evolve, we plan to regularly assess the optimal use of our internally generated cash flow for the long-term benefit of our shareholders.”