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.
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