Range Resources Corporation RRC announced the completion of the sale of its Nora assets.
Range Resources raised total proceeds of $865 million, after purchase price adjustments based upon an effective date of Nov 1. Nora operations for the full fourth quarter of 2015 will be included by the company.
The properties divested are located mainly in southwestern Virginia and incorporate about 3,500 operated wells and around 460,000 net acres in the Nora/Haysi combined fields.
Production for the third quarter from the divested Nora assets was 109 million cubic feet (Mmcf) per day. This was equivalent to 7.5% of Range Resources’ net production. The net proceeds were used to decrease debt by 24% from the Sep 30, 2015 balance.
The company's financial position is further strengthened by this monetization as it reduces leverage and boosts liquidity. The borrowing base under Range Resources' revolving credit facility remains unchanged, at $3 billion after the sale. Also, the sale is anticipated to decrease direct operating expenses, brokerage natural gas and marketing expenses as well as general and administrative expenses for 2016.
Range Resources is an independent oil and gas company, engaged in the exploration, development and acquisition of oil and gas properties, primarily in the southwestern, Appalachian and Gulf Coast regions of the United States.
The company’s southwestern operations include the Barnett Shale play in north central Texas, the Permian Basin in west Texas and eastern New Mexico as well as the East Texas Basin, the Texas Panhandle and the Anadarko Basin in western Oklahoma. Its Appalachian operations include tight-gas, shale, coal bed methane and conventional oil and gas production in Pennsylvania, Virginia, New York and West Virginia. The company’s Gulf Coast operations include Texas, Louisiana and Mississippi. It sells gas to utilities, marketing companies and industrial users.
Range Resources currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy sector are ReneSola Ltd. SOL, Energy Transfer Equity, L.P. ETE and Boardwalk Pipeline Partners, LP BWP. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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