If you have a long-term outlook for your portfolio, now is the time to add RRC. The company is #1 in the Marcellus Shale and they have a big stake in the Utica Shale. My Fair Value Estimate is $88.50/share, compared to First Call's Price Target of $92.50. Within the next 90 days I believe we have a good shot at seeing natural gas prices over $5.00/mcf. The weather will have a lot to do with it and right now the winter forecast is for a very cold December in the eastern half of the U.S. - Dan
FORT WORTH, TX--(Marketwired - Oct 17, 2014) - RANGE RESOURCES CORPORATION (NYSE: RRC) today announced that it has amended and restated its revolving credit facility. The new five-year agreement with a syndicate of twenty-nine financial institutions has a maximum facility size of $4 billion, with an initial borrowing base of $3 billion and $2 billion in commitments. This represents an increase in the borrowing base of $1 billion and increased commitments of $250 million. The agreement also reduces drawn borrowing costs by 25 basis points and grants Range the option to release all collateral upon the receipt of a single investment grade rating. The maturity of this facility was extended to October 16, 2019.
Roger S. Manny, Range's Executive Vice President & CFO, commented, "This new agreement was structured to support our stated goal of multi-year 20% - 25% annual growth and is a sign of the Company's operational and financial strength. Range's current proved reserves support the $3 billion borrowing base and significantly more should we choose to request it. The agreement was carefully structured to create a strong, diversified bank group while also providing features consistent with credit facilities of investment grade companies. We believe this new agreement demonstrates Range's continued progress in building a robust balance sheet which will support our future growth."
Separately, Standard & Poor's Ratings Services upgraded Range's corporate credit rating to BB+ on October 16, 2014. In September Moody's Investors Service upgraded Range's outlook to 'Positive' with a current corporate family rating of Ba1.
RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading independent oil and natural gas producer with operations focused in Appalachia and the Midcontinent region of the United States. The Company pursues an organic growth strategy targeting high return, low-cost projects within its large inventory of low risk, development drilling opportunities. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com.