Research Update: Range Resources Corp. Upgraded To 'BB-' On Debt Paydown, Improving Cash Flows; Outlook Stable; New Notes Rated

Ft. Worth, Texas-based oil and gas exploration and production company Range Resources announced the call of its $850 million senior unsecured notes due 2026, to be funded with $500 million of new unsecured notes due 2030, cash on hand, and a slight draw on its revolving credit facility, resulting in over $300 million of absolute debt reduction. In addition, we expect strong natural gas prices coupled with meaningfully improved natural gas liquids (NGL) price realizations to result in higher cash flows this year, leading to meaningfully improved credit measures. Therefore, we raised our issuer credit rating on Range to 'BB-' from 'B+'. At the same time, we affirmed our 'BB-' issue-level rating on the company's senior unsecured debt and assigned

...- Ft. Worth, Texas-based oil and gas exploration and production company Range Resources announced the call of its $850 million senior unsecured notes due 2026, to be funded with $500 million of new unsecured notes due 2030, cash on hand, and a slight draw on its revolving credit facility, resulting in over $300 million of absolute debt reduction. - In addition, we expect strong natural gas prices coupled with meaningfully improved natural gas liquids (NGL) price realizations to result in higher cash flows this year, leading to meaningfully improved credit measures. - Therefore, we raised our issuer credit rating on Range to '##-' from 'B+'. - At the same time, we affirmed our '##-' issue-level rating on the company's senior unsecured debt and assigned a '##-' rating to the new $500 million senior unsecured notes due 2030. - The stable outlook reflects our expectations that funds from operation (FFO) to debt will rise meaningfully above the 30% area over the next two years....

Research Update