By Michael Dabaie
Range Resources Corp. (RRC) said it would sell a 2% proportionately reduced overriding royalty interest in 350,000 net surface acres in southwest Appalachia for gross proceeds of $600 million.
Shares were up 6%, to $5.43, in early trading.
The two separate transactions are effective as of March 1, 2019, and apply to existing and future Marcellus, Utica and Upper Devonian development on the subject leases.
Franco-Nevada Corp. (FNV, FNV.T) said it would acquire from Range Resources an overriding royalty interest on acreage in the Marcellus Shale for a gross purchase price of $300 million.
Independent natural gas, natural gas liquids and oil producer Range said it also completed the sale of some non-producing acreage in Pennsylvania for gross proceeds of $34 million that closed in June 2019.
The royalty interest transactions are scheduled to close during July with proceeds to repay the company's revolving credit facility. The combined gross proceeds of $634 million will reduce total debt by about 17%. Annual interest expense is expected to decline by about $30 million.
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