Range Resources Corporation announces that its bank group recently reaffirmed its $1.5 billion borrowing base at the regularly scheduled semi-annual redetermination. Notwithstanding the $1.5 billion approved amount, Range elected to maintain the $1.25 billion commitment amount. The Range bank group consists of 26 financial institutions with no single bank holding more than 5% of the total commitment. There was no change in interest rates, fees or repayment terms. The credit facility maturity date remains October 2012. Under terms of the credit facility, the borrowing base is determined twice each year by the bank group utilizing bank estimates of reserves and future oil and gas prices. The next redetermination is scheduled for October 1, 2009.
Roger Manny, Range’s Executive Vice President and Chief Financial Officer, commented “We are pleased that our lending institutions have reaffirmed our existing borrowing base, acknowledging our continued drilling success, reserve growth and low cost structure. Range remains focused on exercising financial discipline and maintaining its financial flexibility. With one of the lowest cost structures in the industry and 81% of our 2009 natural gas production hedged at an average floor price of $7.62 per mcf, we are well-positioned to continue to record solid financial results in 2009 despite the lower commodity price environment.”