NEWS RELEASE
RANGE CUTS DEBT SHARPLY
FORT WORTH, TEXAS, OCTOBER 2,
2003…RANGE RESOURCES CORPORATION (NYSE: RRC) today announced that in the first nine months
of 2003 it had reduced its debt by $88 million or roughly 24%. At
Approximately $18 million of the reduction was attributable to the application of excess
cash flow to debt repayment and $20 million resulted from retiring convertible
debt at a discount. The final $50 million was achieved through the
exchange of a new issue of 5.9% convertible preferred stock for debt. The preferred stock has no redemption
requirements and is therefore included in stockholders’ equity. During the third quarter, the Company also issued
$100 million of 7.375% Senior Subordinated Notes to redeem higher cost debt which
had a shorter maturity. In combination,
debt retirement and the refinancing reduced the Company's annual fixed charges
by approximately $4 million.
Commenting, John H. Pinkerton, the Company’s President,
said, “In nine months, we reduced debt by 24% while increasing stockholders’
equity by more than $70 million. At
September 30, our debt-to-capitalization ratio fell to approximately 50%, the
first time in several years we have achieved this key financial metric. With lower debt and growing cash flow, the
Company's debt has fallen to less than two times current cash flow. This translates into added financial
flexibility and enhances our ability to pursue
our strategy of drill bit growth coupled with complementary acquisitions.”
RANGE
RESOURCES CORPORATION (NYSE: RRC) is an independent oil and gas company operating in
the Permian, Midcontinent,
Except for historical information, statements made
in this release, including those relating to anticipated future production
growth and acquisitions are forward-looking statements as defined by the
Securities and Exchange Commission.
These statements are based on assumptions and estimates that management
believes are reasonable based on currently available information; however,
management’s assumptions and the Company’s future performance are subject to a
wide range of business risks and uncertainties and there is no assurance that
these goals and projections can or will be met.
Any number of factors could cause actual results to differ materially
from those in the forward-looking statements, including, but not limited to,
the volatility of oil and gas prices, the costs and results of drilling and
operations, the timing of production, mechanical and other inherent risks
associated with oil and gas production, weather, the availability of drilling
equipment, changes in interest rates, litigation, uncertainties about reserve
estimates, and environmental risks. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements. Further information on risks and uncertainties is available in the
Company’s filings with the Securities and Exchange Commission, which are
incorporated by reference.
2003-23
Contact:
Karen Giles
(817) 870-2601
www.rangeresources.com