Range Resources selling Permian Basin assets

http://seekingalpha.com/currents/post/1444161?source=email_rt_mc_re... 

Analysts say RRC doesn’t have the money to develop both its Permian holdings and leases in areas like the gas-heavy Marcellus Shale in Pennsylvania, where RRC's properties produce "wet gas" that includes large quantities of valuable liquids used in the chemicals business and thus may have a higher rate of return than the Permian holdings.

RRC stock is at 10 year high so why not issue more shares if it's just cash shortage. I hope a deal closes soon. Than I expect some big news for the Appalachian Basin.

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Replies to This Discussion

Permalink Reply by Tim Tarr on December 4, 2013 at 4:14am

Thought I'd add a few details

Most of this land is already HBP'ed.

Some current estimated valuations are:

Wells that are in production are worth ~$200MM

Undeveloped land ~$300-350MM

I'll bet they don't sell for less than $1.25B

Even at that $0.5B that will fund over 150 new Marcellus wells. With a payback in 18 months or less.

I suspect this is for something other than just Marcellus drilling. Once this deal closes I expect some BIG news.

Permalink Reply by Velva Mooney on December 11, 2013 at 10:24am

Do you know if the Hercules wells are producing in Washington County?

Permalink Reply by Tim Tarr on December 12, 2013 at 7:15am

Velva,

Sorry, no idea.

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