XML 26 R16.htm IDEA: XBRL DOCUMENT v3.23.2
Indebtedness
6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Indebtedness

(8) INDEBTEDNESS

We had the following debt outstanding as of the dates shown below. No interest was capitalized during the six months ended June 30, 2023 or the year ended December 31, 2022 (in thousands).

 

 

 

June 30,
2023

 

 

December 31,
2022

 

Bank debt

 

$

 

 

$

19,000

 

Senior notes:

 

 

 

 

 

 

4.875% senior notes due 2025

 

 

688,388

 

 

 

750,000

 

8.25% senior notes due 2029

 

 

600,000

 

 

 

600,000

 

4.75% senior notes due 2030

 

 

500,000

 

 

 

500,000

 

Total senior notes

 

 

1,788,388

 

 

 

1,850,000

 

Unamortized debt issuance costs

 

 

(15,733

)

 

 

(27,040

)

Total debt, net of debt issuance costs

 

$

1,772,655

 

 

$

1,841,960

 

Bank Debt

In April 2022, we entered into an amended and restated revolving bank facility, which we refer to as our bank debt or our bank credit facility, which is secured by substantially all of our assets and has a maturity date of April 14, 2027. The bank credit facility provides for a maximum facility amount of $4.0 billion and an initial borrowing base of $3.0 billion. The bank credit facility also provides for a borrowing base subject to periodic redeterminations and for event-driven unscheduled redeterminations. As of June 30, 2023, our bank group was composed of seventeen financial institutions. The borrowing base may be increased or decreased based on our request and sufficient proved reserves, as determined by the bank group. The commitment amount may be increased to the borrowing base, subject to payment of a mutually acceptable commitment fee to those banks agreeing to participate in the facility increase. Borrowings under the bank credit facility can either be at the alternate base rate (ABR, as defined in the bank credit facility agreement) plus a spread ranging from 0.75% to 1.75% or at the secured overnight financing rate (SOFR, as defined in the bank credit facility agreement) plus a spread ranging from 1.75% to 2.75%. The applicable spread is dependent upon borrowings relative to the borrowing base. We may elect, from time to time, to convert all or any part of our SOFR loans to base rate loans or to convert all or any of the base rate loans to SOFR loans. We had no outstanding balance on our credit facility during second quarter 2023. The weighted average interest rate was 4.1% for second quarter 2022. The weighted average interest rate was 8.4% for first six months 2023 compared to 3.4% for first six months of 2022. A commitment fee is paid on the undrawn balance based on an annual rate of 0.375% to 0.50%. At June 30, 2023, the commitment fee was 0.375% and the interest rate margin was 1.75% on our SOFR loans and 0.75% on our ABR loans.

As part of our redetermination completed in March 2023, our borrowing base was reaffirmed for $3.0 billion and our bank commitment was also reaffirmed at $1.5 billion. On June 30, 2023, we had no outstanding borrowings on our bank credit facility. Additionally, we had $292.9 million of undrawn letters of credit, leaving $1.2 billion of committed borrowing capacity available under the facility.

Early Extinguishment of Debt

In second quarter 2023, we repurchased in the open market $61.6 million principal amount of our 4.875% senior notes due 2025 at a discount. We recognized a gain on early extinguishment of debt of $439,000, net of the remaining deferred financing costs on the repurchased debt. Although we have no obligation to do so, we may continue, from time-to-time, to retire our outstanding debt through privately negotiated transactions, open market repurchases, redemptions or otherwise.

Senior Notes

If we experience a change of control, noteholders may require us to repurchase all or a portion of our senior notes at 101% of the aggregate principal amount plus accrued and unpaid interest, if any.

Guarantees

Range is a holding company that owns no operating assets and has no significant operations independent of its subsidiaries. The guarantees by our subsidiaries, which are directly or indirectly owned by Range, of our senior notes and our bank credit facility are full and unconditional and joint and several, subject to certain customary release provisions. The assets, liabilities and results of operations of Range and our guarantor subsidiaries are not materially different than our consolidated financial statements. A subsidiary guarantor may be released from its obligations under the guarantee:

in the event of a sale or other disposition of all or substantially all of the assets of the subsidiary guarantor or a sale or other disposition of all the capital stock of the subsidiary guarantor, to any corporation or other person (including an unrestricted subsidiary of Range) by way of merger, consolidation, or otherwise; or
if Range designates any restricted subsidiary that is a guarantor to be an unrestricted subsidiary in accordance with the terms of the indenture.

Debt Covenants

Our bank credit facility contains negative covenants that limit our ability, among other things, to pay cash dividends, incur additional indebtedness, sell assets, enter into certain hedging contracts, change the nature of our business or operations, merge, consolidate or make certain investments. We are required to maintain a maximum consolidated debt to EBITDAX ratio (as defined in the bank credit facility agreement) of 3.75x and a minimum current ratio (as defined in the bank credit facility agreement) of 1.0x. We were in compliance with applicable covenants under the bank credit facility at June 30, 2023.