SEC Filings

10-Q
RANGE RESOURCES CORP filed this Form 10-Q on 07/30/2018
Entire Document
 

(8) SUSPENDED EXPLORATORY WELL COSTS

We capitalize exploratory well costs until a determination is made that the well has either found proved reserves or that it is impaired. Capitalized exploratory well costs are included in natural gas and oil properties in the accompanying consolidated balance sheets. If an exploratory well is determined to be impaired, the well costs are charged to exploration expense in the accompanying consolidated statements of operations. We do not have any suspended exploratory well costs as of June 30, 2018 or December 31, 2017.

(9) INDEBTEDNESS

We had the following debt outstanding as of the dates shown below (bank debt interest rate at June 30, 2018 is shown parenthetically). No interest was capitalized during the three months or six months ended June 30, 2018 or the year ended December 31, 2017 (in thousands).

 

 

June 30,

2018

 

 

 

December 31,

2017

 

Bank debt (3.8%)

$

1,314,000

 

 

$

1,211,000

 

Senior notes:

 

 

 

 

 

 

 

4.875% senior notes due 2025

 

750,000

 

 

 

750,000

 

5.00% senior notes due 2023

 

741,531

 

 

 

741,531

 

5.00% senior notes due 2022

 

580,032

 

 

 

580,032

 

5.75% senior notes due 2021

 

475,952

 

 

 

475,952

 

5.875% senior notes due 2022

 

329,244

 

 

 

329,244

 

Other senior notes due 2022

 

590

 

 

 

590

 

Total senior notes

 

2,877,349

 

 

 

2,877,349

 

Senior subordinated notes:

 

 

 

 

 

 

 

5.00% senior subordinated notes due 2023

 

7,712

 

 

 

7,712

 

5.00% senior subordinated notes due 2022

 

19,054

 

 

 

19,054

 

5.75% senior subordinated notes due 2021

 

22,214

 

 

 

22,214

 

Total senior subordinated notes

 

48,980

 

 

 

48,980

 

Total debt

 

4,240,329

 

 

 

4,137,329

 

Unamortized premium

 

5,394

 

 

 

6,027

 

Unamortized debt issuance costs

 

(38,561

)

 

 

(34,550

)

Total debt net of debt issuance costs

$

4,207,162

 

 

$

4,108,806

 

Bank Debt

In April 2018, 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 13, 2023. 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 provides for a borrowing base subject to redeterminations annually by May and for event-driven unscheduled redeterminations. As of June 30, 2018, our bank group was composed of twenty-seven financial institutions with no one bank holding more than 5.8% of the total facility. 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. On June 30, 2018, bank commitments total $2.0 billion and the outstanding balance under our bank credit facility was $1.3 billion, before deducting debt issuance costs. Additionally, we had $281.4 million of undrawn letters of credit leaving $404.6 million of committed borrowing capacity available under the facility. During a non-investment grade period, 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 0.25% to 1.25% or LIBOR borrowings at the LIBOR Rate (as defined in the bank credit facility agreement) plus a spread ranging from 1.25% to 2.25%. 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 LIBOR loans to base rate loans or to convert all or any of the base rate loans to LIBOR loans. The weighted average interest rate was 3.7% for second quarter 2018 compared to 2.6% for second quarter 2017. The weighted average interest rate was 3.5% for first six months 2018 compared to 2.5% for first six months 2017. A commitment fee is paid on the undrawn balance based on an annual rate of 0.30% to 0.375%. At June 30, 2018, the commitment fee was 0.35% and the interest rate margin was 1.75% on our LIBOR loans and 0.75% on our base rate loans.

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