Business Context and Reporting Period
Company: Range Resources Corp
Filing Type: Form 8-K (Current Report)
Date of Report: October 2, 2025
Event: Entry into a Material Definitive Agreement (Amended and Restated Revolving Credit Agreement).
Key Financial Metrics and Facility Terms
This filing details the terms of a new credit facility rather than reporting operational financial results (revenue, profit, cash flow) for a specific period.
- Facility Type: Senior secured reserve-based revolving credit facility.
- Aggregate Maximum Principal: $4.0 billion.
- Borrowing Base: $3.0 billion.
- Total Lender Commitments: $2.0 billion.
- Letters of Credit Capacity: Up to $500 million.
- Maturity Date: October 2, 2030.
- Interest Margins (Non-Investment Grade):
- Alternate Base Rate: 0.75% to 1.75%.
- Term SOFR: 1.75% to 2.75%.
- Interest Margins (Investment Grade):
- Alternate Base Rate: 0.125% to 0.75%.
- Term SOFR: 1.125% to 1.75%.
- Commitment Fees: 0.375% to 0.50% (Non-Investment Grade); 0.125% to 0.25% (Investment Grade).
Material Changes and Covenants
The filing represents a material change in the company's capital structure through the replacement of prior credit arrangements with a new $4.0 billion facility.
Financial Covenants
- Debt-to-EBITDAX Ratio:
- Investment Grade Period (Moody's Baa3/S&P BBB- or better): Max 4.25 to 1.0.
- Otherwise: Max 3.75 to 1.0.
- Liquidity Ratio: Consolidated Current Assets to Consolidated Current Liabilities must be greater than or equal to 1.0 to 1.0.
Collateral and Security
- Non-Investment Grade Period: Secured by mortgages on oil and gas properties (PV-9 must represent at least 180% of total lender commitments), pledge of equity in restricted subsidiaries, and security interest in substantially all other assets.
- Investment Grade Period: Range may elect to release collateral and forego adding future guarantors.
Other Restrictions
- Limits on incurring indebtedness, granting liens, mergers, asset sales, distributions/dividends, and affiliate transactions.
- Hedging allowed up to 90% of Projected Volume.
Guidance, Outlook, and Risks
Management Commentary: The filing does not contain forward-looking operational guidance or management commentary regarding production or commodity prices. It focuses strictly on the terms of the credit agreement.
Risks and Contingencies:
- Default Events: Include nonpayment, covenant violations, cross-defaults, bankruptcy, and change in control. Default allows lenders to accelerate maturity.
- Borrowing Base Redetermination:
- Annual redetermination if available borrowing base exceeds commitments by $1.0 billion or more.
- Semi-annual redetermination if the contingency is not met (starting May 1, 2026).
- Automatic reduction possible upon divestitures or cancellation of hedging positions.
- Rating Dependency: Interest rates, fees, and collateral requirements are contingent on achieving an investment-grade rating from Moody's or S&P.
Key Facts for Investor Verification
- Verify the company's current credit rating status to determine applicable interest margins and collateral requirements.
- Confirm the current utilization of the $2.0 billion lender commitment versus the $3.0 billion borrowing base.
- Monitor compliance with the 3.75x (or 4.25x if investment grade) Debt-to-EBITDAX covenant.
- Review upcoming borrowing base redetermination dates (starting May 1, 2026) for potential capacity reductions.
- Assess the impact of the 180% PV-9 collateral requirement on asset flexibility during non-investment grade periods.