UPDATE 1-Range Resources reiterates production outlook
(Recasts; adds details)
Oct 7 (Reuters) - Range Resources Corp (RRC.N: Cotización), an independent oil and gas company, reiterated its third-quarter and full-year production outlook, and said it has no exposure to the Lehman Brothers bankruptcy.
The company said it still sees production of 384 million cubic feet equivalent of natural gas (Mmcfe) to 386 Mmcfe a day for the third quarter and reaffirmed its outlook of a 19 percent production growth for 2008.
Range said it hedged about 69 percent of its estimated fourth-quarter gas production at a floor price of $8.84 per thousand cubic feet of gas (mcf) and 60 percent of its 2009 estimated gas production at a floor price of $8.31 per mcf.
The company's bank group has reconfirmed its $1.5 billion borrowing base and $1 billion commitment amount maturing in October 2012, Range Resources said.
Its bank group comprises 24 commercial banks holding between 3.0 percent and 5.3 percent of the total facility, and that allows for significant flexibility should there be additional consolidation within the banking sector, the company said.
The 2009 capital expenditure budget, which the company will submit to its board later this year, is expected to be in line with its estimated 2009 cash flow and generate a double-digit production growth of 15 percent to 20 percent, Range Resources said.
The company's shares, which have shed 42 percent so far this year, closed at $29.72 Monday on the New York Stock Exchange. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Deepak Kannan)
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