Alan Farquharson on debt reduction
From 2013 - Alan Farquharson - Range Resources · · Oil and Gas 360 - EnerCom
“We expect the debt to move from the current 2.8 number it is pro forma 2012 to under two by the end of this, so we think it's going to be able to be funded with just a little bit of capital outspending in the first several years of maybe $350 million.”
On , Alan Farquharson, Senior Vice President of Reservoir Engineering & Economics at RANGE RESOURCES CORP, spoke about debt reduction during 2013 - Alan Farquharson - Range Resources on Oil and Gas 360 - EnerCom.
About Alan Farquharson
In 2013, Alan Farquharson, then Senior Vice President at Range Resources, discussed the company's projected annual production growth rate of 20 to 25% over several years, targeting nearly three billion cubic feet per day. He stated that the company conducted a "bottoms up analysis" involving land, geology, drilling, completions, regulatory, and marketing teams to support this growth. Farquharson noted that Range Resources planned to export ethane to Europe in 2015 through a deal with INEOS. Farquharson said that cash flow was expected to grow faster than production, allowing the company to reduce its debt-to-EBITDA ratio from 2.8 in 2012 to under two by the end of 2013, with only modest capital outspending of around $350 million in the initial years. He added that 85% of capital was allocated to the Marcellus Shale, while other plays such as the horizontal Mississippian, Klein Shale, Wolfberry, Upper Devonian, and Utica were considered part of the company's emerging play inventory.