Ranger Oil Corporation announced an increase in its borrowing base under its revolving credit facility to $950 million, reflecting its ongoing growth in producing reserves, while simultaneously reducing leverage. This was the third announced increase year-to-date, totaling approximately 60%. Ranger chose to increase its elected commitment amount by 25% to $500 million, consistent with its commitment to maintain robust liquidity while executing its business plan to profitably grow, capture accretive acquisitions and return significant cash to shareholders.
Ranger President and CEO Darrin Henke said, "We appreciate our bank syndicate partners for their continued confidence in our business plan and our ongoing focus on disciplined cash-on-cash value creation. The substantial increase in our borrowing base this year reflects the strong growth in our proved producing reserves through highly accretive organic investments and value-adding acquisitions while simultaneously reducing leverage and strengthening our balance sheet."
Balance Sheet Update
As of Sept 26, 2022, the Company had $400 million of senior unsecured notes and approximately $192 million drawn, net of cash, on its revolving credit facility, reflecting the closing of previously announced bolt-on acquisitions. At the end of the second quarter, Ranger's net debt/LTM adjusted EBITDAX ratio was approximately 0.8x. The Company expects this metric to continue to strengthen through year-end, inclusive of ongoing initiatives to return cash to shareholders.
