Ranger Oil Announces $100 Million Share Repurchase Program

Ranger Oil Corporation told the media that the Board Directors approved $100 million share repurchase program. This news was alongside another announcement of the Company’s reduction of its leverage to its previously stated target.

On the last day of March 2022, Ranger Oil had a net debt balance of $521.6 million. That number meant an 11% down from its net debt. That is approximately $64.9 million down. 

Darrin Henke, President and Chief Executive Officer of Ranger, commented:

“We are proud to announce that at the end of the first quarter, Ranger had achieved its leverage target of less than 1.0x. Due to our robust free cash flow profile and balance sheet strength, combined with a deep inventory of some of the most attractive oil-weighted drilling locations in North America, our Board of Directors has authorized a portion of our free cash flow to be returned to shareholders through opportunistic share repurchases. This program is part of our strategy to maximize shareholder value by efficiently deploying our operational cash flow, focusing on risk-adjusted cash-on-cash returns.”

“The Company’s continued strong operational and financial performance allows us to pursue a number of key objectives. In addition to share repurchases including continued deleveraging, disciplined consolidation, a reasonable fixed dividend, and measured organic investment. As the Company and market continue to evolve, we plan to regularly assess the optimal use of our internally generated cash flow for the long-term benefit of our shareholders.” 

More about Range Oil and the terms and conditions on the Share Repurchase Program.

Range Oil Corporation is an independent oil and gas company located in Eagle Ford shale in South Texas. Their main priority is developing and producing oil, NGLs, and natural gas. 

After the approval of the $100 million shares repurchased program, the Company clarifies the terms and conditions for buying them.

The shares would be a Class A common stock, and it would be immediately effective and the validation up to March 31, 2023. The program’s equivalence is approximately 6% of Ranger’s current market capitalization. 

The shares purchase will happen in the open market from time to time. Also, it is valid to buy them through privately negotiated transactions.

You also might want to read “Oil company Ranger Oil announced 4Q and Full-Year 2021 results”

The Company’s plan is to purchase the shares from the available working capital and cash obtained by operating activities. It will have a variation that will depend on the value of the Class A common stock, general market, and economic conditions. 

At last, the Company hasn’t shared an exact amount of new repurchased shares. They have also clarified that the program can also be discontinued, suspended, or modified at any moment without prior notice. 

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