TO: Investors and Analysts
FROM: Roger S. Manny, Executive Vice President and CFO DATE: March 23, 2015
RE: Annual Borrowing Base Approval

MEMORANDUM


Range's existing $3 billion Borrowing Base and $2 billion Commitment Amount under its $4 billion bank credit facility have been approved by its lenders. Pursuant to the terms of the credit agreement, the Borrowing Base is reviewed once a year and the current Borrowing Base will continue through May 1, 2016. The facility matures in October, 2019. The outstanding principal balance drawn under the credit facility at December 31, 2014 was $723 million.
In addition, the debt to EBITDAX covenant of 4.25x, applicable during the non-investment grade period, was replaced with an EBITDAX to Interest Expense covenant of 2.5x. The existing PV9 proved reserves value to debt covenant of 1.5x will apply until Range has two investment grade ratings. At December 31, 2014, the ratio of the Company's EBITDAX to Interest Expense was 7.4x and the PV9 Proved Reserves Value to Debt was 2.2x.
As this reaffirmation is our first under an annual Borrowing Base redetermination process, and it occurred during a period of markedly lower oil and gas prices, the approval reflects the strength and resilience of our high quality asset base and low cost structure. The covenant change is another step in Range's long history of prudent balance sheet management and is a better measure for the Company's ability to manage the credit extended by our bank group.
If you have questions, please do not hesitate to call or email.
Rodney Waller, Senior Vice President
817-869-4258 rwaller@rangeresources.com
David Amend, Investor Relations Manager
817-869-4266 damend@rangeresources.com
Laith Sando, Research Manager
817-869-4267 lsando@rangeresources.com
Michael Freeman, Senior Financial Analyst
817-869-4264 mfreeman@rangeresources.com

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