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Franco-Nevada Adds to its U.S. Energy Interests, Initiates ATM Equity Program & Provides Details for Release of Q2 Results
Franco-Nevada Adds to its U.S. Energy Interests, Initiates ATM Equity Program & Provid...
About this update from Franco-nevada Corporation
[{"type":"text","content":"\n\n\n\nFranco-Nevada Adds to its U.S. Energy Interests, Initiates ATM Equity Program & Provides Details for Release of Q2 Results\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nFranco-Nevada Adds to its U.S. Energy Interests, Initiates ATM Equity Program & Provides Details for Release of Q2 Results\nCanada NewsWire\nTORONTO, July 19, 2019\n\n\n\n(in U.S. dollars unless otherwise noted)\n TORONTO, July 19, 2019 /CNW/ - \nMarcellus Royalty Acquisition\nFranco-Nevada has entered into an agreement to acquire from Range Resources Corporation an overriding royalty interest on acreage in the Marcellus Shale for a gross purchase price of $300 million. The acquisition has an effective date of March 1, 2019 and is expected to close shortly. The royalty is calculated as 1% of gross production less allowed deductions from approximately 350,000 net acres of Range's working interest position in Washington, Western Allegheny and Southern Beaver Counties in Pennsylvania. The royalty applies to existing production and future development from the Marcellus formation as well as future potential development from the Utica and Upper Devonian formations. The royalty is registered on title and is a direct interest in real property.\nThe Marcellus is one of the most prolific and active gas and liquids plays in North America. Range's acreage is in a liquids rich portion of the Marcellus giving it one of the most cost competitive energy positions in North America. Range has a track record of growing reserves and production from its asset base. Since the effective date, the royalty has generated approximately $9 million in revenue, with roughly half of the revenue generated from natural gas liquids and condensate. At current commodity prices, revenue for 2020 is expected to be approximately $25 million growing to approximately $30 million per annum in five years. The royalty provides exposure to a significant inventory of undeveloped drilling locations capable of supporting cash flow for several decades. \nFranco-Nevada's revenue is still projected to exceed 80% from gold equivalent ounc...