Struggling Gas Producers Find Debt Markets Open But Pricey

摘要

Independent gas producers are finding a much-needed market for their debt as they stare down a wall of maturities in the coming years.But investor demands for higher interest rates on their bonds means the financial lifeline is coming at an increasingly high price.Two of the largest US gas producers have been able to sell almost $2.3 billion in bonds since the start of the year.Range Resources sold $550 million in debt due 2026 through a private placement,while EQT sold a combined $1.75 billion in two tranches.Range,whose focus is on the Appalachian Basin,said it will use proceeds to pay down $500 million in debt that is coming due in 2021 and 2022.But while Range's refinancing will remove some short-term concerns about its ability to repay its debts even as US gas prices remain persistently low,it significantly raised the cost of capital for the company.