Range Exiting North Louisiana in $335M Deal After Assets Fail to Perform

Range Resources Corp. has announced a deal to divest its Cotton Valley Sands Terryville Complex assets in North Louisiana, reaching an agreement with Castleton Resources LLC for up to $335 million. 

The deal comes at a low point in the commodity cycle, considering that Range took on the assets in 2016 with the $4.4 billion all-stock acquisition of Memorial Resource Development Corp. Two years later it became evident that Range was considering a sale after the properties underperformed, prompting the company to scale back in favor of core assets in the Marcellus Shale. 

Range would gross $245 million of proceeds under the deal with Castleton, with the potential for $90 million of additional proceeds that depend on future commodity prices. Range would also retain certain midstream...