S&P's Range Resources ratings unaffected

Standard & Poor's said that Range Resources Corp.'s (BB-/positive) announcement that it intends to acquire the oil and gas exploration and production firm Stroud Energy Inc. does not affect the rating or outlook on the company. Range is acquiring Stroud for about $450 million.

The agency said purchase price reflects current high valuations for oil and gas assets and that entry into the Barnett shale poses operational challenges. However, Range indicates that it will finance a significant portion of the purchase price with equity, resulting in a generally favorable effect on credit quality.

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