Many in the industry think forming an MLP is the way to create value today. But Range Resources Corp. studied MLPs back in 2002 and decided not to form one, chief executive John Pinkerton revealed at John S. Herold Inc.'s Pacesetters conference.
"One, we really want to focus on one company and one set of shareholders. It's too hard already without forming a second entity to manage. Two, we didn't want to create an MLP as an acquisition vehicle because those [stripper wells] are not the kind of reserves we want
to buy.
"Three, I think investors will figure this out: Why buy reserves for $4 an Mcf through an
MLP when you can buy them for $2 through a C-Corp?"
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