Range Resources disclosed on Wednesday that its former chairman and CEO, John Pinkerton, has been selling stock in recent weeks, in part, “to satisfy a margin call.”
In a statement, the Fort Worth-based producer said Pinkerton, who retired on Jan. 1, 2012 but remains a director, has been involved in several real estate projects since leaving the company, most recently a large mixed-use development in Florida.
“The company understands the sales of company stock by Mr. Pinkerton beginning on October 29, 2015, have been to satisfy a margin call as well as to generate cash to fund the Florida real estate development and for other purposes,” the statement reads.
According to filings with the Securities and Exchange Commission, Pinkerton has sold more than 250,000 shares of Range stock spread out over several dates for prices ranging from $26 to $36 a share. The value of the sales exceeds $7 million.
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This week, Range stock fell to a nine-year low as the price of natural gas fell to its lowest level since 1999. The stock (ticker: RRC) closed Wednesday down 5 cents to $21.63. Range has lost about 60 percent of its value this year.
The company, which operates mainly in the Marcellus Shale in Pennsylvania and other states, in October reported a $301 million third-quarter loss, including a $502 million writedown on the value of assets. Its adjusted net income was $5.5 million, down from $62 million a year earlier.
Pinkerton served as CEO at Range for nearly 20 years. According to the SEC filings, he still directly owns more than 650,000 shares.