Marcellus (Natural Gas & NGLs)


Location: SW Pennsylvania, United States
Operator: Range Resources
Royalty: 1% overriding royalty

Franco-Nevada has a 1% royalty on Range Resources Corporation’s (“Range’s”) operated position in Southwest Pennsylvania. Franco-Nevada acquired the overriding royalty interest in 2019 for a gross purchase price of $300 million.

The royalty is calculated as 1% of gross production less minor allowed deductions from approximately 350,000 net acres of Range’s working interest position in Washington, Western Allegheny and Southern Beaver counties in Pennsylvania. The royalty applies to existing production and future development from the Marcellus shale formation as well as future potential development from the Utica and Upper Devonian formations. The royalty is registered on title and is a direct interest in real property.

The Marcellus is one of the most prolific and active gas and liquids plays in North America. Range’s acreage is in a liquids-rich portion of the Marcellus giving it one of the most cost competitive energy positions in North America. Range helped pioneer the Marcellus shale in 2004 with the successful drilling of the Renz #1 well in Washington County, Pennsylvania. Since that time, Range has developed a track record of growing reserves and production from its asset base.

In 2020, Franco-Nevada received $20.4 million in revenue from the Marcellus royalty. Range estimates that they have approximately 3,300 undeveloped well locations in the Marcellus, the majority of which are on royalty lands. In 2020, Range drilled and completed 57 wells in the Marcellus on royalty lands, implying an inventory life of nearly 50 years at the 2020 development pace. There is additional potential in the Utica and Upper Devonian formations that have the potential to increase the longevity of the asset.


  • Diverse exposure to natural gas and natural gas liquids
  • Long life asset with strong underlying economics
  • Secure land title with exposure to undeveloped formations at depth

2020 2019 2018
Revenue to Franco-Nevada ($ million)1 $ 20.4 $ 18.0 $ –

1 Revenue refers to payments from effective date to year-end