Yesterday Rex Energy, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), signed paperwork for a new $300 million loan–due to be paid back by April 2021. Rex immediately withdrew $144 million from the loan, to pay back other loans it owed. When all is said and done with paying back this and that, Rex says they will have $110 million they can use for their Marcellus/Utica drilling program. Rex CEO Tom Stabley said that will be enough money to help fund the company’s two-year development program, including “the potential to access the M&A market.” Curious statement. We take that to mean that Rex is potentially in the hunt to add large acreage tracts (or perhaps buy and add a small driller) to its existing operations. Here’s the company statement from yesterday…
Yesterday Rex Energy, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), signed paperwork for a new $300 million loan–due to be paid back by April 2021. Rex immediately withdrew $144 million from the loan, to pay back other loans it owed. When all is said and done with paying back this and that, Rex says they will have $110 million they can use for their Marcellus/Utica drilling program. Rex CEO Tom Stabley said that will be enough money to help fund the company’s two-year development program, including “the potential to access the M&A market.” Curious statement. We take that to mean that Rex is potentially in the hunt to add large acreage tracts (or perhaps buy and add a small driller) to its existing operations. Here’s the company statement from yesterday…