Rex Energy Preparing to File for Chapter 11 Bankruptcy?

We’ve often called Rex Energy, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), our “little energy company that could.” Rex has, in the past couple of years, had stiff challenges, at least on the financial front. It has swapped out old IOUs for new IOUs, converted debt (IOUs) into equity (shares of stock), sold off assets in other basins–a whole lotta stuff to keep on drilling (see our Rex Energy stories here). More recently the company was threatened (for a second time) by NASDAQ with de-listing its stock (see Rex Energy Once Again Threatened with NASDAQ De-listing). Last week Rex issued a fourth quarter and full year 2017 operational update (below). The update shows a mixed bag: 4Q17 production numbers beat 4Q16 numbers. But when you look at all of 2017 vs 2016, 2017 production was down. However, it wasn’t last week’s update from Rex, but rather an SEC 8K filing that caught our eye. Publicly traded companies are required to file a Form 8K with the Securities and Exchange Commission to notify investors of “specified events that may be important to shareholders.” Among the list of specified events is filing for bankruptcy. Rex’s 8K filing from last week does NOT say they have, or will, file for bankruptcy. However, it DOES say they are in talks with noteholders about that possibility. The 8K filed last week includes two term sheets for filing a prepackaged Chapter 11 bankruptcy. We reached out to Rex for comment but did not hear back by the time this story was published. We will include their response here if they do respond. Here’s what we found when searching through the 8K filing…

Please Login to view this content. (Not a member? Join Today!)
You do not have permission to view the comments.

Please Login to post a comment