Rex Energy

As they have in previous quarters, Rex Energy released only part of their first quarter 2017 update earlier this week. Rex released an operation update on Monday, but elected to not release (yet) a financial update. Rex has struggled. They are a smaller driller focused mainly on the Marcellus/Utica–headquartered in State College, PA. In 2016, Rex lost $109 million (see Rex Energy Lost $109M in ’16, Drilling to Hold in ’17, NGLs in ’18). In company’s 2016 production was down from the previous year (see Rex Energy 4Q & 2016 Update – Production Slips from 2015). In Monday’s quarterly update, Rex reports production slipping again, down 8.5% from 1Q16. Is Rex Energy still our “little engine that could?” What’s going on with Rex? Perhaps some of the clues can be found in the quarterly production update and latest PowerPoint we could find (from March)…
Read More “Rex Energy 1Q17: Production Drops 8.5%”

Earlier this week Rex Energy, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), released their fourth quarter and full year 2016 financial update and held an earnings call with analysts to discuss. The company released their operational update back in January (see Rex Energy 4Q & 2016 Update – Production Slips from 2015). On the earnings call, Rex officials said 2017 will be spent focusing on drilling in OH and PA to hold existing acreage. With that done, and with the planned Mariner East 2 going online later this year, Rex intends to focus on drilling for NGLs in 2018. Much of 2016 was spent drilling in the company’s Moraine East area in western PA, and Warrior North area in Carroll County, OH. Rex sold off “noncore” Utica assets in southeastern OH in 2016. The company lost $109 million in 2016, which is a vast improvement over losing $373 million in 2015. So things are looking up for our little driller who could…
Read More “Rex Energy Lost $109M in ’16, Drilling to Hold in ’17, NGLs in ’18”

Rex Energy, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), released their fourth quarter and full year 2016 operational update yesterday. As seems to be the trend with many drillers, Rex has released the “good news” about how they produced, etc. ahead of releasing their financial statements (which have tended to be the bad news). What do we find in the Rex update? Production of all hydrocarbons was up 12% when comparing 4Q16 with 4Q15, and up 6% when comparing all of 2016 with all of 2015. However, when you dig a little bit, you discover that Rex’s methane (dry gas) production was down slightly when comparing 2016 with 2015, which we attribute to lack of drilling new wells. Here’s the update…
Read More “Rex Energy 4Q & 2016 Update – Production Slips from 2015”

Rex Energy, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), has had its share of financial challenges (see our stories here). Even though in some respects the company has been on the ropes, it’s never gone down and continues to hang in there. Yesterday Rex issued a two-year operational and financial plan, no doubt to address investor concerns. Rex says in 2017 they will spend $80-$90 million on drilling. The company will run one drilling rig and with that rig drill 21.0 gross (11.1 net) wells, complete 26.0 gross (12.7 net) wells and place into sales 23.0 gross (11.2 net) wells. That’s all in 2017. For the year 2018, things are a bit more fuzzy. Rex says it thinks it will spend $20-$40 million (a big reduction) and use one rig to drill 4.0 gross (2.8 net) wells, complete 6.0 gross (3.8 net) wells and place into sales 9.0 gross (5.3 net) wells. Here’s Rex’s road map for the next two years…
Read More “Rex Energy’s 2-Year Plan: Scale-up in 2017, Scale-down in 2018”

Rex Energy, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), has had its share of financial challenges. It has swapped out IOUs for new IOUs, converted debt into equity (shares of stock), sold off assets in other basins–a whole lotta stuff to keep on drilling (see our Rex stories here). The company’s stock has taken a big hit over the past five years. The one thing we never read or heard about, however, was a threat to de-list the company’s stock. Rex’s stock (REXX) is traded on the Nasdaq Stock Exchange. So it was somewhat surprising to read a statement by the company, issued yesterday, that quotes Nasdaq as saying the exchange has decided to allow Rex’s stock to continue trading–for now. Apparently there was some doubt about it. Who knew? However, Rex has a deadline of June 17, 2017 “to regain compliance with Nasdaq’s minimum bid price requirement.” So Rex has been put on notice: Get the per-share price up, or you’re banished to the penny stock pink sheets. The company’s stock as of this morning was trading at 50 cents per share…
Read More “Rex Energy Stock Threatened with De-Listing by Nasdaq”

Rex Energy, the little Marcellus/Utica driller that could, swung things around in the third quarter. Yesterday Rex issued its third quarter update and the company is in the black–earning $5.4 million. No, it’s not much in the o&g world, but it’s a whole lot better than losing $95 million as they did in 3Q15. During 3Q16 Rex drilled 1 Marcellus and 3.5 Utica wells, completed several more wells and brought a variety of wells online in both the Marcellus and Utica. Here’s the full update with details on what Rex did in 3Q16…
Read More “Rex Energy 3Q16: Swings into the Black, Drills 4.5 New Wells”

Three months ago MDN told you that Rex Energy’s bankers had reaffirmed the company’s “borrowing base” as being worth $190 million (see Rex Energy’s $190M Borrowing Base Reaffirmed by Bankers). Rex is a pure play driller focused on the Marcellus/Utica. A company’s borrowing base is the value of its assets–in this case the value of the leases and oil/gas wells Rex owns. Those assets are used as collateral to back up loans and IOUs. Rex has plenty of both (see Rex Energy Swapping $631M in Private IOUs for Public IOUs). Three months later and once again Rex’s banks are saying those assets are still worth $190 million. Usually banks reevaluate the borrowing base every six months. For some reason they felt it necessary to do it sooner. However, in yesterday’s announcement from Rex, the company mentions that the next redetermination will happen in April 2017–six months from now. Must be the bankers are getting more comfortable with Rex’s finances…
Read More “Rex Energy Borrowing Base Re-Affirmed for $190M, 2nd Time in 3 Mos.”

In June MDN reported the news that Rex Energy had cut a deal to sell its Illinois Basin acreage for $40 million to Campbell Development Group (see Rex Energy Selling Illinois Basin Assets, Focus 100% on Marcellus). The deal is now done and Rex Energy is now a “pure play” (100%) Marcellus/Utica driller. Cool!…
Read More “Rex Energy Closes on Illinois Basin Sale, Now 100% Marc/Utica”

Rex Energy released their second quarter 2016 update yesterday. While production was up a small 2% over the same period last year, both operating revenue and profits were down. Operating revenue in 2Q15 was $35.8 million, revenue in 2Q16 was $31.2 million. The good news is that the bleeding is slowing. In 2Q15 Rex lost $153 million, while in 2Q16 Rex lost $55 million. At least it’s heading in the right direction. In Rex’s Moraine East Area (Butler County, PA) Rex drilled 5 gross (1.8 net) wells in 2Q16. Due to a delay in a gathering line, Rex did not (as previously expected) put the 4-well Fleeger II well pad online last quarter. In Rex’s Warrior North Area (Carroll County, OH), Rex placed the 3-well Goebeler pad and the 2-well Perry pad online. Below is the full update…
Read More “Rex Energy Production Up 2% in 2Q16, Bleeding Slows w/$55M Loss”

Today’s lead story on MDN is about Atlas Resource Partners’ plan to file a pre-packaged bankruptcy turning some $900 million of debt into ownership equity (see Atlas Resource Partners Filing for Bankruptcy Tomorrow). Another Marcellus/Utica company is doing something similar, but without filing for bankruptcy. In April MDN told you about Rex Energy’s plan to convert some outstanding debt into shares of stock (see Rex Energy Converts IOUs into Common Stock, Avoids Bankruptcy?). Rex is doing it again. Yesterday Rex announced they’ve cut an agreement with an unnamed investor to convert $43.5 million owed to that investor into shares of stock. By doing so, Rex not only saves paying back the $43.5 million, they’ll also save paying out an additional $11.1 million in interest payments that would have been due over the life of the loan. However, our understanding is that converting debt into equity (shares of stock) dilutes the ownership interest of all current stockholders. The only difference we can see between what Atlas is doing and what Rex is doing is that (so far) Rex has stayed out of bankruptcy court…
Read More “Rex Energy Deal Converts $43.5M of Debt into Stock Ownership”