Rex Energy

Rex Energy, a pure play driller focused totally on the Marcellus/Utica, released their third quarter production and price realizations update yesterday. It is a short update (below) that does not include Rex’s financials. We’ve seen this with a few companies–they release what is typically the “good news” first and then the other shoe drops a few weeks later. So we’ll keep a sharp eye out for Rex’s financial update when that gets published. In the meantime, Rex’s production in 3Q15 was up 14% from 3Q14, but down slightly–6%–from 2Q15 (last quarter). Rex explains why…
Read More “Rex Energy 3Q15: Production Up 14% from 3Q14, Down 6% from 2Q15”

We continue to bring you news about what may seem to be esoteric and perhaps not relevant for most MDN readers–but we think it is important. Yesterday we told you about an increase in “short selling” of Gastar Exploration’s stock (see Negative Sign: Short Selling of Gastar’s Stock Increases 12%). Previously we told you about a decrease in short selling for Magnum Hunter Resources’ stock (see Positive Sign: Short Selling of Magnum Hunter’s Stock Decreases). For a background on short selling–what it is and why it’s important–see our quick tutorial (“Short Selling” – An Important Signal for Marcellus-Related Companies). In essence, when investors “short sell” a stock they’re betting the price of the stock is heading down, which is not a sign of a healthy company. Today’s news: short selling of Rex Energy’s stock decreased by 19% for the last two weeks of September. That’s a positive sign that investors are beginning to believe Rex’s stock (i.e. the health of the company) will improve…
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Pennsylvania-based Marcellus driller Rex Energy, which we’ve long called our “little energy company that could, and does,” has had a string of bad news this year. Even though production was up 61% in the second quarter of 2015, revenue was down 37% (see Rex Energy Financial Update for 2Q15: Rev Down 37%). Rex’s stock is down more than 80% over the past year, down 37% in just the past 3 months (see Analyst Says Don’t Worry Even Though Rex Energy’s Stock Down 80%). It should be pointed out that Rex is not the only company facing tough times since the price of oil and gas crashed a year ago. Even with plenty of bad news, here is a spot of good news for Rex: the company’s bankers aren’t throwing in the towel just yet…
Read More “Rex Energy’s Bankers Recommit to $350M Credit Line”

Pennsylvania-based Marcellus driller Rex Energy, which we’ve long called our “little energy company that could, and does,” has taken a beating in the stock market. Rex’s stock is down more than 80% over the past year (down 37% in the past 3 months) and the company appears on David Fessler’s “Oil Company Death List” (see 19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica). Is it curtains for our little Marcellus driller that could? End of the line? Dallas Salazar, an analyst at CapGainr in Austin, Texas who writes for the Seeking Alpha investors website, says don’t sweat it–Rex is going to be “just fine”…
Read More “Analyst Says Don’t Worry Even Though Rex Energy’s Stock Down 80%”

We now have “the rest of the story” for Rex Energy for second quarter 2015. Last week Rex released a partial update for 2Q15. At the time we used the production numbers they released with the prices they received for that production to calculate simple, back-of-the-envelope numbers for revenue, predicting Rex would show a revenue slide of around 16% from 2Q14 to 2Q15 (see Rex Energy 2Q15: Production Up 61%, MDN Provides Missing Rev # s). Yesterday Rex released their financials for 2Q15. How’d we do? Seems our estimate was rather rosy. Rex’s revenue went down 37% year over year–due to the lower commodity prices they received ($72.9 million in 2Q14 to $45.8 million in 2Q15). Rex’s revenue slide is typical of drillers across the country. However, when you factor in all of Rex’s expenses, the picture becomes a bit cloudier. Rex’s net income (net loss) year over year was minus 1,990% ($8.96 million for net income in 2Q14 compared to to minus $151.8 million in 2Q15). But when you scratch beneath the surface you find Rex took a one-time “impairment” hit of $117.8 million in 2Q15. What’s that? Essentially the value of their leases and assets went down–on paper. That $117.8 million “loss” was not a cash loss–just an accounting loss on paper. If you remove the impairment charge from the mix, Rex’s net income for 2Q15 would have been minus $34.0 million, a “mere” 279% decrease year over year…
Read More “Rex Energy Financial Update for 2Q15: Rev Down 37%”

Yesterday Rex Energy issued a second quarter 2015 “production and price realization” update–the first such update we’ve seen like it. It’s sort of a cherry-picking of the data and presenting only portions–perhaps in advance of poor financial information they’ll issue for 2Q15? Rex, our “little energy company than can and does” has plenty to boast about. Production for all hydrocarbons year over year increased an impressive 61%, from 128.8 million cubic feet equivalent per day (MMcfe/d) in 2Q14 to 206.8 MMcfe/d in 2Q15. But the second part of this brief update, in chart form, shows the prices they receive by hydrocarbon. Those prices are lot lower–through no fault of Rex’s–year over year. MDN has done some arithmetic to compare Rex’s revenues in 2Q14 and 2Q15. Here’s what we found…
Read More “Rex Energy 2Q15: Production Up 61%, MDN Provides Missing Rev # s”

A reshuffling of senior management has taken place at Rex Energy. The current president and chief operating officer (COO), Pat McKinney, is leaving the company “to pursue an opportunity in the investment banking industry.” Rex’s CEO, Tom Stabley, will assume the role of president and will henceforth become president & CEO. Robert Ovitz, senior vice president for operations at Rex since only last fall, will become the new COO. Ovitz previously worked for Noble Energy for 13 years and was the guy who established Noble’s presence in the Marcellus Shale in PA and WV…
Read More “Rex Energy Reshuffles the Top Management Deck after COO Departs”