Rex Energy Announces Sale of Ohio Utica Warrior South Asset
January 04 2017 - 7:00AM
Rex Energy Corporation (Nasdaq:REXX) (“Rex Energy”) today announced
that it entered into a purchase and sale agreement with Antero
Resources Corporation (“Antero”) pursuant to which Antero will
acquire the company’s Ohio Utica assets in the Warrior South Area.
Rex Energy is selling its entire interest in the assets and expects
to receive net proceeds at closing of approximately $30.0 million
(subject to customary closing and post-closing adjustments). The
assets that are being divested are non-core and were not included
in the company’s future development plans. Included in the sale are
14 gross wells and approximately 4,100 net acres in Guernsey, Noble
and Belmont Counties in Ohio; the assets are currently producing
approximately 9.0 Mmcfe/d. Rex Energy expects to use the proceeds
from the sale to pay down the revolving line of credit and for
general corporate purposes. The transaction is expected to close in
the first quarter of 2017, subject to customary closing conditions
and required approvals.
Upon the closing of the transaction, the company has received
approval from its bank lenders to maintain the existing $190
million borrowing base under its revolving credit facility.
“Rex Energy routinely evaluates our asset portfolio to align our
development plans with the strategic deployment of capital,” said
Tom Stabley, Rex Energy President and Chief Executive Officer.
“With limited opportunity to expand our development in Warrior
South, and high quality assets located in near proximity to
Antero’s operations, we view this transaction as a win-win for both
parties.”
Mr. Stabley continued, “This transaction is another in a series
of initiatives we’ve undertaken in the last 12 months to strengthen
our balance sheet and enhance Rex’s liquidity position. Once
completed, the sale of the Warrior South assets plus our previous
sale of the Illinois Basin and other non-core assets will have
generated over $71 million of additional liquidity.”
The company plans to update the market regarding its 2017 and
2018 development, capital, and financial plans and production
projections in conjunction with or shortly following the closing of
the Warrior South sale.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities and Exchange Act of 1934.
Forward-looking statements are based on current beliefs and
expectations and involve certain assumptions or estimates that
involve various risks and uncertainties, such as financial market
conditions, changes in commodities prices and the other risks
discussed in detail in the Company’s Annual Report on Form 10-K for
the year ended December 31, 2015 and other subsequent filings with
the Securities and Exchange Commission. Readers should not
place undue reliance on any forward-looking statements, which are
made only as of the date hereof. Rex Energy has no duty, and
assumes no obligation, to update forward-looking statements as a
result of new information, future events or changes in the
Company’s expectations.
About Rex Energy Corporation
Headquartered in State College, Pennsylvania, Rex Energy is an
independent oil and gas exploration and production company with its
core operations in the Appalachian Basin. The company’s strategy is
to pursue its higher potential exploration drilling prospects while
acquiring oil and natural gas properties complementary to its
portfolio.
For more information contact:
Investor Relations
(814) 278-7130
InvestorRelations@rexenergycorp.com