Rex Energy Announces Fourth Quarter and Full-Year Production and Estimated Price Realizations and Provides Operational Update...
January 23 2017 - 4:01PM
Rex Energy Corporation (Nasdaq:REXX) announced fourth quarter and
full-year 2016 production and estimated pricing and provided an
operational update.
Note: All results included in this release are unaudited; they
are preliminary pending the completion of the company’s financial
closing procedures. These preliminary estimates may be revised in
connection with the preparation of our financial statements for the
year ended December 31, 2016.
Production Results and Price Realizations
Rex Energy’s fourth quarter 2016 production was 194.9 MMcfe/d,
an increase of 12% over the fourth quarter of 2015. Production
consisted of 120.9 MMcf/d of natural gas and 12.3 Mboe/d of
condensate and NGLs (including 5.8 Mboe/d of ethane). Condensate
and NGLs (including ethane) accounted for 38% of production during
the quarter.
The table below outlines Rex Energy’s quarterly and full-year
production and realized pricing, including the effects of
cash-settled derivatives, together with same period comparisons
from the prior year:
| |
Three Months EndedDecember 31, |
|
Twelve Months EndedDecember 31, |
| |
2016(1) |
2015 |
|
2016(1) |
2015 |
| Production Data
(average per day): |
|
|
|
|
|
| Natural
gas (Mcf) |
120,929 |
|
113,548 |
|
122,089 |
|
122,210 |
| Natural
gas liquids (C3+) (Bbls) |
5,436 |
|
4,945 |
|
5,454 |
|
5,552 |
| Ethane
(Bbls) |
5,792 |
|
4,527 |
|
5,769 |
|
3,615 |
|
Condensate (Bbls) |
1,100 |
|
621 |
|
987 |
|
1,104 |
| Total
(Mcfe/d)(2) |
194,897 |
|
174,106 |
|
195,349 |
|
183,836 |
| |
|
|
|
|
|
| Average price
per unit: |
|
|
|
|
|
| Realized natural gas
price per Mcf – as reported |
$ |
2.23 |
|
$ |
1.44 |
|
$ |
1.64 |
|
$ |
1.86 |
| Realized
impact from cash settled derivatives per Mcf |
0.19 |
|
0.90 |
|
0.59 |
|
0.73 |
| Net
realized price per Mcf |
$ |
2.42 |
|
$ |
2.34 |
|
$ |
2.23 |
|
$ |
2.59 |
| |
|
|
|
|
|
| Realized NGL (C3+)
price per Bbl – as reported |
$ |
27.64 |
|
$ |
17.40 |
|
$ |
17.97 |
|
$ |
16.18 |
| Realized
impact from cash settled derivatives per Bbl |
(2.25 |
) |
7.04 |
|
2.47 |
|
5.12 |
| Net
realized price per Bbl |
$ |
25.39 |
|
$ |
24.44 |
|
$ |
20.44 |
|
$ |
21.30 |
| |
|
|
|
|
|
| Realized ethane price
per Bbl – as reported |
$ |
9.36 |
|
$ |
6.13 |
|
$ |
7.81 |
|
$ |
6.60 |
| Realized
impact from cash settled derivatives per Bbl |
(0.47 |
) |
0.26 |
|
(0.01 |
) |
0.03 |
| Net
realized price per Bbl |
$ |
8.89 |
|
$ |
6.39 |
|
$ |
7.80 |
|
$ |
6.63 |
| |
|
|
|
|
|
| Realized condensate
price per Bbl – as reported |
$ |
43.12 |
|
$ |
31.69 |
|
$ |
37.08 |
|
$ |
34.92 |
| Realized
impact from cash settled derivatives per Bbl(3) |
(5.40 |
) |
53.44 |
|
4.56 |
|
29.44 |
| Net
realized price per Bbl |
$ |
37.72 |
|
$ |
85.13 |
|
$ |
41.64 |
|
$ |
64.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1)
Realized pricing for the fourth quarter and full-year 2016 are
estimates and are subject to the finalization of the closing and
financial reporting process. (2) Natural gas liquids (C3+), ethane
and condensate are converted at the rate of one barrel of oil
equivalent to six Mcfe (3) Includes the effects of derivatives not
classified as discontinued operations. When including the results
of our discontinued operations, the average net realized price for
oil and condensate for the fourth quarter of 2015 and the full year
2015 were approximately $49.85 and $52.27, respectively. |
Operational Update
Moraine East Area
In the Moraine East Area, Rex Energy recently placed into sales
the two-well Klever pad. The Klever wells were drilled to an
average lateral length of approximately 7,460 feet and completed in
an average of 42 stages with average sand concentrations of
approximately 2,864 pounds per foot. The wells produced at an
average 5-day sales rate per well, assuming full ethane recovery,
of 10.4 MMcfe/d consisting of 4.5 MMcf/d of natural gas, 895 bbls/d
of NGLs and 81 bbls/d of condensate.
The company is currently completing the four-well Baird pad,
which was drilled to an average lateral length of approximately
7,140 feet. The pad is expected to be placed into sales at the end
of the first quarter of 2017. The company has also finished
drilling the six wells on the Shields pad, which were drilled to an
average lateral length of approximately 7,750 feet. The Shields pad
is expected to be placed into sales in the third quarter of
2017.
Legacy Butler Operated Area
As previously reported, the company placed the two-well Geyer
pad into sales in August 2016. The Geyer wells were drilled to an
average lateral length of approximately 4,200 feet and completed in
an average of 24 completion stages. The table below lists the
average 5-day, 90-day and recent 30-day sales rates for the Geyer
pad.
| Two-Well Geyer Pad |
|
Sales Rate |
Choke Size |
Natural Gas (Mcf/d) |
NGLs (Bbls/d) |
% Liquids |
Total (MMcfe/d) |
|
5-Day |
28/64” |
4,410 |
451 |
38 |
% |
7,119 |
|
90-Day |
23/64” |
3,661 |
424 |
41 |
% |
6,208 |
|
Recent 30-Day |
28/64” |
4,145 |
424 |
38 |
% |
6,691 |
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of federal securities laws. All statements, other than
statements of historical facts, included in this release that
address activities, events, developments, forecasts, or guidance
that Rex Energy expects, believes or anticipates will or may occur
in the future are forward-looking statements. Forward-looking
statements rely on assumptions concerning future events and are
subject to a number of uncertainties, factors and risks, many of
which are outside Rex Energy's ability to control or predict, that
could cause results to differ materially from management's current
expectations. These risks and uncertainties include, but are not
limited to, economic and market conditions, operational
considerations, the timing and success of our exploration and
development efforts, and other uncertainties. Additional
information concerning these and other factors can be found in our
press releases and public periodic filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K for
the year ended December 31, 2015, and we strongly encourage you to
review those documents to understand these risks. You should not
place undue reliance on forward-looking statements because they
reflect management's views only as of the date of this release. We
undertake no obligation to revise or update any forward-looking
statements, or to make any other forward-looking statements,
whether as a result of new information, future events or
otherwise.
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