Rex Energy Announces First Quarter Production and Estimated Price Realizations and Provides Operational Update
April 24 2017 - 7:30AM
Rex Energy Corporation (Nasdaq:REXX) announced first quarter 2017
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
three months ended March 31, 2017.
Production Results and Price Realizations
Rex Energy’s first quarter 2017 production was 173.4 MMcfe/d,
consisting of 110.1 MMcf/d of natural gas, 9.7 Mboe/d of NGLs
(including 5.0 Mboe/d of ethane) and 0.8 Mboe/d of condensate.
Condensate and NGLs (including ethane) accounted for 36% of
production during the quarter.
During the first quarter of 2017, realized natural gas prices,
before the effects of hedging, improved approximately 42% as
compared to fourth quarter 2016 realized natural gas prices. The
improvement in natural gas realizations was driven by improved
differentials in the northeast markets and a full quarter of the
company’s Gulf Coast transport. In addition, C3+ NGL prices, before
the effects of hedging, average approximately 59% of WTI oil
prices. The improvement in C3+ NGL prices was largely due to
continued improvement in Mont Belvieu prices and improved
differentials for C3+ NGLs in the northeast. The company continues
to expect full-year 2017 realized C3+ NGL prices to average
approximately 50% - 55% of WTI.
“Our first quarter result 2017 results are the first step in
achieving our two-year plan for 2017 and 2018,” commented Tom
Stabley, President and CEO of Rex Energy. “One of the most
important highlights of the quarter was our price realizations,
with the strong results underlining the importance of our marketing
initiatives and current marketing portfolio. With a full year of
Gulf Coast transport and improved differentials in the northeast
markets, we expect to see improved realizations throughout the year
and will continue to pursue further enhancements to our marketing
portfolio to further improve our realizations.”
The table below outlines Rex Energy’s first quarter production
and estimated realized pricing, including the effects of
cash-settled derivatives, together with the same period comparison
from the prior year:
|
Three Months EndedMarch 31, |
|
2017(1) |
2016(2) |
Production Data
(average per day): |
|
|
Natural
gas (Mcf) |
110,130 |
|
124,225 |
Natural
gas liquids (C3+) (Bbls) |
4,686 |
|
5,382 |
Ethane
(Bbls) |
5,030 |
|
4,816 |
Condensate (Bbls) |
825 |
|
693 |
Total
(Mcfe/d)(2) |
173,372 |
|
189,568 |
|
|
|
Average price
per unit: |
|
|
Realized natural gas
price per Mcf – as reported |
$ |
3.16 |
|
$ |
1.37 |
Realized
impact from cash settled derivatives per Mcf |
(0.12 |
) |
0.73 |
Net
realized price per Mcf |
$ |
3.04 |
|
$ |
2.10 |
|
|
|
Realized NGL (C3+)
price per Bbl – as reported |
$ |
30.84 |
|
$ |
12.20 |
Realized
impact from cash settled derivatives per Bbl |
(5.65 |
) |
6.04 |
Net
realized price per Bbl |
$ |
25.19 |
|
$ |
18.24 |
|
|
|
Realized ethane price
per Bbl – as reported |
$ |
9.48 |
|
$ |
6.04 |
Realized
impact from cash settled derivatives per Bbl |
0.24 |
|
0.33 |
Net
realized price per Bbl |
$ |
9.72 |
|
$ |
6.37 |
|
|
|
Realized condensate
price per Bbl – as reported |
$ |
46.07 |
|
$ |
24.32 |
Realized
impact from cash settled derivatives per Bbl(3) |
0.07 |
|
28.35 |
Net
realized price per Bbl |
$ |
46.14 |
|
$ |
52.67 |
|
|
|
|
|
Realized gas equivalent
price (per Mcfe) – as reported |
$ |
3.34 |
|
|
1.49 |
(1)
Realized pricing for the first quarter 2017 are estimates and are
subject to the finalization of the closing and financial reporting
process |
(2)
Production for the first quarter of 2016 includes approximately
11.7 MMcfe/d of production related to the Warrior South asset,
which was divested in January 2017 |
(3) Natural
gas liquids (C3+), ethane and condensate are converted at the rate
of one barrel of oil equivalent to six Mcfe |
(4)
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 first quarter of 2016 was approximately $36.78 |
Operational Update
Legacy Butler Operated Area
The company has completed the drilling of the first of four
wells on the Wilson pad. The four wells on the pad are expected to
have an average lateral length of approximately 9,300 feet. The
four wells on the Wilson pad are expected to be placed into sales
in the third quarter of 2017.
Moraine East Area
In the Moraine East Area, the company recently finished drilling
the four-well Mackrell pad with an average lateral length of
approximately 7,600 feet. The four wells are expected to be placed
into sales in the second half of 2017. In addition, the company
will begin completing the six-well Shields pad in late-April 2017
and expects to place the six wells into sales in the third quarter
of 2017. In conjunction with the commencement of the Shields pad
completions, construction has begun on the pipeline connecting the
Renick compressor station to the Shields pad. The company also now
expects to the four-well Baird pad to be placed into sales in the
second quarter of 2017.
“With the four-well Wilson pad, four-well Mackrell pad and
six-well Shields pad all currently on schedule to be placed into
the sales in the second half of this year, we expect to see
substantial production growth in back half of 2017,” commented Tom
Stabley. “In particular, we are excited about the Mackrell and
Shields pads, as they will be the first wells on the eastern
portion of our Moraine East Area and will further our goal of
having the large majority of the Moraine East Area held by
production while also continuing to delineate the field.”
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, 2016, 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