Rex Energy Corporation (the “Company”) (NASDAQ:REXX) announced
fourth quarter 2017 and full-year 2017 production and estimated
pricing realizations 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, 2017.
Production Results and Price Realizations
Rex Energy’s fourth quarter 2017 production was 205.3 MMcfe/d,
consisting of 123.4 MMcf/d of natural gas, 13.0 Mboe/d of NGLs
(including 7.3 Mboe/d of ethane) and 0.7 Mboe/d of condensate.
Condensate and NGLs (including ethane) accounted for 40% of
production during the quarter. Full-year 2017 production was
184.5 MMcfe/d.
During the fourth quarter of 2017, realized natural gas prices,
before the effects of hedging, improved approximately 7% as
compared to the fourth quarter of 2016. For the full-year 2017,
realized natural gas prices, before the effects of hedging,
improved approximately 67% as compared to full-year 2016. The
improvement in natural gas realizations was driven by an increase
in sales of natural gas to the Gulf Coast and improved
differentials in the northeast markets. In addition, C3+ NGL
prices, before the effects of hedging, averaged approximately 72%
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. Full-year 2017
realized C3+ NGL prices averaged approximately 61% of WTI.
The table below outlines Rex Energy’s fourth quarter production
and realized pricing, including the effects of cash-settled
derivatives, together with the same period comparison from the
prior year:
| |
Three Months EndedDecember 31, |
Full Year EndedDecember 31, |
| |
2017(1) |
2016(1) |
2017(1) |
2016(1) |
| Production Data
(average per day): |
|
|
|
| Natural
gas (Mcf) |
123,426 |
|
120,929 |
|
|
113,580 |
|
|
122,089 |
|
| Natural
gas liquids (C3+) (Bbls) |
5,710 |
|
5,436 |
|
|
5,072 |
|
|
5,454 |
|
| Ethane
(Bbls) |
7,271 |
|
5,792 |
|
|
6,017 |
|
|
5,769 |
|
|
Condensate (Bbls) |
667 |
|
1,100 |
|
|
733 |
|
|
985 |
|
| Total
(Mcfe/d)(2) |
205,316 |
|
194,898 |
|
|
184,512 |
|
|
195,331 |
|
| |
|
|
|
|
| Average price
per unit: |
|
|
|
|
| Realized natural gas
price per Mcf – as reported |
$ |
2.39 |
|
$ |
2.23 |
|
$ |
2.74 |
|
$ |
1.64 |
|
| Realized
impact from cash settled derivatives per Mcf |
0.24 |
|
0.19 |
|
|
0.03 |
|
|
0.59 |
|
| Net
realized price per Mcf |
$ |
2.63 |
|
$ |
2.42 |
|
$ |
2.77 |
|
$ |
2.23 |
|
| |
|
|
|
|
| Realized NGL (C3+)
price per Bbl – as reported |
$ |
39.75 |
|
$ |
27.64 |
|
$ |
31.21 |
|
$ |
17.97 |
|
| Realized
impact from cash settled derivatives per Bbl |
(11.25 |
) |
(2.25 |
) |
|
(6.37 |
) |
|
2.46 |
|
| Net
realized price per Bbl |
$ |
28.50 |
|
$ |
25.39 |
|
$ |
24.84 |
|
$ |
20.43 |
|
| |
|
|
|
|
| Realized ethane price
per Bbl – as reported |
$ |
10.03 |
|
$ |
9.36 |
|
$ |
9.96 |
|
$ |
7.81 |
|
| Realized
impact from cash settled derivatives per Bbl |
0.04 |
|
(0.48 |
) |
|
0.02 |
|
|
(0.01 |
) |
| Net
realized price per Bbl |
$ |
10.07 |
|
$ |
8.88 |
|
$ |
9.98 |
|
$ |
7.80 |
|
| |
|
|
|
|
| Realized condensate
price per Bbl – as reported |
$ |
49.29 |
|
$ |
43.13 |
|
$ |
44.89 |
|
$ |
37.08 |
|
| Realized
impact from cash settled derivatives per Bbl |
(0.31 |
) |
(5.40 |
) |
|
1.04 |
|
|
4.56 |
|
| Net
realized price per Bbl |
$ |
48.98 |
|
$ |
37.73 |
|
$ |
45.93 |
|
$ |
41.64 |
|
|
|
|
|
|
|
|
|
| Realized gas
differential to NYMEX |
$ |
(0.30 |
) |
$ |
(0.56 |
) |
$ |
(0.34 |
) |
$ |
(0.23 |
) |
| |
|
|
|
|
|
|
| (1) Natural gas liquids (C3+), ethane and condensate are
converted at the rate of one barrel of oil equivalent to six
Mcfe. |
| (2) Includes production and revenue from Warrior South,
which was sold in January 2017. Excluding the effects of Warrior
South, annual production would have been 115,421 Mcf/d of natural
gas, 5,037 Bbls/d of NGLs (C3+), 5,768 Bbls/d of ethane, and 920
Bbls/d of condensate, totaling 185,775 MCFe/d for the full-year
2016; 115,349 Mcf/d of natural gas, 5,093 Bbls/d of NGLs (C3+),
5,792 Bbls/d of ethane, and 1,054 Bbls/d of condensate, totaling
186,981 MCFe for the fourth quarter of 2016. |
|
|
Operational UpdateFour-Well Wilson Pad – Butler
Legacy
As previously announced, the four-well Wilson pad was placed
into sales during November 2017 and produced at an initial 24-hour
average sales rate per well of 10.9 MMcfe/d, consisting of 6.6
MMcf/d of natural gas and 721 Bbls/d of NGLs.
The average 30-day sales rate per well was 10.0 MMcfe/d,
consisting of 6.0 MMcf/d of natural gas and 662 Bbls/d of NGLs.
Three of the four wells on the Wilson pad were drilled at an
average lateral length of approximately 10,200 feet. These three
extended-length wells produced at an average 30-day sales rate per
well of 11.4 MMcfe/d, consisting of 6.9 MMcf/d of natural gas and
755 Bbls/d of NGLs. Current rates from these wells continue to show
strong production results and pressure profiles.
| Three-Extended Lateral Wilson Wells – New
Rates |
|
Pad |
Natural Gas (Mcf/d) |
NGLs (Bbls/d) |
Total (Mcfe/d) |
Liquids % |
|
5-Day |
7,355 |
809 |
12,209 |
40 |
% |
|
30-Day |
6,867 |
755 |
11,397 |
40 |
% |
|
60-Day |
6,740 |
742 |
11,192 |
40 |
% |
“We are very pleased with the continued performance of the
Wilson pad, in particular the three extended lateral length wells,
which have continued to exceed our initial expectations,” said Tom
Stabley, President and Chief Executive Officer. “The
early success of the Wilson pad further illustrates the continued
optimization of our completion design.”
Three-Well Jenkins Pad – Warrior North
The Company has recently placed the three-well Jenkins pad into
sales. The three wells were drilled to an average lateral length of
approximately 6,500 feet and were completed with an average of 37
stages. The three wells produced at an average 30-days sales
rate per well of approximately 6.0 MMcfe/d, consisting of 1.8
MMcf/d of natural gas, 370 Bbls/d of NGLs and 332 Bbls/d of
condensate. In conjunction with placing these wells into
sales, the Company has returned to production certain wells that
were shut-in during the completion phase of the Jenkins pad, in
which the Company owns a 100% working interest.
* All sales rates assume full ethane recovery.
Drilling and Completion Update
In Moraine East, the Company recently finished completing the
four-well Kern pad, in which it owns a 100% working interest.
These wells are expected to be placed into sales in March and will
have a similar completion design to the previously completed Frye
pad. Currently, the Company is in the process of completing the
recently drilled seven-well Goebeler pad in Warrior North, where it
owns an approximate 71% working interest. Finally, the
Company is currently drilling the fourth of five wells on the Hofer
pad in the Butler Legacy area, where the Company has seen some of
the best results in the area to date.
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)
278-7130InvestorRelations@rexenergycorp.com