Company Update (NASDAQ:REXX): Rex Energy Corporation Announces Closing of Illinois Basin Asset Sale
Rex Energy Corporation (NASDAQ:REXX) announced that it has closed on the previously announced sale of its Illinois Basin assets to Campbell Development Group, LLC. The sale of the Illinois Basin assets includes approximately 76,000 net acres in Illinois, Indiana and Kentucky; the assets are currently producing approximately 1,700 net barrels per day. Rex Energy is selling its entire interest in the basin and has received net proceeds from the sale of approximately $40 million with the potential for additional proceeds of up to $10 million over the next three years based on commodity prices during that time frame. The proceeds will be used to pay down the revolving line of credit and for general corporate purposes. (Original Source)
Shares of Rex Energy opened today at $0.62, down $0.02 or 3.33%. REXX has a 1-year high of $3.48 and a 1-year low of $0.49. The stock’s 50-day moving average is $0.63 and its 200-day moving average is $0.82.
On the ratings front, Wells Fargo analyst Gordon Douthat maintained a Hold rating on REXX, in a report issued on June 15. According to TipRanks.com, Douthat has a yearly average return of 16.2%, a 48% success rate, and is ranked #667 out of 4122 analysts.
Rex Energy Corp. is an independent energy company, which engages in acquisition, production, exploration and development of oil, natural gas and natural gas liquids with properties concentrated in the Appalachian and Illinois regions of the United States. The Illinois Basin focuses on the implementation of enhanced oil recovery on properties as well as conventional oil production. The Appalachian Basin focuses on Marcellus Shale drilling projects. The company operates its business through two segments: Exploration & Production and Field Services. The Exploration & Production segment engages in the exploration, acquisition, development and production of oil, natural gas and Liquids. The Field Services segment operates and manages water sourcing, water transfer and water disposal services, primarily in the Appalachian Basin.