Rex Energy Corporation (NASDAQ:REXX) announced fourth quarter and full-year 2016 production and estimated pricing and provided an operational update.
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:
|(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.
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.
Shares of Rex Energy are up 7.5% to $0.78 in after-hours trading. REXX has a 1-year high of $2.43 and a 1-year low of $0.23. The stock’s 50-day moving average is $0.55 and its 200-day moving average is $0.54.
On the ratings front, REXX has been the subject of a number of recent research reports. In a report released today, Northland Securities analyst Jeff Grampp reiterated a Hold rating on REXX, with a price target of $1.00, which implies an upside of 19% from current levels. Separately, on January 19, RBC’s Kyle Rhodes reiterated a Buy rating on the stock and has a price target of $1.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jeff Grampp and Kyle Rhodes have a yearly average loss of -18.5% and a return of 18.3% respectively. Grampp has a success rate of 24% and is ranked #4243 out of 4361 analysts, while Rhodes has a success rate of 56% and is ranked #488.
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. It operates through the Exploration and Production and Field Services segment. The Exploration and 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.