Rex Energy Corp., which filed for bankruptcy in May, said this week that it has entered a deal to sell all of its oil and gas assets in western Pennsylvania and eastern Ohio to PennEnergy Resources LLC for $600.5 million.
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Rex Energy Corp. said in a regulatory filing this week it failed to make a semi-annual interest payment that was due on Monday (April 2) for its senior notes, necessitating a forbearance agreement with lenders to prevent the acceleration of other debt obligations.
Rex Energy Corp. has again received notice from Nasdaq that it is not in compliance with the listing standards of the Nasdaq Capital Market, putting the company in jeopardy of delisting if its plan to meet the exchange’s requirements is not accepted.
Operating efficiencies that allowed earlier than expected turn-in-lines during the third quarter helped Rex Energy Corp. beat guidance for the period and have the company on track to meet its year-end exit rate production growth target of 15-20%.
Rex Energy Corp. said this week it has entered an arrangement with BP plc subsidiary BP Energy Co. to market most of its natural gas liquids in the company’s Butler Operated Area in western Pennsylvania and a portion of natural gas in the Warrior North Area of eastern Ohio.Rex CEO Tom Stabley said the deal with BP was six months in the making. The company expects to protect and stabilize quarterly cash flows by beefing up its existing relationship with BP when the new arrangement goes into effect in January. The company said the pricing structure compares favorably to projected 2017 prices, and said the deal should mitigate summer and winter price swings.Rex has already been able to reduce outstanding letters of credit by $14.1 million, but executives didn’t offer specifics about how the deal actually works. BP would also market a portion of Rex gas in the Warrior North Area of Carroll County, OH. BP has perennially topped NGI’s Top North American Gas Marketers Ranking, most recently reporting 22.53 Bcf/d in 1Q2017. Rex also inked a term condensate agreement in the Warrior North with refiner Marathon Petroleum Corp. that it said would improve its differential.“We continue to be proactive in exploring other enhancements, which include further reductions in our letters of credit to create additional capital for growth, potential noncore asset sales and additional enhancements to our marketing agreements,” Stabley said. The deals come as Rex has seen improvements to its average realized prices. More exposure to the Gulf Coast, along with improved differentials in the Northeast this year, helped lift liquids prices across the board. Including hedges, the company’s realized gas price also increased slightly to $2.78/Mcf in the second quarter, up from $2.73/Mcf during 2Q2016.The company hit snags operationally during the period that cut its year/year production growth. Rex produced 177.1. MMcfe/d in the second quarter, compared with 199.1 MMcfe/d in 2Q2016 and 173.4 MMcfe/d in 1Q2017. Unplanned midstream maintenance and a compressor that was late to come online in the Moraine East Area in northern Butler County hampered production.As a result, the company cut its full-year guidance to 180-190 MMcfe/d from the previous range of 194-204 MMcfe/d. Management still expects to hit 2018 guidance of 255-265 MMcfe/d with the Moraine compressor scheduled to come online in January.Rex also highlighted 12 wells in various stages of development at the end of the second quarter in the Moraine East, which it acquired in a broader 2014 deal. The wells represent the company’s final efforts to delineate the field.The company sold a water line in Carroll County that serves its Warrior North Area to Keystone Clearwater Services (KCS) for $8 million. It entered a lease agreement with KCS to secure future services in the field.Revenue was up 52% year/year to $47.5 million in the second quarter, but it didn’t top expenses for the period. Rex reported a net loss of $10.2 million (minus $1.03/share), compared with net income of $16 million (22 cents) in 2Q2016.
More exposure to the Gulf Coast, along with improved differentials in the Northeast, continued to push up Rex Energy Corp.’s realized prices in the first quarter, according to preliminary results released by the company on Monday.
Rex Energy Corp. on Tuesday released a two-year financial and operational plan, highlighting a clearer strategy to grow within cash flow as it looks beyond the squeeze it has faced during the downturn.
Westbound volumes on the Rockies Express Pipeline LLC (REX) increased about 200 MMcf/d this week, according to NGI’s REX Zone 3 Tracker.
FERC gave Rockies Express Pipeline LLC (REX) the go-ahead Monday to begin service on part of its Zone 3 capacity enhancement project, which when fully operational will add 800 MMcf/d of east-to-west capacity to the pipeline.