Rex Energy Corporation Provides Operational Update and Announces Third Quarter 2009 Results
Press Release
Source: Rex Energy Corporation
On 4:50 pm EST, Thursday November 5, 2009
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* Horizontal Marcellus Shale well tests at an average rate of 4.2 Mmcf
per day over 30-day period

* Natural gas production up 27% from previous quarter and 62% from
same period in 2008

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STATE COLLEGE, Pa., Nov. 5, 2009 (GLOBE NEWSWIRE) -- Rex Energy Corporation ("Rex Energy") (Nasdaq:REXX - News) today announced third quarter 2009 results. Production averaged 2,684 BOEs per day, which was 72% oil, 27% natural gas and 1% natural gas liquids. Realized gas prices after adjustment for cash settled derivatives were $6.33 per mcf, as compared to $9.16 per mcf in the prior year quarter. Realized oil prices after adjustment for cash settled derivatives were $63.06 per bbl, as compared to $83.04 per bbl in the prior year quarter. As a result, oil and gas sales, including cash settled derivatives, declined 26% to $13.8 million. EBITDAX from continuing operations, a non-GAAP measure, declined 31% from the third quarter 2008 to $5.2 million. The company recorded a net loss for the quarter of $1.2 million, or $0.03 per share. Adjusting for certain non-cash items, net loss comparable to analyst estimates was $2.1 million, or $0.06 per share.



Benjamin W. Hulburt, Rex Energy's President and CEO, commented, "We are continuing to accelerate our production growth due primarily to our Marcellus Shale exploration. Natural gas production was up 62% over the same period in 2008 and up 29% compared to the second quarter 2009, despite experiencing continued pipeline related production curtailments. During the third quarter, a portion of our natural gas production from our conventional wells was shut-in due to third party line maintenance, which effectively reduced our average daily natural gas sales by approximately 17%."



Oil production in the third quarter 2009 declined 10% compared to the third quarter 2008. The decline in oil production is attributable to the significant reduction of developmental activity in the Illinois Basin from November 2008 through July 2009 due to low oil prices. The company resumed its conventional oil well drilling during the third quarter, which is expected to impact our production beginning in the fourth quarter of 2009 and first quarter of 2010. The company expects to complete 20 new conventional oil wells by the end of the year, with a similar number in 2010.



Capital expenditures in the third quarter of 2009 were $4.4 million of which $2.6 million was incurred in the company's Illinois Basin operations, and $1.8 million was incurred in the company's Appalachian Basin operations. In the Appalachian Basin, the company's focus during the quarter was in drilling horizontal Marcellus Shale wells within the company's joint venture areas with the Williams Production Company, LLC and Williams Production Appalachia, LLC, which resulted in minimal capital expense since the company is required to fund only 10% of the cost to drill and complete the wells in which it owns a 50% interest.