- First quarter 2015 production of 196.0 MMcfe/d
- Monetization of water service subsidiary expected to close by end of second quarter 2015
- Pursuing monetization or joint venture structure on operated Illinois Basin assets
STATE COLLEGE, Pa., April 20, 2015 (GLOBE NEWSWIRE) -- Rex Energy Corporation (Nasdaq:REXX) announced first quarter 2015 production and provided an update on its asset strategy.
First Quarter 2015 Production Results
First quarter 2015 production volumes were 196.0 MMcfe/d, an increase of 60% over the first quarter of 2014, consisting of 128.5 MMcf/d of natural gas and 11.3 Mboe/d of oil and NGLs (including 2.1 Mboe/d of ethane). Oil and NGLs (including ethane) accounted for 34% of net production during the first quarter. In addition, net production from the company's operated Illinois Basin asset was 1,873 bbls/d.
Asset Strategy Update
As previously announced, Rex Energy is pursuing the monetization of its 60% ownership interest in Keystone Clearwater Solutions, the company's water service subsidiary. The sale process is on track as expected and the company is encouraged by the interest that has been expressed in Keystone Clearwater Solutions.
In addition, the company has engaged Evercore Group L.L.C. as a financial advisor to pursue the potential monetization or joint venture of its operated assets in the Illinois Basin. All of the assets and associated facilities are located in Illinois, Indiana and Kentucky. The proceeds of these transactions would further enhance the company's liquidity position and improve flexibility in the company's 2015 and 2016 development program.
About Rex Energy Corporation
Rex Energy is headquartered in State College, Pennsylvania and is an independent oil and gas exploration and production company operating in the Appalachian and Illinois Basins within the United States. The company's strategy is to pursue its higher return exploration drilling prospects while acquiring oil and gas properties complementary to its portfolio.
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, event, 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 a number of 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, 2014, 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.