Ahead Of Rex Energy's Q4 Results

(RTTNews) - Independent energy company Rex Energy Corp. (REXX) is scheduled to release its fourth-quarter results after the bell on Monday, March 7, with analysts polled by Thomson Reuters estimating a loss of $0.43 per share on revenue of $44.37 million. Analysts' estimate typically exclude certain special items.

The company expects fourth-quarter production to be down about 4% at the midpoint of guidance, due to the Bluestone processing facility being shut down for six days during the quarter to allow for the commissioning of the Bluestone III processing facility and the shut-in of the six-well Grunder pad in order for the company to drill the Grunder North 6H from the existing pad.

The cumulative effect of these two factors is expected to impact production by about 8.0 MMcfe/d. Adjusting for these two factors at the midpoint of the company's guidance, estimated production during the quarter would be flat as compared to the third quarter of 2015.

In addition, the company increased its full year 2015 operational capital expenditure budget to about $160 million. The increase in the budget is due to the company's decision to drill three additional wells and to add three wells to its completion schedule to take advantage of increased operational efficiencies and accelerate the HBP program.

In the last quarter, net loss attributable to Rex Energy common shareholders was $97.1 million or $1.80 per share compared to a profit of $5.7 million or $0.10 per share in the prior year period.

Loss from continuing operations totaled $129.3 million or $2.44 per share compared to a profit of $5.6 million or $0.10 per share last year.

Total operating revenues plunged to $37.6 million from $73.5 million generated a year ago.

Commenting on the quarter, Tom Stabley, Rex Energy's President and CEO, said, "We have continued to improve our drilling operations by lowering costs and increasing work efficiencies. The average well cost for a 5,000 foot lateral in Butler is now down to $5.2 million. Our average drilling rate for the last eight wells was 595 feet per day, as compared to a rate of 402 feet per day for the first nine wells in 2015, an improvement of 48%."

Further, the company noted that with the exceptional performance of its operations team combined with well performance, and the nature of rock in Butler County, the company has been able to increase its overall reserves profile. Cost containment and operational efficiencies are positioning Rex Energy to weather the low commodity price environment.