Rex Energy Corporation

Rex Energy Corporation (NASDAQ:REXX) Updates On Operational Plan

Rex Energy Corporation (NASDAQ:REXX) reported its operational plan and released a financial update. The company reported that capital spend in FY2017 and FY2018 can be allied with cash flow from asset sales and operations. Debt-to-EBITDAX can decline around 50% by end of 2018 led by significant production growth, enhanced price realizations and improved basis differentials. They are targeting a 2-year compounded yearly production growth rate to come in between 10% – 15% in next couple of years.

The details

Rex Energy reported that net operational capital expenditures for FY2017 can come in the range of $70 million – $80 million. Approximately 20% is owed to the advancement of the Utica Shale. The FY2017 capital budget is projected to be financed through asset divestitures and cash flow from operations. Rex Energy intends to run one drilling rig in Butler managed and Ohio Utica Warrior North Area and predicts to drill 21 gross wells, complete 26 gross wells and place into sales 23 gross wells.

Of the 23 gross wells planned to be placed into sales in FY2017, only four gross wells will be put into sales in 1H2017, with the remaining 19 gross wells brought into sales in 2H2017. The 2017 progression plan in the Butler Managed and Warrior North Area is allied with the firm’s HBP/HBO objectives for 2017; upon closure of the 2017 development plan, the majority of the firm’s drillable acreage will be kept for production.

Average daily production is predicted to be in the range of 194 to 204 MMcfe/d, showing year-over-year growth of almost 5% to 10% as against the firm’s FY2016 production projection. With only four gross wells anticipated to be engaged into sales in 1H2017, the majority of the firm’s production growth will happen in 2H2017. Liquids production is projected to account for almost 38% of FY2017 production at the midpoint of released guidance.

Related News

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyrıght 2015 traders350.com. All RIGHTS RESERVED.