Rex Energy Reports First Quarter Operational and Financial

Closed joint development agreement with Benefit Street Partners
Exchanged $633 million of Senior Unsecured Notes into 2^nd Lien Notes
Exchanged $27 million of senior unsecured notes and $13.8 million in face value of preferred stock for common stock in April 2016
Increased production by 7% compared to 4Q15 to 200.0 MMcfe/d
Reduced cash G&A/Mcfe to $0.33/Mcfe, a 12% decrease over 1Q15

STATE COLLEGE, Pa., May 10, 2016 (GLOBE NEWSWIRE) -- Rex Energy Corporation (Nasdaq:REXX) announced its first quarter 2016 operational and financial results.

First Quarter Financial Results

Operating revenues from continuing operations for the three months ended March 31, 2016 were $30.5 million, which represents a decrease of 44% as compared to the same period in 2015. Commodity revenues, including settlements from derivatives, were $43.5 million, a decrease of 33% as compared to the same period in 2015. Commodity revenues from oil and natural gas liquids (NGLs), including settlements from derivatives, represented 46% of total commodity revenues for the three months ended March 31, 2016.

Lease operating expense (LOE) from continuing operations was $30.1 million, or $1.66 per Mcfe for the quarter, which was in line with the same period in 2015. Cash general and administrative (G&A) expenses from continuing operations, a non-GAAP measure, were $6.1 million, or $0.33 per Mcfe for the first quarter of 2016, a 12% decrease on a per unit basis as compared to the same period in 2015. Cash G&A expenses during the first quarter of 2016 included approximately $1.5 million in fees incurred related to the joint development agreement with Benefit Street Partners, LLC.

Net loss attributable to common shareholders for the three months ended March 31, 2016 was $62.2 million, or $1.11 per basic share. Adjusted net loss, a non-GAAP measure, for the three months ended March 31, 2016 was $15.4 million, or $0.27 per share.

EBITDAX from continuing operations, a non-GAAP measure, was $6.9 million for the first quarter of 2016.

Reconciliations of adjusted net income to GAAP net income, EBITDAX to GAAP net income and G&A to cash G&A for the three months ended March 31, 2016, as well as a discussion of the uses of each measure, are presented in the appendix of this release.

Production Results and Price Realizations

First quarter 2016 production volumes were approximately 200.0 MMcfe/d, an increase of 2% over the first quarter of 2015, consisting of 124.2 MMcf/d of natural gas and 12.6 Mboe/d of oil, condensate and NGLs (including 4.8 Mboe/d of ethane). Oil, condensate and NGLs (including ethane) accounted for 38% of net production during the first quarter of 2016.

Including the effects of cash-settled derivatives, realized prices for the three months ended March 31, 2016 were $36.78 per barrel for oil and condensate, $2.10 per Mcf for natural gas, $18.24 per barrel for NGLs (C3+) and $6.37 per barrel for ethane. Before the effects of hedging, realized prices for the three months ended March 31, 2016 were $28.71 per barrel for oil and condensate, $1.37 per Mcf for natural gas, $12.20 per barrel for NGLs (C3+) and $6.04 per barrel for ethane.

First Quarter 2016 Capital Investments

For the first quarter of 2016, operational capital investments were approximately $30.6 million, which were offset by $31.8 million in joint venture reimbursements. Approximately 97% of the capital expenditures in the first quarter of 2016 were used to fund Marcellus and Ohio Utica operations. These capital investments funded the drilling of two gross (0.7 net) wells, fracture stimulation of five gross (three net) wells, placing 16.0 gross (8.1 net) wells into sales and other projects related to drilling and completing wells in the Appalachian Basin.

First quarter investments for leasing and property acquisitions were $2.1 million and capitalized interest was $1.9 million.

Operational Update

Note: Unless specifically stated otherwise in this operational update, all numbers are gross and all well results assume full ethane recovery.

Appalachian Basin – Legacy Butler Operated Area

During the first quarter of 2016, the company completed the drilling of the two-well Geyer pad. The Geyer wells were drilled to an average lateral length of approximately 4,200 feet and are expected to be placed into sales in the third quarter of 2016.

Appalachian Basin – Moraine East

In the Moraine East Area, Rex Energy fracture stimulated four gross (two net) wells and placed 12.0 gross (six net) wells into sales in conjunction with the commissioning of the Moraine East gathering and transportation system. An additional four gross (two net) wells are expected to be placed into sales during the second quarter of 2016. The company continues to be encouraged by preliminary results in Moraine East and will provide updated sales rates following the commissioning of the high pressure line, which is expected in the second quarter of 2016.

Appalachian Basin – Warrior North Prospect – Carroll County, Ohio

In the Warrior North Prospect, the company drilled two gross (0.7 net) wells, fracture stimulated one gross (one net) well and placed four gross (two net) wells into service. As of March 31, 2016 there were five gross (1.8 net) wells drilled and awaiting completion in the area.

Rex Energy placed the three-well Kiko pad into sales during the first quarter. The Kiko wells were drilled to an average lateral length of approximately 4,900 feet and completed in an average of 33 stages with average sand concentrations of 2,460 pounds per foot. The wells produced at an average 5-day sales rate per well, assuming full ethane recovery, of 1.3 MBoe/d, consisting of 2.3 MMcf/d of natural gas, 502 bbls/d of NGLs and 369 bbls/d of condensate.

In addition, the company drilled the three-well Goebeler pad with an average lateral length of approximately 7,360 feet. The wells are currently being completed and are expected to be placed into sales during the second quarter of 2016. Following the completion of the Goebeler pad, the company will begin completion operations on the two-well Perry pad.

Second Quarter and Full Year 2016 Guidance

Rex Energy is providing its guidance for the second quarter of 2016 ($ in millions). For full year 2016, the company continues to expect production growth of 5% - 10%.

	2Q2016	Full Year 2016
Production	203.0 – 207.0 MMcfe/d	--
Lease Operating Expense	$29.0 - $31.0 million	--
Cash G&A	$4.0 - $5.0 million	--
Operational Capital Expenditures⁽¹⁾	--	$15.0 - $40.0 million
(1) Land acquisition expense and capitalized interest are not included in the operational capital expenditures budget

Conference Call Information

Management will host a live conference call and webcast on Wednesday, May 11, 2016 at 10:00 a.m. Eastern to review first quarter 2016 financial results and operational highlights. The telephone number to access the conference call is (866) 437-1772.

About Rex Energy Corporation

Headquartered in State College, Pennsylvania, Rex Energy is an independent oil and gas exploration and production company operating in the Appalachian and Illinois Basins. The company’s strategy is to pursue its higher potential exploration drilling prospects while acquiring oil and natural gas properties complementary to its portfolio.

Forward-Looking Statements

Except for historical information, statements made in this release, including those relating to the timing and nature of development plans; drilling and completion schedules; anticipated fracture stimulation activities; expected dates for placement of wells into sales; and our financial guidance for second quarter and full year 2016 are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may contain words such as "expected", "expects", "scheduled", "planned", "plans", "anticipates" or similar words, and are based on management's experience and perception of historical trends, current conditions, and anticipated future developments, as well as other factors believed to be appropriate. We believe these statements and the assumptions and estimates contained in this release are reasonable based on information that is currently available to us. However, management's assumptions and the company's future performance are subject to a wide range of business risks and uncertainties, both known and unknown, and we cannot assure that the company can or will meet the goals, expectations, and projections included in this release. Any number of factors could cause our actual results to be materially different from those expressed or implied in our forward looking statements, including (without limitation):

economic conditions in the United States and globally;
domestic and global demand for oil, NGLs and natural gas;
volatility in oil, NGL, and natural gas pricing;
new or changing government regulations, including those relating to environmental matters, permitting, or other aspects of our operations;
the geologic quality of the company's properties with regard to, among other things, the existence of hydrocarbons in economic quantities;
uncertainties inherent in the estimates of our oil and natural gas reserves;
our ability to increase oil and natural gas production and income through exploration and development;
drilling and operating risks;
the success of our drilling techniques in both conventional and unconventional reservoirs;
the success of the secondary and tertiary recovery methods we utilize or plan to employ in the future;
the number of potential well locations to be drilled, the cost to drill them, and the time frame within which they will be drilled;
the ability of contractors to timely and adequately perform their drilling, construction, well stimulation, completion and production services;
the availability of equipment, such as drilling rigs, and infrastructure, such as transportation, pipelines, processing and midstream services;
the effects of adverse weather or other natural disasters on our operations;
competition in the oil and gas industry in general, and specifically in our areas of operations;
changes in our drilling plans and related budgets;
the success of prospect development and property acquisition;
the success of our business and financial strategies, and hedging strategies;
conditions in the domestic and global capital and credit markets and their effect on us;
the adequacy and availability of capital resources, credit, and liquidity including, but not limited to, access to additional borrowing capacity; and
uncertainties related to the legal and regulatory environment for our industry, and our own legal proceedings and their outcome.

We undertake no obligation to publicly update or revise any forward-looking statements. Further information on the company's risks and uncertainties is available in our filings with the Securities and Exchange Commission and we strongly encourage investors to review those filings.

REX ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
($ in Thousands, Except Share and Per Share Data)

ASSETS	March 31, 2016 (Unaudited)				December 31, 2015
Current Assets
Cash and Cash Equivalents	$		24,891		$		1,091
Accounts Receivable		24,315				19,483
Taxes Receivable		18				18
Short-Term Derivative Instruments		29,012				34,260
Inventory, Prepaid Expenses and Other		3,168				3,829
Total Current Assets		81,404				58,681
Property and Equipment (Successful Efforts Method)
Evaluated Oil and Gas Properties		1,301,479				1,239,430
Unevaluated Oil and Gas Properties		257,697				262,992
Other Property and Equipment		41,028				40,112
Wells and Facilities in Progress		75,514				144,556
Pipelines		16,780				14,024
Total Property and Equipment		1,692,498				1,701,114
Less: Accumulated Depreciation, Depletion and Amortization		(720,998		)		(699,899		)
Net Property and Equipment		971,500				1,001,215
Other Assets		2,489				2,501
Long-Term Derivative Instruments		8,460				9,534
Total Assets	$		1,063,853		$		1,071,931
LIABILITIES AND EQUITY
Current Liabilities
Accounts Payable	$		42,818		$		37,874
Current Maturities of Long-Term Debt		9,934				590
Accrued Liabilities		44,296				44,326
Short-Term Derivative Instruments		3,758				2,486
Total Current Liabilities		100,806				85,276
Long-Term Derivative Instruments		6,908				5,556
Senior Secured Line of Credit and Long-Term Debt, Net of Issuance Costs		143,294				109,396
Senior Notes, Net of Issuance Costs		657,511				663,089
Premium on Senior Notes, Net		2,245				2,344
Other Deposits and Liabilities		3,140				3,156
Future Abandonment Cost		43,412				42,883
Total Liabilities	$		957,316		$		911,700

Stockholder Equity
Preferred Stock, $.001 par value per share, 100,000 shares authorized and 12,836 issued and outstanding on March 31, 2015 and 16,100 shares issued and outstanding on December 31, 2015	$		1		$		1
Common Stock, $.001 par value per share, 100,000,000 shares authorized and 66,041,227 shares issued and outstanding on March 31, 2016 and 55,741,229 shares issued and outstanding on December 31, 2015		63				54
Additional Paid-In Capital		630,301				623,863
Accumulated Deficit		(523,828		)		(463,687		)
Total Stockholders’ Equity		106,537				160,231
Total Liabilities and Owners’ Equity	$		1,063,853		$		1,071,931

REX ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in Thousands, Except per Share Data)

	For the Three Months Ended March 31,
	2016				2015
OPERATING REVENUE
Oil, Natural Gas and NGL Sales	$		30,494		$		54,111
Other Revenue		13				11
TOTAL OPERATING REVENUE		30,507				54,122
OPERATING EXPENSES
Production and Lease Operating Expense		30,146				29,052
General and Administrative Expense		6,063				9,651
(Gain) Loss on Disposal of Assets		(30		)		65
Impairment Expense		14,184				7,023
Exploration Expense		993				518
Depreciation, Depletion, Amortization and Accretion		19,408				26,126
Other Operating Expense		329				5,191
TOTAL OPERATING EXPENSES		71,093				77,626
LOSS FROM OPERATIONS		(40,586		)		(23,504		)
OTHER EXPENSE
Interest Expense		(13,032		)		(12,017		)
Gain on Derivatives, Net		4,049				17,119
Other Income			--			34
Debt Exchange Expense		(8,480		)			--
Loss on Equity Method Instruments			--			(203		)
TOTAL OTHER INCOME (EXPENSE)		(17,463		)		4,933
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX		(58,049		)		(18,571		)
Income Tax (Expense) Benefit		(2,092		)		92
NET LOSS FROM CONTINUING OPERATIONS		(60,141		)		(18,479		)
Income From Discontinued Operations, Net of Income Taxes			--			1,962
NET LOSS		(60,141		)		(16,517		)
Net Income Attributable to Noncontrolling Interests			--			1,297
NET LOSS ATTRIBUTABLE TO REX ENERGY	$		(60,141	)	$		(17,184	)
Preferred Stock Dividends		2,105				2,415
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$		(62,246	)	$		(20,229	)
Earnings per common share:
Basic – Net Loss From Continuing Operations Attributable to Rex Energy Common Shareholders	$		(1.11	)	$		(0.38	)
Basic – Net Income From Discontinued Operations Attributable to Rex Energy Common Shareholders			--			0.01
Basic – Net Loss Attributable to Rex Energy Common Shareholders	$		(1.11	)	$		(0.37	)
Basic – Weighted Average Shares of Common Stock Outstanding		56,003				54,370
Diluted – Net Loss From Continuing Operations Attributable to Rex Energy Common Shareholders	$		(1.11	)	$		(0.38	)
Diluted – Net Income From Discontinued Operations Attributable to Rex Energy Common Shareholders			--			0.01
Diluted – Net Loss Attributable to Rex Energy Common Shareholders	$		(1.11	)	$		(0.37	)
Diluted – Weighted Average Shares of Common Stock Outstanding		56,003				54,370

REX ENERGY CORPORATION
CONSOLIDATED OPERATIONAL HIGHLIGHTS
UNAUDITED

	Three Months Ended March 31,
	2016		2015
Oil, Natural Gas, NGL and Ethane sales (in thousands):
Oil and condensate sales	$	6,354	$	12,461
Natural gas sales	15,516		28,286
Natural gas liquids sales (C3+)	5,975		12,119
Ethane sales	2,649		1,245
Cash-settled derivatives:
Crude oil	1,787		3,745
Natural gas	8,223		5,273
Natural gas liquids (C3+)	2,956		1,540
Ethane	144		22
Total oil, gas, NGL and Ethane sales including cash settled derivatives	$	43,604	$	64,691

Production during the period:
Oil and condensate (Bbls)	221,367		315,174
Natural gas (Mcf)	11,304,519		11,502,917
Natural gas liquids (C3+) (Bbls)	489,753		521,203
Ethane (Bbls)	438,213		189,155
Total (Mcfe)¹	18,200,517		17,656,109

Production – average per day:
Oil and condensate (Bbls)	2,433		3,502
Natural gas (Mcf)	124,225		127,810
Natural gas liquids (C3+) (Bbls)	5,382		5,791
Ethane (Bbls)	4,816		2,102
Total (Mcfe)¹	200,006		196,179

Average price per unit:
Realized crude oil price per Bbl – as reported	$	28.71	$	39.54
Realized impact from cash settled derivatives per Bbl	8.07		11.88
Net realized price per Bbl	$	36.78	$	51.42

Realized natural gas price per Mcf – as reported	$	1.37	$	2.46
Realized impact from cash settled derivatives per Mcf	0.73		0.46
Net realized price per Mcf	$	2.10	$	2.92

Realized natural gas liquids (C3+) price per Bbl – as reported	$	12.20	$	23.25
Realized impact from cash settled derivatives per Bbl	6.04		2.95
Net realized price per Bbl	$	18.24	$	26.20

Realized ethane price per Bbl – as reported	$	6.04	$	6.58
Realized impact from cash settled derivatives per Bbl	0.33		0.12
Net realized price per Bbl	$	6.37	$	6.70

LOE / Mcfe	$	1.66	$	1.65
Cash G&A / Mcfe	$	0.33	$	0.38

¹Oil and natural gas liquids are converted at the rate of one barrel of oil equivalent to six Mcfe

REX ENERGY CORPORATION
COMMODITY DERIVATIVES – HEDGE POSITION AS OF 5/5/2016

	2016				2017
Oil Derivatives (Bbls)
Swap Contracts
Volume		60,000⁽¹⁾			--
Price	$	44.00		$	--
Collar Contracts
Volume		329,500			--
Ceiling	$	49.65		$	--
Floor	$	38.35		$	--
Collar Contracts with Short Puts
Volume		175,000			--
Ceiling	$	49.60		$	--
Floor	$	41.40		$	--
Short Put	$	31.20		$	--
Natural Gas Derivatives (Mcf)
Swap Contracts
Volume		11,445,000⁽²⁾			6,660,000⁽³⁾
Price	$	2.96		$	3.26
Swaption Contracts
Volume		700,000			--
Price	$	3.15		$	--
Put Spreads
Volume		7,165,000			--
Floor	$	3.26		$	--
Short Put	$	2.51		$	--
Collar Contracts
Volume		1,750,000			1,400,000
Ceiling	$	3.10		$	3.10
Floor	$	2.70		$	2.40
Collar Contracts with Short Puts
Volume		6,665,000			16,900,000
Ceiling	$	3.56		$	3.87
Floor	$	2.96		$	3.01
Short Put	$	2.31		$	2.32
Call Contracts
Volume		--			13,679,900
Ceiling	$	--		$	4.70
Natural Gas Liquids (Bbls)
Swap Contracts
Propane (C3)
Volume		541,000			312,000
Price	$	21.59		$	18.04
Butane (C4)
Volume		133,000			108,000
Price	$	27.10		$	23.80
Isobutane (IC4)
Volume		56,000			48,000
Price	$	27.93		$	24.00
Natural Gasoline (C5+)
Volume		189,000			--
Price	$	52.80		$	--
Ethane
Volume		295,000			240,000
Price	$	8.25		$	9.14
Natural Gas Basis (Mcf)
Swap Contracts
Dominion Appalachia
Volume		13,273,000			10,755,000
Price	$	(0.88	)	$	(0.79	)
Texas Gas Zone 1
Volume		--			14,600,000
Price	$	--		$	(0.13	)
NYMEX Heating Oil (Gal)
Swap Contracts
Volume		7,000			--
Price	$	2.00		$	--
⁽¹⁾Includes 60,000 Bbls of enhanced swaps
⁽²⁾Includes 3.55 Bcf of enhanced swaps
⁽³⁾ Includes 5.70 Bcf of enhanced swaps

APPENDIX
REX ENERGY CORPORATION
NON-GAAP MEASURES

EBITDAX

“EBITDAX” means, for any period, the sum of net income for such period plus the following expenses, charges or income to the extent deducted from or added to net income in such period: interest, income taxes, DD&A, unrealized losses from financial derivatives, non-recurring gains and losses, exploration expenses and other similar non-cash charges, minus all non-cash income, including but not limited to, income from unrealized financial derivatives and gains on asset dispositions, added to net income. EBITDAX, as defined above, is used as a financial measure by our management team and by other users of its financial statements, such as our commercial bank lenders to analyze such things as:

Our operating performance and return on capital in comparison to those of other companies in our industry, without regard to financial or capital structure;
The financial performance of our assets and valuation of the entity without regard to financing methods, capital structure or historical cost basis;
Our ability to generate cash sufficient to pay interest costs, support our indebtedness and make cash distributions to our stockholders; and
The viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.

EBITDAX is not a calculation based on GAAP financial measures and should not be considered as an alternative to net income (loss) (the most directly comparable GAAP financial measure) in measuring our performance, nor should it be used as an exclusive measure of cash flows, because it does not consider the impact of working capital growth, capital expenditures, debt principal reductions, and other sources and uses of cash, which are disclosed in our consolidated statements of cash flows.

We have reported EBITDAX because it is a financial measure used by our existing commercial lenders, and because this measure is commonly reported and widely used by investors as an indicator of a company’s operating performance and ability to incur and service debt. You should carefully consider the specific items included in our computations of EBITDAX. While we have disclosed EBITDAX to permit a more complete comparative analysis of our operating performance and debt servicing ability relative to other companies, you are cautioned that EBITDAX as reported by us may not be comparable in all instances to EBITDAX as reported by other companies. EBITDAX amounts may not be fully available for management’s discretionary use, due to requirements to conserve funds for capital expenditures, debt service and other commitments.

We believe that EBITDAX assists our lenders and investors in comparing our performance on a consistent basis without regard to certain expenses, which can vary significantly depending upon accounting methods. Because we may borrow money to finance our operations, interest expense is a necessary element of our costs. In addition, because we use capital assets, DD&A are also necessary elements of our costs. Finally, we are required to pay federal and state taxes, which are necessary elements of our costs. Therefore, any measures that exclude these elements have material limitations.

To compensate for these limitations, we believe it is important to consider both net income determined under GAAP and EBITDAX to evaluate our performance.

For purposes of consistency with current calculations, we have revised certain amounts relating to prior period EBITDAX. The following table presents a reconciliation of our net income to EBITDAX for each of the periods presented.

	Three Months Ended March 31,
	2016			2015
Net Loss From Continuing Operations	$	(60,141	)	$		(18,479	)
Add Back Non-Recurring Costs¹	8,480				5,022
Add Back Depletion, Depreciation, Amortization and Accretion	19,408				26,126
Add Back (Less) Non-Cash Compensation Expense (Income)	(27		)		2,961
Add Back Interest Expense	13,032				12,017
Add Back Impairment Expense	14,184				7,023
Add Back Exploration Expense	993				518
Add Back (Less) Loss (Gain) on Disposal of Assets	(30		)		65
Less Gain on Financial Derivatives	(4,049		)		(17,119		)
Add Back Cash Settlement of Derivatives	12,995				11,079
Add Back Non-Cash Portion of Equity Method Investments		--			203
Add Back (Less) Income Tax Expense (Benefit)	2,092				(92		)
EBITDAX From Continuing Operations	$	6,937		$		29,324
Net Income From Discontinued Operations	$	--		$		1,962
Net Income Attributable to Noncontrolling Interests		--			(1,297		)
Income From Discontinued Operations Attributable to Rex Energy		--			665
Add Back Depletion, Depreciation, Amortization and Accretion					39
Add Back Interest Expense					191
Less Gain on Disposal of Assets					(32		)
Less Non-Cash Portion of Noncontrolling Interests					(79		)
Add Back Income Tax Expense					435
Add EBITDAX From Discontinued Operations	$	--		$		1,219
EBITDAX (Non-GAAP)	$	6,937		$		30,543

¹Non-Recurring costs for three months ended March 31, 2016 are due to debt issuance costs related to our exchange of unsecured senior notes. Non-Recurring costs for the three months ended March 31, 2015 are due to net fees incurred to terminate two drilling rig contracts earlier than their original term

Adjusted Net Income

“Adjusted Net Income” means, for any period, the sum of net income (loss) from continuing operations before income taxes for the period plus the following expenses, charges or income, in each case, to the extent deducted from or added to net income in the period: unrealized losses from financial derivatives, non-cash compensation expense, dry hole expenses, disposals of assets, impairment and other one-time or non-recurring charges, minus all gains from unrealized financial derivatives, disposal of assets and deferred income tax benefits, added to net income. Adjusted Net Income is used as a financial measure by Rex Energy's management team and by other users of its financial statements, to analyze its financial performance without regard to non-cash deferred taxes and non-cash unrealized losses or gains from oil and gas derivatives. Adjusted Net Income is not a calculation based on GAAP financial measures and should not be considered as an alternative to net income (loss) in measuring the company's performance.

Rex Energy reports Adjusted Net Income because it believes that this measure is commonly reported and widely used by investors as an indicator of a company's operating performance. You should carefully consider the specific items included in the company's computation of this measure. You are cautioned that Adjusted Net Income as reported by Rex Energy may not be comparable in all instances to that reported by other companies.

To compensate for these limitations, the company believes it is important to consider both net income determined under GAAP and Adjusted Net Income.

The following table presents a reconciliation of Rex Energy’s net income from continuing operations to its adjusted net income for each of the periods presented ($ in thousands):

	Three Months Ended March 31,
	2016			2015
Net Loss From Continuing Operations	$	(58,049	)	$	(18,571	)
Gain on Derivatives, Net		(4,049	)		(17,119	)
Cash Settlement of Derivatives		12,995			11,079
Add Back (Less) (Gains) Losses from Financial Derivatives		8,946			(6,040	)
Add Back Non-Recurring Costs¹		8,480			5,022
Add Back Impairment Expense		14,184			7,023
Add Back Dry Hole Expense		843			1
Add Back Non-Cash Compensation Expense		(27	)		2,961
Add Back (Less) Loss (Gain) Loss on Disposal of Assets		(30	)		65
Loss Before Income Taxes, adjusted	$	(25,653	)	$	(9,539	)
Less Income Tax Benefit, adjusted²		10,261			3,816
Adjusted Net Loss	$	(15,392	)	$	(5,723	)

Basic – Adjusted Net Loss Per Share	$	(0.27	)	$	(0.11	)
Basic – Weighted Average Shares of Common Stock Outstanding		56,003			54,370

¹Non-Recurring costs for the three months ended March 31, 2016 are due to debt issuance costs related to our exchange of unsecured senior notes. Non-Recurring costs for the three months ended March 31, 2015 are due to net fees incurred to terminate two drilling rig contracts earlier than their original term
²Assumes an effective tax rate of 40%

Cash General and Administrative Expenses

Cash General and Administrative Expenses (Cash G&A) is the difference between GAAP G&A and non-Cash G&A, which is primarily comprised of non-cash compensation expense. Rex Energy has reported Cash G&A because it believes that this measure is commonly reported and widely used by management and investors as an indicator of overhead efficiency without regard to non-cash expenditures, such as stock compensation. Cash G&A is not a calculation based on GAAP financial measures and should not be considered as an alternative to GAAP G&A in measuring the company’s performance. You should carefully consider the specific items included in the company’s computation of this measure. You are cautioned that Cash G&A as reported by Rex Energy may not be comparable in all instances to that reported by other companies.

To compensate for these limitations, the company believes it is important to consider both Cash G&A and GAAP G&A. The following table presents a reconciliation of Rex Energy’s GAAP G&A to its Cash G&A for each of the periods presented (in thousands):

	Three Months Ended March 31,
	2016			2015
GAAP G&A	$	6,063	$		9,651
Non-Cash Compensation Expense	27			(2,961		)
Cash G&A	$	6,090	$		6,690

Rex Energy Reports First Quarter Operational and Financial Results

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