STATE COLLEGE, Pa., July 17, 2012 (GLOBE NEWSWIRE) -- Rex Energy Corporation (Nasdaq:REXX) today announced its second quarter 2012 production and revenue results.
Second quarter 2012 net production volumes were 62.5 MMcfe/d, consisting of 46.3 MMcfe/d of natural gas and 2.7 MBoe/d of oil and natural gas liquids, which represents an increase of 78% over the second quarter of 2011 and an increase of 3% over the first quarter of 2012. Production for the first six months of 2012 totaled 61.6 MMcfe/d, which represents an increase of 97% over the first six months of 2011. Oil and natural gas liquids accounted for 26% of the total net production for the second quarter of 2012.
Second quarter 2012 production was constrained by an estimated 1.2 – 1.8 MMcfe/d due to involuntary production curtailments in the company's non-operated area in Westmoreland County, Pennsylvania and extended downtime associated with the startup of the recently-commissioned Bluestone Plant.
Revenues from oil, natural gas and natural gas liquids for the second quarter of 2012 totaled approximately $27.7 million, of which 63% was from oil and natural gas liquids, as compared to $31.5 million during the first quarter of 2012. After the effects of cash settled derivatives, realized natural gas prices were $3.66 per Mcf, realized oil prices were $89.53 per barrel, and realized natural gas liquids prices were $31.60 per barrel for the second quarter of 2012. Realized prices for natural gas liquids were pressured by continued weakness in the propane market and other temporary propane-related factors. Unanticipated maintenance for the Sarsen depropanizer and an extended commissioning of the Bluestone depropanizer resulted in higher volumes of propane blended into the NGL stream and sold outside of premium local propane markets. The depropanizers were placed back in to service in July and the company expects third quarter sales of propane to benefit from increased operational efficiencies. In June, the company implemented a hedging strategy with respect to its natural gas liquids, which partially offset the propane impact for the month and resulted in an additional price realization of approximately $1.21 per barrel during the second quarter.
Results Subject to Review
The financial results contained in this release remain subject to the review of the company and its independent auditors.
Second Quarter Earnings Release and Conference Call
Rex Energy plans to release second quarter 2012 operational results on Tuesday, August 7, 2012 after market close. Management will host a live conference call and webcast on Wednesday, August 8, 2012 at 10 a.m. ET to review second quarter results and operational highlights. All financial results discussed in the second quarter earnings release and on the webcast will remain subject to our independent auditor's review. The telephone number to access the conference call is (877) 849-6312. The conference call will be available for replay through the company's website at www.rexenergy.com under the Investor Relations tab. The replay of the event and reference materials will be available on the company's website through September 8, 2012.
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 potential exploration drilling prospects while acquiring oil and natural gas properties complementary to its portfolio.
The Rex Energy Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5489
Forward Looking Statements
Certain statements made in this release, including those relating to factors affecting the company's production, outlook for propane sales and related estimates, 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 are indicated by words such as "expected", "expects", "anticipates" and similar words. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the company's future performance are subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements. Please refer to the company's most recent Annual Report on Form 10-K and it subsequent periodic filings with the Securities and Exchange Commission for a full list of these factors and further information on the risks and uncertainties related to the company. These filings are available on the company's website, www.rexenergy.com, under the Investor Relations tab. Rex Energy undertakes no obligation to publicly update or revise any forward-looking statements.