UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 20, 2014

 

 

Rex Energy Corporation

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-33610   20-8814402

(State or other jurisdiction

of incorporation)

  

(Commission

File Number)

  

(IRS Employer

Identification No.)

366 Walker Drive

State College, Pennsylvania 16801

(Address of Principal Executive Office and Zip Code)

(814) 278-7267

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Item 2.02 Results of Operations and Financial Condition.

On October 20, 2014, Rex Energy Corporation (the “Company”) issued a press release providing an update on its third quarter 2014 production results, updated full year 2014 production guidance, updated 2015 hedge position and announced the date of the third quarter earnings release. The release is attached to this Current Report on Form 8-K as Exhibit 99.1.

In accordance with General Instruction B.2 of Form 8-K, the information under this heading, including the related Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth in such a filing.

Item 7.01 Regulation FD Disclosure.

On October 20, 2014, the Company issued the press release discussed above in Item 2.02. The release is attached to this Current Report on Form 8-K as Exhibit 99.1.

In accordance with General Instruction B.2 of Form 8-K, the information under this heading, including the related Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit
Number

   

Exhibit Title

99.1    Press Release of Rex Energy Corporation dated October 20, 2014.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    REX ENERGY CORPORATION
Date: October 20, 2014     By:  

/s/ Jennifer L. McDonough

      Name: Jennifer L. McDonough
      Title: Sr. Vice President, General Counsel and Secretary

EXHIBIT INDEX

 

Exhibit
Number

   

Exhibit Title

99.1    Press Release of Rex Energy Corporation dated October 20, 2014.
EX-99.1

Exhibit 99.1

 

LOGO

Rex Energy Provides Third Quarter Production Results, Increases Full Year 2014 Production Guidance, Updates 2015 Hedge Position and Announces Date of Third Quarter Earnings Release

 

  •   Third quarter production of 169.7 MMcfe/d exceeds high end of company guidance by 3%; represents a 32% sequential increase in average daily production over the second quarter of 2014 and 72% over the second quarter of 2013

 

  •   Average daily production from oil, condensate and NGLs (including ethane) reached a record level of 10.4 MBoe/d, a 61% increase over the second quarter of 2014

 

  •   Record oil and condensate production of 3.3 Mboe/d, a 20% increase over the second quarter of 2014

 

  •   Full year 2014 production guidance increased by 2% at the midpoint of the guidance range

STATE COLLEGE, Pa., October 20, 2014 (GLOBE NEWSWIRE) – Rex Energy Corporation (Nasdaq: REXX) today provided its preliminary third quarter 2014 production results, increased its full year 2014 production guidance and announced the date of its third quarter 2014 earnings release and conference call.

Production Update

Third quarter 2014 production volumes were 169.7 MMcfe/d, an increase of 72% over the third quarter of 2013 and 32% over the second quarter of 2014, consisting of 107.0 MMcf/d of natural gas and 10.4 Mboe/d of oil, condensate and NGLs (including 2.6 Mboe/d of ethane). Oil, condensate and NGLs (including ethane) accounted for 37% of net production during the third quarter and increased 61% sequentially over the second quarter of 2014. Production from oil and condensate reached a record level of 3.3 Mboe/d, an increase of 20% over the second quarter to 2014. Third quarter 2014 production of 169.7 MMcfe/d exceeded the high end of the company’s production guidance range of 159.0 – 165.0 MMcfe/d by 3%.

“We are extremely pleased with our production results for the third quarter,” said Tom Stabley, Chief Executive Officer of Rex Energy. “In just 18 months, we have more than doubled the company’s average daily production while nearly tripling the company’s liquids production. We believe our rapid growth in production over the last year and a half further demonstrates the quality of both our asset base and our technical team.”

Fourth Quarter 2014 and Full Year 2014 Production Guidance

Rex Energy is providing its initial production guidance for the fourth quarter of 2014 and increasing its previously issued production guidance for the full year 2014. The company expects fourth quarter production volumes to range from 179.0 MMcfe/d – 185.0 MMcfe/d, representing a sequential increase of 7% at the midpoint of guidance over the third quarter and a 65% year-over-year increase at the midpoint of guidance. In addition, the company is increasing its full year 2014 production guidance by 3.0 MMcfe/d at the midpoint to 150.0 MMcfe/d – 152.0 MMcfe/d from its previously announced guidance of 146.0 MMcfe/d – 150.0 MMcfe/d. The increase in full year production guidance is due to strong production results from the company’s existing producing properties.

In addition, the company continues to expect its full year 2014 average realized natural gas price, including the effects of basis hedges, to be approximately $0.60 - $0.80 below the Henry Hub natural gas index price.

2015 Hedging Update

Consistent with its historical practice, the company continues to add to its hedging position at prices that generate strong rates of return in order provide additional certainty regarding its expected cash flows. For 2015, the company now has approximately 49% of its current natural gas production hedged at a weighted average floor price of $4.15. The company has also hedged approximately 43% of its current oil production for the first half of 2015 at a weighted average floor price of $90.88. Finally, the company has recently entered into agreements to lock in approximately 60% of its expected natural gas production previously sold under Dominion South Point pricing for 2015 at a weighted average price of $0.82 below the Henry Hub natural gas index price.

Third Quarter Earnings Release

The company plans to release third quarter 2014 financial and operational results on Tuesday, November 4, 2014 after market close. Management will host a live conference call and webcast on Wednesday, November 5, 2014 at 10 a.m. ET to review third quarter financial results and operational highlights. Reference material for the conference call and webcast will be posted to the company’s website prior to the call.

All financial results included in the earnings release or discussed on the conference call and webcast will remain subject to our independent auditor’s review. The telephone number to access the conference call is (866) 437-1772. The conference call will also 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 December 4, 2014.

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.

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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, events or developments that Rex Energy expects, believes or anticipates will or may occur in the future are forward-looking statements. Specifically, statements in this release regarding Rex Energy’s expectations for fourth quarter 2014 and full year 2014 guidance, and realized prices for 2014 are forward looking. 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, 2013, and we strongly encourage you to review those documents. You should not place undue reliance on forward-looking statements, which 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.

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For more information, please contact:

Mark Aydin

Manager, Investor Relations

(814) 278-7249

maydin@rexenergycorp.com