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2017-05-12 / Energy Updates

Rex Energy expects production growth in 2018

STATE COLLEGE, PA (AP) Rex Energy Corporation recently released an updated two-year financial and operational plan. The 2017 exit rate production growth (Dec. 2017 vs. Dec. 2016) is 15-20 percent. There is an expected year-over-year production growth of 31-36 percent, as well as the year-over-year condensate production growth of over 200 percent and overall liquids production growth of 55-60 percent in 2018.

Additionally, there is a two-year compounded annual production growth rate of 15-20 percent by 2018. The exit rate production growth for 2018 is 10-15 percent (Dec. 2018 vs. Dec. 2017). The production growth in 2017 and 2018 results in approximately $8.0 to $9.0 million reduction in unutilized processing capacity fees.

Rex Energy’s net operational capital expenditures for 2017 are expected to be in the range of $115 - $130 million, with approximately 60 percent allocated to the development of the Marcellus and Upper Devonian Burkett shales in the Moraine East and Legacy Butler Operated Areas.

Approximately 40 percent is allocated to the development of the Utica Shale in the Warrior North Area. The drilled and uncompleted wells in 2017 will be placed into sales in early 2018 and are the catalyst for the increase in expected production growth in 2018.

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