- Realized natural gas prices improved 67%, before hedging, as compared to the full-year 2016
- Realized C3+ NGL pricing for fourth quarter of 2017 was 72% of WTI before hedging
- Previously announced four-well Wilson Pad produced at an average 30-day sales rate per well, assuming full ethane recovery, of 10.0 MMcfe/d
- Three-well Jenkins Pad produced at an average 30-day sales rate per well, assuming full ethane recovery, of 6.0 MMcfe/d consisting of 70% liquids, including an average 332 Bbls/d of condensate
- Fourth quarter production at the high end of guidance range
Note: All results included in this release are unaudited; they are preliminary pending the completion of the Company’s financial closing procedures. These preliminary estimates may be revised in connection with the preparation of our financial statements for the year ended
Production Results and Price Realizations
Rex Energy’s fourth quarter 2017 production was 205.3 MMcfe/d, consisting of 123.4 MMcf/d of natural gas, 13.0 Mboe/d of NGLs (including 7.3 Mboe/d of ethane) and 0.7 Mboe/d of condensate. Condensate and NGLs (including ethane) accounted for 40% of production during the quarter. Full-year 2017 production was 184.5 MMcfe/d.
During the fourth quarter of 2017, realized natural gas prices, before the effects of hedging, improved approximately 7% as compared to the fourth quarter of 2016. For the full-year 2017, realized natural gas prices, before the effects of hedging, improved approximately 67% as compared to full-year 2016. The improvement in natural gas realizations was driven by an increase in sales of natural gas to the
The table below outlines Rex Energy’s fourth quarter production and realized pricing, including the effects of cash-settled derivatives, together with the same period comparison from the prior year:
|Three Months Ended
|Full Year Ended
|Production Data (average per day):|
|Natural gas (Mcf)||123,426||120,929||113,580||122,089|
|Natural gas liquids (C3+) (Bbls)||5,710||5,436||5,072||5,454|
|Average price per unit:|
|Realized natural gas price per Mcf – as reported||$||2.39||$||2.23||$||2.74||$||1.64|
|Realized impact from cash settled derivatives per Mcf||0.24||0.19||0.03||0.59|
|Net realized price per Mcf||$||2.63||$||2.42||$||2.77||$||2.23|
|Realized NGL (C3+) price per Bbl – as reported||$||39.75||$||27.64||$||31.21||$||17.97|
|Realized impact from cash settled derivatives per Bbl||(11.25||)||(2.25||)||(6.37||)||2.46|
|Net realized price per Bbl||$||28.50||$||25.39||$||24.84||$||20.43|
|Realized ethane price per Bbl – as reported||$||10.03||$||9.36||$||9.96||$||7.81|
|Realized impact from cash settled derivatives per Bbl||0.04||(0.48||)||0.02||(0.01||)|
|Net realized price per Bbl||$||10.07||$||8.88||$||9.98||$||7.80|
|Realized condensate price per Bbl – as reported||$||49.29||$||43.13||$||44.89||$||37.08|
|Realized impact from cash settled derivatives per Bbl||(0.31||)||(5.40||)||1.04||4.56|
|Net realized price per Bbl||$||48.98||$||37.73||$||45.93||$||41.64|
|Realized gas differential to NYMEX||$||(0.30||)||$||(0.56||)||$||(0.34||)||$||(0.23||)|
|(1) Natural gas liquids (C3+), ethane and condensate are converted at the rate of one barrel of oil equivalent to six Mcfe.|
|(2) Includes production and revenue from Warrior South, which was sold in January 2017. Excluding the effects of Warrior South, annual production would have been 115,421 Mcf/d of natural gas, 5,037 Bbls/d of NGLs (C3+), 5,768 Bbls/d of ethane, and 920 Bbls/d of condensate, totaling 185,775 MCFe/d for the full-year 2016; 115,349 Mcf/d of natural gas, 5,093 Bbls/d of NGLs (C3+), 5,792 Bbls/d of ethane, and 1,054 Bbls/d of condensate, totaling 186,981 MCFe for the fourth quarter of 2016.|
Four-Well Wilson Pad – Butler Legacy
As previously announced, the four-well Wilson pad was placed into sales during
The average 30-day sales rate per well was 10.0 MMcfe/d, consisting of 6.0 MMcf/d of natural gas and 662 Bbls/d of NGLs.
Three of the four wells on the Wilson pad were drilled at an average lateral length of approximately 10,200 feet. These three extended-length wells produced at an average 30-day sales rate per well of 11.4 MMcfe/d, consisting of 6.9 MMcf/d of natural gas and 755 Bbls/d of NGLs. Current rates from these wells continue to show strong production results and pressure profiles.
|Three-Extended Lateral Wilson Wells – New Rates|
|Pad||Natural Gas (Mcf/d)||NGLs (Bbls/d)||Total (Mcfe/d)||Liquids %|
“We are very pleased with the continued performance of the Wilson pad, in particular the three extended lateral length wells, which have continued to exceed our initial expectations,” said
Three-Well Jenkins Pad – Warrior North
The Company has recently placed the three-well Jenkins pad into sales. The three wells were drilled to an average lateral length of approximately 6,500 feet and were completed with an average of 37 stages. The three wells produced at an average 30-days sales rate per well of approximately 6.0 MMcfe/d, consisting of 1.8 MMcf/d of natural gas, 370 Bbls/d of NGLs and 332 Bbls/d of condensate. In conjunction with placing these wells into sales, the Company has returned to production certain wells that were shut-in during the completion phase of the Jenkins pad, in which the Company owns a 100% working interest.
* All sales rates assume full ethane recovery.
Drilling and Completion Update
In Moraine East, the Company recently finished completing the four-well Kern pad, in which it owns a 100% working interest. These wells are expected to be placed into sales in March and will have a similar completion design to the previously completed Frye pad. Currently, the Company is in the process of completing the recently drilled seven-well Goebeler pad in Warrior North, where it owns an approximate 71% working interest. Finally, the Company is currently drilling the fourth of five wells on the Hofer pad in the Butler Legacy area, where the Company has seen some of the best results in the area to date.
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, developments, forecasts, or guidance that
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Source: Rex Energy Corporation