Press Releases

Nov 05, 2009
Rex Energy Corporation Provides Operational Update and Announces Third Quarter 2009 Results

Nov 5, 2009 (GlobeNewswire via COMTEX News Network) --



 * Horizontal Marcellus Shale well tests at an average rate of 4.2 Mmcf
   per day over 30-day period

 * Natural gas production up 27% from previous quarter and 62% from
   same period in 2008

STATE COLLEGE, Pa., Nov. 5, 2009 (GLOBE NEWSWIRE) -- Rex Energy Corporation ("Rex Energy") (Nasdaq:REXX) today announced third quarter 2009 results. Production averaged 2,684 BOEs per day, which was 72% oil, 27% natural gas and 1% natural gas liquids. Realized gas prices after adjustment for cash settled derivatives were $6.33 per mcf, as compared to $9.16 per mcf in the prior year quarter. Realized oil prices after adjustment for cash settled derivatives were $63.06 per bbl, as compared to $83.04 per bbl in the prior year quarter. As a result, oil and gas sales, including cash settled derivatives, declined 26% to $13.8 million. EBITDAX from continuing operations, a non-GAAP measure, declined 31% from the third quarter 2008 to $5.2 million. The company recorded a net loss for the quarter of $1.2 million, or $0.03 per share. Adjusting for certain non-cash items, net loss comparable to analyst estimates was $2.1 million, or $0.06 per share.

Benjamin W. Hulburt, Rex Energy's President and CEO, commented, "We are continuing to accelerate our production growth due primarily to our Marcellus Shale exploration. Natural gas production was up 62% over the same period in 2008 and up 29% compared to the second quarter 2009, despite experiencing continued pipeline related production curtailments. During the third quarter, a portion of our natural gas production from our conventional wells was shut-in due to third party line maintenance, which effectively reduced our average daily natural gas sales by approximately 17%."

Oil production in the third quarter 2009 declined 10% compared to the third quarter 2008. The decline in oil production is attributable to the significant reduction of developmental activity in the Illinois Basin from November 2008 through July 2009 due to low oil prices. The company resumed its conventional oil well drilling during the third quarter, which is expected to impact our production beginning in the fourth quarter of 2009 and first quarter of 2010. The company expects to complete 20 new conventional oil wells by the end of the year, with a similar number in 2010.

Capital expenditures in the third quarter of 2009 were $4.4 million of which $2.6 million was incurred in the company's Illinois Basin operations, and $1.8 million was incurred in the company's Appalachian Basin operations. In the Appalachian Basin, the company's focus during the quarter was in drilling horizontal Marcellus Shale wells within the company's joint venture areas with the Williams Production Company, LLC and Williams Production Appalachia, LLC, which resulted in minimal capital expense since the company is required to fund only 10% of the cost to drill and complete the wells in which it owns a 50% interest.

Mr. Hulburt continued, "We now have four horizontal Marcellus Shale wells in line and producing -- one in Butler County, which was previously announced, and three in Westmoreland County. In Butler County, the P. Knauff #1H has been in line and producing for approximately four months and continues to produce approximately 2.4 Mmcfe per day. In Westmoreland County, we are very encouraged by our initial assessment of the area. After experimenting with certain well parameters on our first two wells, we are pleased to report that the third well has resulted in an average of approximately 4.2 Mmcf per day over a 30 day period."

In a final comment, Mr. Hulburt stated, "We completed drilling our fourth horizontal well and are currently drilling the fifth and sixth wells in Westmoreland County. We expect to stimulate and complete the three wells during the fourth quarter. Additionally, we are currently drilling our first horizontal well in Clearfield County, Pennsylvania and we expect to stimulate and complete the well during the fourth quarter as well."

(EBITDAX and Earnings/Net Loss Comparable to Analyst Estimates are non-GAAP financial measures. Please see the accompanying definitions and tables for the reconciliation of each of these non-GAAP measures. The company has classified all first quarter 2009 and prior period amounts related to its operations in the Southwestern Region as discontinued operations due to the sale of these assets during the first quarter of 2009. Please see the accompanying table for the reconciliation of the reported GAAP amounts to the amounts that would have been reported if Southwestern Region operations were included in continuing operations.)

Conference Call Information

A conference call to review the third quarter 2009 financial and operational results is scheduled for Friday, November 6, 2009 at 10:00 a.m. Eastern time. A webcast of the conference call will be broadcast live and available for replay on the company's website at www.rexenergy.com in the Events and Presentations section under the Investor Relations tab.

Furthermore, Rex Energy will be incorporating slides with the conference call and webcast, which are now available on the company's website under the Investor Relations tab.

About Rex Energy Corporation

Rex Energy Corporation is an independent oil and gas company operating in the Illinois Basin and the Appalachian Basin of the United States. The company has pursued a balanced growth strategy of exploiting its sizable inventory of lower risk developmental drilling locations, pursuing its higher potential exploration drilling prospects and actively seeking to acquire complementary oil and natural gas properties.

The Rex Energy Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5489

Forward-Looking Statements

Except for historical information, statements made in this release, including those relating to significant potential, future earnings, cash flow, capital expenditures, production growth and planned number of wells, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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, including, but not limited to, adverse economic conditions in the United States and globally; the difficult and adverse conditions in the domestic and global capital and credit markets; domestic and global demand for oil and natural gas; sustained declines in the prices the company receives for oil and natural gas adversely affecting operating results and cash flow; the effects of government regulation, permitting and other legal requirements; the quality of Rex Energy's properties with regard to, among other things, the existence of reserves in economic quantities; uncertainties about the estimates of the company's oil and natural gas reserves; the company's ability to increase production and oil and natural gas income through exploration and development; Rex Energy's ability to successfully apply horizontal drilling techniques and tertiary recovery methods; the number of well locations to be drilled, the cost to drill and the time frame within which they will be drilled; drilling and operating risks; the availability of equipment, such as drilling rigs and transportation pipelines; changes in the company's drilling plans and related budgets; and the adequacy of capital resources and liquidity including, but not limited to, access to additional borrowing capacity. The company undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in the company's filings with the Securities and Exchange Commission, which are incorporated by reference.

The company's internal estimates of reserves may be subject to revision and may be different from estimates by the company's external reservoir engineers at year end. Although the company believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.



                      REX ENERGY CORPORATION
                 CONSOLIDATED BALANCE SHEETS
          ($ in Thousands, Except per Share Amounts)

                                          Sept.30, 2009
                                           (unaudited)   Dec. 31, 2008
                                          -------------  -------------
       ASSETS

 Current Assets
  Cash and Cash Equivalents               $       4,741  $       7,046
  Accounts Receivable                             9,589          5,840
  Short-Term Derivative Instruments               2,304          8,153
  Current Deferred Tax Asset                        691             --
  Inventory, Prepaid Expenses and Other           1,195          3,068
                                          -------------  -------------
    Total Current Assets                         18,520         24,107
 Property and Equipment (Successful
  Efforts Method)

  Evaluated Oil and Gas Properties              200,437        185,108
  Unevaluated Oil and Gas Properties             76,417         65,564
  Other Property and Equipment                   23,352         19,388
  Wells and Facilities in Progress               29,158         29,629
  Pipelines                                       5,166          3,457
                                          -------------  -------------
    Total Property and Equipment                334,530        303,146
  Less: Accumulated Depreciation,
   Depletion and Amortization                   (70,018)       (53,288)
                                          -------------  -------------
    Net Property and Equipment                  264,512        249,858
  Assets Held for Sale                               --         18,852
  Other Assets- Net                                 147            122
  Intangible Assets- Net                          1,227          1,506
  Investment in RW Gathering                        516             --
  Long-Term Derivative Instruments                2,030          7,561
                                          -------------  -------------
 Total Assets                             $     286,952  $     302,006
                                          =============  =============

    LIABILITIES AND EQUITY

 Current Liabilities

  Accounts Payable                        $       9,943  $       7,180
  Accrued Expenses                                6,165          7,388
  Short-Term Derivative Instruments               3,131             --
  Current Deferred Tax Liability                    --           2,785
                                          -------------  -------------
    Total Current Liabilities             $      19,239         17,353
  Senior Secured Line of Credit and
   Long-Term Debt                                15,056         15,000
  Long-Term Derivative Instruments                1,924          1,476
  Long-Term Deferred Tax Liability                7,756         11,995
  Other Deposits and Liabilities                  5,799          7,322
  Liabilities Related to Assets Held
   for Sale                                          --          1,838
  Future Abandonment Cost                        16,166         15,174
                                          -------------  -------------
 Total Liabilities                        $      65,940  $      70,158


 Commitments and Contingencies
 Owners' Equity

  Common Stock, $.001 par value per
   share, 100,000,000 shares
   authorized and 36,837,312 shares
   issued and outstanding on September
   30, 2009 and 36,589,212 shares issued
   and outstanding on December 31, 2008              37             37
  Additional Paid-In Capital                    291,945        291,133
  Accumulated Deficit                           (70,970)       (59,322)
                                          -------------  -------------
  Total Owners' Equity                          221,012        231,848
                                          -------------  -------------
 Total Liabilities  and Owners' Equity     $ 286,952    $      302,006
                                          =============  =============


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

                             Three Months Ended     Nine Months Ended
                               September 30,          September 30,
                            --------------------  --------------------
                               2009       2008       2009       2008
                            ---------  ---------  ---------  ---------
 OPERATING REVENUE
  Oil and Natural Gas Sales $  13,012  $  25,275  $  33,326  $  70,765
  Other Revenue                    43  $      29  $     100  $      93
                            ---------  ---------  ---------  ---------
   TOTAL OPERATING REVENUE  $  13,055     25,304     33,426     70,858

 OPERATING EXPENSES
  Production and Lease
   Operating Expenses           5,660      7,637     16,050     20,416
  General and
   Administrative Expense       2,799      3,759     10,942     10,882
  Loss on Disposal
   of Assets                       17      6,274        417      6,426
  Impairment Expense              477         --        865         --
  Exploration Expense             370      1,113      1,204      2,395
  Depreciation, Depletion,
   Amortization and
    Accretion                   6,059      4,710     18,423     14,361
                            ---------  ---------  ---------  ---------
   TOTAL OPERATING EXPENSES $  15,382  $  23,493  $  47,901  $  54,480
                            ---------  ---------  ---------  ---------

   INCOME (LOSS) FROM
    OPERATIONS              $  (2,327) $   1,811  $ (14,475) $  16,378

 OTHER INCOME (EXPENSE)
  Interest Income                   2        137          3        320
  Interest Expense               (207)      (207)      (612)      (844)
  Gain (Loss) on
   Derivatives, Net               394     60,020     (4,853)   (29,998)
  Other Expense                    (7)       (79)       (38)       (61)
                            ---------  ---------  ---------  ---------
   TOTAL OTHER INCOME
   (EXPENSE)                $     182  $  59,871  $  (5,500) $ (30,583)

 INCOME (LOSS) FROM
  CONTINUING OPERATIONS
  BEFORE INCOME TAX            (2,145)    61,682    (19,975)   (14,205)
 Income Tax Benefit
  (Expense)                       959    (24,899)     8,004      5,789
                            ---------  ---------  ---------  ---------
 INCOME (LOSS) FROM
  CONTINUING OPERATIONS     $  (1,186) $  36,783  $ (11,971) $  (8,416)
 Income (Loss) from
  Discontinued Operations,
  Net of Taxes                     --        (28)       323         37
                            ---------  ---------  ---------  ---------
   NET INCOME (LOSS)        $  (1,186) $  36,755  $ (11,648) $  (8,379)
                            =========  =========  =========  =========

 Earnings per common share:
 Basic--income (loss) from
  continuing operations     $   (0.03) $    1.01  $   (0.33) $   (0.25)
 Basic--income from
  discontinued operations          --         --       0.01         --
                            ---------  ---------  ---------  ---------
 Basic--net income (loss)   $   (0.03) $    1.01  $   (0.32) $   (0.25)
 Basic--weighted average
  shares of common stock
  outstanding                  36,844     36,570     36,802     33,914

 Diluted--income (loss)
  from continuing
  operations                $   (0.03) $    1.00  $   (0.33) $   (0.25)
 Diluted--income from
  discontinued operations          --       --         0.01         --
                            ---------  ---------  ---------  ---------
 Diluted--net income (loss) $   (0.03) $    1.00  $   (0.32) $   (0.25)
 Diluted--weighted average
  shares of common
  stock outstanding            36,844     36,699     36,802     33,914

                          REX ENERGY CORPORATION
                   CONSOLIDATED OPERATIONAL HIGHLIGHTS
                                 (Unaudited)

                             Three Months Ended      Nine Months Ended
                               September 30,           September 30,
                            --------------------  --------------------
                              2009       2008       2009        2008
                            ---------  ---------  ---------  ---------

 Oil and gas sales
  (in thousands):
  Oil and condensate sales     11,503     22,692     29,033     63,017
  Natural gas sales             1,474      2,583      4,258      7,748
  Natural gas liquid sales         35         --         35         --
   Cash-settled derivatives:
   Crude oil (a)                 (305)    (6,353)     3,764    (17,044)
   Natural gas                  1,089       (287)     2,544       (660)
                             --------    -------   --------  ---------
    Total oil and gas
     sales including cash      13,796     18,635     39,634     53,061
     settled derivatives

 Production during
  the period:
  Oil and condensate (Bbls)   177,589    196,780    542,467    574,690
  Natural gas (Mcf)           405,001    250,704  1,026,409    764,293
  Natural gas liquids (Bbls)    1,845         --      1,845         --
                             --------    -------  ---------  ---------
   Total (BOE)(a)             246,934    238,564    715,380    702,072

 Production - average
  per day:
  Oil and condensate (Bbls)     1,930      2,139      1,987      2,097
  Natural gas (Mcf)             4,402      2,725      3,760      2,789
  Natural gas liquids (Bbls)       20         --          7         --
                             --------    -------  ---------  ---------
   Total (BOE)(b)               2,684      2,593      2,620      2,562

 Average price per unit:
  Realized crude oil and
   condensate  price
   per Bbl - as reported    $   64.77  $  115.32  $   53.52  $  109.65
  Realized impact from
   cash settled
   derivatives per Bbl          (1.71)    (32.28)      6.94     (29.65)
                             --------  ---------  ---------  ---------
  Net realized price
   per Bbl                  $   63.06  $   83.04  $   60.46  $   80.00

  Realized natural gas
   price per Mcf -
   as reported              $    3.64  $   10.30  $    4.15  $   10.14
  Realized impact from
   cash settled derivatives
   per Mcf                       2.69      (1.14)      2.48      (0.86)
                             --------  ---------  ---------  ---------
   Net realized price
    per Mcf                 $    6.33  $    9.16  $    6.63  $    9.28

  Realized natural gas
   liquids price per Bbl
   - as reported            $   18.91         --  $   18.91         --
  Realized impact from
   cash settled derivatives
   per Bbl                         --         --         --         --
                             --------  ---------  ---------  ---------
   Net realized price
    per Bbl                 $   18.91         --  $   18.91         --

 a  Excludes $4.6 million for the early settlement of certain oil
    derivatives associated with 2011 redeemed in the first quarter of
    2009

 b  Natural gas is converted at the rate of six Mcf to one BOE. Oil
    and natural gas liquids are converted at a rate of one Bbl to
    one BOE




                        REX ENERGY CORPORATION
           OIL AND GAS DERIVATIVES AS OF SEPTEMBER 30, 2009
                              (Unaudited)

                             % of Current
     Year         Volume     Production  Average Floor  Average Ceiling
 -------------  -----------  ----------  -------------  --------------

      Oil
      ---
 Oct - Dec '09   147 MBbls       85%        $ 63.98         $  75.74
      2010       588 MBbls       88%        $ 62.71         $  79.31
      2011       156 MBbls       24%        $ 65.00         $ 100.50

  Natural Gas
  -----------
 Oct - Dec '09    330 MMcf       79%        $  6.73         $   8.47
      2010        1.80 Bcf      120%        $  6.57         $   9.25
      2011        1.56 Bcf      115%        $  6.62         $  11.03
      2012        600 MMcf       49%        $  5.60         $   7.86

Non-GAAP Financial Measures

EBITDAX

"EBITDAX", for any defined 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, depreciation, depletion, amortization, accretion, unrealized losses from financial derivatives, exploration expenses, and other similar non-cash charges, minus all non-cash income, including but not limited to, income from unrealized financial derivatives, added to net income. EBITDAX, as defined above, is used as a financial measure by Rex Energy's management team and by other users of its financial statements, such as the company's commercial bank lenders, to analyze such things as:



 * Rex Energy's operating performance and return on capital in
   comparison to those of other companies in its industry, without
   regard to financial or capital structure;
 * The financial performance of the company's assets and valuation of
   the entity, without regard to financing methods, capital structure
   or historical cost basis;
 * Rex Energy's ability to generate cash sufficient to pay interest
   costs, support its indebtedness and make cash distributions to its
   stockholders; and
 * The viability of acquisitions and capital expenditure projects and
   the overall rates or 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) in measuring the company's performance, nor used as an exclusive measure of cash flow, 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 the company's statements of cash flows.

Rex Energy has reported EBITDAX because it is a financial measure used by its 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 the company's computations of EBITDAX. While Rex Energy has disclosed its EBITDAX to permit a more complete comparative analysis of its operating performance and debt servicing ability relative to other companies, you are cautioned that EBITDAX as reported by the company may not be comparable in all instances to EBITDAX as reported by other companies. EBITDAX amounts may not by fully available for management's discretionary use, due to requirements to conserve funds for capital expenditures, debt service and other commitments.

Rex Energy believes that EBITDAX assists its lenders and investors in comparing a company's performance on a consistent basis without regard to certain expenses, which can vary significantly depending upon accounting methods. Because the company may borrow money to finance its operations, interest expense is a necessary element of its costs and ability to generate cash available for distribution. Because Rex Energy uses capital assets, depreciation and amortization are also necessary elements of its costs. Additionally, the company is required to pay federal and state taxes, which are necessary elements of its costs. Therefore, any measures that exclude these elements have material limitations.

To compensate for these limitations, Rex Energy believes it is important to consider both net income (loss) determined under GAAP and EBITDAX to evaluate its performance.

The following table presents a reconciliation of the company's net (loss) from continuing operations to its EBITDAX from continuing operations for each of the periods presented ($ in thousands):



                                Three Months Ended   Nine Months Ended
                                   September 30,       September 30,
                                ------------------  ------------------
                                  2009      2008      2009      2008
                                --------  --------  --------  --------
 Net Income (Loss) From
  Continuing Operations         $ (1,186) $ 36,783  $(11,971) $ (8,416)
   Add Back Depletion,
    Depreciation, Amortization
    & Accretion                    6,059     4,710    18,423    14,361
   Add Back (Less) Non-Cash
    Compensation Expense
    (Income)                        (128)      464       968     1,567
   Add Back Interest Expense         207       207       612       844
   Add Back Impairment Expense       477        --       865        --
   Add Back Exploration Expense      370     1,113     1,204     2,395
   Less Interest Income               (2)     (137)       (3)     (320)
   Add Back Loss on Interest
    Rate Swap                        198        84       566       182
   Add Back Loss on Disposal of
    Assets                            17     6,274       417     6,426
   Add Back (Less) Unrealized
    Loss (Gain) from Financial
    Derivatives                      192   (66,744)   14,960    12,112
   Add Back (Less) Income Tax
    Expense (Benefit)               (959)   24,899    (8,004)   (5,789)
                                --------  --------  --------  --------
 EBITDAX From Continuing
  Operations                    $  5,245  $  7,653  $ 18,037  $ 23,362
                                ========  ========  ========  ========

Earnings Comparable with Analyst Estimates

"Earnings Comparable with Analyst Estimates" 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: deferred income taxes, unrealized gains or losses from financial derivatives, minus gains from unrealized financial derivatives, minus deferred income tax benefits, added to net income. Earnings Comparable with Analyst Estimates, as defined above, 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. Earnings Comparable with Analyst Estimates 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 has reported Earnings Comparable with Analyst Estimates 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 Earning Comparable with Analyst Estimates as report 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 Earnings Comparable with Analyst Estimates.

The following table presents a reconciliation of Rex Energy's net income (loss) from continuing operations to its Earnings Comparable with Analyst Estimates for each of the periods presented ($ in thousands):



                                Three Months Ended   Nine Months Ended
                                   September 30,       September 30,
                                ------------------  ------------------
                                  2009      2008      2009      2008
                                --------  --------  --------  --------

 Net Income (Loss) From
  Continuing Operations         $ (1,186) $ 36,783  $(11,971) $ (8,416)
   Add Back (Less) Unrealized
    Loss (Gain) from Financial
    Derivatives                      192   (66,744)   14,960    12,112
   Add Back Dry Hole Expense          --        --        --         2
   Add Back (Less) Non-cash
    Compensation Expense
    (Income)                        (128)      464       968     1,567
   Add Back Loss on Disposal of
    Assets                            17     6,274       417     6,426
   Add Back (Less) Income Tax
    Expense (Benefit)               (959)   24,899    (8,004)   (5,789)
                                --------  --------  --------  --------
 Net Income (Loss) From
  Continuing Operations
  Comparable to Analysts
  Estimates                     $ (2,064) $  1,676  $ (3,630) $  5,902
                                ========  ========  ========  ========

Discontinued Operations

On March 24, 2009, Rex Energy completed the previously announced divestiture of Southwestern Region operations, predominately located in the Permian Basin in the states of Texas and New Mexico. The company received net cash proceeds of approximately $17.3 million, which may be adjusted by certain post-closing adjustments, plus the assumption of certain liabilities, based on an effective date of October 1, 2008.

Pursuant to accounting rules for discontinued operations, these assets were classified as Assets Held for Sale on the Consolidated Balance Sheet as of December 31, 2008, and results of operations are reflected in discontinued operations in the Consolidated Statements of Operations. At March 31, 2009, Rex Energy recorded a loss on sale of assets of approximately $425,000 in the Consolidated Statement of Operations. Summarized financial information for discontinued operations is set forth below ($ in thousands, except per share data):



                                Three Months Ended   Nine Months Ended
                                   September 30,       September 30,
                                ------------------  ------------------
                                  2009      2008      2009      2008
                                --------  --------  --------  --------

 Revenues:
  Oil and Gas Sales             $     --  $  1,934  $    193  $  6,041
  Other Revenue                       --       112        --       304
                                --------  --------  --------  --------
   Total Operating Revenue            --     2,046       193     6,345
                                --------  --------  --------  --------
 Costs and Expenses:
  Production and Lease
   Operating Expense                  --       631       237     1,769
  General and Administrative
   Expense (Income)                   --       207       (97)      680
  Exploration Expense of Oil
   and Gas Properties                 --     1,074        --     2,195
  Depreciation, Depletion,
   Amortization and Accretion         --       181        --     1,600
  Loss on Sale of Oil and Gas
   Properties                         --        --        --        41
  Gain on Derivatives                 --        --      (558)       --
  Other Income                        --        --        --        (2)
                                --------  --------  --------  --------
   Total Costs and Expenses           --     2,093      (418)    6,283
                                --------  --------  --------  --------
 Income from Discontinued
  Operations Before Income
  Taxes                               --       (47)      611        62
   Income Tax Expense (Benefit)       --       (19)      288        25
                                --------  --------  --------  --------
 Income (Loss) From
  Discontinued Operations, net
  of taxes                      $     --  $    (28) $    323  $     37
                                ========  ========  ========  ========

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Rex Energy Corporation

CONTACT:  Rex Energy Corporation
Julia Williams, Investor Relations Coordinator
(814) 278-7130
jwilliams@rexenergycorp.com

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