Press Releases

May 10, 2016
Rex Energy Reports First Quarter Operational and Financial Results

  • Closed joint development agreement with Benefit Street Partners
  • Exchanged $633 million of Senior Unsecured Notes into 2nd Lien Notes
  • Exchanged $27 million of senior unsecured notes and $13.8 million in face value of preferred stock for common stock in April 2016
  • Increased production by 7% compared to 4Q15 to 200.0 MMcfe/d
  • Reduced cash G&A/Mcfe to $0.33/Mcfe, a 12% decrease over 1Q15

STATE COLLEGE, Pa., May 10, 2016 (GLOBE NEWSWIRE) -- Rex Energy Corporation (Nasdaq:REXX) announced its first quarter 2016 operational and financial results.

First Quarter Financial Results

Operating revenues from continuing operations for the three months ended March 31, 2016 were $30.5 million, which represents a decrease of 44% as compared to the same period in 2015. Commodity revenues, including settlements from derivatives, were $43.5 million, a decrease of 33% as compared to the same period in 2015. Commodity revenues from oil and natural gas liquids (NGLs), including settlements from derivatives, represented 46% of total commodity revenues for the three months ended March 31, 2016.

Lease operating expense (LOE) from continuing operations was $30.1 million, or $1.66 per Mcfe for the quarter, which was in line with the same period in 2015. Cash general and administrative (G&A) expenses from continuing operations, a non-GAAP measure, were $6.1 million, or $0.33 per Mcfe for the first quarter of 2016, a 12% decrease on a per unit basis as compared to the same period in 2015. Cash G&A expenses during the first quarter of 2016 included approximately $1.5 million in fees incurred related to the joint development agreement with Benefit Street Partners, LLC.

Net loss attributable to common shareholders for the three months ended March 31, 2016 was $62.2 million, or $1.11 per basic share. Adjusted net loss, a non-GAAP measure, for the three months ended March 31, 2016 was $15.4 million, or $0.27 per share.

EBITDAX from continuing operations, a non-GAAP measure, was $6.9 million for the first quarter of 2016.

Reconciliations of adjusted net income to GAAP net income, EBITDAX to GAAP net income and G&A to cash G&A for the three months ended March 31, 2016, as well as a discussion of the uses of each measure, are presented in the appendix of this release.

Production Results and Price Realizations

First quarter 2016 production volumes were approximately 200.0 MMcfe/d, an increase of 2% over the first quarter of 2015, consisting of 124.2 MMcf/d of natural gas and 12.6 Mboe/d of oil, condensate and NGLs (including 4.8 Mboe/d of ethane). Oil, condensate and NGLs (including ethane) accounted for 38% of net production during the first quarter of 2016.

Including the effects of cash-settled derivatives, realized prices for the three months ended March 31, 2016 were $36.78 per barrel for oil and condensate, $2.10 per Mcf for natural gas, $18.24 per barrel for NGLs (C3+) and $6.37 per barrel for ethane. Before the effects of hedging, realized prices for the three months ended March 31, 2016 were $28.71 per barrel for oil and condensate, $1.37 per Mcf for natural gas, $12.20 per barrel for NGLs (C3+) and $6.04 per barrel for ethane.

First Quarter 2016 Capital Investments

For the first quarter of 2016, operational capital investments were approximately $30.6 million, which were offset by $31.8 million in joint venture reimbursements. Approximately 97% of the capital expenditures in the first quarter of 2016 were used to fund Marcellus and Ohio Utica operations. These capital investments funded the drilling of two gross (0.7 net) wells, fracture stimulation of five gross (three net) wells, placing 16.0 gross (8.1 net) wells into sales and other projects related to drilling and completing wells in the Appalachian Basin.

First quarter investments for leasing and property acquisitions were $2.1 million and capitalized interest was $1.9 million.

Operational Update

Note: Unless specifically stated otherwise in this operational update, all numbers are gross and all well results assume full ethane recovery.

Appalachian Basin - Legacy Butler Operated Area

During the first quarter of 2016, the company completed the drilling of the two-well Geyer pad. The Geyer wells were drilled to an average lateral length of approximately 4,200 feet and are expected to be placed into sales in the third quarter of 2016.

Appalachian Basin - Moraine East

In the Moraine East Area, Rex Energy fracture stimulated four gross (two net) wells and placed 12.0 gross (six net) wells into sales in conjunction with the commissioning of the Moraine East gathering and transportation system. An additional four gross (two net) wells are expected to be placed into sales during the second quarter of 2016. The company continues to be encouraged by preliminary results in Moraine East and will provide updated sales rates following the commissioning of the high pressure line, which is expected in the second quarter of 2016.

Appalachian Basin - Warrior North Prospect - Carroll County, Ohio

In the Warrior North Prospect, the company drilled two gross (0.7 net) wells, fracture stimulated one gross (one net) well and placed four gross (two net) wells into service. As of March 31, 2016 there were five gross (1.8 net) wells drilled and awaiting completion in the area.

Rex Energy placed the three-well Kiko pad into sales during the first quarter. The Kiko wells were drilled to an average lateral length of approximately 4,900 feet and completed in an average of 33 stages with average sand concentrations of 2,460 pounds per foot. The wells produced at an average 5-day sales rate per well, assuming full ethane recovery, of 1.3 MBoe/d, consisting of 2.3 MMcf/d of natural gas, 502 bbls/d of NGLs and 369 bbls/d of condensate.

In addition, the company drilled the three-well Goebeler pad with an average lateral length of approximately 7,360 feet. The wells are currently being completed and are expected to be placed into sales during the second quarter of 2016. Following the completion of the Goebeler pad, the company will begin completion operations on the two-well Perry pad.

Second Quarter and Full Year 2016 Guidance

Rex Energy is providing its guidance for the second quarter of 2016 ($ in millions). For full year 2016, the company continues to expect production growth of 5% - 10%.

 2Q2016Full Year 2016
 Production203.0 - 207.0 MMcfe/d--
 Lease Operating Expense$29.0 - $31.0 million--
 Cash G&A$4.0 - $5.0 million--
 Operational Capital Expenditures(1)--$15.0 - $40.0 million

(1) Land acquisition expense and capitalized interest are not included in the operational capital expenditures budget

Conference Call Information

Management will host a live conference call and webcast on Wednesday, May 11, 2016 at 10:00 a.m. Eastern to review first quarter 2016 financial results and operational highlights. The telephone number to access the conference call is (866) 437-1772.

About Rex Energy Corporation

Headquartered in State College, Pennsylvania, Rex Energy is an independent oil and gas exploration and production company operating in the Appalachian and Illinois Basins. The company's strategy is to pursue its higher potential exploration drilling prospects while acquiring oil and natural gas properties complementary to its portfolio.

Forward-Looking Statements

Except for historical information, statements made in this release, including those relating to the timing and nature of development plans; drilling and completion schedules; anticipated fracture stimulation activities; expected dates for placement of wells into sales; and our financial guidance for second quarter and full year 2016 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 may contain words such as "expected", "expects", "scheduled", "planned", "plans", "anticipates" or similar words, and are based on management's experience and perception of historical trends, current conditions, and anticipated future developments, as well as other factors believed to be appropriate. We believe these statements and the assumptions and estimates contained in this release are reasonable based on information that is currently available to us. However, management's assumptions and the company's future performance are subject to a wide range of business risks and uncertainties, both known and unknown, and we cannot assure that the company can or will meet the goals, expectations, and projections included in this release. Any number of factors could cause our actual results to be materially different from those expressed or implied in our forward looking statements, including (without limitation):

  • economic conditions in the United States and globally;
  • domestic and global demand for oil, NGLs and natural gas;
  • volatility in oil, NGL, and natural gas pricing;
  • new or changing government regulations, including those relating to environmental matters, permitting, or other aspects of our operations;
  • the geologic quality of the company's properties with regard to, among other things, the existence of hydrocarbons in economic quantities;
  • uncertainties inherent in the estimates of our oil and natural gas reserves;
  • our ability to increase oil and natural gas production and income through exploration and development;
  • drilling and operating risks;
  • the success of our drilling techniques in both conventional and unconventional reservoirs;
  • the success of the secondary and tertiary recovery methods we utilize or plan to employ in the future;
  • the number of potential well locations to be drilled, the cost to drill them, and the time frame within which they will be drilled;
  • the ability of contractors to timely and adequately perform their drilling, construction, well stimulation, completion and production services;
  • the availability of equipment, such as drilling rigs, and infrastructure, such as transportation, pipelines, processing and midstream services;
  • the effects of adverse weather or other natural disasters on our operations;
  • competition in the oil and gas industry in general, and specifically in our areas of operations;
  • changes in our drilling plans and related budgets;
  • the success of prospect development and property acquisition;
  • the success of our business and financial strategies, and hedging strategies;
  • conditions in the domestic and global capital and credit markets and their effect on us;
  • the adequacy and availability of capital resources, credit, and liquidity including, but not limited to, access to additional borrowing capacity; and
  • uncertainties related to the legal and regulatory environment for our industry, and our own legal proceedings and their outcome.

We undertake no obligation to publicly update or revise any forward-looking statements. Further information on the company's risks and uncertainties is available in our filings with the Securities and Exchange Commission and we strongly encourage investors to review those filings.


REX ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
($ in Thousands, Except Share and Per Share Data)
 
ASSETS
March 31, 2016
(Unaudited)
 December 31, 2015
Current Assets   
Cash and Cash Equivalents$ 24,891  $1,091 
Accounts Receivable 24,315    19,483 
Taxes Receivable 18   18 
Short-Term Derivative Instruments 29,012   34,260 
Inventory, Prepaid Expenses and Other 3,168   3,829 
Total Current Assets 81,404   58,681 
Property and Equipment (Successful Efforts Method)   
Evaluated Oil and Gas Properties 1,301,479   1,239,430 
Unevaluated Oil and Gas Properties 257,697   262,992 
Other Property and Equipment 41,028   40,112 
Wells and Facilities in Progress 75,514   144,556 
Pipelines  16,780   14,024 
Total Property and Equipment 1,692,498   1,701,114 
Less: Accumulated Depreciation, Depletion and Amortization (720,998)  (699,899)
Net Property and Equipment 971,500   1,001,215 
Other Assets 2,489   2,501 
Long-Term Derivative Instruments 8,460   9,534 
Total Assets$1,063,853   $1,071,931 
LIABILITIES AND EQUITY   
Current Liabilities   
Accounts Payable$42,818  $37,874 
Current Maturities of Long-Term Debt 9,934   590 
Accrued Liabilities 44,296   44,326 
Short-Term Derivative Instruments 3,758   2,486 
Total Current Liabilities 100,806   85,276 
Long-Term Derivative Instruments 6,908   5,556 
Senior Secured Line of Credit and Long-Term Debt, Net of Issuance Costs 143,294   109,396 
Senior Notes, Net of Issuance Costs 657,511   663,089 
Premium on Senior Notes, Net 2,245   2,344 
Other Deposits and Liabilities 3,140   3,156 
Future Abandonment Cost 43,412   42,883 
Total Liabilities$957,316  $911,700 
    
Stockholder Equity   
Preferred Stock, $.001 par value per share, 100,000 shares authorized and 12,836 issued and outstanding on March 31, 2015 and 16,100 shares issued and outstanding on December 31, 2015$1  $1 
Common Stock, $.001 par value per share, 100,000,000 shares authorized and 66,041,227 shares issued and outstanding on March 31, 2016 and 55,741,229 shares issued and outstanding on December 31, 2015 63   54 
Additional Paid-In Capital 630,301   623,863 
Accumulated Deficit (523,828)  (463,687)
Total Stockholders' Equity 106,537   160,231 
Total Liabilities and Owners' Equity$1,063,853  $1,071,931 



REX ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in Thousands, Except per Share Data)
 
 For the Three Months Ended
March 31,
 2016  2015
OPERATING REVENUE   
Oil, Natural Gas and NGL Sales$ 30,494  $ 54,111 
Other Revenue 13   11 
TOTAL OPERATING REVENUE 30,507   54,122 
OPERATING EXPENSES   
Production and Lease Operating Expense 30,146   29,052 
General and Administrative Expense 6,063   9,651 
(Gain) Loss on Disposal of Assets (30)  65 
Impairment Expense 14,184   7,023 
Exploration Expense 993   518 
Depreciation, Depletion, Amortization and Accretion 19,408   26,126 
Other Operating Expense 329   5,191 
TOTAL OPERATING EXPENSES 71,093   77,626 
LOSS FROM OPERATIONS (40,586)  (23,504)
OTHER EXPENSE   
Interest Expense (13,032)  (12,017)
Gain on Derivatives, Net  4,049   17,119 
Other Income   --   34 
Debt Exchange Expense (8,480)    -- 
Loss on Equity Method Instruments   --   (203)
TOTAL OTHER INCOME (EXPENSE) (17,463)  4,933 
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX (58,049)  (18,571)
Income Tax (Expense) Benefit (2,092)  92 
NET LOSS FROM CONTINUING OPERATIONS (60,141)  (18,479)
Income From Discontinued Operations, Net of Income Taxes   --   1,962 
NET LOSS  (60,141)  (16,517)
Net Income Attributable to Noncontrolling Interests   --   1,297 
NET LOSS ATTRIBUTABLE TO REX ENERGY$ (60,141) $ (17,184)
Preferred Stock Dividends 2,105   2,415 
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS$ (62,246) $ (20,229)
Earnings per common share:   
Basic - Net Loss From Continuing Operations Attributable to Rex Energy Common Shareholders$ (1.11) $ (0.38)
Basic - Net Income From Discontinued Operations Attributable to Rex Energy Common Shareholders   --   0.01 
Basic - Net Loss Attributable to Rex Energy Common Shareholders$ (1.11) $ (0.37)
Basic - Weighted Average Shares of Common Stock Outstanding 56,003   54,370 
Diluted - Net Loss From Continuing Operations Attributable to Rex Energy Common Shareholders$ (1.11) $ (0.38)
Diluted - Net Income From Discontinued Operations Attributable to Rex Energy Common Shareholders   --   0.01 
Diluted - Net Loss Attributable to Rex Energy Common Shareholders$ (1.11) $ (0.37)
Diluted - Weighted Average Shares of Common Stock Outstanding 56,003   54,370 



REX ENERGY CORPORATION
CONSOLIDATED OPERATIONAL HIGHLIGHTS
UNAUDITED
 
 Three Months Ended
March 31,
 2016 2015
Oil, Natural Gas, NGL and Ethane sales (in thousands):   
Oil and condensate sales$6,354 $12,461
Natural gas sales15,516 28,286
Natural gas liquids sales (C3+)5,975 12,119
Ethane sales2,649 1,245
Cash-settled derivatives:     
Crude oil1,787 3,745
Natural gas8,223 5,273
Natural gas liquids (C3+) 2,956 1,540
Ethane144 22
Total oil, gas, NGL and Ethane sales including cash settled derivatives$43,604  $64,691
    
Production during the period:   
Oil and condensate (Bbls) 221,367 315,174
Natural gas (Mcf)11,304,519 11,502,917
Natural gas liquids (C3+) (Bbls)489,753 521,203
Ethane (Bbls)438,213 189,155
Total (Mcfe)118,200,517 17,656,109
    
Production - average per day:   
Oil and condensate (Bbls)2,433 3,502
Natural gas (Mcf)124,225 127,810
Natural gas liquids (C3+) (Bbls)5,382 5,791
Ethane (Bbls)4,816 2,102
Total (Mcfe)1200,006 196,179
    
Average price per unit:   
Realized crude oil price per Bbl - as reported$28.71 $39.54
Realized impact from cash settled derivatives per Bbl8.07 11.88
 Net realized price per Bbl$36.78 $51.42
    
Realized natural gas price per Mcf - as reported$1.37 $2.46
Realized impact from cash settled derivatives per Mcf0.73 0.46
 Net realized price per Mcf$2.10 $2.92
    
Realized natural gas liquids (C3+) price per Bbl - as reported$12.20 $23.25
Realized impact from cash settled derivatives per Bbl6.04 2.95
 Net realized price per Bbl$18.24 $26.20
    
Realized ethane price per Bbl - as reported$6.04 $6.58
Realized impact from cash settled derivatives per Bbl0.33 0.12
 Net realized price per Bbl$6.37 $6.70
    
LOE / Mcfe$1.66 $1.65
Cash G&A / Mcfe$0.33 $0.38
    
1 Oil and natural gas liquids are converted at the rate of one barrel of oil equivalent to six Mcfe


REX ENERGY CORPORATION
COMMODITY DERIVATIVES - HEDGE POSITION AS OF 5/5/2016
 
   2016    2017 
Oil Derivatives (Bbls)      
Swap Contracts      
Volume  60,000(1)  -- 
Price $44.00  $-- 
Collar Contracts      
Volume  329,500   -- 
Ceiling  $49.65  $-- 
Floor $38.35    $-- 
 Collar Contracts with Short Puts       
Volume  175,000   -- 
Ceiling $49.60  $-- 
Floor $41.40  $-- 
Short Put $31.20  $-- 
Natural Gas Derivatives (Mcf)      
Swap Contracts      
Volume  11,445,000(2)  6,660,000(3)
Price $2.96  $3.26 
Swaption Contracts      
Volume  700,000   -- 
Price $3.15  $-- 
Put Spreads      
Volume   7,165,000   -- 
Floor $3.26  $-- 
Short Put $2.51  $-- 
Collar Contracts      
Volume   1,750,000   1,400,000 
Ceiling $3.10  $3.10 
Floor $2.70  $2.40 
Collar Contracts with Short Puts      
Volume  6,665,000   16,900,000 
Ceiling $3.56  $3.87 
Floor $2.96  $3.01 
Short Put $2.31  $2.32 
Call Contracts      
Volume  --   13,679,900 
Ceiling $--  $4.70 
Natural Gas Liquids (Bbls)      
Swap Contracts      
Propane (C3)      
Volume  541,000   312,000 
Price $21.59  $18.04 
Butane (C4)      
Volume  133,000   108,000 
Price $27.10  $23.80 
Isobutane (IC4)      
Volume  56,000   48,000 
Price $27.93  $24.00 
Natural Gasoline (C5+)      
Volume  189,000   --  
Price $52.80  $-- 
Ethane      
Volume  295,000   240,000 
Price $8.25  $9.14 
Natural Gas Basis (Mcf)      
Swap Contracts      
Dominion Appalachia      
Volume  13,273,000   10,755,000 
Price $(0.88) $(0.79)
Texas Gas Zone 1      
Volume  --    14,600,000 
Price $--  $(0.13)
NYMEX Heating Oil (Gal)      
Swap Contracts      
Volume  7,000   -- 
Price $2.00  $-- 
(1)  Includes 60,000 Bbls of enhanced swaps
(2)  Includes 3.55 Bcf of enhanced swaps
(3)  Includes 5.70 Bcf of enhanced swaps

APPENDIX  
REX ENERGY CORPORATION
NON-GAAP MEASURES

EBITDAX

"EBITDAX" 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: interest, income taxes, DD&A, unrealized losses from financial derivatives, non-recurring gains and losses, exploration expenses and other similar non-cash charges, minus all non-cash income, including but not limited to, income from unrealized financial derivatives and gains on asset dispositions, added to net income. EBITDAX, as defined above, is used as a financial measure by our management team and by other users of its financial statements, such as our commercial bank lenders to analyze such things as:

  • Our operating performance and return on capital in comparison to those of other companies in our industry, without regard to financial or capital structure;
  • The financial performance of our assets and valuation of the entity without regard to financing methods, capital structure or historical cost basis;
  • Our ability to generate cash sufficient to pay interest costs, support our indebtedness and make cash distributions to our stockholders; and
  • The viability of acquisitions and capital expenditure projects and the overall rates of 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) (the most directly comparable GAAP financial measure) in measuring our performance, nor should it be used as an exclusive measure of cash flows, 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 our consolidated statements of cash flows.

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

We believe that EBITDAX assists our lenders and investors in comparing our performance on a consistent basis without regard to certain expenses, which can vary significantly depending upon accounting methods. Because we may borrow money to finance our operations, interest expense is a necessary element of our costs. In addition, because we use capital assets, DD&A are also necessary elements of our costs. Finally, we are required to pay federal and state taxes, which are necessary elements of our costs. Therefore, any measures that exclude these elements have material limitations.

To compensate for these limitations, we believe it is important to consider both net income determined under GAAP and EBITDAX to evaluate our performance.

For purposes of consistency with current calculations, we have revised certain amounts relating to prior period EBITDAX. The following table presents a reconciliation of our net income to EBITDAX for each of the periods presented.

 Three Months Ended
March 31,
 2016 2015 
Net Loss From Continuing Operations$(60,141) $(18,479)
Add Back Non-Recurring Costs18,480   5,022 
Add Back Depletion, Depreciation, Amortization and Accretion19,408   26,126 
Add Back (Less) Non-Cash Compensation Expense (Income)(27)  2,961 
Add Back Interest Expense13,032   12,017 
Add Back Impairment Expense14,184   7,023 
Add Back Exploration Expense993   518 
Add Back (Less) Loss (Gain) on Disposal of Assets(30)  65 
Less Gain on Financial Derivatives(4,049)  (17,119)
Add Back Cash Settlement of Derivatives12,995   11,079 
Add Back Non-Cash Portion of Equity Method Investments --   203 
Add Back (Less) Income Tax Expense (Benefit)2,092   (92)
EBITDAX From Continuing Operations$6,937  $29,324 
Net Income From Discontinued Operations$--  $1,962 
Net Income Attributable to Noncontrolling Interests --   (1,297)
Income From Discontinued Operations Attributable to Rex Energy --    665 
Add Back Depletion, Depreciation, Amortization and Accretion   39 
Add Back Interest Expense   191 
Less Gain on Disposal of Assets   (32)
Less Non-Cash Portion of Noncontrolling Interests   (79)
Add Back Income Tax Expense   435 
Add EBITDAX From Discontinued Operations$ --  $1,219 
EBITDAX (Non-GAAP)$6,937  $30,543 
    
1 Non-Recurring costs for three months ended March 31, 2016 are due to debt issuance costs related to our exchange of unsecured senior notes. Non-Recurring costs for the three months ended March 31, 2015 are due to net fees incurred to terminate two drilling rig contracts earlier than their original term

Adjusted Net Income

"Adjusted Net Income" means, for any period, the sum of net income (loss) from continuing operations before income taxes for the period plus the following expenses, charges or income, in each case, to the extent deducted from or added to net income in the period: unrealized losses from financial derivatives, non-cash compensation expense, dry hole expenses, disposals of assets, impairment and other one-time or non-recurring charges, minus all gains from unrealized financial derivatives, disposal of assets and deferred income tax benefits, added to net income. Adjusted Net Income 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. Adjusted Net Income 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 reports Adjusted Net Income 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 Adjusted Net Income as reported 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 Adjusted Net Income.

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

 Three Months Ended
March 31,
 2016  2015 
Net Loss From Continuing Operations$(58,049) $(18,571)
Gain on Derivatives, Net (4,049)  (17,119)
Cash Settlement of Derivatives 12,995    11,079 
Add Back (Less) (Gains) Losses from Financial Derivatives 8,946   (6,040)
Add Back Non-Recurring Costs1 8,480   5,022 
Add Back Impairment Expense 14,184   7,023 
Add Back Dry Hole Expense 843   1  
Add Back Non-Cash Compensation Expense (27)  2,961 
Add Back (Less) Loss (Gain) Loss on Disposal of Assets (30)  65 
Loss Before Income Taxes, adjusted$(25,653) $(9,539)
Less Income Tax Benefit, adjusted2  10,261   3,816 
Adjusted Net Loss$(15,392) $(5,723)
    
Basic - Adjusted Net Loss Per Share$(0.27) $(0.11)
Basic - Weighted Average Shares of Common Stock Outstanding 56,003   54,370 
     
1 Non-Recurring costs for the three months ended March 31, 2016 are due to debt issuance costs related to our exchange of unsecured senior notes. Non-Recurring costs for the three months ended March 31, 2015 are due to net fees incurred to terminate two drilling rig contracts earlier than their original term
2 Assumes an effective tax rate of 40%

Cash General and Administrative Expenses

Cash General and Administrative Expenses (Cash G&A) is the difference between GAAP G&A and non-Cash G&A, which is primarily comprised of non-cash compensation expense. Rex Energy has reported Cash G&A because it believes that this measure is commonly reported and widely used by management and investors as an indicator of overhead efficiency without regard to non-cash expenditures, such as stock compensation. Cash G&A is not a calculation based on GAAP financial measures and should not be considered as an alternative to GAAP G&A in measuring the company's performance. You should carefully consider the specific items included in the company's computation of this measure. You are cautioned that Cash G&A as reported 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 Cash G&A and GAAP G&A. The following table presents a reconciliation of Rex Energy's GAAP G&A to its Cash G&A for each of the periods presented (in thousands):

 Three Months Ended
March 31,
 2016   2015 
GAAP G&A$6,063 $9,651 
Non-Cash Compensation Expense                                            27  (2,961)
Cash G&A$6,090 $6,690 

 

For more information contact:



Investor Relations

(814) 278-7130

InvestorRelations@rexenergycorp.com

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Source: Rex Energy Corporation

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