The recent pullback of Rex Energy (NASDAQ:REXX) are overdone after it reported a Q3 miss. Appalachian differentials were a little crazy, but expectations are Marcellus/Devonian economics will improve over the next two quarters. Rex hit production estimates, and has several catalysts in Q4. Rex, like many of the stocks I like, has excellent acreage. Location of acreage is very important as it can drastically change IRRs. The table below provides IRR data for a number of US plays. Keep in mind, the Marcellus and Utica numbers do not figure ethane rejection.
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