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Executives

Benjamin Hulburt - President and Chief Executive Officer

Thomas Stabley - Executive Vice President and Chief Financial Officer

Analysts

Leo Mariani - RBC Capital Markets

Ron Mills - Johnson Rice

Tom Covington - Broadpoint Capital

Jeff Hayden - Pritchard Capital

Jack Aydin - Keybanc Capital Markets

Rex Energy Corporation (REXX) Q1 2008 Earnings Call May 9, 2008 10:30 AM ET

Operator

Good morning, and welcome to Rex Energy Corporation First Quarter 2008 Financial Results Conference Call. My name is Karen and I will be your coordinator for today. At this time, all participants are in listen-only mode. Statements contained in this conference call that are not historical facts are forward-looking statements. Such statements are subject to risk and uncertainties, which could cause actual results to differ materially from those in forward-looking statements. We will conduct a question-and-answer towards the end of this conference. As a reminder, this conference is being recorded for replay purposes.

Now I would like to turn the call over to Mr. Benjamin Hulburt, President and CEO of Rex Energy Corporation. Please proceed.

Benjamin Hulburt - President and Chief Executive Officer

Thank you. I would like to welcome everyone to Rex Energy's first quarter 2008 financial results and operational update conference call. I am here today with Tom Stabley, our Chief Financial Officer. Right now you all should have received the first quarter earnings press release, and we hope that you take the time to read through it as it does contain important information. Following the live call, an archive of the audio will be available on Rex's Investor Relations website at www.rexenergycorp.com.

Before I turn the call over to Tom to cover the financial results, I would like to comment on some of our accomplishments for the first quarter of 2008.

This quarter was very solid quarter for us. A few of the highlights for the quarter include our revenues for the first quarter grew to $18.4 million, representing a 40.3% increase over the same period last year. Our production volumes in the first quarter increased to 257,000 BOEs, which is a 3.3% increase over the same period last year. Our EBITDAX in the first quarter grew to $8.7 million, which represented an increase of 67.1% over the same period in 2007.

Our cash flows from operations for the three months ended March 31, 2008 grew approximately 307% from the same period in 2007 to $9.2 million. First quarter earnings per share comparable with analysts' estimates, a non-GAAP measure, which adjust earnings for unrealized gains or losses from derivatives, deferred tax benefits, exploration and impairment expenses, non-cash compensation expenses, loss or gain on sale of assets of minority interest was $0.09 per share.

During the first quarter, our production was adversely affected due to record levels of flooding in certain areas of the Illinois Basin. As a result, our net oil production was approximately 7,000 barrels of oil lower than we would have anticipated during the first quarter. Additionally, we anticipate production in the second quarter to be adversely affected by approximately 3,000 barrels. I am pleased to report, however, that as of May 1, all field within the Illinois Basin that were affected by the flood had been returned to normal production.

I would like to stress that the flooding of the Wabash and Ohio Rivers in the Illinois Basin in the area did not affect our Lawrence Field or the ASP pilots in that field. Concerning our Lawrence Field ASP pilot, we were very pleased to report that we began injection operations on our two pilot tests as planned on May1. Through the first several days of operations, I'm very pleased to report that the process is continuing as planned and we continue to expect initial production responses approximately three to four months from now.

As previously reported, we drilled two vertical test wells in certain areas of our acreage in Pennsylvania to the Marcellus Shale, which both encountered approximately 75 feet of Marcellus Shale as expected. The first well was fracture stimulated during April with very encouraging initial results and was recently put into production. We are continuing to test that well and evaluate what ultimate production levels will be, but remain very encouraged with what we have seen so far in the short period of time since we frac that well. The second well is expected to be fracture stimulated during the second quarter.

We plan to continue to drill vertical test wells in each of our main prospect areas by the end of the year and we will be taking course in each of those locations. We are also continuing to pair to drill horizontally in these areas as part of our 2009 program. As of May 8, 2008, we controlled approximately 82,000 gross acres or 48,000 net acres in Pennsylvania where we believe the Marcellus Shale to be prospective. Our leasing efforts are ongoing in these areas and I remain confident that we will reach our leasing goal in 2008, which as previously announced was to expand our Marcellus Shale prospective acreage to between 60,000 and 80,000 net acres by the end of the year.

Capital expenditures for drilling and development in the first quarter 2008 were approximately $15.2 million, which funded the drilling or recompletion of 20 gross or 18 net wells and related improvements to infrastructure. Of the wells drilled or recompleted, 14 were completed and are producing and six wells are expected to be productive, but are awaiting completion. Additionally, $3.2 million was spent on acquisitions, leasing, leasehold improvements, and technology equipment during the first quarter of 2008.

On March 17, 2008 our Board of Directors approved an increase in our 2008 capital budget to $139 million. The increase was the result of the increased anticipated capital expenditures in our Marcellus Shale leasing activities as well as an increase in anticipated drilling activities in the Marcellus Shale.

We are very excited that we are able to add three highly qualified and experienced individuals to our technical team, Mr. David Pratt, Mr. Sean Brake and Mr. Jim Watson. Mr. Pratt was recently named Vice President and Exploration Manager for the company. David has over 30 years of geology experience including over nine years of experience in the Appalachian Basin with Cabot Oil and Gas.

Mr. Sean Brake was recently named Appalachian region Completions Manager for the company. Sean joined Rex Energy bringing over 15 years of completions experience in the energy industry, most recently in the Appalachian Basin with Halliburton.

Lastly, Mr. James Watson was recently named Vice President and Drilling Manager Appalachian region for the company. Jim has over 18 years of experience in the drilling of oil and natural gas wells in the Appalachian Basin region. He comes to us after his departure from Range Resource, where he was primarily responsible for the company's Marcellus Shale drilling activities in Pennsylvania. All three gentlemen bring an extensive amount of experience and technical skills in managing various exploration and production operations throughout the United States and particularly the Appalachian region and we are very excited to have all three of them on our team.

Before I turn the call over to Tom to discuss this quarter's results, I'd like to mention that on April 14, 2008, our bank syndicate on our senior line of credit increased our borrowing base from $75 million to $90 million. We are pleased with this increase in borrowing capacity and appreciate this vote of confidence from our banking syndicate.

Lastly on May 5, 2008, the completed an offering of 5,775,000 shares of common stock, which included shares sold pursuant to an over-allotment option granted to the underwriters at a price of $20.75. The offering resulted in net proceeds to the company of approximately $112 million after underwriters' discounts. We are very pleased with the results of this offering, which will enable us to continue to aggressively expand our Marcellus Shale holdings, continue our Marcellus Shale drilling activities and continue to develop our Lawrence Field ASP project, all while maintaining a conservative balance sheet. In fact, as of May 6, we have completely paid down our senior line of credit, leaving the company with zero long term debt.

With that, I'd like to turn the company over to Tom Stabley, our CFO.

Thomas Stabley - Executive Vice President and Chief Financial Officer

Thanks Ben. Good morning everyone. At this time, I would like to discuss the first quarter results for 2008. Production for the first quarter 2008 grew 3.3% over the same period in 2007 to approximately 2570,000 BOEs from 249,000 BOEs. Our production for the first quarter averaged approximately 2,828 BOEs per day, of which 73.2% was attributable to the Illinois Basin, 15.8% to the Appalachian Basin, and 11% to the Southwestern region.

Revenues for the first quarter of 2008 increased 40.3% to $18.4 million compared to $13.1 million for the same period in 2007. The increase was primarily due to higher production with higher average sales prices per BOE, partially offset by increased realized losses on derivative activities. Realized losses on derivative activities increased by 3.5 million from a gain of approximately 265,000 in the first quarter of 2007.

For the first quarter 2008, the average realized oil price before the effect of hedging was $93.09 per barrel, an increase of 72.5 when compared to the same period last year. The average realized natural gas before the effect of hedging was $8.50 per Mcf compared to the average realized natural gas before the effect of hedging of $6.63 per Mcf in the first quarter of 2007. Our derivative activities effectively decreased net realized prices by $12.75 per BOE in the first quarter of 2008 and increased net realized prices $1.06 per BOE in the first quarter of 2007.

Total operating expenses for the first quarter were $17.1 million, which represented an increase of approximately 44.3 million over the same period of 2007. the increase in operating expenses was due in part to the increased depreciation, depletion and amortization and accretion expenses resulting from a step-up in the book basis of assets caused by the reorganization transactions that were related to the initial public offering in July 2007, an increased asset base and increased production. The increase can also be partially attributable to an increase in general and administrative, G&A expenses, which was primarily due to higher employee headcount and other administrative costs associated with being a publicly traded company.

Production and lease operating expenses were 6.7 million in the first quarter of 2008, up from 6.1 million in the same period in 2007. These expenses typically increase as we add new wells to our portfolio of production properties. Also contributing to the increase in expenses were higher production taxes, which can be directly attributable to our increase in production and revenues.

For the first quarter of 2008, LOEs per BOE excluding production taxes were 24.87, an increase of approximately $1 when compared to the same period in 2007. These expenses typically increase on a per barrel basis as we add new wells particularly in our Illinois Basin, where lifting cost tend to be higher due to the secondary recovery method that is employed to extract oil from the reservoir.

General and administration expenses, including non-cash compensation expenses of 368,000 for the first quarter of 2008 were 3.5 million, representing an increase of approximately 1.5 million compared to the first quarter of 2007. G&A expenses as a percentage of revenues increased to approximately 19% compared to 15% for the three months ended March 31, 2007.

The increase in G&A expenses is primarily due to increased cost associated with being a publicly traded company including higher audit fees, director fees, public filing fees, consulting fees related to Sarbanes-Oxley compliant and additional staffing needs. The employee headcount has also increased in a few locations relation to the company's growth and in association with the Lawrence Field ASP project in the Illinois Basin and additionally the Marcellus Shale project in the Appalachian Basin.

Exploration expenses were 1.4 million for the first quarter 2008 compared to approximately 585,000 for the same period in 2007. Exploration expenses increased as compared to the prior year due to the plugging and abandonment of one exploratory well that was drilled in Permian Basin that was deemed to be a dry hole.

Depreciation, depletion, amortization, and accretion expenses were 5.5 million in the first quarter of 2008, up from 4.1 million in the first quarter of 2007. The increase in DD&A expense for the first quarter ended March 31, compared to the same quarter was primarily due to a step up in the book basis of assets caused by the reorganization transaction and increased asset based and increased production.

EBITDAX a non-GAAP measures was 8.7 million for the first quarter of 2008. This represented an increase of 67.1% for the first quarter of 2007. Cash flows from operations for the first quarter of 2008 grew 307% from the same period in 2007 to $9.2 million.

The company reported a loss before minority interest and provisions for taxes of $12 million in the first quarter of 2008 compared with a net loss before minority interest and provisions for taxes of 5 million in the first quarter of 2007. All the minority interests were acquired as part of the company's initial public offering and reorganization which closed on July 30 of 2007.

Net income comparable to analyst estimates was $2.8 million or $0.09 per fully diluted share in the first quarter of 2008, an increase of 3.9 million over the first quarter of 2007. Net income comparable to analyst estimates as a non-GAAP financial measure of net income, which excludes deferred tax benefits, exploration and impairment expenses, gain or losses on the sale of assets, unrealized gains or losses from financial derivatives and non-cash compensation expenses. We encourage you to review the table contained in the release, which reconciles this measures with net income.

Lastly, we continue to maintain a conservative balance sheet during the first quarter of 2008. Cash on hand was approximately 2.6 million at March 31, 2008. We had approximately 38 million drawn on our line of credit with approximately 37 million of additional debt capital available to us at March 31, 2008.

As Ben mentioned, with the proceeds of our recent offering completed on May 5, we currently have no debt drawn on our line of credit, which has an available borrowing base of approximately $90 million. Additionally, we currently have approximately 64 million in cash and cash equivalents.

With that, I would like to turn the call back over to Ben.

Benjamin Hulburt - President and Chief Executive Officer

Thanks, Tom. With that we would like to open the call up for questions. Operator.

Question-and-Answer Session

Operator

(Operator Instructions). And the first question comes from the line of Leo Mariani from RBC Capital Markets. Please proceed.

Leo Mariani

Yeah, good morning guys.

Benjamin Hulburt

Good morning Leo.

Thomas Stabley

Good morning Leo.

Leo Mariani

Hey, I thought you mentioned that you are pretty happy with your initial result there on your first Marcellus Shale well, I was hoping if you guys can elaborate on that at all and you indicate what test rate was from the well and then kind of how that well is producing?

Benjamin Hulburt

Leo, at this point, we are very encouraged with what we have seen. We frac the well a couple of weeks ago, and it did kick back about 50% of that frac fluid in less than three days, which was our first sign of very encouraging results, and we do have some limited flow test data. However, we are not putting that out at this point, until we get a more extended period of production from the well. We put the well into sales lines last week and are continuing to evaluate that production. But I guess, at this point with that very limited data, we are hesitant to put out concrete numbers, but what we are seeing we are very happy with it.

Leo Mariani

Got you, okay. And you expect to have that second well frac, it sounds like in the very near future and then have that basically in the same line and turn that to sales as well?

Benjamin Hulburt

Yeah. At this point I would anticipate doing that frac on the second well during the month of June.

Leo Mariani

Okay. You mentioned horizontal drilling in 2009 as well. I guess, there in the Marcellus, is there a chance of maybe we see a horizontal well a little bit late in 2008, if the results are pleasing to you guys in the near future in this vertical program?

Benjamin Hulburt

No, I really don’t think so. Our plan calls for this year is to drill vertically and take course in those areas. We are also evaluating size I think in those areas, and really want to make sure that we have done homework and science before we spend the large amount of capital for those horizontal wells. So at this point I don’t anticipate doing horizontal well during 2008. We are looking towards 2009 to go almost exclusively horizontal.

Leo Mariani

Okay. Yeah obviously, you ramped up your lease hold position pretty aggressively in last several weeks now at 48,000 acres, what are you guys paying out there for acreage and you mentioned being pretty confident about getting to your goal of 60 to 80. What that costing you these days and where you are focusing your lease hold?

Benjamin Hulburt

Well, for competitive reason I don’t really want to put out exact acreage number, as I can tell it is getting more and more competitive everyday, which also obviously, makes it more and more expensive everyday. So that the cost have ramped up rather substantially from where we started leasing about a year ago. I do remain very confident that by the end of the year we should have approximately 60 to 80,000 acres assembled in the Marcellus Shale in the areas that we have high graded as being perspective areas. We have got some great advantages in this play. It is where we are headquartered. It is an area that we have been in for many areas and we have been leasing infrastructure in place and have been leasing for a year. So, I am very confident with the flow of acres we have come in everyday that we will meet those goals.

Leo Mariani

Got you, okay. Switching just real quick, your first quarter LOE expense on a per barrel basis was up a fair bit from the prior quarter, just curious to know if some of the issues you had with the Wabash and the Ohio Rivers overflowing contributed to that uptick in LOE and if so could you quantify that at all?

Thomas Stabley

Yeah I think, some of that -- as you know, some of the flood waters receded in February and the guys were able to get back in and start to reactivate the well and then additional rains came back again in March and forced them exit that area again. So I think some of that increase was certainly attributable to that increase in the flood waters.

Leo Mariani

Right. So, would you expect to be at more of a normalized level here in the second quarter and beyond?

Thomas Stabley

Absolutely. Yeah, there certainly will be a little bit of clean up in April as the March water is receded, but May and June should certainly get back to the previous levels.

Leo Mariani

Okay, great. Thanks a lot guys.

Benjamin Hulburt

Thanks Leo.

Operator

And the next question comes from the line of Ron Mills from Johnson Rice. Please proceed.

Ron Mills

Couple of follow-ups on the Marcellus, Ben you talked about wanting to drill vertical wells this year, how many do you plan to drill? You have already one two, how may do you expect to drill and do your silence work on?

Benjamin Hulburt

Ron, it would be probably somewhere between another single wells by the end of the year.

Ron Mills

Okay. And you talked about having infrastructure in portions of the Marcellus, how is the overall infrastructure situation look like in your areas?

Benjamin Hulburt

Well, we do have markets outlets in each of our areas. I will say as we look to new areas or even where we are drilling, it is a constant concern you know, for the current time period we can sell our gas and we have market outlets. But I do think it’s going to be a reoccurring problem across the Appalachian Basin, as this play continues to be successful. But in the near term I don’t have any concerns in the areas we are in.

Ron Mills

Okay. And then from the ASP standpoint, really once the chemical was begin injecting short of anything happening what the plan, it just sounds like you have been pleased with the way its operated, we really shouldn’t be expecting any data points until really you get closer towards the end of the third quarter and maybe even on the third quarter call, is that a correct?

Benjamin Hulburt

Yeah, that’s correct Ron.

Ron Mills

And then one for you Tom, just a follow-up on Leo's cost question. I know you have been talking about cost improvements as we move throughout the year, do you have a target LOE rate that you hoped to be at by the year end or as we head into next year?

Thomas Stabley

Yeah I think our objective, we try and be in the below 20s by the end of the year.

Ron Mills

Okay. And I will jump off and get back in line. Thanks.

Thomas Stabley

Thanks Ron.

Operator

And the next question comes from the line of Tom Covington from Broadpoint Capital. Please proceed.

Tom Covington

Thank you and good morning everybody.

Benjamin Hulburt

Goof morning Tom.

Tom Covington

Question, Ben, in terms of the six to eight vertical wells, are those located sort of in your core areas that you have already established, sort of to test them and need out, in other words, are you going focus in one area in particular?

Benjamin Hulburt

No, there will be a few of them done in each of our core areas because we are trying to get enough data in each of those core areas and take course so that we can start going horizontal in each of them next year. So there are two to three vertical wells planned in each of our identified core areas.

Tom Covington

With the result from those -- on those wells perhaps encourage you to accelerate your program at another rig or do something like that or is this more of an infrastructure issue?

Benjamin Hulburt

With the remaining time in the year and the amount of science work that we want do on the cores and seismic, it's really not of level a matter of confidence or results from the vertical wells at this point. We are very excited about those Marcellus play. The point of this year although economics on the verticals do appear to be very attractive, is to design our horizontal program in 2009 and that's what we set up our program to put us in a position to do that. The economics of the verticals at this point look great. They are going to be very attractive. So it’s great to be able to do vertical wells and actually get decent rate of return out of them, but our ultimate goal is to go horizontal in 2009.

Tom Covington

Would it be fair to say that the initial well has certainly met your expectations in terms of what you were looking for?

Benjamin Hulburt

Less than a weeks worth of data to look at, yeah, I do think it has.

Tom Covington

As you look towards next year in terms your horizontal activity, how many wells do you sort of envision being able to drill and how many rigs would you like to run as you sort of look out into the future?

Benjamin Hulburt

I don't know if we are in a position to disclose that yet. We are still in the process of completing our 2009 budget. With the recent addition of our drilling manager who has extensive experience drilling horizontal Marcellus Shale wells, that's causing us to kind of re-look what our plans might have been anyway. So, at this point, we are not in a position to put out our 2009 plan. I think towards the later end of the third quarter, we should have that 2009 capital budget complete.

Tom Covington

Okay, thank you very much gentlemen.

Operator

(Operator Instructions) And the next question comes from the line of Jeff Hayden from Pritchard Capital. Please proceed.

Jeff Hayden

Hi guys. Just wonder if you can give us a little color, it looks like you picked up about 112,000 net acres in the Marcellus relative to what was in the S1. Just wonder if you can give us a little color on kind of counties, areas that did additional acreage in?

Benjamin Hulburt

Approximately 50% of that would be in the north central part of Pennsylvania and the remainder would be in the southwestern, the counties that were in the southwestern part of the state.

Jeff Hayden

All right. I appreciate that.

Operator

And the next question comes from the line of Jack Aydin from Keybanc Capital Markets.

Hi guys.

Benjamin Hulburt

Hi Jack.

Jack Aydin

Ben, it looks like you raised your goal in terms of acreage. Is that in your number that you are looking for to add…

Benjamin Hulburt

No Jack.

Jack Aydin

Because I thought you were at -- your hope was 60,000 net, now we are looking 60 to 80, is it in your target?

Benjamin Hulburt

No, Jack. All that does is add, we have not changed our targets. I'll just try to forecast if we reach those targets plus the 30,000 acres we added at the beginning of the year where would we land. So we have not changed our targets. Our goals remained at another 30 to 50,000 acres by the end of the year. The 60 to 80, just add that 30,000 acres that we already have.

Jack Aydin

Okay.

Benjamin Hulburt

That makes sense?

Jack Aydin

No.

Jack Aydin

I thought you will get - -by the year end, I thought you were looking for to have 60,000 net acres, now it looks like you might be between 60 to 80,000 net acres. Maybe I am reading it wrong?

Benjamin Hulburt

That's absolutely correct Jack, but we originally had approximately 30,000 acres.

Jack Aydin

Right.

Benjamin Hulburt

When we set a goal of adding another 30 to 50,000, that's why at year end we anticipate being somewhere between 60 and 80,000 acres.

Jack Aydin

Okay, good. The second question now that you stopped injecting chemicals in the ASP and everything, could you shed a little color, how things are moving; anything that bothers you? Are you pleased and – I know it's premature, but I just want to get a little bit color on what you are thinking.

Benjamin Hulburt

Sure, well in the first couple of weeks or so of that plant operating, I am very very pleased with what our staff has been able to do out there. The plant is running as planned with no hiccups to-date. The engineering firm that we brought in FabTech to assist us in running that plant that actually designed the plant has been superb. We've not had any downtime yet on that plant. So, we are very very pleased the way things are operating. As you say, it is premature to discuss results yet, but operationally we're very very happy.

Jack Aydin

Did you order for 2009 to go for full scale, the 320 acres? Is the equipment and everything is in order and where we stand on that?

Benjamin Hulburt

Everything of a long lead item nature has been on order for quite some time. And at this point, delivery dates are as planned. We've gotten no anticipated delays at this time.

Jack Aydin

Okay and final question. With Mr. Watson in, doing a lot of work on Marcellus. His recommendation did you change anything that you were planning to do now you are changing?

Benjamin Hulburt

Not as of yet. And again, Jim has only been with us for a week. So that planning process is continuing. Jim is one of several, I think, fantastic guys that we have in that basin now. So, that team is continuing to evaluate what can we do in 2009. Obviously, Jim's experience adds just a ton of value to our team out there. So, no, I don't think it has caused us to drastically change our original assumptions, but it does raise my confidence level considerably in what our performance will be in that play.

Jack Aydin

Well, final question. Did he – the new acreage that you acquired and potential acquiring, do you have any inputs into it or no?

Benjamin Hulburt

Mr. Watson? No, he did not.

Jack Aydin

Okay. Thank you.

Benjamin Hulburt

Thank you, Jack.

Jack Aydin

Thanks.

Operator

And you have a followup question coming from the line of Leo Mariani from RBC. Please proceed.

Leo Mariani

Yeah, I just have followup on the ASP here. Could you give us just a little bit more color around your 2009 plan to do one of these 320 acres sort of full of floods? If all goes well at the pilot, is that supposed to kick off in sort of early '09 and the units could be one 320 or is there going to be another 320 following that at some point shortly thereafter?

Benjamin Hulburt

Leo, our preliminary plans for 2009 haven't changed. Our plan is to begin injecting in that first 320 acre unit by the end of the first quarter and then to begin injecting in the second 320 acre unit very late in the year. So, that hasn't changed at all. To do that, we'll actually start drilling the wells in the first 320 acre unit in the second half of this year, so we've not changed that at all.

Leo Mariani

Okay. Switching gears over to the New Albany Shale well quick. Any updates in terms of what you guys have done over there and curios if you've got any production in any of those wells you've drilled?

Benjamin Hulburt

There's really no update. We'll be spudding a horizontal test well there in one of the areas that we haven't tested yet in the next 30 days or so. But other than that, we haven't really had any additional activity in the New Albany Shale.

Leo Mariani

And no production of any of those wells that you guys have drilled historically?

Benjamin Hulburt

None have been connected to a sales line. There are several that are capable of flowing gas, but a few miles away from sales line. So, none of them is connected to sales yet.

Leo Mariani

Okay. And no plans to do that anytime in the future?

Benjamin Hulburt

I think at this point we are still evaluating the science and the technology, and in my opinion, the consistency of the New Albany Shale across that area and where are the better areas. So I think it's still a testing phase.

Leo Mariani

Okay, great. Thanks.

Benjamin Hulburt

Thanks Leo.

Operator

And we've no further questions, I'd like to turn the call back over to Mr. Hulburt for closing remarks.

Benjamin Hulburt

Thank you. Well actually, I'd like to announce that on Tuesday, June 10, 2008, we will be holding our first Annual Shareholder Meeting in the State College, Pennsylvania at the Toftrees Resort at 1:00 pm. If you would like more information about the shareholder meeting, contact our Investor Relations department at 814-278-7267 or by e-mail at investorrelations@rexenergycorp.com. With that, I'd like to thank everybody for participating in today's call.

Operator

This concludes the presentation for today, ladies and gentlemen. You many now disconnect. Have a wonderful weekend.

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Source: Rex Energy Corporation Q1 2008 Earnings Call Transcript
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