Rex Energy places new wells into sales, backs 2014 production guidance

|About: Rex Energy Corporation (REXX)|By:, SA News Editor

In a Q2 operations update, Rex Energy (REXX) says it placed five additional wells into sales, and has now placed 10 of the 11 wells previously completed and awaiting processing capacity into sales, with the one remaining well expected to be placed into sales early in Q3.

Also, REXX says it began ethane sales on June 11, a slight delay from the expected start; REXX has since averaged ~1K bbl/day of ethane sales for the remainder of June.

Estimates Q2 production of ~128M cfe/day, and reaffirms full-year production guidance of 143M-149M cfe/day.

Northland Capital views the update as generally positive, with continued progress in liquids-rich natural gas development in the Appalachian Basin; the firm continues to believe REXX is a strong play in the small-cap natural gas space and views yesterday's 6% pullback as a solid entry point (