Rex Energy Earnings Cheat Sheet: Beats Estimates

Rex Energy Corporation (NASDAQ:REXX) reported net income above Wall Street’s expectations for the second quarter. An independent energy company, which is engaged in the acquisition, production, exploration and development of oil and gas, with properties concentrated in the Appalachian and Illinois regions.

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Rex Energy Earnings Cheat Sheet for the Second Quarter

Results: Net income for the oil and gas drilling and exploration company rose to $3.4 million (8 cents per share) vs. $877,000 (2 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year earlier quarter.

Revenue: Rose 85.8% to $29.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: REXX reported adjusted net income of 9 cents per share. By that measure, the company beat the mean estimate of 4 cents per share. It beat the average revenue estimate of $27.1 million.

Quoting Management: “While we continue to be very encouraged by the ASP pilot performance to-date, it is still premature to estimate the eventual pore volume oil recovery of the pilot, or translate the preliminary response into tertiary recovery proved reserves. We should be in a position to comment more definitely on the proved reserve booking impact of this project during our third quarter earnings release call in November,” said Pat McKinney, Rex Energy’s Executive Vice President and Chief Operating Officer.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 43.6%, with the biggest boost coming in the most recent quarter when revenue rose 85.8% from the year earlier quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the first quarter, it missed the mark by one cent, and in the fourth quarter of the last fiscal year, it fell short by one cent.

REXX’s profit in the latest quarter follows losses in the previous two quarters. The company reported a net loss of $7.5 million in the first quarter and a loss of $6.5 million in the fourth quarter of the last fiscal year.

Competitors to Watch: Atlas Energy, Inc. (NASDAQ:ATLS), NGAS Resources, Inc. (NASDAQ:NGAS), BreitBurn Energy Partners L.P. (NASDAQ:BBEP), Range Resources Corp. (NYSE:RRC), EV Energy Partners, L.P. (NASDAQ:EVEP), Vanguard Natural Resources, LLC (NYSE:VNR), New Concept Energy, Inc. (AMEX:GBR), Magnum Hunter Resources Corp (NYSE:MHR), Linn Energy, LLC (NASDAQ:LINE), and Approach Resources Inc. (NASDAQ:AREX).

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(Source: Xignite Financials)

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