Rex Energy Earnings Cheat Sheet: Energetic Revenues Rise 39%

Rex Energy Corporation (NASDAQ:REXX) swung to a loss in the first quarter, missing analysts’ forecast. An independent energy company, which is engaged in the acquisition, production, exploration and development of oil (NYSE:USO) and gas, with properties concentrated in the Appalachian and Illinois regions.

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Rex Energy Earnings Cheat Sheet for the First Quarter

Results: Swung to a loss of $7.5 million (17 cents/diluted share) in the quarter. The oil and gas drilling and exploration company had net income of $2 million or 5 cents per share in the year earlier quarter.

Revenue: Rose 39.8% to $23.4 million YoY.

Actual vs. Wall St. Expectations: REXX reported adjusted net loss of 3 cents per share. By this measure, the company fell short of the mean analyst estimate of net income of 2 cents/share. Estimates ranged from a loss of 6 cents per share to a profit of 6 cents per share.

Quoting Management: “As a result of our comprehensive field testing program, we feel confident that an oil bank has been forming in the reservoir,” said Pat McKinney, the company’s Executive Vice President and Chief Operating Officer. “We have not seen early breakthrough of the ASP chemicals, which gives us additional confidence that the project is behaving appropriately. Moreover, reservoir pressures have steadily increased giving us additional confidence as to the oil bank movement and conformance.”

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)

Stock Performance: Shares of REXX are trading at $12.32 as of May 3, 2011 at 5:02 PM ET, down 2.1% from yesterday’s closing price of $12.58.


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