Rex Energy Corporation was an independent oil and natural gas exploration and production company headquartered in State College, Pennsylvania. Established in March 2007, the company focused on the acquisition, production, exploration, and development of oil, natural gas, and natural gas liquids, primarily within the Appalachian and Illinois Basins. Rex Energy aimed to build shareholder value by increasing production and proven reserves in these regions. In August 2018, the company's assets were acquired by PennEnergy Resources.
Key Strategic Focus
Rex Energy's strategy centered on:
- Production Growth: Achieving year-over-year production growth through successful leasing and drilling programs.
- Operational Efficiency: Implementing advanced technologies to enhance oil production, particularly in the Marcellus and Utica Shale formations.
- Risk Management: Maintaining a robust hedging program to mitigate commodity price volatility.
Financials and Funding
In 2016, Rex Energy reported revenues of $139 million and a net loss of $176 million. The company's assets were valued at $893 million, with equity totaling $100 million. Throughout its operational history, Rex Energy engaged in various financial activities, including joint ventures and asset sales, to support its strategic initiatives.
Pipeline Development
Rex Energy's operations were concentrated in the Appalachian Basin, focusing on the Marcellus Shale, Utica Shale, and Burkett Shale formations. The company primarily utilized hydraulic fracturing techniques to extract resources. As of December 31, 2016, Rex Energy had estimated proved reserves of 108 million barrels of oil equivalent, comprising 56.8% natural gas, 41.5% natural gas liquids, and 1.7% natural-gas condensate. In 2016, the company's production averaged 195 million cubic feet of natural gas equivalent per day.
Technological Platform and Innovation
Rex Energy employed advanced drilling and completion technologies to optimize resource extraction in complex shale formations. The company's focus on technological innovation aimed to enhance operational efficiency and maximize hydrocarbon recovery.
Leadership Team
The leadership team at Rex Energy included:
- Thomas C. Stabley: President & CEO
- I. G.: Chief Operations Officer
- B. O.: Vice President of Operations
- E. B.: President
- J. M.: Senior Vice President, General Counsel, and Corporate Secretary
- L. S.: Director of Drilling and Completions
Competitor Profile
Rex Energy operated in a competitive landscape alongside several key players in the oil and gas industry, including:
- HighPoint Resources: An exploration and production company focused on oil and natural gas assets.
- Dubai Petroleum: A commercial oil exporting company.
- Victory Oilfield Tech: Engaged in the exploration, acquisition, development, and exploitation of oil and gas properties.
- Veren: An oil-producing company.
These competitors varied in size, market focus, and technological capabilities, contributing to a dynamic and competitive market environment.
Strategic Collaborations and Partnerships
Throughout its history, Rex Energy engaged in several strategic collaborations to enhance its operational capabilities:
- August 2010: Entered into a $140 million joint venture with Sumitomo Corporation.
- May 2012: Sold interests in two cryogenic gas processing plants for $120 million.
- August 2014: Acquired assets from Royal Dutch Shell for $120 million.
- June 2015: Sold its water services subsidiary, Keystone Clearwater Solutions, to American Water Works for $130 million.
- August 2016: Sold assets in the Illinois Basin for $40 million.
- January 2017: Sold assets in the Utica Shale to Antero Resources for $30 million.
Operational Insights
Rex Energy's strategic considerations included:
- Market Positioning: Focusing on the Appalachian and Illinois Basins to leverage regional expertise and resource potential.
- Technological Differentiation: Implementing advanced drilling and completion techniques to enhance production efficiency.
- Financial Management: Utilizing asset sales and joint ventures to manage capital and support strategic initiatives.
Strategic Opportunities and Future Directions
Prior to its acquisition, Rex Energy aimed to:
- Expand Production: Increase output through continued development of existing assets.
- Enhance Reserves: Pursue acquisitions and exploration to bolster proven reserves.
- Optimize Operations: Implement cost-effective technologies to improve operational efficiency.
