Rex Energy

Rex Energy Corporation was a United States natural gas exploration and production company headquartered in State College, Pennsylvania. Founded in March 2007, it developed an operating position in the Appalachian Basin, concentrating on unconventional oil and gas formations including the Marcellus, Utica, and Burkett shales. Its principal business was the acquisition, development, and production of hydrocarbons rather than the sale of consumer-facing energy products, so the Rex Energy name primarily represented an upstream energy enterprise and its associated assets. The company entered the public markets through an initial public offering in July 2007. During its independent life, Rex Energy used joint ventures, asset purchases, divestitures, and infrastructure transactions to build and reshape its portfolio. In 2010, it entered a $140 million joint venture with Sumitomo Corporation. It later sold interests in two cryogenic gas-processing plants for $120 million in 2012, acquired Appalachian assets from Royal Dutch Shell for $120 million in 2014, and divested its water-services subsidiary, Keystone Clearwater Solutions, to American Water Works for $130 million in 2015. These transactions reflected the capital-intensive and asset-focused structure of shale production, in which producers frequently combine drilling programs with midstream arrangements and portfolio sales. Rex Energy also reduced or repositioned parts of its upstream portfolio. In 2016, it sold Illinois Basin assets for $40 million, and in January 2017 it sold Utica Shale assets to Antero Resources for $30 million. Despite these transactions, its core activity remained concentrated in the Appalachian Basin. The company primarily relied on hydraulic fracturing to extract hydrocarbons from low-permeability shale formations. As of December 31, 2016, Rex Energy reported estimated proved reserves of 108 million barrels of oil equivalent. Natural gas represented 56.8 percent of those reserves, natural-gas liquids represented 41.5 percent, and natural-gas condensate represented 1.7 percent. Its 2016 production averaged approximately 195 million cubic feet of natural-gas equivalent per day. These figures indicate a production profile weighted heavily toward gas and associated liquids rather than conventional crude oil. Rex Energy filed for bankruptcy in May 2018. In August 2018, its assets were acquired by PennEnergy Resources, ending Rex Energy's existence as an independent operating company. The brand is therefore best understood as a defunct upstream exploration and production company whose legacy is tied to Appalachian shale development, corporate asset transactions, and the consolidation of U.S. natural-gas producers.

Rex Energy Corporation was established in March 2007 as an upstream oil and gas company. Its business was centered on finding, developing, and producing hydrocarbons from unconventional formations in the Appalachian Basin of the eastern United States. The company's principal geological targets included the Marcellus, Utica, and Burkett shales, formations that require specialized drilling and hydraulic-fracturing techniques because hydrocarbons are held in low-permeability rock. Only a few months after its formation, Rex Energy became a public company through an initial public offering in July 2007. Its subsequent growth strategy combined organic drilling with partnerships and portfolio transactions. In August 2010, Rex Energy entered a $140 million joint venture with Sumitomo Corporation. In May 2012, it sold interests in two cryogenic gas-processing plants for $120 million, illustrating the separation of upstream production from selected processing infrastructure. The company continued to modify its asset base during the expansion of Appalachian shale development. In August 2014, Rex Energy acquired assets from Royal Dutch Shell for $120 million. In June 2015, it sold Keystone Clearwater Solutions, its water-services subsidiary, to American Water Works for $130 million. The divestiture reduced its exposure to oilfield services and left the company more focused on exploration and production. In August 2016, Rex Energy sold Illinois Basin assets for $40 million, and in January 2017 it sold Utica Shale assets to Antero Resources for $30 million. Rex Energy's remaining operations were concentrated in the Appalachian Basin and relied primarily on hydraulic fracturing. At the end of 2016, its estimated proved reserves totaled 108 million barrels of oil equivalent. The reserve mix consisted mainly of natural gas and natural-gas liquids, with natural-gas condensate making up a small remainder. The company reported 2016 production of approximately 195 million cubic feet of natural-gas equivalent per day. Rex Energy filed for bankruptcy in May 2018. Its assets were acquired by PennEnergy Resources in August of that year. The transaction brought the company's independent corporate history to an end. Rex Energy is consequently a defunct regional energy company rather than an active brand, with historical significance mainly in the development and consolidation of Appalachian unconventional gas assets.

• 2018

  Bankruptcy filing

  [1]Rex Energyen.wikipedia.org

  Rex Energy filed for bankruptcy in May 2018.

• 2018

  Assets acquired by PennEnergy Resources

  [1]Rex Energyen.wikipedia.org

  PennEnergy Resources acquired Rex Energy's assets in August 2018.

• 2017

  Utica Shale assets sold

  [1]Rex Energyen.wikipedia.org

  Rex Energy sold Utica Shale assets to Antero Resources for $30 million.

• 2016

  Illinois Basin assets sold

  [1]Rex Energyen.wikipedia.org

  The company sold assets in the Illinois Basin for $40 million.

• 2015

  Keystone Clearwater Solutions sold

  [1]Rex Energyen.wikipedia.org

  Rex Energy sold its water-services subsidiary, Keystone Clearwater Solutions, to American Water Works for $130 million.

• 2014

  Shell asset acquisition

  [1]Rex Energyen.wikipedia.org

  Rex Energy acquired assets from Royal Dutch Shell for $120 million.

• 2012

  Gas-processing assets divested

  [1]Rex Energyen.wikipedia.org

  The company sold its interests in two cryogenic gas-processing plants for $120 million.

• 2010

  Sumitomo joint venture

  [1]Rex Energyen.wikipedia.org

  Rex Energy entered a $140 million joint venture with Sumitomo Corporation.

• 2007

  Company founded

  [1]Rex Energyen.wikipedia.org

  Rex Energy was founded in March 2007 as a natural gas exploration and production company.

• 2007

  Initial public offering

  [1]Rex Energyen.wikipedia.org

  The company became publicly traded through an initial public offering in July 2007.

A regional upstream exploration and production company focused on unconventional natural-gas and liquids-rich shale resources in the Appalachian Basin.

• Upstream energy production

  Natural gas

  Natural gas was Rex Energy's principal produced commodity. The company developed unconventional gas resources in the Appalachian Basin, especially within the Marcellus, Utica, and Burkett shale formations. Its production methods primarily involved horizontal drilling and hydraulic fracturing.

• Upstream energy production

  Natural-gas liquids

  Natural-gas liquids formed a substantial part of Rex Energy's proved-reserve profile. These associated hydrocarbons were produced alongside shale gas and contributed to the company's liquids-rich Appalachian resource base.

• Upstream energy production

  Natural-gas condensate

  Natural-gas condensate was a smaller component of the company's reserve base and represented liquid hydrocarbons recovered from its gas-focused Appalachian operations.

• 2018

  Bankruptcy and loss of independent operations

  Rex Energy filed for bankruptcy in May 2018, after which its assets were acquired by PennEnergy Resources in August. The proceedings ended the company's independent operating existence.

  Source

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• 2018

  Sale of assets to PennEnergy ResourcesM&A

  Background

  Following Rex Energy's bankruptcy filing, its operating assets were transferred to another Appalachian energy producer.

  Action taken

  PennEnergy Resources acquired Rex Energy's assets in August 2018.

  Aftermath

  Rex Energy ceased to operate as an independent company.

  Source

• 2014

  Acquisition of Royal Dutch Shell assetsM&A

  Background

  Rex Energy expanded its Appalachian upstream holdings through an acquisition from a major international oil company.

  Action taken

  The company acquired assets from Royal Dutch Shell for $120 million.

  Aftermath

  The purchase increased Rex Energy's Appalachian asset base before later portfolio divestitures.

  Acquisition value. $120 million (August 2014)

  Source

• 2010

  Formation of Sumitomo joint ventureM&A

  Background

  Rex Energy sought an outside partner for its energy-development activities during the expansion of unconventional gas production.

  Action taken

  The company entered a $140 million joint venture with Sumitomo Corporation.

  Aftermath

  The transaction became part of Rex Energy's partnership-based approach to developing its resource portfolio.

  Joint venture value. $140 million (August 2010)

  Source

1. 1Rex Energyen.wikipedia.org