Rex Energy shares fall after posting 4Q loss

Wed, 03/03/2010 - 10:30am
The Associated Press

Shares of Rex Energy Corp. fell on Wednesday after its fourth-quarter loss came in larger than analysts had been expecting as oil and gas prices fell.

The company's shares were down 89 cents, or 6 percent, to $13.65 in afternoon trading.

The company said late Tuesday that it lost almost $4.6 million, or 12 cents per share, during the quarter that ended Dec. 31. During the same period a year earlier it lost $40.3 million, or $1.10 per share, which included a loss of 21 cents per share from discontinued operations.

Revenue rose 15 percent to $15.3 million, from $13.3 million a year earlier.

Rex said its adjusted loss was $2.6 million, which works out to a loss of 7 cents per share. Analysts surveyed by Thomson Reuters had been expecting a loss of 2 cents per share on revenue of $15.6 million.

KeyBanc Capital Markets analyst Jack N. Aydin affirmed his "Buy" rating on the stock and price target of $18 per share. He wrote in a note on Wednesday that Rex's bigger-than-expected loss was due in part to higher administrative expenses as the company increases production. Rex went public in July 2007.

He wrote that the company has a good position in the Marcellus Shale, no debt, and $50 million in cash. "We expect (the company) to be able to significantly increase production, proved reserves and shareholder value," he wrote.


Share this Story

You may login with either your assigned username or your e-mail address.
The password field is case sensitive.