Rex Energy expects to begin transporting natural gas volumes from its Butler Operated Area to the Gulf Coast and Midwest beginning November 1, 2016. Under the terms of the agreements, the company will move approximately 130,000 MMBtu per day on the Lebanon West II pipeline to the Lebanon Interconnect located in Warren County, Ohio. The company will then move approximately 100,000 MMBtu per day to the Gulf Coast and 30,000 MMBtu per day into the Midwest markets. The 30,000 MMBtu per day transportation into the Midwest markets will be temporary until the company's remaining 30,000 MMBtu per day transportation to the Gulf Coast becomes available in April 2017. The commencement of this transportation allows Rex Energy to access premium markets in both the Midwest and the Gulf Coast, including future LNG export facilities. The company expects approximately 50% of its natural gas volumes will access these new markets, with the remaining natural gas volumes sold into local markets, where the company has approximately 50% of its remaining local basis transportation hedged.
