Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Very interested to see how this one ends up. GL everyone!
Franklin Resources Inc Just Purchased Rex Energy
20.3% or 19,369,696 shares of the Energy–company.
http://presstelegraph.com/2016/08/10/learn-why-franklin-resources-inc-just-purchased-rex-energy-corp-stake/
Them institutional shorts are powerful.
Whats your time frame projection?
They never stopped exploring and drilling new wells. They have had contracts with other companies already whom have been co sponsoring wells for %'s on Rexx land.
Don't companies go public so they can raise capital for operations by issuing shares, bonds, commercial paper and so forth?? I am confused. Lets not compare an actual respectable company to an OTC shell share selling scam rinse repeat operator.
Do you feel that the sp needs to reach a certain point for the shorts to begin covering or do you feel that they will start shortly in anticipation of the inevitable ascending price due to the factors that you illustrated?
why should the squeeze about to start now and not before? What factors will aggregate them to cover now/soon in your opinion?
On our way to NG @ 3! after we break psychological resistence at 2.7 and resistance at 2.676.
Ethane, LPG to trump naphtha as preferred ethylene feedstocks
http://www.hydrocarbonprocessing.com/Article/3257517/Ethane-LPG-to-trump-naphtha-as-preferred-ethylene-feedstocks.html
INEOS Europe AG and Rex Energy Announce a New Agreement for the Purchase of Natural Gas Liquids from the Appalachian Basin for Offtake to Europe
http://finance.yahoo.com/news/ineos-europe-ag-rex-energy-113000077.html
NOAA 2016 summer outlook, expected above average temps across the US
https://www.climate.gov/news-features/featured-images/noaa-2016-summer-outlook-where-are-highest-chances-hot-summer-us
Rexx undergoing its regularly scheduled borrowing redetermination with its banks. Some bullish news soon can give us another push. I anticipate that they at least maintain their current $119 million borrowing base. Now what if we get news that the borrowing base is expanded. A CHK type pop perhaps we may have.
New REXX Presentation VIA REXX Energy website
Breakdown of recent balance sheet adjustments, IL land sale and analysis of developmental areas.
http://files.shareholder.com/downloads/REXX/1888881955x0x896571/09A34C73-3234-48A4-9A9A-B4CBB9B493D3/June_2016_Corporate_Presentation.pdf
they have a way of keeping this one down, probably wont crack 1.00
yes but the primary concern here for investors is BK concerns. With this move along with balance sheet restructuring they already did, paves the way for greater investor confidence for next 2 years.
that is primarily the reasoning for my thinking. The timing doesn't make sense since they secured their credit facility and have no interest payments for 1.5 years. Why sell right now. Why not down the road with higher NG and oil prices.
then they have "potential for additional proceeds of up to $10 million over the next three years based on commodity prices during that time frame." Personally I do not buy the liquidity reasons for the sale. I believe this transaction is a pre cursor to a bigger deal being put together. Like a Ineos and or a Sunoco buy out. But that is just my hunch.
impossible to know from our perspective. We do not know the full reasoning behind this decision.
yes patience will pay off here. Shorts should begin to cover aggressively tomorrow in hordes.
2.00 by friday, I like it. Wonder if it's too aggressive but I would like to be proven wrong. Unfortunately crude is dropping. May take away some of the mojo tomorrow.
what are your expectations from this news?
Indeed.
Rex Energy Announces Sale of Illinois Basin Asset
Rex Energy Corporation
GlobeNewswire
STATE COLLEGE, Pa., June 14, 2016 (GLOBE NEWSWIRE) -- Rex Energy Corporation (REXX) (“Rex Energy”) today announced that it entered into a purchase and sale agreement with Campbell Development Group, LLC (“Campbell”) pursuant to which Campbell will acquire the company’s Illinois Basin assets. Rex Energy is selling its entire interest in the basin and expects to receive proceeds at closing of approximately $40 million (prior to customary closing and post-closing adjustments) with the potential for additional proceeds of up to $10 million over the next three years based on commodity prices during that time frame. Included in the sale are approximately 76,000 net acres in Illinois, Indiana and Kentucky; the assets are currently producing approximately 1,700 net barrels per day. Proceeds from the sale are expected to be used to pay down the revolving line of credit and for general corporate purposes. Rex Energy is undergoing its regularly scheduled borrowing base redetermination, and, pro forma for the Illinois Basin asset transaction, currently expects to maintain its borrowing base at $190 million. The company expects the transaction to close in the third quarter of 2016, subject to customary closing conditions and required approvals.
“First and foremost, I would like to thank all of our Illinois Basin employees for their hard work and dedication throughout the years,” said Tom Stabley, Rex Energy’s President and Chief Executive Officer. “The sale of the Illinois Basin assets is another important step for Rex Energy toward improving our liquidity position and providing greater capital efficiency as we continue with the development of our core Appalachian Basin assets, in particular our Moraine East Area.”
Forward-Looking Statements
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties, such as financial market conditions, changes in commodities prices and the other risks discussed in detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 and other subsequent filings with the Securities and Exchange Commission. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. Rex Energy has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company’s expectations.
About Rex Energy Corporation
Headquartered in State College, Pennsylvania, Rex Energy is an independent oil and gas exploration and production company with its core operations in the Appalachian Basin. The company’s strategy is to pursue its higher potential exploration drilling prospects while acquiring oil and natural gas properties complementary to its portfolio.
http://finance.yahoo.com/news/rex-energy-announces-sale-illinois-200100847.html
Anyone living in CA visit company offices? Doesn't look like a successful company doing business with Boeing is operating out of that building.
It will be interesting to see how quickly 2 is reached.
Why The Bounce In Natural Gas Could Just Be Getting Started
Bryan Rich
CONTRIBUTOR
Opinions expressed by Forbes Contributors are their own.
On Tuesday we talked about the quiet bull market in commodities. Today we want to talk about one specific commodity that has been lagging the sharp rebound in oil, but is starting to make a big-time move. It’s natural gas. This is an area with some beaten up stocks that have the potential for huge bounce backs.
Natural gas today was up almost 6% to a six-month high. The U.S. Energy Information Administration said in its weekly report that natural gas storage rose less than what analysts had forecast. But that was just an extra kick for a market that has been moving aggressively higher in the past NINE days–up 37%.
Now, we should note, nat gas is a market that has some incredible swings. Over the past three years it has traded as high as $6.50 and as low as $1.64.
For perspective on the wild swings, take a look at this long-term chart:
1aa nat gas
ADVERTISING
Source: Forbes Billionaire’s Portfolio
You can see we’re coming off of a very low base. And the moves in this commodity can be dramatic.
Three months ago natural gas was continuing to slide, even as oil was staging a big bounce. But natural gas has now bounced 58% after sniffing around near the all-time lows. Meanwhile, oil has doubled.
Recommended by Forbes
What Will Stocks Do If The Fed Hikes?
Meet The Bull Market In Commodities
CBREVoice: Navigating Volatile Markets: What Investors Need To Know In 2016
Second Half For Stocks Could Be Very Good
Second Chance On The Bill Gross 'Short Of A Lifetime'
MOST POPULAR Photos: The Richest Person In Every State
iPhone 7 Design 'Confirmed' In Double Leak
MOST POPULAR Photos: 32 Best Father's Day Gifts From Shark Tank
MOST POPULAR Brock Lesnar's UFC 200 Return Should Lead To One Last WWE Championship Rei...
Based on the backdrop for oil, broader commodities and the economy we’ve been discussing, and acknowledging the history of natural gas prices, we could be looking at the early stages of a big run in nat gas prices.
Summer is one of the most volatile periods for natural gas with the combination of heat waves, hurricanes and potential weather pattern shifts such as La Nina. During the summer months, a 50% move in the price of natural gas is not uncommon. Another 50% rise by the end of the summer would put it around $4. And four bucks is near the midpoint of the $6.50-$1.65 range of the past three years.
Billionaire investor David Einhorn has also perked up to the bull scenario in nat gas. In his most recent investor letter his big macro trade this year is long natural gas. Here’s what he had to say: “Natural gas prices are not high enough to justify drilling in all but the very best locations. The industry has responded by dramatically reducing drilling activity. As existing wells deplete, supplies should fall. The high cost of liquefying and transporting natural gas limits competition to North American sources. Current inventories are high following a period of over-drilling and a record warm winter. However, the excess inventory is only a couple percent of annual production, which has already begun to decline. Normal weather combined with lower production could lead to a shortage within a year.”
This all contributes to the bullish action we’re seeing across commodities, led by the bounceback in oil. The surviving companies of the energy price bust have been staging big comebacks, but could have a lot further to go on a run up in nat gas prices.
In our Forbes Billionaire’s Portfolio we have 15% of our portfolio, or 3 positions, invested in energy (including natural gas) that all have the potential to double based on publicly stated price targets by the billionaire investor or hedge fund manager we followed. One of the positions is an exchange-traded fund, which we have dubbed ‘the trade of the year,’ as it could double in less than a year and it has 100% exposure to oil and natural gas.
Join us today and get our full recommendation on this ETF, and get your portfolio in line with our Forbes Billionaire’s Portfolio.
http://www.forbes.com/sites/bryanrich/2016/06/09/natural-gas-pop-could-fuel-big-moves-in-energy-companies/#76502b41bb29
Rex Energy Co. (NASDAQ:REXX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Friday.
http://www.americanbankingnews.com/2016/05/20/rex-energy-co-rexx-upgraded-to-buy-by-zacks-investment-research/
I see REXX going to $2 + in the next 1-2 months. 10+ in 1.5-2 years Why????????????
1. Price of NG will increase. NG is the future towards a smaller carbon footprint. All over the globe coal powered plants will and are switching over to NG powered. Either fully and or partial and that partial will convert over time to fully NG operations.
http://www.reuters.com/article/us-usa-natgas-coal-idUSKCN0UY2LT
2. Ethane. The world is switching to Ethane over the heavier oil derived Naphtha. Petrochemical manufacturers are making the switch. Older article but relevent.
http://www.hydrocarbonprocessing.com/Article/3257517/Ethane-LPG-to-trump-naphtha-as-preferred-ethylene-feedstocks.html
3. Ineos has invested 2 billion into building 8 high tech cutting edge Dragon class ships to move ethane, butane and propane to it's facilities in Europe. This is just the start. LNG shipping from the states to the rest of the world.
Thats what it was. Index change. ETF had to drop Rexx shares from their portfolio. You best bet hedge funds and MM's used the situation to help themselves.
Ingevity Corp. (NYSE:NGVT) will replace Rex Energy Corp. (REXX) in the S&P SmallCap 600 after the close of trading on Monday, May 16. S&P 500 constituent WestRock Co. (WRK) is spinning off Ingevity in a transaction expected to be completed on Friday, May 13. Post spin-off, West Rock will remain in the S&P 500. Rex Energy is ranked near the bottom of the S&P SmallCap 600 and is no longer appropriate for that index.
https://finance.yahoo.com/news/customers-bancorp-ingevity-set-join-230000754.html
ETF dump, adjusting their portfolio to more accurately mirror index. Was to be expected.
Shares exchanged april 22nd, why would dilution still be taking place? Perhaps dilution from index change, ETF's adjusting their portfolios?
5,221,909 shares
http://ir.rexenergycorp.com/secfiling.cfm?filingID=1193125-16-552074&CIK=1397516
1,924,618
http://ir.rexenergycorp.com/secfiling.cfm?filingID=1193125-16-544043&CIK=1397516
Indexes shift companies around all the time. A de-list would be bad news. Not a index shuffle.
Nah, REXX isn't an oil play. Very small oil percentage out of their portfolio. Hasn't moved on the account of oil moving recently. Why would it start now? Perhaps once NG and ethane prices move up
Will the ER report on the Ineos deal figures or is the ER not the place for those details?
Good one. :D
IDK hard to tell. May need a little more volume. Home stretch imo.
Ya around 11 million. Split that to be conservative and it seems like we need about 4 million in volume more to clear the dilution out. Seems about right?
Shares exchanged
5,221,909 shares
http://ir.rexenergycorp.com/secfiling.cfm?filingID=1193125-16-552074&CIK=1397516
1,924,618
http://ir.rexenergycorp.com/secfiling.cfm?filingID=1193125-16-544043&CIK=1397516
What is the dilution time estimation?
Yes, will do. Options are definitely interesting.