Despite reducing operating expenses by 32.5%, lower commodity prices and lower revenue caused independent producer Rex Energy to report larger net losses for both the fourth quarter and full-year 2015.
For the final three months of the year, the State College, Pennsylvania recorded production volumes of 186.1 million cubic feet-equivalent per day (MMcfe/d), down 5% from the year-ago quarter.
For full-year 2015, production volumes actually increased, by 27% over 2014, to 195.8 MMcfe/d, Kallanish Energy reports.
Rex’s fourth-quarter net loss totaled $100.45 million, an increase from $71.66 million one year ago. The company reduced Revenue dropped by more than 50%, to $34.53 million, from $70.25 million one year ago.
The company’s impairment expense fell by roughly $50 million in the fourth quarter, to $81.1 million, from $132.58 million one year ago.
Fourth-quarter revenue fell more than 50%, to $34.53 million, from $70.25 million.
For the year, Rex lost $372.94 million, vs. a loss of $49 million for 2014. Revenue dropped 42.3%, to $171.99 million, from $297.99 million during 2014.
Full-year impairment expense jumped to $345.78 million, from $132.62 million.
Rex’s operational capital investment expenditures last year totaled $184 million, with $171 million funding operations in the Marcellus and Utica Shale plays.
In the first half of 2016, pursuant to the terms of the respective joint development agreements, the company anticipates that it will receive roughly $18.5 million from ArcLight and approximately $20.0 million from Benefit Street Partners related to reimbursements on capital investments made in 2015.
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