UPDATE: Pritchard Capital Partners Raises PT to $15 on Rex Energy Corporation; Keystone Midstream Sale
Pritchard Capital Partners raises its price target from $13 to $15 on Buy-rated Rex Energy (NASDAQ: REXX) following Keystone Midstream sale that yielded proceeds above expectations.
Pritchard Capital Partners comments, "REXX announced that it and its two partners, Sumitomo Corp (SSUMY, $13.81-NR) and Stonehenge Energy Resources, have sold Keystone Midstream Services to MarkWest Energy (MWE, $57.38-NR) for $512 million. REXX's net proceeds from the sale are expected to be $120 million. This is above the expected range of $90-110 million that the company had been anticipating for both the midstream assets and the Niobrara assets. The transaction is expected to close during the second quarter of 2012. As part of the deal, REXX has entered into a new gathering, processing and fractionation agreement with MWE. The new fee agreement is expected to have a very similar long term economic impact as the company's current percent of proceeds model."
REXX closed at $10.76 on Monday.
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