Thomas Weisel Partners Reiterates Rex Energy Corporation (REXX) Rating
March 03, 2010 3:49 PM
Thomas Weisel Partners analysts Michael Scialla and Daniel Guffey reiterated their Overweight rating and price target of $16 for Rex Energy Corporation (Nasdaq: REXX).
A day after Rex Energy Corporation released an earnings report that failed to meet Wall Street consensus estimates, Thomas Weisel Partners reviewed the company's prospects and reiterated its existing rating.
The Thomas Weisel Partners analysts wrote that, "results to date are roughly in-line with the assumptions that underpin our NAV estimate of $23/share (based on a long-term NYMEX gas price of $6) (Figure 1). The three most recent Westmorland wells, however, do not appear to as strong as the first, the Panizzi #4H, which averaged 4.2 MMcf/d over a 30-day period. Despite this variability, we expect the stock to outperform our peer group this year if the company is able to execute on its plan to improve well productivity by extending the length of its laterals to an average between 3,000 and 4,000 ft while lowering its average well cost to $4.0mn."
