Pritchard Capital Partners Tweaks Estimates on Rex Energy (REXX, SM)

Pritchard Capital Partners is out with a brief analysts note this morning, where it jockeys its earnings estimates on Rex Energy Corp.

; it has a $20.00 price target on the stock. The PCP analysts said, “For the second quarter of 2010, we are reducing our EPS/CFPS from $0.06/$0.21 to $0.01/$0.16 due to higher expected LOE and G&A expenses and less anticipated oil production. For full year 2010, we are raising our EPS from $0.19 to $0.28 and are lowering our CFPS estimate from $0.97 to $0.91. Our 2010 EPS estimate is increasing primarily due to less anticipated depreciation in the fourth quarter and our CFPS estimate is decreasing mainly due to higher expected LOE and G&A expenses and lower expected production. They also noted, “We are now expecting production of 0.72 MMBoe for 2010 instead of 0.75 MMBoe, primarily due to a slowdown in sequential growth in 3Q. Our 2011 EPS/CFPS estimates are changing from $0.18/$1.57 to $0.40/$1.64. Production should ramp up for REXX in the third quarter of 2010 once the liquids processing plant goes online in Butler County. The permitting process for the plant is nearing its final stages. The plant itself is already constructed. The analysts closed by saying, “We are maintaining or $20 price target that includes no value for the company's 39,100 prospective net acres for the Niobrara. REXX is expected to spud its first horizontal well in August near an SM Energy

well that reportedly came on at 1,500 bbls/d in Laramie County, WY. Learn how to find the best

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