Benefit Street Partners (BSP), Rex Energy Corp.’s (Nasdaq:REXX) joint development partner in the Moraine East Area, has elected to increase its capital commitment from $51.6 million to $98.1 million to participate in the next 12 wells in the development program. BSP's total well participation in the Moraine East Area now stands at 30 wells.
With the additional capital from BSP, State College, Pennsylvania-based Rex Energy expects full year 2016 net operational capital expenditures to be approximately $35.5 million.
"The increased $45.7 million capital commitment from BSP, plus the proceeds from the recently announced Illinois Basin sale, will provide Rex Energy with over $80 million of additional liquidity in 2016," said Tom Stabley, president and CEO of Rex Energy. "The liquidity will enable Rex Energy to continue our plan to hold the majority of our Appalachian Basin acreage by production by mid-year 2017."
Seaport Global Securities analysts called the news positive. “Good to see the company continue to improve its financial health – the additional capital from its joint development partner should help the company remain active and HBP its position – while continuing to make operational strides.”