Rex Energy Corporation declared financial and operational results for the fourth quarter and full year of 2010.

Fourth Quarter Operational and Financial Results Total production during fourth quarter 2010 averaged 22.8 MMcfe per day, of which 51% was attributable to oil, 47% to natural gas and 2% to NGLs. Fourth quarter production represented a 32% increase over fourth quarter 2009, including a 102% increase in natural gas production. The increase in natural gas production was primarily attributable to gas sales through the Sarsen cryogenic gas processing plant (the Sarsen Plant) in Butler County, Pennsylvania, which was commissioned during the fourth quarter.

"We are pleased with our 61% reserve growth at year end 2010 compared to the prior year and the beginning of operations at the Sarsen gas processing plant," said Dan Churay, President and Chief Executive Officer of the company. "We look forward to increasing production to plant capacity as soon as possible and aggressively executing our development plans in 2011."

Rex Energy reported a fourth quarter 2010 net loss of approximately $6.5 million, or $0.15 per share. EBITDAX, a non-GAAP measure, was $8.1 million for fourth quarter 2010, up 82% compared to fourth quarter of 2009. The increase in EBITDAX was attributable to a higher oil price environment as well as higher natural gas production volumes. As used in this release, "EBITDAX" means income (loss) from continuing operations, before interest, income tax, depreciation, depletion, amortization, impairment and the other items that the table below outlines. EBITDAX is not a measure that United States generally accepted accounting principles (GAAP) recognizes. A full reconciliation between EBITDAX and GAAP net income (loss) from continuing operations is presented below.

Loss from continuing operations before income taxes for the fourth quarter 2010 was $10.5 million. Adjusted net loss comparable to analysts' estimates, a non-GAAP measure, was $0.7 million, or $0.02 per share. As used in this release, "adjusted net loss comparable to analysts' estimates" means net income (loss) from continuing operations comparable to analyst estimates. Adjusted net loss comparable to analysts' estimates is not a measure that GAAP recognizes. A full reconciliation between adjusted net loss comparable to analysts' estimates and GAAP net income (loss) from continuing operations before income taxes is presented below.

Operating revenue, including the effects of cash settled derivatives was $19.7 million for the fourth quarter 2010, an increase of $4.7 million over the same period in 2009.

Realized natural gas prices, after the effects of cash settled derivatives, declined by 5% to $5.88 per Mcf, and realized oil prices, after the effects of cash settled derivatives, increased by 10% to $72.94 per Bbl, in each case, when compared to fourth quarter 2009.

Lease operating expenses were $6.5 million, up $0.4 million in fourth quarter 2010 compared to the same period in 2009, primarily due to the company placing additional wells in service and additional processing costs for the Sarsen Plant. Lease operating expenses in the fourth quarter of 2010 were $30.26 per barrel in the Illinois Basin and $1.07 per Mcfe in the Appalachian Basin.

General and administrative expenses (G&A) were $4.2 million, down $0.7 million quarter-over-quarter due to a decrease in 2010 legal fees.

Impairment expense was $5.3 million, up $4.5 million compared to fourth quarter 2009. The company recognized impairment expense in fourth quarter of 2010 related to a cost recovery analysis of two test wells that the company drilled in Clearfield County, Pennsylvania in 2008.

Fourth quarter 2010 exploration expense was $2.3 million, up $1.4 million compared to fourth quarter 2009. The increase during 2010 was predominantly due to additional seismic services and geophysical evaluations that the company obtained in the Denver-Julesburg Basin (DJ Basin).

Depreciation, depletion, amortization and accretion (DD&A) was $6.6 million during the fourth quarter of 2010. This represents a decrease of $0.2 million when compared to fourth quarter in 2009 which was primarily attributable to sale of an interest in certain Marcellus Shale wells, acreage and equipment as a part of the formation of the company's joint venture with Sumitomo Corporation.

Capital expenditures were $32.6 million for the fourth quarter 2010, representing a $10.2 million increase when compared to previous issued guidance. The variance was primarily due to one additional well that the company drilled and completed in the DJ Basin, acreage acquisitions in the DJ Basin and additional capital expenses in the Illinois Basin.

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