Energy Stocks To Buy #2 — Rex Energy (REXX)
Small-cap producer Rex Energy (REXX) continues to be a workhorse in the Marcellus shale. REXX continues to surprise even its own management with just how much natural gas and NGLs it continues to frack. For the recently reported fourth quarter, REXX saw it daily production jump 49% compared to a year ago. At the same time, full year production rose 38% throughout all of 2013.
And management is predicting a 57% jump in production this year.
Believe it or not, REXX may just beat management’s expectations once again. The company recently upped its capex budget to focus on adding additional liquids production in the Marcellus. It should be quite successful at doing that, as its acreage in the play straddles much of the same areas as the previously mentioned RRC.
Rex Energy currently isn’t profitable — based on a recent earnings miss. However, REXX stock does trade at relatively cheap forward price-to-earnings ratio of around 18. And with a market cap of less than a $1 billion, REXX stock is perfect buyout bait for a larger firm.