Intrinsic value of Rex Energy - REXX

Previous Close

$1.38

  Intrinsic Value

$0.25

stock screener

  Rating & Target

str. sell

-82%

Previous close

$1.38

 
Intrinsic value

$0.25

 
Up/down potential

-82%

 
Rating

str. sell

We calculate the intrinsic value of REXX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  0.00
  51.60
  46.94
  42.75
  38.97
  35.57
  32.52
  29.77
  27.29
  25.06
  23.05
  21.25
  19.62
  18.16
  16.85
  15.66
  14.59
  13.64
  12.77
  11.99
  11.29
  10.67
  10.10
  9.59
  9.13
  8.72
  8.35
  8.01
  7.71
  7.44
  7.19
Revenue, $m
  139
  211
  310
  442
  614
  833
  1,104
  1,432
  1,823
  2,280
  2,805
  3,401
  4,069
  4,808
  5,617
  6,497
  7,445
  8,460
  9,541
  10,685
  11,892
  13,161
  14,490
  15,879
  17,329
  18,839
  20,412
  22,047
  23,747
  25,513
  27,349
Variable operating expenses, $m
 
  754
  1,107
  1,581
  2,197
  2,978
  3,946
  5,121
  6,518
  8,152
  10,031
  12,163
  14,549
  17,192
  20,088
  23,233
  26,624
  30,254
  34,118
  38,211
  42,527
  47,062
  51,815
  56,784
  61,968
  67,370
  72,992
  78,839
  84,918
  91,235
  97,799
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  247
  754
  1,107
  1,581
  2,197
  2,978
  3,946
  5,121
  6,518
  8,152
  10,031
  12,163
  14,549
  17,192
  20,088
  23,233
  26,624
  30,254
  34,118
  38,211
  42,527
  47,062
  51,815
  56,784
  61,968
  67,370
  72,992
  78,839
  84,918
  91,235
  97,799
Operating income, $m
  -108
  -543
  -798
  -1,139
  -1,582
  -2,145
  -2,843
  -3,689
  -4,696
  -5,872
  -7,226
  -8,761
  -10,481
  -12,384
  -14,470
  -16,736
  -19,179
  -21,794
  -24,577
  -27,525
  -30,634
  -33,902
  -37,325
  -40,905
  -44,639
  -48,530
  -52,581
  -56,793
  -61,171
  -65,722
  -70,450
EBITDA, $m
  -40
  -439
  -646
  -922
  -1,281
  -1,737
  -2,301
  -2,986
  -3,801
  -4,754
  -5,850
  -7,093
  -8,485
  -10,026
  -11,715
  -13,549
  -15,527
  -17,644
  -19,897
  -22,284
  -24,801
  -27,446
  -30,218
  -33,115
  -36,139
  -39,289
  -42,568
  -45,978
  -49,523
  -53,207
  -57,035
Interest expense (income), $m
  31
  30
  44
  66
  97
  137
  187
  250
  325
  416
  521
  642
  780
  934
  1,104
  1,291
  1,494
  1,713
  1,947
  2,197
  2,461
  2,739
  3,032
  3,339
  3,659
  3,994
  4,342
  4,705
  5,083
  5,475
  5,883
Earnings before tax, $m
  -195
  -573
  -841
  -1,205
  -1,679
  -2,282
  -3,030
  -3,938
  -5,021
  -6,288
  -7,747
  -9,404
  -11,260
  -13,318
  -15,575
  -18,028
  -20,673
  -23,507
  -26,525
  -29,722
  -33,095
  -36,641
  -40,357
  -44,243
  -48,298
  -52,524
  -56,923
  -61,498
  -66,254
  -71,197
  -76,333
Tax expense, $m
  3
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -177
  -573
  -841
  -1,205
  -1,679
  -2,282
  -3,030
  -3,938
  -5,021
  -6,288
  -7,747
  -9,404
  -11,260
  -13,318
  -15,575
  -18,028
  -20,673
  -23,507
  -26,525
  -29,722
  -33,095
  -36,641
  -40,357
  -44,243
  -48,298
  -52,524
  -56,923
  -61,498
  -66,254
  -71,197
  -76,333

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  4
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  894
  1,351
  1,985
  2,833
  3,937
  5,338
  7,074
  9,180
  11,685
  14,613
  17,982
  21,802
  26,081
  30,817
  36,009
  41,648
  47,726
  54,233
  61,160
  68,496
  76,232
  84,363
  92,883
  101,789
  111,083
  120,766
  130,844
  141,326
  152,222
  163,545
  175,312
Adjusted assets (=assets-cash), $m
  890
  1,351
  1,985
  2,833
  3,937
  5,338
  7,074
  9,180
  11,685
  14,613
  17,982
  21,802
  26,081
  30,817
  36,009
  41,648
  47,726
  54,233
  61,160
  68,496
  76,232
  84,363
  92,883
  101,789
  111,083
  120,766
  130,844
  141,326
  152,222
  163,545
  175,312
Revenue / Adjusted assets
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
  0.156
Average production assets, $m
  900
  1,364
  2,005
  2,862
  3,977
  5,392
  7,145
  9,272
  11,803
  14,760
  18,163
  22,023
  26,344
  31,129
  36,372
  42,068
  48,208
  54,781
  61,778
  69,188
  77,002
  85,215
  93,821
  102,817
  112,204
  121,985
  132,166
  142,753
  153,759
  165,197
  177,083
Working capital, $m
  -70
  -111
  -163
  -232
  -322
  -437
  -579
  -752
  -957
  -1,197
  -1,473
  -1,786
  -2,136
  -2,524
  -2,949
  -3,411
  -3,909
  -4,442
  -5,009
  -5,610
  -6,243
  -6,909
  -7,607
  -8,337
  -9,098
  -9,891
  -10,716
  -11,575
  -12,467
  -13,394
  -14,358
Total debt, $m
  756
  1,088
  1,658
  2,422
  3,416
  4,676
  6,239
  8,134
  10,388
  13,023
  16,055
  19,494
  23,345
  27,608
  32,280
  37,355
  42,825
  48,682
  54,916
  61,518
  68,481
  75,799
  83,466
  91,482
  99,846
  108,561
  117,632
  127,065
  136,872
  147,063
  157,653
Total liabilities, $m
  884
  1,216
  1,786
  2,550
  3,544
  4,804
  6,367
  8,262
  10,516
  13,151
  16,183
  19,622
  23,473
  27,736
  32,408
  37,483
  42,953
  48,810
  55,044
  61,646
  68,609
  75,927
  83,594
  91,610
  99,974
  108,689
  117,760
  127,193
  137,000
  147,191
  157,781
Total equity, $m
  10
  135
  198
  283
  394
  534
  707
  918
  1,168
  1,461
  1,798
  2,180
  2,608
  3,082
  3,601
  4,165
  4,773
  5,423
  6,116
  6,850
  7,623
  8,436
  9,288
  10,179
  11,108
  12,077
  13,084
  14,133
  15,222
  16,355
  17,531
Total liabilities and equity, $m
  894
  1,351
  1,984
  2,833
  3,938
  5,338
  7,074
  9,180
  11,684
  14,612
  17,981
  21,802
  26,081
  30,818
  36,009
  41,648
  47,726
  54,233
  61,160
  68,496
  76,232
  84,363
  92,882
  101,789
  111,082
  120,766
  130,844
  141,326
  152,222
  163,546
  175,312
Debt-to-equity ratio
  75.600
  8.050
  8.360
  8.550
  8.670
  8.760
  8.820
  8.860
  8.890
  8.910
  8.930
  8.940
  8.950
  8.960
  8.960
  8.970
  8.970
  8.980
  8.980
  8.980
  8.980
  8.980
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
  8.990
Adjusted equity ratio
  0.007
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -177
  -573
  -841
  -1,205
  -1,679
  -2,282
  -3,030
  -3,938
  -5,021
  -6,288
  -7,747
  -9,404
  -11,260
  -13,318
  -15,575
  -18,028
  -20,673
  -23,507
  -26,525
  -29,722
  -33,095
  -36,641
  -40,357
  -44,243
  -48,298
  -52,524
  -56,923
  -61,498
  -66,254
  -71,197
  -76,333
Depreciation, amort., depletion, $m
  68
  103
  152
  217
  301
  408
  541
  702
  894
  1,118
  1,376
  1,668
  1,996
  2,358
  2,755
  3,187
  3,652
  4,150
  4,680
  5,241
  5,834
  6,456
  7,108
  7,789
  8,500
  9,241
  10,013
  10,815
  11,648
  12,515
  13,415
Funds from operations, $m
  -9
  -470
  -689
  -988
  -1,378
  -1,873
  -2,488
  -3,236
  -4,127
  -5,170
  -6,371
  -7,735
  -9,265
  -10,960
  -12,819
  -14,841
  -17,021
  -19,357
  -21,845
  -24,481
  -27,262
  -30,185
  -33,250
  -36,454
  -39,798
  -43,283
  -46,910
  -50,683
  -54,605
  -58,682
  -62,917
Change in working capital, $m
  -5
  -38
  -52
  -69
  -90
  -115
  -142
  -172
  -205
  -240
  -276
  -313
  -350
  -388
  -425
  -462
  -498
  -533
  -567
  -601
  -634
  -666
  -698
  -729
  -761
  -793
  -825
  -858
  -892
  -927
  -964
Cash from operations, $m
  -4
  -432
  -637
  -919
  -1,287
  -1,759
  -2,346
  -3,064
  -3,922
  -4,930
  -6,095
  -7,422
  -8,914
  -10,572
  -12,394
  -14,379
  -16,523
  -18,824
  -21,277
  -23,880
  -26,628
  -29,519
  -32,552
  -35,725
  -39,037
  -42,490
  -46,085
  -49,825
  -53,713
  -57,754
  -61,954
Maintenance CAPEX, $m
  0
  -68
  -103
  -152
  -217
  -301
  -408
  -541
  -702
  -894
  -1,118
  -1,376
  -1,668
  -1,996
  -2,358
  -2,755
  -3,187
  -3,652
  -4,150
  -4,680
  -5,241
  -5,834
  -6,456
  -7,108
  -7,789
  -8,500
  -9,241
  -10,013
  -10,815
  -11,648
  -12,515
New CAPEX, $m
  -49
  -464
  -640
  -857
  -1,115
  -1,415
  -1,753
  -2,127
  -2,530
  -2,958
  -3,403
  -3,859
  -4,322
  -4,784
  -5,244
  -5,696
  -6,140
  -6,573
  -6,996
  -7,410
  -7,815
  -8,213
  -8,606
  -8,996
  -9,387
  -9,781
  -10,180
  -10,588
  -11,006
  -11,438
  -11,886
Cash from investing activities, $m
  5
  -532
  -743
  -1,009
  -1,332
  -1,716
  -2,161
  -2,668
  -3,232
  -3,852
  -4,521
  -5,235
  -5,990
  -6,780
  -7,602
  -8,451
  -9,327
  -10,225
  -11,146
  -12,090
  -13,056
  -14,047
  -15,062
  -16,104
  -17,176
  -18,281
  -19,421
  -20,601
  -21,821
  -23,086
  -24,401
Free cash flow, $m
  1
  -965
  -1,381
  -1,928
  -2,620
  -3,475
  -4,508
  -5,732
  -7,154
  -8,782
  -10,616
  -12,658
  -14,904
  -17,352
  -19,996
  -22,830
  -25,850
  -29,049
  -32,424
  -35,970
  -39,684
  -43,566
  -47,613
  -51,829
  -56,214
  -60,771
  -65,506
  -70,425
  -75,534
  -80,840
  -86,354
Issuance/(repayment) of debt, $m
  5
  333
  571
  764
  994
  1,261
  1,562
  1,895
  2,254
  2,635
  3,032
  3,439
  3,851
  4,263
  4,672
  5,075
  5,470
  5,857
  6,234
  6,602
  6,963
  7,317
  7,668
  8,016
  8,364
  8,715
  9,071
  9,434
  9,806
  10,191
  10,590
Issuance/(repurchase) of shares, $m
  0
  701
  905
  1,290
  1,790
  2,422
  3,203
  4,149
  5,271
  6,581
  8,084
  9,786
  11,688
  13,792
  16,094
  18,591
  21,281
  24,158
  27,217
  30,456
  33,869
  37,454
  41,209
  45,134
  49,228
  53,493
  57,931
  62,546
  67,343
  72,329
  77,509
Cash from financing (excl. dividends), $m  
  2
  1,034
  1,476
  2,054
  2,784
  3,683
  4,765
  6,044
  7,525
  9,216
  11,116
  13,225
  15,539
  18,055
  20,766
  23,666
  26,751
  30,015
  33,451
  37,058
  40,832
  44,771
  48,877
  53,150
  57,592
  62,208
  67,002
  71,980
  77,149
  82,520
  88,099
Total cash flow (excl. dividends), $m
  3
  69
  94
  126
  164
  208
  257
  312
  372
  434
  500
  567
  635
  703
  770
  836
  902
  965
  1,027
  1,088
  1,148
  1,206
  1,264
  1,321
  1,378
  1,436
  1,495
  1,555
  1,616
  1,680
  1,745
Retained Cash Flow (-), $m
  150
  -701
  -905
  -1,290
  -1,790
  -2,422
  -3,203
  -4,149
  -5,271
  -6,581
  -8,084
  -9,786
  -11,688
  -13,792
  -16,094
  -18,591
  -21,281
  -24,158
  -27,217
  -30,456
  -33,869
  -37,454
  -41,209
  -45,134
  -49,228
  -53,493
  -57,931
  -62,546
  -67,343
  -72,329
  -77,509
Prev. year cash balance distribution, $m
 
  3
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -629
  -810
  -1,164
  -1,626
  -2,214
  -2,946
  -3,837
  -4,900
  -6,146
  -7,584
  -9,219
  -11,054
  -13,089
  -15,324
  -17,755
  -20,379
  -23,193
  -26,190
  -29,368
  -32,721
  -36,248
  -39,946
  -43,813
  -47,849
  -52,056
  -56,436
  -60,991
  -65,727
  -70,649
  -75,764
Discount rate, %
 
  15.80
  16.59
  17.42
  18.29
  19.20
  20.17
  21.17
  22.23
  23.34
  24.51
  25.74
  27.02
  28.37
  29.79
  31.28
  32.85
  34.49
  36.21
  38.02
  39.93
  41.92
  44.02
  46.22
  48.53
  50.96
  53.50
  56.18
  58.99
  61.94
  65.03
PV of cash for distribution, $m
 
  -543
  -596
  -719
  -830
  -920
  -978
  -1,000
  -983
  -930
  -847
  -742
  -626
  -509
  -398
  -299
  -217
  -151
  -100
  -64
  -40
  -23
  -13
  -7
  -4
  -2
  -1
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  1.4
  0.2
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Rex Energy Corporation is an independent oil, natural gas liquid (NGL) and natural gas company. The Company has operations in the Appalachian Basin and Illinois Basin. In the Appalachian Basin, the Company is focused on its Marcellus Shale, Utica Shale and Upper Devonian (Burkett) Shale drilling and exploration activities. In the Illinois Basin, the Company is focused on its developmental oil drilling on its properties. The Company owns an interest in approximately 1,820 oil and natural gas wells. The Company produces an average of over 195.8 net millions of cubic feet equivalent (MMcfe) per day, composed of approximately 62.4% natural gas, over 9.5% oil and approximately 28.1% NGLs. In the Illinois Basin, the Company produces an average of approximately 1,998 barrels of oil per day (bopd). Including both developed and undeveloped acreage, the Company controls approximately 99,200 gross (over 79,700 net) acres in Illinois, Indiana and Kentucky.

FINANCIAL RATIOS  of  Rex Energy (REXX)

Valuation Ratios
P/E Ratio -0.1
Price to Sales 0.1
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow -3.4
Price to Free Cash Flow -0.3
Growth Rates
Sales Growth Rate 0%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -80.3%
Cap. Spend. - 3 Yr. Gr. Rate -31.4%
Financial Strength
Quick Ratio 4
Current Ratio 0
LT Debt to Equity 7550%
Total Debt to Equity 7560%
Interest Coverage -5
Management Effectiveness
Return On Assets -14.8%
Ret/ On Assets - 3 Yr. Avg. -14.3%
Return On Total Capital -20.8%
Ret/ On T. Cap. - 3 Yr. Avg. -19.8%
Return On Equity -208.2%
Return On Equity - 3 Yr. Avg. -108%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 24.5%
Gross Margin - 3 Yr. Avg. 42%
EBITDA Margin -69.1%
EBITDA Margin - 3 Yr. Avg. -46.4%
Operating Margin -77.7%
Oper. Margin - 3 Yr. Avg. -107.2%
Pre-Tax Margin -140.3%
Pre-Tax Margin - 3 Yr. Avg. -125.3%
Net Profit Margin -127.3%
Net Profit Margin - 3 Yr. Avg. -136.4%
Effective Tax Rate -1.5%
Eff/ Tax Rate - 3 Yr. Avg. 14.5%
Payout Ratio 0%

REXX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the REXX stock intrinsic value calculation we used $139 million for the last fiscal year's total revenue generated by Rex Energy. The default revenue input number comes from 2016 income statement of Rex Energy. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our REXX stock valuation model: a) initial revenue growth rate of 51.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 15.8%, whose default value for REXX is calculated based on our internal credit rating of Rex Energy, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Rex Energy.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of REXX stock the variable cost ratio is equal to 357.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for REXX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4% for Rex Energy.

Corporate tax rate of 27% is the nominal tax rate for Rex Energy. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the REXX stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for REXX are equal to 647.5%.

Life of production assets of 13.2 years is the average useful life of capital assets used in Rex Energy operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for REXX is equal to -52.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $10 million for Rex Energy - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 9.953 million for Rex Energy is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Rex Energy at the current share price and the inputted number of shares is $0.0 billion.

RELATED COMPANIES Price Int.Val. Rating
RRC Range Resource 15.63 3.78  str.sell
ECR Eclipse Resour 2.15 0.53  str.sell
WPX WPX Energy 12.60 2.18  str.sell
EQT EQT 54.71 8.43  str.sell
RICE Rice Energy 29.32 2.37  str.sell
AR Antero Resourc 17.65 4.96  str.sell
COG Cabot Oil&Gas 26.64 1.39  str.sell

COMPANY NEWS

▶ Rex Energy reports 3Q loss   [Nov-16-17 05:14AM  Associated Press]
▶ Rex Energy Corporation to Host Earnings Call   [Nov-15-17 07:30AM  ACCESSWIRE]
▶ What Could Impact Natural Gas Futures?   [Nov-06-17 10:20AM  Market Realist]
▶ Will US Natural Gas Inventories Help Natural Gas Futures?   [Oct-27-17 12:11PM  Market Realist]
▶ Will Mild Weather Impact Natural Gas Prices?   [Oct-25-17 05:36PM  Market Realist]
▶ How Weather Affects Natural Gas Prices   [Oct-18-17 09:14AM  Market Realist]
▶ Rex Energy Provides Operations Update   [Oct-11-17 07:30AM  GlobeNewswire]
▶ Why US Natural Gas Prices Could Rise in 2018   [Sep-19-17 07:38AM  Market Realist]
▶ Should You Buy Rex Energy Corporation (REXX)?   [Sep-06-17 09:08PM  Simply Wall St.]
▶ US Natural Gas Futures Are near a 5-Week High   [Sep-01-17 11:39AM  Market Realist]
▶ Will US Natural Gas Futures Rise in September?   [Aug-28-17 01:06PM  Market Realist]
▶ ETFs with exposure to Rex Energy Corp. : August 25, 2017   [Aug-25-17 05:25PM  Capital Cube]
▶ Rex Energy reports 2Q loss   [Aug-08-17 04:44PM  Associated Press]
▶ US Natural Gas Inventories Are Slowing   [Jul-28-17 02:35PM  Market Realist]
▶ US Weather Could Drive Natural Gas Demand   [01:05PM  Market Realist]
▶ Monthly US Natural Gas Consumption Is near a 2-Year Low   [Jul-21-17 12:36PM  Market Realist]
▶ Slowing Natural Gas Inventories Could Drive Prices   [Jul-14-17 02:05PM  Market Realist]
▶ ETFs with exposure to Rex Energy Corp. : July 6, 2017   [Jul-06-17 02:07PM  Capital Cube]
▶ Natural Gas Futures Could Maintain Bullish Momentum   [Jun-30-17 08:15AM  Market Realist]
▶ Will US Natural Gas Inventories Support Prices?   [Jun-23-17 02:35PM  Market Realist]
▶ Will Weather Forecasts Surprise Natural Gas Bulls This Week?   [Jun-16-17 01:05PM  Market Realist]
▶ ETFs with exposure to Rex Energy Corp. : June 5, 2017   [Jun-05-17 02:42PM  Capital Cube]
▶ ETFs with exposure to Rex Energy Corp. : May 26, 2017   [May-26-17 01:24PM  Capital Cube]
▶ ETFs with exposure to Rex Energy Corp. : May 15, 2017   [May-15-17 04:28PM  Capital Cube]
▶ Rex Energy tops Street 1Q forecasts   [May-09-17 05:22PM  Associated Press]
▶ Why Weekly US Natural Gas Consumption Rose in Early May 2017   [May-08-17 07:36AM  Market Realist]
▶ Rex Energy Announces One-For-Ten Reverse Stock Split   [May-05-17 04:01PM  GlobeNewswire]
▶ ETFs with exposure to Rex Energy Corp. : May 2, 2017   [May-02-17 04:32PM  Capital Cube]
▶ ETFs with exposure to Rex Energy Corp. : April 19, 2017   [Apr-19-17 02:33PM  Capital Cube]
▶ Analyzing US Natural Gas Inventories: Week Ending April 7   [Apr-17-17 10:24AM  Market Realist]
▶ US Natural Gas Production Near August 2016 High   [Apr-10-17 07:36AM  Market Realist]
▶ ETFs with exposure to Rex Energy Corp. : April 7, 2017   [Apr-07-17 05:22PM  Capital Cube]
▶ ETFs with exposure to Rex Energy Corp. : March 27, 2017   [Mar-27-17 04:04PM  Capital Cube]
▶ Analyzing US Natural Gas Inventories: Week Ending March 10   [Mar-17-17 11:06AM  Market Realist]
▶ Decoding US Natural Gas Inventories: Week Ending March 3   [Mar-14-17 07:36AM  Market Realist]
▶ Rex Energy reports 4Q loss   [Mar-07-17 04:28PM  Associated Press]
Financial statements of REXX
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.