The company has a joint venture agreement with a subsidiary of Sumitomo Corporation to sell and transfer interests in its Marcellus Shale assets located in the Commonwealth of Pennsylvania for $140.4 million. Under the terms of agreement, Sumitomo would pay around $88.4 million in cash. Besides, REXX sold stakes in Butler County area and the Appalachian region for $19 million and $36 million, respectively.
For fourth quarter of 2010, production revenue increased 27% compared to fourth quarter 2009, attributable to a 32% increase in production volume for the same period. Commenting on reserve growth, Dan Churay, CEO, said in a press statement, "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." Of the total reserves of 201.7 Bcfe, Marcellus Shale accounts for 72%, or 1.46 Bcfe of reserves.Analysts expect the stock to deliver 41% in the next one year with buy ratings of 73%. The stock is trading at 26.8 times its estimated 2012 earnings.