Rex Energy Corporation Announces Sale of Midstream Assets and Increase in Borrowing Base.
STATE COLLEGE, Pa., May 7, 2012 (GLOBE NEWSWIRE) -- Rex Energy Corporation (Rex Energy) (Nasdaq:REXX - News) announced today that it, together with its partners in Keystone Midstream Services, LLC (Keystone), entered into an Agreement and Plan of Merger with a subsidiary of MarkWest Energy Partners L.P. (MarkWest) pursuant to which MarkWest will acquire Keystone for a purchase price of $512 million. Rex Energy holds a 28% interest in Keystone and expects net proceeds from the sale (after taxes and subject to customary post-closing adjustments and escrows) to be approximately $120 million, exceeding the previously announced range of $90 to $110 million in combined expected proceeds from the sale of its midstream and Rockies assets. The transaction is subject to customary conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act, and is expected to close during the second quarter of 2012. Evercore Partners advised Keystone Midstream Services, LLC with respect to this transaction.