Several exploration and production companies with significant exposure to various North American Shale Plays have sold off since the market peaked in June 2009. The market seems concerned about the lack of growth in the economy and the weak fundamental background for natural gas prices. This includes high storage levels, weak industrial demand and competition from Liquefied Natural Gas (LNG) from overseas.
Rex Energy Corp (REXX) has 87,000 gross acres (65,000 net) in the Marcellus Shale, and is just starting to develop its acreage in the Marcellus Shale. Rex Energy peaked at $7.57 in early June 2009, on the back of the strong rally in the overall market. It has since declined to $4.30, a 43% decline. This is still far above its 52 week low of $0.99 per share reached in early March 2009.
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