EGN

Energen Corp

Energy


Presented:07/20/2016
Price:$48.62
Cap:$4.21B
Current Price:$72.12
Cap:$7.03B

Presented

Date07/20/2016
Price$48.62
Market Cap$4.21B
Ent Value$3.67B
P/E RatioN/A
Book Value$31.72
Div Yield0%
Shares O/S86.63M
Ave Daily Vol1,393,632
Short Int6.77%

Current

Price$72.12
Market Cap$7.03B
Energen Corp. is an energy holding company. It engages in the development, acquisition, exploration and production of oil, natural gas and natural gas liquids in the continental U.S. and in the purchase, distribution and sale of natural gas in central and north Alabama. The company operates through two business segments: Oil and Gas Operations, and Natural Gas Distribution segment. The Oil and Gas Operations segment develops, acquires, explores and produces oil and gas in the continental United States. Its oil and gas operations focus on increasing production and adding proved reserves through the development and acquisition of oil and gas properties. The Natural Gas Distribution segment purchases, distributes and sells of natural gas in central and north Alabama. The company's two principal subsidiaries are Energen Resources Corp. and Alabama Gas Corp. The company was founded in 1978 and is headquartered in Birmingham, AL.

Publicly traded companies mentioned herein: Anadarko Petroleum Corporation (APC), Energen Corporation (EGN), QEP Resources Inc (QEP)

Highlights

The presenter believes Energen (EGN) is likely to see “a step-change in capital efficiency” this year and is long the stock at $48. He sees the Martin County wells being drilled in 2016 showing “much better” results compared to Glasscock County (where EGN has historically been active) and this should lead to both above average growth and actual production growth exceeding Street expectations in 2017-18. Shares of EGN trade at a 2 turn discount (EV/ EBITDA) to Permian peers, but “in a world where E&Ps are valued relatively richly, there is upside for EGN based on the strip alone (to $55); but as we see Street revisions the multiple should expand as well”.

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Idea Discussion

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