Back to top

Analyst Blog

U.S. energy holding company, Energen Corporation (EGN - Snapshot Report) has closed a Purchase and Sale Agreement (PSA) with an undisclosed buyer for divesting its Alaska-based Black Warrior Basin coalbed methane properties for a consideration of roughly $160.0 million, including general closing adjustments. The undisclosed buyer (a limited liability corporation) also assumed Energen’s third-party operating agreements.

The net proceeds from the sale will be utilized by Energen to lower its short-term debt. The company added that the proved reserve related to the Black Warrior Basin assets as of Dec 31, 2012, was roughly 97.0 billion cubic feet.

In order to reflect the property sale, Energen has made an adjustment of 0.4 million barrels of oil equivalents (MMBOE) in its fourth-quarter production guidance, thereby bringing the full-year 2013 projection to 25.7 to 26.1 MMBOE. In the fourth quarter of 2013, Energen will reflect a non-cash gain on the transaction of approximately $33 million.

Birmingham, AL-based Energen is an independent oil and gas exploration and production firm. Through its wholly owned subsidiary, Energen Resources Corp., the company had approximately 750 million barrels of oil-equivalent proved, probable, and possible reserves at year-end 2012.

These all-domestic reserves are located mainly in the Permian and San Juan basins. Moreover, in the U.S., the company involves in acquisition and development of oil and gas properties.

The company currently retains a Zacks Rank #2 (Buy), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can look at utility gas distribution companies like Linn Co, LLC (LNCO - Snapshot Report), Matador Resources Co. (MTDR - Snapshot Report) and Resolute Energy Corp. (REN - Snapshot Report). All the firms sport a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%