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Here's Why Energen (EGN) Stock Might Be a Great Pick Now
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Energen Corporation , on Mar 28, was upgraded to a Zacks Rank #1 (Strong Buy). The $5.25 billion market cap exploration and production company has a lot to offer its investors as shown below.
Why the Upgrade?
Analysts’ View
The company has witnessed six positive estimate revisions for its current quarter in the past 60 days against a single negative revision, while the Zacks Consensus Estimate has also moved higher over the same period from 60 cents per share to 70 cents per share. During the same time period, eight analysts bumped up their estimates for 2018, pushing the Zacks Consensus Estimate for the current year to $3.17 a share from $2.38.
Positive Catalysts
Energen’s first-quarter 2018 revenues are expected to go up 37.9% year over year, while its sales for the whole year are anticipated to surge 40.1%. This is supported by the company’s expectation of increasing full-year 2018 production by 25% from 2017. The Permian Basin-focused company expects the increase in output to continue as its annual production is estimated to reach the level of 160 thousand barrels of oil equivalent per day (MBoe/d) by 2020.
Additionally, Energen’s total proved oil-equivalent reserves — as of Dec 31, 2017 — was 444 million barrels, 40% higher than 2016, most of which is in the low-cost Permian Basin.
Moreover, the oil and gas explorer has an impressive earnings surprise history, the average positive earnings surprise being 19.7% in the trailing four quarters.
The good news does not stop here. Energen has set a capital budget of $1.1-$1.3 billion for 2018 that will be spent for the oil-rich projects. The decision seems impressive given that the company has a low leverage than the industry it belongs to, giving it the room to take loans without hurting its balance sheet.
Moreover, the company’s 2018 guidance states that per unit spending is expected to go down significantly from 2017. Net salaries and general & administrative expense, production costs, marketing & transportation and DD&A expense are anticipated to reflect most of the declines in spending.
Also, the Birmingham, AL-based upstream energy firm has gained 10.3% in the last year against its industry’s 8.5% decline.
Other Stocks to Consider
Other top-ranked stocks in the oil and energy sector are Pioneer Natural Resources Company , EOG Resources, Inc. (EOG - Free Report) and Continental Resources, Inc. , each sporting the same bullish Zacks Rank of 1 as Energen. You can see the complete list of today’s Zacks #1 Rank stocks here.
Irving, TX-based Pioneer Natural is an independent oil and gas exploration and production company. Its revenues for first-quarter 2018 are anticipated to improve 23.7% from the prior-year quarter. The company witnessed a positive average earnings surprise of 66.9% in the trailing four quarters.
Houston, TX-based EOG Resources is an upstream energy player. Its earnings for 2018 are anticipated to skyrocket 281.3% year over year. The company delivered an average positive earnings surprise of 25.7% in the trailing four quarters.
Oklahoma City, OK-based Continental Resources is an oil and gas exploration and production company. Its revenues for first-quarter 2018 are estimated to soar 54.9% from the year-ago quarter’s figure. For 2018, the bottom line is likely to be up 364.7%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Here's Why Energen (EGN) Stock Might Be a Great Pick Now
Energen Corporation , on Mar 28, was upgraded to a Zacks Rank #1 (Strong Buy). The $5.25 billion market cap exploration and production company has a lot to offer its investors as shown below.
Why the Upgrade?
Analysts’ View
The company has witnessed six positive estimate revisions for its current quarter in the past 60 days against a single negative revision, while the Zacks Consensus Estimate has also moved higher over the same period from 60 cents per share to 70 cents per share. During the same time period, eight analysts bumped up their estimates for 2018, pushing the Zacks Consensus Estimate for the current year to $3.17 a share from $2.38.
Positive Catalysts
Energen’s first-quarter 2018 revenues are expected to go up 37.9% year over year, while its sales for the whole year are anticipated to surge 40.1%. This is supported by the company’s expectation of increasing full-year 2018 production by 25% from 2017. The Permian Basin-focused company expects the increase in output to continue as its annual production is estimated to reach the level of 160 thousand barrels of oil equivalent per day (MBoe/d) by 2020.
Additionally, Energen’s total proved oil-equivalent reserves — as of Dec 31, 2017 — was 444 million barrels, 40% higher than 2016, most of which is in the low-cost Permian Basin.
Moreover, the oil and gas explorer has an impressive earnings surprise history, the average positive earnings surprise being 19.7% in the trailing four quarters.
The good news does not stop here. Energen has set a capital budget of $1.1-$1.3 billion for 2018 that will be spent for the oil-rich projects. The decision seems impressive given that the company has a low leverage than the industry it belongs to, giving it the room to take loans without hurting its balance sheet.
Moreover, the company’s 2018 guidance states that per unit spending is expected to go down significantly from 2017. Net salaries and general & administrative expense, production costs, marketing & transportation and DD&A expense are anticipated to reflect most of the declines in spending.
Also, the Birmingham, AL-based upstream energy firm has gained 10.3% in the last year against its industry’s 8.5% decline.
Other Stocks to Consider
Other top-ranked stocks in the oil and energy sector are Pioneer Natural Resources Company , EOG Resources, Inc. (EOG - Free Report) and Continental Resources, Inc. , each sporting the same bullish Zacks Rank of 1 as Energen. You can see the complete list of today’s Zacks #1 Rank stocks here.
Irving, TX-based Pioneer Natural is an independent oil and gas exploration and production company. Its revenues for first-quarter 2018 are anticipated to improve 23.7% from the prior-year quarter. The company witnessed a positive average earnings surprise of 66.9% in the trailing four quarters.
Houston, TX-based EOG Resources is an upstream energy player. Its earnings for 2018 are anticipated to skyrocket 281.3% year over year. The company delivered an average positive earnings surprise of 25.7% in the trailing four quarters.
Oklahoma City, OK-based Continental Resources is an oil and gas exploration and production company. Its revenues for first-quarter 2018 are estimated to soar 54.9% from the year-ago quarter’s figure. For 2018, the bottom line is likely to be up 364.7%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>