U.S. energy holding company, Energen Corp. (EGN - Free Report) has entered into a Purchase and Sale (PSA) deal with an undisclosed buyer.
Per the agreement, Energen will divest its Ala.-based Black Warrior Basin coalbed methane properties for a consideration of roughly $160.0 million, including general closing adjustments. The company expects the contract – with an effective date of Jul 1 – to close by the first half of Oct.
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 at 25.7 to 26.1 MMBOE
Last month, Energen reported earnings per share of 66 cents per share, beating the Zacks Consensus Estimate of 61 cents, favored by improved realized oil and gas prices.
Birmingham, Ala.-based Energen is an independent oil and gas exploration and production firm. Moreover, in the U.S., the company involves in acquisition and development of oil and gas.
The company currently retains a Zacks Rank #3 (Hold), 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 AGL Resources Inc. , Atmos Energy Corporation (ATO - Free Report) and New Jersey Resources Corp. (NJR - Free Report) . All the firms sport a Zacks Rank #2 (Buy).