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Carl Icahn Boosts Energen (EGN) Ownership, Plans Takeover
Energen Corporation has provided an update that Carl Icahn has increased stake holding in the company from 3.8% to 4.3%.
Carl Icahn is boosting its stake in Energen as the activist investor is planning a takeover. In May, Icahn and Keith Meister — the hedge fund manager of Corvex Management — expressed intentions to acquire Energen, which is undervalued as per their estimates. It is to be noted that Corvex, with an 8% stake in Energen, is considered the second-largest stockholder.
Energen primarily operates in the Permian Basin, a prolific oil and gas play in the United States. From 2012 to 2017, the company boosted Permian net production to 76.1 thousand barrels of oil equivalent per day (MBOE/D) from 30.8 MBOE/D. Energen expects to raise production further to 95.5 MBOE/D in 2018. Higher production expectations amid recovering crude prices should boost the company’s cashflow.
The company also has strong cost-control initiatives. For 2018, Energen estimates lease operating expense (LOE) per barrels of oil equivalent between $6.40 and $6.60, lower than $6.61 recorded in 2017. On top of that, the oil and gas explorer’s balance sheet is significantly less debt-laden as compared to the industry. The debt-to-capitalization ratio of Energen is 21.3%, lower than the industry’s 86%.
All these developments are reflected in the company’s impressive pricing chart. Over the past year, the stock has rallied 44.3%, outperforming the 19% collective gain of all the stocks belonging to the industry.
Headquartered in Birmingham, AL, Energen currently carries a Zacks Rank #3 (Hold). Meanwhile, better-ranked players in the energy space include Anadarko Petroleum Corporation , Eclipse Resources Corporation and Chevron Corporation (CVX - Free Report) . Anadarko carries a Zacks Rank #2 (Buy), while Eclipse and Chevron sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
We expect Anadarko Petroleum to witness year-over-year earnings growth of 229.6% in 2018.
Eclipse is expected to record revenue growth of 13.5% through 2018.
Chevron will likely see year-over-year earnings growth of 130.3% in 2018.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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