Energen: A Permian Pure Play
Richard Zeits • 16 Comments
Richard Zeits • 16 Comments
Energen Shows Signs Of Stress With An Ill-Timed 24% Share Count Expansion
Michael Fitzsimmons • 13 Comments
Michael Fitzsimmons • 13 Comments
Tue, Nov. 15, 10:49 AM
- West Texas' Permian Basin now holds nearly as many active oil rigs as the rest of the U.S. combined, including those offshore, the U.S. Energy Information Administration reports.
- The rig count has been rising since this summer, but the Permian began seeing rigs increase earlier than the U.S. as a whole, and is adding rigs more quickly; of the ~450 total U.S. rigs, the Permian now accounts for ~220.
- Permian production has reached 2M bbl/day of oil, while south Texas’ Eagle Ford and North Dakota’s Bakken have fallen to below 1M bbl/day.
- Top Permain producers include CVX, OXY, APA, PXD, CXO, DVN, EOG, MRO, FANG, XOM, ECA, RSPP, SM, EGN, PE, AREX, GPOR, XEC, LPI, CPE, ESTE, WPX, PDCE
Mon, Nov. 7, 1:15 PM
- Energen (EGN +5.5%) is upgraded to Buy from Accumulate with a $73 price target, raised from $69, at KLR Group, which boosts its outlook for the company's capital productivity, 2017 growth and cash operating expenses.
- The firm also notes several potential catalysts ahead for EGN, including the continued performance from its upsized fracs and its balance sheet, that allows the company flexibility to either further accelerate activity or take advantage of potential acquisitions.
- KLR also upgrades Cimarex Energy (XEC +1.9%) to Accumulate from Hold with a $152 price target, up from $143, citing an anticipated 5%-10% lower capital intensity implied in preliminary 2017 guidance as well as a recent ~15% drop that has underperformed the sector.
Thu, Nov. 3, 5:00 PM
Wed, Nov. 2, 5:35 PM
- AAOI, ABTL, ACET, AGO, AHT, AIRM, AL, AMBC, AMBR, AMED, AMH, ANET, ATSG, ATVI, BBG, BLDR, BNFT, BOJA, BRS, CARA, CARB, CBS, CDR, CECO, CERS, CINR, CLNE, CLVS, COGT, CPSI, CRC, CSC, CSOD, CTRL, CWST, DCO, DCT, ECOM, ECR, ED, EFC, EGN, EGOV, ELY, EOG, EPR, EVC, EXEL, FCE.A, FEYE, FFG, FLDM, FLR, FNGN, FOSL, FPRX, GCAP, GERN, GLUU, GNMK, GNW, GPRO, GSAT, GSBD, GST, GUID, GXP, HCI, HDP, HIL, HTGC, IMMR, IMPV, INAP, INGN, INVN, IVR, JJSF, KAR, KHC, KMPR, KW, LADR, LCI, LGF, LGND, LNT, LOCO, LVS, LXU, MAIN, MDRX, MED, MEDP, MELI, MHK, MITT, MMI, MNST, MRC, MSI, MTD, MTX, MTZ, NAVG, NDLS, NE, NFG, NKTR, NNI, NPTN, NUS, OEC, OLED, OREX, OTEX, OVAS, PBA, PCTY, PDLI, PEN, PETX, PFMT, PODD, QLYS, QRVO, RATE, RMAX, RP, RPXC, RTRX, RVNC, SBUX, SEM, SJI, SLCA, SPPI, SPXC, SSNI, STAA, STAG, STMP, SWIR, SWKS, SYMC, TAHO, THG, TRMR, TRQ, TRUE, TS, TSRO, TWLO, TWOU, TXMD, UBNT, UEIC, UEPS, VRNS, VTL, WEB, WGL, WIFI, WTW, XLRN
Mon, Sep. 19, 11:59 AM
- Energen (EGN +0.7%) is initiated with a Buy rating and a $66 price target at Canaccord, which says that until recently that EGN had been mostly an afterthought relative to Permian high flyers such as Parsley Energy, Diamondback Energy and RSP Permain due to its apparently more marginal acreage, a legacy San Juan asset and greater leverage.
- However, the firm now believes that EGN's Midland and Delaware positions both can support meaningful growth with WTI crude in the $40s.
- After having sold the rest of the San Juan and non-core Delaware this summer, the streamlined EGN should trade at a higher multiple instead at discount to peers, Canacord says.
Tue, Aug. 30, 6:52 PM
- Earlier fears that some energy companies might not be able to secure new lines of credit because of the collapse in oil prices seem to be a thing of the past; in fact, banks are willing to lend but energy companies do not seem particularly eager to borrow, says Stifel's Daniel Guffy and his analyst team.
- Banks have sought to work through the debt challenges in the energy end markets, as forcing a bankruptcy risks a liquidation that would not come close to recovering the loan value; banks seem willing to lend again as the fall redetermination begins, but E&P companies have little appetite to add leverage, although this could shift as E&P fundamentals improve, Stifel says.
- Companies in Stifel's coverage that have chosen to take a defensive posture by reigning in capex and curbing growth to protect balance sheets and/or preserve liquidity include Buy-rated CRZO, EGN, NFX and XEC, as well as Hold-rated CLR, COG, CRK and PQ.
Mon, Aug. 29, 6:25 PM
- Williams Capital believes oil industry fundamentals are solid despite current commodity price levels but is cautious overall and advises investors not to chase the recent run at current valuations.
- However, the firm recommends select underappreciated companies with lower expectations and re-rating potential, and thinks companies situated in core resource plays that can demonstrate further capital efficiency improvements with catalysts will continue to garner top valuations and M&A premiums.
- Two of Williams' favorites are SM Energy (NYSE:SM), which the firm says remains one of the cheapest names in the sector with a solid balance sheet and assets as well as a conservative management team, and Newfield Exploration (NYSE:NFX), which Williams sees thriving through the current downturn given its strong balance sheet, ample financial liquidity and strong hedge book.
- Also initiated with Buy ratings: Cabot Oil & Gas (NYSE:COG), Energen (NYSE:EGN), Gulfport Energy (NASDAQ:GPOR), Oasis Petroleum (NYSE:OAS), PDC Energy (NASDAQ:PDCE), Pioneer Natural Resources (NYSE:PXD).
- Driven largely by valuation, Williams assigns Hold ratings on Diamondback Energy (NASDAQ:FANG), Gastar Exploration (NYSEMKT:GST), Laredo Petroleum (NYSE:LPI), Parsley Energy (NYSE:PE), Rice Energy (NYSE:RICE) and Cimarex Energy (NYSE:XEC).
Mon, Aug. 8, 5:28 PM
Sun, Aug. 7, 5:35 PM
- AMPH, APLE, ARNA, ATSG, BKD, BLCM, BOJA, BWXT, CAI, CC, CLDX, CLNY, CLVS, CPE, CSC, CSLT, CUI, CVG, DTSI, DVA, EGN, EGY, ELNK, ENDP, ENV, FNV, HTZ, ICUI, IFF, IPHI, JPEP, KITE, LC, LXU, MAIN, MBI, MCHP, MODN, MTW, MXL, NCMI, NILE, NPTN, NUAN, NVGS, NVRO, NWSA, ONDK, OPK, OTTR, PFSW, PHH, PKY, PNM, PNNT, PRAA, PRI, RARE, RAX, RBA, RBC, REN, RMTI, ROG, RPD, RSPP, RWT, SHO, SINA, SREV, TUBE, TVIA, TWLO, VSLR, WB, WBMD, ZLTQ
Mon, Jun. 20, 5:48 PM
- Energen (NYSE:EGN) says it has closed or signed purchase and sale agreements for its non-core Delaware Basin and San Juan Basin assets totaling $551M in gross proceeds.
- EGN says net production associated with the non-core properties being sold averaged 9K boe/day in April, of which only 34% was oil; proved reserves associated with the sales totaled 55M boe as of Dec. 31.
- EGN raises its planned 2016 capital spending to ~$450M from prior guidance of $350M-$400M, and expects to end the year with 54-58 net DUCs in the Permian Basin vs. prior guidance of 37-50 net DUCs.
Fri, May 13, 12:57 PM
- Carrizo Oil & Gas (CRZO -1.2%) and Energen (EGN -1.3%) are upgraded to Overweight from Neutral at J.P. Morgan, which says the small-to-midcap E&P sector delivered a generally positive Q1 from an operational standpoint and “several updates driving NAV accretion.”
- JPM likes CRZO as it expects lower completed well costs in the Eagle Ford and thinks the company is well-positioned entering 2017 from an operational standpoint; the firm raises its stock price target to $40 from $35.
- EGN enjoys a robust balance sheet, which may be further strengthened by an anticipated $400M in asset sales, the firm says, raising the stock price target to $51 from $43.
- The firm upgrades Laredo Petroleum (LPI -0.8%) to Neutral from Underweight with a $12 price target, raised from $9.
Thu, May 5, 6:09 PM
- Energen (NYSE:EGN): Q1 EPS of -$0.64 beats by $0.03.
- Revenue of $128.2M (-42.2% Y/Y) beats by $5.29M.
Wed, May 4, 5:35 PM
- ABCO, ABTL, ACAD, ACET, AHS, AHT, AIRM, AL, ALEX, AMBR, AMH, ANET, APLE, ASYS, ATHX, ATVI, ATW, BBG, BCEI, BIO, BIOS, BLDR, BOJA, CAA, CARA, CERN, CINR, CLNE, CLVS, CMLS, CPA, CTRL, CYBR, CZR, DATA, DCT, DEPO, DIOD, DK, DKL, DV, DWA, EBS, ECOM, ED, EFC, EGAN, EGL, EGN, EGY, ELON, ENDP, ENV, EOG, ERII, ESL, EVC, EVDY, EVHC, FCE.A, FEYE, FISV, FLR, FPRX, FTD, GBDC, GEOS, GERN, GPRO, GSAT, GST, GUID, GXP, HLF, HTGC, ICPT, IMMR, IMPV, INAP, JCOM, LADR, LOCO, MAIN, MCHX, MDR, MDRX, MDVN, MELI, MHK, MITT, MNTX, MRIN, MSI, MTD, MTZ, NBIX, NGVC, NSTG, NWSA, OLED, OMED, OUT, OVAS, PACD, PCTY, PEGA, PETX, PKI, PMT, POST, PRSS, PTCT, PTLA, QLGC, RPTP, RRMS, RWT, SAAS, SEM, SEMG, SNCR, SPPI, SPWR, SPXC, SQ, SSNC, SWIR, TCRD, TEAM, TRMR, TRUE, TRQ, TRUP, TSRO, TWOU, UBNT, UEPS, UNXL, WAGE, WAIR, WEB, WIFI, WING, XNPT, Y, YELP
Wed, Apr. 13, 2:56 PM
- Deutsche Bank upgrades Continental Resources (CLR -1.1%) is upgraded to Buy from Hold, citing a favorable outlook for the Anadarko Basin and the company's lower cost structure, while downgrading Energen (EGN -1.5%) to Hold from Buy.
- With both stocks performing strongly off February lows, the firm says its move into CLR from EGN provides additional exposure to the Anadarko Basin with upcoming acreage delineation catalysts and a producer that can better capture an improving crude outlook with a lower cost structure, unhedged profile and 100-plus core Bakken DUC count.
- Now read Continental Resources is overbought
Fri, Apr. 1, 10:48 AM
- Energen (EGN -1.2%) is initiated with an Outperform rating and a $43 target price at Credit Suisse, which cites an attractive valuation, balance sheet strength and a large inventory runway.
- While 2016 activity was slowed considerably to preserve capital in a lower-for-longer price environment, Credit Suisse says that even when factoring in a 2015 run-rate drilling program, inventory still totals ~34 years, and ~79 years given the 2016 completion rate.
- EGN's 2016 drilling plans call for the completion of just 46 horizontal DUC wells, plus the drilling and completion of an additional horizontal well to complete a pad as well as six vertical Wolfberry wells to hold acreage, but the firm says the company also provided a capital range that allows for acceleration if commodity prices improve materially into H2.
- Now read Energen could be near sale of Delaware property, analyst says
Thu, Mar. 31, 2:36 PM
- Energen (EGN +4.7%) could be close to selling its 31K non-core Delaware acres for as much as $300M-plus, which could boost the stock, SunTrust analysts say.
- "A strong Permian sale could cause the company to pull its San Juan proposed sale, as the proceeds combined with the recent $381M equity offering should be more than ample for upcoming activity," SunTrust writes.
- The firm says the company could increase spending on drilling and completions above $250M if the non-core Delaware Basin package is sold for more than $300M, which also would reduce the urgency for other asset sales.
- SunTrust raises its price target for Buy-rated to $43 from $30.
- Now read Energen shows signs of stress with an ill-timed 24% share count expansion