Fri, Sep. 25, 3:15 PM
- Sterne Agee CRT’s Tim Rezvan notes that investors are still shorting oil and gas stocks, especially Chesapeake Energy (CHK -5.6%), and have been rapidly increasing their short positions in Approach Resources (AREX -7.4%), Occidental Petroleum (OXY +0.7%) and Energen (EGN -0.4%).
- According to Rezvan, AREX had a 77% increase in short interest to 7.9M shares (19.6% of shares outstanding) since the end of August, OXY had an 18.9% increase to 17.9M shares (2.3% of shares outstanding), and EGN had an 8.4% increase to 3.7M shares (4.7% of shares outstanding).
- Short interest in CHK rose another 3M shares to 220.6M (33.1% of shares outstanding), the seventh consecutive increase.
Tue, Sep. 8, 2:56 PM
- Energy E&P companies could suffer ~50% downside to 2017 consensus estimates, Cowen analysts say as they downgrade two-third of their portfolio coverage in the sector amid a weak oil price environment.
- The firm cuts capital spending estimates for several names in the sector, which in turn cuts production and cash flow estimates, the firm says as it lowers its 2016 production and operating cash flow estimates by a respective 4% and 35% below consensus view; by 2017, it sees 10% downside to consensus production estimates and 51% downside to consensus cash flow estimates.
- Downgraded to Underperform from Market Perform: BBG, BCEI, CWEI, DNR, NOG.
- Downgraded to Market Perform from Outperform: CPE, FANG, PDCE, PE, SYRG.
- Maintained at Market perform: AXAS, EGN
- Maintained at Outperform: OAS, QEP, WLL
Thu, Aug. 6, 5:11 PM
Wed, Aug. 5, 5:35 PM
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Fri, Jul. 31, 4:02 PM
Wed, Jun. 17, 3:33 PM
- Energen's (EGN -7%) public offering of 5.7M shares makes it the 30th North American oil company to raise funds from the public equity markets in 2015, and bankers and analysts say oil producers’ easy access to capital is a main reason there has not been more financial pain, M&A and debt defaults during the current oil slump.
- EGN’s $405M capital raise also could provide evidence that oil producers are beginning to call on investors not to fix their balance sheets but to help them ramp up drilling activity; EGN says it plans to use proceeds to increase drilling in the Midland Basin in H2 and begin a multi-year acceleration of development activities in the Permian Basin in 2016.
- Following the offering, Citigroup downgraded EGN's stock to Neutral from Buy and cut its price target to $78 from $80, saying near-term upside looks priced in at current valuation levels; however, Topeka Capital reiterated its Buy rating, saying it would take advantage of today's weakness, citing EGN's expanding asset base with the stacked-pay potential of the Permian Basin and optionality in the San Juan Basin Mancos oil play (Briefing.com).
Wed, Jun. 17, 7:54 AM
- Energen (NYSE:EGN) -2.3% premarket after announcing a public offering of 5.7M common shares, with an underwriters option to purchase up to an additional 855K shares.
- EGN says it plans to use the proceeds to fund a slight increase in drilling activity in the Midland Basin in H2 2015 and, more significantly, to begin a multi-year acceleration of development activities in the Permian Basin in 2016, with capital investment in 2016 of $1B or more; proceeds also may be used for other general corporate purposes, including the acquisition of proved and unproved leasehold and to repay borrowings outstanding under its credit facility.
Thu, Jun. 4, 3:49 PM
- Deutsche Bank says it enters H2 with a neutral outlook for the energy E&P sector and a cautious medium-term view on the commodities as valuations are still above past early cycle multiples.
- Although early 2015 trends of firming WTI crude prices, improved well productivity, and greater and faster than expected cost reductions provide support for the next cycle, DB sees these factors largely priced into E&P's.
- But the firm sees selective opportunities in the group, upgrading Whiting Petroleum (WLL -3%) and Bill Barrett (BBG +0.6%) to Buy from Hold, and naming Newfield Exploration (NFX -0.3%) and Energen (EGN -1.9%) as Top Picks.
- The firm downgrades WPX Energy (WPX -3.5%), which it says faces the challenge of meeting 2016 oil growth expectations against a backdrop of declining H2 volumes as Bakken completions slow and lower cash flow in 2016, and Cimarex Energy (XEC -1.4%) on lower volume growth and FY 2016 cash margins than peers with no support from hedges.
Tue, May 5, 5:35 PM
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Thu, Apr. 30, 5:19 PM
Thu, Feb. 12, 5:08 PM
Wed, Feb. 11, 5:35 PM
Tue, Feb. 10, 6:47 PM
- Figuring the debt markets are a bit more rational than the equity markets right now, Wunderlich analysts look to the bond market for some clues about energy investing.
- The firm finds that where Chesapeake Energy's (NYSE:CHK) debt is trading now as "quite refreshing" given the strong balance sheet the company has built, strengthening its conviction that CHK is a Best idea among oil stocks; others holding up well, it says, are financially strong names such as XEC, CXO, EGN, EOG, GPOR, MTZ, NBL, PTEN, PDCE, PXD and ROSE.
- In other cases, the debt is providing “equity-like returns” for investors who want to move out of stocks and into bonds, with the firm mentioning AREX, BBG, CWEI and NOG.
Tue, Feb. 10, 12:46 PM
Tue, Jan. 13, 12:47 PM
- Traders smelling blood - or oil - in the water have piled into shorts against energy E&P companies, with short interest jumping a total of 12% for the final two weeks of 2014, according to Sterne Agee analysts using NYSE data.
- Oasis Petroleum (NYSE:OAS) led a 45.9% jump in short interest, followed by Pioneer Natural Resources (NYSE:PXD) with a 45.2% increase and Chesapeake Energy (NYSE:CHK) short growth of 31.9%.
- Sterne Agee energy analyst Tim Rezvan thinks the shorts are on the right side of the oil trade for the foreseeable future, believing a break below $40/bbl "wouldn't be a surprise in the short term."
- Short positions did not increase for all companies, as short growth fell for Viper Energy Partners (NASDAQ:VNOM), Callon Petroleum (NYSE:CPE), Energen (NYSE:EGN) and PetroQuest Energy (NYSE:PQ), among others.
Wed, Jan. 7, 5:40 PM
- Energen (NYSE:EGN) says severe winter weather has hurt its production in the Permian Basin in west Texas in recent days and likely will negatively impact its Q1 results.
- The Permian Basin accounts for ~71% of EGN’s proved reserves; the company's net production in 2013 was 14.2M boe.
- Pioneer Natural Resources said yesterday that its drilling and production operations in the area had been hurt by the weather, while Apache said today it suffered only a modest impact.
EGN vs. ETF Alternatives
Energen Corp is a domestic oil and gas exploration and production company. Its reserves are primarily in the Permian basin of west Texas. The Company is also exploring the potential of an emerging oil play in the Mancos formation in the San Juan Basin.
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