Sep. 29, 2014, 12:26 PM
- Encana’s (ECA +2.3%) takeover of Athlon Energy (ATHL +24.6%) is good news for Diamondback Energy (FANG +2.3%) and Energen (EGN +2.2%), according to analysts at Sterne Agee.
- The acquisition implies a value of $98/share for FANG, Sterne says, based on FANG's 85K net acre leasehold position, estimated 19.8K boe/day of Q3 production, $585M of assumed debt, and a $1.7B market value for the Viper Energy Partners (NASDAQ:VNOM) units it owns.
- The firm sees even more upside for EGN, as ECA’s price implies a value of $102/share for EGN, based on 180K net acres across both sides of the Permian Basin, 48K boe/day of Q3 Permian Basin production, 132M cfe/day of Q3 San Juan Basin, and $835M of pro forma net debt as of Sept. 30.
- Permian producers Laredo Petroleum (LPI +5%), Parsley Energy (PE +5%) and RSP Permian (RSPP +4.8%) also are higher following the acquisition news.
Mar. 13, 2014, 3:10 PM
- Sempra Energy (SRE +1.4%) and AGL Resources (GAS +0.9%) have expressed interest in buying Energen’s (EGN +0.7%) natural gas utility, which could fetch more than $1B, Bloomberg reports.
- EGN, which has said it wants to focus on oil and gas exploration, reportedly is working with J.P. Morgan to solicit bids for Alagasco, which is Alabama’s largest gas distributor and services 425K homes and businesses.
- SRE is believed to be interested in Alagasco because it owns an Alabama gas utility and would like expand its reach across the state; AGL has said it wants to make more acquisitions now that it has finished integrating the Nicor gas utility it bought in 2011.
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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