Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, July 6, 2018

Article Excerpt

ENERGEN CORP., $75.10, symbol EGN on New York, is an oil and gas exploration company operating in Texas and New Mexico. It has reserves of 444 million barrels of oil equivalent and the potential for another 2.7 billion barrels for future development. In May 2018, billionaire investor Carl Icahn and former protege Keith Meister, head of Corvex Management, said they’ll to work together to buy Energen. They see the oil and gas producer as undervalued. In the first quarter, ended March 31, 2018, Energen’s revenue rose 47.8%, to $356.2 million from $240.9 million a year earlier. Revenue was up as a result of 76% higher production and a 25% increase in oil prices. The company’s earnings in the first quarter, excluding one-time items, were $79.4 million, or $0.81 a share. Energen lost $12.4 million, or $0.13 a share, a year earlier. To improve its results, the company has now incorporated a new drilling technology, Gen 3 Completions. However, Energen has a history of increasing…

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