U.S. energy holding company,
) has closed a Purchase and Sale Agreement (PSA) with an
undisclosed buyer for divesting its Alaska-based Black Warrior
Basin coalbed methane properties for a consideration of roughly
$160.0 million, including general closing adjustments. The
undisclosed buyer (a limited liability corporation) also assumed
Energen's third-party operating agreements.
The net proceeds from the sale will be utilized by Energen to
lower its short-term debt. The company added that the proved
reserve related to the Black Warrior Basin assets as of Dec 31,
2012, was roughly 97.0 billion cubic feet.
In order to reflect the property sale, Energen has made an
adjustment of 0.4 million barrels of oil equivalents (MMBOE) in
its fourth-quarter production guidance, thereby bringing the
full-year 2013 projection to 25.7 to 26.1 MMBOE. In the fourth
quarter of 2013, Energen will reflect a non-cash gain on the
transaction of approximately $33 million.
Birmingham, AL-based Energen is an independent oil and gas
exploration and production firm. Through its wholly owned
subsidiary, Energen Resources Corp., the company had
approximately 750 million barrels of oil-equivalent proved,
probable, and possible reserves at year-end 2012.
These all-domestic reserves are located mainly in the Permian
and San Juan basins. Moreover, in the U.S., the company involves
in acquisition and development of oil and gas properties.
The company currently retains a Zacks Rank #2 (Buy), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
Meanwhile, one can look at utility gas distribution companies
Linn Co, LLC
Matador Resources Co.
Resolute Energy Corp.
). All the firms sport a Zacks Rank #1 (Strong Buy).
ENERGEN CORP (EGN): Free Stock Analysis
LINN CO LLC (LNCO): Free Stock Analysis
MATADOR RESOURC (MTDR): Free Stock Analysis
RESOLUTE ENERGY (REN): Free Stock Analysis
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