U.S. energy holding company,
) has entered into a Purchase and Sale (PSA) deal with an
ATMOS ENERGY CP (ATO): Free Stock Analysis
ENERGEN CORP (EGN): Free Stock Analysis
AGL RESOURCES (GAS): Free Stock Analysis
NJ RESOURCES (NJR): Free Stock Analysis
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Per the agreement, Energen will divest its Ala.-based Black
Warrior Basin coalbed methane properties for a consideration of
roughly $160.0 million, including general closing adjustments.
The company expects the contract - with an effective date of Jul
1 - to close by the first half of Oct.
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 at 25.7 to 26.1 MMBOE
Last month, Energen reported earnings per share of 66 cents per
share, beating the Zacks Consensus Estimate of 61 cents, favored
by improved realized oil and gas prices.
Birmingham, Ala.-based Energen is an independent oil and gas
exploration and production firm. Moreover, in the U.S., the
company involves in acquisition and development of oil and gas.
The company currently retains a Zacks Rank #3 (Hold), 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 like
AGL Resources Inc.
Atmos Energy Corporation
New Jersey Resources Corp.
). All the firms sport a Zacks Rank #2 (Buy).