Energen sticks to plan amid pressure from Corvex


Shutterstock photo

UPDATE 1-Energen sticks to plan amid pressure from Corvex


(Adds details from press release, background)
    By Michael FlahertyJune 19 (Reuters) - Energen Corp <EGN.N> said on Monday its
board had unanimously decided to stick to its business plan,
less than a month after activist investor Corvex Management LP
disclosed a large stake in the oil and gas producer and demanded
that it explore a sale.
    The Birmingham, Alabama-based company, which has a large
concentration of its assets in the Permian Basin, also raised
its 2017 production forecast by 5.9 percent to 70,200 barrels of
oil equivalent per day. [nBw3w84Z8a]
    Corvex, run by Carl Icahn protege Keith Meister, disclosed a
5.5 percent stake last month and said the fund had discussed its
views with the company. [nL3N1IX3T2]
    Energen said on Monday it had engaged J.P. Morgan and Tudor
Pickering Holt & Co. to review strategic alternatives but that,
in the end, it decided to stick with its own business plan.
    "This examination took into consideration input from
numerous shareholders and analyzed Energen's top-tier assets,
its improving execution, and the broader macroeconomic and
commodity price environment," the company said in its statement.
    Corvex did not return a call seeking comment on Monday.
    Whether Corvex accepts the $5 billion company's decision or
ramps up pressure further is unclear.

 (Additional reporting by Ahmed Farhatha in Bengaluru; Editing
by Sriraj Kalluvila and James Dalgleish)
 ((michael.flaherty@thomsonreuters.com; 646-223-6116; Reuters
Messaging: michael.flaherty.thomsonreuters.com@reuters.net))

Keywords: ENERGEN CORVEX/ (UPDATE 1)



This article appears in: World Markets , Stocks
Referenced Symbols: EGN


More from Reuters

Subscribe






See headlines for EGN

Follow on:








Research Brokers before you trade

Want to trade FX?