On Wednesday shares of, Energen Corporation (NYSE: EGN) green +0.69% in trading session and finally closed at $62.70. The firm after opening the first trading session at $62.02 Over the one year trading period, the stock has an above price of $64.20 and it’s below is recorded at $46.16. The company has a market cap of $6.107B. The company most recent volume stood at 1,104,652 shares as compared to its average volume of 1,078,431 shares.
Energen Corporation (EGN) recently reported financial and operating results for the fourth quarter ended December 31, 2017.
FINANCIAL AND OPERATING HIGHLIGHTS
STRONG EXECUTION DRIVES STRONG 4FIRST QUARTER7 AND CY17
- 4FIRST QUARTER7 production of 97.4 mboepd exceeded guidance by 14% and surpassed 3FIRST QUARTER7 production by 20%.
- 4FIRST QUARTER7 oil production of 58.1 mbopd exceeded guidance by 8% and surpassed 3FIRST QUARTER7 oil production by 19%.
- CY17 production of 76.1 mboepd grew 39% from CY16 on strength of Generation 3 completions and greater activity level.
- 4FIRST QUARTER7 adjusted EBITDAX of $241 mm grew 39% from 3FIRST QUARTER7 and beat internal expectations by 24%.
- Per-unit LOE and net SG&A beat guidance midpoints by 10% and 9%, respectively.
- Additions in 2017 replaced production by ≈415%, driving 40% raise in YE17 proved reserves.
- CY17 proved developed F&D cost totaled $8.38/boe.
- Updated inventory supports net undeveloped resource potential of 2.7B BOE.
GEN 3 PATTERN WELLS CONTINUE TO GENERATE OUTSTANDING RESULTS
- Gen 3 performance drives strong IRRs through higher EURs and/or acceleration.
- Updated type curves support superior economics.
- 25 gross/21 net wells turned to production in 4FIRST QUARTER7; 64% were multi-zone pattern wells completed in batches.
- New wells reflect outstanding 24-hr. and 30-day IP rates in Midland and Delaware basins; 4FIRST QUARTER7 Delaware Basin wells generated average 24-hour IP rate of 402 boepd/1,000’ and average 30-day IP rate of 272 boepd/1,000’.
BRINGING VALUE FORWARD IN CY18
- Drilling and development capital (including facilities) estimated to range from $1.1B to $1.3B.
- Yearly production estimated to range from 91.5-98.5 mboepd.
- Capital plans include drilling about 130 gross/120 net horizontal wells and completing about 123 gross/113 net horizontal wells (including 30 gross/28 net DUCs at YE17).
3-YEAR OUTLOOK (2018-2020) LEVERAGES SUPERIOR ECONOMICS TO FURTHER DRIVE SHAREHOLDER VALUE
- Yearlyoil production estimated to grow at 3-year CAGR of ≈28%.
- Yearly production estimated to reach ≈160 mboepd in 2020, with 4Q exit rate of ≈170 mboepd.
- Drilling and development capital estimated to raise to $1.6-$1.8B in 2020.
- YE20 EBITDAX estimated to be ≈$1.6B (3-year CAGR: ≈35%).
- Balance sheet ensures capital flexibility as net debt to EBITDAX predictable to remain between 1.0x-1.5x.
The average true range of Energen Corporation’s (EGN) is recorded at 1.94 and the relative strength index of the stock stands 63.87. The stock price is going above to its 52 week low with 35.83% and lagging behind from its 52 week high with -1.74%. Analyst recommendation for this stock stands at 2.20. A look on the firm performance, its monthly performance is 8.01% and a quarterly performance of 5.75%. The stock price is trading upbeat from its 200 days moving average with 16.37% and up from 50 days moving average with 11.57%.
4FIRST QUARTER7 Operations Update
In 4FIRST QUARTER7 Energen turned to production 20 gross (16 net) wells in the Midland Basin and 5 gross (5 net) wells in the Delaware Basin. Their early performance continues to reflect outstanding results from Gen 3 frac designs; 64 percent were multi-zone pattern wells completed in batches. During the quarter, Energen operated 6 horizontal drilling rigs and 2 frac crews.
4FIRST QUARTER7 Financial Results
For the 3 months ended December 31, 2017, Energen stated GAAP net income from all operations of $262.4M, or $2.68 per diluted share. Adjusting for a non-cash loss on mark-to-market derivatives of $(37.5M); a one-time, non-cash tax benefit of $240.1M resulting from the Tax Cuts and Jobs Act; and miscellaneous non-cash items totaling $(1.4)M: Energen had adjusted net income in 4FIRST QUARTER7 of $61.3M, or $0.63 per diluted share. This compares with an adjusted net loss in 4FIRST QUARTER6 of $(26.6M), or $(0.27) per diluted share. [See “Non-GAAP Financial Measures” startning on p. 10 for more information and reconciliation.]
Energen’s adjusted 4FIRST QUARTER7 net income of $61.3M exceeded internal expectations by $28.6M largely Because of better-than-predictable production; lower-than-predictable depreciation, depletion and amortization expense (DD&A), lease operating expense (LOE), and net salaries and general and administrative expense (SG&A); and higher realized oil prices.
CY17 Financial Results
For CY17, Energen stated GAAP net income from all operations of $306.8M, or $3.14 per diluted share. Adjusting for a non-cash items, Energen had adjusted net income in CY17 of $73.6M, or $0.75 per diluted share. This compares with an adjusted net loss in CY16 of $(128.8M), or $(1.36) per diluted share. Energen’s adjusted EBITDAX in CY17 totaled $653.0M – over double the company’s adjusted EBITDAX in CY16 of $293.2M.
(EGN) has price-to-cash ratio of 15692.24 and price to sale ratio of 6.53. The company net profit margin is 31.90% and gross profit margin is 93.80%. A look on the firm performance, its monthly performance is 8.01% and a quarterly performance of 5.75%. The stock price is moving up from its 20 days moving average with 5.67% and isolated positively from 50 days moving average with 11.57%.