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Energen downgraded on valuation at Imperial Capital

Published 08/08/2018, 02:59 PM
© Reuters.  Energen downgraded on valuation at Imperial Capital
  • Energen (EGN -3.2%) is lower after Imperial Capital downgrades shares on valuation to In-Line from Outperform with a $74 price target.
  • The firm thinks EGN deserves credit for properly managing its assets in the Permian, where 60% of its production mix is oil, which positions the company very well to achieve a 28% compounded annual production growth rate, and management is backed by a strong balance sheet at ~1x net debt to EBITDA, but the stock also appears to be fairly valued, with the share price accurately reflecting that EGN is "doing all the right things."
  • When reporting Q2 results, EGN lifted its production guidance midpoint by ~5% for the full year, as management expects multiple wells to come online during Q3.
  • Now read: Daily Insider Ratings Round Up 7/9/18


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