Stock in Focus: Energen Corporation (EGN)

Company Profile:

Energen Corporation, through its subsidiary, Energen Resources Corporation, engages in the exploration, development, and production of oil, natural gas liquids, and natural gas. The company has operations within the Midland Basin, the Delaware Basin, and the Central Basin Platform areas of the Permian Basin in west Texas and New Mexico. As of December 31, 2017, it had a total proved reserves of 444 million barrel of oil equivalent. The company was founded in 1929 and is headquartered in Birmingham, Alabama.

Recent News:

OnDec. 3, 2018, Moody’s Investors Service upgraded Diamondback Energy, Inc.’s (Diamondback) Corporate Family Rating (CFR) to Ba1 from Ba2, Probability of Default Rating (PDR) to Ba1-PD from Ba2-PD.

On Nov. 27, 2018, Diamondback Energy, Inc. (FANG) and Energen Corporation (EGN) announced that all proposals necessary for the parties’ pending merger were approved by the stockholders of Diamondback and the shareholders of Energen.

Energen had adjusted income in 3Q18 of $93.5 million, or $0.96 per diluted share. This compares with adjusted income in 3Q17 of $19.2 million, or $0.20 per diluted share.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

EGN’s strengths can be seen in its strong profitability and robust solvency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator, the RSI stands at 48.38 with positive bias. We rate Energen Corporation (EGN) a STRONG BUY.

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