James T. McManus II, Chairman, President and Chief Executive Officer of Energen Corporation (NYSE: EGN), presented today at EnerCom’s The Oil & Gas Conference® 20.
Energen Corporation is an oil and gas exploration and production company with headquarters in Birmingham, Alabama. At year-end 2014, the company had 1.1 billion barrels of oil-equivalent proved, probable, and possible reserves and another 2.2 billion barrels of oil-equivalent contingent resources. These all-domestic reserves and resources are located primarily in the Permian Basin in west Texas.
Energen Corporation reported Q2’15 production of 63,800 BOEPD, exceeding guidance midpoint by 8%. Quarterly production grew by 27% compared to the same period last year. Q4’15 volumes are estimated at 68,000 BOEPD – more than 6% above current levels.
During the company’s breakout session, management was asked the following questions:
- Have you been able to hire qualified personnel during the downturn?
- In the Lower Spraberry, especially in Midland, Martin and Howard counties, and in the Wolfcamp A and B, can you talk more about the capital budget there in 2016? Are you testing the Middle Spraberry?
- You’ve talked about drilling six vertical wells in the Delaware Basin, do you want to hold all of the zones there? The Cline formation is pretty challenging now, do you plan to make the Cline more cost efficient?
- In the Midland Basin, are you looking at M&A activities and do you have a certain number for an acquisition price?
- Can you comment on the San Juan Basin? Under a certain scenario, if you don’t have expected results, would you consider selling it?
- Under a different situation with oil prices, what would be the strategy for your financing options, such as stock repurchases or even issuing new stocks?
- Your G&A number seems relatively high, do you have some unusual expenses?
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