Keith Meister’s Corvex Management Lp Opened Huge Energen Corp Position

March 8, 2018 - By Adrian Mccoy

 Keith Meister's Corvex Management Lp Opened Huge Energen Corp Position

Investors sentiment decreased to 1.02 in 2017 Q3. Its down 0.19, from 1.21 in 2017Q2. It dropped, as 34 investors sold Energen Corporation shares while 86 reduced holdings. 41 funds opened positions while 81 raised stakes. 89.38 million shares or 7.87% less from 97.02 million shares in 2017Q2 were reported.

Macquarie Group Ltd has 0.01% invested in Energen Corporation (NYSE:EGN). Amalgamated Bancshares accumulated 17,772 shares. Fmr Ltd has 0% invested in Energen Corporation (NYSE:EGN) for 689,456 shares. Pennsylvania-based Nationwide Fund Advsr has invested 0.04% in Energen Corporation (NYSE:EGN). Enterprise Fincl reported 24 shares stake. Bb&T Ltd Liability Com holds 0% of its portfolio in Energen Corporation (NYSE:EGN) for 3,774 shares. Legal & General Public Limited accumulated 0.01% or 123,271 shares. Maryland-based Counselors Of Maryland Ltd Liability has invested 0.01% in Energen Corporation (NYSE:EGN). Bluecrest Cap Mngmt stated it has 0.24% of its portfolio in Energen Corporation (NYSE:EGN). Moreover, Marshall Wace Ltd Liability Partnership has 0.01% invested in Energen Corporation (NYSE:EGN). Lombard Odier Asset (Usa) Corporation reported 171,440 shares. Chicago Equity Partners Limited Co invested in 23,330 shares. American Interest Group Inc Inc has 198,845 shares for 0.04% of their portfolio. Guggenheim Cap Limited Liability Com has 0% invested in Energen Corporation (NYSE:EGN). Qs Investors Lc accumulated 9,500 shares or 0% of the stock.

The New Keith Meister’s Corvex Management Lp Holding in Energen Corp

Corvex Management Lp reported SC 13D/A form with the SEC for Energen Corp. Access it here: 000119312518073762. As reported by Keith Meister’s Corvex Management Lp, the filler owns 9.9% or 9,710,474 shares of the Utilities & Telecommunications–company.

Energen Corp stake is new for [reportingPerson]. Date of activity: March6, 2018. This shows Keith Meister’s Corvex Management Lp’s positive view for Energen Corp. For a hedge fund managing $8.18 billion in assets and having 21+ experts this is interesting position.

The hedge fund is investor in the Utilities & Telecommunications sector. In the manager’s last 13-F, we saw 11% of Keith Meister’s Corvex Management Lp’s portfolio is in the sector.

Reasons Why Keith Meister’s Corvex Management Lp Bought – Energen Corp Stock

Purpose of Transaction

On March6, 2018, Corvex and the Issuer entered into a Letter Agreement(the “Letter Agreement”). Pursuant to the terms of the Letter Agreement, the Issuer agreed as follows: (i)concurrently with the execution of the Letter Agreement, the Board shall expand the size of the Board from nine to 11 membersand not increase the size of the Board beyond 11 members at any time prior to the Issuer’s 2019 annual meeting of shareholders (the “2019 Annual Meeting”) and (ii)appoint Jonathan Z. Cohen and Vincent J. Intrieri (the “NewDirectors”) as members of the Board to fill the two vacancies created by the Board expansion, each with terms to expire at the Issuer’s 2018 annual meeting of shareholders (the “2018 Annual Meeting”). In addition, the Issueragreed to include the New Directors in the slate of nominees recommended by the Board in the proxy statement and proxy card relating to the 2018 Annual Meeting, with Mr.Cohen nominated to serve in the class of directors with terms expiring atthe Issuer’s 2021 annual meeting of shareholders (the “2021 Annual Meeting”) and Mr.Intrieri nominated to serve in the class of directors with terms expiring at the Issuer’s 2020 annual meeting of shareholders (the“2020 Annual Meeting”), and the Issuer shall recommend that the Issuer’s shareholders vote for the election of the New Directors. Further, the Issuer agreed that four directors will stand for election at the 2019 Annual Meeting, fourdirectors will stand for election at the 2020 Annual Meeting, three directors will stand for election at the 2021 Annual Meeting and, other than as set forth in the Letter Agreement, the Issuer will not change or seek to change the classes on whichthe directors (or their replacements) serve. The Issuer also agreed to hold the 2018 Annual Meeting no later than May31, 2018.

Pursuant to the Letter Agreement, as long as Corvex continues to beneficially own 5% or more of the Issuer’soutstanding Shares, if there is a vacancy or vacancies on the Board, for any reason, as a result of the removal or resignation of one or both of the New Directors or any other event resulting in one or both of the New Directors no longer being adirector prior to the Issuer’s mailing of definitive proxy materials with respect to the 2019 Annual Meeting, then, provided José Maria Alapont satisfies applicable director criteria at the time, Corvex will be entitled to designate himto fill such vacancy, or if Mr.Alapont is no longer able or willing to serve as a director, Corvex may designate another individual or two other individuals reasonably acceptable to the Issuer if there are two vacancies to replace the NewDirector or New Directors. In addition, the Issuer agreed that the New Directors will each be added to one or more committees of the Board and if any new committees or subcommittees of the Board are formed, the Board shall offer membership on suchcommittee or subcommittee to the New Directors.

Corvex agreed in the Letter Agreement to the following: (i)to cause all Shares owned of record orbeneficially by it and its affiliates to be present for quorum purposes at the 2018 Annual Meeting, and (ii)to vote such Shares at the 2018 Annual Meeting in favor of each director candidate nominated by the Issuer, in favor of theratification of the appointment of PricewaterhouseCoopers LLP as the Issuer’s independent registered public accounting firm to audit the Issuer’s financial statements for calendar year 2018, and in favor of any “say-on-pay”proposal. In addition, Corvex agreed to promptly cause the appeal captioned Corvex Management LP, Appellant, v. Energen Corporation, Appellee, docket No.1170200, pending before the Supreme Court of Alabama to be voluntarily dismissedwith prejudice. Further, Corvex agreed concurrently with the execution of the Letter Agreement to cause Corvex Master Fund LP to withdraw the Notice of Intent to Bring Business Before, and Nominate Individuals for Election as Directors at, the2018 Annual Meeting of Stockholders of Energen Corporation submitted by Corvex Master Fund LP to the Issuer on January31, 2018.

The foregoingdescription of the Letter Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Letter Agreement, which is incorporated by reference as Exhibit 13 and is incorporated herein byreference.

On March6, 2018, Messrs. Cohen and Intrieri were appointed to the Board in connection with the Letter Agreement. Mr.Cohen wasappointed to the Board’s Compensation Committee and Mr.Intrieri was appointed to the Board’s Audit Committee.

On March7, 2018,Corvex and the Issuer jointly issued a press release to announce that they have entered into the Letter Agreement.

The Reporting Persons intend to reviewtheir investment in the Issuer on a continuing basis and may from time to time and at any time in the future depending on various factors, including, without limitation, the Issuer’s financial position and strategic direction, actions taken bythe Board, price levels of the Shares, other investment opportunities available to the Reporting Persons, conditions in the securities market and general economic and industry conditions, take such actions with respect to their investments in theIssuer as they deem appropriate, which may include further discussions with the Issuer regarding matters previously disclosed in this Schedule 13D, as well as seeking direct discussions with, and changes or additions to, the Board. These actions mayinclude, without limitation: (i)acquiring additional Shares and/or other equity, debt, notes, other securities, or derivative or other instruments that are convertible into Shares, or are based upon or relate to the value of the Shares or theIssuer (collectively, “Securities”) in the open market or otherwise; (ii)disposing of any or all of their Securities in the open market or otherwise; (iii)engaging in any hedging or similar transactions with respect to theSecurities; or (iv)proposing or considering one or more of the actions described in subsections (a)through (j)of Item4 of Schedule 13D.

Energen Corp Institutional Sentiment

Filings show 278 investors own Energen Corp. The ownership in Q3 2015 is very high, at Infinity of the outstanding shares. This is increased by 14574213. 84575187 were owned by these investors. 19 funds opened new Energen Corp stakes, 125 increased positions. There were 43 that closed positions and 82 reduced them.

Scout Investments Inc is an investor bullish on Energen Corp, owning 498242 shares as of Q3 2015 for 0.66% of its portfolio. Ronald Blue & Company Llc owns 111065 shares or 0.29% of its portfolio. NY Capital Management Associates have 0.61% of its portfolio for 8000 shares. Further, Corbyn Investment Management Inc reported stake worth 2.24% of its portfolio. The TX Avalon Advisors Llc owns 6549 shares. Energen Corp is 0.01% of its portfolio.

Business Profile

Energen Corporation is an oil and natural gas exploration and production company. The Company is engaged in the exploration, development and production of oil and natural gas properties and natural gas. Its operations are conducted through subsidiary, Energen Resources Corporation and occur within the Midland Basin, the Delaware Basin and the Central Basin Platform areas of the Permian Basin in west Texas and New Mexico. The Company is focused on increasing its oil, natural gas liquids and natural gas production and proved reserves through active development and/or exploratory programs in the Permian Basin. As of December 31, 2016, oil, natural gas liquids and natural gas represented approximately 60%, 20% and 20% of its reserves. As of December 31, 2016, its development activities added approximately 327 million barrels of oil equivalent (MMBOE) of reserves from the drilling of 623 gross development, exploratory and service wells and 73 well recompletions and pay-adds.

SEC Form 13D.

The stock increased 1.42% or $0.79 during the last trading session, reaching $56.5. About 1.48M shares traded or 54.55% up from the average. Energen Corporation (NYSE:EGN) has risen 35.21% since March 8, 2017 and is uptrending. It has outperformed by 18.51% the S&P500.

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 market cap of $5.50 billion. It has activities within the Midland Basin, the Delaware Basin, and the Central Basin Platform areas of the Permian Basin in west Texas and New Mexico. It has a 17.99 P/E ratio.

Energen Corporation (NYSE:EGN) Ratings Coverage

Among 38 analysts covering Energen Corporation (NYSE:EGN), 26 have Buy rating, 2 Sell and 10 Hold. Therefore 68% are positive. Energen Corporation has $85 highest and $30 lowest target. $62.23’s average target is 10.14% above currents $56.5 stock price. Energen Corporation had 123 analyst reports since July 21, 2015 according to SRatingsIntel. The stock of Energen Corporation (NYSE:EGN) earned “Hold” rating by BMO Capital Markets on Monday, February 26. The stock of Energen Corporation (NYSE:EGN) has “Overweight” rating given on Friday, May 13 by JP Morgan. Seaport Global downgraded Energen Corporation (NYSE:EGN) on Friday, December 9 to “Neutral” rating. Topeka Capital Markets maintained Energen Corporation (NYSE:EGN) rating on Friday, May 6. Topeka Capital Markets has “Buy” rating and $52 target. Imperial Capital maintained the stock with “Outperform” rating in Wednesday, February 21 report. The stock of Energen Corporation (NYSE:EGN) earned “Neutral” rating by Citigroup on Monday, July 18. BMO Capital Markets maintained Energen Corporation (NYSE:EGN) rating on Friday, November 10. BMO Capital Markets has “Hold” rating and $65.0 target. The stock has “Buy” rating by Wunderlich on Tuesday, February 16. The firm has “Outperform” rating given on Tuesday, March 22 by iBERIA Capital Partners. Canaccord Genuity initiated Energen Corporation (NYSE:EGN) on Monday, September 19 with “Buy” rating.

More important recent Energen Corporation (NYSE:EGN) news were published by: Streetinsider.com which released: “Form SC 13D/A ENERGEN CORP Filed by: Corvex Management LP” on February 13, 2018, also Businesswire.com published article titled: “Energen Appoints Two New Independent Directors”, Seekingalpha.com published: “Energen to add directors, business review in agreement with Corvex” on March 08, 2018. More interesting news about Energen Corporation (NYSE:EGN) was released by: Streetinsider.com and their article: “Form 8-K ENERGEN CORP For: Mar 06” with publication date: March 07, 2018.

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