Energen Gets New VP of Drilling
U.S energy holding company Energen Corporation’s (EGN) board of directors elected Davis E. Richards to head drilling and completion operations at the company’s oil and gas exploration and production unit. The appointment is effective from Oct 1, 2013. The move is in sync with Energen’s current focus on the exploration and development of its extensive oil and natural gas liquids assets in the Permian Basin.
Energen’s appointment of seasoned driller Richards to the newly created position of Vice President of Drilling and Completions is a prudent move. He brings to Energen extensive knowledge of horizontal drilling, shale well completions, recompletion and work-over programs, and cost control.
Richards has over 35 years of experience in drilling, completion, reservoir, and production operations. Moreover, he has valuable working experience through his association with business giants such as the erstwhile El Paso Corp. which was later acquired by Kinder Morgan, Inc. (KMI).
Birmingham, Alabama-based Energen is an independent oil and gas exploration and production company engaged in the acquisition, exploration, and development of oil and gas in the U.S. The company also purchases, distributes and sells clean-burning, energy-efficient natural gas to the commercial and residential customers. Energen has roughly 750 million barrels of oil equivalent proved reserves, the majority of which is located in the Permian and San Juan basins.
Going forward, we believe that Energen will be able to generate sufficient cash flows for its shareholders in the coming years, which will likely be backed by strong operating performances and good management decisions.
Earlier, higher production for natural gas and natural gas liquids (NGL) has positively benefited the company's second quarter 2013 earnings.
Energen currently retains a Zacks Rank #2 (Buy). Certain other domestic energy firms like Matador Resources Co. (MTDR) and Stone Energy Corp. (SGY) are expected to significantly outperform the equity market in the next one to three months. All the three stocks currently hold a Zacks Rank #1 (Strong Buy).
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