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Energen Gets New VP for E&P Unit

Zacks Equity Research

U.S. energy holding company Energen Corporation’s (EGN) board of directors elected David Bolton as Vice President – Land, at its oil and gas exploration and production unit. Bolton succeeds Paul C. Rote, who retired after serving the company for some 15 years. 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 David to the position of Vice President – Land is a prudent move. Bolton has been working in the exploration and production industry since 1990. He brings to Energen extensive knowledge and experience acquired through his earlier stint in Chesapeake Energy Corporation (CHK) where he served as Southern Division Land Director. Since May 2010, Bolton coordinated all of Chesapeake’s Land activities in the Permian District as well as the South Texas, Haynesville, Barnett, and Mid-continent districts and in New Ventures for the Western United States.

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 commercial and residential customers.

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 had positively benefited the company's 2013 earnings.

Energen currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can consider better-ranked players in the energy sector like Valero Energy Corporation (VLO), and Helmerich & Payne, Inc. (HP). Both stocks sport a Zacks Rank #1 (Strong Buy).


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Read the Full Research Report on CHK
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