UPDATE: Wunderlich Securities Initiates Energen at Buy on Valuation, Outlook

Wunderlich Securities initiated coverage on Energen (NYSE: EGN) with a Buy rating and a $56 price target.

Wunderlich Securities said, "Energen has assets in the Permian, San Juan, and Black Warrior basins. EGN was in the Permian early and is well positioned to capture multiple resource plays currently being delineated in the region. We find EGN's solid management team and its strong balance sheet very assuring in these volatile times. EGN ended 2011 with proved reserves of 343 mmboe with estimated unproved reserves of 598 mmboe. EGN has plenty of running room and we believe EGN is attractively priced for the growth ahead."

Energen closed at $45.30 on Tuesday.

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