UPDATE: KeyBanc Capital Markets Downgrades Energen Corporation to Hold, Reiterates $55 PT
In a report published Wednesday, KeyBanc Capital Markets downgraded its rating on Energen Corporation (NYSE: EGN) from Buy to Hold, and reiterated its $55.00 price target.
KeyBanc Capital Markets noted, “Continuing operational issues, including infrastructure delays, higher water handling costs, as well as dry holes and uneconomic wells, have left us less confident in the Company's ability to quickly and cost effectively develop its Permian assets. While we are still believers that there is significant embedded NAV upside from the development potential of the Company's acreage prospective for the Wolfcamp and Cline shales, the pace of development has been slower than we previously anticipated. We now believe it unlikely EGN will have enough data/well results to definitively prove up its Wolfcamp/Cline potential before 2H13.”
Energen Corporation closed on Tuesday at $49.58.
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