Energen Corporation (EGN)

[eFinanceMarkets]

Energen boosts production view, ends strategic review

Energen (EGN -4.1%) is lower despite raising its FY 2017 production outlook and ending its strategic review.

Citing the strength of results from wells completed with its Generation 3 frac design, EGN raises its total 2017 production estimate to 70.2K boe/day, or 5.9% higher than prior guidance, which would bring its Y/Y production growth to 29% vs. a prior outlook for a 21% gain.

Drilling and development capital spending guidance for the full year remains unchanged at $850M-$900M.

Citing the strong performance, EGN's board says continuing to execute its current business plan is the best path to enhancing shareholder value.