Corvex Nominates Four Directors to Energen's Board

Feb 2 2018 | 7:27pm ET

Hedge fund Corvex Management LP kicked off its to Energen Corp. this week with the activist investor nominating four candidates to the oil and gas producer’s board of directors as it pushes for a sale of the company.

The move by the hedge fund, which is the largest shoreholder of Energen, owning about 9.9% of Energen’s shares, is the latest step in its campaign to force a sale—which, it hopes, will bolster a stock price that has lagged its peers, according to a statement by the company.

The quartet nominated by Corvex on Wednesday includes Jonathan Cohen, the founder of Atlas Energy and Atlas Pipeline Partners, which were respectively sold to Chevron Corp in 2011 for $4.3 billion and Targa Resources Corp. in 2015 for $7.7 billion, according to its statement.

Energen’s share price of $52.23 is 6.1% below the $55.62 it traded at on May 30, the day before Corvex said publicly it wanted the Birmingham, Ala.-based company to sell itself.

Energen’s own filing said that it was committed to acting in the best interest of the company and all its shareholders. It also estimated a 34% rise in its 2017 production.

Energen said in a release that New York-based Corvex had pushed a “singularly-focused agenda” to sell the company regardless of market conditions and the producer’s improving performance.

Activism in the U.S. oil and gas sector has increased as investors seek to boost the value of energy companies weighed down by slumping crude prices after a mid-2014 peak.

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