Energen Adds Oil Swaps, Collars in 2017
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BIRMINGHAM, Ala.--(BUSINESS WIRE)-- Energen Corporation (NYSE: EGN) today announced that it has taken advantage of continued increases in 2017 oil prices to help protect future returns and to retain some upside exposure to higher oil prices.
Energen recently added swaps for 1.6 million barrels of its 2017 oil production at an average NYMEX price of $50.55 per barrel; the company also recently entered into three way collars for 3.0 million barrels of its 2017 oil production at an average call price of $61.03 per barrel, an average put price of $45 per barrel, and an average short put price of $35 per barrel. This brings the company’s total oil volumes hedged in 2017 to 7.1 million barrels.
Energen’s total oil hedge position for 2017 is as follows:
| Oil | 2017 Hedge Volumes¹ | Avg. NYMEX Price | |||||
| Swaps | 4.1 mmbo | $ 47.97 per barrel | |||||
| Three way Collars² | 3.0 mmbo | ||||||
| Call Price | $ 61.03 per barrel | ||||||
| Put Price | $ 45.00 per barrel | ||||||
| Short Put Price | $ 35.00 per barrel | ||||||
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¹ |
Hedges are distributed equally throughout the year by month |
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² |
When the NYMEX price is above the call price, Energen receives the call price; when the NYMEX price is between the call price and the put price, Energen receives the NYMEX price; when the NYMEX price is between the put price and the short put price, Energen receives the put price; and when the NYMEX price is below the short put price, Energen receives the NYMEX price plus the difference between the put price and the short put price. |
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The company also has added 7.2 Bcf of Permian Basin-specific contracts to its 2017 natural gas hedge position at an average contract price of $2.85 per Mcf. This brings Energen’s total natural gas hedge position in 2017 to 10.8 Bcf of basin-specific gas at an average contract price of $2.82 per Mcf. Assuming a $0.15 per Mcf differential, the company’s NYMEX-equivalent price for its 2017 natural gas hedges is $2.97 per Mcf.
Energen Corporation is an oil and gas exploration and production company with headquarters in Birmingham, Alabama. At year-end 2015, the company had 355 million barrels of oil-equivalent proved reserves and another 2.8 billion barrels of oil-equivalent probable and possible reserves and contingent resources. These all-domestic reserves and resources are located primarily in the Permian Basin in west Texas. For more information, go to www.energen.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160526006301/en/
Energen Corporation
Julie S. Ryland, 205-326-8421
Source: Energen Corporation
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