Investment idea generation.


Our thoughts.

Energen: Finally Some Activist Progress

Things have been quiet on the activist investing front, somewhat, other than Bill Ackman’s continued struggles and finally abandoning his Herbalife short. Then there’s David Einhorn’s steady decline. Corvex Management, ran by Carl Icahn protege Keith Meister, has been running a quiet portfolio,

Corvex’s biggest holding, Energen, has settled. Corvex is trying to carve out a niche in the oil and gas space since the fallout in oil prices during 2015, having taken on Williams Companies a couple years ago. Energen has caved to Crovex, agreeing to name two new board nominees and to review its businesses - Corvex is pushing for a company sale. Energen will add Carl Icahn associate Vincent Intrieri. Corvex owns 10% of Energen.

Energen, operating primarily in the Permian Basin, has fought Corvex for a year. Energen is now open to a possible sale and will review its business plan and strategic alternatives. Should we be optimistic this time around? Energen ended a strategic review just nine months ago and decided to stick with its business plan.