Energen to sell natural gas utility to Laclede Group for $1.6B Energen Corporation (EGN) announced that it has signed a definitive stock purchase agreement to sell its natural gas utility business, Alabama Gas Corporation, to The Laclede Group (LG). The value of the transaction is $1.6B, subject to customary closing adjustments, and is comprised of $1.28B in cash and approximately $320M of debt. Energenís after-tax proceeds are estimated to be $1.1B, after consideration of accelerated intangible drilling costs. Energen plans to use cash proceeds from the transaction to immediately reduce short-term indebtedness, thereby enhancing its financial capacity to potentially accelerate the pace of drilling and development of its Permian Basin assets in 2015 and beyond.
Laclede downgraded to Underweight from Neutral at JPMorgan JPMorgan downgraded Laclede to Underweight saying rate case uncertainty in 2017 and the recent appreciation in shares limit upside potential going forward. the firm cut its price target for shares to $52 from $55.