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You’d be forgiven for not knowing what Energen is. The Birmingham-based oil drilling company doesn’t exactly show off. But today, the “exploration and production” company announced a plan to significantly expand their American drilling operations in a conference call with slides available here.
Energen’s plan is to spend nearly $800 million on expanding their drilling capability, building 96 wells in the year, including 83 totally new wells and 13 replacement wells. Despite the recent drop in its stock price, things seem to be looking up for Energen. The company is in the process of recovering value from a downward spike last year (check out the 5-year trend for the best big picture).
What’s in store for Energen? Besides their planned production increase of just over 20%, the corporation is planning to hedge their bets through market price negotiation called collaring (check out an explanatory article from someone who knows what they’re talking about better than I do here).
Given the recent, in a sort of cosmic sense, prosperity Birmingham has experienced, I think this shows that our city’s boom will continue!