How Much Did Energen’s Stock Fall after 4Q15 Earnings?



Energen Corporation’s stock price falls following 4Q15 earnings

Energen Corporation (EGN) announced its 4Q15 earnings on February 11, 2016, after the market close. On the day of the earnings release, Energen’s stock price fell 5.8% to close at $24.67. In the next day’s trading session, EGN’s stock price fell a whopping 15.9% but recovered somewhat during the day to close at $22.91, which was a 7.1% fall from the previous day’s close. In the six trading sessions leading up to the earnings release, EGN’s stock price fell ~27%, mainly due to the ~17% drop in crude oil prices during the same period.

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EGN in a falling trend

Falling crude oil and natural gas prices over last year have dragged the entire upstream sector into a falling trend. As seen in the above chart, EGN is also in a falling trend and has shown a pattern of lower highs and lower lows.

EGN’s 2015 relative performance

In 2015, EGN underperformed S&P 500 (SPY) upstream companies and fell ~36%. Occidental Petroleum (OXY), Pioneer Natural Resources (PXD), and EOG Resources (EOG) fell ~13%, ~16%, and ~23%, respectively.

EGN’s performance after past earnings misses

In the last year, there were two occasions, 2Q15 and 1Q15 earnings, when EGN missed earnings expectations. EGN reported its 2Q15 earnings after the market close on August 6, 2015. In 2Q15, excluding the one-time items, EGN reported earnings per share of $0.10, $0.12 lower than the consensus estimate of $0.22 per share. Following the worse-than-expected earnings, EGN’s stock price fell ~5% in the next session.

After 1Q15 earnings, Energen’s stock price fell ~4% after the company missed the consensus earnings estimate by $0.01 per share.


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