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Energen Corporation (NYSE: EGN) said today that severe winter weather in West Texas that began November 23, 2013, has negatively affected its Permian Basin operations. The magnitude of this unanticipated weather event could result in Energen’s 2013 production falling below the Company’s guidance range of 23.4-23.8 MMBOE (see October 30, 2013, earnings release).
While all areas in the Permian Basin were affected to some degree, the Company’s Midland Basin operations took the brunt of the ice storm’s immediate impacts, including widespread power outages, trucking curtailments (water and oil), limited access to production and drilling facilities, and frozen facilities. Roads are now clear and rigs are back working, but power has not yet been restored to all producing areas.
In addition, it may be several weeks before the more indirect impacts of the storm (e.g., construction delays, repairs as the Company returns to routine operations, etc.) can be determined. Energen expects to update its 2013 guidance once the storm’s impacts can be more fully assessed.
Energen Corporation is an oil and gas exploration and production company with headquarters in Birmingham, Alabama. Through Energen Resources Corporation, the company has approximately 750 million barrels of oil-equivalent proved, probable, and possible reserve at year-end 2012. These all-domestic reserves are located mainly in the Permian and San Juan basins. For more information, go to http://www.energen.com.FORWARD LOOKING STATEMENT: This release contains statements expressing expectations of future plans, objectives and performance that constitute forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Except as otherwise disclosed, the Company's forward-looking statements do not reflect the impact of possible or pending acquisitions, divestitures or restructurings. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise. All statements based on future expectations rather than on historical facts are forward-looking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. In addition, the Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumptions and forecasts. A more complete discussion of risks and uncertainties that could affect future results of Energen and its subsidiaries is included in the Company's periodic reports filed with the Securities and Exchange Commission.