WeissLaw LLP Investigates the Acquisition of Energen Corporation

NEW YORK, Aug. 17, 2018 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Energen Corporation ("EGN" or the "Company") (NYSE: EGN) in connection with the proposed acquisition of the Company by Diamondback Energy Inc ("FANG") (NASDAQ: FANG).  Under the terms of the acquisition agreement, EGN shareholders will be entitled to receive 0.6442 of a FANG share for each EGN share they own, representing consideration of $74.26 based on FANG's August 15 trading price.

WeissLaw is investigating whether EGN's Board acted to maximize shareholder value prior to entering into the agreement.  Notably, the per-share consideration is approximately $39.00 less the analyst target price of $113.00, and offers shareholders a meager 2% premium over the Company's August 13 trading price of $72.79. 

Additionally, the Company recently reported positive financial results in the second quarter of 2018.  In a press release entitled "[EGN] Production in 2Q18 Exceeds Guidance Midpoint by 7%," EGN announced production of 97.4 mboepd and sequential production growth of 5%.  According to James McManus, the Company's Chairman and CEO, "[EGN] is well-positioned to continue delivering strong results and creating shareholder value." Mr. McManus further announced a new guidance range and anticipated production milestone of more than 100,000 boe per day.

Finally, upon completion of the transaction EGN shareholders will only have a 38% stake in ownership of the combined company.

Given these facts, WeissLaw is investigating whether EGN's Board acted in the best interests of EGN's public shareholders to maximize shareholder value prior to entering into the agreement.  If you own EGN shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at [phone] or by email at [e-mail]. 

WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties.  We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases.  If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at [e-mail] or fill  out the form on our website, http://www.weisslawllp.com/energen-corporation/ 

 

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SOURCE WeissLaw LLP

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