June 28 (Reuters) - Activist investor Corvex Management LP reported a 7.6 percent stake in oil and gas producer Energen Corp on Wednesday and expressed “disappointment” with the company’s decision to stick to its business plan.
Corvex, run by Carl Icahn protege Keith Meister, said Energen's decision was made without consulting shareholders on potential strategic alternatives for the company. (bit.ly/2tlmPV8)
However, Energen said on Wednesday it conducted a review of its business with the help of two financial advisers and input from shareholders and concluded that its best option was to continue with its present business execution.
Corvex last month disclosed a 5.5 percent stake in Energen and urged the company to explore a sale. The 7.6 percent stake revealed on Wednesday will make it Energen’s fifth-largest shareholder, according to Thomson Reuters calculation.
Energen has a large concentration of assets in the Permian Basin which has become a hotbed of M&A activity in the energy industry as a recovery in oil prices spurs firms to make strategic investments.
Birmingham, Alabama-based Energen’s shares were up 2.5 percent at $49.15, giving the company a market value of about $4.80 billion. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Shounak Dasgupta)