(Reuters) - Energen Corp (EGN.N) said on Monday its board had unanimously decided to stick to its business plan, less than a month after activist investor Corvex Management LP disclosed a large stake in the oil and gas producer and demanded that it explore a sale.
The Birmingham, Alabama-based company, which has a large concentration of its assets in the Permian Basin, also raised its 2017 production forecast by 5.9 percent to 70,200 barrels of oil equivalent per day.
Corvex, run by Carl Icahn protege Keith Meister, disclosed a 5.5 percent stake last month and said the fund had discussed its views with the company.
Energen said on Monday it had engaged J.P. Morgan and Tudor Pickering Holt & Co. to review strategic alternatives but that, in the end, it decided to stick with its own business plan.
“This examination took into consideration input from numerous shareholders and analyzed Energen’s top-tier assets, its improving execution, and the broader macroeconomic and commodity price environment,” the company said in its statement.
Corvex did not return a call seeking comment on Monday.
Whether Corvex accepts the $5 billion company’s decision or ramps up pressure further is unclear.
Additional reporting by Ahmed Farhatha in Bengaluru; Editing by Sriraj Kalluvila and James Dalgleish