Insider Bets On EP Energy Corp (EPE)’s IPO

On Friday, Jan. 17th, Brent Smolik, President, Chief Executive Officer and Chairman at EP Energy Corp (NYSE:EPE) filed a Form 4 report with the U.S. Securities and Exchange Commission, declaring a purchase of the company’s stock. The insider acquired his first 100 shares for $19.9 per common unit at the company’s initial public offering (IPO). In addition, he indirectly owns 375,320 shares through EPE Management Investors, LLC.

EP Energy

EP Energy Corp (NYSE:EPE) is an independent exploration and production company focused on unconventional onshore oil and natural gas exploitation in the United States. Although it is already a relatively big company, with a market capitalization of approximately $4.5 billion, it just recently went public – on Jan. 17th. The management expects to raise $1 billion through this IPO, that will be used to repay debt and to pursue other corporate actions. However, this calculation was based on the assumption that the stock would trade at a price range midpoint of $25 last Friday, which wasn’t the case –which means that new estimates need to be made.

Previous to EP Energy Corp (NYSE:EPE)’s IPO, there were four major stockholders. The largest of them all was Apollo Funds, which held 54% of the stock. Trailing this fund were Riverstone, Access and KNOC, with 15% of the stock each. However, none of the major hedge funds that we track has yet disclosed a long position in the stock.

Still, the company looks like an interesting investment option: it is quite focused on its bottom line and making money for shareholders -keeping its net income high in relation to its revenue. In addition, its margins and returns comfortably surpass its peers´ mean. Finally, EP Energy Corp (NYSE:EPE) holds thousands of potential drilling locations and valuable assets, as well as an effective and efficient management team.

Moreover, as the stock price continues to drop –it fell almost 10% during Monday Jan. 20th its valuation becomes increasingly attractive, especially in relation to its book values. As insiders start betting on this company, should you too?

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Insiders Are Betting on MVC Capital, Inc. (MVC). Wonder Why?

Zix Corporation (ZIXI): Small-Cap, Small Bets

Insiders and Funds Bet on United States Steel Corporation (X)

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!