Increased Production, Prices Drive 43% Rise in Energen’s 3rd Quarter EPS

October 24, 2007

Energen Corporation (NYSE: EGN) announced today that a 4.5 percent increase in production and a 17 percent rise in realized prices were the major drivers of the energy company’s 43 percent jump in third quarter earnings per diluted share (EPS). For the three months ended September 30, 2007, Energen’s net income totaled $58.0 million, or 80 cents per diluted share; third quarter net income in the prior year was $41.4 million, or 56 cents per diluted share.

In other significant developments:

Energen raised the 2007, 2008 and 2009 production estimates of Energen Resources Corporation, its oil and gas exploration and production subsidiary; these increases reflect the company’s plans to continue the accelerated development of its extensive inventory of proved undeveloped and unproved reserves, primarily in the San Juan and Permian basins.

Annual Production (Bcfe)

New

Old

2007e

2008e

102

2009e

107-109

> 100

Energen increased Energen Resources’ 2008 capital spending plans to $300 million.

Energen reaffirmed its 2008 earnings guidance range of $3.65-$4.05 per diluted share; included in the guidance are revised price assumptions for unhedged production of $7.50 per Mcf for gas, $75 per barrel for oil, and 97.5 cents per gallon for natural gas liquids (NGL).

Energen narrowed its earnings guidance range for 2007 to $4.10-$4.20 per diluted share (previous range: $3.90-$4.20 per diluted share).

Energen announced that Energen Resources’ net lease position in Alabama shales now totals approximately 250,000 acres.

MANAGEMENT COMMENTS

“Energen is well on the way to its sixth consecutive year of record earnings, and we now anticipate EPS will range from $4.10 to $4.20 per diluted share,” said James McManus, Energen’s president and chief executive officer. “We continue to reap the benefits of an excellent hedge position with double-digit increases in realized sales prices through the first nine months of 2007. In addition, our drilling results in the San Juan Basin are even better than we had anticipated, and we now expect Energen Resources’ production in 2007 to reach 98 billion cubic feet equivalent (Bcfe),” McManus said.

“As we look beyond 2007, we believe we can continue developing our properties in the San Juan and Permian basins on an accelerated basis; these two basins are our largest areas of operation and home to the bulk of our proved undeveloped, probable and possible reserves,” McManus said. “Although our 2008 budget is still a ‘work-in-progress,’ we feel we have identified sufficient opportunities to increase Energen Resources’ capital spending estimate for 2008 to $300 million; this is about $100 million more than our previous capital spending estimate.

“This increased level of activity in 2008 will contribute significantly to additional organic production growth,” McManus said. “We estimate that production will total approximately 102 Bcfe in 2008 and between 107 and 109 Bcfe in 2009. I want to emphasize that we have not included in these numbers any assumption for potential shale development capital or production,” he added.

“For the year as a whole, we are reaffirming our 2008 earnings guidance range of $3.65 to $4.05 per diluted share,” McManus said. “In doing so, we have adjusted our assumed prices for unhedged production to better reflect the current market outlook for 2008 prices. We’ve lowered our assumed price for unhedged natural gas production from $8.50 to $7.50 per Mcf, increased our assumed price for unhedged oil production from $65 to $75 per barrel, and raised our unhedged NGL price assumption from 84.5 cents to 97.5 cents per gallon.

“Our 2008 hedge position is a strong one, with some two-thirds of our estimated production hedged; this will go a long way toward protecting our strong and growing cash flows,” McManus said. “We remain committed to being an active hedger and plan to capitalize on commodity price volatility to add to our 2008 and 2009 hedge positions.”

ALABAMA SHALES UPDATE

Energen Resources and Chesapeake Energy have now amassed a lease position of some 500,000 acres in multiple shale plays in north-central Alabama; Energen Resources’ net position is approximately 250,000 acres, and the company has capitalized, unproved leasehold costs of approximately $20 million.

The two companies have identified a number of well locations that will be drilled as part of a previously announced 5- to 10-well test program aimed at defining the productive potential of their extensive acreage position. “We anticipate seeking the necessary regulatory approvals before the end of the year, with drilling to begin soon after,” McManus said. “While additional leasing will continue, Energen Resources and Chesapeake Energy are now ready to move into the next phase of this potential shale resource play in Alabama.”

3rd QUARTER RESULTS

For the three months ended September 30, 2007, Energen’s net income totaled $58.0 million, or 80 cents per diluted share, and compared with third quarter 2006 net income of $41.4 million, or 56 cents per diluted share.

Energen Resources Corporation

Energen Resources’ third quarter net income totaled $69.3 million in 2007. This 39 percent increase over prior-year net income of $49.9 million largely reflects increased production and realized sales prices, partially offset by higher lease operating expense (LOE) and depreciation, depletion and amortization expense (DD&A).

Table A: 3rd Quarter Per-Unit Revenues and Production from Continuing Operations

Average Realized Sales Prices

Production

3Q2007

3Q2006

% Change

3Q2007

3Q2006

% Change

Natural Gas

$7.49/Mcf

$6.80/Mcf

10.1

16.5 Bcf

16.0 Bcf

3.1

Oil

$65.06/Bbl

$51.43/Bbl

26.5

1,025 MBbl

905 MBbl

13.3

NGL

$0.89/Gal

$0.72/Gal

23.6

19.6 MMgal

20.4 MMgal

(3.9)

Total

$8.16/Mcfe

$6.98/Mcfe

16.9

25.4 Bcfe

24.3 Bcfe

4.5

Per-unit LOE totaled $2.03 per Mcfe, up 3 percent from the same period a year ago. Per-unit DD&A in the third quarter of 2007 increased 16 percent over the same period last year to $1.14 per Mcfe.

Alabama Gas Corporation

Energen’s natural gas utility, Alabama Gas Corporation (Alagasco), recorded a net loss of $10.5 million in the July-September 2007 period as compared with a net loss of $7.7 million in the third quarter of 2006. This $2.8 million decline largely was due to the impact of revenue reductions designed to keep the utility earning within its allowed range of return on average equity at the end of the 2007 rate year.

YEAR-TO-DATE RESULTS

For the nine months ended September 30, 2007, Energen’s net income totaled $229.8 million, or $3.18 per diluted share, and compared with net income of $178.4 million, or $2.42 per diluted share, in the same period last year. This 31 percent increase in EPS largely reflects higher realized sales prices for Energen Resources’ production and increased production volumes, partially offset by increased LOE and DD&A.

Energen Resources Corporation

Energen Resources’ year-to-date net income totaled $199.4 million in 2007 for a 33 percent increase over net income of $150.1 million in the same period a year ago.

Table B: YTD Per-Unit Revenues and Production from Continuing Operations

Average Realized Sales Prices

Production

YTD2007

YTD2006

% Change

YTD2007

YTD2006

% Change

Natural Gas

$7.78/Mcf

$7.04/Mcf

10.5

47.7 Bcf

47.1 Bcf

1.3

Oil

$62.58/Bbl

$49.75/Bbl

25.8

2,898 MBbl

2,736 MBbl

5.9

NGL

$0.85/Gal

$0.67/Gal

26.9

57.6 MMgal

57.1 MMgal

0.9

Total

$8.21/Mcfe

$7.06/Mcfe

16.3

73.4 Bcfe

71.6 Bcfe

2.4

Per-unit LOE totaled $2.07 per Mcfe, up 7 percent from the same period a year ago, largely due to a general rise in field service costs and increased repairs and work-over expenses. Per-unit DD&A expense in the first nine months of 2007 increased 13 percent over the same period last year to $1.11 per Mcfe.

Alabama Gas Corporation

Alagasco generated net income of $31.2 million in the first nine months of 2007 as compared with net income of $29.2 million in the same period last year; net income in the prior-year period was affected negatively by decreased usage driven by the high price of natural gas supplies during the 2006 winter heating season.

RESULTS OF THE TRAILING 12 MONTHS

For the 12 months ended September 30, 2007, Energen’s net income totaled $324.9 million, or $4.50 per diluted share. This compared with $235.8 million, or $3.20 per diluted share, in the same period a year ago. Included in the current 12-months earnings is a $34.5 million, or 47 cents per diluted share, after-tax gain associated with the Company’s sale in October 2006 of one-half interest in its acreage position in Alabama shales to Chesapeake Energy Corporation.

Energen Resources Corporation

Energen Resources’ net income in the trailing 12-months period totaled $286.9 million and compared with $201.3 million in the same period last year. In addition to the one-time $34.5 million after-tax gain, the oil and gas company benefited from higher realized sales prices and increased production volumes.

Table C: Trailing 12 Months Per-Unit Revenues and Production from Continuing Operations

Average Realized Sales Prices

Production

TTM2007

TTM2006

% Change

TTM2007

TTM2006

% Change

Natural Gas

$7.53/Mcf

$7.22/Mcf

4.3

63.5 Bcf

62.2 Bcf

2.1

Oil

$59.55/Bbl

$47.34/Bbl

25.8

3,807 MBbl

3,573 MBbl

6.5

NGL

$0.80/Gal

$0.64/Gal

25.0

76.9 MMgal

75.1 MMgal

2.4

Total

$7.87/Mcfe

$7.06/Mcfe

11.5

97.3 Bcfe

94.4 Bcfe

3.1

Alabama Gas Corporation

Alagasco generated net income of $39.3 million in the 12-months ended September 30, 2007, as compared with $34.9 million in the prior-year period; prior-period net income was negatively affected by decreased usage driven by the high price of natural gas supplies during the 2006 winter heating season.

2007 EARNINGS GUIDANCE

Energen today narrowed its 2007 earnings guidance, raising the bottom of the range 10 cents per diluted share. The new earnings guidance range is $4.10-$4.20 per diluted share. “Energen’s excellent year-to-date performance, better-than-expected production and substantial hedge position for the remainder of this year give us a great deal of confidence that we are on the right track to achieve our sixth consecutive year of record earnings in 2007,” McManus said.

Key assumptions in Energen’s 2007 earnings guidance are:

Hedge position covering approximately 66 percent of estimated production;

Assumed prices for unhedged natural gas, oil and NGL production of $8 per Mcf, $60 per barrel and 78 cents per gallon, respectively;

Production of 98 Bcfe;

Capital spending of approximately $390 million, including some $330 million by Energen Resources and approximately $60 million by Alagasco;

An average DD&A rate at Energen Resources of $1.13 per Mcfe;

Per-unit LOE at Energen Resources, including production taxes, of $2.09 per Mcfe;

Alagasco’s earning near its allowed range of return on average equity of approximately $300 million;

Average diluted shares outstanding of 72.2 million.

Hedge Position for Remainder of 2007

Energen Resources’ hedge position for the remainder of the year by commodity is as follows:

Commodity

Hedge Vols.

4Q Production (est.)

% Hedged

NYMEX-equiv. price

Natural Gas

10.5 Bcf

16.7 Bcf

$8.95/Mcf

Oil

671 MBbl

967 MBbl

$69.36/barrel

NGL

11.2 MMgal

17.3 MMgal

$0.93/gallon

NOTE: Actual October data used where known

Energen Resources’ natural gas and oil hedge positions for the remainder of the year by hedge type are as follows:

Natural Gas Hedges

Volumes (Bcf)

Assumed Differential (per Mcf)

NYMEXe Price (per Mcf)

NYMEX

3.1

—

$9.27

San Juan Basin

6.5

$1.00

$8.71

Permian Basin

0.1

$0.79

$8.12

SNG-Louisiana

0.8

$0.0

$9.72

Oil Hedges

Volumes (MBbl)

Assumed Differential (per barrel)

NYMEXe Price(per barrel)

NYMEX

—

$75.42

Sour Oil (WTS)

584

$4.78

$68.46

NOTE: Actual October data used where known

Average realized oil and gas prices for Energen Resources’ production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials. Average NGL revenue per unit of production will be net of transportation and fractionation fees.

For production associated with basin-specific contracts, Energen Resources will receive the contracted hedge price. Energen typically hedges basis differentials where applicable. In the tables above, the basin-specific contract prices were converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources’ assumed basis differentials.

Earnings Sensitivities to Commodity Price Changes

Given Energen Resources’ current hedge position for the remainder of 2007 and using the price assumptions given above for the Company’s unhedged production, changes in commodity prices are estimated to be immaterial.

2008 EARNINGS GUIDANCE

Energen today reaffirmed its 2008 earnings guidance range of $3.65-$4.05 per diluted share. At the same time, the company increased significantly its 2008 production estimate and adjusted its price assumptions for unhedged production.

Key assumptions in Energen’s 2008 earnings guidance include:

Production of 102 Bcfe;

Existing hedge position covering two-thirds of estimated 2008 production;

Assumed prices for unhedged production of $7.50 per Mcf for gas, $75 per barrel for oil, and 97.5 cents per gallon for NGL;

Capital spending of approximately $360 million, including some $300 million by Energen Resources and approximately $60 million by Alagasco;

Alagasco’s earning within its allowed range of return on average equity of approximately $315 million;

Average diluted shares outstanding of 72.2 million.

“I would emphasize that none of our 2008 estimates include any potential production or drilling capital associated with our stake in multiple shale plays in Alabama,” McManus said.

2008 Hedge Position

Energen Resources’ 2008 hedge position by commodity is as follows:

Commodity

Hedge Vols.

2008e Production

% Hedged

NYMEX-equiv. price

Natural Gas

43.7 Bcf

67.0 Bcf

$8.59/Mcf

Oil

3.0 MMBbl

4.2 MMBbl

$68.17/barrel

NGL

41.3 MMgal

69.9 MMgal

$0.93/gallon

Energen Resources’ 2008 natural gas and oil hedge positions by hedge type are as follows:

Natural Gas Hedges

Volumes (Bcf)

Assumed Differential(per Mcf)

NYMEXe Price(per Mcf)

NYMEX

18.4

—

$8.56

San Juan Basin

25.3

$1.05

$8.62

Oil Hedges

Volumes (MBbl)

Assumed Differential(per barrel)

NYMEXe Price(per barrel)

NYMEX

575

—

$72.93

Sour Oil (WTS)

2,398

$5.00

$67.02

Average realized oil and gas prices for Energen Resources’ production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials. Average realized NGL prices will be net of transportation and fractionation fees.

Earnings Sensitivities to Commodity Price Changes

Given Energen Resources’ current hedge position for 2008 and using the price assumptions given above for the Company’s unhedged production, changes in commodity prices are estimated to have the following impact on Energen’s 2008 earnings:

Every 10-cent change in the average NYMEX price of gas from $7.50 represents an estimated net income impact of approximately $1,100,000 (1.5 cent per diluted share).

Every $1.00 change in the average NYMEX price of oil from $75.00 per barrel represents an estimated net income impact of approximately $625,000 (0.9 cents per diluted share).

Every 1-cent change in the average price of liquids from $0.975 per gallon represents an estimated net income impact of approximately $135,000 (0.2 cents per diluted share).

Price-related events such as substantial basis differential changes could cause earnings sensitivities to be materially different from those outlined above.

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.

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, AL. Its two lines of business are the acquisition and development of domestic, onshore natural gas, oil and NGL reserves and natural gas distribution in central and north Alabama. Energen Resources has approximately 1.7 Tcfe of proved reserves in the San Juan, Permian and Black Warrior basins and in the North Louisiana/East Texas area. More information is available at www.energen.com.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 3 months ending September 30, 2007 and 2006

3rd Quarter

(in thousands, except per share data)

2007

2006

Change

Operating Revenues

Oil and gas operations

208,423

171,516

36,907

Natural gas distribution

67,599

71,195

(3,596

)

Total operating revenues

276,022

242,711

33,311

Operating Expenses

Cost of gas

31,088

32,311

(1,223

)

Operations & maintenance

84,857

78,836

6,021

Depreciation, depletion and amortization

41,457

35,676

5,781

Taxes, other than income taxes

18,988

19,338

(350

)

Accretion expense

1,000

881

119

Total operating expenses

177,390

167,042

10,348

Operating Income

98,632

75,669

22,963

Other Income (Expense)

Interest expense

(11,418

)

(12,267

)

849

Other income

885

448

437

Other expense

(244

)

(207

)

(37

)

Total other expense

(10,777

)

(12,026

)

1,249

Income from Continuing Operations Before Income Taxes

87,855

63,643

24,212

Income tax expense

29,841

22,346

7,495

Income from Continuing Operations

58,014

41,297

16,717

Discontinued Operations, Net of Taxes

Income from discontinued operations

–

Gain on disposal of discontinued operations

(35

)

Income from Discontinued Operations

(35

)

Net Income

58,034

41,352

16,682

Diluted Earnings Per Average Common Share

Continuing operations

0.80

0.56

0.24

Discontinued operations

–

Net Income

0.80

0.56

0.24

Basic Earnings Per Average Common Share

Continuing operations

0.81

0.57

0.24

Discontinued operations

–

Net Income

0.81

0.57

0.24

Diluted Avg. Common Shares Outstanding

72,275

73,191

(916

)

Basic Avg. Common Shares Outstanding

71,623

72,228

(605

)

Dividends Per Common Share

0.115

0.11

0.005

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 9 months ending September 30, 2007 and 2006

Year-to-date

(in thousands, except per share data)

2007

2006

Change

Operating Revenues

Oil and gas operations

605,812

510,213

95,599

Natural gas distribution

477,793

503,014

(25,221

)

Total operating revenues

1,083,605

1,013,227

70,378

Operating Expenses

Cost of gas

252,584

284,192

(31,608

)

Operations & maintenance

251,011

231,720

19,291

Depreciation, depletion and amortization

118,184

104,472

13,712

Taxes, other than income taxes

71,170

73,450

(2,280

)

Accretion expense

2,921

2,691

230

Total operating expenses

695,870

696,525

(655

)

Operating Income

387,735

316,702

71,033

Other Income (Expense)

Interest expense

(35,655

)

(37,810

)

2,155

Other income

2,396

1,410

986

Other expense

(626

)

(708

)

Total other expense

(33,885

)

(37,108

)

3,223

Income from Continuing Operations Before Income Taxes

353,850

279,594

74,256

Income tax expense

124,052

101,194

22,858

Income from Continuing Operations

229,798

178,400

51,398

Discontinued Operations, Net of Taxes

Income (loss) from discontinued operations

)

Gain on disposal of discontinued operations

(35

)

Income from Discontinued Operations

(26

)

Net Income

229,819

178,447

51,372

Diluted Earnings Per Average Common Share

Continuing operations

3.18

2.42

0.76

Discontinued operations

–

Net Income

3.18

2.42

0.76

Basic Earnings Per Average Common Share

Continuing operations

3.21

2.45

0.76

Discontinued operations

–

Net Income

3.21

2.45

0.76

Diluted Avg. Common Shares Outstanding

72,173

73,671

(1,498

)

Basic Avg. Common Shares Outstanding

71,566

72,839

(1,273

)

Dividends Per Common Share

0.345

0.33

0.015

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 12 months ending September 30, 2007 and 2006

Trailing 12 Months

(in thousands, except per share data)

2007

2006

Change

Operating Revenues

Oil and gas operations

826,141

674,340

151,801

Natural gas distribution

638,223

673,968

(35,745

)

Total operating revenues

1,464,364

1,348,308

116,056

Operating Expenses

Cost of gas

341,489

385,149

(43,660

)

Operations & maintenance

321,448

305,320

16,128

Depreciation, depletion and amortization

155,798

137,422

18,376

Taxes, other than income taxes

93,447

101,566

(8,119

)

Accretion expense

3,849

3,373

476

Total operating expenses

916,031

932,830

(16,799

)

Operating Income

548,333

415,478

132,855

Other Income (Expense)

Interest expense

(46,497

)

(49,816

)

3,319

Other income

1,859

1,879

(20

)

Other expense

(886

)

(780

)

(106

)

Total other expense

(45,524

)

(48,717

)

3,193

Income from Continuing Operations Before Income Taxes

502,809

366,761

136,048

Income tax expense

177,888

131,066

46,822

Income from Continuing Operations

324,921

235,695

89,226

Discontinued Operations, Net of Taxes

Income (loss) from discontinued operations

(10

)

Gain on disposal of discontinued operations

(47

)

Income from Discontinued Operations

(34

)

Net Income

324,942

235,750

89,192

Diluted Earnings Per Average Common Share

Continuing operations

4.50

3.20

1.30

Discontinued operations

–

Net Income

4.50

3.20

1.30

Basic Earnings Per Average Common Share

Continuing operations

4.54

3.23

1.31

Discontinued operations

–

Net Income

4.54

3.23

1.31

Diluted Avg. Common Shares Outstanding

72,170

73,744

(1,574

)

Basic Avg. Common Shares Outstanding

71,598

72,934

(1,336

)

Dividends Per Common Share

0.455

0.43

0.025

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending September 30, 2007 and 2006

3rd Quarter

(in thousands, except sales price data)

2007

2006

Change

Oil and Gas Operations

Operating revenues

Natural gas

123,499

108,795

14,704

Oil

66,689

46,529

20,160

Natural gas liquids

17,486

14,668

2,818

Other

749

1,524

(775

)

Total

208,423

171,516

36,907

Production volumes from continuing operations

Natural gas (MMcf)

16,495

16,004

491

Oil (MBbl)

1,025

905

120

Natural gas liquids (MMgal)

19.6

20.4

(0.8

)

Production volumes from continuing ops. (MMcfe)

25,445

24,340

1,105

Total production volumes (MMcfe)

25,445

24,340

1,105

Revenue per unit of production including effects of all derivative instruments

Natural gas (Mcf)

7.49

6.80

0.69

Oil (barrel)

65.06

51.43

13.63

Natural gas liquids (gallon)

0.89

0.72

0.17

Other data from continuing operations

Lease operating expense (LOE)

LOE and other

38,706

35,305

3,401

Production taxes

12,968

12,602

366

Total

51,674

47,907

3,767

Depreciation, depletion and amortization

29,610

24,475

5,135

Capital expenditures

94,274

61,049

33,225

Exploration expenditures

1,396

1,986

(590

)

Operating income

112,899

85,239

27,660

Natural Gas Distribution

Operating revenues

Residential

35,685

36,635

(950

)

Commercial and industrial

21,384

22,300

(916

)

Transportation

10,575

10,115

460

Other

(45

)

2,145

(2,190

)

Total

67,599

71,195

(3,596

)

Gas delivery volumes (MMcf)

Residential

1,537

1,601

(64

)

Commercial and industrial

1,520

1,534

(14

)

Transportation

12,779

12,999

(220

)

Total

15,836

16,134

(298

)

Other data

Depreciation and amortization

11,847

11,201

646

Capital expenditures

14,023

18,512

(4,489

)

Operating (loss)

(13,673

)

(8,921

)

(4,752

)

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 9 months ending September 30, 2007 and 2006

Year-to-date

(in thousands, except sales price data)

2007

2006

Change

Oil and Gas Operations

Operating revenues

Natural gas

371,436

331,073

40,363

Oil

181,388

136,146

45,242

Natural gas liquids

49,076

38,152

10,924

Other

3,912

4,842

(930

)

Total

605,812

510,213

95,599

Production volumes from continuing operations

Natural gas (MMcf)

47,732

47,056

676

Oil (MBbl)

2,898

2,736

162

Natural gas liquids (MMgal)

57.6

57.1

0.5

Production volumes from continuing ops. (MMcfe)

73,350

71,625

1,725

Total production volumes (MMcfe)

73,349

71,624

1,725

Revenue per unit of production including effects of all derivative instruments

Natural gas (Mcf)

7.78

7.04

0.74

Oil (barrel)

62.58

49.75

12.83

Natural gas liquids (gallon)

0.85

0.67

0.18

Other data from continuing operations

Lease operating expense (LOE)

LOE and other

113,236

100,789

12,447

Production taxes

38,568

38,454

114

Total

151,804

139,243

12,561

Depreciation, depletion and amortization

83,083

71,592

11,491

Capital expenditures

254,795

156,606

98,189

Exploration expenditures

1,671

3,512

(1,841

)

Operating income

329,672

260,916

68,756

Natural Gas Distribution

Operating revenues

Residential

306,312

322,635

(16,323

)

Commercial and industrial

130,279

139,713

(9,434

)

Transportation

36,509

33,111

3,398

Other

4,693

7,555

(2,862

)

Total

477,793

503,014

(25,221

)

Gas delivery volumes (MMcf)

Residential

16,303

16,581

(278

)

Commercial and industrial

8,373

8,559

(186

)

Transportation

38,396

37,947

449

Total

63,072

63,087

(15

)

Other data

Depreciation and amortization

35,101

32,880

2,221

Capital expenditures

45,596

58,947

(13,351

)

Operating income

59,734

57,517

2,217

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending September 30, 2007 and 2006

Trailing 12 Months

(in thousands, except sales price data)

2007

2006

Change

Oil and Gas Operations

Operating revenues

Natural gas

477,923

449,621

28,302

Oil

226,701

169,114

57,587

Natural gas liquids

61,182

48,088

13,094

Other

60,335

7,517

52,818

Total

826,141

674,340

151,801

Production volumes from continuing operations

Natural gas (MMcf)

63,500

62,223

1,277

Oil (MBbl)

3,807

3,573

234

Natural gas liquids (MMgal)

76.9

75.1

1.8

Production volumes from continuing ops. (MMcfe)

97,321

94,398

2,923

Total production volumes (MMcfe)

97,320

94,420

2,900

Revenue per unit of production including effects of all derivative instruments

Natural gas (Mcf)

7.53

7.22

0.31

Oil (barrel)

59.55

47.34

12.21

Natural gas liquids (gallon)

0.80

0.64

0.16

Other data from continuing operations

Lease operating expense (LOE)

LOE and other

147,300

129,519

17,781

Production taxes

49,623

55,175

(5,552

)

Total

196,923

184,694

12,229

Depreciation, depletion and amortization

109,333

93,915

15,418

Capital expenditures

357,867

377,600

(19,733

)

Exploration expenditures

2,340

3,620

(1,280

)

Operating income

473,905

348,079

125,826

Natural Gas Distribution

Operating revenues

Residential

409,743

430,660

(20,917

)

Commercial and industrial

172,465

190,058

(17,593

)

Transportation

49,348

43,750

5,598

Other

6,667

9,500

(2,833

)

Total

638,223

673,968

(35,745

)

Gas delivery volumes (MMcf)

Residential

22,032

22,190

(158

)

Commercial and industrial

11,040

11,560

(520

)

Transportation

51,209

50,163

1,046

Total

84,281

83,913

368

Other data

Depreciation and amortization

46,465

43,507

2,958

Capital expenditures

62,806

78,661

(15,855

)

Operating income

76,491

69,430

7,061

Topics: Business Finance, Financial ratio, USD, Energen Resources Corporation, Energen Corporation

Increased Production, Prices Drive 43% Rise in Energen’s 3rd Quarter EPS

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Increased Production, Prices Drive 43% Rise in Energen’s 3rd Quarter EPS

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