Energen Increases 2009 Hedge Position

Energen Corporation (NYSE: EGN) announced today that its oil and gas exploration and production subsidiary, Energen Resources Corporation, has increased its 2009 hedge position to 39 percent of its estimated 2009 production of approximately 108 billion cubic feet (Bcf) equivalent.

Natural Gas: Energen Resources last month sold San Juan Basin-specific contracts for an additional 3.1 Bcf of its 2009 natural gas production at an average NYMEX-equivalent price of $8.75 per thousand cubic feet.

Oil: Energen Resources yesterday hedged another 360,000 barrels of its 2009 sour oil production at a NYMEX-equivalent price of $86.15 per barrel. Last month, Energen Resources hedged its first 2010 oil production: 720,000 barrels at a NYMEX price of $81.20 per barrel.

Natural Gas Liquids: Energen Resources last month hedged another 10.1 million gallons of its 2009 natural gas liquids production at an average price of $1.05 per gallon.

2009 HEDGE POSITION SUMMARY

Energen Resources’ 2009 hedge position by commodity is as follows:

Commodity

 

Hedge Vols.

 

2009e Production

 

% Hedged

 

NYMEXe price

Natural Gas

 

24.7 Bcf

 

69.5 Bcf

 

36

 

$8.81 / Mcf

Oil

 

2.4 MMBbl

 

4.8 MMBbl

 

50

 

$70.75 / barrel

NGL

 

20.2 MMgal

 

68.0 MMgal

 

30

 

$1.05 / gallon

Energen Resources’ 2009 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)

San Juan Basin

 

24.7

 

$1.00

 

$8.81

 

Oil Hedges

 

Volumes (MBbl)

 

Assumed Differential (per barrel)

 

NYMEXe Price (per barrel)

Sour Oil (WTS)

 

1,980

 

$5.15

 

$67.93

NYMEX

 

480

 

—

 

$82.40

NOTE: Average natural gas and oil revenues per unit of production for Energen Resources’ production associated with NYMEX contracts will reflect the impact of basis differentials. Average NGL revenues 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; the Company typically hedges basis differentials where applicable. The basin-specific contract prices have been converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources’ assumed basis differentials.

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, development and exploration 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 and 1.9 Tcfe of probable and possible reserves in the San Juan, Permian and Black Warrior basins and in the North Louisiana/East Texas area. Alabama Gas Corporation is the largest distributor of natural gas in Alabama. More information is available at www.energen.com.