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Energen Corporation$66.20($1.14)(1.69%)

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 Energen Targets Capital Investment in CY15 of $1.0 Billion
   Thursday, February 12, 2015 4:30:32 PM ET

--ENERGEN AGREES TO SELL MAJORITY OF SAN JUAN GAS ASSETS FOR $395 MM

--Drillbit Reserve Replacement Exceeds 400% in 2014 at F&D of $14/BOE

--Highlights

--4Q14 production from continuing operations increases 11% from prior-year 4th quarter

--Wolfcamp drilling drives 22% growth in CY14 Permian Basin production

--2015 capital investment plans focus on Midland Basin Wolfcamp development in Glasscock, Martin counties

--Wolfcamp development program wells performing at/above newly released type curve

--Wolfcamp development in CY14 drives increase in year-end proved reserves to record 373 MMBOE

--Potential unrisked drilling inventory in San Juan Basin Mancos oil formation totals 565 net wells

For the 3 months ended December 31, 2014, Energen Corporation (EGN ) reported GAAP net income from all operations of $65.4 million, or $0.89 per diluted share. After adjusting for a mark-to-market gain, impairment losses resulting largely from low commodity prices, and discontinued operations, Energen’s adjusted income from continuing operations in the 4th quarter of 2014 totaled $41.1 million, or $0.56 per diluted share. This compares with adjusted income from continuing operations in the 4th quarter of 2013 of $50.1 million, or $0.69 per diluted share. The variance between the periods primarily is attributable to an 8 percent decline in realized oil and natural gas liquids (NGL) prices, increased lease operating expenses (LOE), and increased depreciation, depletion, and amortization (DD&A) expense, partially offset by an 18 percent increase in oil and NGL production. [See "Non-GAAP Financial Measures" beginning on pp 19 for more information and reconciliation.]



Energen’s adjusted EBITDAX from continuing operations totaled $226.0 million in the 4th quarter of 2014, up approximately 7 percent from $211.9 million in the same period last year. [See "Non-GAAP Financial Measures" beginning on pp 19 for more information and reconciliation.]

The company’s 4th quarter earnings per diluted share met internal expectations as less-than-expected production, increased LOE, and lower realized commodity prices were essentially offset by certain tax benefits.

Production in the 4th quarter was near the low end of the company’s guidance range due to the timing of completions and a longer-than-estimated flow-back period for certain wells in the Midland Basin; and in the Delaware Basin, a third-party handling issue associated with liquids in the gas stream negatively affected 4th quarter production by approximately 80,000 barrels of oil equivalents (BOE). In addition, severe weather in late December impacted 4th quarter production by approximately 30,000 BOE.

"Making responsible capital allocation decisions in a declining commodity price environment is never easy and requires some tough decisions," said James McManus, chairman and chief executive officer of Energen Corporation. "Fortunately for Energen, we have a high-quality asset base, particularly in the Midland Basin, where we can generate acceptable returns from our Wolfcamp development program and drive double-digit production growth...even in the current market. A solid hedge position, a clean balance sheet, and lower drilling and completion costs also are working to our advantage in 2015.

"We estimate that our capital budget for drilling and development in 2015 of some $1.0 billion will approximate internally generated cash flows plus proceeds from the sale of our San Juan Basin divestiture package such that Energen’s debt-to-ebitdax multiple at year-end 2015 remains well under 2.0x. This level of spending also is expected to generate production growth of approximately 15 percent.

"The toughest issue we faced in allocating capital in 2015 was how to deal with our substantial Delaware Basin Wolfcamp potential. The high drilling costs across the basin in this young play, coupled with areas of high gas content and lack of infrastructure in more remote areas of Reeves County, does not support an active drilling program at current strip prices. Our approach has been to allocate enough capital to preserve most of our Wolfcamp potential through lease extensions and a two-rig drilling program in 2015.

"At the same time, we have ranked our Wolfcamp acreage in the Delaware Basin. Tiers 1 and 2 encompass more than 95,000 net acres and offer the greatest potential for success in four identified zones (Wolfcamp A, B, B/C, and C). The greatest potential for realizing reduced drill-and-complete costs in development is in Tier 1, where we also enjoy reasonable to good infrastructure. If oil prices rebound significantly, we believe Tier 2 could offer potential in the eastern Delaware Basin where infrastructure is in place but where more work is needed to drive down costs given a higher pressure regime and challenging rock mechanics. Our Tier 3 properties in southwest Reeves County, which we believe to be largely natural gas assets, are challenged not only by persistently low natural gas prices but also by a lack of infrastructure, and we have removed the well potential there from our unrisked drilling inventory. In our financials for the quarter, you will note that we took impairments on Tiers 2 and 3.

"Despite the current uncertainty surrounding the depth and duration of low oil prices, Energen is in a strong position -- both in terms of our assets and our financial strength -- and we are committed to managing our capital investments and operating plans to best serve the long-term interests of our shareholders."

4th Quarter Financial Review

 
Reconciliation of Consolidated GAAP Net Income to Adjusted
Income from Continuing Operations
[See "Non-GAAP Financial Measures" beginning on pp 19 for more
information]
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         4Q14                                                                                                                                                4Q13
                                                          $M                                                $/dil. sh.                                                                                        $M                                               $/dil. sh.                    
-------------------- -------------------------------------------- -------------------- -------------------- -------------------- ----------------------------------------------------------------------- -------------------- --------------------------------------------------------------------                                           -------------------- --------------------------------------------------------------------- -------------------- --------------------------------------------------------------------
                     Net Income All Operations (GAAP)                                                                                               $   65,418                                             $  0.89                                                                                                                             $ 84,093                                             $  1.15
                     Less: Non-cash Mark-to-Market gain/(loss)                                                                                         167,315                                                                                      2.28                                                                                                                                  159                                                                                      0.00
                     Less: Asset Impairment, other                                                                                                    (141,945 )                                                                                   (1.94 )                                                                                                                             (4,619 )                                                                                   (0.06 )
  Less: Discontinued Operations                          (1,101 )                          (0.02 )                                                                    38,460          0.53    
-------------------- -------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- --------------------                                           -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ----- -------------------- --------------------
  Adj. Income Continuing Operations (Non-GAAP)                          $   41,149                          $  0.56                              $ 50,093                          $  0.69    
==================== ============================================ ==================== ==================== ==================== ==================== ======== ==================== ==================== ==================== ==================== ===== ==================== ==================== ==================== ==================== ==================== ==================== ====== ==================== ==================== ==================== ==================== ===== ==================== ====================
Note: Per share amounts may not sum due to rounding
                                                                                                                                                                                                                                                           

After-tax asset impairments included $59 million for wells in Delaware Basin Tiers 2 and 3 as a result of low commodity prices; an additional $48 million for the San Juan Basin held-for-sale assets due to lower natural gas prices; and $34 million for unproved leasehold primarily in Delaware Basin Tiers 2 and 3.

                                                                                                                                                                                                                                         
Production from Continuing Operations by Product
                                                                                                                                                                                                                                                                                 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------
    Commodity                                4Q14                                                           4Q13                                     Change                                                                               3Q14                           
-------------------- ----------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------------                                           -------------------- --------------------------------------------------------------------------- -------------------- -----------------------------------------                                           -------------------- ---------------------------------------------------------------------------
                     MBOE      boepd                                                MBOE      boepd                                                      MBOE      boepd  
                                                                           -------------------- ----- -------------------- -------------------- ------ --------------------                                           -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- -----------------------------------------                                           -------------------- ----- -------------------- -------------------- ------ --------------------
                     Oil                                                     3,213     34,924                                               2,694     29,283             19 %                                                                          3,017     32,793
                     NGL                                                                        1,027                                           11,163                                                                                       888                                            9,652                                                   16 %                                                                                             1,108                                           12,043
  Natural Gas       2,441     26,533                                               2,446     26,587              0 %                                                       2,526     27,457  
-------------------- ----------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- ------ --------------------                                           -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- ---------- --------- --------------------                                           -------------------- ----- -------------------- -------------------- ------ --------------------
    Total           6,681     72,620         6,028     65,522             11 %                                                       6,651     72,293  
-------------------- ----------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- ---------- --------- --------------------                                           -------------------- ----- -------------------- -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                        
Production from Continuing Operations by Area
                                                                                                                                                                                                                                                                                 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------
            Area                                          4Q14                                                           4Q13                                      Change                                                                               3Q14                           
-------------------- ------------------------ -------------------- -------------------- -------------------- ---------------------------------------------------------------------------                                           -------------------- --------------------------------------------------------------------------- -------------------- ------------------------------------------                                           -------------------- ---------------------------------------------------------------------------
                                  MBOE      boepd                                                MBOE      boepd                                                       MBOE      boepd  
                                                                                        -------------------- ----- -------------------- -------------------- ------ --------------------                                           -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- ------------------------------------------                                           -------------------- ----- -------------------- -------------------- ------ --------------------
                     Midland Basin                                                        2,238     24,326                                               1,477     16,054             52 %                                                                           1,876     20,391
                         Wolfberry                                                                           1,189                                           12,924                                                                                     1,453                                           15,793                                                                                                                                  1,292                                           14,043
                         Wolfcamp/Cline                                                                      1,049                                           11,402                                                                                        24                                              261                                                                                                                                                       584                                            6,348
                     Delaware Basin                                                                          1,421                                           15,446                                                                                     1,234                                           13,413                                                   15 %                                                                                              1,525                                           16,576
                        3rd Bone Spring/Other                                                                1,129                                           12,272                                                                                     1,043                                           11,337                                                                                                                                                     1,219                                           13,250
                        Wolfcamp                                                                               292                                            3,174                                                                                       190                                            2,065                                                                                                                                                       306                                            3,326
  Central Basin Platform           979     10,641                                               1,091     11,859            (10 ) %                                                        998     10,848  
-------------------- ------------------------ -------------------- -------------------- -------------------- ----- -------------------- -------------------- ------ --------------------                                           -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- ---------- ---------- --------------------                                           -------------------- ----- -------------------- -------------------- ------ --------------------
                      Total Permian Basin                                                                    4,638                                           50,413                                                                                     3,802                                           41,326                                                   22 %                                                                                              4,399                                           47,815
  San Juan Basin/Other           2,043     22,207                                               2,226     24,196             (8 ) %                                                      2,252     24,478  
-------------------- ------------------------ -------------------- -------------------- -------------------- ----- -------------------- -------------------- ------ --------------------                                           -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- ---------- ---------- --------------------                                           -------------------- ----- -------------------- -------------------- ------ --------------------
    Total                        6,681     72,620         6,028     65,522             11 %                                                        6,651     72,293  
==================== ======================== ==================== ==================== ==================== ===== ==================== ==================== ====== ==================== ==================== ==================== ==================== ===== ==================== ==================== ====== ==================== ==================== ========== ========== ====================                                           ==================== ===== ==================== ==================== ====== ====================
Note: Totals may not sum due to rounding
                                                                                                                                                                                                                                                                                                                                                            
 
Average Realized Sales Prices from Continuing Operations
 
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
         Commodity             4Q14          4Q13        Change  
-------------------- --------------------- -------------------- -------------------- ------------------------------ -------------------- ------------------------------ -------------------- ----------------------------
  Oil (per barrel)            $ 81.81       $ 87.80      (7 ) %
                     NGL (per gallon)                                                  $  0.59                                             $  0.79                                           (25 ) %
  Natural Gas (per Mcf)       $  4.28       $  4.35      (2 ) %  
-------------------- --------------------- -------------------- -------------------- --- ----- -------------------- -------------------- --- ----- -------------------- -------------------- --- --- --------------------
                                                                                                                                                                                                      
 
Expenses from Continuing Operations (per BOE, except interest
expense)
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             Expenses                  4Q14           4Q13                  Change            
-------------------- ----------------------------- -------------------- -------------------- ------------------------------- -------------------- ------------------------------- -------------------- -----------------------------------------------
  LOE*                                 $ 11.16        $ 11.04        1  %
                     Production & ad valorem taxes                                              $  3.14                                              $  4.15                                            (24 )%
                     DD&A                                                                       $ 22.08                                              $ 19.96                                             11  %
                     Net G&A                                                                    $  4.27                                              $  4.50                                             (5 )%
  Interest ($MM)                       $  10.4        $   9.5        9  %  
-------------------- ----------------------------- -------------------- -------------------- ---- ----- -------------------- -------------------- ---- ----- -------------------- -------------------- ---- --------------------- --------------------
*Production costs + workovers and repairs + marketing and
transportation
 

4th Quarter Comparisons, 2014 vs 2013 (Continuing Operations)

-- Permian Basin production increased 22 percent as new drilling in the horizontal Wolfcamp more than offset declines resulting from a reduced vertical Wolfberry program and from natural declines in the company’s legacy assets in the Central Basin Platform.

-- Energen did not feel the full brunt of rapidly declining oil prices in the 4th quarter of 2014 due to its substantial hedge position. The company’s average realized oil price fell 7 percent largely due to higher Midland to Cushing basis differentials for sweet and sour oil production. Excluding the impact of all hedges, the average price of oil would have declined $26.88 per barrel to $65.96.

-- LOE per unit was little changed at $11.16 per barrel. Per-unit production taxes and ad valorem taxes declined 24 percent.

-- Per-unit DD&A expense increased 11 percent to $22.08 per BOE largely due to year-over-year increases in development costs.

-- Per-unit net G&A expense of $4.27 per BOE decreased 5 percent from the same period a year ago.

-- Interest expense increased 9 percent to total $10.4 million largely due to prior-year reclassification of certain interest expense to discontinued operations.

CY14 Financial Summary

 
Reconciliation of Consolidated GAAP Net Income to Adjusted
Income from Continuing Operations
[See "Non-GAAP Financial Measures" beginning on pp 19 for more
information]
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         CY14                                                                                                                                                 CY13
                                                          $M                                                $/dil. sh.                                                                                         $M                                               $/dil. sh.                    
-------------------- -------------------------------------------- -------------------- -------------------- -------------------- ----------------------------------------------------------------------- -------------------- --------------------------------------------------------------------                                           -------------------- ---------------------------------------------------------------------- -------------------- --------------------------------------------------------------------
                     Net Income All Operations (GAAP)                                                                                               $  568,032                                             $  7.75                                                                                                                             $ 204,554                                             $  2.82
                     Less: Non-cash Mark-to-Market gain/(loss)                                                                                         201,790                                                                                      2.75                                                                                                                               (30,574 )                                                                                   (0.42 )
                     Less: Asset Impairment                                                                                                           (257,298 )                                                                                   (3.51 )                                                                                                                              (8,866 )                                                                                   (0.12 )
                     Less: Dry hole expense                                                                                                             (5,891 )                                                                                   (0.08 )                                                                                                                              (1,286 )                                                                                   (0.02 )
  Less: Discontinued Operations                         468,389          6.39                                                    62,673          0.86    
-------------------- -------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- --------------------                                           -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- --------------------
  Adj. Income Continuing Operations (Non-GAAP)                          $  161,042                          $  2.20                              $ 182,607                          $  2.52    
==================== ============================================ ==================== ==================== ==================== ==================== ======== ==================== ==================== ==================== ==================== ===== ==================== ==================== ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ===== ==================== ====================
Note: Per share amounts may not sum due to rounding
 

After-tax asset impairments in 2014 included $142 million for San Juan Basin held-for-sale assets; $59 million for wells in Delaware Basin Tiers 2 and 3 as a result of low commodity prices; and $34 million of unproved leasehold primarily in Delaware Basin Tiers 2 and 3.

 
Production from Continuing Operations by Product
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
    Commodity        CY14          CY13            Change         
-------------------- ----------- -------------------- -------------------- -------------------- ----- --------------------                                           -------------------- ----- -------------------- -------------------- -----------------------------------------
                     MMBOE                                               MMBOE       
                                                                           -------------------- ----- --------------------                                           -------------------- ----- -------------------- -------------------- -----------------------------------------
                     Oil                                                      11.8                                                10.4             13 %
                     NGL                                                                          4.1                                                                                       3.2                                                   28 %
  Natural Gas         9.8                                                 9.7              1 %          
-------------------- ----------- -------------------- -------------------- -------------------- ----- --------------------                                           -------------------- ----- -------------------- -------------------- ---------- --------- --------------------
    Total            25.7          23.3             10 %          
-------------------- ----------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- ---------- --------- --------------------
Note: Totals may not sum due to rounding
 
 
Production from Continuing Operations by Area
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
            Area                  CY14          CY13                  Change               
-------------------- ------------------------ -------------------- -------------------- -------------------- ----- --------------------                                           -------------------- ----- -------------------- -------------------- -----------------------------------------------------
                                  MMBOE                                               MMBOE                   
                                                                                        -------------------- ----- --------------------                                           -------------------- ----- -------------------- -------------------- -----------------------------------------------------
                     Midland Basin                                                          7.4                                                 5.1             45  %
                         Wolfberry                                                                             5.3                                                                                       5.0                                            
                         Wolfcamp/Cline                                                                        2.1                                                                                       0.1
                     Delaware Basin                                                                            5.8                                                                                       4.7                                                   23  %
                        3rd Bone Spring/Other                                                                  4.6                                                                                       4.3
                        Wolfcamp                                                                               1.2                                                                                       0.4
  Central Basin Platform           4.1                                                 4.4             (7 )%                     
-------------------- ------------------------ -------------------- -------------------- -------------------- ----- --------------------                                           -------------------- ----- -------------------- -------------------- ---------- --------------------- --------------------
                      Total Permian Basin                                                                     17.3                                                                                      14.2                                                   22  %
  San Juan Basin/Other             8.4                                                 9.1             (8 )%                     
-------------------- ------------------------ -------------------- -------------------- -------------------- ----- --------------------                                           -------------------- ----- -------------------- -------------------- ---------- --------------------- --------------------
    Total                         25.7          23.3             10  %  
==================== ======================== ==================== ==================== ==================== ===== ==================== ==================== ==================== ==================== ===== ==================== ==================== ========== ===================== ====================
Note: Totals may not sum due to rounding
 
 
Average Realized Sales Prices from Continuing Operations
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
         Commodity             CY14          CY13                 Change           
-------------------- --------------------- -------------------- -------------------- ------------------------------ -------------------- ------------------------------ -------------------- ----------------------------------------------
  Oil (per barrel)            $ 84.07       $ 87.65      (4 )%
                     NGL (per gallon)                                                  $  0.68                                             $  0.75                                            (9 )%
  Natural Gas (per Mcf)       $  4.32       $  4.19       3  %  
-------------------- --------------------- -------------------- -------------------- --- ----- -------------------- -------------------- --- ----- -------------------- -------------------- --- --------------------- --------------------
                                                                                                                                                                                                                        
 
Expenses from Continuing Operations (per BOE, except interest
expense)
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             Expenses                  CY14           CY13                  Change            
-------------------- ----------------------------- -------------------- -------------------- ------------------------------- -------------------- ------------------------------- -------------------- -----------------------------------------------
  LOE*                                 $ 10.68        $ 11.06       (3 )%
                     Production & ad valorem taxes                                              $  3.97                                              $  4.04                                             (2 )%
                     DD&A                                                                       $ 21.17                                              $ 19.32                                             10  %
                     Net G&A                                                                    $  4.75                                              $  4.89                                             (3 )%
  Interest ($MM)                       $  37.8        $  39.7       (5 )%                     
-------------------- ----------------------------- -------------------- -------------------- ---- ----- -------------------- -------------------- ---- ----- -------------------- -------------------- ---- --------------------- --------------------
*Production costs + workovers and repairs + marketing and
transportation
 

Energen Signs Purchase & Sale Agreement for San Juan Basin Gas Assets

Energen has agreed to sell the majority of its natural gas assets in the San Juan Basin to a private company for $395 million. The assets to be sold include approximately 985 net operated wells on some 205,000 net acres. These assets had proved, probable, and possible reserves at year-end 2014 of 244 MMBOE, of which 84 percent was natural gas and 16 percent was NGL; associated production in 2014 totaled 6.6 MMBOE. The sale is expected to close by March 31, 2015, and have an effective date of January 1, 2015.

Wolfcamp, Cline, and Mancos Potential Drilling Inventory Totals 5,590 Wells

Energen updated its unrisked potential drilling inventory as of year-end 2014. Plays included in this inventory are three benches of the Wolfcamp shale in the Midland Basin, the Cline shale in the Midland Basin, four benches of the Wolfcamp shale in the Delaware Basin, and one bench in the Mancos oil formation in the San Juan Basin. The company’s total unrisked potential drilling inventory is 5,590 net locations on approximately 66,000 net acres in the Midland Basin, 113,300 net acres in the Delaware Basin, and 91,000 net acres in the San Juan Basin.

Changes to the inventory include the addition of the San Juan Basin Mancos oil potential as well as a fourth Wolfcamp bench in the Delaware Basin along with an increase in spacing in the Delaware Basin to 880 feet and the exclusion of Tier 3 locations; in the Midland Basin, previously identified Cline potential in Mitchell County was excluded. Later in the year, subject to supporting well results, Energen plans to quantify its Spraberry potential in the Midland Basin; this could result in a significant increase in the company’s already-deep inventory.

                                                                                                                                                                                                                                         
-------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
  Midland Basin Wolfcamp/Cline Potential by County                                                                                                                                                                                                                                      
                     (unrisked,
                     660-foot spacing, 4,400’/6,700’/7,500’ lateral lengths)
-------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                         --------------------
                                                         Wolfcamp A                                                                                                   Wolfcamp B                                                                                                                Wolfcamp C                                                                                                                  Cline                                                 
-------------------- -------------------- --------------------                                           -------------------- -------------------------------------------------------------------------------------------------------------------------                                           -------------------- -------------------------------------------------------------------------------------------------------------------------                                           -------------------- --------------------------------------------------------------------------------------------------------------------------------------------------                                           -------------------- -------------------------------------------------------------------------------------------------------------------------
                                                                                            Net             Net                                                    Net             Net                                                         Net                          Net                                                           Net             Net   
                                                                                                                               Locations                                                                                     Acres                                                                                      Locations                                                                                     Acres                                                                                           Locations                                                                                                  Acres                                                                                             Locations                                                                                     Acres
                                                                                                         -------------------- --------- --------------------                                           -------------------- ------ --------------------                                           -------------------- --------- --------------------                                           -------------------- ------ --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ------ --------------------
                     Glasscock                                                                                   224                                               24,248                                                     221                                               25,654                                                                236                                                             25,255                                                     238                                               25,582
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------
                     Howard                                                                                                          74                                                                                      6,183                                                                                            75                                                                                      6,183                                                                                                                                                                                                                                  32                                                                                      2,893
                     Martin                                                                                                         209                                                                                     18,616                                                                                           210                                                                                     18,606                                                                                                                                                                                                                                                                                                             207                                                                                     17,697
                     Midland                                                                                                         87                                                                                      9,029                                                                                            80                                                                                      8,383                                                                                                                                                                                            35                                                                                      4,253
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------
                     Reagan                                                                                                          61                                                                                      7,368                                                                                            60                                                                                      6,047                                                                                    40                                                              6,047                                                                         21                                                                                      2,291
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------
  Upton                                                                      9                                                  889                                                       7                                                  649                                                                                                                                                       1                                                   76  
-------------------- -------------------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ------ --------------------                                           -------------------- --------- --------------------                                           -------------------- ------ --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ------ --------------------
    Total                            664         66,333               653         65,523                          276                       31,302               534         52,792  
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                         
-------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
  Delaware Basin Wolfcamp Potential by County                                                                                                                                                                                                                                      
                     (unrisked,
                     880-foot spacing, 4,400’ lateral lengths)
-------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                         --------------------
                                                               Wolfcamp A                                                                                                               Wolfcamp B                                                                                                              Wolfcamp B/C                                                                                                              Wolfcamp C                                                     
-------------------- -------------------- --------------------                                           -------------------- -------------------------------------------------------------------------------------------------------------------------------------                                           -------------------- -------------------------------------------------------------------------------------------------------------------------------------                                           -------------------- -------------------------------------------------------------------------------------------------------------------------------------                                           -------------------- -------------------------------------------------------------------------------------------------------------------------------------
                                                           Net                    Net                                                         Net                    Net                                                         Net                    Net                                                         Net                    Net   
                                                                                                                                    Locations                                                                                            Acres                                                                                           Locations                                                                                            Acres                                                                                           Locations                                                                                            Acres                                                                                           Locations                                                                                            Acres
-------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ------- --------------------
                     Tier 1                                                                              575                                                64,395                                                                562                                                62,085                                                                475                                                54,666                                                                481                                                54,666
  Tier 2                                                                              294                                                31,071                                                                141                                                30,350                                                                137                                                27,700                                                                233                                                27,700  
-------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ------- --------------------
  Tier 3                                                                                                              17,831                                                                                                17,831                                                                                                17,831                                                                                                17,831  
-------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ------- --------------------
    Total                                       869         113,297                          703         110,266                          612         100,197                          714         100,197  
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                     
-------------------- -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
  San Juan Basin Mancos Oil Potential by Area                                                                                                                                                                           
                     (unrisked,
                     1,320-foot spacing, 4,400’ lateral lengths)
-------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------           --------------------
             Net Locations         Net Acres 
-------------------- -------------------- --------------------                                           -------------------- ------------- --------------------                                           -------------------- --------- --------------------
                     Southwest                                                                    125                                                  20,154
                     South Central                                                                                                       53                                                                                         8,609
  Southeast/Jicarilla                                                          387                                                  62,290  
-------------------- -------------------- --------------------                                           -------------------- ------------- --------------------                                           -------------------- --------- --------------------
    Total                                565            91,053  
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------------- --------- --------------------
                                                                                                                                                                                                                                           

Southern Glasscock Development Wells Performing (3-Stream)

                      
-------------------- ------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                     4Q14                     CY14          
-------------------- ------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Wells drilled (gross/net)                    26/26                    60/58
                     Wells completed                                                                    21/21                                                          36/34
  Wells awaiting completion                    24/24                    24/24  
-------------------- ------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                              

During 2014, Energen implemented a development program in the Wolfcamp shale in Glasscock County in the Midland Basin. This program focused on pad drilling stacked A & B laterals with lengths of 6,700’ and 7,500’. Late in 2014, the company added some 4,400’ lateral length wells to the program to test a tighter spacing configuration. Nine wells with short laterals were drilled in the 4th quarter but have not been completed. In total, Energen drilled 60 gross (58 net) wells in the development program in 2014 and completed 36 gross (34 net) wells.

During the 4th quarter, the company tested 12 gross (12 net) wells; these wells generated average peak 24-hour IP rates of 977 boepd (77% oil) and peak 30-day average rates of 914 boepd (77% oil). In aggregate, the 27 gross (26 net) wells tested in 2014 generated average peak 24-hour IPs (3-stream) of 975 boepd (75% oil) and peak 30-day average rates (3-stream) of 821 boepd (75% oil).

The early performance of these wells has met or exceeded the company’s unrisked type curves that support EURs of 770 MBOE for 6,700’ lateral lengths and 850 MBOE for 7,500’ lateral lengths. The company today is issuing a type curve for its southern Glasscock Wolfcamp A- and B-bench development program wells, with the lateral length normalized to 7,000’; normalized production for 4th quarter and calendar year 2014 wells have been plotted on the curve. (See type curve on Energen’s Web site at www.energen.com).

Midland and Delaware Basin Exploration Program Results

Energen tested six new exploratory wells in the Permian Basin during the 4th quarter of 2014, including its first two Wolfcamp C wells in the Midland Basin. [See locator maps at www.energen.com]

 
Permian Basin Exploratory Well Results (3-Stream)
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
          Well Name                     Zone/                                                           Lateral length (ft)                                                       Frac                                                                                                                                                                  Peak 24-Hour IP                                                                                                                                                                                                                                                                                                                      Peak 30-day Avg.
                                                                                                                                      County                                                                                                                                                                                                                                                                                            Stages
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     Drilled*                     Completed                                                                             Boepd                        %Oil                         %NGL                         %Gas                                             Boepd                        %Oil                         %NGL                         %Gas          
-------------------- ------------------------                                           -------------------- -------------------- --------------                      -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                            -------------------- --------------------                      ------ -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                         -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------
  Dickenson SN 20-17 #101H                                                 WC A/Martin                                                        6,250                                                       5,800                                                24                                                          614                                                                83                                                                 10                                                         7                                                        463                                                                72                                                                 16                                                        12  
-------------------- ------------------------ --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -- --------------------
  Dickenson SN 20-17 #201H                                                 WC B/Martin                                                        6,800                                                       6,300                                                26                                                         1,376                                                               85                                                                  8                                                         6                                                        806                                                                78                                                                 13                                                        10  
-------------------- ------------------------ --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -- --------------------
    Brazos SN 17-8 #304H                                                 WC C/Glasscock                                                       6,500                                                       5,925                                                26                                                          848                                                                48                                                                 28                                                        24                                                        664                                                                67                                                                 18                                                        15  
-------------------- ------------------------ --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -- --------------------
    Daniel SN 10-3 #303H                                                 WC C/Glasscock                                                       8,100                                                       7,580                                                31                                                         1,087                                                               65                                                                 21                                                        14                                                        623                                                                65                                                                 21                                                        14  
-------------------- ------------------------ --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -- --------------------
        Ron 56-8 #1H                                                      WC BC/Reeves                                                        4,800                                                       4,050                                                17                                                         1,734                                                               11                                                                 40                                                        49                                                       1,293                                                               12                                                                 39                                                        49  
-------------------- ------------------------ --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------                                           -------------------- -- --------------------
      Matador 6-33 #2H               WC B/Reeves                  4,825                 4,200          22                   1,292                         68                           17                  15                  864                          69                           17                  14  
-------------------- ------------------------ -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -- --------------------
* Represents distance from vertical departure to toe
 

Energen’s first two Wolfcamp C wells in Glasscock County tested at attractive initial rates. The company also tested its first two wells in southern Martin County, close to the Midland County line. In 2014, Energen drilled 16 gross (16 net) wells in its Midland Basin exploratory program; three of the wells originally planned for 2014 were moved to 2015. Energen completed and tested 12 gross (12 net) wells during the year; the remaining 4 gross (4 net) wells drilled are currently flowing back, including a third Wolfcamp C well in Glasscock County, two lower Spraberry test wells, and a Wolfcamp B in Howard County.

In the Delaware Basin, the Matador 6-33 #2H was a very nice Wolfcamp B well tested during the 4th quarter. The Ron 56-8 #1H, a BC-bench well in Reeves County, also had good rates. Energen’s 2014 Delaware Basin Wolfcamp program resulted in the drilling of 11 gross (10 net) wells. Two wells planned for 2014 were moved to 2015. Six gross (five net) wells were completed and tested during the year, and another 5 gross (5 net) wells are in various stages of completion and flow back.

3P and Contingent Resources top 3.3 Billion BOE

Energen’s proved reserves at year-end 2014 totaled a record 372.7 MMBOE and represented a 7 percent increase from the prior year. Energen delivered 401% drillbit reserve replacement by adding net proved reserves of 103.7 MMBOE (excludes the removal of 53.4 MMBOE of proved undeveloped reserves and positive pricing revisions of 3.9 MMBOE) at a drillbit finding and development cost of approximately $14.00 per BOE. Total reserve revisions of 75.6 MMBOE primarily reflect Midland Basin Wolfberry PUDs moved to "probable" as a result of updated drilling plans that slow the pace of vertical Wolfberry development in deference to higher-return horizontal wells.

Oil and NGL reserves at year end represented approximately 68 percent of total proved reserves and are expected to increase as Energen continues to focus on drilling its liquids-rich assets. Pro forma for the sale of the majority of the company’s San Juan Basin gas assets, oil and NGL reserves represent 80 percent of the company’s proved reserves.

Commodity prices used for calculating reserves at year-end 2014 were $94.98 per barrel of oil (down from $96.94 in 2013), $4.35 per thousand cubic feet (Mcf) for natural gas (up from $3.67 in 2013); and an average of $0.75 per gallon of NGL before transportation and fractionation (essentially unchanged from $0.76 per gallon in 2013).

 
Proved Reserves by Basin (MMBOE)
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
          Basin             YE13        2014             2014          Additions            Price/Other             YE14  
                                                                                                                                    Production                                            Acquisitions/                                                                                                       Revisions
                                                                                                                                                                                         (Divestitures)
-------------------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- ---------  -------------------- -------------------- ------------  -------------------- -------------------- --------- -------------------- -------------------- -------------------------  -------------------- -------------------- ----- --------------------
  Permian                  246.6     (17.3 )            0.1               128.6     (77.2 )                        280.8
                     San Juan Basin/Other                                            97.4                                            (8.4 )                                                  0.0                                                       1.3                                             1.6                                                                 91.9
  NL/ETX                     3.9      (0.2 )           (3.7 )               0.0       0.0         0.0  
-------------------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- ----- ---- -------------------- -------------------- ------- ----- -------------------- -------------------- --------- -------------------- -------------------- ----- -------------------- -------------------- -------------------- ----- --------------------
    TOTAL                  347.8     (25.8 )           (3.6 )             129.9     (75.6 )                        372.7  
==================== ==================== ==================== ==================== ===== ==================== ==================== ===== ==== ==================== ==================== ======= ===== ==================== ==================== ========= ==================== ==================== ===== ==================== ==================== ==================== ===== ====================
NOTE: Totals may not sum due to rounding
 
 
Proved Reserves by Commodity (MMBOE)
 
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
        Commodity         2014     2013              % Change          
-------------------- ------------------- -------------------- -------------------- ---- -------------------- -------------------- ---- -------------------- -------------------- ----------------------------------------------
  Oil                      181      165       10
                     Natural gas liquids                                             73                                             63                                             16
  Natural gas              119      120       (1 )                     
-------------------- ------------------- -------------------- -------------------- ---- -------------------- -------------------- ---- -------------------- -------------------- ---- -------------------- --------------------
    TOTAL                  373      348        7    
==================== =================== ==================== ==================== ==== ==================== ==================== ==== ==================== ==================== ==== ==================== ====================
                                                                                                                                                                                                            
 
YE2014 3P Reserves & Contingent Resources (MMBOE)
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Basin             Proved     Probable     Possible     Contingent      Total 
-------------------- ---------------------- -------------------- -------------------- ------ -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- ---------- -------------------- -------------------- ----- --------------------
  Permian Basin                 281          226          279          1,950     2,736  
-------------------- ---------------------- -------------------- -------------------- ------ -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- ---------- -------------------- -------------------- ----- --------------------
  Delaware Basin                 37           21            8          1,407     1,473  
-------------------- ---------------------- -------------------- -------------------- ------ -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- ---------- -------------------- -------------------- ----- --------------------
  Wolfcamp/Wolfbone              12           17            8          1,407     1,443
  3rd Bone Spring/Other          25            4           NM             NM        30  
-------------------- ---------------------- -------------------- -------------------- ------ -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- ---------- -------------------- -------------------- ----- --------------------
  Midland Basin                 184          194          232            543     1,154  
-------------------- ---------------------- -------------------- -------------------- ------ -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- ---------- -------------------- -------------------- ----- --------------------
                     Wolfcamp                                                            114                                                133                                                167                                                  362                                             776
                     Cline/Other                                                           2                                                  2                                                 65                                                  181                                             250
  Wolfberry                      68           60           NM             NM       128  
-------------------- ---------------------- -------------------- -------------------- ------ -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- ---------- -------------------- -------------------- ----- --------------------
  Central Basin Platform         60           10           39            0.0       109  
-------------------- ---------------------- -------------------- -------------------- ------ -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- ---------- -------------------- -------------------- ----- --------------------
  San Juan/Other                 92           63          147            302       604  
-------------------- ---------------------- -------------------- -------------------- ------ -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- ---------- -------------------- -------------------- ----- --------------------
                     Divestiture                                                          69                                                 60                                                115                                                  125                                             369
                     Remaining                                                            23                                                  3                                                 32                                                  177                                             235
    TOTAL                       373          289          427          2,252     3,340  
==================== ====================== ==================== ==================== ====== ==================== ==================== ======== ==================== ==================== ======== ==================== ==================== ========== ==================== ==================== ===== ====================
NOTE: Totals may not sum due to rounding
 

The definitions of probable and possible reserves imply different probabilities of potential recovery in each classification; the quantities reported here are unrisked and based on the Company’s best estimate of current costs to drill wells in each basin/area and bring associated production to market.

Capital, Production and Financial Guidance

Energen plans to invest approximately $1.0 billion of capital in its 2015 drilling and development program. Capital reflects a decrease in service costs of approximately 10 percent; continued low commodity prices could drive service costs in the Permian Basin lower as the year progresses. More than 50 percent of 2015 drilling and development capital will be focused in the company’s Midland Basin Wolfcamp and Spraberry appraisal and development programs. Capital investment for drilling and development in 2015 reflects a 26 percent decrease from the $1.36 billion invested in 2014. In 2014, Energen also invested another $71 million for acquisitions of proved properties and unproved leasehold (UPLH), bringing total drilling, development, and acquisition/UPLH capital in 2014 to $1.4 billion.

 
2015 Capital, Drilling and Production Summary
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
              2015e             Operated           Operated Wells  
                                                                                         Capital                                                    Rigs                                                    to Be Drilled
                                                                                          ($MM)                                                                                                              Gross (Net)
-------------------- ---------------------- -------------------- -------------------- ----------  -------------------- -------------------- -------------------- -------------------- -------------------- ------------   --------------------
  Midland Basin                $ 665 530             5-8*            
                       Wolfcamp                                                               515
                         Development                                                          437                                                                                                            97  (89 )
                         Exploration                                                           78
                       Spraberry                                                               68                                                                                                            68  (64 )
                       Wolfberry                                                               27                                                                                                             8   (8 )
                       SWD/Facilities                                                          45                                                                                                             7   (7 )
                       Non-operated/Other                                                      10                                                                                                            14  (10 )
                                                                                                                                                                                                                           
                     Delaware Basin                                                     $     187                                                    2+
                       Bone Spring                                                             10
                       Wolfcamp                                                                85
                       Wolfbone                                                                13                                                                                                            14  (13 )
                       Lease extensions                                                        37                                                                                                             3   (2 )
                       SWD/Facilities                                                          39                                                                                                             8   (8 )
                       Non-operated/Other                                                       3                                                                                                             3   (3 )
                                                                                                                                                                                                                           
                     Other Permian                                                      $      12
                       Waterflood injectors                                                     3
                       Facilities/C02                                                           6                                                                                                             6   (6 )
                       Non-operated/Other                                                       3                                                                                                             6   (6 )
                                                                                                                                                                                                                           
                     San Juan Basin/Other                                               $      73                                                     1
                       Mancos                                                                  52
                       Facilities                                                               1
                       Non-operated/Other                                                      20
                                                                                                                                                                                                              8   (8 )
  Net Carry-in/Carry Out       $      63              8   (8 )     
-------------------- ---------------------- -------------------- -------------------- --- ------- -------------------- -------------------- -------------------- -------------------- -------------------- ---- ---- ---- --------------------
  TOTAL                        $   1,000             8-11              125 (116 )     
==================== ====================== ==================== ==================== === ======= ==================== ==================== ==================== ==================== ==================== ==== ==== ==== ====================
                                                                                                                                                                                                                           

Note: "Facilities" capital includes artificial lift and central gathering facilities; "Other" capital includes payadds and refracs

* Includes 2 horizontal rigs and 1 vertical rig each running for 1/2 year

+ Both rigs run for 1/2 year

DRILLING PLANS

Midland Basin (operated): Horizontal drilling in the Midland Basin is the focus of Energen’s 2015 capital and drilling programs. Five full-year and two partial-year rigs will be employed to drill an estimated 68 gross wells in the company’s Wolfcamp A & B development program; 57 of these wells have lateral lengths of 6,700’ and 7,500’. Plans for 2015 call for the development program to expand from southern Glasscock County to Martin County; 44 gross wells are slated to be drilled in Glasscock County and 13 gross wells to be drilled in Martin County. The cost to drill and complete these wells is estimated to be $6.5-$7.5 million per well.

The other 11 gross development program wells will be drilled with 4,400’ laterals in a continuation of a 20-well program begun in December 2014 to test tighter spacing concepts. All 20 wells are being drilled in southern Glasscock County at an estimated average drill-and-complete cost of $6.0-$6.3 million per well.

During 2015 Energen expects to complete 68 gross (66 net) wells in the development program, including 24 gross (24 net) wells from the 2014 program.

In addition to the development program, Energen plans to drill 15 gross appraisal wells in the Midland Basin. These include seven Spraberry tests and five Wolfcamp wells with lateral lengths of 6,700’ and 7,500’; the budgeted costs to drill and complete these wells are estimated to range from $9.0-$10.0 million per well. The other three Wolfcamp appraisal wells will test 10,000’ laterals at an estimated drill-and-complete cost of $11.5-$12.0 million per well. At current low commodity prices, the company has no plans to drill Cline shale wells.

One vertical rig is scheduled to run for part of 2015 to drill 14 gross Wolfberry wells at an average drill-and-complete cost of $2.6 million per well. With the drilling of these wells, Energen’s Midland Basin acreage position is held by production.

Delaware Basin (operated): The focus of Delaware Basin drilling in 2015 is on retaining leasehold. To this end, the company has paid $36.8 million to extend certain leases and also will drill six Tier 1 wells and two Tier 2 wells at an estimated cost to drill and complete of $10.0-$11.0 million per well; three vertical Wolfbone wells also are scheduled to be drilled at an average cost of $4.0-$4.5 million per well. In addition, Energen plans to drill three 3rd Bone Spring wells in the Delaware Basin at an average cost of $7.0-$7.5 million per well. Plans call for two horizontal rigs to run for parts of the year.

All planned Delaware Basin wells drilled in 2015 are expected to be completed by year end.

San Juan Basin (operated): Energen’s delineation work in the Mancos oil formation in the San Juan Basin begins in 2015 with a one-rig program. Current plans are to drill six wells in the South Central area, one well in the Southwest area, and one in the Southeast/Jicarilla area. The average cost to drill and complete is estimated to be $6.5 million per well. All eight wells are expected to be completed by year end.

Non-operated Activities: Energen plans to participate as a 50 percent working interest partner in six Mancos oil wells that WPX Energy plans to drill and operate in 2015. Elsewhere, Energen’s non-operated activity is minimal.

1Q15 AND CY15 PRODUCTION

Energen’s 2015 production (excluding volumes from the company’s San Juan Basin divestiture package) is estimated to range from 21.4-22.4 MMBOE (58,545-61,285 boepd), with a midpoint of 21.9 MMBOE. This reflects an increase of 15 percent from comparable, adjusted 2014 production volumes of 19.1 MMBOE. First quarter 2015 production is estimated to range from 4.4-4.8 MMBOE (4,889-5,333 boepd), with a midpoint of 4.6 MMBOE.

Severe winter weather across the Permian Basin in late December/early January is estimated to negatively affect first quarter and calendar year 2015 production by 225 MBOE, with 61 percent of the impact being felt in the Midland Basin.

The company also estimates that a third party liquids handling issue that emerged in late 2014 in the Delaware Basin will negatively affect first quarter production by approximately 210 MBOE and calendar year production by approximately 285 MBOE. Due to an increase in liquids in the gas stream in the Delaware Basin, Energen’s gas gatherer/processor is modifying its plant facilities to handle the liquids load and is adding compression; the issue is expected to be resolved in May 2015.

First quarter and calendar year 2015 production estimates also reflect longer flow-back periods for certain wells in the company’s Midland Basin Wolfcamp development program.

 
Production from Continuing Operations by Play, Pro Forma to
Exclude San Juan Basin Divestiture
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
              Area                     2015e Midpoint          2014                  Change               
-------------------- ---------------------------- -------------------- -------------------- -------------------- -------------------- -------------- --------------------                                           -------------------- ----- -------------------- -------------------- -----------------------------------------------------
                                            MMBOE                                                    MMBOE                   
                                                                                                                 -------------------- -------------- --------------------                                           -------------------- ----- -------------------- -------------------- -----------------------------------------------------
                     Midland Basin                                                                                           11.6                                                 7.4             57  %
                         Wolfcamp/Spraberry/Cline                                                                                                7.5                                                                                       2.1                                                        
                         Wolfberry                                                                                                               4.1                                                                                       5.3
                     Delaware Basin                                                                                                              4.8                                                                                       5.8                                                  (17 )%
                        3rd Bone Spring/Other                                                                                                    3.4                                                                                       4.6
                        Wolfcamp                                                                                                                 1.4                                                                                       1.2
  Central Basin Platform                          3.5                                                 4.1            (15 )%                     
-------------------- ---------------------------- -------------------- -------------------- -------------------- -------------------- -------------- --------------------                                           -------------------- ----- -------------------- -------------------- ---------- --------------------- --------------------
                       Total Permian Basin                                                                                                      19.9                                                                                      17.3                                                   15  %
  San Juan Basin/Other                            2.0                                                 1.8             11  %  
-------------------- ---------------------------- -------------------- -------------------- -------------------- -------------------- -------------- --------------------                                           -------------------- ----- -------------------- -------------------- ---------- --------------------- --------------------
     Total                                       21.9          19.1             15  %  
==================== ============================ ==================== ==================== ==================== ==================== ============== ==================== ==================== ==================== ==================== ===== ==================== ==================== ========== ===================== ====================
NOTE: Totals may not sum due to rounding
 
                                                                                                                                                                 
Production from Continuing Operations by Product, Pro Forma to
Exclude San Juan Basin Divestiture
                                                                                                                             
----------------------------------------------------------------------------------------------------------------------- -------------------- --------------------------------------------------------------------------- -------------------- -------------------------------------------------------------------------------
                                                        Midpoint 2015e                                                  2014                             
                                                                                             ---------------------------------------------------                                              ---------------------------------------------------
             Commodity               MMBOE     boepd      MMBOE     boepd     % change  
-------------------- ----------------------------- -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- -------- --------------------
                     Oil                                                                      14.0                                           38,375                                            11.8                                           32,323                                               19 %
                     NGL                                                                       3.7                                           10,126                                             3.4                                            9,337                                                9 %
  Natural Gas                         4.2     11,383       3.9     10,660          7 %  
-------------------- ----------------------------- -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- -------- --------------------
    Total Continuing Operations      21.9     59,884      19.1     52,320         15 %  
-------------------- ----------------------------- -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- -------- --------------------
 
Production from Continuing Operations by Basin/Quarter, Pro
Forma to Exclude San Juan Divestiture
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
              Basin                                                              1Q15e Midpoint                                                                                            2Q15e Midpoint                                                                                           3Q15e Midpoint                                                                                           4Q15e Midpoint                                           
                                                                                                                 -------------------- -----------------------------------------------------------------------------------------------------------------------                                           -------------------- ---------------------------------------------------------------------------------------------------------------------                                           -------------------- ---------------------------------------------------------------------------------------------------------------------                                           -------------------- ---------------------------------------------------------------------------------------------------------------------
                                                           MMBOE          boepd                                                 MMBOE         boepd                                                MMBOE         boepd                                                MMBOE         boepd  
-------------------- ---------------------------- --------------------                                           -------------------- ----- --------------------                                           -------------------- -------- --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------
                     Midland Basin                                                                                   2.3                                               1 25,078                                                 2.8                                               30,923                                                 3.2                                               34,782                                                 3.4                                               36,413
                     Delaware Basin                                                                                                     1.0                                                                                     1 11,244                                                                                       1.2                                                                                     13,560                                                                                       1.3                                                                                     14,000                                                                                       1.2                                                                                     13,337
                     Central Basin Platform/Other                                                                                       0.9                                                                                     1 10,000                                                                                       0.9                                                                                      9,835                                                                                       0.9                                                                                      9,544                                                                                       0.9                                                                                      9,283
  San Juan Basin/Other                                                         0.4                                                  4,644                                                 0.4                                                4,692                                                 0.5                                                5,924                                                 0.6                                                6,217  
-------------------- ---------------------------- --------------------                                           -------------------- ----- --------------------                                           -------------------- -------- --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------
    Total Production                     4.6           50,956           5.4         59,000           5.9         64,239           6.0         65,250  
==================== ============================ ==================== ==================== ==================== ==================== ===== ==================== ==================== ==================== ==================== ======== ==================== ==================== ==================== ==================== ===== ==================== ==================== ==================== ==================== ====== ==================== ==================== ==================== ==================== ===== ==================== ==================== ==================== ==================== ====== ==================== ==================== ==================== ==================== ===== ==================== ==================== ==================== ==================== ====== ====================
NOTE: Totals may not sum due to rounding
 
 
Production from Continuing Operations by Commodity/Quarter, Pro
Forma to Exclude San Juan Basin Divestiture
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
        Commodity                                                        1Q15e Midpoint                                                                                           2Q15e Midpoint                                                                                          3Q15e Midpoint                                                                                          4Q15e Midpoint                                          
                                                                                                         -------------------- ----------------------------------------------------------------------------------------------------------------------                                           -------------------- --------------------------------------------------------------------------------------------------------------------                                           -------------------- --------------------------------------------------------------------------------------------------------------------                                           -------------------- --------------------------------------------------------------------------------------------------------------------
                                                  MBOE           boepd                                                MBOE          boepd                                               MBOE          boepd                                               MBOE          boepd  
-------------------- -------------------- --------------------                                           -------------------- ---- --------------------                                           -------------------- -------- --------------------                                           -------------------- ---- --------------------                                           -------------------- ------ --------------------                                           -------------------- ---- --------------------                                           -------------------- ------ --------------------                                           -------------------- ---- --------------------                                           -------------------- ------ --------------------
                     Oil                                                                                    3.0                                               1 33,300                                                3.5                                               38,187                                                3.8                                               40,880                                                3.8                                               41,087
                     NGL                                                                                                       0.7                                                                                      1 8,144                                                                                      0.9                                                                                      9,780                                                                                      1.0                                                                                     11,076                                                                                      1.1                                                                                     11,489
  Gas                                                                 0.9                                                1 9,522                                                1.0                                               11,033                                                1.1                                               12,283                                                1.2                                               12,685  
-------------------- -------------------- --------------------                                           -------------------- ---- --------------------                                           -------------------- -------- --------------------                                           -------------------- ---- --------------------                                           -------------------- ------ --------------------                                           -------------------- ---- --------------------                                           -------------------- ------ --------------------                                           -------------------- ---- --------------------                                           -------------------- ------ --------------------
    Total Production            4.6           50,956          5.4         59,000          5.9         64,239          6.0         65,250  
==================== ==================== ==================== ==================== ==================== ==================== ==== ==================== ==================== ==================== ==================== ======== ==================== ==================== ==================== ==================== ==== ==================== ==================== ==================== ==================== ====== ==================== ==================== ==================== ==================== ==== ==================== ==================== ==================== ==================== ====== ==================== ==================== ==================== ==================== ==== ==================== ==================== ==================== ==================== ====== ====================
NOTE: Totals may not sum due to rounding
 

1Q15 AND CY15 FINANCIAL GUIDANCE

Energen’s estimated expenses from continuing operations, pro forma to exclude San Juan Basin divestiture, are as follows:

                                                            
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                     Per BOE, except where noted                              1Q15                     CY15          
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  LOE (production costs, marketing & transportation)                      $11.70-$12.50            $10.15-$11.25
                     Production & ad valorem taxes (% of revenues, excluding hedges)                                                   10.3%                                                          8.9%
                     DD&A expense (per BOE)                                                                                        $24.65-$26.15                                                  $23.50-$25.75
                     General & administrative expense, net*                                                                            $6.85                                                          $5.67
                     Exploration expense (seismic, delay rentals, etc.)                                                             $0.70-$0.80                                                    $0.45-$0.50
  Interest expense ($MM)                                                   $11.5-$12.3              $44.0-$49.0      
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
*Excludes $0.87 per BOE in 1Q15 and $1.69 per BOE in CY15 for
pension and pension settlement expenses.
 

For comparison purposes, calendar year 2014 expenses pro forma to exclude the San Juan Basin divestiture were: LOE of $11.24 per BOE, production and ad valorem taxes of $4.55 per BOE, DD&A of $25.55 per BOE, net G&A $6.46 per BOE, exploration expense of $0.99 per BOE, and Interest Expense of $37.8 million.

2015 Hedge Position

Approximately 57 percent of the company’s 2015 production guidance midpoint of 21.9 MMBOE is hedged. Hedges also are in place that limit the company’s exposure to the Midland to Cushing differential. Energen has hedged the WTS Midland to WTI Cushing (sour oil) differential for 2.2 million barrels of oil production at an average price of $4.30 per barrel and the WTI Midland to WTI Cushing (sweet oil) differential for 7.4 million barrels at an average price of $4.62 per barrel. Energen estimates that approximately 79 percent of its oil production in 2015 will be sweet. Gas basis assumptions for all open contracts (March-December) are $0.17 per Mcf (basis actuals in January and February are $0.16 and $0.23, respectively).

 
The company’s current hedge position for 2015 is:
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
    Commodity          Hedge Volumes        CY15e Production          Hedge %           NYMEXe Price     
                                                                                                                                                                                                                           Midpoint
-------------------- ----------- --------------------                                           -------------------- ------------- --------------------                                           -------------------- ---------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------------------ --------------------
  Oil                                                          8.3 MMBO                                                     14.0 MMBO                                                    59 %                                                $ 89.30 per barrel  
-------------------- ----------- --------------------                                           -------------------- ------------- --------------------                                           -------------------- ---------------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------------------ --------------------
  Natural Gas            24.9 Bcf               24.9 Bcf               100 %           $ 4.34 per Mcf    
-------------------- ----------- -------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------------- ---------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------------------ --------------------
Note: Known actuals included
 

In the table above, basin-specific contract prices for natural gas have been converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen’s assumed basis differentials. Average realized oil and gas prices for Energen’s production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials; average realized oil prices also will reflect estimated oil transportation charges of $2.41 per barrel in 2015; and average realized NGL prices will be net of transportation and fractionation fees that are estimated to average $0.11 per gallon in the Permian Basin and $0.12-$0.17 per gallon in the San Juan Basin.

Energen’s assumptions for the commodity prices of unhedged production in 2015 are $57 per barrel of oil, $2.85 per Mcf of gas, and $0.45 per gallon of NGL. Assumed prices for unhedged Midland to Cushing basis differentials for sweet and sour oil are $2.80 and $2.25, respectively.

For unhedged production, every $1.00 change in the average NYMEX price of oil from $57 per barrel is estimated to have a $4.7 million impact on cash flows, and every 1-cent change in the average price of NGL from $0.45 per gallon is estimated to have a cash flows impact of $1.0 million.

Conference Call

Energen will hold its quarterly conference call Friday, February 13, at 11:00 a.m. EST. Members of the investment community may participate by calling 1-877-407-8289 (reference Energen earnings call). A live audio Webcast of the program as well as a replay may be accessed through Web site, www.energen.com.

Energen Corporation is an oil and gas exploration and production company with headquarters in Birmingham, Alabama. The company has 1.1 billion barrels of oil-equivalent proved, probable, and possible reserves and another 2.2 billion barrels of oil-equivalent contingent resources. These all-domestic reserves and resources are located primarily in the Permian Basin in west Texas. For more information, go to http://www.energen.com .

FORWARD LOOKING STATEMENT: 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.

Financial, operating, and support data pertaining to all reporting periods included in this release are unaudited and subject to revision.

 
                                                    
-------------------- ------------------------------------------------------------------- --------------------
                     Non-GAAP Financial Measures
                                                                                          
                     Adjusted Net Income is a Non-GAAP financial measure (GAAP refers to
                     generally accepted accounting principles) which excludes certain
                     non-cash mark-to-market derivative financial instruments. Adjusted
                     income from continuing operations further excludes gains and losses
                     on disposal of discontinued operations, income and losses from
                     discontinued operations, impairment losses and dry hole expense.
                     Energen believes that excluding the impact of these items is more
                     useful to analysts and investors in comparing the results of
                     operations and operational trends between reporting periods and
                     relative to other oil and gas producing companies.
                                                    
-------------------- ------------------------------------------------------------------- --------------------
                                                                                                       
                                                                                                                               -------------------- ---------------------------------------------------- -------------------- ----------------------------------------------------
                                                                                                                                
                                                                                                                                                                          Quarter Ended 12/31/2014                                          
                                                                                                                               -------------------- ------------------------------------------------------------------------------------------------------------------------------
  Energen Net Income ($ in millions except per share data)                         Net Income                          Per Diluted           
                                                                                                                                                                                                                                            Share
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------  -------------------- -------------------- ------------------------------  --------------------
                     Net Income (GAAP)                                                                                                                    65.4                                0.89
                     Non-cash mark-to-market gains (net of $94.1 tax)                                                                                   (167.3 )                                                                   (2.28 )
                     Asset impairment (net of $93.7 tax)                                                                                                 141.6                                                                      1.93
  Dry hole expense (net of $0.2 tax)                                           0.3             0.00    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- --------------------
  Adjusted Net Income from All Operations (Non-GAAP)                          40.0             0.55    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- --------------------
                     Loss from discontinued operations (net of $0.2 tax)                                                                                   1.1                                                                      0.02
  Gain on disposal of discontinued operations (net of $0.2 tax)               (0.0 )                             (0.00 )                     
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- --------------------
  Adjusted Income from Continuing Operations (Non-GAAP)                       41.1             0.56    
==================== =============================================================== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ====================
                                                                                                                                                                                                                                                               
                                                                                                                                                                
                                                                                                                               -------------------- ---------------------------------------------------- -------------------- ----------------------------------------------------
                                                                                                                                                                                                                                                               
                                                                                                                                                                          Quarter Ended 12/31/2013                                          
                                                                                                                               -------------------- ------------------------------------------------------------------------------------------------------------------------------
  Energen Net Income ($ in millions except per share data)                         Net Income                          Per Diluted           
                                                                                                                                                                                                                                            Share
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------  -------------------- -------------------- ------------------------------  --------------------
                     Net Income (GAAP)                                                                                                                    84.1                                                                      1.15
                     Non-cash mark-to-market gains (net of $0.5 tax)                                                                                      (0.2 )                                                                   (0.00 )
                     Asset impairment (net of $2.6 tax)                                                                                                    4.5                                                                      0.06
  Dry hole expense (net of $0.1 tax)                                           0.1             0.00    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- --------------------
  Adjusted Net Income from All Operations (Non-GAAP)                          88.6             1.21    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- --------------------
                     Income from discontinued operations (net of $9.0 tax)                                                                               (19.2 )                                                                   (0.26 )
  Gain on disposal of discontinued operations (net of $10.9 tax)             (19.3 )                             (0.26 )                     
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- --------------------
  Adjusted Income from Continuing Operations (Non-GAAP)                       50.1             0.69    
==================== =============================================================== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ====================
                                                                                                                                                                                                                                                               
                                                                                                                                                                
                                                                                                                               -------------------- ---------------------------------------------------- -------------------- ----------------------------------------------------
                                                                                                                                                                                                                                                               
                                                                                                                                                                        Year-to-Date Ended 12/31/2014                                       
                                                                                                                               -------------------- ------------------------------------------------------------------------------------------------------------------------------
  Energen Net Income ($ in millions except per share data)                         Net Income                          Per Diluted           
                                                                                                                                                                                                                                            Share
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------  -------------------- -------------------- ------------------------------  --------------------
                     Net Income (GAAP)                                                                                                                   568.0                                                                      7.75
                     Non-cash mark-to-market gains (net of $113.7 tax)                                                                                  (201.8 )                                                                   (2.75 )
                     Asset impairment (net of $159.5 tax)                                                                                                257.3                                                                      3.51
  Dry hole expense (net of $3.4 tax)                                           5.9             0.08    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- --------------------
  Adjusted Net Income from All Operations (Non-GAAP)                         629.4             8.59    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- --------------------
                     Income from discontinued operations (net of $17.9 tax)                                                                              (29.3 )                                                                   (0.40 )
  Gain on disposal of discontinued operations (net of $285.5 tax)           (439.1 )                             (5.99 )                     
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- --------------------
  Adjusted Income from Continuing Operations (Non-GAAP)                      161.0             2.20    
==================== =============================================================== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ====================
                                                                                                                                                                                                                                                               
                                                                                                                                                                
                                                                                                                               -------------------- ---------------------------------------------------- -------------------- ----------------------------------------------------
                                                                                                                                                                                                                                                               
                                                                                                                                                                        Year-to-Date Ended 12/31/2013                                       
                                                                                                                               -------------------- ------------------------------------------------------------------------------------------------------------------------------
  Energen Net Income ($ in millions except per share data)                         Net Income                          Per Diluted           
                                                                                                                                                                                                                                            Share
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------  -------------------- -------------------- ------------------------------  --------------------
                     Net Income (GAAP)                                                                                                                 204.554                                                                      2.82
                     Non-cash mark-to-market losses (net of $17.3 tax)                                                                                  30.574                                                                      0.42
                     Asset impairment (net of $5.0 tax)                                                                                                  8.866                                                                      0.12
  Dry hole expense (net of $0.7 tax)                                         1.286             0.02    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- --------------------
  Adjusted Net Income from All Operations (Non-GAAP)                       245.280             3.38    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- --------------------
                     Income from discontinued operations (net of $33.2 tax)                                                                            (59.079 )                                                                   (0.82 )
  Loss on disposal of discontinued operations (net of $2.0 tax)             (3.594 )                             (0.05 )                     
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- --------------------
  Adjusted Income from Continuing Operations (Non-GAAP)                    182.607             2.52    
==================== =============================================================== ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ====================
                                                                                                                                                                                                                                                               
                     Note: Amounts may not sum due to rounding
                                                                                                                                                                                                                                                           
                                                     
-------------------- -------------------------------------------------------------------- --------------------
  Non-GAAP Financial Measures
                                                                                           
                     Earnings before interest, taxes, depreciation, depletion,
                     amortization and exploration expenses (EBITDAX) is a Non-GAAP
                     financial measure (GAAP refers to generally accepted accounting
                     principles). Adjusted EBITDAX from continuing operations further
                     excludes income and losses from discontinued operations, gains and
                     losses on disposal of discontinued operations, certain non-cash
                     mark-to-market derivative financial instruments, impairment losses
                     and dry hole expense. Energen believes these measures allow analysts
                     and investors to understand the financial performance of the company
                     from core business operations, without including the effects of
                     capital structure, tax rates and depreciation. Further, this measure
                     is useful in comparing the company and other oil and gas producing
                     companies.
                                                     
-------------------- -------------------------------------------------------------------- --------------------
                                                                                                         
                                                                                                                                 -------------------- ---------------------------------------------------- -------------------- ----------------------------------------------------
                                                                                                                                                                      
                     Reconciliation To GAAP Information                                                                                                                        Quarter Ended 12/31                                            
                                                                                                                                 -------------------- ------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                 
  ($ in millions)                                                                       2014                                2013               
-------------------- ----------------------------------------------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ----------------------------------------------------
                                                                                                                                                                                                                                                                 
                     Energen Net Income (GAAP)                                                                                                              65.4                                                                      84.1
                     Interest expense                                                                                                                       10.4                                                                       9.5
                     Income tax expense                                                                                                                     17.4                                                                      20.9
                     Depreciation, depletion and amortization                                                                                              149.0                                                                     120.6
                     Accretion expense                                                                                                                       2.0                                                                       1.8
                     Exploration expense                                                                                                                     6.3                                                                       6.8
                     Dry hole expense                                                                                                                        0.5                                                                       0.2
                     Adjustment for asset impairment                                                                                                       235.3                                                                       7.1
                     Adjustment for mark-to-market gains                                                                                                  (261.5 )                                                                    (0.6 )
                     Adjustment for (income) loss from discontinued operations, net of                                                                       1.1                                                                     (19.2 )
                     tax
  Adjustment for gain on disposal of discontinued operations, net               (0.0 )                             (19.3 )                     
                     of tax
-------------------- ----------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- --------------------
  Energen Adjusted EBITDAX from Continuing Operations (Non-GAAP)               226.0            211.9    
==================== ================================================================= ==================== ==================== ==================== ========== ==================== ==================== ==================== ========== ==================== ====================
                                                                                                                                                                                                                                                                 
                     Note: Amounts may not sum due to rounding
                                                                                                                                                                                                                                                                 
 
                                                                                                                                                                          CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                                                                                                                                                                                               For
                                                                                                                                                                         the 3 months ending December 31, 2014 and 2013
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    4th Quarter                                                                           
                                                                                                                     -----------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                       
  (in thousands, except per share data)                                                  2014                                                         2013                                                 Change                       
-------------------- ----------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------   -------------------- -------------------- -----------------------------------------------   -------------------- -------------------- -----------------------------------------------   --------------------
                                                                                                                                                                                                                                                                                                                                                                             
                     Revenues
                     Oil, natural gas liquids and natural gas sales                                                                     $              286,747                                                                                   $ 328,571                                                                                   $ (41,824 )
                     Gain on derivative instruments, net                                                                                               325,521                                                                                       1,880                                                                                     323,641
  Loss on sale of assets and other                                            (833 )                             (489 )                             (344 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                           
        Total revenues                                                     611,435         329,962         281,473    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
                     Operating Costs and Expenses
                     Oil, natural gas liquids and natural gas production                                                                                74,571                                                                                      66,494                                                                                       8,077
                     Production and ad valorem taxes                                                                                                    20,961                                                                                      24,994                                                                                      (4,033 )
                     Depreciation, depletion and amortization                                                                                          148,996                                                                                     120,629                                                                                      28,367
                     Asset impairment                                                                                                                  235,301                                                                                       7,082                                                                                     228,219
                     Exploration                                                                                                                         6,872                                                                                       6,958                                                                                         (86 )
                     General and administrative                                                                                                         28,553                                                                                      27,122                                                                                       1,431
  Accretion of discount on asset retirement obligations                      1,958           1,808             150    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
        Total costs and expenses                                           517,212         255,087         262,125    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
  Operating Income                                                          94,223          74,875          19,348    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
                     Other Income (Expense)
                     Interest expense                                                                                                                  (10,397 )                                                                                    (9,504 )                                                                                      (893 )
  Other income                                                                 134           1,184          (1,050 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
        Total other expense                                                (10,263 )                           (8,320 )                           (1,943 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
                     Income From Continuing Operations Before Income Taxes                                                                              83,960                                                                                      66,555                                                                                      17,405
  Income tax expense                                                        17,441          20,922          (3,481 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
  Income From Continuing Operations                                         66,519          45,633          20,886    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
                     Discontinued Operations, net of tax
                     Income (loss) from discontinued operations                                                                                         (1,143 )                                                                                    19,188                                                                                     (20,331 )
  Gain on disposal of discontinued operations                                   42          19,272         (19,230 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
  Income (Loss) From Discontinued Operations                                (1,101 )                           38,460         (39,561 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
  Net Income                                                                   $               65,418                          $  84,093                          $ (18,675 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
                     Diluted Earnings Per Average Common Share
                     Continuing operations                                                                                              $                 0.91                                                                                   $    0.62                                                                                   $    0.29
  Discontinued operations                                                    (0.02 )                             0.53           (0.55 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
  Net Income                                                                   $                 0.89                          $    1.15                          $   (0.26 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
                     Basic Earnings Per Average Common Share
                     Continuing operations                                                                                              $                 0.91                                                                                   $    0.63                                                                                   $    0.28
  Discontinued operations                                                    (0.01 )                             0.53           (0.54 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
  Net Income                                                                   $                 0.90                          $    1.16                          $   (0.26 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
  Diluted Avg. Common Shares Outstanding                                    73,343          73,086             257    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
  Basic Avg. Common Shares Outstanding                                      72,988          72,628             360    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
  Dividends Per Common Share                                                   $                 0.02                          $   0.145                          $  (0.125 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                             
 
                                                                                                                                                                           CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                                                                                                                                                                                                For
                                                                                                                                                                          the 12 months ending December 31, 2014 and 2013
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    Year-to-date                                                                            
                                                                                                                     -------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                       
  (in thousands, except per share data)                                                  2014                                                          2013                                                  Change                       
-------------------- ----------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------   -------------------- -------------------- -------------------------------------------------   -------------------- -------------------- -----------------------------------------------   --------------------
                                                                                                                                                                                                                                                                                                                                                                               
                     Revenues
                     Oil, natural gas liquids and natural gas sales                                                                     $            1,344,194                                                                                   $ 1,256,317                                                                                   $  87,877
                     Gain (loss) on derivative instruments, net                                                                                        335,019                                                                                       (50,024 )                                                                                   385,043
  Loss on sale of assets and other                                          (2,642 )                               (981 )                           (1,661 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                           
        Total revenues                                                   1,676,571         1,205,312         471,259    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
                     Operating Costs and Expenses
                     Oil, natural gas liquids and natural gas production                                                                               274,432                                                                                       257,438                                                                                      16,994
                     Production and ad valorem taxes                                                                                                   102,063                                                                                        94,103                                                                                       7,960
                     Depreciation, depletion and amortization                                                                                          548,564                                                                                       452,876                                                                                      95,688
                     Asset impairment                                                                                                                  416,801                                                                                        13,906                                                                                     402,895
                     Exploration                                                                                                                        28,090                                                                                        14,036                                                                                      14,054
                     General and administrative                                                                                                        122,052                                                                                       113,821                                                                                       8,231
  Accretion of discount on asset retirement obligations                      7,608             6,995             613    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
        Total costs and expenses                                         1,499,610           953,175         546,435    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
  Operating Income                                                         176,961           252,137         (75,176 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
                     Other Income (Expense)
                     Interest expense                                                                                                                  (37,771 )                                                                                     (39,736 )                                                                                     1,965
  Other income                                                               1,181             3,803          (2,622 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
        Total other expense                                                (36,590 )                            (35,933 )                             (657 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
                     Income From Continuing Operations Before Income Taxes                                                                             140,371                                                                                       216,204                                                                                     (75,833 )
  Income tax expense                                                        40,728            74,323         (33,595 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
  Income From Continuing Operations                                         99,643           141,881         (42,238 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
                     Discontinued Operations, net of tax
                     Income from discontinued operations                                                                                                29,292                                                                                        59,079                                                                                     (29,787 )
  Gain on disposal of discontinued operations                              439,097             3,594         435,503    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
  Income From Discontinued Operations                                      468,389            62,673         405,716    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
  Net Income                                                                   $              568,032                          $   204,554                          $ 363,478    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
                     Diluted Earnings Per Average Common Share
                     Continuing operations                                                                                              $                 1.36                                                                                   $      1.96                                                                                   $   (0.60 )
  Discontinued operations                                                     6.39              0.86            5.53    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
  Net Income                                                                   $                 7.75                          $      2.82                          $    4.93    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
                     Basic Earnings Per Average Common Share
                     Continuing operations                                                                                              $                 1.37                                                                                   $      1.96                                                                                   $   (0.59 )
  Discontinued operations                                                     6.42              0.87            5.55    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
  Net Income                                                                   $                 7.79                          $      2.83                          $    4.96    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
  Diluted Average Common Shares Outstanding                                 73,275            72,471             804    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
  Basic Average Common Shares Outstanding                                   72,897            72,318             579    
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
  Dividends Per Common Share                                                   $                 0.47                          $      0.58                          $   (0.11 )                     
-------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                               
 
                                                                                                                                             CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                                                                                                                                                              As of
                                                                                                                                             December 31, 2014 and December 31, 2013
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                     
                                                                                                                                     -------------------- ------------------------------------------------------------------------ -------------------- ------------------------------------------------------------------------
                                                                                                                                                                                              
  (in thousands)                                                                                December 31, 2014                                       December 31, 2013                  
-------------------- --------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------------------------------------  -------------------- -------------------- --------------------------------------------------  --------------------
                                                                                                                                                                                                                                                                                                             
                     ASSETS
                     Current Assets
                     Cash and cash equivalents                                                                                                                               $                          1,852                                                              $                          2,523
                     Accounts receivable, net of allowance                                                                                                                                            147,675                                                                                       136,334
                     Inventories                                                                                                                                                                       14,251                                                                                        11,130
                     Assets held for sale                                                                                                                                                             411,654                                                                                     1,242,872
                     Deferred income taxes                                                                                                                                     a^’                                                                                        21,250
                     Derivative instruments                                                                                                                                                           322,337                                                                                        17,463
  Prepayments and other                                                                                 24,574                                9,989  
-------------------- --------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                             
        Total current assets                                                                           922,343                            1,441,561  
-------------------- --------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                             
                     Property, Plant and Equipment
                     Oil and natural gas properties, net                                                                                                                                            5,152,748                                                                                     5,087,573
  Other property and equipment, net                                                                     43,812                               30,515  
-------------------- --------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                             
       Total property, plant and equipment, net                                                      5,196,560                            5,118,088  
-------------------- --------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                             
                     Noncurrent derivative instruments                                                                                                                         a^’                                                                                         5,439
  Other assets                                                                                          19,512                               57,124  
-------------------- --------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                             
  TOTAL ASSETS                                                                                   $                      6,138,415                        $                      6,622,212  
-------------------- --------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                             
                     LIABILITIES AND SHAREHOLDERS’ EQUITY
                     Current Liabilities
                     Long-term debt due within one year                                                                                                                      $ a^’                                                              $                         60,000
                     Notes payable to banks                                                                                                                                    a^’                                                                                       489,000
                     Accounts payable                                                                                                                                                                 101,562                                                                                        78,178
                     Accrued taxes                                                                                                                                                                      4,003                                                                                         8,201
                     Accrued wages and benefits                                                                                                                                                        46,162                                                                                        27,036
                     Accrued capital costs                                                                                                                                                            207,461                                                                                        93,623
                     Revenue and royalty payable                                                                                                                                                       64,446                                                                                        51,519
                     Liabilities related to assets held for sale                                                                                                                                       33,406                                                                                       831,570
                     Deferred income taxes                                                                                                                                                             79,164                                                                a^’
                     Derivative instruments                                                                                                                                                               988                                                                                        30,302
  Other current liabilities                                                                             23,288                               21,796  
-------------------- --------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                             
        Total current liabilities                                                                      560,480                            1,691,225  
-------------------- --------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                             
                     Long-term debt                                                                                                                                                                 1,038,563                                                                                     1,093,541
                     Asset retirement obligations                                                                                                                                                      94,060                                                                                       108,533
                     Deferred income taxes                                                                                                                                                          1,000,486                                                                                       807,614
                     Noncurrent derivative instruments                                                                                                                         a^’                                                                                           398
  Other long-term liabilities                                                                           30,222                               62,882  
-------------------- --------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                             
        Total liabilities                                                                            2,723,811                            3,764,193  
-------------------- --------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                             
  Total Shareholders’ Equity                                              3,414,604                            2,858,019  
-------------------- --------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                             
  TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                          $                      6,138,415                        $                      6,622,212  
-------------------- --------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                             
 
                                                                                                                                                                           SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
                                                                                                                                                                                             For the
                                                                                                                                                                           3 months ending December 31, 2014 and 2013
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                         4th Quarter                                                                     
                                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                      
  (in thousands, except sales price and per unit data)                                        2014                                                   2013                                                 Change                       
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------------------------------------   -------------------- -------------------- -----------------------------------------------   -------------------- -------------------- -----------------------------------------------   --------------------
                                                                                                                                                                                                                                                                                                                                                                            
                     Oil and Gas Operations
                     Oil, natural gas liquids and natural gas sales from continuing
                     operations
                        Oil                                                                                                                       $   211,916                                                                                   $ 250,118                                                                                   $ (38,202 )
                        Natural gas liquids                                                                                                            20,293                                                                                      27,096                                                                                      (6,803 )
     Natural gas                                                           54,538          51,357           3,181    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
           Total                                                                         $   286,747                          $ 328,571                          $ (41,824 )                     
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                            
     Loss on sale of assets and other                                                    $      (833 )                                           $    (489 )                                           $    (344 )                     
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                            
                     Open non-cash mark-to-market gains (losses) on derivative
                     instruments
                        Oil                                                                                                                       $   230,490                                                                                   $  20,600                                                                                   $ 209,890
                        Natural gas liquids                                                                                                            (1,316 )                                                                                       556                                                                                      (1,872 )
     Natural gas                                                           32,286         (20,529 )                           52,815    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
            Total                                                                        $   261,460                          $     627                          $ 260,833    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                            
                     Closed gains (losses) on derivative instruments
                       Oil                                                                                                                        $    50,945                                                                                   $ (13,593 )                                                                                 $  64,538
                       Natural gas liquids                                                                                                              4,990                                                                                       2,342                                                                                       2,648
    Natural gas                                                             8,126          12,504          (4,378 )                     
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
          Total                                                                          $    64,061                          $   1,253                          $  62,808    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
    Total Revenues                                                                       $   611,435                          $ 329,962                          $ 281,473    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                            
                     Production volumes from continuing operations
                        Oil (MBbl)                                                                                                                      3,213                                                                                       2,694                                                                                         519
                        Natural gas liquids (MMgal)                                                                                                      43.1                                                                                        37.3                                                                                         5.8
     Natural gas (MMcf)                                                    14,646          14,676             (30 )                     
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
  Production volumes from continuing operations(MBOE)                       6,681           6,028             653    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
  Total production volumes (MBOE)                                           6,681           6,203             478    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                            
                     Average realized prices excluding effects of open non-cash
                     mark-to-market derivative instruments
                        Oil (per barrel)                                                                                                          $     81.81                                                                                   $   87.80                                                                                   $   (5.99 )
                        Natural gas liquids (per gallon)                                                                                          $      0.59                                                                                   $    0.79                                                                                   $   (0.20 )
                        Natural gas (per Mcf)                                                                                                     $      4.28                                                                                   $    4.35                                                                                   $   (0.07 )
                                                                                                                                                                                                                                                                                                                                                                            
                     Average realized prices excluding derivative instruments
                        Oil (per barrel)                                                                                                          $     65.96                                                                                   $   92.84                                                                                   $  (26.88 )
                        Natural gas liquids (per gallon)                                                                                          $      0.47                                                                                   $    0.73                                                                                   $   (0.26 )
                        Natural gas (per Mcf)                                                                                                     $      3.72                                                                                   $    3.50                                                                                   $    0.22
                                                                                                                                                                                                                                                                                                                                                                            
                     Other costs per BOE from continuing operations
                        Oil, natural gas liquids and natural gas production expenses                                                              $     11.16                                                                                   $   11.04                                                                                   $    0.12
                        Production and ad valorem taxes                                                                                           $      3.14                                                                                   $    4.15                                                                                   $   (1.01 )
                        Depreciation, depletion and amortization                                                                                  $     22.08                                                                                   $   19.96                                                                                   $    2.12
                        Exploration expense                                                                                                       $      1.03                                                                                   $    1.15                                                                                   $   (0.12 )
                        General and administrative                                                                                                $      4.27                                                                                   $    4.50                                                                                   $   (0.23 )
  Capital expenditures                                                                   $   425,045                          $ 212,054                          $ 212,991    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                            
 
                                                                                                                                                                            SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
                                                                                                                                                                                              For the
                                                                                                                                                                            12 months ending December 31, 2014 and 2013
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                         Year-to-date                                                                      
                                                                                                                               --------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                      
  (in thousands, except sales price and per unit data)                                        2014                                                    2013                                                  Change                       
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------------------------------------   -------------------- -------------------- -------------------------------------------------   -------------------- -------------------- -----------------------------------------------   --------------------
                                                                                                                                                                                                                                                                                                                                                                              
                     Oil and Gas Operations
                     Oil, natural gas liquids and natural gas sales from continuing
                     operations
                        Oil                                                                                                                       $   988,868                                                                                   $   961,055                                                                                   $  27,813
                        Natural gas liquids                                                                                                           110,918                                                                                        91,407                                                                                      19,511
     Natural gas                                                          244,408           203,855          40,553    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
           Total                                                                         $ 1,344,194                          $ 1,256,317                          $  87,877    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                              
     Loss on sale of assets and other                                                    $    (2,642 )                                           $      (981 )                                           $  (1,661 )                     
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                              
                     Open non-cash mark-to-market gains (losses) on derivative
                     instruments
                        Oil                                                                                                                       $   271,200                                                                                   $   (43,261 )                                                                                 $ 314,461
                        Natural gas liquids                                                                                                               287                                                                                          (652 )                                                                                       939
     Natural gas                                                           43,958            (3,919 )                           47,877    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
           Total                                                                         $   315,445                          $   (47,832 )                                           $ 363,277    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                              
                     Closed gains (losses) on derivative instruments
                       Oil                                                                                                                        $     4,377                                                                                   $   (52,694 )                                                                                 $  57,071
                       Natural gas liquids                                                                                                              6,218                                                                                        10,795                                                                                      (4,577 )
    Natural gas                                                             8,979            39,707         (30,728 )                     
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
          Total                                                                          $    19,574                          $    (2,192 )                                           $  21,766    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
    Total Revenues                                                                       $ 1,676,571                          $ 1,205,312                          $ 471,259    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                              
                     Production volumes from continuing operations
                        Oil (MBbl)                                                                                                                     11,814                                                                                        10,364                                                                                       1,450
                        Natural gas liquids (MMgal)                                                                                                     172.3                                                                                         135.8                                                                                        36.5
     Natural gas (MMcf)                                                    58,602            58,104             498    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
  Production volumes from continuing operations(MBOE)                      25,684            23,281           2,403    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
  Total production volumes (MBOE)                                          25,849            25,362             487    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                              
                     Average realized prices excluding effects of open non-cash
                     mark-to-market derivative instruments
                        Oil (per barrel)                                                                                                          $     84.07                                                                                   $     87.65                                                                                   $   (3.58 )
                        Natural gas liquids (per gallon)                                                                                          $      0.68                                                                                   $      0.75                                                                                   $   (0.07 )
                        Natural gas (per Mcf)                                                                                                     $      4.32                                                                                   $      4.19                                                                                   $    0.13
                                                                                                                                                                                                                                                                                                                                                                              
                     Average realized prices excluding derivative instruments
                        Oil (per barrel)                                                                                                          $     83.70                                                                                   $     92.73                                                                                   $   (9.03 )
                        Natural gas liquids (per gallon)                                                                                          $      0.64                                                                                   $      0.67                                                                                   $   (0.03 )
                        Natural gas (per Mcf)                                                                                                     $      4.17                                                                                   $      3.51                                                                                   $    0.66
                                                                                                                                                                                                                                                                                                                                                                              
                     Other costs per BOE from continuing operations
                        Oil, natural gas liquids and natural gas production expenses                                                              $     10.68                                                                                   $     11.06                                                                                   $   (0.38 )
                        Production and ad valorem taxes                                                                                           $      3.97                                                                                   $      4.04                                                                                   $   (0.07 )
                        Depreciation, depletion and amortization                                                                                  $     21.17                                                                                   $     19.32                                                                                   $    1.85
                        Exploration expense                                                                                                       $      1.09                                                                                   $      0.60                                                                                   $    0.49
                        General and administrative                                                                                                $      4.75                                                                                   $      4.89                                                                                   $   (0.14 )
  Capital expenditures                                                                   $ 1,376,038                          $ 1,104,745                          $ 271,293    
-------------------- --------------------------------------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                              

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20150212006524r1&sid=cmtx6&distro=nx&lang=en

SOURCE: Energen Corporation

Energen Corporation 
Julie S. Ryland, 205-326-8421


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