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Energen Corporation$63.84($1.00)(1.54%)

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 Energen’s First Jo Mill Wells Tracking 1,200 MBOE EUR Type Curve
   Thursday, February 11, 2016 4:30:05 PM ET

--Focus on Capital Discipline, Expense Reductions in 2016

--Highlights

--340 net engineered Jo Mill and Middle Spraberry locations added to company’s Midland Basin inventory

--Revised unrisked potential drilling inventory supports net potential of more than 2 billion BOE in Permian Basin

--Identified asset sales in San Juan and Delaware basins could bolster 2016 cash flows by estimated $400 million

--Horizontal well production in Midland Basin in 2015 increased 248% year-over-year

--Energen to be pure Permian Basin operator after exiting San Juan Basin

--Adjusting prior year for 1Q15 sale of San Juan Basin assets, YE15 proved reserves increased 16% to 355 MMBOE

--2016 plans call for 47 net horizontal well completions in Midland Basin; year-over-year production essentially flat



--With modest price recovery later in year, Energen sees running three rigs during 2H16

--Cost-cutting measures estimated to decrease recurring G&A expense in 2016 by 25%

For the 3 months ended December 31, 2015, Energen Corporation (EGN ) reported a GAAP net loss from all operations of $(590.8) million, or $(7.50) per diluted share. Excluding mark-to-market derivatives losses, commodity price-driven impairments, and pension settlement charges, Energen’s adjusted income in the 4th quarter of 2015 totaled $21.3 million, or $0.27 per diluted share. This compares with adjusted income from continuing operations in the 4th quarter of 2014 of $38.2 million, or $0.52 per diluted share. The variance between the periods largely is attributable to lower realized commodity prices and higher depreciation, depletion, and amortization expense (DD&A) associated with increased drilling activity and the impact of lower year-end commodity prices, partially offset by increased production, lower lease operating, marketing and transportation expenses (LOE), and lower production and ad valorem taxes. [See "Non-GAAP Financial Measures" beginning on pp 13 for more information and reconciliation.]

Energen’s adjusted EBITDAX totaled $205.0 million in the 4th quarter of 2015 and compared with adjusted EBITDAX from continuing operations in the same period last year of $208.6 million. [See "Non-GAAP Financial Measures" beginning on pp 13 for more information and reconciliation.]

Relative to internal expectations, Energen’s adjusted 4Q15 earnings were negatively affected by a 4th quarter DD&A adjustment that totaled $0.17 per share and was driven by the impact on reserves of low commodity prices at year end. Otherwise, Energen’s adjusted 4Q15 earnings would have been $0.44 per diluted share. In addition, the impact of slightly below-budget production was more than offset by decreased LOE and ad valorem, production and other taxes, greater-than-expected realized oil prices, lower exploration expense, and less net salaries and general and administrative expense (G&A).

Production in 4Q15 fell just short of the company’s guidance midpoint for a number of reasons, including the underperformance of primarily Wolfcamp B wells in a select area near the Glasscock/Reagan county line where higher gas rates and lower oil rates were encountered, weather-related impacts, and the timing of flow back of 4th quarter development wells; these factors were partially offset by continued strong production from 3rd Bone Spring and Wolfcamp wells in the Delaware Basin.

2016 Capital and Production Summary

Energen plans to invest approximately $250-$350 million of drilling and development capital in 2016. At recent strip oil prices for the year approximating $36 per barrel, the low end of the range reflects capital investment to hold the company’s acreage in the Delaware and Midland basins and to complete 47 gross (47 net) horizontal wells in the Midland Basin, including 46 gross (46 net) wells that were drilled but uncompleted (DUC) at YE15.

If oil prices increase later in the year, Energen likely would invest capital at the higher end of the range in order to resume drilling in the Midland Basin.

The company anticipates funding the estimated gap between capital investment and after-tax cash flows of approximately $225-$325 million with proceeds from the sale of non-core assets in the San Juan and Delaware basins in 2016. After-tax cash flows will include a working capital adjustment of $(79.0) million related to accrued capital at YE15.

Being largely unhedged, the company’s debt-to-EBITDAX ratio is highly sensitive to changes in oil prices. At average 2016 oil prices of $40 per barrel, and assuming the sale of non-core assets for cash proceeds of approximately $400 million, Energen’s capital investment of $250 million would result in an estimated total debt-to-EBITDAX multiple at YE16 of approximately 2.5.

2016 Capital Summary

                       2016e Capital           Wells to be Drilled        Wells to be Completed
                                                                                                       ($MM)
                                                                                                                                                                                   --------------------                                                                ---------------------
                                                           Operated Gross (Net)       Operated Gross (Net)
------------------------------ -------------------- -------------------- -------------------- --------------------  -------------------- -------------------- -------------------- -------------------- --------------------
Midland Basin                                 $        197                      7 (7)                     52 (52)
------------------------------ -------------------- -------------------- -------------------- ---------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------
Delaware Basin                                $         41                      4 (4)                       4 (4)
------------------------------ -------------------- -------------------- -------------------- ---------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------
Other                                         $          3                
------------------------------ -------------------- -------------------- -------------------- ---------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------
                                    
------------------------------ -------------------- -------------------- -------------------- ------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------
Net Carry/ARO/ Other                          $          5                
------------------------------ -------------------- -------------------- -------------------- ---------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------
                                    
------------------------------ -------------------- -------------------- -------------------- ------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------
Drilling & Development Capital                $        246                
------------------------------ -------------------- -------------------- -------------------- ---------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------
                                                                                                                                                                                                                                                                        

Energen’s capital plan includes approximately $168 million for completion of 46 gross (46 net) DUCs in the Midland Basin and another $6.6 million to drill and complete a Lower Spraberry well needed to finish a pad. Approximately $48 million will be invested to drill 6 gross (6 net) vertical Wolfberry wells in the Midland Basin and 4 gross (4 net) Wolfcamp shale wells in the Delaware Basin to hold leases. Another $17 million will be invested in other drilling- and development-related activities such as facilities and non-operated drilling, including $10 million in the Midland Basin and $5 million in the Delaware Basin.

2016 Production Guidance

Production in 2016 is estimated to be essentially flat relative to 2015, as 25 percent production growth from horizontal drilling and development activities in the Midland Basin is offset by natural declines in the vertical Wolfberry, the 3rd Bone Spring sands in the Delaware Basin, and the Central Basin Platform.

Excluding production from the planned sales of non-core assets in the San Juan and Delaware basins, the company estimates that production in 2016 will range from 19.5-20.3 MMBOE, or 53,280-55,465 boepd. The guidance midpoint is 19.9 MMBOE, or 54,437 boepd. With DUC completions scheduled to occur in the first half of the year, 2016 production is expected to peak in 3Q16. Energen’s 4Q16 exit rate is estimated to be 51,370 boepd, or 12 percent less than the comparable 4Q15 exit rate of 58,457 boepd.

Production by Product, Pro Forma to Exclude Planned Sales of Non-Core Assets

                                                 2016e Guidance Midpoint                                                                                                 2015                                                          Change from
                                                                                                                                                                                                                                                                                                                                                                                                                                      Midpoint
                                                                                    ----------------------------------------------------------------------------------------------------                                                                    ----------------------------------------------------------------------------------------------------
                                (mmboe)                    (boepd)                    (mmboe)                    (boepd)            
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      -----------
Oil                                        12.6                     34,508                       13.4                     36,616             (6) %
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -----------
Natural Gas Liquids                         3.5                      9,612                        3.3                      8,981               7 %
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -----------
Natural Gas                                 3.8                     10,317                        3.6                      9,797               5 %
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -----------
Total                                      19.9                     54,437                       20.2                     55,397             (2) %
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -----------
NOTE: Totals may not sum due to rounding
 

Production by Play, Pro Forma to Exclude Planned Sales of Non-Core Assets

                                                 2016e Guidance Midpoint                                                                                                 2015                                                            Change %
                                                                                                                                                                                                                                                                                                                                                                                                                                     From Midpoint
                                                                                    ----------------------------------------------------------------------------------------------------                                                                    ----------------------------------------------------------------------------------------------------
                                (mmboe)                    (boepd)                    (mmboe)                    (boepd)            
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      -------------
Midland Basin                              12.5                     34,068                       11.6                     31,644                 8 %
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------
Horizontal                                  9.3                     25,333                        7.4                     20,260                25 %
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------
Vertical                                    3.2                      8,735                        4.2                     11,384              (23) %
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------
Delaware Basin                              4.0                     11,019                        5.1                     13,935              (21) %
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------
Other                                       3.4                      9,350                        3.5                      9,819               (5) %
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------
Total                                      19.9                     54,437                       20.2                     55,397               (2) %
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------
NOTE: Totals may not sum due to rounding
                                                                                                                                                                                                                             

Plans to Monetize Non-Core Assets Announced

Energen plans to sell the remainder of its San Juan Basin assets in 2016 along with other non-core assets in the Delaware Basin. The company estimates that proceeds from these asset sales could total $400 million.

Approximately 70 percent of the company’s assets in the San Juan Basin were sold in March 2015. The remaining assets are primarily natural gas production with upside potential in the Mancos oil play. Energen decided to exit the San Juan Basin after assessing the early performance of exploratory wells it drilled in 2015 to test the oil play’s potential on portions of its acreage. The company concluded that these assets do not compete with its high-quality assets in the Midland and Delaware basins.

In addition to exiting the San Juan Basin, Energen is marketing select, non-core assets in the eastern Delaware Basin in Texas. Sales processes are under way.

As a pure Permian Basin operator, Energen will focus on its high-quality assets in the Midland and Delaware basins.

Cost-cutting Measures Implemented as Oil Prices Drop

Energen has implemented a variety of cost-cutting measures, including a workforce reduction, in response to the dramatic drop in oil prices. Additional savings will occur with the disposition of the company’s remaining San Juan Basin assets.

G&A expenses (excluding pension settlement charges and severance payments) are estimated to decrease 25 percent year-over-year in 2016 to approximately $89 million.

Other measures taken to enhance capital discipline include the recent decision to discontinue paying the company’s cash dividend.

Updated Permian Basin Inventory Identifies Net Potential of >2 Billion BOE

Energen’s updated, unrisked potential drilling inventory of horizontal locations in the Permian Basin at year-end 2015 totals 4,440. Of that amount, 2,504 net locations are in the Midland Basin, and 1,936 net locations are in the Delaware Basin. The company estimates that the associated net undeveloped resource potential is more than 1 billion BOE in each basin. [See inventory and spacing slides at www.energen.com]

Adjustments to Energen’s inventory included the addition of 340 net Jo Mill and Middle Spraberry locations in the Midland Basin along with the identification of 477 net locations with 10,000’ lateral lengths in the Midland Basin and 143 net locations in the Delaware Basin with an average lateral length of 9,700’. The inventory also was adjusted for locations drilled in 2015.

Potential drilling locations are engineered based on the company’s existing acreage and spacing plans and may change over time as the company and offset operators drill wells in each target zone. The updated potential inventory excludes eastern Delaware Basin assets that are targeted for sale in 2016.

Wolfcamp, Spraberry Drilling Drives Total Proved Reserve Additions of a%^132 MMBOE

Energen’s proved reserves at year-end 2015 totaled 355 MMBOE. This reflected only a 5 percent decrease from 2014 even though the company lost 58 MMBOE primarily due to substantially lower commodity prices and another 68 MMBOE due to the sale of proved reserves in the San Juan Basin in March 2015. Adjusting 2014 year-end proved reserves just for the 1Q15 San Juan Basin divestiture, proved reserves at year-end 2015 would have increased 16 percent.

Wolfcamp and Spraberry drilling in the Midland and Delaware basins was the dominant driver of total proved reserve additions of approximately 132 MMBOE, which replaced 2015 production by 550 percent. Proved oil reserves increased 17 percent in 2015 and represent 59 percent of total proved reserves. Approximately 52 percent of Energen’s total proved reserves are proved developed.

Commodity prices used for calculating reserves at year-end 2015 were substantially lower than those at year-end 2014. WTI oil prices declined 47 percent to $50.28 per barrel, while NGL prices (before transportation and fractionation) declined 45 percent to 41 cents per gallon and Henry Hub natural gas prices dropped 40 percent to $2.59 per thousand cubic feet (Mcf).

Proved Reserves by Basin (MMBOE)

     Basin          YE14        2015             2015             2015           2015         YE15
                                                                                                         Production                                            Acquisitions/                                            Additions                                           Price/Other
                                                                                                                                                              (Divestitures)                                                                                                 Revisions
-------------- -------------------- -------------------- ----- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- --------- -------------------- -------------------- ----------- -------------------- -------------------- -----
Permian            280.8         (20.7)              (0.1)         128.6          (51.7)     337.0
-------------- -------------------- -------------------- ----- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- --------- -------------------- -------------------- ----------- -------------------- -------------------- -----
San Juan Basin      90.9          (3.3)             (67.6)           3.5           (6.6)      16.9
-------------- -------------------- -------------------- ----- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- --------- -------------------- -------------------- ----------- -------------------- -------------------- -----
Other                1.0          (0.0)              (0.1)           0.1           (0.2)       0.8
-------------- -------------------- -------------------- ----- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- --------- -------------------- -------------------- ----------- -------------------- -------------------- -----
  TOTAL            372.7         (24.0)             (67.7)         132.2          (58.4)     354.7
-------------- -------------------- -------------------- ----- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- --------- -------------------- -------------------- ----------- -------------------- -------------------- -----
NOTE: Totals may not sum due to rounding
                                                                                            

Proved Reserves by Commodity (MMBOE)

      Commodity           2015       2014       % Change
------------------- -------------------- -------------------- -------------------- ---- -------------------- -------------------- -------------------- ---- -------------------- -------------------- -------------------- --------
Oil                        211        181             17
------------------- -------------------- -------------------- -------------------- ---- -------------------- -------------------- -------------------- ---- -------------------- -------------------- -------------------- --------
Natural gas liquids         72         73            (1)
------------------- -------------------- -------------------- -------------------- ---- -------------------- -------------------- -------------------- ---- -------------------- -------------------- -------------------- --------
Natural gas                 72        119           (39)
------------------- -------------------- -------------------- -------------------- ---- -------------------- -------------------- -------------------- ---- -------------------- -------------------- -------------------- --------
  TOTAL                    355        373            (5)
------------------- -------------------- -------------------- -------------------- ---- -------------------- -------------------- -------------------- ---- -------------------- -------------------- -------------------- --------
                                               

YE2015 3P Reserves & Contingent Resources (MMBOE)

         Basin               Proved       Probable       Possible       Contingent        Total
                                                                                                                                                                                                                                                                                                             Resources
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -----
Midland Basin                   225             87            194              846       1,352
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -----
Delaware Basin                   70              6             18            1,359       1,452
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -----
Central Basin Platform           42              2              1                1          45
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -----
San Juan Basin/Other             18              1             12              278         309
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -----
  TOTAL                         355             95            226            2,483       3,159
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -----
Non-core assets for sale (included above)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Delaware Basin                   25              0              0              375         400
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -----
San Juan Basin                   17              1             12              278         308
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -----
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 estimate of current costs to drill wells in each basin/area and bring associated production to market. [See Cautionary Statements on page 12].

Energen’s First Jo Mill Wells Highlight 4Q15 Appraisal Program Results

Energen’s latest appraisal wells in the Midland Basin were highlighted by the company’s first two Jo Mill tests I impressive wells that are tracking at or above a 1.2 million BOE type curve. Drilled in Martin County, these wells had an average peak 24-hour IP of 1,062 boepd and an average peak 30-day average rate of 943 boepd, and were approximately 75 percent oil.

Another highlight was the company’s test of the Lower Spraberry in Glasscock County north of its first Lower Spraberry well. With a 10,000’ lateral length, the Daniel SN 7-6 04 #504H generated a 24-hour IP of 1,460 boepd (74% oil) and a peak, 30-day average rate of 1,213 boepd (70% oil). The company also drilled wells east and west of its first Lower Spraberry well; while results were not as strong as the Daniel well, these are solid wells that will be good additions to the Glasscock County development program in a higher commodity price environment.

In northern Midland County, the company drilled a Wolfcamp A test well that confirmed the positive results of the B-bench well drilled at that location earlier in 2015. [See locator maps and graphs of the cumulative oil production of Jo Mill, Middle Spraberry, and Lower Spraberry wells over time at www.energen.com].

Midland Basin (3-Stream Results)

          Well Name                      Zone/                                             Lateral length (ft)                                            Frac                                                                                                               Peak 24-Hour IP                                                                                                                                                                                                      Peak 30-day Avg.
                                                                              County                                                                                                                                                                                       Stages
                                                                                                                                      --------------------------------------------------------------------------------    -------------------- --------------------                      -------------------- -------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                    --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Drilled*                 Completed                                               %Oil                     %NGL                     %Gas                     Boepd                    %Oil                     %NGL                     %Gas
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
JO MILL
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Jones Holton #807H                      Martin                           7,501                    7,137                       34                    1,137                       76                       15                        9                    1,032                       75                       15                       10
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Jones Holton #811H                      Martin                           7,476                    7,048                       33                      987                       74                       16                       10                      853                       72                       18                       10
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
LOWER SPRABERRY SHALE
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Daniel SN 7-6 04 #504H                 Glasscock                        10,309                    9,896                       46                    1,460                       74                       16                       10                    1,213                       70                       19                       11
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
WOLFCAMP A                                                                                          
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
L.B. Epley NS 39-36 06 #106H            Midland                          6,476                    6,469                       31                      948                       69                       18                       13                      712                       72                       16                       12
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
* Represents distance from vertical departure to toe
 

Midland Basin Development Program Results

Development program wells drilled in 4Q15 (gross/net)                19/19
------------------------------------------------------------ -------------------- -------------------- -------------------- -------------------- -----
Development program wells completed in 4Q15 (gross/net)                2/2
------------------------------------------------------------ -------------------- -------------------- -------------------- -------------------- -----
Development program wells awaiting completion at end of 4Q15         48/48
(gross/net)
------------------------------------------------------------ -------------------- -------------------- -------------------- -------------------- -----
                                                                    

In its 2-well, pad-drilling development program in Glasscock County, Energen tested 15 Wolfcamp A and B wells with lateral lengths of 7,500 feet during 4Q15. These wells generated average peak 24-hour IP rates (3-stream) of 1,242 boepd (83% oil) and peak 30-day average rates (3-stream) of 875 boepd (71% oil).

Since the development program’s inception in 2014, Energen has tested 90 gross (87 net) wells that generated average peak 24-hour IPs (3-stream) of 1,002 boepd (80% oil) and peak 30-day average rates (3-stream) of 754 boepd (71% oil).

[See updated Glasscock County Wolfcamp A/B type curve, normalized to 7,500’, at www.energen.com].

4th Quarter Financial Review

Reconciliation of Consolidated GAAP Net Income to Adjusted Income from Continuing Operations [See "Non-GAAP Financial Measures" beginning on pp 13 for more information]

                                                                                                                   4Q15                                                                                                                                             4Q14
----------------------------------------------------------- -------------------- -------------------- -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------------------------------------------------------------------------------
                                                                       $M                                                $/dil. sh.                                               $M                                                $/dil. sh.
----------------------------------------------------------- -------------------- -------------------- -------------------- ----------------------------------------------------------------------- -------------------- -------------------------------------------------------------------- -------------------- ----------------------------------------------------------------------- -------------------- ------------------------------------------------
Net Income/(Loss) All Operations (GAAP)                                              $ (590,806 )                                           $ (7.50 )                                           $   65,418                          $  0.89  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- --------------------
Less: Non-cash mark-to-market gains/(losses)                         (66,984 )                          (0.85 )                           167,315          2.28  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- --------------------
Less: Asset impairments, dry hole expenses                          (528,145 )                          (6.70 )                          (141,945 )                          (1.94 )
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- --------------------
Less: Pension and pension settlement expenses                        (16,884 )                          (0.21 )                            (3,558 )                          (0.05 )
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- --------------------
Less: Income/(loss) associated w/ San Juan Basin divestment              (65 )                           0.00            6,522          0.09  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- --------------------
Less: Gain/(loss) discontinued operations                                 --            --           (1,101 )                          (0.02 )
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- --------------------
Adj. Income Continuing Operations (Non-GAAP)                                         $   21,272                          $  0.27                          $   38,185                          $  0.52  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- --------------------
Note: Per share amounts may not sum due to rounding
 

Asset impairments in 4Q15 reflect price-driven write downs of proved properties, primarily in the San Juan and Delaware basins, and a write down to fair value of unproved leasehold in the San Juan Basin (which has been designated as "held for sale" at year-end 2015). Pension and pension settlement expenses relate to the termination and subsequent distribution of benefits of Energen’s qualified defined pension plan and non-qualified supplemental retirement plans. The bulk of these expenses occurred in 4Q15.

Production from Continuing Operations (excludes production associated with 1Q15 San Juan divestiture)

      Commodity                                      4Q15                                                         4Q14                                      Change
-------------------- -------------------- -------------------- -------------------- ----------------------------------------------------------------------------- -------------------- ----------------------------------------------------------------------------- -------------------- --------------------
        (mboe)      (boepd)    (mboe)      (boepd)     
-------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
Oil                         3,584      38,957      3,209      34,880                     12 %
-------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
NGL                         1,078      11,717        879       9,554                     23 %
-------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
Natural Gas                 1,305      14,185      1,033      11,228                     26 %
-------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
   Total                    5,967      64,859      5,121      55,663                     17 %
-------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
Note: Totals may not sum due to rounding
 

Production from Continuing Operations (excludes production associated with 1Q15 San Juan divestiture)

         Area                                          4Q15                                                         4Q14                                      Change
---------------------- -------------------- -------------------- -------------------- ----------------------------------------------------------------------------- -------------------- ----------------------------------------------------------------------------- -------------------- --------------------
          (mboe)      (boepd)    (mboe)      (boepd)     
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
Midland Basin                 3,305      35,924      2,237      24,315                     48 %
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
 Wolfcamp/Spraberry           2,347      25,511      1,095      11,902                    114 %
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
 Wolfberry                      958      10,413      1,142      12,413                    (16)%
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
Delaware Basin                1,346      14,630      1,435      15,598                     (6)%
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
 3rd Bone Spring/Other          921      10,010      1,135      12,337                    (19)%
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
 Wolfcamp                       425       4,620        300       3,261                     42 %
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
Central Basin Platform          845       9,185        966      10,500                    (13)%
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
  Total Permian Basin         5,496      59,739      4,638      50,413                     18 %
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
San Juan Basin/Other            471       5,120        483       5,250                     (2)%
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
  Total                       5,967      64,859      5,121      55,663                     17 %
---------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
Note: Totals may not sum due to rounding
                                                                          

Average Realized Sales Prices from Continuing Operations (excludes production associated with 1Q15 San Juan divestiture)

       Commodity              4Q15           4Q14          Change
--------------------- -------------------- -------------------- -------------------- ----------------------------- -------------------- -------------------- ----------------------------- -------------------- -------------------- --------
Oil (per barrel)             $ 71.43        $ 81.86       (13 ) %
--------------------- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- --- ---
NGL (per gallon)             $  0.27        $  0.62       (56 ) %
--------------------- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- --- ---
Natural Gas (per Mcf)        $  3.65        $  4.10       (11 ) %
--------------------- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- --- ---
                                                         

Average Prices from Continuing Operations Before Effects of Hedges (excludes production associated with 1Q15 San Juan divestiture)

       Commodity              4Q15           4Q14          Change
--------------------- -------------------- -------------------- -------------------- ----------------------------- -------------------- -------------------- ----------------------------- -------------------- -------------------- --------
Oil (per barrel)             $ 39.20        $ 65.98       (41 ) %
--------------------- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- --- ---
NGL (per gallon)             $  0.27        $  0.48       (44 ) %
--------------------- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- --- ---
Natural Gas (per Mcf)        $  1.92        $  3.54       (46 ) %
--------------------- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- --- ---
                                                         

Expenses from Continuing Operations and Excluding San Juan Basin Assets sold 1Q15 (per BOE, except interest expense)

           Expenses                    4Q15            4Q14          Change
----------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- ------------------------------ -------------------- -------------------- --------
LOE*                                  $  8.79         $ 11.74       (25 ) %
----------------------------- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ---
Production & ad valorem taxes         $  1.94         $  3.48       (44 ) %
----------------------------- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ---
DD&A                                  $ 26.54         $ 26.47         0 %
----------------------------- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ---
Net G&A+                              $  4.78         $  4.61         4 %
----------------------------- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ---
Interest ($MM)                        $  10.0         $  10.4        (4 ) %
----------------------------- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ---
* Production costs + workovers and repairs + marketing and
transportation
+ Excludes $4.40 per BOE in 4Q15 and $1.08 per BOE in 4Q14 for
pension and pension settlement expenses
 

4th Quarter Comparisons, 2015 vs 2014 (excluding San Juan Basin assets sold March 31, 2015)

-- The success of Energen’s Wolfcamp development program drove a 114 percent increase in production from horizontal plays in the Midland Basin and more than offset natural declines in the vertical Wolfberry.

-- The company’s average realized oil price fell 13 percent to $71.43 per barrel, while the realized price of NGL dropped 56 percent. Excluding the impact of commodity and differential hedges, average realized prices declined more than 40 percent for oil, NGL, and natural gas.

-- LOE per unit declined 25 percent to $8.79 per barrel largely due to lower workover and repair expense, and lower water disposal and gathering system costs.

-- Per-unit net G&A expense of $4.78 per BOE (excluding pension and pension settlement expenses) increased 4 percent from the same period a year ago primarily due to increased performance-based compensation.

2015 Financial Review

For the 12 months ended December 31, 2015, Energen reported a GAAP net loss from all operations of $(945.7) million, or $(12.43) per diluted share. Excluding mark-to-market derivatives losses, commodity price-related impairments, and pension settlement charges, Energen’s adjusted income in 2015 totaled $64.5 million, or $0.85 per diluted share. This compares with adjusted income from continuing operations in 2014 of $135.8 million, or $1.85 per diluted share.

The variance between the periods largely is attributable to lower realized commodity prices and higher DD&A associated with increased drilling activity and the impact of lower prices at year-end, partially offset by increased production, lower LOE, lower production and ad valorem taxes, and decreased exploration expense. [See "Non-GAAP Financial Measures" beginning on pp 13 for more information and reconciliation.]

Energen’s adjusted 2015 EBITDAX totaled $739.8 million as compared with adjusted EBITDAX from continuing operations in 2014 of $762.9 million. [See "Non-GAAP Financial Measures" beginning on pp 13 for more information and reconciliation.]

Reconciliation of Consolidated GAAP Net Income to Adjusted Income from Continuing Operations [See "Non-GAAP Financial Measures" beginning on pp 13 for more information]

                                                                                                                  2015                                                                                                                                             2014
----------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------ -------------------- ---------------------------------------------------------------------------------------------------------------------------------------------
                                                                     $M                                                $/dil. sh.                                                $M                                                $/dil. sh.
----------------------------------------------------------- -------------------- -------------------- ----------------------------------------------------------------------- -------------------- --------------------------------------------------------------------- -------------------- ----------------------------------------------------------------------- -------------------- ------------------------------------------------
Net Income/(Loss) All Operations (GAAP)                                            $ (945,731 )                                           $ (12.43 )                                           $  568,032                          $  7.75  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- --------------------
Less: Non-cash mark-to-market gains/(losses)                      (181,251 )                           (2.38 )                           201,790          2.75  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- --------------------
Less: Asset impairments, dry hole expenses                        (830,957 )                          (10.92 )                          (263,189 )                          (3.59 )
----------------------------------------------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- --------------------
Less: Pension and pension settlement expenses                      (20,148 )                           (0.26 )                           (12,179 )                          (0.17 )
----------------------------------------------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- --------------------
Less: Income/(loss) associated w/ San Juan Basin divestment         22,076           0.29           37,378          0.51  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- --------------------
Less: Gain/(loss) discontinued operations                               --             --          468,389          6.39  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- --------------------
Adj. Income Continuing Operations (Non-GAAP)                                       $   64,549                          $   0.85                          $  135,843                          $  1.85  
----------------------------------------------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ----- --------------------
Note: Per share amounts may not sum due to rounding
                                                                                                                                                                                                                                  

Production from Continuing Operations (excludes production associated with 1Q15 San Juan divestiture)

      Commodity                                    2015                                                         2014                                      Change
-------------------- -------------------- -------------------- ----------------------------------------------------------------------------- -------------------- ----------------------------------------------------------------------------- -------------------- --------------------
      (mboe)      (boepd)    (mboe)      (boepd)     
-------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
Oil                      14,022      38,416     11,798      32,323                     19 %
-------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
NGL                       3,926      10,756      3,408       9,337                     15 %
-------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
Natural Gas               4,587      12,567      3,891      10,660                     18 %
-------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
   Total                 22,535      61,740     19,097      52,321                     18 %
-------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
Note: Totals may not sum due to rounding
 

Production from Continuing Operations (excludes production associated with 1Q15 San Juan divestiture)

         Area                                        2015                                                         2014                                      Change
---------------------- -------------------- -------------------- ----------------------------------------------------------------------------- -------------------- ----------------------------------------------------------------------------- -------------------- --------------------
        (mboe)      (boepd)    (mboe)      (boepd)     
---------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
Midland Basin              11,550      31,644      7,405      20,288                     56 %
---------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
 Wolfcamp/Spraberry         7,395      20,260      2,127       5,827                    248 %
---------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
 Wolfberry                  4,155      11,384      5,278      14,460                    (21)%
---------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
Delaware Basin              5,566      15,249      5,907      16,184                     (6)%
---------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
 3rd Bone Spring/Other      3,765      10,315      4,694      12,860                    (20)%
---------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
 Wolfcamp                   1,801       4,934      1,213       3,323                     48 %
---------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
Central Basin Platform      3,548       9,721      3,986      10,921                    (11)%
---------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
  Total Permian Basin      20,664      56,614     17,298      47,392                     19 %
---------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
San Juan Basin/Other        1,871       5,126      1,799       4,929                      4 %
---------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
  Total                    22,535      61,740     19,097      52,321                     18 %
---------------------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- --------------------
Note: Totals may not sum due to rounding
                                                                        

Average Realized Sales Prices from Continuing Operations (excludes production associated with 1Q15 San Juan divestiture)

       Commodity               2015            2014                               Change
--------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ----------------------------------------------
Oil (per barrel)              $ 69.75         $ 84.09         (17 ) %
--------------------- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- -------------------- --- -----------------------------------------
NGL (per gallon)              $  0.29         $  0.70         (59 ) %
--------------------- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- -------------------- --- -----------------------------------------
Natural Gas (per Mcf)         $  3.73         $  3.39 *                           10   %
--------------------- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- -------------------- --- -----------------------------------------
* Prior period hedges were left unallocated for current-year
San Juan Basin divestiture; as reported last year, the average
realized sales price of natural gas in 2014 was $4.32 per Mcf.
 

Average Prices from Continuing Operations Before Effects of Hedges (excludes production associated with 1Q15 San Juan divestiture)

       Commodity              2015           2014          Change
--------------------- -------------------- -------------------- -------------------- ----------------------------- -------------------- -------------------- ----------------------------- -------------------- -------------------- --------
Oil (per barrel)             $ 45.05        $ 83.72       (46 ) %
--------------------- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- --- ---
NGL (per gallon)             $  0.29        $  0.66       (56 ) %
--------------------- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- --- ---
Natural Gas (per Mcf)        $  2.19        $  3.96       (45 ) %
--------------------- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- -- ----- -------------------- -------------------- -------------------- --- ---
                                                         

Expenses from Continuing Operations and Excluding San Juan Basin Assets sold 1Q15 (per BOE, except interest expense)

           Expenses                    2015            2014                             Change
----------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- ------------------------------ -------------------- -------------------- ----------------------------------------------
LOE*                                  $  9.49         $ 11.24       (16 ) %
----------------------------- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- -----------------------------------------
Production & ad valorem taxes         $  2.46         $  4.55       (46 ) %
----------------------------- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- -----------------------------------------
DD&A                                  $ 25.73         $ 25.55         1   %
----------------------------- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- -----------------------------------------
Net G&A+                              $  5.25         $  5.52        (5 ) %
----------------------------- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- -----------------------------------------
Interest ($MM)                        $  43.1         $  37.8        14   %
----------------------------- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- ----- -------------------- -------------------- -------------------- --- -----------------------------------------
* Production costs + workovers and repairs + marketing and
transportation
+ Excludes $1.39 per BOE in CY15 and $0.99 per BOE in CY14 for
pension and pension settlement expenses
 

Liquidity Update

As of December 31, 2015, Energen had borrowings (net of cash) of $221.2 million on its line of credit, for total liquidity available on its $1.4 billion borrowing base of $1.18 billion. Long-term debt at the end of December totaled $553.6 million. Total debt-to-2015 adjusted EBITDAX was approximately 1.0 at YE15. [See "Non-GAAP Financial Measures" beginning on pp 13 for more information and reconciliation.]

Capital

Drilling and development capital in 2015 totaled $1.0 billion, with total capital investment of $1.1 billion, including approximately $0.1 billion for the acquisition of proved and unproved leasehold, primarily in the Permian Basin.

1Q16 and CY16 Financial Guidance

Energen’s estimated expenses, pro forma for planned sales of non-core assets:

                   Per BOE, except where noted                             1Q16                CY16
--------------------------------------------------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------
LOE (production costs, marketing & transportation)                     $10.00-$10.40       $9.50-$9.90*
--------------------------------------------------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------
Production & ad valorem taxes (% of revenues, excluding hedges)            10.3%               8.9%
--------------------------------------------------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------
DD&A expense                                                           $22.60-$23.10       $23.25-$23.85
--------------------------------------------------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------
General & administrative expense, net+                                  $5.00-$5.60         $4.10-$4.80
--------------------------------------------------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------
Exploration expense (seismic, delay rentals, etc.)                      $0.30-$0.35         $0.30-$0.35
--------------------------------------------------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------
Interest expense ($MM)                                                  $10.0-$11.0         $38.7-$39.7
--------------------------------------------------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------
FF&E depreciation ($MM)                                                  $1.1-$1.6           $5.0-$5.5
--------------------------------------------------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------
Accretion of discount on ARO ($MM)                                       $1.2-$1.8           $6.0-$6.5
--------------------------------------------------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------
Effective tax rate (%)                                                    35%-37%             34%-36%
--------------------------------------------------------------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- -------------
* LOE in the Midland Basin is estimated to range from
$6.10-$6.60 in CY16
+ Excludes $1.36 per BOE in 1Q16 and $0.39 per BOE in CY16 for
pension and pension settlement and severance expenses.
                                                                                         

Production by Commodity/Quarter, Pro Forma to Exclude Planned Sales of Non-Core Assets

      Commodity                                        1Q16 Guidance Midpoint                                                               2016e Guidance Midpoint
-------------------- -------------------- -------------------- -------------------- --------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------------------------------------------------------------------
         (mmboe)       (boepd)       (mmboe)       (boepd)
-------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------
Oil                            3.0        32,945          12.6        34,508
-------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------
NGL                            0.9         9,637           3.5         9,612
-------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------
Gas                            1.0        10,462           3.8        10,317
-------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------
Total Production               4.9        53,044          19.9        54,437
-------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------
NOTE: Totals may not sum due to rounding
 

1Q16 Hedge Position

  Commodity        Hedge Volumes       Production @ Midpoint       Hedge %       NYMEXe Price
----------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------
Oil                  0.3 mmbo                3.0 mmbo                 9         $ 63.80 barrel
----------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------
Natural Gas           1.2 bcf                 5.7 bcf                21         $ 2.49 per mcf
----------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------
                                                                               

CY16 Hedge Position

  Commodity        Hedge Volumes       Production @ Midpoint       Hedge %       NYMEXe Price
----------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------
Oil                  1.1 mmbo                12.6 mmbo                9         $ 63.80 barrel
----------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------
Natural Gas           6.6 bcf                22.7 bcf                29         $ 2.47 per mcf
----------- -------------------- -------------------- -------------------- ------------- -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------
                                                                               

In the tables 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 1Q16 and CY16 oil transportation charges of $2.60 per barrel and $2.55 per barrel, respectively; and average realized NGL prices will be net of transportation and fractionation fees that are estimated to average $0.12 per gallon in 1Q16 and CY16.

The company also has hedges in place to limit its exposure to the Midland to Cushing differential. For 1Q16 and CY16, Energen has hedged the WTS Midland to WTI Cushing (sour oil) differential for 0.5 million barrels and 2.1 million barrels of oil production, respectively, at an average price of $(1.63) per barrel; WTI Midland to WTI Cushing (sweet oil) differential hedges in 1Q16 and CY16 are for 1.9 million barrels and 7.5 million barrels, respectively, at an average price of $(1.92) per barrel.

Approximately 75 percent and 77 percent of Energen’s estimated oil production in 1Q16 and CY16, respectively, will be sweet oil. Gas basis assumptions for all open contracts (February-December) are $(0.17) per Mcf.

Estimated Price Realizations (pre-hedge):

                      1Q16       CY16
---------------------------------- -------------------- -------------------- -------------------- ---- -------------------- -------------------- -------------------- ----
Crude oil (% of NYMEX/WTI)                87%        90%
---------------------------------- -------------------- -------------------- -------------------- ---- -------------------- -------------------- -------------------- ----
Natural gas (% of NYMEX/Henry Hub)        79%        81%
---------------------------------- -------------------- -------------------- -------------------- ---- -------------------- -------------------- -------------------- ----
NGL (after T&F) (% of NYMEX/WTI)          30%        28%
---------------------------------- -------------------- -------------------- -------------------- ---- -------------------- -------------------- -------------------- ----
                                                   

Energen’s assumed commodity prices for unhedged production in 2016 are $36.33 per barrel of oil (February-December), $0.38 per gallon of NGL (February-December), and $2.39 per Mcf of gas (March-December). Assumed prices for unhedged Midland to Cushing basis differentials for sweet and sour oil (March-December) are $(0.30) and $(0.41), respectively.

Given Energen’s modest hedge position in 2016, its cash flows and earnings are highly sensitive to changes in commodity prices. Relative to the company’s price assumptions: every $1.00 per barrel change in the price of oil is estimated to impact the company’s cash flows by approximately $11.3 million; every $0.01 per gallon change in the average price of NGL is estimated to have an impact of approximately $1.2 million; and every $0.10 per Mcf change in the price of natural gas is estimated to have an impact of approximately $950,000.

Conference Call

Energen will hold its quarterly conference call Friday, February 12, at 11:00 a.m. EDT. 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. At year-end 2015, the company had 355 million barrels of oil-equivalent proved reserves and another 2.8 billion barrels of oil-equivalent probable and possible reserves and 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 STATEMENTS: All statements, other than statements of historical fact, appearing in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements about our expectations, beliefs, intentions or business strategies for the future, statements concerning our outlook with regard to the timing and amount of future production of oil, natural gas liquids and natural gas, price realizations, the nature and timing of capital expenditures for exploration and development, plans for funding operations and drilling program capital expenditures, the timing and success of specific projects, operating costs and other expenses, proved oil and natural gas reserves, liquidity and capital resources, outcomes and effects of litigation, claims and disputes and derivative activities. Among other forward-looking statements in this release are statements regarding our intention to engage in certain assets sales and the estimated proceeds thereof. These sales processes are at preliminary stages, and we do not have binding agreements for any transactions; as a result, the estimate of proceeds from these transactions is preliminary and may not be realized. Our ability to consummate any transactions and their timing are subject to market conditions and other factors, and we may not be able to consummate these transactions at all or for the net proceeds we are estimating.

Forward-looking statements may include words such as "anticipate", "believe", "could", "estimate", "expect", "forecast", "foresee", "intend", "may", "plan", "potential", "predict", "project", "seek", "will" or other words or expressions concerning matters that are not historical facts. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this news release. Except as otherwise disclosed, the forward-looking statements do not reflect the impact of possible or pending acquisitions, investments, divestitures or restructurings. The absence of errors in input data, calculations and formulas used in estimates, assumptions and forecasts cannot be guaranteed. We base our forward-looking statements on information currently available to us, and we undertake no obligation to correct or update these statements whether as a result of new information, future events or otherwise. Additional information regarding our forward-looking statements and related risks and uncertainties that could affect future results of Energen, can be found in the Company’s periodic reports filed with the Securities and Exchange Commission and available on the Company’s website - www.energen.com.

CAUTIONARY STATEMENTS: The SEC permits oil and gas companies to disclose in SEC filings only proved, probable and possible reserves that meet the SEC’s definitions for such terms, and price and cost sensitivities for such reserves, and prohibits disclosure of resources that do not constitute such reserves. Outside of SEC filings, we use the terms "estimated ultimate recovery" or "EUR," reserve or resource "potential," "contingent resources" and other descriptions of volumes of non-proved reserves or resources potentially recoverable through additional drilling or recovery techniques. These estimates are inherently more speculative than estimates of proved reserves and are subject to substantially greater risk of actually being realized. We have not risked EUR estimates, potential drilling locations, and resource potential estimates. Actual locations drilled and quantities that may be ultimately recovered may differ substantially from estimates. We make no commitment to drill all of the drilling locations that have been attributed these quantities. Factors affecting ultimate recovery include the scope of our on-going drilling program, which will be directly affected by the availability of capital, drilling, and production costs, availability of drilling and completion services and equipment, drilling results, lease expirations, regulatory approvals, and geological and mechanical factors. Estimates of unproved reserves, type/decline curves, per-well EURs, and resource potential may change significantly as development of our oil and gas assets provides additional data. Additionally, initial production rates contained in this news release are subject to decline over time and should not be regarded as reflective of sustained production levels.

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
impairment losses, certain pension and pension settlement
expenses, income associated with the San Juan divestment
(completed in the first quarter of  2015), gains and losses on
disposal of discontinued operations and income and losses from
discontinued operations. 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 12/31/2015
                                                                                                            ------------------------------------------------------------------------------------------------------------
Energen Net Income ($ in millions except per share data)                         Net Income                           Per Diluted
                                                                                                                                                                                                     Share
----------------------------------------------------------------- -------------------- -------------------- -------------------------------  -------------------- -------------------- -------------------------------
Net Income (Loss) All Operations (GAAP)                                                                          (590.8 )                                                                    (7.50 )
Non-cash mark-to-market losses (net of $37.1 tax)                                                                  67.0                                                                       0.85
Asset impairment, other (net of $297.9 tax)                                                                       528.1                                                                       6.70
Pension and pension settlement expenses (net of $9.4 tax)                                                          16.9                                                                       0.21
Loss associated w/ San Juan Basin divestment (net of $0.0 tax)                0.1              0.00  
----------------------------------------------------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- --------------------
Adjusted Income from Continuing Operations (Non-GAAP)                        21.3              0.27  
================================================================= ==================== ==================== =========== ==================== ==================== ==================== =========== ====================
                                                                                                                                                                                        
                                                                                                             
                                                                                                            ------------------------------------------------------------------------------------------------------------
                                                                                                                                                      Quarter Ended 12/31/2014
                                                                                                            ------------------------------------------------------------------------------------------------------------
Energen Net Income ($ in millions except per share data)                         Net Income                           Per Diluted
                                                                                                                                                                                                     Share
----------------------------------------------------------------- -------------------- -------------------- -------------------------------  -------------------- -------------------- -------------------------------
Net Income (Loss) All Operations (GAAP)                                                                            65.4                                                                       0.89
Non-cash mark-to-market gains (net of $94.1 tax)                                                                 (167.3 )                                                                    (2.28 )
Asset impairment, other (net of $93.9 tax)                                                                        141.9                                                                       1.94
Pension and pension settlement expenses (net of $2.0 tax)                                                           3.6                                                                       0.05
Income associated w/ San Juan Basin divestment (net of $3.6 tax)             (6.5 )                              (0.09 )
----------------------------------------------------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- --------------------
Adjusted Net Income from All Operations (Non-GAAP)                           37.1              0.51  
----------------------------------------------------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- --------------------
Loss from discontinued operations (net of $0.2 tax)                                                                 1.1                                                                       0.02
Gain from discontinued operations (net of $0.0 tax)                          (0.0 )                              (0.00 )
----------------------------------------------------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- --------------------
Adjusted Income from Continuing Operations (Non-GAAP)                        38.2              0.52  
================================================================= ==================== ==================== =========== ==================== ==================== ==================== =========== ====================
                                                                                                                                                                                        
                                                                                                             
                                                                                                            ------------------------------------------------------------------------------------------------------------
                                                                                                                                                    Year-to-Date Ended 12/31/2015
                                                                                                            ------------------------------------------------------------------------------------------------------
Energen Net Income ($ in millions except per share data)                         Net Income                           Per Diluted
                                                                                                                                                                                                     Share
----------------------------------------------------------------- -------------------- -------------------- -------------------------------  -------------------- -------------------- -------------------------------
Net Income (Loss) All Operations (GAAP)                                                                          (945.7 )                                                                   (12.43 )
Non-cash mark-to-market losses (net of $100.5 tax)                                                                181.3                                                                       2.38
Asset impairment, other (net of $468.4 tax)                                                                       831.0                                                                      10.92
Pension and pension settlement expenses (net of $11.2 tax)                                                         20.1                                                                       0.26
Loss associated w/ San Juan Basin divestment (net of $13.1 tax)             (22.1 )                              (0.29 )
----------------------------------------------------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- --------------------
Adjusted Income from Continuing Operations (Non-GAAP)                        64.5              0.85  
================================================================= ==================== ==================== =========== ==================== ==================== ==================== =========== ====================
                                                                                                                                                                                        
                                                                                                             
                                                                                                            ------------------------------------------------------------------------------------------------------------
                                                                                                                                                    Year-to-Date Ended 12/31/2014
                                                                                                            ------------------------------------------------------------------------------------------------------------
Energen Net Income ($ in millions except per share data)                         Net Income                           Per Diluted
                                                                                                                                                                                                     Share
----------------------------------------------------------------- -------------------- -------------------- -------------------------------  -------------------- -------------------- -------------------------------
Net Income (Loss) All Operations (GAAP)                                                                           568.0                                                                       7.75
Non-cash mark-to-market gains (net of $113.7 tax)                                                                (201.8 )                                                                    (2.75 )
Asset impairment, other (net of $162.9 tax)                                                                       263.2                                                                       3.59
Pension and pension settlement expenses (net of $6.8 tax)                                                          12.2                                                                       0.17
Income associated w/ San Juan Basin divestment (net of $20.6 tax)           (37.4 )                              (0.51 )
----------------------------------------------------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- --------------------
Adjusted Net Income from All Operations (Non-GAAP)                          604.2              8.25  
----------------------------------------------------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- --------------------
Income from discontinued operations (net of $17.9 tax)                                                            (29.3 )                                                                    (0.40 )
Gain from discontinued operations (net of $285.5 tax)                      (439.1 )                              (5.99 )
----------------------------------------------------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- --------------------
Adjusted Income from Continuing Operations (Non-GAAP)                       135.8              1.85  
================================================================= ==================== ==================== =========== ==================== ==================== ==================== =========== ====================
                                                                                                                                                                                        
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 associated with the San Juan divestment (completed
in the first quarter of 2015), impairment losses, certain non-cash
mark-to-market derivative financial  instruments, certain pension
and pension settlement expenses,  income and losses from
discontinued operations and gains and  losses on disposal of
discontinued operations. 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)                                                                     2015                                 2014
----------------------------------------------------------------- -------------------- -------------------- ----------------------------------------------------- -------------------- ---------------------------------
                                                                                                                                                                                        
Energen Net Income (Loss) (GAAP)                                                                                 (590.8 )                                                                     65.4
(Income) Loss associated w/ San Juan Basin divestment, net of tax             0.1              (6.5 )
----------------------------------------------------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- --------------------
Adjusted Net Income from Continuing Operations (Non-GAAP)                  (590.7 )                               58.9  
----------------------------------------------------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- --------------------
Interest expense                                                                                                   10.0                                                                       10.4
Income tax expense (benefit) *                                                                                   (334.6 )                                                                     13.8
Depreciation, depletion and amortization *                                                                        159.8                                                                      137.0
Accretion expense *                                                                                                 1.7                                                                        1.6
Exploration expense *                                                                                               2.5                                                                        5.9
Dry hole expense *                                                                                                  0.1                                                                        0.5
Adjustment for asset impairment                                                                                   825.9                                                                      235.3
Adjustment for mark-to-market (gains) losses *                                                                    104.1                                                                     (261.5 )
Adjustment for pension and pension settlement expenses                                                             26.2                                                                        5.5
Adjustment for loss from discontinued operations, net of tax                                                        0.0                                                                        1.1
Adjustment for gain on disposal from discontinued operations, net             0.0              (0.0 )
of tax
----------------------------------------------------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- --------------------
Energen Adjusted EBITDAX from Continuing Operations (Non-GAAP)              205.0             208.6  
================================================================= ==================== ==================== =========== ==================== ==================== ==================== =========== ====================
                                                                                                                                                                                        
                                                                                                             
                                                                                                            ------------------------------------------------------------------------------------------------------------
Reconciliation To GAAP Information                                                                                                                    Year-to-Date Ended 12/31
                                                                                                            ------------------------------------------------------------------------------------------------------------
($ in millions)                                                                     2015                                 2014
----------------------------------------------------------------- -------------------- -------------------- ----------------------------------------------------- -------------------- ---------------------------------
                                                                                                                                                                                        
Energen Net Income (Loss) (GAAP)                                                                                 (945.7 )                                                                    568.0
(Income) Loss associated w/ San Juan Basin divestment, net of tax           (22.1 )                              (37.4 )
----------------------------------------------------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- --------------------
Adjusted Net Income from Continuing Operations (Non-GAAP)                  (967.8 )                              530.7  
----------------------------------------------------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- --------------------
Interest expense                                                                                                   43.1                                                                       37.8
Income tax expense (benefit) *                                                                                   (548.1 )                                                                     20.1
Depreciation, depletion and amortization *                                                                        585.7                                                                      492.5
Accretion expense *                                                                                                 6.7                                                                        6.0
Exploration expense *                                                                                               7.8                                                                       14.6
Dry hole expense *                                                                                                  7.1                                                                        9.2
Adjustment for asset impairment                                                                                 1,292.3                                                                      416.8
Adjustment for mark-to-market (gains) losses *                                                                    281.8                                                                     (315.4 )
Adjustment for pension and pension settlement expenses                                                             31.3                                                                       18.9
Adjustment for loss from discontinued operations, net of tax                                                        0.0                                                                      (29.3 )
Adjustment for gain on disposal from discontinued operations, net             0.0            (439.1 )
of tax
----------------------------------------------------------------- -------------------- -------------------- ----------- -------------------- -------------------- -------------------- ----------- --------------------
Energen Adjusted EBITDAX from Continuing Operations (Non-GAAP)              739.8             762.9  
================================================================= ==================== ==================== =========== ==================== ==================== ==================== =========== ====================
                                                                                                                                                                                        
Note: Amounts may not sum due to rounding
                                                                                                                                                                                        
* Amount adjusted to exclude San Juan Basin divestment in either
current or prior period. See reconciliation to GAAP Information for
the Quarter and Year-to-Date Ended 12/31/2015 and 12/31/2014.
 
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Non-GAAP Financial Measures
 
The consolidated statement of income excluding certain divestments
is a Non-GAAP financial measure (GAAP refers to generally accepted
accounting principles). Energen believes excluding information
associated with the divestment of assets held in the San Juan
Basin (completed in the first quarter of 2015) provides analysts
and investors useful information to understand the financial
performance of the company from ongoing business operations.
Further, this information is useful in comparing the company and
other oil and gas producing companies operating primarily in the
Permian Basin.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                
                                                                                                       ------------------------------------------------------------------------ -------------------- -------------------- -------------------- -------------------- --------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------------------------------------ -------------------- --------------------
Energen Net Income (Loss) Excluding San Juan Divestment
Reconciliation to GAAP Information                                                                                                                                                                                                                                                                                    Quarter Ended
                                                                                                                                                                                                                                                                                                                    December 31, 2015
(in thousands except per share and production data)                                                     
                                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                               GAAP                                    $/BOE                             San Juan Basin                              $/BOE                                  Non-GAAP                                  $/BOE
                                                                                                       ------------------------------------------------------------------------ -------------------- -------------------- -------------------- -------------------- --------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------------------------------------ -------------------- --------------------
Revenues
  Oil, natural gas liquids and natural gas sales                                                                          $   167,751                                                                                                                                                  $     11                                                                                                                                                  $   167,740
  Gain (loss) on derivative instruments                               25,048                                $      -                  25,048        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
    Total Revenues                                                   192,799                   11                 192,788        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Operating Costs and Expenses
  Oil, natural gas liquids & natural gas production                                                                            52,447                                                                               $8.79                                                                    (1 )                                                                             $0.00                                                                   52,448                                                                               $8.79
  Production and ad valorem taxes                                                                                              11,597                                                                               $1.94                                                                     1                                                                               $0.00                                                                   11,596                                                                               $1.94
  O&G Depreciation, depletion and amortization                                                                                158,371                                                                              $26.54                                                                     -                                                                               $0.00                                                                  158,371                                                                              $26.54
  FF&E Depreciation, depletion and amortization                                                                                 1,413                                                                               $0.24                                                                     -                                                                               $0.00                                                                    1,413                                                                               $0.24
  Asset impairment                                                                                                            825,918                                                                                                                                                         -                                                                                                                                                      825,918
  Exploration                                                                                                                   2,604                                                                                                                                                         -                                                                                                                                                        2,604
  General and administrative                                                                                                   54,794                                                                               $9.18                                                                     -                                                                               $0.00                                                                   54,794                                                                               $9.18
  Accretion of discount on asset retirement obligations                                                                         1,729                                                                                                                                                         -                                                                                                                                                        1,729
  (Gain) loss on sale of assets and other                               (524 )                                   113                    (637 )                         
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
    Total costs and expenses                                       1,108,349                  113               1,108,236        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Operating Income (Loss)                                             (915,550 )                                  (102 )                                 (915,448 )                         
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Other Income/(Expense)
  Interest Expense                                                                                                            (10,022 )                                                                                                                                                       -                                                                                                                                                      (10,022 )
  Other income                                                            80                    -                      80        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
    Total other expense                                               (9,942 )                                     -                  (9,942 )                         
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Income (Loss) from Continuing Operations Before Income Taxes                                                                 (925,492 )                                                                                                                                                    (102 )                                                                                                                                                   (925,390 )
Income tax expense (benefit)                                        (334,686 )                                   (37 )                                 (334,649 )                         
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Income (Loss) From Continuing Operations                            (590,806 )                                   (65 )                                 (590,741 )                         
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Discontinued Operations, net of tax
Income (loss) from discontinued operations                                                                                          -                                                                                                                                                         -                                                                                                                                                            -
Gain on Disposal of discontinued ops                                       -                    -                       -        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Income from discontinued ops                                               -                    -                       -        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Net Income (Loss)                                                                   $  (590,806 )                                                 $    (65 )                                                 $  (590,741 )                         
============================================================ ==================== ==================== ==================== ========= ==================== ==================== ==================== ==================== ==================== ==================== ==================== ====== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ========= ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Diluted Earnings Per Average Common Share
Continuing Operations                                                                                                     $     (7.50 )                                                                                                                                                $      -                                                                                                                                                  $     (7.50 )
Discontinued Operations                                                             $         -                                $      -                                $         -        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Net Income (Loss)                                                                   $     (7.50 )                                                 $      -                                $     (7.50 )                         
============================================================ ==================== ==================== ==================== ========= ==================== ==================== ==================== ==================== ==================== ==================== ==================== ====== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ========= ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Basic earning Per Average Common Share
Continuing Operations                                                                                                     $     (7.50 )                                                                                                                                                $      -                                                                                                                                                  $     (7.50 )
Discontinued Operations                                                             $         -                                $      -                                $         -        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Net Income (Loss)                                                                   $     (7.50 )                                                 $      -                                $     (7.50 )                         
============================================================ ==================== ==================== ==================== ========= ==================== ==================== ==================== ==================== ==================== ==================== ==================== ====== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ========= ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Oil                                                                                                                             3,584                                                                                                                                                         -                                                                                                                                                        3,584
NGL                                                                                                                             1,078                                                                                                                                                         -                                                                                                                                                        1,078
Natural Gas                                                            1,305                    -                   1,305        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Total Production (mboe)                                                5,967                    -                   5,967        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Total Production (boepd)                                              64,859                    -                  64,859        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Note: Amounts may not sum due to rounding
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Non-GAAP Financial Measures
 
The consolidated statement of income excluding certain divestments
is a Non-GAAP financial measure (GAAP refers to generally accepted
accounting principles). Energen believes excluding information
associated with the divestment of assets held in the San Juan
Basin (completed in the first quarter of 2015) provides analysts
and investors useful information to understand the financial
performance of the company from ongoing business operations.
Further, this information is useful in comparing the company and
other oil and gas producing companies operating primarily in the
Permian Basin.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                        
                                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Energen Net Income (Loss) Excluding San Juan Divestment
Reconciliation to GAAP Information                                                                                                                                                                                                                                                                                  Quarter Ended
                                                                                                                                                                                                                                                                                                                  December 31, 2014
(in thousands except per share and production data)                                                     
                                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              GAAP                                   $/BOE                             San Juan Basin                              $/BOE                                 Non-GAAP                                 $/BOE
                                                                                                       ---------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------------------------------------------------------- -------------------- ----------------------------------------- -------------------- ---------------------------------------------------------------------- -------------------- --------------------
Revenues
  Oil, natural gas liquids and natural gas sales                                                                          $ 286,747                                                                                                                                                  $ 35,307                                                                                                                                                  $ 251,440
  Gain (loss) on derivative instruments                            325,521                                $  4,609               320,912        
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
    Total Revenues                                                 612,268               39,916               572,352        
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
Operating Costs and Expenses
  Oil, natural gas liquids & natural gas production                                                                          74,571                                                                              $11.16                                                                14,471                                                                     $9.28                                                                           60,100                                                                              $11.74
  Production and ad valorem taxes                                                                                            20,961                                                                               $3.14                                                                 3,141                                                                     $2.01                                                                           17,820                                                                               $3.48
  O&G Depreciation, depletion and amortization                                                                              147,487                                                                              $22.08                                                                11,933                                                                     $7.65                                                                          135,554                                                                              $26.47
  FF&E Depreciation, depletion and amortization                                                                               1,509                                                                               $0.23                                                                    70                                                                     $0.04                                                                            1,439                                                                               $0.28
  Asset impairment                                                                                                          235,301                                                                                                                                                         -                                                                                                                                                    235,301
  Exploration                                                                                                                 6,872                                                                                                                                                       396                                                                                                                                                      6,476
  General and administrative                                                                                                 28,553                                                                               $4.27                                                                  (611 )                                                                  ($0.39 )                                                                         29,164                                                                               $5.69
  Accretion of discount on asset retirement obligations                                                                       1,958                                                                                                                                                       398                                                                                                                                                      1,560
  (Gain) loss on sale of assets and other                              833                    -                   833        
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
    Total costs and expenses                                       518,045               29,798               488,247        
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
Operating Income (Loss)                                             94,223               10,118                84,105        
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
Other Income/(Expense)
  Interest Expense                                                                                                          (10,397 )                                                                                                                                                       -                                                                                                                                                    (10,397 )
  Other income                                                         134                    -                   134        
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
    Total other expense                                            (10,263 )                                     -               (10,263 )                         
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Income (Loss) from Continuing Operations Before Income Taxes                                                                 83,960                                                                                                                                                    10,118                                                                                                                                                     73,842
Income tax expense (benefit)                                        17,441                3,596                13,845        
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
Income (Loss) From Continuing Operations                            66,519                6,522                59,997        
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
Discontinued Operations, net of tax
Income (loss) from discontinued operations                                                                                   (1,143 )                                                                                                                                                       -                                                                                                                                                     (1,143 )
Gain on Disposal of discontinued ops                                    42                    -                    42        
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
Income from discontinued ops                                        (1,101 )                                     -                (1,101 )                         
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
Net Income (Loss)                                                                   $  65,418                                $  6,522                                $  58,896        
============================================================ ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ==================== ==================== ==================== ====== ==================== ==================== ==================== ========================================= ==================== ==================== ======= ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Diluted Earnings Per Average Common Share
Continuing Operations                                                                                                     $    0.91                                                                                                                                                  $  (0.09 )                                                                                                                                                $    0.82
Discontinued Operations                                                             $   (0.02 )                                                 $      -                                $   (0.02 )                         
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
Net Income (Loss)                                                                   $    0.89                                $  (0.09 )                                                 $    0.80        
============================================================ ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ==================== ==================== ==================== ====== ==================== ==================== ==================== ========================================= ==================== ==================== ======= ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Basic earning Per Average Common Share
Continuing Operations                                                                                                     $    0.91                                                                                                                                                  $  (0.09 )                                                                                                                                                $    0.82
Discontinued Operations                                                             $   (0.01 )                                                 $      -                                $   (0.01 )                         
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
Net Income (Loss)                                                                   $    0.90                                $  (0.09 )                                                 $    0.81        
============================================================ ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ==================== ==================== ==================== ====== ==================== ==================== ==================== ========================================= ==================== ==================== ======= ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Oil                                                                                                                           3,213                                                                                                                                                         4                                                                                                                                                      3,209
NGL                                                                                                                           1,027                                                                                                                                                       148                                                                                                                                                        879
Natural Gas                                                          2,441                1,408                 1,033        
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
Total Production (mboe)                                              6,681                1,560                 5,121        
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
Total Production (boepd)                                            72,620               16,957                55,663        
------------------------------------------------------------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Note: Amounts may not sum due to rounding
 
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Non-GAAP Financial Measures
 
The consolidated statement of income excluding certain divestments
is a Non-GAAP financial measure (GAAP refers to generally accepted
accounting principles). Energen believes excluding information
associated with the divestment of assets held in the San Juan
Basin (completed in the first quarter of 2015) provides analysts
and investors useful information to understand the financial
performance of the company from ongoing business operations.
Further, this information is useful in comparing the company and
other oil and gas producing companies operating primarily in the
Permian Basin.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                        
                                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Energen Net Income (Loss) Excluding San Juan Divestment
Reconciliation to GAAP Information                                                                                                                                                                                                                                                                                  Year-to-Date Ended
                                                                                                                                                                                                                                                                                                                     December 31, 2015
(in thousands except per share and production data)                                                     
                                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                               GAAP                                     $/BOE                              San Juan Basin                              $/BOE                                  Non-GAAP                                   $/BOE
                                                                                                       ------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- -------------------- ----------------------------------------- -------------------- ------------------------------------------------------------------------- -------------------- --------------------
Revenues
  Oil, natural gas liquids and natural gas sales                                                                          $    763,261                                                                                                                                                  $  24,246                                                                                                                                                  $    739,015
  Gain (loss) on derivative instruments                               115,293                                $   8,369                  106,924        
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
    Total Revenues                                                    878,554                32,615                  845,939        
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Operating Costs and Expenses
  Oil, natural gas liquids & natural gas production                                                                            228,380                                                                               $9.51                                                                 14,526                                                                     $9.77                                                                             213,854                                                                               $9.49
  Production and ad valorem taxes                                                                                               57,380                                                                               $2.39                                                                  1,908                                                                     $1.28                                                                              55,472                                                                               $2.46
  O&G Depreciation, depletion and amortization                                                                                 587,882                                                                              $24.47                                                                  8,068                                                                     $5.43                                                                             579,814                                                                              $25.73
  FF&E Depreciation, depletion and amortization                                                                                  5,907                                                                               $0.25                                                                      -                                                                     $0.00                                                                               5,907                                                                               $0.26
  Asset impairment                                                                                                           1,292,308                                                                                                                                                          -                                                                                                                                                     1,292,308
  Exploration                                                                                                                   14,878                                                                                                                                                          -                                                                                                                                                        14,878
  General and administrative                                                                                                   149,132                                                                               $6.21                                                                   (560 )                                                                  ($0.38 )                                                                           149,692                                                                               $6.64
  Accretion of discount on asset retirement obligations                                                                          7,108                                                                                                                                                        433                                                                                                                                                         6,675
  (Gain) loss on sale of assets and other                             (26,570 )                                (26,969 )                                       399        
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
    Total costs and expenses                                        2,316,405                (2,594 )                                 2,318,999        
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Operating Income (Loss)                                            (1,437,851 )                                 35,209               (1,473,060 )                         
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Other Income/(Expense)
  Interest Expense                                                                                                             (43,108 )                                                                                                                                                        -                                                                                                                                                       (43,108 )
  Other income                                                            223                     -                      223        
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
    Total other expense                                               (42,885 )                                      -                  (42,885 )                         
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Income (Loss) from Continuing Operations Before Income Taxes                                                                (1,480,736 )                                                                                                                                                   35,209                                                                                                                                                    (1,515,945 )
Income tax expense (benefit)                                         (535,005 )                                 13,133                 (548,138 )                         
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Income (Loss) From Continuing Operations                             (945,731 )                                 22,076                 (967,807 )                         
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Discontinued Operations, net of tax
Income (loss) from discontinued operations                                                                                           -                                                                                                                                                          -                                                                                                                                                             -
Gain on Disposal of discontinued ops                                        -                     -                        -        
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Income from discontinued ops                                                -                     -                        -        
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Net Income (Loss)                                                                   $   (945,731 )                                                 $  22,076                                $   (967,807 )                         
============================================================ ==================== ==================== ==================== ========== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ========================================= ==================== ==================== ========== ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Diluted Earnings Per Average Common Share
Continuing Operations                                                                                                     $     (12.43 )                                                                                                                                                $   (0.29 )                                                                                                                                                $     (12.72 )
Discontinued Operations                                                             $          -                                $       -                                $          -        
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Net Income (Loss)                                                                   $     (12.43 )                                                 $   (0.29 )                                                 $     (12.72 )                         
============================================================ ==================== ==================== ==================== ========== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ========================================= ==================== ==================== ========== ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Basic earning Per Average Common Share
Continuing Operations                                                                                                     $     (12.43 )                                                                                                                                                $   (0.29 )                                                                                                                                                $     (12.72 )
Discontinued Operations                                                             $          -                                $       -                                $          -        
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Net Income (Loss)                                                                   $     (12.43 )                                                 $   (0.29 )                                                 $     (12.72 )                         
============================================================ ==================== ==================== ==================== ========== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ========================================= ==================== ==================== ========== ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Oil                                                                                                                             14,023                                                                                                                                                          1                                                                                                                                                        14,022
NGL                                                                                                                              4,065                                                                                                                                                        139                                                                                                                                                         3,926
Natural Gas                                                             5,934                 1,347                    4,587        
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Total Production (mboe)                                                24,022                 1,487                   22,535        
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Total Production (boepd)                                               65,814                 4,074                   61,740        
------------------------------------------------------------ -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Note: Amounts may not sum due to rounding
 
                                                                                                                                                                                                                                                                                        
Non-GAAP Financial Measures
 
The consolidated statement of income excluding certain divestments
is a Non-GAAP financial measure (GAAP refers to generally accepted
accounting principles). Energen believes excluding information
associated with the divestment of assets held in the San Juan
Basin (completed in the first quarter of 2015) provides analysts
and investors useful information to understand the financial
performance of the company from ongoing business operations.
Further, this information is useful in comparing the company and
other oil and gas producing companies operating primarily in the
Permian Basin.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                        
                                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Energen Net Income (Loss) Excluding San Juan Divestment
Reconciliation to GAAP Information                                                                                                                                                                                                                                                                                 Year-to-Date Ended
                                                                                                                                                                                                                                                                                                                    December 31, 2014
(in thousands except per share and production data)                                                     
                                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                               GAAP                                    $/BOE                              San Juan Basin                              $/BOE                                  Non-GAAP                                  $/BOE
                                                                                                       ------------------------------------------------------------------------ -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- -------------------- ----------------------------------------- -------------------- ------------------------------------------------------------------------ -------------------- --------------------
Revenues
  Oil, natural gas liquids and natural gas sales                                                                          $ 1,344,194                                                                                                                                                  $ 169,997                                                                                                                                                  $ 1,174,197
  Gain (loss) on derivative instruments                              335,019                                $  22,354                 312,665        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
    Total Revenues                                                 1,679,213               192,351               1,486,862        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Operating Costs and Expenses
  Oil, natural gas liquids & natural gas production                                                                           274,432                                                                              $10.68                                                                 59,736                                                                     $9.07                                                                            214,696                                                                              $11.24
  Production and ad valorem taxes                                                                                             102,063                                                                               $3.97                                                                 15,085                                                                     $2.29                                                                             86,978                                                                               $4.55
  O&G Depreciation, depletion and amortization                                                                                543,738                                                                              $21.17                                                                 55,786                                                                     $8.47                                                                            487,952                                                                              $25.55
  FF&E Depreciation, depletion and amortization                                                                                 4,826                                                                               $0.19                                                                    246                                                                     $0.04                                                                              4,580                                                                               $0.24
  Asset impairment                                                                                                            416,801                                                                                                                                                          -                                                                                                                                                      416,801
  Exploration                                                                                                                  28,090                                                                                                                                                      4,244                                                                                                                                                       23,846
  General and administrative                                                                                                  122,052                                                                               $4.75                                                                 (2,294 )                                                                  ($0.35 )                                                                          124,346                                                                               $6.51
  Accretion of discount on asset retirement obligations                                                                         7,608                                                                                                                                                      1,561                                                                                                                                                        6,047
  (Gain) loss on sale of assets and other                              2,642                     -                   2,642        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
    Total costs and expenses                                       1,502,252               134,364               1,367,888        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Operating Income (Loss)                                              176,961                57,987                 118,974        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Other Income/(Expense)
  Interest Expense                                                                                                            (37,771 )                                                                                                                                                        -                                                                                                                                                      (37,771 )
  Other income                                                         1,181                     -                   1,181        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
    Total other expense                                              (36,590 )                                      -                 (36,590 )                         
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Income (Loss) from Continuing Operations Before Income Taxes                                                                  140,371                                                                                                                                                     57,987                                                                                                                                                       82,384
Income tax expense (benefit)                                          40,728                20,609                  20,119        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Income (Loss) From Continuing Operations                              99,643                37,378                  62,265        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Discontinued Operations, net of tax
Income (loss) from discontinued operations                                                                                     29,292                                                                                                                                                          -                                                                                                                                                       29,292
Gain on Disposal of discontinued ops                                 439,097                     -                 439,097        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Income from discontinued ops                                         468,389                     -                 468,389        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Net Income (Loss)                                                                   $   568,032                                $  37,378                                $   530,654        
============================================================ ==================== ==================== ==================== ========= ==================== ==================== ==================== ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ========================================= ==================== ==================== ========= ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Diluted Earnings Per Average Common Share
Continuing Operations                                                                                                     $      1.36                                                                                                                                                  $   (0.51 )                                                                                                                                                $      0.85
Discontinued Operations                                                             $      6.39                                $       -                                $      6.39        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Net Income (Loss)                                                                   $      7.75                                $   (0.51 )                                                 $      7.24        
============================================================ ==================== ==================== ==================== ========= ==================== ==================== ==================== ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ========================================= ==================== ==================== ========= ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Basic earning Per Average Common Share
Continuing Operations                                                                                                     $      1.37                                                                                                                                                  $   (0.52 )                                                                                                                                                $      0.85
Discontinued Operations                                                             $      6.42                                $    0.01                                $      6.43        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Net Income (Loss)                                                                   $      7.79                                $   (0.51 )                                                 $      7.28        
============================================================ ==================== ==================== ==================== ========= ==================== ==================== ==================== ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ========================================= ==================== ==================== ========= ==================== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Oil                                                                                                                            11,814                                                                                                                                                         16                                                                                                                                                       11,798
NGL                                                                                                                             4,103                                                                                                                                                        695                                                                                                                                                        3,408
Natural Gas                                                            9,767                 5,876                   3,891        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Total Production (mboe)                                               25,684                 6,587                  19,097        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
Total Production (boepd)                                              70,367                18,047                  52,321        
------------------------------------------------------------ -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Note: Amounts may not sum due to rounding
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Non-GAAP Financial Measures
 
Excluding production associated with certain divestments is a
Non-GAAP financial measure (GAAP refers to generally accepted
accounting principles). Energen believes excluding data associated
with the divestment of assets in the San Juan Basin (including the
completed sale in the first quarter of 2015) and non-core
properties held for sale provides analysts and investors useful
information to understand the financial performance of the company
from ongoing business operations. Further, this measure is useful
in comparing the company and other oil and gas producing companies
operating primarily in the Permian Basin.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        
                                                                                                              
                                                                                                             ---------------------------------------------------------------------------------------------------------------------------------------------------
Energen Production Excluding San Juan Divestment and Planned Sales
Reconciliation to GAAP Information                                                                                                                                           Year-to-Date Ended
                                                                                                                                                                              December 31, 2015
                                                                                                                          
                                                                                                             -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                     GAAP              San Juan Basin and            Non-GAAP
                                                                                                                                                                               Non-Core Assets
                                                                                                             -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                            
Oil                                                                                                                        14,023                                                            658                                                         13,365
NGL                                                                                                                         4,065                                                            787                                                          3,278
Natural Gas                                                                           5,934                    2,358                    3,576
------------------------------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Production (mboe)                                                              24,022                    3,803                   20,219
------------------------------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Production (boepd)                                                             65,814                   10,420                   55,397
------------------------------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                            
Note: Amounts may not sum due to rounding
 
 
                                                                                                                                                               CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                                                                                                                                                                                  For the
                                                                                                                                                                3 months ending December 31, 2015 and 2014
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                              4th Quarter                                                                                
                                                                                                       ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                   
(in thousands, except per share data)                                                              2015                                                              2014                                                  Change
------------------------------------------------------------ -------------------- -------------------- --------------------------------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------- -------------------- -----------------------------------------------------
                                                                                                                                                                                                                                                                                                                                            
Revenues
Oil, natural gas liquids and natural gas sales                                                                            $                        167,751                                                                                   $ 286,747                                                                                   $   (118,996 )
Gain on derivative instruments, net                                                        25,048         325,521           (300,473 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
       Total revenues                                                                     192,799         612,268           (419,469 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production                                                                                                 52,447                                                                                      74,571                                                                                        (22,124 )
Production and ad valorem taxes                                                                                                                     11,597                                                                                      20,961                                                                                         (9,364 )
Depreciation, depletion and amortization                                                                                                           159,784                                                                                     148,996                                                                                         10,788
Asset impairment                                                                                                                                   825,918                                                                                     235,301                                                                                        590,617
Exploration                                                                                                                                          2,604                                                                                       6,872                                                                                         (4,268 )
General and administrative                                                                                                                          54,794                                                                                      28,553                                                                                         26,241
Accretion of discount on asset retirement obligations                                                                                                1,729                                                                                       1,958                                                                                           (229 )
(Gain) loss on sale of assets and other                                                      (524 )                              833             (1,357 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
       Total operating costs and expenses                                               1,108,349         518,045            590,304  
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
Operating Income (Loss)                                                                  (915,550 )                           94,223         (1,009,773 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
Other Income (Expense)
Interest expense                                                                                                                                   (10,022 )                                                                                   (10,397 )                                                                                          375
Other income                                                                                   80             134                (54 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
       Total other expense                                                                 (9,942 )                          (10,263 )                                 321  
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
Income (Loss) From Continuing Operations Before Income Taxes                                                                                      (925,492 )                                                                                    83,960                                                                                     (1,009,452 )
Income tax expense (benefit)                                                             (334,686 )                           17,441           (352,127 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
Income (Loss) From Continuing Operations                                                 (590,806 )                           66,519           (657,325 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
Discontinued Operations, net of tax
Loss from discontinued operations                                                                                           a^’                                                                                      (1,143 )                                                                                        1,143
Gain on disposal of discontinued operations, net                   a^’              42                (42 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
Loss From Discontinued Operations                                  a^’          (1,101 )                               1,101  
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
Net Income (Loss)                                                                   $                       (590,806 )                                           $  65,418                          $   (656,224 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
Diluted Earnings Per Average Common Share
Continuing operations                                                                                                     $                          (7.50 )                                                                                 $    0.91                                                                                   $      (8.41 )
Discontinued operations                                            a^’           (0.02 )                                0.02  
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
Net Income (Loss)                                                                   $                          (7.50 )                                           $    0.89                          $      (8.39 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
Basic Earnings Per Average Common Share
Continuing operations                                                                                                     $                          (7.50 )                                                                                      0.91                                                                                   $      (8.41 )
Discontinued operations                                            a^’           (0.01 )                                0.01  
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
Net Income (Loss)                                                                   $                          (7.50 )                                           $    0.90                          $      (8.40 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
Diluted Avg. Common Shares Outstanding                                                     78,783          73,343              5,440  
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
Basic Avg. Common Shares Outstanding                                                       78,783          72,988              5,795  
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
Dividends Per Common Share                                                          $                           0.02                          $    0.02                          $        0.0  
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                            
 
                                                                                                                                                                CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                                                                                                                                                                                     For
                                                                                                                                                               the 12 months ending December 31, 2015 and 2014
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                              Year-to-date                                                                                 
                                                                                                       -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                   
(in thousands, except per share data)                                                              2015                                                               2014                                                   Change
------------------------------------------------------------ -------------------- -------------------- --------------------------------------------------------------------------------------------- -------------------- ------------------------------------------------------------------------ -------------------- -----------------------------------------------------
                                                                                                                                                                                                                                                                                                                                              
Revenues
Oil, natural gas liquids and natural gas sales                                                                            $                        763,261                                                                                   $ 1,344,194                                                                                   $   (580,933 )
Gain on derivative instruments, net                                                       115,293           335,019           (219,726 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
       Total revenues                                                                     878,554         1,679,213           (800,659 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Operating Costs and Expenses
Oil, natural gas liquids and natural gas production                                                                                                228,380                                                                                       274,432                                                                                        (46,052 )
Production and ad valorem taxes                                                                                                                     57,380                                                                                       102,063                                                                                        (44,683 )
Depreciation, depletion and amortization                                                                                                           593,789                                                                                       548,564                                                                                         45,225
Asset impairment                                                                                                                                 1,292,308                                                                                       416,801                                                                                        875,507
Exploration                                                                                                                                         14,878                                                                                        28,090                                                                                        (13,212 )
General and administrative                                                                                                                         149,132                                                                                       122,052                                                                                         27,080
Accretion of discount on asset retirement obligations                                                                                                7,108                                                                                         7,608                                                                                           (500 )
(Gain) loss on sale of assets and other                                                   (26,570 )                              2,642            (29,212 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
       Total operating costs and expenses                                               2,316,405         1,502,252            814,153  
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Operating Income (Loss)                                                                (1,437,851 )                            176,961         (1,614,812 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Other Income (Expense)
Interest expense                                                                                                                                   (43,108 )                                                                                     (37,771 )                                                                                       (5,337 )
Other income                                                                                  223             1,181               (958 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
       Total other expense                                                                (42,885 )                            (36,590 )                              (6,295 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Income (Loss) From Continuing Operations Before Income Taxes                                                                                    (1,480,736 )                                                                                     140,371                                                                                     (1,621,107 )
Income tax expense (benefit)                                                             (535,005 )                             40,728           (575,733 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Income (Loss) From Continuing Operations                                                 (945,731 )                             99,643         (1,045,374 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Discontinued Operations, net of tax
Income from discontinued operations                                                                                         a^’                                                                                        29,292                                                                                        (29,292 )
Gain on disposal of discontinued operations, net                   a^’           439,097           (439,097 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Income From Discontinued Operations                                a^’           468,389           (468,389 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Net Income (Loss)                                                                   $                       (945,731 )                                           $   568,032                          $ (1,513,763 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Diluted Earnings Per Average Common Share
Continuing operations                                                                                                     $                         (12.43 )                                                                                 $      1.36                                                                                   $     (13.79 )
Discontinued operations                                            a^’              6.39              (6.39 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Net Income (Loss)                                                                   $                         (12.43 )                                           $      7.75                          $     (20.18 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Basic Earnings Per Average Common Share
Continuing operations                                                                                                     $                         (12.43 )                                                                                 $      1.37                                                                                   $     (13.80 )
Discontinued operations                                            a^’              6.42              (6.42 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Net Income (Loss)                                                                   $                         (12.43 )                                           $      7.79                          $     (20.22 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Diluted Avg. Common Shares Outstanding                                                     76,078            73,275              2,803  
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Basic Avg. Common Shares Outstanding                                                       76,078            72,897              3,181  
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Dividends Per Common Share                                                          $                           0.08                          $      0.47                          $      (0.39 )
------------------------------------------------------------ -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                         
 
                                                                                                              CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                                                                                                                               As of
                                                                                                              December 31, 2015 and December 31, 2014
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                  
                                                                                                                ------------------------------------------------------------------------ -------------------- -------------------- ------------------------------
(in thousands)                                                                              December 31, 2015                                       December 31, 2014
--------------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------------------ -------------------- ----------------------------------------------------
                                                                                                                                                                       
ASSETS
Current Assets
Cash and cash equivalents                                                                                                          $                          1,272                                                              $                          1,852
Accounts receivable, net                                                                                                                                     63,097                                                                                       157,678
Inventories                                                                                                                                                  11,255                                                                                        14,251
Assets held for sale                                                                                                                                         93,739                                                                                       395,797
Derivative instruments                                                                                                                                       56,963                                                                                       322,337
Prepayments and other                                                                               20,014                               27,445
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                    
       Total current assets                                                                        246,340                              919,360
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                    
Property, Plant and Equipment
Oil and natural gas properties, net                                                                                                                       4,302,332                                                                                     5,152,748
Other property and equipment, net                                                                   48,358                               46,389
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                    
       Total property, plant and equipment, net                                                  4,350,690                            5,199,137
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                    
Other postretirement assets                                                                                                                                   3,881                                                                a^’
Other assets                                                                                        12,782                               19,761
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                    
TOTAL ASSETS                                                                                 $                      4,613,693                        $                      6,138,258
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                    
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable                                                                                                                   $                         64,742                                                              $                        101,453
Accrued taxes                                                                                                                                                 5,801                                                                                         5,530
Accrued wages and benefits                                                                                                                                   28,563                                                                                        21,553
Accrued capital costs                                                                                                                                        79,206                                                                                       207,461
Revenue and royalty payable                                                                                                                                  60,493                                                                                        72,047
Liabilities related to assets held for sale                                                                                               12,789                                                                     24,230
Pension liabilities                                                                                                                                          15,685                                                                                        24,609
Deferred income taxes                                                                                                                a^’                                                                                        79,164
Derivative instruments                                                                                                                                          459                                                                                           988
Other                                                                                               19,783                               23,288
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                    
       Total current liabilities                                                                   287,521                              560,323
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                    
Long-term debt                                                                                                                                              776,087                                                                                     1,038,563
Asset retirement obligations                                                                                                                                 89,990                                                                                        94,060
Pension and other postretirement liabilities                                                                                         a^’                                                                                        15,935
Deferred income taxes                                                                                                                                       552,369                                                                                     1,000,486
Other long-term liabilities                                                                         11,866                               14,287
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                    
       Total liabilities                                                                         1,717,833                            2,723,654
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                    
Total Shareholders’ Equity                                            2,895,860                            3,414,604
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                    
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                        $                      4,613,693                        $                      6,138,258
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                    
 
                                                                                                                                                                               SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
                                                                                                                                                                           For the 3 months ending December 31, 2015 and 2014
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                  
                                                                                                                                                                                             4th Quarter
                                                                                                                ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                            
(in thousands, except sales price and per unit data)                                                        2015                                                              2014                                                            Change
--------------------------------------------------------------------- -------------------- -------------------- --------------------------------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------- -------------------- -------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                     
Operating and production data from continuing operations
Oil, natural gas liquids and natural gas sales
   Oil                                                                                                                             $                        140,505                                                                                   $ 211,916                                                                                   $                        (71,411 )
   Natural gas liquids                                                                                                                                       12,240                                                                                      20,293                                                                                                             (8,053 )
   Natural gas                                                                                      15,006          54,538                                (39,532 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------------------------------ --------------------
Total                                                                                        $                        167,751                          $ 286,747                          $                       (118,996 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                     
Open non-cash mark-to-market gains (losses) on derivative instruments
   Oil                                                                                                                             $                        (92,484 )                                                                                 $ 230,490                                                                                   $                       (322,974 )
   Natural gas liquids                                                                                                               a^’                                                                                      (1,316 )                                                                                                            1,316
   Natural gas                                                                                     (11,586 )                           32,286                                (43,872 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------------------------------ --------------------
Total                                                                                        $                       (104,070 )                                           $ 261,460                          $                       (365,530 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                                                                     
Closed gains (losses) on derivative instruments
  Oil                                                                                                                              $                        115,519                                                                                   $  50,945                                                                                   $                         64,574
  Natural gas liquids                                                                                                                a^’                                                                                       4,990                                                                                                             (4,990 )
  Natural gas                                                                                       13,599           8,126                                  5,473  
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------------------------------ --------------------
Total                                                                                        $                        129,118                          $  64,061                          $                         65,057  
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------------------------------ --------------------
  Total revenues                                                                             $                        192,799                          $ 612,268                          $                       (419,469 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                                                                     
Production volumes
   Oil (MBbl)                                                                                                                                                 3,584                                                                                       3,213                                                                                                                371
   Natural gas liquids (MMgal)                                                                                                                                 45.3                                                                                        43.1                                                                                                                2.2
   Natural gas (MMcf)                                                                                7,830          14,646                                 (6,816 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------------------------------ --------------------
Total production volumes (MBOE)                                                                      5,967           6,681                                   (714 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                                                                     
Average daily production volumes
   Oil (MBbl/d)                                                                                                                                                39.0                                                                                        34.9                                                                                                                4.1
   Natural gas liquids (MMgal/d)                                                                                                                                0.5                                                                                         0.5                                                                                     a^’
   Natural gas (MMcf/d)                                                                               85.1           159.2                                  (74.1 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------------------------------ --------------------
Total average daily production volumes (MBOE/d)                                                       64.9            72.6                                   (7.7 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                                                                     
Average realized prices excluding effects of open non-cash
mark-to-market derivative instruments
   Oil (per barrel)                                                                                                                $                          71.44                                                                                   $   81.81                                                                                   $                         (10.37 )
   Natural gas liquids (per gallon)                                                                                                $                           0.27                                                                                   $    0.59                                                                                   $                          (0.32 )
   Natural gas (per Mcf)                                                                                                           $                           3.65                                                                                   $    4.28                                                                                   $                          (0.63 )
                                                                                                                                                                                                                                                                                                                                                     
Average realized prices excluding effects of all derivative
instruments
   Oil (per barrel)                                                                                                                $                          39.20                                                                                   $   65.96                                                                                   $                         (26.76 )
   Natural gas liquids (per gallon)                                                                                                $                           0.27                                                                                   $    0.47                                                                                   $                          (0.20 )
   Natural gas (per Mcf)                                                                                                           $                           1.92                                                                                   $    3.72                                                                                   $                          (1.80 )
                                                                                                                                                                                                                                                                                                                                                     
Costs per BOE
   Oil, natural gas liquids and natural gas production expenses                                                                    $                           8.79                                                                                   $   11.16                                                                                   $                          (2.37 )
   Production and ad valorem taxes                                                                                                 $                           1.94                                                                                   $    3.14                                                                                   $                          (1.20 )
   Depreciation, depletion and amortization                                                                                        $                          26.54                                                                                   $   22.08                                                                                   $                           4.46
   Exploration expense                                                                                                             $                           0.44                                                                                   $    1.03                                                                                   $                          (0.59 )
   General and administrative*                                                                                                     $                           9.18                                                                                   $    4.27                                                                                   $                           4.91
Net capital expenditures                                                                     $                        149,119                          $ 425,045                          $                       (275,926 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------------------------------ --------------------
                                                                                                                                                                                                                                                                                                                                                     
* Includes pension and pension settlement expenses of $4.40 and $0.83
  for the three months ended December 31, 2015 and 2014, respectively.
 
                                                                                                                                                           SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
                                                                                                                                                       For the 12 months ending December 31, 2015 and 2014
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                               
                                                                                                                                                                                   Year-to-date
                                                                                                                --------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                            
(in thousands, except sales price and per unit data)                                                        2015                                                    2014                                         Change
--------------------------------------------------------------------- -------------------- -------------------- --------------------------------------------------------------------------------------------- -------------------- --------------------------------------------------- -------------------- -----------------------------------------------------
                                                                                                                                                                                                                                                                                                                                  
Operating and production data from continuing operations
Oil, natural gas liquids and natural gas sales
   Oil                                                                                                                             $                        631,663                                                                                   $   988,868                                                              $   (357,205 )
   Natural gas liquids                                                                                                                                       48,856                                                                                       110,918                                                                   (62,062 )
   Natural gas                                                                                      82,742           244,408         (161,666 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
Total                                                                                        $                        763,261                          $ 1,344,194                        $   (580,933 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                  
Open non-cash mark-to-market gains (losses) on derivative instruments
   Oil                                                                                                                             $                       (242,227 )                                                                                 $   271,200                                                              $   (513,427 )
   Natural gas liquids                                                                                                               a^’                                                                                           287                                                                      (287 )
   Natural gas                                                                                     (39,525 )                             43,958          (83,483 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
Total                                                                                        $                       (281,752 )                                           $   315,445                        $   (597,197 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                  
Closed gains (losses) on derivative instruments
  Oil                                                                                                                              $                        346,404                                                                                   $     4,377                                                              $    342,027
  Natural gas liquids                                                                                                                a^’                                                                                         6,218                                                                    (6,218 )
  Natural gas                                                                                       50,641             8,979           41,662  
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
Total                                                                                        $                        397,045                          $    19,574                        $    377,471  
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
  Total revenues                                                                             $                        878,554                          $ 1,679,213                        $   (800,659 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                  
Production volumes
   Oil (MBbl)                                                                                                                                                14,023                                                                                        11,814                                                                     2,209
   Natural gas liquids (MMgal)                                                                                                                                170.7                                                                                         172.3                                                                      (1.6 )
   Natural gas (MMcf)                                                                               35,604            58,602          (22,998 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
Total production volumes (MBOE)                                                                     24,022            25,684           (1,662 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                  
Average daily production volumes
   Oil (MBbl/d)                                                                                                                                                38.4                                                                                          32.4                                                                       6.0
   Natural gas liquids (MMgal/d)                                                                                                                                0.5                                                                                           0.5                                                                         -
   Natural gas (MMcf/d)                                                                               97.5             160.6            (63.1 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
Total average daily production volumes (MBOE/d)                                                       65.8              70.4             (4.6 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                  
Average realized prices excluding effects of open non-cash
mark-to-market derivative instruments
   Oil (per barrel)                                                                                                                $                          69.75                                                                                   $     84.07                                                              $     (14.32 )
   Natural gas liquids (per gallon)                                                                                                $                           0.29                                                                                   $      0.68                                                              $      (0.39 )
   Natural gas (per Mcf)                                                                                                           $                           3.75                                                                                   $      4.32                                                              $      (0.57 )
                                                                                                                                                                                                                                                                                                                                  
Average realized prices excluding effects of all derivative
instruments
   Oil (per barrel)                                                                                                                $                          45.04                                                                                   $     83.70                                                              $     (38.66 )
   Natural gas liquids (per gallon)                                                                                                $                           0.29                                                                                   $      0.64                                                              $      (0.35 )
   Natural gas (per Mcf)                                                                                                           $                           2.32                                                                                   $      4.17                                                              $      (1.85 )
                                                                                                                                                                                                                                                                                                                                  
Costs per BOE
   Oil, natural gas liquids and natural gas production expenses                                                                    $                           9.51                                                                                   $     10.68                                                              $      (1.17 )
   Production and ad valorem taxes                                                                                                 $                           2.39                                                                                   $      3.97                                                              $      (1.58 )
   Depreciation, depletion and amortization                                                                                        $                          24.72                                                                                   $     21.36                                                              $       3.36
   Exploration expense                                                                                                             $                           0.62                                                                                   $      1.09                                                              $      (0.47 )
   General and administrative*                                                                                                     $                           6.21                                                                                   $      4.75                                                              $       1.46
Net capital expenditures                                                                     $                      1,040,610                          $ 1,372,510                        $   (331,900 )
--------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------ -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                             
* Includes pension and pension settlement expenses of $1.30 and $0.74
  for the twelve months ended December 31, 2015 and 2014, respectively.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160211006323r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160211006323/en/

SOURCE: Energen Corporation

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


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