Energen Adds 2009 Natural Gas Hedges
For Release: Thursday, January 31, 2008
Contact: Julie S. Ryland, 205.326.8421
BIRMINGHAM, Ala. - Energen Corporation (NYSE: EGN) announced today that its oil and gas exploration and production subsidiary, Energen Resources Corporation, has hedged an additional 4.6 billion cubic feet (Bcf) of its 2009 natural gas production. This brings the company’s total 2009 hedge position to 57 percent of its estimated 2009 production of approximately 108 Bcf equivalent.
Energen Resources recently sold contracts for 1.2 Bcf of Permian Basin-specific natural gas at an average NYMEX-equivalent price of $8.63 per thousand cubic feet (Mcf) and hedged another 3.4 Bcf of natural gas at a NYMEX price of $8.55 per Mcf.
2009 HEDGE POSITION SUMMARY
Energen Resources’ 2009 hedge position by commodity is as follows:
Commodity Hedge Volumes 2009e Production Hedge % NYMEXe Price
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Natural Gas 43.8 Bcf 69.5 Bcf 63% $8.69/Mcf
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Oil 2.4 MMBbl 4.8 MMBbl 50% $70.75/barrel
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NGL 20.2 MMgal 68.0 MMgal 30% $1.05/gallon
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Energen Resources' 2009 natural gas and oil hedge positions by hedge type are as follows:
Natural Gas Hedges Volumes (Bcf) Assumed Differential NYMEXe Price
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$8.77 per
San Juan Basin 28.4 $1.00 per Mcf Mcf
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$8.55 per
NYMEX 14.2 -- Mcf
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$8.63 per
Permian Basin 1.2 $0.96 per Mcf Mcf
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Oil Hedges Volumes (MBbl) Assumed Differential NYMEXe Price
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$67.93 per
Sour Oil (WTS) 1,980 $5.15 per barrel barrel
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$82.40 per
NYMEX 480 -- barrel
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NOTE: Average natural gas and oil revenues per unit of production for Energen Resources’ production associated with NYMEX contracts will reflect the impact of basis differentials. Average NGL revenues per unit of production will be net of transportation and fractionation fees. For production associated with basin-specific contracts, Energen Resources will receive the contracted hedge price; the Company typically hedges basis differentials where applicable. The basin-specific contract prices have been converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources' assumed basis differentials.
This release contains statements expressing expectations of future plans, objectives and performance that constitute forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Except as otherwise disclosed, the Company's forward-looking statements do not reflect the impact of possible or pending acquisitions, divestitures or restructurings. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise. All statements based on future expectations rather than on historical facts are forward-looking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. In addition, the Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumptions and forecasts. A more complete discussion of risks and uncertainties that could affect future results of Energen and its subsidiaries is included in the Company's periodic reports filed with the Securities and Exchange Commission.
Energen Corporation is a diversified energy holding company with headquarters in Birmingham, AL. Its two lines of business are the acquisition, development and exploration of domestic, onshore natural gas, oil and NGL reserves and natural gas distribution in central and north Alabama. Energen Resources has approximately 1.7 Tcfe of proved reserves and 1.9 Tcfe of probable and possible reserves in the San Juan, Permian and Black Warrior basins and in the North Louisiana/East Texas area. Alabama Gas Corporation is the largest distributor of natural gas in Alabama. More information is available at www.energen.com .
