BIRMINGHAM, Ala., Dec 11, 2008 (BUSINESS WIRE) -- Energen Corporation (NYSE: EGN) announced today that its oil and gas exploration and production subsidiary, Energen Resources Corporation, has hedged another 6 billion cubic feet (Bcf) of its 2010 natural gas production at an average NYMEX-equivalent price of $7.37 per thousand cubic feet (Mcf).

Approximately 2.5 Bcf of the new gas hedges are San Juan Basin-specific; the average NYMEX-equivalent hedge price is $7.49 per Mcf, and the assumed basis differential is $1.30 per Mcf. The other 3.5 Bcf are NYMEX swaps priced at $7.29 per Mcf.

In total for 2010, Energen Resources has hedged approximately 42.6 Bcf of its natural gas production at an average NYMEX-equivalent price of $9.12 per Mcf. Energen Resources' 2010 oil hedges total 2,160,000 barrels at a NYMEX-equivalent price of $96.85 per barrel.

2010 Hedges by Type
Natural Gas Hedges   Volumes (Bcf)    Assumed Differential   NYMEXe Price
San Juan Basin       28.3             $1.30 per Mcf          $9.28 per Mcf
NYMEX                14.3             --                     $8.79 per Mcf
Oil Hedges           Volumes (MBbl)   Assumed Differential   NYMEXe Price
Sour Oil (WTS)       1,440            $4.70 per barrel       $104.68 per barrel
NYMEX                720              --                     $81.20 per barrel

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.

SOURCE: Energen Corporation

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