Energen Adds to 2009 Hedge Position

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Energen Adds to 2009 Hedge Position

1/16/2008 3:46:00 PM

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Jan. 16, 2008--Energen Corporation (NYSE: EGN) announced today that its oil and gas exploration and production subsidiary, Energen Resources Corporation, has hedged an additional 14.5 billion cubic feet of its 2009 natural gas production. This brings the company's total 2009 hedge position to 52 percent of its estimated 2009 production of approximately 108 billion cubic feet (Bcf) equivalent.

Energen Resources recently sold contracts for an additional 3.7 Bcf of San Juan Basin-specific natural gas at an average NYMEX-equivalent price of $8.51 per thousand cubic feet (Mcf) and hedged another 10.8 Bcf of natural gas at an average NYMEX price of $8.55 per Mcf.







2009 HEDGE POSITION SUMMARY
Energen Resources' 2009 hedge position by commodity is as follows:
 Commodity   Hedge Vols.   2009e Production  % Hedged   NYMEXe price
----------------------------------------------------------------------
Natural Gas    39.2 Bcf        69.5 Bcf         56       $8.71 / Mcf
----------------------------------------------------------------------
Oil           2.4 MMBbl       4.8 MMBbl         50     $70.75 / barrel
----------------------------------------------------------------------
NGL           20.2 MMgal      68.0 MMgal        30     $1.05 / gallon
----------------------------------------------------------------------

Energen Resources' 2009 natural gas and oil hedge positions by hedge
 type are as follows:
                                 Natural Gas Hedges
              --------------------------------------------------------
                             Assumed Differential  NYMEXe Price (per
              Volumes (Bcf)        (per Mcf)               Mcf)
----------------------------------------------------------------------
San Juan Basin     28.4             $1.000                $8.77
----------------------------------------------------------------------
                                     Oil Hedges
              --------------------------------------------------------
                             Assumed Differential  NYMEXe Price (per
              Volumes (MBbl)      (per barrel)           barrel)
----------------------------------------------------------------------
Sour Oil (WTS)    1,980              $5.15               $67.93
----------------------------------------------------------------------
NYMEX              480                --                 $82.40
----------------------------------------------------------------------

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

This release contains statements expressing expectations of future plans, objectives and performance that constitute forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Except as otherwise disclosed, the Company's forward-looking statements do not reflect the impact of possible or pending acquisitions, divestitures or restructurings. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise. All statements based on future expectations rather than on historical facts are forward-looking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. In addition, the Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumptions and forecasts. A more complete discussion of risks and uncertainties that could affect future results of Energen and its subsidiaries is included in the Company's periodic reports filed with the Securities and Exchange Commission.

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, AL. Its two lines of business are the acquisition, development and exploration of domestic, onshore natural gas, oil and NGL reserves and natural gas distribution in central and north Alabama. Energen Resources has approximately 1.7 Tcfe of proved reserves and 1.9 Tcfe of probable and possible reserves in the San Juan, Permian and Black Warrior basins and in the North Louisiana/East Texas area. Alabama Gas Corporation is the largest distributor of natural gas in Alabama. More information is available at www.energen.com.


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

SOURCE: Energen Corporation

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