Energen Hedges Portion of 2008 Natural Gas and Liquids Production

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Energen Hedges Portion of 2008 Natural Gas and Liquids Production

For Release: Tuesday, March 27, 2007
Contact: Ju lie S. Ryland - 205.326.8421

BIRMINGHAM, Ala. - Energen Corporation (NYSE: EGN) announced today that it has entered into its first natural gas and natural gas liquids (NGL) hedge contracts applicable to the 2008 production of its oil and gas subsidiary, Energen Resources Corporation (ERC).

The Company today sold NYMEX natural gas contracts totaling 3.6 billion cubic feet (30 contracts per month) at a price of $8.47 per thousand cubic feet. Energen also hedged approximately 4.5 million gallons (378,000 gallons per month) of NGL production at a price of 86.5 cents per gallon. As previously disclosed, ERC has hedges in place for approximately 1.9 million barrels (160,000 barrels per month) of its 2008 oil production. The average NYMEX-equivalent price of these oil hedges is approximately $66 per barrel. Average natural gas and oil revenues per unit of production for ERC’s production associated with NYMEX contracts will reflect the impact of basis differentials. Average NGL revenue per unit of production will be net of transportation and fractionation fees.

Energen Corporation is a diversified energy holding company with headquarters in Birmingham, AL. Its two lines of business focus on the development and production of domestic, onshore natural gas, oil and NGL reserves and natural gas distribution in central and north Alabama. Energen has approximately 1.7 trillion cubic feet equivalent of proved reserves in the San Juan, Permian and Black Warrior basins and in the North Louisiana/East Texas area. More information is available at http://www.energen.com/ .

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.

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