Energen Increases 2008 Hedge Position

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Sept. 13, 2007--Energen Corporation (NYSE: EGN) announced today that its oil and gas exploration and production subsidiary, Energen Resources Corporation, has further reduced the impact of commodity price volatility on its earnings and cash flows by hedging additional 2008 production. The company's total hedge position for 2008 now stands at 69 percent of its total estimated production of 98 billion cubic feet (Bcf) equivalent.

Commodity	Hedge Vols.	2008e Production	% Hedged	NYMEX-equiv. price
Natural Gas	43.7 Bcf	64.8 Bcf	67	$8.59 / Mcf
Oil	3.0 MMBbl	4.0 MMBbl	75	$68.17 / barrel
NGL	41.3 MMgal	63.8 MMgal	65	$0.93 / gallon

                                                 
Energen Resources’ 2008 natural gas and oil hedge positions by hedge type are as follows:

Natural Gas Hedges
	Volumes (Bcf)	Assumed Differential  (per Mcf)	NYMEXe Price (per Mcf)
NYMEX	18.4	--	$8.56
San Juan Basin	25.3	$1.050	$8.62
Oil Hedges
	Volumes (Bcf)	Assumed Differential  (per Mcf)	NYMEXe Price (per Mcf)
Sour Oil (WTS)	2,398	$5.00	$67.02
NYMEX	575	--	$72.93

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.

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.