Energen (EGN) 8-K Energen Reports 1st Quarter Results, Initiates 2007 Earnings Guidance

Exhibit 99.2

Consolidated Statements of Income (Unaudited)
For the 3 months ending March 31, 2006 and 2005

	1st Quarter
(in thousands, except per share data)		2006		2005		Change
Operating Revenues
Oil and gas operations	$	169,519	$	102,880	$	66,639
Natural gas distribution		318,623		258,128		60,495
Total operating revenues		488,142		361,008		127,134
Operating Expenses
Cost of gas		194,050		136,855		57,195
Operations and maintenance		74,483		60,405		14,078
Depreciation, depletion and amortization		34,297		31,425		2,872
Taxes, other than income taxes		32,679		26,550		6,129
Accretion expense		898		643		255
Total operating expenses		336,407		255,878		80,529
Operating Income		151,735		105,130		46,605
Other Income (Expense)
Interest expense		(13,177)		(11,670)		(1,507)
Other income		707		353		354
Other expense		(229)		(268)		39
Total other expense		(12,699)		(11,585)		(1,114)
Income From Continuing Operations Before Income Taxes		139,036		93,545		45,491
Income tax expense		51,535		34,603		16,932
Income From Continuing Operations		87,501		58,942		28,559
Discontinued Operations, Net of Taxes
Loss from discontinued operations		(7)		(19)		12
Gain on disposal of discontinued operations		-		123		(123)
Income (Loss) From Discontinued Operations		(7)		104		(111)
Net Income	$	87,494	$	59,046	$	28,448
Diluted Earnings Per Average Common Share*
Continuing operations	$	1.18	$	0.80	$	0.38
Discontinued operations		-		-		-
Net Income	$	1.18	$	0.80	$	0.38
Basic Earnings Per Average Common Share*
Continuing operations	$	1.19	$	0.81	$	0.38
Discontinued operations		-		-		-
Net Income	$	1.19	$	0.81	$	0.38
Diluted Avg. Common Shares Outstanding*		74,094		73,657		437
Basic Avg. Common Shares Outstanding*		73,268		72,952		316
Dividends Per Common Share*	$	0.11	$	0.10	$	0.01

*Share and per share data have been restated to reflect a 2-for-1 stock split effective June 1, 2005.

Consolidated Statements of Income (Unaudited)
For the 12 months ending March 31, 2006 and 2005

	Trailing 12 Months
(in thousands, except per share data)		2006		2005		Change
Operating Revenues
Oil and gas operations	$	594,334	$	416,942	$	177,392
Natural gas distribution		661,195		529,666		131,529
Total operating revenues		1,255,529		946,608		308,921
Operating Expenses
Cost of gas		372,817		258,006		114,811
Operations and maintenance		282,805		241,443		41,362
Depreciation, depletion and amortization		134,563		123,518		11,045
Taxes, other than income taxes		100,112		77,218		22,894
Accretion expense		2,902		2,418		484
Total operating expenses		893,199		702,603		190,596
Operating Income		362,330		244,005		118,325
Other Income (Expense)
Interest expense		(48,307)		(44,095)		(4,212)
Other income		2,517		2,436		81
Other expense		(671)		(1,458)		787
Total other expense		(46,461)		(43,117)		(3,344)
Income From Continuing Operations Before Income Taxes		315,869		200,888		114,981
Income tax expense		114,423		74,793		39,630
Income From Continuing Operations		201,446		126,095		75,351
Discontinued Operations, Net of Taxes
Income from discontinued operations		5		98		(93)
Gain on disposal of discontinued operations		9		131		(122)
Income From Discontinued Operations		14		229		(215)
Net Income	$	201,460	$	126,324	$	75,136
Diluted Earnings Per Average Common Share*
Continuing operations	$	2.73	$	1.72	$	1.01
Discontinued operations		-		-		-
Net Income	$	2.73	$	1.72	$	1.01
Basic Earnings Per Average Common Share*
Continuing operations	$	2.75	$	1.74	$	1.01
Discontinued operations		-		-		-
Net Income	$	2.75	$	1.74	$	1.01
Diluted Avg. Common Shares Outstanding*		73,904		73,252		652
Basic Avg. Common Shares Outstanding*		73,160		72,661		499
Dividends Per Common Share*	$	0.41	$	0.385	$	0.025

*Share and per share data have been restated to reflect a 2-for-1 stock split effective June 1, 2005.

Selected Business Segment Data (Unaudited)

For the 3 months ending March 31, 2006 and 2005

	1st Quarter
(in thousands, except sales price data)		2006		2005		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	116,084	$	67,600	$	48,484
Oil		42,142		26,305		15,837
Natural gas liquids		9,677		8,145		1,532
Other		1,616		830		786
Total	$	169,519	$	102,880	$	66,639
Production volumes from continuing operations
Natural gas (MMcf)		15,327		14,682		645
Oil (MBbl)		917		819		98
Natural gas liquids (MMgal)		16.6		15.8		0.8
Production volumes from continuing ops. (MMcfe)		23,209		21,856		1,353
Total production volumes (MMcfe)		23,209		21,906		1,303
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	7.57	$	4.60	$	2.97
Oil (barrel)	$	45.94	$	32.12	$	13.82
Natural gas liquids (gallon)	$	0.58	$	0.51	$	0.07
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	33,862	$	22,749	$	11,113
Production taxes		13,093		10,204		2,889
Total	$	46,955	$	32,953	$	14,002
Depreciation, depletion and amortization	$	23,551	$	21,012	$	2,539
Capital expenditures	$	44,905	$	40,485	$	4,420
Exploration expenditures	$	109	$	324	$	(215)
Operating income	$	88,539	$	38,977	$	49,562
Natural Gas Distribution
Operating revenues
Residential	$	218,506	$	178,154	$	40,352
Commercial and industrial		84,557		65,300		19,257
Transportation		12,735		13,029		(294)
Other		2,825		1,645		1,180
Total	$	318,623	$	258,128	$	60,495
Gas delivery volumes (MMcf)
Residential		11,685		13,013		(1,328)
Commercial and industrial		4,941		5,295		(354)
Transportation		13,359		13,741		(382)
Total		29,985		32,049		(2,064)
Other data
Depreciation and amortization	$	10,746	$	10,413	$	333
Capital expenditures	$	18,845	$	14,802	$	4,043
Operating income	$	63,727	$	66,404	$	(2,677)
Selected Business Segment Data (Unaudited) For the 12 months ending March 31, 2006 and 2005

	Trailing 12 Months
(in thousands, except sales price data)		2006		2005		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	414,120	$	278,778	$	135,342
Oil		132,488		101,027		31,461
Natural gas liquids		39,987		33,027		6,960
Other		7,739		4,110		3,629
Total	$	594,334	$	416,942	$	177,392
Production volumes from continuing operations
Natural gas (MMcf)		61,693		58,143		3,550
Oil (MBbl)		3,414		3,380		34
Natural gas liquids (MMgal)		71.4		68.8		2.6
Production volumes from continuing ops. (Mmcfe)		92,373		88,242		4,131
Total production volumes (Mmcfe)		92,402		88,351		4,051
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	6.71	$	4.79	$	1.92
Oil (barrel)	$	38.80	$	29.89	$	8.91
Natural gas liquids (gallon)	$	0.56	$	0.48	$	0.08
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	115,354	$	84,145	$	31,209
Production taxes		55,160		39,254		15,906
Total	$	170,514	$	123,399	$	47,115
Depreciation, depletion and amortization	$	91,879	$	82,834	$	9,045
Capital expenditures	$	358,132	$	422,977	$	(64,845)
Exploration expenditures	$	461	$	2,376	$	(1,915)
Operating income	$	293,439	$	175,295	$	118,144
Natural Gas Distribution
Operating revenues
Residential	$	425,105	$	341,723	$	83,382
Commercial and industrial		186,214		139,385		46,829
Transportation		42,996		41,875		1,121
Other		6,880		6,683		197
Total	$	661,195	$	529,666	$	131,529
Gas delivery volumes (MMcf)
Residential		23,274		23,286		(12)
Commercial and industrial		12,144		11,570		574
Transportation		49,468		53,527		(4,059)
Total		84,886		88,383		(3,497)
Other data
Depreciation and amortization	$	42,684	$	40,684	$	2,000
Capital expenditures	$	77,319	$	59,199	$	18,120
Operating income	$	70,245	$	70,589	$	(344)