Energen (EGN) 8-K Energen 3rd Quarter Earnings Up Strong on Increased Prices, Production

Exhibit 99.2

Consolidated Statements of Income (Unaudited)
For the 3 months ending September 30, 2006 and 2005

	3rd Quarter
(in thousands, except per share data)		2006		2005		Change
Operating Revenues
Oil and gas operations	$	171,516	$	126,260	$	45,256
Natural gas distribution		71,195		64,421		6,774
Total operating revenues		242,711		190,681		52,030
Operating Expenses
Cost of gas		32,311		27,386		4,925
Operations & maintenance		78,836		67,818		11,018
Depreciation, depletion and amortization		35,676		34,215		1,461
Taxes, other than income taxes		19,338		19,523		(185)
Accretion expense		881		668		213
Total operating expenses		167,042		149,610		17,432
Operating Income		75,669		41,071		34,598
Other Income (Expense)
Interest expense		(12,267)		(11,600)		(667)
Other income		448		822		(374)
Other expense		(207)		(104)		(103)
Total other expense		(12,026)		(10,882)		(1,144)
Income from Continuing Operations Before Income Taxes		63,643		30,189		33,454
Income tax expense		22,346		11,116		11,230
Income from Continuing Operations		41,297		19,073		22,224
Discontinued Operations, Net of Taxes
Income from discontinued operations		2		3		(1)
Gain on disposal of discontinued operations		53		10		43
Income from Discontinued Operations		55		13		42
Net Income	$	41,352	$	19,086	$	22,266
Diluted Earnings Per Average Common Share
Continuing operations	$	0.56	$	0.26	$	0.30
Discontinued operations		-		-		-
Net Income	$	0.56	$	0.26	$	0.30
Basic Earnings Per Average Common Share
Continuing operations	$	0.57	$	0.26	$	0.31
Discontinued operations		-		-		-
Net Income	$	0.57	$	0.26	$	0.31
Diluted Avg. Common Shares Outstanding		73,191		73,878		(687)
Basic Avg. Common Shares Outstanding		72,228		73,024		(796)
Dividends Per Common Share	$	0.11	$	0.10	$	0.01

Consolidated Statements of Income (Unaudited)
For the 9 months ending September 30, 2006 and 2005

	Year-to-date
(in thousands, except per share data)		2006		2005		Change
Operating Revenues
Oil and gas operations	$	510,213	$	363,568	$	146,645
Natural gas distribution		503,014		429,746		73,268
Total operating revenues		1,013,227		793,314		219,913
Operating Expenses
Cost of gas		284,192		214,665		69,527
Operations & maintenance		231,720		195,127		36,593
Depreciation, depletion and amortization		104,472		98,741		5,731
Taxes, other than income taxes		73,450		65,867		7,583
Accretion expense		2,691		1,965		726
Total operating expenses		696,525		576,365		120,160
Operating Income		316,702		216,949		99,753
Other Income (Expense)
Interest expense		(37,810)		(34,794)		(3,016)
Other income		1,410		1,694		(284)
Other expense		(708)		(638)		(70)
Total other expense		(37,108)		(33,738)		(3,370)
Income from Continuing Operations Before Income Taxes		279,594		183,211		96,383
Income tax expense		101,194		67,619		33,575
Income from Continuing Operations		178,400		115,592		62,808
Discontinued Operations, Net of Taxes
Loss from discontinued operations		(6)		(3)		(3)
Gain on disposal of discontinued operations		53		120		(67)
Income from Discontinued Operations		47		117		(70)
Net Income	$	178,447	$	115,709	$	62,738
Diluted Earnings Per Average Common Share
Continuing operations	$	2.42	$	1.57	$	0.85
Discontinued operations		-		-		-
Net Income	$	2.42	$	1.57	$	0.85
Basic Earnings Per Average Common Share
Continuing operations	$	2.45	$	1.58	$	0.87
Discontinued operations		-		0.01		(0.01)
Net Income	$	2.45	$	1.59	$	0.86
Diluted Avg. Common Shares Outstanding		73,671		73,725		(54)
Basic Avg. Common Shares Outstanding		72,839		72,998		(159)
Dividends Per Common Share	$	0.33	$	0.30	$	0.03

Consolidated Statements of Income (Unaudited)
For the 12 months ending September 30, 2006 and 2005

	Trailing 12 Months
(in thousands, except per share data)		2006		2005		Change
Operating Revenues
Oil and gas operations	$	674,340	$	478,147	$	196,193
Natural gas distribution		673,968		546,378		127,590
Total operating revenues		1,348,308		1,024,525		323,783
Operating Expenses
Cost of gas		385,149		268,980		116,169
Operations & maintenance		305,320		259,151		46,169
Depreciation, depletion and amortization		137,422		131,100		6,322
Taxes, other than income taxes		101,566		85,153		16,413
Accretion expense		3,373		2,595		778
Total operating expenses		932,830		746,979		185,851
Operating Income		415,478		277,546		137,932
Other Income (Expense)
Interest expense		(49,816)		(46,010)		(3,806)
Other income		1,879		2,408		(529)
Other expense		(780)		(899)		119
Total other expense		(48,717)		(44,501)		(4,216)
Income from Continuing Operations Before Income Taxes		366,761		233,045		133,716
Income tax expense		131,066		86,201		44,865
Income from Continuing Operations		235,695		146,844		88,851
Discontinued Operations, Net of Taxes
Income (loss) from discontinued operations		(10)		13		(23)
Gain on disposal of discontinued operations		65		120		(55)
Income from Discontinued Operations		55		133		(78)
Net Income	$	235,750	$	146,977	$	88,773
Diluted Earnings Per Average Common Share
Continuing operations	$	3.20	$	2.00	$	1.20
Discontinued operations		-		-		-
Net Income	$	3.20	$	2.00	$	1.20
Basic Earnings Per Average Common Share
Continuing operations	$	3.23	$	2.01	$	1.22
Discontinued operations		-		0.01		(0.01)
Net Income	$	3.23	$	2.02	$	1.21
Diluted Avg. Common Shares Outstanding		73,744		73,596		148
Basic Avg. Common Shares Outstanding		72,934		72,927		7
Dividends Per Common Share	$	0.43	$	0.3963	$	0.0337

Selected Business Segment Data (Unaudited)

For the 3 months ending September 30, 2006 and 2005

	3rd Quarter
(in thousands, except sales price data)		2006		2005		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	108,795	$	85,087	$	23,708
Oil		46,529		28,879		17,650
Natural gas liquids		14,668		10,721		3,947
Other		1,524		1,573		(49)
Total	$	171,516	$	126,260	$	45,256
Production volumes from continuing operations
Natural gas (MMcf)		16,004		16,013		(9)
Oil (MBbl)		905		813		92
Natural gas liquids (MMgal)		20.4		18.1		2.3
Production volumes from continuing ops. (MMcfe)		24,340		23,480		860
Total production volumes (MMcfe)		24,340		23,478		862
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$	6.80	$	5.31	$	1.49
Oil (barrel)	$	51.43	$	35.51	$	15.92
Natural gas liquids (gallon)	$	0.72	$	0.59	$	0.13
Other data from continuing operations
Lease operating expense (LOE)
LOE and other	$	35,305	$	27,396	$	7,909
Production taxes		12,602		13,477		(875)
Total	$	47,907	$	40,873	$	7,034
Depreciation, depletion and amortization	$	24,475	$	23,547	$	928
Capital expenditures	$	61,049	$	44,209	$	16,840
Exploration expenditures	$	1,986	$	74	$	1,912
Operating income	$	85,239	$	52,368	$	32,871
Natural Gas Distribution
Operating revenues
Residential	$	36,635	$	33,795	$	2,840
Commercial and industrial		22,300		21,732		568
Transportation		10,115		9,378		737
Other		2,145		(484)		2,629
Total	$	71,195	$	64,421	$	6,774
Gas delivery volumes (MMcf)
Residential		1,601		1,810		(209)
Commercial and industrial		1,534		1,791		(257)
Transportation		12,999		11,951		1,048
Total		16,134		15,552		582
Other data
Depreciation and amortization	$	11,201	$	10,668	$	533
Capital expenditures	$	18,512	$	17,863	$	649
Operating income (loss)	$	(8,921)	$	(11,025)	$	2,104
Selected Business Segment Data (Unaudited) For the 9 months ending September 30, 2006 and 2005

		Year-to-date
(in thousands, except sales price data)				2006				2005				Change
Oil and Gas Operations
Operating revenues
Natural gas		$		331,073		$		247,088		$		83,985
Oil				136,146				83,683				52,463
Natural gas liquids				38,152				28,519				9,633
Other				4,842				4,278				564
Total		$		510,213		$		363,568		$		146,645
Production volume from continuing operations
Natural gas (MMcf)				47,056				45,871				1,185
Oil (MBbl)				2,736				2,480				256
Natural gas liquids (MMgal)				57.1				52.5				4.6
Production volumes from continuing ops. (MMcfe)				71,625				68,247				3,378
Total production volumes (MMcfe)				71,624				68,303				3,321
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)		$		7.04		$		5.39		$		1.65
Oil (barrel)		$		49.75		$		33.75		$		16.00
Natural gas liquids (gallon)		$		0.67		$		0.54		$		0.13
Other data from continuing operations
Lease operating expense (LOE)
LOE and other		$		100,789		$		75,511		$		25,278
Production taxes				38,454				35,550				2,904
Total		$		139,243		$		111,061		$		28,182
Depreciation, depletion and amortization		$		71,592		$		67,017		$		4,575
Capital expenditures		$		156,606		$		132,718		$		23,888
Exploration expenditures		$		3,512		$		568		$		2,944
Operating income		$		260,916		$		156,714		$		104,202
Natural Gas Distribution
Operating revenues
Residential		$		322,635		$		276,728		$		45,907
Commercial and industrial				139,713				116,612				23,101
Transportation				33,111				32,652				459
Other				7,555				3,754				3,801
Total		$		503,014		$		429,746		$		73,268
Gas delivery volumes (MMcf)
Residential				16,581				18,992				(2,411)
Commercial and industrial				8,559				9,497				(938)
Transportation				37,947				37,634				313
Total				63,087				66,123				(3,036)
Other data
Depreciation and amortization		$		32,880		$		31,724		$		1,156
Capital expenditures		$		58,947		$		53,562		$		5,385
Operating income		$		57,517		$		61,009		$		(3,492)
Selected Business Segment Data (Unaudited) For the 12 months ending September 30, 2006 and 2005
	Trailing 12 Months
(in thousands, except sales price data)			2006				2005				Change
Oil and Gas Operations
Operating revenues
Natural gas	$		449,621		$		323,207		$		126,414
Oil			169,114				111,830				57,284
Natural gas liquids			48,088				37,201				10,887
Other			7,517				5,909				1,608
Total	$		674,340		$		478,147		$		196,193
Production volumes from continuing operations
Natural gas (MMcf)			62,233				60,972				1,261
Oil (MBbl)			3,573				3,356				217
Natural gas liquids (MMgal)			75.1				70.4				4.7
Production volumes from continuing ops. (MMcfe)			94,398				91,161				3,237
Total production volumes (MMcfe)			94,420				91,225				3,195
Revenue per unit of production including effects of all derivative instruments
Natural gas (Mcf)	$		7.22		$		5.30		$		1.92
Oil (barrel)	$		47.34		$		33.32		$		14.02
Natural gas liquids (gallon)	$		0.64		$		0.53		$		0.11
Other data
Lease operating expense (LOE)
LOE and other	$		129,519		$		96,404		$		33,115
Production taxes			55,175				46,580				8,595
Total	$		184,694		$		142,984		$		41,710
Depreciation, depletion and amortization	$		93,915		$		88,948		$		4,967
Capital expenditures	$		377,600		$		423,655		$		(46,055)
Exploration expenditures	$		3,620		$		761		$		2,859
Operating income	$		348,079		$		208,772		$		139,307
Natural Gas Distribution
Operating revenues
Residential	$		430,660		$		349,793		$		80,867
Commercial and industrial			190,058				147,606				42,453
Transportation			43,750				43,557				192
Other			9,500				5,422				4,078
Total	$		673,968		$		546,378		$		127,590
Gas delivery volumes (MMcf)
Residential			22,190				23,632				(1,443)
Commercial and industrial			11,560				11,975				(415)
Transportation			50,163				51,448				(1,284)
Total			83,913				87,055				(3,142)
Other data
Depreciation and amortization	$		43,507		$		42,152		$		1,355
Capital expenditures	$		78,661		$		69,680		$		8,981
Operating income	$		69,430		$		70,749		$		(1,319)